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The Tickle File is ftm's daily column of media news, complimenting the feature articles on major media issues. Tickle File items point out media happenings, from the oh-so serious to the not-so serious, that should not escape notice...in a shorter, more informal format.

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Week of June 22, 2015

More ads coming to that phone in your pocket
reach out and touch

Very quickly television has become two separate realms; IP and non-IP delivered. For a couple of years TV’s faced the linear/non-linear divide. Before that, traditional and new. More than just the language has changed.

To help celebrate the Cannes advertising festival, media buyer ZenithOptimedia released this week a forecast of ad spending in 12 major countries. The results all point the same direction: advertising is filling up the internet space as quickly as it can. By 2017, they predict, internet advertising globally will lag TV by a mere 4%. After that, TV advertising as we’ve known it will slide to second place.

“The internet is quickly establishing itself as the dominant advertising medium, and on current trends will overtake television by the end of the decade," said ZenithOptimedia CEO Steve King in a statement. “The spread of internet devices and new advertising technology will give advertisers new opportunities to communicate with and learn from consumers, and to do so more effectively than ever before.” Ah, yes; media buyers are addicted to the data only internet and mobile technologies can provide. (See more about ad spending here)

Mobile advertising, of course, is every ad person’s dream. By 2017 ad spending on smartphones and such, predicts ZO, will represent 70% of global ad spending growth, to 12.9% of ad spending from 5.1% in 2014. Both ZO and Magna Global (Interpublic) this week reduced global ad spending forecasts for this year due to a lack of big-draw events.

“2015 is a tipping point in the long-term shift from traditional to digital media,” said Magna Global lead forecaster Vincent Letang, quoted by MediaPost (June 22). “Last year’s global advertising growth was the combination of digital media growing while traditional media revenues were essentially flat. This year, traditional media ad revenues will decrease globally for the first time since the 2008-2009 recession, as the low growth of television and out-of-home ad sales will no longer offset the fast decline of print, challenged by a diversified family of digital media categories Beyond the slowdown caused by the absence of global events in 2015, we believe digital media has reached a stage where it starts to compete more directly with traditional TV budgets.”

The public still watches TV for news and still not happy with it
very divided

Public attitudes toward news media have declined in recent years - and across the globe. One study after another reports less trust and confidence than, well, once upon a time. It is, certainly, another digital dividend.

A public opinion study for German weekly Die Zeit (June 24) conducted by researcher Infratest shows a deep division between those with confidence in news media’s output and those troubled by it all. Fifty-three percent of those surveyed reported “little trust” in political reporting, the specific question, with 40% reporting “great” or “very great” confidence and 7% dismissing the news media - “no confidence” - entirely. A quarter of those surveyed said their confidence in news coverage had declined in recent years. (See more about media in Germany here)

In general, the German public turns first to television for political reporting, then the print media, then radio and, lastly, the Web. Eight million Germans each day watch the public TV network’s Tagesschau news programs. While all age groups report “little trust” Germans between 45 and 59 years are least dissatisfied (51%). (See more about TV news here)

As usual, the report concentrates on the negative. More than a quarter (27%) of the respondents find “deliberate misinformation” in news coverage. One in five find “one-sidedness” and 15% complain about mistakes.

Tire-kickers continue to walk away from network, more pop-up
complex partnership

Publisher Gruppo Espresso has become the latest potential buyer to walk away from Gruppo Finelco, owner of Italian nation radio channels Radio 105, Radio Monte Carlo and Virgin Radio Italia, reports news agency ANSA (June 23). Last year RCS Media Group, holder of a 44.5% stake in Finelco, indicated its interest in exiting the minority held asset, thus forcing a run on the entire company. Gruppo Finelco is principally owned by the Hazan family.

At the request of the RCS Media Group board, PriceWaterhouseCoopers (PwC) valued Gruppo Finelco at about €100 million with €60 million equity and €40 million debt, reported Il Sole 24 Ore (June 14). Negotiations with private equity firm Clessidra ended earlier in June as RCS Media Group considered its bid too low. Reportedly, UK broadcaster Global Radio and Spanish media house Atresmedia looked at the file and took a pass. The 2007 partnership agreement between RCS Media Group and the Hazan family contains put and call options on share sales considered complex. (See more about media in Italy here)

Attention now turns to RDS (Radio Dimensione Suono) owner Eduardo Montefusco and private equity firm Palladio. RDS is a legacy Italian pop music network. Palladio Finanziaria currently holds no media investments.

Tabloid could be traded, web traffic in question, bankers consulted
shuffling different cards

Media watchers are reaching for metaphor as big media houses race to shift strategic assets. And rumors of such always attract attention.

A rumor floated this week that big media house Schibsted “is considering” selling Swedish tabloid Aftonbladet to big media house Bonnier, officially dismissed by all concerned, led Swedish media watcher Mikael Marklund at medievarlend.se (June 22) to offer “where there’s smoke, there’s fire.” Schibsted’s Aftonbladt has been in a raging battle with Bonnier’s Expressen in the Swedish tabloid market. The rumor “hit like a bomb,” said other Swedish media watchers. (See more on media in Sweden here)

Schibsted is a major publisher in Norway and Sweden with investments stretching around the world. It has also moved rather decisively into digital media, particularly online classified ad portals. Shares are traded on the Oslo Stock Exchange, about 32% held by major international institutional investors. The company exited Spanish free-sheet 20Minutos earlier this month.

Privately held Bonnier, based in Stockholm, is present across Scandinavia with newspapers, magazines, books and television. The company acquired a significant presence in the United States in 2007 taking a slew of magazine titles off-loaded by Time Warner. Eric Zinczenko, part of the Time Warner team, was named US subsidiary CEO earlier this month, the third in as many years.

Aftonbladet’s print edition has been struggling from declines in ad revenues for tabloids in Sweden. But its online edition remains a traffic traffic magnet. Separating one from the other would require considerable thought. To do the deal Bonnier, reported Dagens Næringsliv (June 22), has contacted an investment bank.

Norwegian publisher Amedia exited three local newspapers, reported Dagens Næringsliv (June 23), acquired by Polaris Media, major shareholder in which is Schibsted. Amedia has been acquiring local Norwegian FM radio stations that are exempt from FM shut-off rules. (See more about media in Norway here)

Noxious political ad lost, found, hopefully forgotten
protected speech

Very testy are politicians unable to beat the electorate with their campaign advertising. Given to hysterics, it seems, are those touting the most banal messages. So it was this past weekend with notorious anti-everybody Dutch politician Geert Wilders.

“Sabotage by the NOS,” railed Mr. Wilders on Twitter when his Freedom Party’s (PVV) political announcement scheduled for midday Saturday on main public TV news channel NOS was replaced with an older ad, not the one featuring cartoons caricaturing the Prophet Muhammad. To comfort the expectant Dutch Islamaphobe viewers he quickly posted the video to YouTube. The ad had been scheduled for broadcast three times during the Muslim holy month of Ramadan. How very tasteful. Mr. Wilders had also planned to “exhibit” his cartoons on the grounds of the Dutch parliament during Ramadan but that request was denied. (See more about elections and media here)

The building conspiracy theory was quickly laid to rest. First, NOS doesn’t schedule ads, political or otherwise. That chore lies with NPO, the umbrella public broadcasting association. They, in turn, never received the political film in question from its producer, Infostrada. Mr. Wilders was forced to admit a “misunderstanding.” By Monday morning the video had been viewed 85 thousand times on YouTube, reported telegraag.nl (June 22). (See more about media in the Netherlands here)

Political advertising in the Netherlands is protected speech under the Dutch Media Act (Article 2), only the political parties are responsible for the content. Political parties are also not allowed to “influence” scheduling of political ads. The noxious PVV ad will air on Wednesday and again in July.

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