PRODUCT PLACEMENTS ARE FUTURE OF TV ADVERTISING, TvB IS TOLD

Speakers and those in audience we talked with later endorsed PPs, with some saying advertising withing a program would free more spot time for sale to local advertisers. Irwin Gotlieb of MindShare Worldwide said PPs would help reduce clutter, which he said was TV’s biggest problem. PPs were seen by advertisers and broadcasters as an especially strong TV network sales vehicle in reality programs, but Fox Networks Group CEO Tony Vinciquerra said: “We know that our network will not be supported long term” by reality programs. Stanley Hubbard of Hubbard Bcstg. predicted that in 15 years satellite-delivered TV programming would catch cable and they would be divided equally in U.S. TV homes. He said that would be healthy for over-air TV stations since satellite systems didn’t have ability to insert commercials for local markets.

There was much discussion about a 2nd revenue stream and how best to use excess channel space provided by DTV. Moonves said it remained to be seen whether DTV could “enhance our ability to make money.” Andrew Fisher of Cox TV said there was “an awful lot of stuff that can be done with excess [channel] space,” citing projects Cox had under way. David Barrett of Hearst-Argyle TV said his company was developing local Web pages for its TV stations where small companies that couldn’t afford to buy time on TV stations could advertise. Steve Mosko of Sony Pictures TV said Sony was helping Raycom develop Web pages for its 3 dozen TV stations. “There’s money out there to be had,” he said.

David Verklin of media buyer Carat N. America said “cable is a hamburger helper” for TV advertisers, providing spots at low cost. While all panelists were optimistic about the future of TV advertising, Verklin was most bullish, saying Carat was placing $4.5 billion a year in advertising and it wasn’t even a factor in the U.S. 4 years ago. Vinciquerra said he was “very optimistic,” with the TV ad market now very healthy despite “the historic lows” of the last few quarters.

Erwin Ephron of Ephron, Papazian & Ephron said a major reason TV had “a bright future” was that many major advertisers “haven’t got a clue” as to how to use the print media. But, he said, accurate measurement of TV viewers is “a terrible problem. It’s a money problem.” That contention was disputed immediately y Nielsen Media Research CEO Susan Whiting. “Television is the best-measured medium today,” she said, with Nielsen constantly updating and using different techniques and viewing models.

The FCC’s reevaluation of broadcast ownership restrictions came into the discussions several times, but when asked what would happen if the station cap were raised to 45% of viewers, Fox’s Vinciquerra said: “I'd rather not answer [because] we just don’t know” what the FCC is going to do.” NAB and its TV members are pushing to keep 35% cap in place and Barrett said “it’s about damned time” for the Commission to act. Steve Herson of Telerep predicted “there will be some sort of deregulation” by the FCC that would trigger many TV stations to change hands. He said that would cause problems for firms such as Telerep with so many station clients acquiring new owners. Herson said TV stations represented by Telerep were 85% sold out of time for May, 65% for June.

Keynoter James Press of Toyota said his company had spent $6.5 billion on TV commercials in the last 10 years -- more money “than almost any other part of our business.” Toyota discovered that its potential customers had embraced the Internet, “so we're actually more successful by marrying the 2 to exceed customer expectations,” he said. Press predicted today’s anxieties about economy “will be short- lived… Supporting that belief, we plan to boost [TV] marketing spending” for the 2nd half of the year.