Tuesday 3 January 2012

Media predictions for 2012: media business and advertising - article:

http://www.guardian.co.uk/media/2011/dec/30/media-predictions-2012-business-advertising

Key points/facts from article: 


Businesses: 

  • The failure of Shameless maker All3Media and Dutch firm Eyeworks, maker of Test the Nation and The Biggest Loser, to find buyers in 2011 is indicative of how tough the market is shaping up to be next year.
  • All eyes are on Big Brother maker Endemol, which if it can finally agree the protracted restructuring of its €2.8bn debt, which is widely expected to be put up for sale next year.
  • ITV will be debt free by the end of the year and has access to £1bn, or more, with chief executive Adam Crozier finally likely to make a major acquisition to boost its production arm.
  • Facebook's highly-anticipated IPO, which could well dwarf Google's effort in 2004, will send the tech stock buzz back into overdrive after the failure of Netflix, Groupon and Zynga to set investors alight.
  • However the biggest potential development of the year is whether Rupert Murdoch will be forced by his board into looking to sell off some, or all, of his newspaper titles.
  • A forced sale attracts bargain-hunting predators and top of the list is Richard Desmond, owner of Express Newspapers and Channel 5, who has form here, having offered £1bn for the Sun in 2009.
Advertising: 
  • Sir Martin Sorrell's Group M reckons that the 3% growth it has factored in for 2012 would be lucky to be flat, at best, if not for the Olympics.
  • By this he means that comparisons with the uplift in ad revenue seen in other host countries, where the Olympics airs on commercial TV, are misguided because in the UK it airs on the BBC
  • Morgan said that investors should not have "expectations of a significant lift'; Daintith added that the event is "not the answer" and that the market "shouldn't be thinking about huge numbers from the Olympics for our titles". DMGT reckons it will see an uplift of about £5m.
  • The big winner will be the outdoor advertising market - Group M reckons it will be up 6%, the most of any media bar digital advertising - with the £746m ad take pencilled the highest since 2008.
  • National newspaper advertising is forecast to be down 3.1% and the regional market down 7.8%.

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