Media Agencies: The Oscar Goes to

Where the media dollars land, plus the buzz on Hollywood’s ad spending
Remember the 1997 Academy Awards? Small, independent films scored most of the prizes, prompting predictions that the day of the free-spending major-studio blockbuster was a wrap. Then along came this big boat and bigger iceberg, and the “new” conventional wisdom hit the continental shelf on its way to the briny deep.
Not even Hollywood moguls know what Titanic means to the future of filmmaking, but one thing never changes in show biz:
Marketing and advertising dollars always get spent. According to Competitive Media Reporting, the studios dropped nearly $1.6 billion on media in the first 11 months of ’97, a solid 5.7 percent increase from the same period during the previous year.
Disney’s Buena Vista led the way, spending $265 million, an increase of 36.8 percent. In the top 10, No. 8 Miramax Films had the largest rise in spending, 48.7 percent. No. 2 Warner Bros., No. 3 20th Century Fox, No. 4 Columbia Pictures, No. 5 Universal, No. 7 New Line Cinema and No. 9 TriStar Pictures all spent more last year. Only No. 6 Paramount (-27.1 percent) and No. 10 MGM/UA (-48.1 percent) cut back on media in ’97. -Mark Lang

THE BIG PICTURE: Where the media dollars land
Spot TV: 19.9%
Cable TV: 8.0%
Radio (Includes network and national spot radio): 3.5%
Syndicated TV: 3.4%
Network TV: 20.9%
Outdoor (Outdoor figures are Adweek and OAAA estimates): 1.6%
Newspapers (Includes national newspapers): 23.9%
Sunday Magazines: 1.4%
Magazines: 17.4%

THE BREAKDOWN: Ad spending in billions
NEWSPAPERS
Jan. – Nov. 97: $15.81
Jan. – Nov. 96: $13.89

NETWORK TV
Jan. – Nov. 97: $13.76
Jan. – Nov. 96: $13.38

SPOT TV
Jan. – Nov. 97: $13.13
Jan. – Nov. 96: $12.72

MAGAZINES
Jan. – Nov. 97: $11.45
Jan. – Nov. 96: $10.08

CABLE TV
Jan. – Nov. 97: $5.25
Jan. – Nov. 96: $4.32

SYNDICATED TV
Jan. – Nov. 97: $2.27
Jan. – Nov. 96: $2.12

RADIO
Jan. – Nov. 97: $2.34
Jan. – Nov. 96: $2.06

OUTDOOR
Jan. – Nov. 97: $1.90
Jan. – Nov. 96: $1.73

SUNDAY MAGS
Jan. – Nov. 97: $.94
Jan. – Nov. 96: $.85

MEDIA SPENDING: January through November
1997: $65.90 billion
1996: $60.45 billion

THE BIG SPENDERS
…….. Media Spending in billions Jan.- Nov. 1997 ……….. % change vs. 1996
1. Retail stores …………………………………. $6.49 ……….. +11.9
2. Cars & light trucks, factory sales & leasing …. $6.23 ……….. +16.0
3. Cars & light trucks, dealer sales & leasing ….. $4.92 ……….. +3.9
3. Department stores …………………………… $2.99 ……….. +22.6
5. Restaurants, hotel dining & nightclubs ……… $2.90 ……….. +5.9
6. Medicines & proprietary remedies ………….. $2.86 ……….. +10.8
7. Communications & public utilities ………….. $2.43 ……….. +10.7
8. Financial ……………………………………. $2.35 ……….. +23.7
9. Motion pictures …………………………….. $1.59 ……….. +5.7
10. Prepared & convenience foods ……………. $1.44 ……….. +2.6

STUDIO SPENDING
…….. Media Spending in billions Jan.- Nov. 1997 ……….. % change vs. 1996
Buena Vista ………………………… $265 million ……….. +36.8%
Warner Bros. ………………………. $187 million ……….. +4.1%
20th Century Fox ………………….. $158 million ……….. +12.9%
Columbia …………………………… $138 million ……….. +43.4%
Universal …………………………… $123 million ……….. +12.9%