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Technology Stocks : Gemstar Intl (GMST)
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To: tinkershaw who wrote (6366)3/14/2004 12:36:18 PM
From: 100cfm   of 6516
 
What the heck is holding back Guide advertising?

Several things were and are holding it back. The main thing in my opinion is that the IPG is what you call "new media".
And advertising agencies are loath to get their prime clients involved with new media. Due to the fact that if it doesn't workout they could lose a client. It's sort of like the old saying that no manger ever got fired for buying IBM equipment. It's like that in advertising, no account exec is gonna get fired for putting a client on CBS or a billboard on I95. Any new type of media needs to prove itself before advertisers and agencies will embrace it enmass. Therefore the need for some type of Nielson rating. Billboards, signs on park benches and the back of buses have no verfiable feedback but they are established means of advertising, in other words they have been accepted by the advertising community. Whereas the IPG has not been, yet.

The other main point is what management themselves have been saying, that the IPG footprint wasn't large enough.
National advertisers have no intrest in any platform no matter how great it is unless it has a certain level of households/veiwers. With the new deals just signed GMST should easily have more than enough households to put that issue to bed.

Great discussion going on, after the dearth of posts on this board it's great to see some action.
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