Absolute Media Inc.

We thought it would be helpful to list the important local elections that will occur in the fall of 2012 to all advertisers reading this blog.  Armed with this info, marketers planning local advertising initiatives will have an idea of which states and DMA’s might experience extremely tight local television or radio availabilities due to political advertising.  All marketers planning September and October radio or television advertising campaigns should probably start buying the time now before they get locked out or pay much higher rates later on.

Here goes:

First off, all seats are up for grabs this fall in the House of Representatives.  So you can count on local spending in all DMA’s based on this alone.

Secondly, here is the list of states that will have gubernatorial elections:

Delaware, Indiana, Missouri, Montana, New Hampshire, North Carolina, North Dakota, Utah, Vermont, Washington, West Virginia.

Lastly, 33 states will have an election for a senator:  They are: Arizona, California, Connecticut, Delaware, Florida, Hawaii, Indiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

If you want to know the DMA’s within the states above just let us know.

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To the average consumer, their DVR is a godsend.  Forget staying up late to watch your favorite show or sitting through 20 minutes of commercials – just record your program and enjoy at your convenience.

However, to the advertiser airing commercials, the DVR seems like the opposite.  Why pay to advertise during television programs when the consumer is just going to fast forward through commercial breaks?

In reality, we do not need to be so concerned.  An April 2011 study from The Nielsen Company reveals that while the average person in the United States watched about 5 hours and 11 minutes of television daily, only 24 minutes of that on average is spent watching DVR playback.  This means that timeshifted TV makes up a mere 8% of the total TV watched per day. 

Timeshifting is even less of a concern for advertisers targeting young consumers.  Teens age 12-17 and adults age 18-24 watch just 1 hour and 30 minutes of timeshifted TV per week, encompassing roughly 4% of their daily TV usage. 

So what’s the bottom line? While the widespread use of DVR may be worrying, the recent study from The Nielsen Company confirms that consumers do not use their DVR’s enough to threaten the reach or effectiveness of traditional commercials.

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A few clients have expressed interest in Google TV ads, wanting to know more about it and whether it would work for them.

As in so many things in regarding new media “advances” there is a lot less here than meets the eye. Here’s the scoop.

Google TV ads runs alongside Google’s very popular AdWords platform. That’s where you go to get started. The TV Ads system works on a CPM bidding system similar to keyword sponsorship (cost-per-click) bidding on AdWords. You set your bid on various cable television networks by demo and by daypart, upload your commercial and Google does the rest. However, there are some drawbacks:

1) Advertisers never know if their spots will clear because they can always be outbid by another advertiser.
2) The user interface can be clumsy and is not nearly as elegant as in AdWords.
3) And the main hangup? Google TV Ads ONLY RUNS on the DISH satellite network. This fact is cleverly hid in all of Google’s many promotional and instruction videos. At first glance you think they are talking about true national distribution on the many cable networks they cite. But they avoid saying, in any overt way that it’s only on DISH, which is in a mere 13% of US television households, and heavily skewed to C and D counties.
4) Plus, why buy from Google in the first place? Why not call up DISH and do a deal on a few of the targeted network clusters they have already pre-packaged?

If and when Google can provide true national support they may be on to something. But for now we think this is a platform with very limited appeal. And, it would be great if they were more upfront about the distribution limitations.

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On Sunday night January 30, 2011, Turbo Tax was the sole advertiser in the 2004 movie, National Treasure, airing on NBC.  It purchased about 35 minutes of commercial time over 13 breaks.  Spending was not disclosed, but if we assume that each :30 second spot cost $60,000 the total gross cost was in the area of $4,000,000.

While some industry publications thought this was a daring, breakthrough media strategy, I think it was weak and probably ineffective.

Why?  Because this kind of buy stressed message frequency (obviously) at the expense of reach.  With tax season right around the corner, it seems to me that reach should have been the primary communications strategy, not frequency.

Turbo Tax should have spent its budget increasing its awareness among many different potential users of its online tax preparation software, instead of clobbering a relatively small number of viewers over the head for two hours.  That means buying many different programs, not loading up commercials in one show.

At least running ads in the Super Bowl is defensible from a reach perspective.  But creating a stunt around a seven year old movie that has run previously on many different cable networks is a waste of money.

And how did “National Treasure” perform in audience?  It came in fourth place in its time period and averaged a puny 1.4 rating against Adults 18-49.

We’ll admit it.  In the past we have questioned the real popularity of Twitter in light of its ubiquitous presence in all forms of media.  Now, from a November 2010 survey from the Pew Research Center”s Internet & American Life Project, based on 2,257 adult Internet users 18+ we get these facts:

- Only 8% of online Adults 18+ say they use Twitter

- Only 2% do so on a particular day

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