Posts Tagged ‘changes’


Rise in Ad Spending Contributes to Media Companies’ Strong Q3 Earnings Led by Fox News Corp, Time Warner, and CBS

Monday, November 8th, 2010
Image Source: Positive Real Estate Professionals.com

Image Source: Positive Real Estate Professionals.com

I was about to write my post on how the latest and greatest technology is changing media – until I saw last week’s earnings releases start to roll in from the media sector. Time Warner (TW), Fox and then CBS all posted double digit increases: 

  • CBS saw a 42 percent increase in third quarter profits.
  • Fox cable network unit’s quarterly income improved by $146 million compared to the same period a year ago.
  • TW’s better than expected earnings contributed 62 cents per share, compared with Wall Street projections of 53 cents.

(Source: New York Times, “Profit Rises at Time Warner and at News Corporation,” 11.3.10)

The media giants earnings from last quarter are not only good news for shareholders, but for an industry that has seen its share of challenges over the last two years – battling online sites, cord cutting (customers canceling their pricey pay-TV subscriptions), falling TV ad revenues, not to mention the economy. According to this Reuters article, TW and Fox reiterated they saw no signs of cord cutting, a term adopted from the telephone companies to describe the shift from land lines to cell phones. “’I don’t get this cord cutting issue,’ News Corp Chief Operating Officer Chase Carey said on a conference call. ‘I feel it is a fundamental service that for American households is a fundamental part of what they do with their time, and what they value in their life.’”

The biggest reason for their strong earnings could be the most telling – and hopefully sustainable – number of all. All three media giants saw very encouraging increases in ad revenue in 2010. Both CBS and TW were up 10 percent, while Fox News Corp was up a whopping 16 percent from their domestic cable channels. (Source: Reuters, “WRAPUP 1-Media Sector Wrings Hands on 2011 Outlook,” 11.3.10)

Political ad spending was a nice shot in the arm for TV, with 2010 being an election year. In fact, political ad spending, for this year, is predicted at three billion dollars and may top 4.2 billion dollars, notes this Adage Age article.

Any numbers from 2010 should come in higher compared to a dreadful year in 2009. Last year TV ad spending was down by nine percent, led by a shredded car industry with the sectors TV ad spending down 23 percent compared to 2008. However, the increase in ad spending this year is still very impressive and driving revenue for a hard-pressed industry.

As quoted from this New York Times article, “’The takeaway is that advertising is strong,’ said Michael Nathanson, an analyst at Nomura. ‘The video ecosystem of affiliate fees and advertising seems to be holding up well.’”

This earnings season is proving to be a rebound year for media companies and is confirming what I have been writing about for the last two years – the same idea Sumner Redstone expressed before delivering very impressive earnings – “Content is King!”

The recipe seems simple for big media: provide great content; find a way to monetize the content; keep costs down; and let the content fall where it may. Then kick back and watch the revenue streams flow regardless of which platform audiences use to consume the content. It certainly is good to be king…at least for the moment.

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Dog-Days of Summer: Perfect Time for PR Reviewing and Planning

Wednesday, August 4th, 2010

August in Washington, D.C., where I work, exemplifies the “dog-days” of summer. Congress recesses and it seems everyone else does, too. The slightly slower pace allows us time to reflect on the first half of the year, and make plans for the last two quarters.

Third and Fourth Quarters Will Define PR Recovery” headlined a recent PR Week article. Debbie Friez's Dog Gus - BurrellesLuce Fresh Ideas Dog Days of SummerTo summarize: Just because there was an upswing in the first two quarters of the year, does not mean the industry has truly emerged from the downturn.

So how can you help your organization emerge successfully? 

1. Efficiency is a term thrown-around a lot, but it is still an important concept to PR that few have mastered. One friend, who works at a Fortune 500 company, said she wrote down everything she did for a few days. She was shocked to see she was not as good at multi-tasking as she thought. Her advice was to try to focus on completing a project before you look at the next email or tweet. This mirrors a similar idea expressed in a recent BurrellesLuce Fresh Ideas post by my colleague Colleen Flood, who attended the PRSA Counselors Academy back in May and learned that people can only do one thing at a time, as our brains haven’t yet involved to truly multi-task.

2. Mary Fletcher-Jones, Fletcher Prince, said via LinkedIn, that she plans to review clients who came on, clients who left, and what they purchased. I plan to do some of this same reflection and I think it is good for public relations, sales, and client service professionals to incorporate this practice on a regular basis.

Here are some other ideas for your August refection time:

  • Review budgets for the rest of 2010 and start on the 2011 budget.
  • Look at your PR/marketing plan, and decide if you need to make some mid-year changes.
  • Take time to read industry blogs and articles. What new tactics can you learn and put to use?
  • If you find you don’t have time for good refection, you might need to review your staffing needs. Do you need to hire someone to help with new projects/campaigns?
  • Set some new personal goals for the rest of the year. A life coach once suggested posting your main personal goals where you see them often, like on a Post-it note on your desk.

Do you have other suggestions for a mid-year review? Please share some of your insights. How are you working to help your organization emerge from the recession?

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Who Can You Trust? Mainstream Versus Social Media News Sources

Friday, April 9th, 2010

by Crystal deGoede*

trust_me_im_a_newspaper_journalist_dog_shirt-p1555540609999702762v7vb_210

Razzle.com

We all rely on mainstream media to tell us what is going on in the world. We trust the credibility of traditional news as an authority and we expect that at least 95 percent of what they report is the truth. It’s also no secret that the bulk of social media relies on traditional media as the source of its content as well. (Citizen journalism, in the form of breaking world events, is the exception not the rule, but even that often overlaps with traditional media.) I have to admit that I use social media during the day to get a quick glimpse of headlines from the traditional media outlets that I follow – and I am sure that I am not alone.

So, why are more traditional media outlets getting their “news” from social media lately? Social Media is fast and cuts to the chase (only 140 characters), but most of the time we have to wonder if what we are reading is even true (assuming we’re reading what we’re about to tweet or repost in the first place). And with the media landscape changing, it is understandable that mainstream media would want to remain the go-to source. But at what price?

Last Thursday was everyone’s favorite holiday, the one day that you can call your parents and tell them you got married in Vegas, “Aprils Fool’s Day.” We saw many large, well-known organizations joining in with their own pranks, such as Google, changing its name to Topeka, and McDonald’s, going along with a post by Grist, an environmental news website…

Grist announced that McDonald’s would no longer continue its worldwide composting initiatives after a University of California-Berkeley scientist discovered that none of the items on the menu would compost – complete with a photo seemingly depicting a year old “Happy Meal” still relatively fresh. What makes this story interesting is that the news began to spread across social media as if it was legitimate. All of this began with a blog post on March 3rd by Joann Bruso, wishing her “Happy Meal” a “Happy Birthday” and that lead to Grist’s April Fool’s prank. The question is how or why did a New York Times writer tweet the story?  (Check out a recent Fast Company article to see how the story plays out.)

In an effort to keep up with the ever-changing media landscape, do you think traditional media outlets are cutting corners and not checking their facts? Or are they just trying to stay hip – proving they’re in on the joke? It is funny how six months ago studies showed that people tweeting and updating in social media were using content from mainstream media sources and I still find that true. But are we all becoming so gullible and wrapped up in the “I want it now” lifestyle that we are making short-cuts in order to be the first to report?

I am sure you all remember the breaking news last July that actor Jeff Goldblum was dead. Many popular news organizations actually printed, and ran with the story for a couple of hours even though they found it online and the reports weren’t confirmed. I place a lot of trust in traditional media, as I am sure most of you do, and I always will; accidents happen and people post without understanding the repercussions and without scrutinizing the facts. No matter if we are a major news journalist or a back office tweeter, can we ever know that something on the Internet or printed in the paper is completely true? Not unless we are willing to get the hard-facts, do the research, and spend hours verifying every source.

As major news organizations, journalist, and mainstream bloggers they are trusted by their publics and their credibility depends on “getting the facts right” and producing quality stories. And as news consumer don’t we have an obligation to educate ourselves and help ensure accuracy before passing the information along? Shouldn’t the media and its audiences work together to create a certain standard of news and then hold each other accountable when it isn’t met? Then again, perhaps, “quick and easy” and “check the facts later” are the acceptable standards.

So, do you think mainstream media is trying to keep up with the fast-paced world of Twitter, Facebook, and other forms of social media by using content they find on the web?  Do you rely on traditional news outlets for the truth? Share your thoughts with the readers with BurrellesLuce Fresh Ideas.

*Bio: After graduating from East Carolina University with a Marketing degree in 2005, Crystal DeGoede moved to New Jersey. In her four years as a member of the BurrellesLuce marketing team and through her interaction with peers and clients she has learned what is important or what it takes to develop a career when you are just starting out. She is passionate about continuing to learn about the industry in which we serve and about her career path. By engaging readers on Fresh Ideas Crystal hopes to further develop her social media skills and inspire other “millennials” who are just out of college and/or working in the field of marketing and public relations. Twitter: @cldegoede LinkedIn: Crystal DeGoede Facebook: BurrellesLuce

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The More Things Change, The More They Stay the Same

Monday, February 8th, 2010
Flickr Image: David Reece

Flickr Image: David Reece

Now that 2010 is well underway, I thought it would be interesting to go back and read some articles and posts from the past couple years to decipher what’s changed in the realm of media relations. 

I was a little surprised to find that not much has really changed!  (Not entirely surprised as this was what I suspected.)

Your target media now may not be just traditional media but also bloggers, ezine/webzine editors, streaming webcast producers, and freelance writers. However, the qualities or traits that define good media relations have remained essentially the same: Before preparing your press release, do your homework and familiarize yourself with the chosen topics as well as recent writings of your target journalists and bloggers. Then do some additional checking to ensure that your intended audience is also the audience for the media you’re about to pitch. (BurrellesLuce 2009 whitepaper “New Rules for Media Relations”)

In early 2009, Jeremy Porter conducted interviews with PR professionals in an effort to gauge what the biggest challenges were in dealing with the media. The results shared on his Journalistics blog could have been written today!  Some of the challenges included were:

  • Having accurate media contact information – keeping up with ongoing changes
  • Breaking through filters to reach the right contact, at the right time, with just the right information
  • Leveraging new media like Twitter in appropriate ways
  • Having better access to what journalists are writing about and what information they value most
  • Measuring the value of media outreach and placement – beyond impressions, release pickup and ad value
  • Developing more effective processes for media relations – moving away from one-size-fits-all pitching

With the exception of Twitter, this sounds like the same challenges we had 15 years ago when I was working at a St. Louis PR agency.

I’m not oblivious to the fact that public relations and the media are changing in some ways (that may be the topic for a future post), but in many ways it seems that the more things change, the more they stay the same.  Am I wrong? What similarities or changes have you seen occurring in the world of public relations and media these past few years?

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