SMT Conference: Ad Buyers, Sellers Predict Optimism For '10

Bogusz Says Fast Foods Continue To Spend Heavily

The advertising market for sports television, digital and print has begun to rebound, and a group of buyers and sellers alike expressed optimism that '10 will be a better year than '09. During a panel at the SBJ/SBD FSA Sports Media & Technology Conference entitled “Ad Sales: What Will the Market Bear?,” Optimum Sports Managing Dir Exec VP Tom McGovern said, “We saw the advertising market fall off a lot faster than other markets. … We're seeing a lot of money coming back on a shorter term.” As evidence of the economy's gradual turnaround, CBS Sports Exec VP/Sales & Marketing John Bogusz pointed to the network's success this fall at surpassing its revenues in '08 for both the NFL and SEC packages this year. Several categories have been important to the advertising mix in the current economy, Bogusz said. He added, “Fast foods, all of them across the board, continue to spend heavily. The telecoms and movie companies. Thank God all three of those categories have been spending.” Mark Ford, President & Group Publisher, Times Inc. News Group, said SI is seeing automotive come back. Ford: “Specifically, Ford and GM are spending money. There's a lot of money in that overall purchase funnel now.”

AD MARKET DID NOT RETURN EASILY: Optimedia Exec VP Larry Novenstern said that the return of the advertising market did not come easily. It took three months to negotiate many advertising buys coming out of upfronts this year because there was a big disparity between buyers and sellers expectations on pricing for spots this year. Novenstern added, “The biggest problem was no one was willing to move.” But he said, “The advertising industry tends to be a lagging indicator in the economy. Hopefully, we've turned the corner.” Bogusz said CBS was more than 80% sold for Super Bowl XLIV. He added, “We are surprisingly and happily ahead of pace of 2007.” McGovern said, “That is a good pace. … This is slightly ahead of a normal pace.”

McGovern Feels Pushing Super Bowl Back Two Weeks Could Pose Problems

NOT ADVOCATING EXPANDED NFL SCHEDULE: Buyers expressed skepticism that the NFL should expand its schedule and add two games. McGovern said, “Part of me says it adds more inventory to the marketplace so it will lower price. The other part of me wonders what impact it will have on the viewer.” McGovern said that he worried the addition of games would push the NFL season too far back and plant the Super Bowl on President's Day weekend, which would mess with sports fans national sense of order. McGovern: “If you look at the number of weeks, I don't personally want to go to the Super Bowl President’s Day weekend. I want to do something with my family.” Novenstern agreed that ratings would likely fall if the NFL increased supply, saying that it would increase the likelihood that teams would play less meaningful games. Novenstern: “If you add what amounts to 15% more supply, ratings are going to go down because people are going to ask, 'Why am I watching more this week and not that week.'”

WE’RE NO. 2!: The best sports property following the NFL was discussed, and McGovern said it is college football, followed by MLB, NBA, and NASCAR. "From my perspective as a buyer, that's how I look at it." Novenstern jokingly said he would have soccer as No. 2. Bogusz said he "had to get a sales pitch" in there and added the NCAA men’s basketball tournament.