Execs Expect Online Sales to Grow in ’09
K.C. Neel -- Multichannel News, 1/12/2009 6:14:00 AM
Traditional advertising sales may decline in 2009, but several local cable ad sales executives expect online sales to grow significantly in 2009.
“We’ve been hearing about advanced media services since the late 1990s,” said Steve Litwer, senior vice president of ad sales for OnMedia, Mediacom Communications’ ad sales division. “On-demand and addressable ads are supposed to give clients the ability to target customers and provide more flexibility and instant reporting. But the Internet already does that. The Internet is already on demand and interactive. We have our work cut out for us because we’re behind but that is where ad sales are going and it will be huge.”
As such, OnMedia has been crafting an Internet strategy for months and Litwer said the company will aggressively role out its online sales product offerings this year. But he is keeping the details close to the vest for the time being.
“Online sales are already three times bigger than local cable spot sales,” Litwer said. “And that is where the money is going today. I recently called on several large DMA clients and asked them about their Web strategies. The lowest figure I was told was 10% of their ad budget and one Toyota dealer told me he plans to spend 50% of his advertising on the Web [in 2009.]”
Other companies including Bresnan Communications and Insight Communications also see opportunities for bringing in new clients and offering existing clients additional advertising outlet using online sales.
“Advanced services and the Internet will play big roles in our advertising offerings,” said Kevin Dowell, senior vice president of ad sales for Insight Communications.
Comcast Spotlight spent much of 2008 training and educating its sales force in the benefit and opportunities of online ads. It also installed research, analytic and research tools so account executives can better sell those services and customers can get the information they need to gauge success.
Now Comcast Spotlight is ready to focus selling bundles of ad products that cross multiple platforms, according to Steve Klein, divisional advanced media director for Comcast Spotlight. Packages that include traditional TV spot, on demand and online sales will be a top priority for Comcast Spotlight reps around the country.
“I’d classify 2008 as a transition year for us,” Klein said. “We’ve gone from being sellers of spot ads to digital advertising execs. We have stressed the idea of building individualized solutions for our clients. With a local Internet outlet, we can address our clients’ online needs.”
In the past, spot TV avails were always the first option offered to clients, Klein said. Now, everything is being equal footing. Spot sales will always be important, especially with cable’s ability to zone ads geographically. But online ads are becoming more attractive to advertisers all the time. And advertisers are finding that when they advertise on multiple platforms, they are experiencing better results.
Clients and agencies are beginning to ask for and about online sales opportunities, Klein said. Comcast Spotlight experienced an almost 200% increase in online sales in 2008 over 2007 totals and while Klein doesn’t expect to repeat those skyrocketing numbers this year, he does see the potential to double the business in 2009.
“We [Comcast.net] get more hits than KUSA [the Gannett TV station in Denver],” Klein said. “In fact, we’re the largest local media site in the Denver DMA and that is the case with most other markets we are in as well. When we tell that story, it resonates with clients and agencies. We are always striving for simplicity for our clients but it’s incumbent upon us to make give them options that will work for them and we have several options. Our growth in 2008 was indicative of the focused effort we put behind it. We are just as committed this year and expect strong growth in the category.”
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