Publishing / Media

Over the past year (2008-2009) marketing spend has contracted by approximately 15% as the decline in GDP has been amplified in companies' advertising budgets. The big question, however, is if/when the economy rebounds, how will media dollars be allocated? Multiple studies show that over the past 6 years marketing spend has been shifting from advertising to direct marketing and this trend is expected to continue. The key drivers of change include the strong demand for measurement and accountability, the desire to “own” the customer relationship through direct marketing, events, their own websites, and shifting dollars to in-store presence and promotion (i.e., at point of purchase). Additionally, advances in technology and infrastructure are democratizing consumers’ choice of media consumption – impacting what, where and how media content is consumed. These changes are supporting the public’s voracious appetite for media consumption, both increasing and fragmenting total consumption. Duane Street Capital is focused on businesses that are appropriately positioned and advantaged to capture these trends and their consequent shifts to the industry’s profit pools.