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US Traditional Media Outlook, 2013-2017

June 6, 2013 by MarketingCharts staff

PwC-US-Traditional-Media-Outlook-2013-2017-June2013PwC has issued its annual “Entertainment & Media Outlook” report, which contains projections for online and offline media markets through 2017 across various components including advertising revenues and consumer spending. The outlook for traditional media markets is similar to previous forecasts in that TV and out-of-home advertising have the healthiest future, while radio continues to grow at a modest pace and the outlook for print continues to be dim, although losses may slow.

  • TV advertising: CAGR = 5.1%

TV advertising spending is projected to grow from $63.8 billion last year to $66.8 billion this year and $81.6 billion in 2017.
TV is the largest advertising medium in the US, accounting for 38% of total advertising revenues last year. Terrestrial broadcasting remains the domain of the big 4 networks (ABC, CBS, NBC, and Fox), but the multichannel sector (led by TBS, Discovery, and USA Network) represented 35% of TV advertising revenues last year.

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Tuesday, June 11th, 2013 news No Comments

Radio Ad Revenue Growth Forecast Downgraded

Source: http://www.marketingcharts.com/wp/radio/radio-ad-revenue-growth-forecast-downgraded-28169/

Radio revenues will continue to shift in the next 5 years, as income from online advertising grows by about 10.8% annually versus 2.5% growth for over-the-air (OTA) revenues, forecasts BIA/Kelsey in a new report. Nevertheless, OTA revenues will continue to account for the vast majority (~95%) of radio revenues in 2017, when total revenues are […]

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Friday, March 29th, 2013 news No Comments

JC Penney’s Media Spending Climbs But Sales Go Into Free Fall

CEO Ron Johnson Boosts TV Advertising, Adds Former Coca-Cola Marketer Sergio Zyman as an Adviser

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JC Penney sales plummeted 25% in 2012, even as its measured media spending jumped 14% to $504 million.

Ron Johnson

Ron Johnson

The beleaguered retailer spent more on advertising than it has in any of the last five years and made major changes to its media mix, under the direction of CEO Ron Johnson. TV advertising climbed, particularly network TV spending, while radio and internet display investments dropped. And despiteMr. Johnson’s declaration late last summer that the retailer would invest heavily in newspapers, spending in that category was down slightly.

JC Penney reported that its fourth-quarter net loss widened to $552 million. The retailer posted an annual net loss of $985 million.

Sales in the fourth quarter, which includes the holiday-shopping period, slid 28% to $3.88 billion. For the year, sales fell 25% to $12.98 billion. That marks the lowest annual revenue the retailer has reported since at least 1987.

“It’s the worst performance that I’ve ever encountered in decades of covering retail — there’s nothing really to compare it against,” said Bernie Sosnick, an analyst at Gilford Securities.

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Source: Kantar Media

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Thursday, February 28th, 2013 news No Comments

Online Ad Spending Is Closing In On TV

Source: http://www.businessinsider.com/chart-of-the-day-online-advertising-2012-10

Online ad spending for the world’s largest media companies is closing in on TV ad spending according to this chart from BI Intelligence on the State of the Internet.

It’s important to note in this chart that TV’s share of the ad spend has actually grown, though only slightly, over the last six years. Online is taking share from print, radio, and outdoor spending.

chart of the day, us advertising revenue by platform, oct 2012

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Wednesday, October 3rd, 2012 news No Comments

Why Digital Kicks Traditional Marketing in Cost Effectiveness

Why Digital Kicks Traditional Marketing in Cost Effectiveness by Augustine Fou from Dr Augustine Fou

Marketing Channel Cost Comparison on CPM basis – to reach 1,000 users or impressions.
TV vs digital
radio vs digital
TV vs radio
display ads vs search ads
direct mail vs tv
direct mail vs digital

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Friday, March 16th, 2012 digital No Comments

Beats Dumps Monster Over Headphone Spat [Audio]

Source: http://gizmodo.com/5875715/beats-dumps-monster-over-headphone-spat

Beats Dumps Monster Over Headphone SpatPeanut butter and jelly, unicorns and glitter, Beats Electronics and Monster. One of these things just doesn’t belong, one of these things is not like the others. After a five-year collaboration, the two companies have terminated their relationship but do hope to remain friends.

According to Businessweek, the breakup came about due to an irreconcilable dispute between Beat’s Jimmy Iovine and Monster’s Noel Lee over which company deserved more credit for the brand’s 53-percent share of the $1 billion headphone market during the last year. As such, Beats has opted out of renewing its manufacturing contract with Monster when it expires later this year

Monster takes credit for the design and production “They wanted to do speakers and I said, ‘The new speaker is the headphone,’ ” says Lee. Beats, on the other hand believes its celebrity connections helped market the devices as high-quality status symbols. “Now a big part of what you’re paying for is the brand and fashion,” Ben Arnold, director of industry analysis for NPD, told Businessweek.

It’s still too soon to see who will ultimately come out ahead from this. Beats Electronics remains the preeminent brand for twentysomethings. Monster on the other hand will have to find a way to replace the lost revenue—reportedly 60 percent of its of privately held revenues and profit. Its recently announced partnerships with fashion brand Diesel and Radio Shack should do nicely though. Those products are expected to hit shelves later this year. [Businessweek via CNetPhoto by Elsa/Getty]


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Friday, January 13th, 2012 news No Comments

The NFL Is Still King Among American Sports Fans

Source: http://www.businessinsider.com/chart-nfl-is-still-king-among-american-sports-fans-2011-10

In a recent survey by Scarborough Sports Marketing, 62 percent of American Adults listed the NFL as a sport in which they have at least a little interest. That was tops among all sports, easily out-pacing Major League Baseball with 49 percent.

It also might be time to reconsider what we call a “major sport” in the United States. The NBA came in fifth, behind college football. And the NHL was 12th, behind NASCAR, high school sports, and figure skating.

Interestingly, MLB is not even the second most popular “sport.” They fall behind the Olympics, which is more of an event than a sport, but I say tomato, and you say tomato (wait, that doesn’t work as well when not spoken out loud).

Here are the 20 most popular sports among American adults…

Most popular sports

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Sunday, October 23rd, 2011 news No Comments

On Facebook, A Wal-Mart Employee Is More Valuable Than A Goldman Sachs Employee

Source: http://www.businessinsider.com/chart-of-the-day-facebook-ads-2010-6

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In the real world, using salary as a measure, a Goldman Sachs staffer is worth much more than a Wal-Mart employee. An average Goldman Sachs employee is paid a bonus of $500,000, while the average Wal-Mart employee salary is $20,000.

On Facebook, the opposite is true. In the eyes of an advertiser, a Wal-Mart employee is worth nearly twice as much as a Goldman employee, according to Facebook’s suggested advertising bid prices.

Kim-Mai Cutler at VentureBeat looked at Facebook’s suggested advertiser bid price on per category basis. What she found is pretty interesting. 

As you can see in this chart, the most expensive company to target is Facebook. The next most expensive is Wal-Mart. Goldman and Bain employees are duking it out for the cheapest.

chart of the day, suggested bids to reach facebook users employees of companies, june 2010

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Monday, July 5th, 2010 news 1 Comment

You Watch More TV (and Less YouTube) Than You Think

Source: http://gizmodo.com/5534061/you-watch-more-tv-and-less-youtube-than-you-think

You Watch More TV (and Less YouTube) Than You ThinkAs part of a special report on the state of couch potatoes in the year 2010, the Economist collected data on perceived vs. actual media consumption. People are in denial about their TV addictions and overconfident in their YouTube cool.

Maybe not consciously, but that seems to be the case. The chart shows that to some extent YouTube is still a media event—something we’re aware of ourselves watching—whereas TV just washes over us and seeps into our rotting brains without us even realizing it.

These numbers are from 2008, though, and it would be interesting to see how the balance has shifted over the last 2 years. Personally, my YouTube watching is way up, my TV watching is way down, and the only time I hear the radio is when someone drives by with their windows down. Because honestly, who needs Treme when you have this. [The Economist]

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Sunday, May 9th, 2010 news No Comments

Source: http://gizmodo.com/5534285/how-much-tech-companies-are-spending-on-advertising

How Much Tech Companies Are Spending On AdvertisingYahoo’s reportedly ponying up $85 million for an upcoming ad campaign—nearly twice as much as they spent on advertising in all of 2009. But as this chart shows, Yahoo’s wager looks puny next to Microsoft’s massive ad spending.

According to Kantar Media, who provided Silicon Alley Insider with numbers for total ad spending (print, online, radio, tv, and outdoor), Microsoft spent some $518 million on advertising last year, over twice as much as Apple did, with $249 million. And I’m not entirely sure they got their money’s worth—I’m having a hard time thinking of much recent Microsoft propaganda besides those “make a PC for under $1000” commercials, which basically seemed like Best Buy spots anyway. Update: also, this.

Of these six companies, eBay spent the biggest chunk of their revenue on self-promotion, presumably trying to keep their name prominent even as they lose members to services like Craigslist. And equally interesting to how much money Microsoft and eBay spent is how little Google did. I guess life is good when you’re a verb. [SAI]

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Sunday, May 9th, 2010 charts No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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