Both broadcast and cable TV operators are projecting strong results through the end of 2010. Janney Montgomery Scott analyst Tony Wible analyst says that broadcast finished the 2^nd quarter with a 5.9% increase over last year. And cable saw revenue growth of 13.4%. Wible also pointed out that while the scatter market was bringing rate increases of up to 15-20%, the “upfront deals may provide an 8%-9% pricing increase base to grow off with the start of the new broadcast season.”

Cable networks have indicated such a strong interest in their media space that up to 99% of 3^rd quarter inventory had been sold by mid-August. A similar picture is expected for the 4^th quarter. One driver of demand has been financial-services companies looking to reach families and students before they head out to college campuses. In addition, auto manufacturers are rolling out more models this fall – up to 60 new models “compared to only 30 last year” writes Clair Atkinson for the New York Post. The increased activity in the automotive sector may explain the strong demand for spots in the sports space.

There’s  some uncertainty about which way the economy is headed as we approach year-end and 2011. But to avoid paying higher rates in the 4^th quarter, marketers might be making their year-end purchases now. Regarding  the economy, David Levy, chief of Turner Broadcasting’s ad sales, says “[p]eople still have to sell their product.” This is especially true during the all-important holiday season.

[Sources: Atkinson, Claire. Top-tier cable see ad boost. New York Post. 19 Aug. 2010. Web. 3 Sept. 2010; Szalai, Georg. TV ad sales looking solid for second half. HollywoodReporter.com. 19 Aug. 2010. Web. 3 Sept. 2010]

AAA has projected the number of Americans traveling this Labor Day holiday weekend will increase 9.9% from 2009, with approximately 34.4 million travelers taking a trip at least 50 miles away from home. Last year, 31.3 million Americans traveled during the Labor Day holiday. The 2010 Labor Day holiday travel period is defined as Thursday, September 2 to Monday, September 6.

“While media reports on the state of the U.S. economy are mixed, many Americans are still interested in taking one more trip as the summer travel season comes to a close,” said Glen MacDonell, director, AAA Travel Services. “It is encouraging to see more Americans planning to travel to visit family, friends and exciting vacation destinations.”

The increase in travel for Labor Day appears to be the result of economic improvement over the past year. While job growth has been disappointing, gross domestic product, household net worth and consumer confidence have increased, while consumer debt has decreased. The U.S. travel industry began to gain traction in the fourth quarter of 2009 and that momentum has continued this year.

In addition to economic data, the date of the Labor Day holiday is another variable considered in the forecast. The earlier the holiday falls in September, the more travel tends to occur. Although the growth in Labor Day travel is predicted to be strong at 9.9%, had the holiday fallen earlier in the month the forecasted number of travelers would likely be even higher.

Air and car trips to increase

Trips by automobile are expected to increase in popularity with 91% of travelers, or 31.4 million people, reaching their destination by driving. This is an increase of 10.3% from last Labor Day when 28.5 million travelers went by motor vehicle. Barring any major tropical storm activity in the Gulf Coast region, AAA expects the national average price of self-serve regular gasoline to be between $2.65 and $2.75 per gallon during this holiday weekend. Leisure air travel is expected to account for just five percent of overall travel with 1.62 million holiday flyers. This is an increase of 4.6% from one year ago when 1.54 million flew. Trips by other modes, including rail, bus and watercraft, will be the dominant means of travel used by four percent of all travelers.

Median spending increases; average distance traveled decreases

Based on a survey of traveler intentions, the average distance traveled by Americans this Labor Day holiday weekend is expected to be 635 miles, slightly less than one year ago (645 miles). Median spending is expected to be $697 this Labor Day, nearly $50 more than last year when median spending was estimated at $650. Dining (63%); shopping (47%) and visiting with friends and relatives (43%) were named as the three top primary activities by travelers this Labor Day weekend.

Airfares, hotel and rental car rates increase over holiday compared to 2009

According to AAA’s Leisure Travel Index, airfares over the Labor Day holiday weekend are expected to increase nine percent from last year with the lowest round-trip rates moving up to $179 for the top 40 U.S. air routes. Weekend daily car rental rates will increase seven percent to an average of $46. Hotel rates for AAA Three Diamond lodgings are expected to increase six percent from a year ago with travelers spending an average of $139 per night compared to $132 last year. Travelers planning to stay at AAA Two Diamond hotels can expect to pay two percent more at an average cost of $102 per night.

[Source:  "AAA / IHS Global Insight 2010 Labor Day holiday forecast."  AAA/ IHS Global Insight.  25 Aug. 2010.  Web.  26 Aug. 2010.]

For decades, marketers of cosmetics and skin care solutions positioned their products for mature women as being suitable for the 40+ age group. As Baby Boomers aged, marketers began talking to women in the 50+ age group. And as female Baby Boomers have indicated a continued interest in spending money to look their best, more marketers are  seeing a niche for women in the next decade – 60+.

David B. Wolfe, head of Wolfe Resources Group,  recently told MediaPost that “since 1989, the majority of women in the U.S. have been over the age of 40, and yet through most of that time the cosmetics industry has focused on younger and younger women.”  As the number of women over age 40 continues to grow, marketers like Avon are making changes. Later this year, the company will use Jacqueline Bisset to promote its new ANEW Platinum line of skin care products which is designed specifically for consumers over age 60. Avon isn’t alone in targeting this demographic. A quick review of any consumer magazine shows beauty companies vying for the attention of Boomer women by using icons such as Ellen Degeneres and Diane Keaton.

Wolfe notes that using age as the only demographic trait to position beauty products can be difficult to pull off. “There has to be some kind of values that resonate, and it’s very hard to predict,” he says. The Boomers, after all, are members of the generation that promised never to grow old. But as more 60+ women buy products to help them look their best, marketers have an opportunity to reach out and make them feel important and valued. The strategy should result in increased sales.

[Sources: Avon Products. 23 Aug. 2010. Web. 1 Sept. 2010; Mahoney, Sarah. Avon Launches 60-Plus Skincare Line. MarketingDaily. 24 Aug. 2010. Web. 1 Sept. 2010]

More is not always better when marketers engage in e-mail campaigns. For a certain group of consumers, receiving more promotional e-mails  means pressing the delete key more often.  One study shows that over 70% of marketers keep these consumer names on e-mail lists for up to 2 years even though the messages are never opened.

The study, conducted by Return Path, highlighted the missed opportunities to win back a customer on the part of some of the country’s largest retailers. Many of the retailers in the study continued to bombard non-responsive consumers with e-mail, sometimes up to 8 times a week.  A wiser strategy would be to first identify inactive subscribers. Marketers should then decrease e-mails directed to these subscribers. An additional strategy is to send a ‘win-back’ or promotional message. When all else fails, a marketer can notify the subscriber that e-mails will stop unless it hears otherwise.

Taking these steps can help marketers improve their  results. Writing for Internet Retailer, Katie Deatsch points out that non-responsive subscribers “dilute e-mail response patterns, skew metrics and make optimization more difficult.”  Marketers may soon be adjusting their e-mail campaigns in order to reduce costs and avoid contributing to the deluge of communications that results in some transmissions ending up in the spam folders.

[Source: Deatsch, Katie. Many retailers keep sending e-mails. InternetRetailer.com. 24 Aug. 2010. Web. 1 Sept. 2010]