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Market Intelligence News Brief: Trends in ’07

Telecom Print investment down, FSI placement becomes more selective, Automotive category records a slight boost.


Telecom Print Investment Down in 2007…

Owing largely to the consolidation of AT&T and its wireless company Cingular, newspapers have taken a considerable hit in Telecom advertising. Bill Vincent, business manager of Diario La Estrella, notes, “I’ve spoken with a few publishers that say they will live or die depending on what AT&T decides to do.”

Big Box Retailers Scale Back and re-Focus FSI placement…

According to Portada Ad-tracking, Big-box retailers like Sear’s, Best Buy, Home Depot and Wal Mart are significantly paring down their FSI placement in 2007, in some cases by as much as 50%.

According to Daniel Maldonado, director of operations at Al Dia Philadelphia, “ In our case, it has remained pretty consistent, but I’ve spoken with the folks at the NSA’s Specialized Print Marketing agency and they’ve told me that they’re many big-box retailers are decreasing FSI investment, and really placing only in properties that can demonstrate satisfactory ROI. It’s not like before where there was this endless bounty and everyone got their share,” says Maldonado. He notes that a number of retailers are testing the waters of the mid-Atlantic region’s Hispanic print market to see what level of response they experience there.

However, in some markets, like Florida, big box retailers are increasing FSI allocation and decreasing ROP (e.g. Publix).

Diario La Estrella’s Bill Vincent adds, “I think the trend is that some of these companies are taking a second look at newspaper advertising in general. Some are reducing newspaper ROP and FSI investment just to see what will happen. I’d say the market is flat to a little bit down, but I’m confident it will recover. What’s interesting is that as some of our regular FSI clients step away, their competitors are stepping in to fill the void.”

Auto Climbing?

On a brighter note, numbers for automotive ROP placement are slightly up over January-August figures from last year. According to Portada’s Ad-tracking database, Hispanic newspaper advertisers have spent just over $10.5 million in Hispanic ROP advertising during the first seven months of 2007, compared with just under $10 million during the same period of 2006—a 5% increase.

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