Media, agencies expect advertising spending to be strong

Media advertising will remain strong in 2007, say those in the industry, even following an election year that spiked spending on advertising.

Across the economy in Reno things are doing very well, says Lawson Fox, general manager at KTVN Channel 2 TV.

"Our population is growing and that feeds into a strong demand," Fox says.

Total revenue at the station will be less, he acknowledges, because 2007 is not an election year, which accounted for a whopping 15 to 20 percent of revenue in 2006. Still, he expects to see single-digit increases in billing.

Jim Minor, president of Minor Advertising, echoes the optimism.

"I feel like we're going to have a great 2007," he says. "We're ahead of the curve as far as the country goes. We got spoiled for several years. Now it's catching up with itself as things have settled down. My clients are not cutting back; if anything, they're getting more aggressive due to the economy slowing."

How aggressive? "We expect to increase our billing 20 percent next year," he says. That advertising demand will come from real estate, automotive and retail.

However, he adds, marginal businesses won't do as well as they did in the easy markets of the past several years, and they will act as a drag on advertising revenues.

"You have to be a keen business player to survive when the market is slowing." Minor says.

And when the market is consolidating.

At DRGM, Inc., Chairman John Glenn recalls major clients of the past such as Nevada Bell that have been lost due to consolidation. Banks and insurance company accounts fell prey to the same trend.

Meanwhile, growth in resort destinations accounted for 80 percent of last year's growth. And, he expects another 50 percent from that sector next year.

But that's no reason to become complacent. Just within the last few months, the market has seen acquisition of smaller banks by larger banks, he notes. Ditto for telecommunications providers. And even for the destination resort industry.

Technology continues to be a driver on the media front as the new year unfolds.

Web sites and email marketing have stepped up beside radio, television and print as prime marketing venues.

Fuze Digital Solutions started three years ago with one employee, founder Bryan Landaburu, and zero billings. Each year since, he says the company has realized 100 percent year-over-year growth and expects to see the same in 2007.

The company does no radio, TV, PR or media buying. Rather, its focus is on strategic creative technologies, says Landaburu. Its work includes web development, search-engine strategy, e-mail marketing and mobile messaging. But each of those, he says, is just one piece of the marketing plan. "People will be required to integrate," he says. And, advertising will be held a lot more accountable.

Web-based marketing will continue to be plagued with the ongoing problems of click fraud (bogus clicks and robotic clicks), while spam filters and blocking play havoc even with pre-approved recipients. Landaburu sees legislation to prevent Web-based fraud getting stronger.

Mainstream print media took a beating last year as autos and telecoms retrenched, says John DiMambro, publisher of the Nevada Appeal in Carson City and general manager of the Sierra Nevada Media Group, seven newspapers in northern Nevada and the Lake Tahoe region.

He cites troubles at Ford and General Motors that caused the giant auto manufacturers to cut back their print campaigns. The slowing real estate market added to those woes.

"Classified hasn't been that great," says DiMambro, and the classifieds act as a snapshot of the economy as a whole. But in 2007, he says, "I think revenues will be better than this year. I don't think it could get worse."

But overall, troublesome trends remain on the national front.

"The war is driving a lack of confidence in where the economy is going to go," he says. Add to that the uncertainty over oil prices. Top it all off with a lack of confidence in the nation's leadership. Despite all that, he expects the Nevada economy to remain strong because the local market can overwhelm national trends.