Friday, 4th January 2008

INFO BOX

World Ad Spending Growing Faster Than U.S. in 2008
Centre for Media Research, 3rd Jan 2008

According to a new study from GroupM, Advertising spend in US measured media is expected to increase almost 4% in 2008 compared with 2007, when spending was up about 3%. Worldwide spend is expected to go up 7% in 2008, after an anticipated 6% increase in 2007. US advertising spending is expected increase 3.7%, to $168.6 billion, in 2008. Spending in 2007 is expected to come in at 2.8% higher than in 2006. Worldwide spending is expected to go up 6.8%, to some $479 billion.

Television and the internet are the primary engines of global ad growth, with 50% and 30%, respectively, of additional new investment in 2008, according to GroupM Futures Director Adam Smith. He also said spending on marketing services, such as sponsorships and public relations, is growing at a faster rate than for traditional advertising. The 2008 spending expectations largely reflect the Olympics and the US election, says the report:

* The Games are forecast to bring $1 billion in ad spending to national TV and $200-$300 million to local broadcast
* The election is even more important to local broadcast and is expected to inject nearly $2 billion in 2008 before facing a tough adjustment in 2009
* Internet ad spending is expected to exceed 10% of global ad investment in 2008 for the first time ever
* Search will comprise 65-70% measured online advertising in 2008, up from 50% in 2005.
* Another first, in one country, Sweden, Online advertising is expected to be the largest single medium. The UK and Denmark are likely to be the next in line
* Advertising spending in newspapers is expected to continue to suffer, and new softness is already evident in some large categories such as automotive, airlines, and retail. The continued heavy loss of classified advertising to the internet continues to do the most serious damage


SPORTS SHORTS

* The Badminton World Federation is to impose a refundable $500 bond on certain countries entering its competitions, in a bid to put an end to ‘no-shows.’ The federation cited Mongolia as a country with ‘a history of non-appearance in BWF events.’ The federation said that entries from such countries would only be accepted on payment of the bond, which would then be refunded when their teams arrived to take part. Sportcal, 3rd Jan 2008

* Ralf Schumacher appears to accept the fact that he will be left out in the cold this coming F1 season and the 32 year-old racer is already is taking steps toward his future leaving F1 with six victories out of his 108 starts. With only two teams left to confirm their F1 driver lineups for this coming season, Schumacher looks to be left without a ride. He is said to prefer remaining in Europe, possibly with the hotly-contested German touring car championship (DTM). At this time it is unclear when he might race, if he even decides to continue in motor sports in 2008. Plus there is the possible return to F1 in 2009. Motorsport.com, 2nd Jan 2008

* Emirates TV channel Dubai Sports has secured exclusive live TV coverage of the Dubai Marathon, claimed to be the "world's richest running event". Scheduled for January 18 the Dubai event will see Ethiopian marathon legend and double Olympic champion Haile Gebrselassie attempt to break his own world record. Dubai Sports has taken a five-year contract to cover the marathon which promises $1m in prize money to the winner, plus another $1m if the world record is broken. Rapid TV News, 3rd Jan 2007

* ESPN STAR Sports has acquired mobile rights of the ongoing India’s tour of Australia featuring 4 Test matches, 15 ODIs & a Twenty20 International from Cricket Australia. This is the first time that a comprehensive range of mobile content from cricket played in Australia will be made available on Mobile to the cricket loving fans of the country. The mobile packages will be exclusively available on mobileESPN and STAR Sports Mobile. Under the terms of the agreement with Cricket Australia, mobileESPN and STAR Sports Mobile will provide a multitude of video clips, wall papers, animations as mobile downloads. Sports e-Media, Sportcal, Worldscreen, 3rd Jan 2008

* Guangdong Telecom says it will invest another RMB5 billion (E0.46bn) to expand IPTV services. Guangdong began to deploy IPTV in the second half of 2004. It later tested the IPTV system of mainstream manufacturers in early 2005 and arranged a bidding for the IPTV programme at the end of 2005, which benefited about 100,000 users. At present, IPTV is the main source of income for Guangdong Telecom. Advanced Television, 2nd Jan 2008

* The telecom watchdog of the United Arab Emirates (UAE) will issue a licence for the mobile digital TV service in the country by the middle of 2008. The UAE Telecommunication Regulatory Authority (TRA) have appointed a consultant to advise it on licensing issues and procedures, according to local newspapers. TRA is to issue the licence to the operator by the middle of 2008, TRA Director General Mohammed Al Ghanem said. Currently, there are two mobile telecom operators in the UAE - Etisalat and Du. Advanced Television, 2nd Jan 2008

* India's telecoms regulator has recommended auctioning licences for broadcasting mobile television services. Foreign investment in a provider will be allowed up to 74%, but no more than 20% must be owned by broadcasting companies, the Telecom Regulatory Authority of India said in its draft recommendations. Operators that win licences will automatically be allotted at least 8 megahertz of spectrum, and will have to share infrastructure with other providers. Advanced Television, 2nd Jan 2008

* Myanmar's military government dramatically raised the annual fee for TV satellite dishes, an apparent move to block foreign news channels that carry global criticism of its recent crackdown on pro-democracy protests. The license fee has rocketed from US$5 to US$800 — an unaffordable sum to most people in Myanmar equivalent to about three times the annual salary of a public school teacher. The new fee was imposed without warning and discovered by residents who went to renew their licenses. Most middle class homes and shops use satellite dishes to tune into foreign sports events, soap operas and to circumvent the junta's tightly controlled state media. Variety Asia, 3rd Jan 2007

* French rugby’s Ligue Nationale de Rugby (LNR) tendered the rights for the final of its Top 14 club competition. Pay-broadcaster Canal Plus holds the league’s TV rights in a deal that runs until 2011, but under French listed events law the final must also be broadcast on a free-to-air channel. Free-to-air broadcasters have until January 21 to place bids for non-exclusive rights for the final for the 2007-08 to 2010-11 finals. Sports Business, 3rd Jan 2008

* The Egyptian soccer association is reported to be considering an offer of LE50 million ($9.1 million) from an Arab television network for the exclusive rights to top-tier domestic league matches. An official at the Egyptian Football Association told FilGoal.com: ‘The offer may prompt us to halt our current policy of selling the league’s satellite rights to several TV networks. The latest offer is four times more than what the current broadcasters give us.’ It is thought that a deal with the high bidder will please smaller clubs, who often struggle to make ends meet, but not larger outfits, who want to sell rights themselves. At present, coverage of the Egyptian league is shared by broadcasters Arab Radio and Television (ART), Dream TV, Orbit Network and Modern TV, each of which pay LE3 million per season for the privilege. Sportcal, 3rd Jan 2008