NEW YORK (Reuters) - the media companies message came through loud and clear: TV advertising is back.
Only a few big media companies reported earnings for the first three months of the year, Viacom and Discovery Communications Inc, among them, but the results show the money continuously in national television campaigns. The United States advertising sales has soared 11 percent to Viacom.
Similar trends are expected to support the results of media reported big companies this week, including News Corp, Time Warner Inc., CBS Corp. and Comcast Corp., owner of a controlling interest in NBC Universal.
Encouraged by signs that companies spend more to promote cell phones, of bicarbonate of soda and jeans, insurance plans, investors pushed up to the standard & Poor media index 18% this year. CBS, the most sensitive for the advertising market, is a hearty 33 per cent.
"It is a strong ad market, another indication that the economy is stronger and that marketing budgets got high," said Brad Adgate, advertising and marketing firm Horizon media analyst.
Executives of TV, who survived the dismal ad recession, can be forgiven to celebrate. Not only they are able to announce the stellar quarterly earnings, but they are in the heading of the driver's seat in the most crucial period of the year for ad sales.
It is an annual section called the initial market, the period may when networks introduce their new prime time schedule and enter into negotiations for the majority of their advertising inventory. Issues for major broadcast networks four - ABC, Fox, NBC and CBS - is $ 8.5 billion to 9 billion in commitments.
The big four broadcast networks could see prices 10 percent jump in of this year advance on those of a year ago, analysts predicted, the purchasers of advertising and TV executives saying that this would be the first increase in double digits in recent memory.
Some, of course, depends on whether networks can reach successfully for TV in 2011-2012 season.
"Beyond gender, what we are looking for on the dissemination of buzzy emissions, said David Scardino, specialist in entertainment media, Rwandan Patriotic Army Agency." "" "Those that would revitalize the audiences and get people talking."
Any price increases have been unthinkable also recently that in 2009, when chief marketing officers have seen their budgets cut to the bone. Advertisers spent 10 to 15 per cent less money in the year from early on, and critics said the death of the business model of diffusion.
Given that the US economy began its slow reverse, such predictions looked too say. Advertising expenditures grew progressively more - about 3% per year - and the TV has emerged as surprise leaders.
For established media, it's kind of remarkable,"said Kris Magel, Director of the National Outreach Initiative, a division of Interpublic's Cos Inc group. He noted that, unlike TV, radio and newspapers still show that they can return to advertisers.
The advantage for television is the size of its audience. Even if broadcast TV ratings are low, number overall viewership for television continues to grow when the cable is taken into account.
Moreover, TV advertising seems to work in conjunction with digital advertising - media the fastest growth area.
"Advertisers are realizing that digital and TV better across work that separately," said Magel.
In other words, social media are perhaps not broadcast TV-killer who feared. But a clutch of other threats still exists, starting with video services online such as Netflix, which is client signing by the seized.
Add to that a housing market rocky, persistent and growing products unemployment numbers, prices, which limits amount companies can spend in other areas, including marketing.
There is also evidence that Japanese carmakers have reduced their spending marketing after the March earthquake and the tsunami, not to mention the concerns that the National Football League season will be undone by the labour disputes.
But advertisers may be wary of playing just purely and may bargaining sessions. Any person needing to buy last minute commercial times this winter to prices were 30-40% higher than the price current year last upfront - a reminder of the risk of locking is not alone in the long term.
(Reported by Paul Thomasch, editing by Gerald e. McCormick)
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