Posts Tagged ‘spending’


2010 PR News Media Relations Conference: David Warschawski interviewed by Johna Burke, BurrellesLuce

Friday, December 10th, 2010

Transcript –

JOHNA BURKE: Hello, this is Johna Burke with BurrellesLuce, and I’m here at the PR News Media Relations Conference. And I’m here with David.

David, will you please introduce yourself?

DAVID WARSCHAWSKI: Yes, I’m David Warschawski. I’m CEO of Warschawski. We’re a full service marketing communications firm.

BURKE: David, can you please share the tips with organizations on how to avoid losing money?

WARSCHAWSKI: That’s a great question, just finished talking about it. Let me give you four main tips. The first is, number one, get clarity of what your brand is, what makes you highly unique and relevant for your target audience, and create marketing communications around that. But until you have clarity of that, it’s hard to make sure that you’re using your money wisely.

Secondly, make sure you have clarity of who your target audience is. And not just clarity of your primary, but of your primary, your secondary and your tertiary target audiences. That way you can allocate your spending wisely, making sure that you’re hitting them with your key messages to move them to action so that your brand becomes resonant for them.

Third is make sure you’re not jumping on the bandwagon. Don’t follow the latest and hottest topics. So if social media isn’t right for you, you can’t sustain it or do a great job, as one example, don’t do it.

And last but not least, everyone has a great resource that should be used, and that’s your internal communications team, it’s your internal team in total. Turn them into brand ambassadors for you. Use them and leverage them. Make them the folks who on a day in and day out basis represent your brand in the most positive way. Fantastic four simple steps to make sure you’re spending your money wisely and getting the biggest bang for your buck.

BURKE: Thanks so much. And where can people find you online?

WARSCHAWSKI: Best is go to our website, warschawski.com. I’ll spell it for you. It’s W-A-R-S as in Sam C-H-A-W-S as in Sam K-I-dot-com.

BURKE: Great. Thank you so much.

WARSCHAWSKI: Thank you.

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.