May 2009

The fight against erectile dysfunction ads

Erectile dysfunction drug manufacturers spent $313.4 million on measured media last year, according to TNS Media Intelligence. That's up from $237.2 million in 2007. Rep James Moran (D-VA) thinks that too much, um, exposure. He's introduced the Families for ED Advertising Decency Act (H.R. 2175), a bill that calls for the Federal Communications Commission to "treat as indecent" ads for erectile dysfunction cures between the hours of 6 am and 10 pm. This is his second attempt to get the ads run by Pfizer (Viagra), Lilly (Cialis) and GlaxoSmithKline (Levitra) toned down; in 2005, he claimed to have reached an agreement with representatives of the Pharmaceutical Research and Manufacturers of America. Four years later, the ads are ever more pervasive and, according to Rep Moran, more explicit. Broadcast advertising falls into a special class of discourse, insofar as we choose the programs we do and don't want to watch but have almost no control over the advertising we are exposed to. Therefore it seems the bar of probity must be at least a little higher than it is with programming.

Google CEO urges grads: 'Turn off your computer'

The head of the world's most popular search engine urged college graduates to step away from the virtual world and make human connections. Speaking at the University of Pennsylvania's commencement, Google chairman and CEO Eric Schmidt told about 6,000 graduates that they need to find out what is most important to them — by living analog for a while. "Turn off your computer. You're actually going to have to turn off your phone and discover all that is human around us," Schmidt said. "Nothing beats holding the hand of your grandchild as he walks his first steps." In the next 10 years, he predicted, technology will advance to the point where it will be possible to have 85 years worth of video on the equivalent of iPod. He also urged graduates not to lay out a rigid path for themselves. Rewards will gravitate to those who make mistakes and learn from them, Schmidt said.

Comcast's digital transition creates confusion

At the same time Comcast is telling customers they don't have to worry about broadcast television's 'digital transition,' the company is putting its customers through a different digital transition. By the end of the year, Comcast plans to move its basic cable channels, those from 35 to 85, from analog to digital signals for all of its customers in the Bay Area. To continue to get those channels, customers will need to have a television with a digital cable tuner — or a set-top box from Comcast. Comcast's ads assuring customers they didn't have to worry about the digital broadcast transition have never made note that they would soon need to deal with a digital cable transition. And while those commercials have been running widely on Comcast's networks for a year or so now, long before broadcasters were slated to shut off their analog signals, the company didn't start talking about its own transition until early February, about six weeks before it planned to start rolling it out. Even then, the marketing messages have tended to target customers in specific communities immediately before Comcast upgraded its system in those areas, rather than an areawide mass-marketing campaign.

Pay-TV Services Decline On Customer-Satisfaction Survey

Customer satisfaction with cable and satellite TV services dropped in the first quarter, even as overall U.S. consumer confidence was up in the period, according to a quarterly survey produced by the University of Michigan's business school. The American Customer Satisfaction Index climbed 0.4% in the first three months of the year, to 76 on a 100-point scale, the second straight quarterly improvement. However, the average score for pay-TV services fell 2%, to 63, compared with a year ago -- a score that puts cable and satellite TV behind airlines, hotels, wireless carriers, fixed-line phone services, energy utilities, and fast-food and full-service restaurants. "To be in the low 60s is not really a good place to be," Claes Fornell, founder of the ASCI and University of Michigan business professor, said in an interview. "I'm surprised the numbers aren't improving more."

The problem with Obama's antitrust plan

[Commentary] The Obama administration recently signaled a new, tougher antitrust policy. But the free market does not need more strict antitrust policy; it needs simple protection from fraud. The problem is that, in the 119 years that antitrust laws have existed, there is little empirical evidence that "vigorous enforcement" of them can promote the interests of consumers. And it was for the alleged benefit of the consumers that the laws were created. Indeed, antitrust history is riddled with silly theories and absurd cases that themselves have restricted and restrained free-market competition and hampered an efficient allocation of resources. A look at a few examples is reason to believe that President Obama's antitrust regulation won't be any different.

[Armentano is a research fellow of the Independent Institute.]

Without foreign coverage, we miss more than news

[Commentary] For years now, those of us working in and around international media have grown used to hearing about slashed foreign news budgets - an overseas bureau cut here, yet another correspondent post dropped there. The shrinking of news from the far reaches of the globe is a problem only partially addressed by a few financially constrained news agencies and a couple of hopeful media upstarts with untried business models or limited audiences. We do not need to wait for something more to hit us over the head to understand the implications of these changes. Two recent situations show us exactly what the world will be like when there are no regular foreign correspondents left. [Andrew Stroehlein is communications director of the International Crisis Group]

The FTC Takes On Paid Posts

This summer, the Federal trade Commission is expected to issue new advertising guidelines that will require bloggers to disclose when they're writing about a sponsor's product and voicing opinions that aren't their own. The new FTC guidelines say that blog authors should disclose when they're being compensated by an advertiser to discuss a product. It's the first revision of the FTC's guidelines for editorials and testimonials in ads since 1980, and regulators say it's needed in an era when consumers increasingly turn to blogs and other amateur Web sites for information about the goods and services they buy. The rules seek to clear up some of the tangled connections on Web sites that make it hard for readers to tell who's getting incentives from whom.

Politics Punctuate the Terrorism Debate

With two of the nation's more politically polarizing figures helping fuel the narrative, the US campaign against terrorism was the No. 1 story last week. Terrorism coverage accounted for 22% of the newshole from May 11-17, according to the Pew Research Center's Project for Excellence in Journalism. But the story was much bigger on the ideological, debate-oriented talk shows on radio and prime-time cable. Indeed, terrorism filled 50% of the airtime for the 13 talk shows studied by PEJ last week. Those discussions were doubtless driven in part by a political dynamic -- House Speaker Nancy Pelosi, who was embroiled in a controversy with the CIA over waterboarding briefings, and former Vice-President Dick Cheney, who continued his public campaign against Barack Obama's policies.

Democracy 2.0

Web site started by former senator Alan Cranston's son helps voters decide. The fledgling site, which debuted just before the fall election, reproduces sample ballots and provides users an easy way to see where advocacy groups, such as the California League of Conservation Voters or the California Chamber of Commerce or labor unions or the Howard Jarvis Taxpayers Association, stand on the sometimes complex issues put to voters. It offers a way for users to register and promote their own positions. It includes a section listing big contributors to campaigns.

Short(est) Stories

The most compelling tweets aren't the ones that merely answer "What are you doing?" but rather the ones that create ripples throughout the online community. They prompt discussion, self-reflection and philosophizing -- if of the dime-store variety.