As this issue goes to press, the annual exercise in Ostrich Yoga, also known as the television upfront, is beginning to convene. As in so many prior years, brand execs and media buyers start the process complaining bitterly about the astounding rate hikes levied by networks for air time with continually dwindling audiences. And yet, inevitably, these buyers bury their collective heads in the sand and spend madly, driving last year’s upfront to record highs. After all, even in stringent times, nobody ever got fired for buying TV time. ▪ Will the Ostriches prevail again this year? Maybe not. In fact, they may be outnumbered by ROI Hawks, thanks to two factors driving marketing spend. First, TiVo and other digital video recording technologies (increasingly packaged with satellite and digital cable services) are making ad-skipping a real problem for advertising traditionalists. According to research by consulting firm Accenture, while just 8% of U.S. households have DVRs today, more than 40% will by 2009. By then, it estimates, nearly a quarter of all TV spots will go unseen thanks to skipping. ▪ If you’re the chief marketing officer, how do you justify that spending to your board of trustees and shareholders? Because the second driver hitting marketers is the 2003 Sarbanes Oxley Act, which requires public companies to define more clearly the results of spending. ▪ Several brands have turned to product placement — in TV, films and digital games — as the answer to DVRs. In fact, research by PQ Media shows placement spending boomed this past year, especially in TV (see story on pg. 7). But, as Sarah O’Leary notes (on pg. 64), the best marketing closes the loop with intelligently structured promotional campaigns that help a brand gain better short- and long-term returns on its very expensive entertainment investment. ▪ We’re delighted to bring you seven top-notch examples of brands that have done just that, beginning on pg. 15. And we hope you can join us at the Promotion Marketing Association’s Star Power Conference in Los Angeles on June 14, when we’ll honor these 2005 EMMA winners!
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