Q&A: Griffin Media's Bennett Griffin
K.C. Neel -- Multichannel News, 1/27/2009 11:20:07 AM MT
Bennett Griffin is president of Griffin Media Research, a supplier of custom advertising sales research to the electronic media industry. Griffin has been developing and offering research tools for various electronic media for the past 25 years. In recent years, he has been heavily involved in developing products and tools to support the cable industry's multiplatform ad sales and sees tremendous opportunities in that arena. He spoke with Multichannel News about his company and the industry's potential going forward. An edited transcript follows:
Q: What kind of services do you offer local ad sales executives?
A: We have offered qualitative research to media companies for 30 years. As ad sales were becoming more important to local cable operators, we began tailoring our research to meet their needs. We are the only research to offer completely customized research. The benefit there is that the operator can give us more input into what they want to know. We have 40 business categories to choose from and we tweak our list every year. For instance, this year health care is receiving more attention and emphasis from our clients.
Our standard report will measure 200 individualized items. We can measure [generic] products and services or by business name. We also ask questions that can help operators and their clients. Our research can determine whether consumers want to shop at local businesses or chains. We can also find out, for instance, whether consumers in communities adjacent to large cities whether they shop locally or go into the big city to shop. This can help the ad sales exec determine where to go for potential business and helps the existing ad client with information pertinent to their business.
Q: You offer media research to cable, broadcast and radio. Which sector is most vulnerable in 2009?
A: Cable has an advantage that the other media sectors don't have and that is the ability to target their ads and offer a multiplatform bundle. We are increasingly hearing that advertisers are being more careful with their spending. The way to get a bigger piece of a smaller pie is to document what you offer. Cable has a number of ways to do that. For instance, it can micro-target and qualitative information is a great way to determine whether a viewer is a buyer.
Q: How important is the bundle - or multiplatform sale - for cable operators?
A: Operators have been positioning themselves for this for several years but we are starting to see some practical applications taking shape now. Up until now, it has not been seen as a significant part of their revenue stream. But they now see it as an opportunity to create additional revenue on top of their linear networks. We're actively working with several operators who are beginning to push multiplatform sales, particularly Comcast.
Q: Are ad sales clients asking for multiplatform packages or do ad executives have to sell the client on those bundles?
A: In most cases, AEs have to present [bundling] as an opportunity. Most advertisers, especially at the local level, don't know much about it at this point. We're providing our clients with information that shows usage of on demand and online and also shows the kind of people using those platforms. The viewers who access on demand, for instance, are generally a desirable group. We can also show the interaction between those platforms and how using them both along with linear spots can complement each other and improve sales.
Q: Which has more potential for ad sales in the short term - on demand or online?
A: They each have advantages. For short-form opportunities, online will be the best outlet for advertisers. For long-form ads, on demand will be more important. Imagine the fine furniture retailer. He can present inventory, prices and specials online and guide viewers to on demand for more in-depth information on the kind of furniture he offers or provide other things like decorator tips. Ideally, the two will work in tandem with each and coupled with linear ads, provide the best coverage. The triple play for ad sales is similar to the triple play for consumers. It provides more value for the client and gives them a reason to stay with cable for their advertising needs.
Q: What kind of year will 2009 be for cable ad sales and what advice are giving operators?
A: We have a client base of roughly 100 cable ad sales organizations in 30 states and many of them had a pretty good year in 2008, aside from the Olympics and political spending. The groups that did well did things like diversify their client base, emphasized targeting and multiplatform opportunities and showed their clients how to buy smarter, not just more. Some told us that that while the auto sector declined for they weren't hurt that much because they had diversified their ad base enough so that auto wasn't the bulk of their sales. In 2009, cable has an advantage that other media segments don't have and they have to capitalize on that. They have the ability to target and bundle. Local ad sales haven't always been given a lot of attention at cable companies but its portion of the business can certainly have an impact on the bottom line. On the local side, the opportunity to increase local ad sales in 2009 clearly exists. How much it will offset any drops in national sales remains to be seen but most of our clients are encouraged by the possibilities.
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