Summit Notebook

Exclusive outtakes from industry leaders

Recession’s perfect storm speeds up change in ad industry

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Why is it that the United States’ advertising as a proportion of marketing services is at its lowest point since 1977, maybe even lower than since the Second World War?

You may have guessed it it’s the recession.

But it will get better, Martin Sorrell, CEO of advertising giant WPP, said.

“The recession is less worse,” Sorrell said, repeating a favourite phrase of late, and while it’s the biggest recession since 1929 it is also “a perfect storm” that has brought forward change. 

“The recession has accelerated structural changes that were already happening,” Sorrell said at the Reuters Global Media Summit.

Will advertising ever go back to where it was? Yes, if you are looking at new media advertising on Kindles and mobile.

Geneva is for wealth management

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Even for an American who’s not wealthy, Geneva has a reputation as a global centre for wealth management – the place the world’s rich come to stash their money and (they hope) make it grow.

    But you don’t necessarily expect it to be so aggressive — after all, the rich tend to be demure when it comes to their banking.

from MediaFile:

Cautious splurge: the art of luxury advertising

Advertising at the highest end of the luxury market may be the last to get hit in an economic slump, but it's still going to get scathed before the ad market turns around, Nick Brien, who heads up Interpublic Group's Mediabrands, a holding company for media buying and planning agencies,  told the Reuters Media Summit in New York.

"There will always be some brands and marketers who are going to want to live beyond the realities that are going on for the masses of people," said Brien, who's responsible for agencies like Universal McCann, Initiative, Magna, and J3 . "That will go on... (but) will it be as pronounced as it was, will be it as mainstream?"

Baseball’s Bud Selig: Won’t be Commish again. Really.

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It’s easy to tell that Bud Selig, Major League Baseball’s commissioner, is a lifer, a true old-school fan with his dream job. He tells great stories about being a fan, a lifelong friend of icons like Hank Aaron, and is famous for being energetic when watching games live.

He loves it so much that this year he re-upped for 4 more years as its top dog, even after he said he would not. But at the Reuters Media Summit, he says that in 2012, he’s done. It’s over. Seriously. Done. Selig, signing off. Over and out. Right Bud?

from MediaFile:

Dial M For MySpace mobile advertising

MySpace co-founder Chris DeWolfe is bullish on the mobile advertising market, but says ad agencies and corporate sponsors haven't figured out to dial into it.

Speaking at the Reuters Media Summit, DeWolfe outlined MySpace's mobile efforts, such as its Blackberry application. He said the company was targeting more download applications for mobile devices. He said he saw big opportunities in the mobile-based advertising sector once there's some standardization.

from MediaFile:

Desperately seeking hits: MPG

Are people going to watch more TV because they've no money to go out? According to media buying and planning agency MPG -- a subsidiary of Havas, the world's sixth-largest ad firm -- the answer is no, unless the TV networks come up with better shows.

"That's inventory for us, that's our supply," MPG Chief Operating Officer Steve Lanzano told the Reuters Media Summit in New York. "The thing is, there are no hit shows out there on the big networks," he added. "And if there's no supply in the marketplace, that just makes it harder and harder for us."

AT&T: It’s all about the athletes

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att.jpgAT&T is an official sponsor of the U.S. Olympic team, which generally makes for great brand building. This year, however, marketing promises to be a little more complicated because of political tensions. Look no further than the protests that accompanied the international torch relay.

This led us to ask Chief Financial Officer Rick Lindner about whether they’ve changed their minds about their Olympic advertising.

Seagate likes it easy, cheap and free

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Seagate Technology CEO Bill WatkinsSeagate Chief Executive Bill Watkins has a reason to like easy, free ways to consume information on the Internet.

After all, his company is the world’s largest computer disk-drive maker, something that comes in handy for all the storage space required to back up online audio and video.

Virgin Mobile USA’s trillions and trillions

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Dan Schulman, CEO of Virgin Mobile USA Inc., speaks during the Reuters Global Technology, Media and Telecom SummitWill mobile advertising make you rich?

Virgin Mobile USA CEO Dan Schulman told the Reuters Global Technology, Media and Telecoms Summit today about a new advertising partnership with AOL’s Third Screen Media.

We asked him how big a deal it was. Schulman was enthusiastic, to say the least.

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