Media & Marketing : The bare knuckle competition between the two powerful newspaper groups, Independent News & Media and Associated Newspapers, owner of Ireland On Sunday, hasn't lost its intensity, writes Emmet Oliver.
Last week the Sunday Independent seemed to steal some of Ireland On Sunday's marketing clothes by giving away a free 10-track CD, Summer Breeze.
While the artists included, Sneaker Pimps and Toploader, may not be household names, the paper is hoping the CD's inclusion will boost sales as the six-month period for ABC circulation comes to an end. The apparent use of Ireland On Sunday's own tactics of CD giveaways drew this reaction from Mr John Thompson, chief executive of Ireland On Sunday and, ironically, a former executive from Middle Abbey Street.
"We note that the Sunday Independent has now learned from our example of giving readers more value. Ireland On Sunday introduced free CDs as a regular innovative marketing initiative for our readers. As imitation is the sincerest form of flattery, we welcome them to modern newspaper marketing techniques. But while it's great for their readers, they still have a long way to go. Our CDs are 20-track while theirs are only 10-track. In addition, CDs already issued by Ireland On Sunday have covered most of their tracks now being offered by them \," he said.
But the Independent group has defended the free CD move and has questioned the value of Ireland On Sunday's use of the CDs.
Mr Vincent Crowley, MD of Independent Newspapers, said: "The Sunday Independent is the number one choice for 1.1 million readers who buy it for what it is - a quality newspaper. Promotions support that, but the real driver is quality content and added value such as our new Sunday Life magazine and supplements. At Ireland On Sunday, free CDs play an inordinate role in the purchasing decision. As a result reader quality has to be a major issue for advertisers," he replied.
MCM Communications has estimated that the Sunday Independent move to give away a CD could add 15 per cent to sales.
McCann job cuts
McCann-Erickson Dublin has confirmed it has made four staff of 55 redundant. A further two on contract did not have their contracts renewed.
Ms Orlaith Blaney, managing director, McCann-Erickson, who took over the management of McCann in January, said that while the firm had had a successful first half this year, the market outlook for the second half looked softer. She said she considered it necessary to act now in order to protect the full-year results.
Dunphy warms up
A sponsor, Esat BT, has been secured and advertising agencies have been informed. The new Eamon Dunphy talk show is at last being put together for TV3. Today the station will announce further details and outline other developments at a briefing in Dublin. Based on figures released by RTÉ under the Freedom of Information Act the costs of such shows are among the highest in Irish television and TV3's largest shareholders, CanWest and Granada, will be keeping an eye on the bottom line.
It costs RTE €59,000 to produce one hour of the Late, Late Show and with the show generally running to two hours the total cost per programme is about 118,000. So over one month the cost is roughly 472,000.
While the sponsorship revenue from Renault helps absorb some of these costs, RTÉ has to rely on advertising revenue, and according to RTÉ sources it brings in about €231,000 per show. While ratings have dipped slightly under Pat Kenny, the programme still manages to draw an audience of 632,000, sometimes higher. Under broadcasting regulations the show can show a maximum of 15 minutes of ads per programme. Because TV3 is using an outside production firm costs are likely to be lower but lighting, camera crews and sound people do not come cheap, never mind research and production staff.
Ad spending down
The first three months of the year were not good for press advertising, according to the latest statistics from the National Newspapers of Ireland (NNI). In line with the global downturn due to Iraq and SARS, revenue at various newspaper titles fell by 10.3 per cent.
The 11 titles surveyed brought in 60.8 million in revenue between them, with 53 per cent of this coming via agencies and the rest via direct channels.
Irish Rail account
A decision is expected on the Irish Rail advertising account in about a fortnight. Four agencies have made the shortlist: AFA O'Meara, QMP D'Arcy, DDFH&B and Ogilvy and Mather. The account is believed to be worth about 1.5 million according to industry sources. AFA is the incumbent agency.
Euro RSCG change
Euro RSCG, one of Ireland's longest established advertising agencies, has announced that chairman and former chief executive, Mr Gerry Nagle, has resigned from all positions within the company. Mr Sean O'Meara has been appointed chairman with immediate effect. He is a former chief executive of Young Advertising. He was also chairman of Lopex Ireland between 1989 and 1999 and of Havas Ireland between 1999 and 2001.
