|
Jack Myers of the Myers Report has been
around the media industry for years and is probably best known for
his forecasts on ad spending. But that's just one of the areas he
covers in his newsletters. He writes extensively about TV
programming, as well as on the forces he feels are bringing about
changes in how consumers use media and how those changes will affect
the industry. Media Life talked to Jack the other day about the new
technologies, the media economy, disappearing viewers and his recent
dust-up with Fox News.
1. We're always hearing talk about how TiVo and some other
different technologies on the horizon are going to have a huge
impact, but they never seem to get here. How real is the threat of
TiVo and DVRs to the business of advertising?
"Threat" is the wrong word.
"Empowering" is a
more appropriate description of the impact DVRs and VOD will have on
the advertising business. Marketers and media buyers already
understand that the average commercial generates only 10 percent to
15 percent next-day unaided recall.
They already understand that a
large percentage of viewers avoid commercials through the remote
control or simply by mentally zoning out.
New media technologies
empower advertisers to deliver advertising on demand to qualified,
interested customers. It allows for direct marketing and promotional
applications. It changes television from a one-way mass experience
to a targeted two-way experience.
2. What's the single technology you think will have the biggest
impact the soonest and why? What do you think the single most
surprising media event will be in 2004 -- what will stun us?
Research capabilities driven by digital technology --
specifically the industry acceptance of the 4A's and ANA Ad-ID
system will be the first major technology-driven innovation.
For 2004, the rapid ascendancy of high definition television as
consumers purchase more large screen televisions.
3. Looking back on the ad recession, why did so many people
underestimate the depth of it? Why didn't we see it coming sooner?
The recession in the ad community hit in March of 2001. Because
the internet stocks and ad budgets had pushed the market so high,
many felt that a traditional recession could not have a significant
impact on the high-flying industry.
The ad community was hit by
three separate forces: the overall general slide in the economy; the
collapse of the internet market; and Sept. 11, 2001.
These forces
drove the market down far more dramatically than most had expected.
However, it is more important to recognize that advertising was the
first major industry to rebound from the recession and has been a
leading indicator of economic growth and resiliency.
4. There is a lot of debate about the importance of various
demographics on television and how they are changing -- the loss of
young men, the rise of baby boomers, etc. How do you think the
television landscape will evolve over the next year or two?
In two years, we will look back and see that the
indicators available today were pointing in a clear direction of
continued fragmentation, growth of digital distribution, growth of
satellite penetration, broadcast network erosion, more
accountability and auditing in advertising, shifts of budgets into
more direct and promotional media opportunities, and new
programmer/advertiser relationships.
Research will continue to
uncover anomalies that surprise the media community as research
becomes more detailed. But the basic foundations of the industry
will remain unchanged.
5. For those who didn't hear about it, you and Fox News had quite
a dust-up about a report you recently printed on your site. Do you
have
plans to lunch with Roger Ailes any time soon? How did that whole
thing end up?
I have been providing detailed insights on sales organization
performance to TV networks for 20 years.
More than 350 advertisers
and agency executives participated in the survey this year,
evaluating the performance of the networks' sales organizations.
Fox
News had some positives and some negatives. Most executives over the
years have been appreciative and responsive to the insights and
intelligence and have used the data to improve their services to
the ad community.
Fox News decided it was more appropriate to attack
the messenger rather than evaluate the potential to improve their
sales organization and relationships in the ad community.
More distressing, Paul Rittenberg made the attacks very personal
and unprofessional.
There has been no further follow-up, but from
the feedback I have received, most people in the industry think
Paul's actions are consistent with his typical professionalism.
I
would welcome the opportunity to lunch with Roger Ailes and discuss
our mutual interests in assuring the TV network community provides
the highest level of support for the ad community.
|