FOBM: Q&A with Aegis Media CEO Sarah Fay
At the Future of Business Media Conference, Sarah Fay, CEO of Aegis Media just wrapped up a discussion with Fortune Managing Editor Andy Serwer. The Q&A included some interesting thoughts on where we are in media right now and the future of new technologies in the media industry. Key points:
On the current economic situation:
I think there is an anticipation of it getting worse. We’re reaching a critical point… the predictions are coming down slightly but the bottom is not falling out of the media. There’s a shift to digital media… [where] spending is still up fairly significantly.
What’s your Google strategy?:
Google is a huge partner of ours in search…we actually work with Google collaboratively to get sites high in their rankings, we work with Google TV. We believe that YouTube is a force to be reconnected with…when it comes to search they are it for sure. Search is really important, will continue to grow for the next decade. Google TV is interesting but we’re seeing that there are a number of companies going after that model, right now there isn’t a large enough footprint, but you can add efficiency so it’s a really good place to get your feet wet.
On the Yahoo/Google transaction
“I’m not a big fan” I actually was a big fan of Microsoft buying Yahoo, I thought those two would give Google a run for its money, I like competition. The idea of the biggest search player and the second biggest search player getting together to join forces doesn’t sound so good to me.
On TV Advertising:
Areas of TV that are softening up is primarily the long tail, cable, we have not seen network come down in demand or maybe just a little bit. But we are seeing the same dynamic year after year with the networks, that is declining ratings but increasing CPMs because it’s prestige pricing, beachfront property…There is a whole long tail of TV that is very soft and has been soft on a regular basis and we are seeing technologies like GoogleTV like Project Canoe, and I think that we’re going to get to a point where we get a little more comfortable buying the digital aspect of TV and there’s a lot more efficiency than there was before.
On Hulu:
Hulu fits in to a buy from a broadband standpoint, it’s pretty regularly a part of every schedule, it’s different from TV; It’s bought differently, it’s measured differently, but we’re very bullish. We like that you can’t skip the advertising, can get very targeted, and it creates a very high impact relative to other media.
On declining programming budgets:
Certainly the networks are happy about the popularity of reality TV because it cost less… We also may see an increase in quality and more content going to the HBO model. There’s a willingness to pay great money for good content.
On user-generated & viral advertising:
Viral is huge, we’re looking to incorporate communities and the voice of the consumer in almost everything we do. Getting consumers involved in campaigns, getting consumers to create for you or participate with the brand is where you will get an extension to the media budget. If you can get the consumer talking for your brand there’s a new kind of authenticity and creativity that comes along with that, and a lasting impact on brand equity.
Tags: Aegis Media, Sarah Fay