DG FastChannel, Inc. Q4 2008 Earnings Call Transcript

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2009-02-12 13:53:09.0

Tags: Advertising Agency, Advertisement, Brand, Call Transcript, Earnings, DG FastChannel Inc., HD, Branding, Marketing, Seeking Alpha

Question-and-Answer Session

Operator

Thank you, gentlemen. The first question will come from Richard Fetyko with MCF.

Richard Fetyko - MCF

Good morning, guys. Congrats on great results. I’m curious about the HD penetration as a percentage of volume deliveries. I think you mentioned those were about 3% in September. Please give us an update on that and what are you doing to drive increase usage by ad agencies of your HD services from here on?

Scott Ginsburg

Good question. The fourth quarter, it was an increasing number over each quarter of 2008 as it will be in 2009. At towards the end of the year, we had 3% for the full year was something lower than that, of all advertising moving in HD.

As far as the so called issue driving the HD advertising forward, we participate in that. We become an essential and important part of every advertising agency, and Chief Marketing Officers’ plans on how their brands will be presented over the TVs ad and with that we are a resource, an important resource in helping them to get additional work flows put in order to say that we haven't influenced over when they will actually begin using HD would not be correct.

But we are influential and when they do make that decision, we can help them execute their plan. We have seen a limited number of brands doing HD in 2007 -- in 2006. In 2007 it grew. In 2008 almost 1500 brands were using HD at one-time or another.

That will grow and continue to grow because it’s self-evident at least to us, I don’t know, if it’s self-evident everybody else. That once this digital switchover is made the most important brand of the world, have remained the most important brand for the world because of their marketing and excellent marketing efforts and the way they present themselves to the public.

The plans we do know about, on behalf of the advertiser and advertising agencies are highly confidential. So we couldn’t speak to any one brand or any specific plan nor would we. But we feel overall with the information we do have, the material information we have then, it is treated highly confidentially.

We believe that this will just continue to grow and as I mentioned earlier, the focus of the President of the United States, the Congress of the United States, the Federal Communication Commission on this issue has no negative impact on this company at all. We consider it a positive impact that every man, women and child is being focused on in the United States to maintain their connection with their TV set and a digital connection with their TV set.

 

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