FOR IMMEDIATE RELEASE

Grim Media Outlook Creates Opportunities for Smart Advertisers

Media agency TargetCast tcm sees silver lining for marketers

NEW YORK, January 8, 2009 -- As experts predict a grim year for all media categories, including the much-hyped digital arena, leading media buyer Steve Farella, President and CEO of TargetCast tcm, says trying times for media can create great opportunities for smart advertisers.

"In the midst of all the forecasts of gloom and doom, there may be a silver lining for some marketers," said Farella, whose independent media agency has clients including Wyeth Consumer Healthcare, hotels.com, Expedia.com, Gorton's and others.

There will be some good bargains, he noted, for marketers who want to "investment spend" in order to maintain brand awareness. "History has proven that many marketers who maintain their ad spending during a recession come back faster and stronger as the economy recovers," Farella said.

"Television is facing real challenges, but it is still the king when it comes to quickly reaching a mass audience," noted Farella, whose agency expects to see local spot advertising drop as much as eight percent this year. "Even as ad dollars become scarce for local TV stations, they'll see their daytime viewing grow as unemployment continues to rise." Advertisers selling consumer staples may find opportunities to reach a larger audience at good prices.

Spot and network TV will present some good bargains. "Advertisers will find real opportunities in sports," he added, "as the networks scramble to fill inventory that's become available by cuts in the major sports advertising categories – automotive and financial. And there's more value in sports, which is the only part of network whose ratings have held steady."

With local radio losing ads from auto dealers and financial institutions, traditionally the biggest local advertisers, other marketers can get more for their ad dollars. Media buyers now have the clout to be creative in seeking value added opportunities that best fit the advertiser's needs, whether in the form of announcer read mentions, trigger opportunities, sponsorships and bonus spots.

Print media will continue to lose readers and advertisers, with newspapers especially vulnerable in the tough economy. Farella says that even with desperate cost-cutting, there will be more consolidation and more closings in the newspaper business in 2009.

"Magazines will continue to get pounded," Farella said. "I am absolutely amazed that some magazines are seeking rate increases of 5 – 6 percent this year, but I'm not hearing that anyone is agreeing to pay those higher rates."

Advertisers will benefit in 2009, he noted, by getting greater added value elements, such as better positioning in the book, bonus space added to their buys, and editorial content that includes links to advertiser websites.

TargetCast tcm expects niche titles that target the luxury market will be hard hit by the economy this year. Many companies will shut down their less profitable titles, leaving a smaller playing field for marketers who use magazines. "I doubt anyone is going to launch a new magazine in 2009," Farella added.

Digital media, which has been the shining star in ad growth, will also feel the pinch. Unlike other media categories, digital will continue to grow, but at a much slower rate, Farella said. The "traditional" forms of digital advertising, like behavioral targeting and search engines, will remain strong because they are extremely targeted, accountable and trackable. Advertisers should be able to negotiate good deals with some of the big digital platforms like Yahoo, who are struggling with the economy and are being very aggressive in their selling.

"You can quickly see what your money in digital is doing for your business," he said. "This gives advertisers real comfort, so they won't be cutting it."

However, some advertisers will reduce or forego spending on the newer digital media such as mobile, preferring for now to stay with tried and true digital platforms.

Some out-of-home media, including cinema, may suffer, as advertisers retrench to use fewer, proven media vehicles. This will mean fertile ground at good prices for advertisers who "investment spend" this year and are able to use these vehicles in a creative way.

"This year will be a real challenge for media and advertisers, and there will be some carnage on the media side," Farella said. "For smart advertisers, the chaos will provide some real opportunities."

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