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]

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]

Who knew consumers are more open to spending money on newly launched products right after they get paid?  Professors Himanshu and Mishra (Utah) and Nayakankuppam (Iowa) call this behavior promotion-focused.  At the end of a pay cycle, when funds are tight, consumers exhibit prevention-focused behavior in the stores. A soon-to-be-published study on this topic contains important insights for marketers who want to know the best time to promote new products.

The researchers explained behavioral differences by analyzing consumer decisions when purchasing toothpaste. For example, consumers with a recent paycheck will buy whitening toothpaste in the hopes that they’ll become upwardly mobile. By the end of the pay cycle, when cash is tight, consumers purchase cavity-prevention toothpaste. By avoiding cavities, consumers can preserve money and the lifestyle they’ve already attained. Similarly, consumers  might be more apt to purchase laundry detergent that makes clothes smell nice right after they get paid. When they are out of money, consumers want to purchase detergent that extends the life of the items.

Based on these differences in consumer attitudes, the researchers say, “it would be more effective to launch new products at the beginning of the month (presumably, when people are near their paycheck and promotion-focused) rather than at the end of the month, when people are prevention-focused.” Of course, the study does include that giant presumption regarding exactly when people get paid. In many cases, payroll occurs twice a month and timing promotions to these payroll cycles could be tricky.

But the findings contrast what many had believed was a strong consumer loyalty to a specific product and indicate that a well-timed and positioned advertisement can effect sales.  The authors conclude “[t]he findings suggest to managers that the best time to promote products or messages with a promotion appeal is the near-salary condition and those with a prevention appeal is the far-from-salary condition.” Although the size of the sample,  61 consumers in the first phase and 152 consumers in the second phase was small, and the age range (21-45) limited, the findings are important to consider when promoting products during recessionary times.

[Source: How Salary Receipt Affects Consumers’ Regulatory Motivations and Product Preferences. SSRN.com 2010. Web. 1 Sept. 2010]