Media & Marketing:Traditional media, usually characterised as television, radio and press, has been under huge commercial pressure around the world in the past three years, mainly because of online threats from relative newcomers like Google. But next year the sheer magnitude of Special Savings Incentive Account (SSIA) payouts should offset any encroachment on traditional media revenues in the Republic by online rivals.
That is according to a 2007 media forecast issued this week for the Republic by media auditing firm Billetts. It predicts a year-on-year rise of 6 per cent in advertising revenue in 2007.
Television will be the main beneficiary with a rise of 9 per cent in revenue, with press having to live with a more modest rise of 4 per cent.
While the year ahead will be broadly positive, the forecast suggests it will be a year of two halves. The first half will be dominated by cash released from SSIAs. Interest rates should make the second half a little leaner in terms of media spend.
Billetts Ireland predicts demand for advertising airtime/space to increase 8 per cent in the first half of the year, but by just 3 per cent in the second half.
Nigel Brophy, managing director of Billetts Ireland, said: "Media buying agencies must ensure that they minimise the media rates down to 2006 costs and achieve the best value available for their clients. What with media consolidation continuing, and the large communication companies forming media buying groups, becoming the new 'media owner', advertisers must ask if their agency is giving them the best value available."
The other predictions the agency makes are:
More satellite stations will provide an "Irish opt out" on their channels, including Gold, Hallmark and Nickelodeon Jr. This involves Irish material, usually advertisements, being inserted in among the normal programming, which originates outside Ireland.
Channel Six will increase viewers by transmitting on the Sky satellite platform.
The company Carlton Screen will become the sole sales house to sell cinema advertising space across all Irish cinemas.
Outdoor advertising specialist JC Decaux will take over Clear Channel, giving it a 40 per cent share of the outdoor market.
What the forecast seeks to do is pinpoint the areas for growth in 2007. In that context the forecast looks at sport, and predicts that the main sporting event will be the Rugby World Cup. The chances of Brian O'Driscoll's team reaching the final or semifinals should guarantee a high audience.
Setanta has exclusive rights to transmit all matches, with the Irish matches also broadcast on RTÉ. The heightened profile of rugby usually means higher advertising spending for cars, drink and men's grooming products.
Geldof looks to emulate YouTube
After Google was prepared to pay out $1.7 billion (€1.28 billion) for YouTube, entrepreneurs worldwide are now trying to create regional replicas of the video uploading website. In fact, many entrepreneurs believe niche versions of YouTube probably offer the best chance of success in the future.
One of those trying to create a viable YouTube-style business is Bob Geldof. His public.tv site is starting to gain momentum in Britain. The site is a little more high-minded than YouTube and describes itself as "a community site for all those interested in public issues". Essentially, NGOs, government bodies and lobby groups will be allowed to upload video content to the site. People using the site are being encouraged to share video links with friends and colleagues, and comment on the videos.
Various television services have been invited to put content on the site: Country Channel TV, Green TV, Local Government TV and Research TV. Many other organisations have agreed either to broadcast their videos on Public TV or to allow Public TV to link to the relevant page on a third-party external website.
The site is owned by Ten Alps, the production and publishing company owned by Geldof. It has an annual turnover of £70 million (€104 million). Geldof and his team believe there is a huge demand for video content, but with some "editorial substance".
'Late, Late Show' is viewing hit
Almost three in 10 Irish people watched last Friday's Late Late Toy Show, making it the most watched television programme of the past four years. The programme, fronted by Pat Kenny, attracted 1.1 million viewers. This was several thousand more than last year.
Advertising agency Initiative said this week that the show was a phenomenon in viewing terms for RTÉ. Over recent years, it has managed to eclipse events like the World Cup final and Eurovision Song Contest, it said.
