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Show The Salt Lake Tribune BUSINESS Sunday, May30, 1999 Consumers Hard Pressed Ist-Time Buyers Advertisers following them onthebeach, in the restroom THE ASSOCIATED PRESS @ Continued from E-1 ; tory of HUD homes has remained) companies are risking a backlash Sandyoutlines of soft drink byputting ads where they have the automatic teller gets your Ads in the sand showed up last summer along the New Jersey shore at Seaside Heights and are making a return engagement this bottles cover the beach from the boardwalk to the water’s edge Snippets from a newmovie flash on the cash-machinescreen while money. A poster pitches skin cream from the inner door of the bath- room stall It's getting harder to avoid advertising. The refuges from commercialism are disappearing. “I don’t know if anything is sacred anymore,” said Mike Swanson, who oversees client ad placements for the Minneapolis-based advertising agency Carmichael Lynch. “Everybody is looking for a way to stand out.”” Advertisers are finding it hard- er and more expensiveto be noticed in traditional media. Prime- not normally been found. low, and only a couple of ne homes becameavailable for sala each month. But that is changing. The Salt Lake City office now has 150 homesavailable forsale, with sev- year. Adman Patrick Dori designed a eral more being added each week. rubber advertising mat that can “Tt [the number of foreclo- be attached to a roller and leave sures] seems to be growing and accelerating, and we'retrying to figure out why,” Bell said. For buyers, that means a greater selection of homes — not only multiple impressions in the sand behind the tractor that rakes the beach every morning. On the average beach, about 5,000 mini-billboards measuring in Utah butin otherstatesas well. To help sell these homes, HUD, 12-by-4-feet are sculpted into the sand beforethe first beach-goers arrive each day. ee Michael Treola/The Associated Press Doricalls them environmental- Patrick Dori showsoff the ads herolled out at Seaside Heights, N.J. Dori invented a weighted ly-safe billboards because they disappear without a trace as the day wearson. His company, Beach’n Bill- machine with interchangeable rubberstencils that imprint advertisements in the sand. recently revamped the way it markets its properties. That includes hiring a Dallas-based realestate company, First Preston, to market its propertiesin 13 states, including Utah. HUD homesforthe first time time commercials can cost up to $500,000 for 30 seconds even boards Inc. of East Rutherford, N.J.,charges$25,000amonth per action for running a commercial, EDS chargesa nickel per trans- rants, bars, concertarenas, sports facilities and nightclubs. But Theater Radio Networkof Clearwater, Fla., found a gap and will be marketed by real-estate agents and be part ofthe Wasatch ove though cable networks, videos and the Internet have been drawing viewers away from the broadcast networks. beach for the ads. It paysa fee to the town. A cash machine takes about 15 seconds after getting your in- which amounts to about $150 a month for an average cash machine Mare Weinstock, marketing di- Insite co-founder David Dorfman said the 2-year-old company has about 4,000 boards in 1,000 Jocations in 20 markets around filled it. It developed an audio Program with ads from national companies that movie theaters Un from the end of one movie to Front Multiple Listing Service, which lists homes for sale by Real« iors, Information and list of prope five Pre fin his go ome a s just HireSe TTTenEaE ie “"°"*: available bycalling FirstPreston is2 Moviemakers, auto companies and cable television channels have been among the advertisers on about 1,000 ATM screens that Electronic Data Systems operates EDS machines in San Diego and reaped 5 percent to 7 percent moreat the boxoffice there than in othercities. Young adults are notoriously 2. have included Noxzema skincare products, Sony MusicandSaj,7) cigarettes “7 = gi ee Sometimes you are surprised of U.S. theaters. Advertisers pay $230,000. monthto have their ad played at 15-minuteintervals in all of the theaters. Web site at www.firstpreston-com. Bell of HUD’sSalt LakeCity of fice said homesstill will be sold a8 is, but that the federal agency i jok du Ne Ne} an So companies are steering part of their advertising spending into new approaches. The choices seem boundless — ad spaceis being sold on videocases, parking lottickets, golf scorecards, deliverytrucks, gas pumps and municipal garbage cans. structionsto deliver your money. rightforacommercial. rector for Fox Searchlight Pic- = eee eee So the country. Insite charges $200 per frame per month, andsaidits advertis- the start of the next round of pre- The systemis playing ina third erties for sale in Utah cities is 4t (800)260-3760 or visiting their HK ‘ But thatis irritating people who in 7-Eleven stores in San Diego, difficult to reach through tradi- With a pitch even though you Commercial Alert’s Ruskin said discontinuing the practice ofof resent being made targets for sales pitches at every opportuni- Los Angeles, Chicago and New York tional media in part because they go out rather than sit at home Should have been expecting it Movie theaters have most of the advertisers ought to look for signs of a backlash even as they tally fering cash allowances to buyers of homes that need substantial re ont gar watching TV. commercial ty. Some banks are also showing how manypeople see their ads. pairs. In the past, buyers in many yee Insite Advertising of New York from the movie posters in the lob- “Advertisers know no bounds. cases could negotiate a cash ine mo advertising watchdog organiza- tive in Plano, Texas, said the 15- is one of about 30 companies pur- byto the commercials and movie They want to invade everylittle centive to cover partof the cost of improving the condition of their me tion Commercial Alert. second ads make it feel like less boards in bathrooms of restau- the feature starts. can find,” he said property. sist He said commercials on their machines suing these freewheelers via ad bases covered — sig _- Dale Dentlinger, an EDSexecu- “People wantto beleft alone,” said Gary Ruskin, who heads the previewsrunonthe screen before corner andsacred space that they Instead, he said, nowit will be adt YWeSU t Pi k U wo FICKS UP The Slack for Ti : : he Big Birds @ Continued from E-1 the relationship.” Skywest stock trades around ly possible totheir hubs—andfor The smaller aircraft enable pairs that will be needed to Be ie solely as a United Express carrier in that market. “They are replacing flights that were break-even at best with flights that are profitable,’ Becker said. | P $24 a share — up nearlysixfold from its low in early 1998. Butthe stock also is down about 40 percent from its 52-week high of $40.56. The uncertainty about good reason. Whenregional jets have replaced turboprops in areas around the country, the number of passengershas increased. Regional jets cost about onethird more to operate. And as re- Skywest and Delta to offer more connecting flights. Where Delta offered two daily flights fromIdaho Falls on a large jet, Skywest can offer four on a smaller jet. Skywest is looking at other performed — into account. Ogden Realtor Gage Froe said home buyers shouldn't Too at HUD homesthinking they are the only way to get a great deal, “It’s a good place [to find a liv Skywest is paid a set amount whether the plane is empty or ended when the two companies signed a newcontract last month. unsureits markets in the sparsely populated Intermountain West Colo,, that might be able to support jet service. And given many place,” he said. “There are other properties out there that sellers may need to discount for whatey- for ambivalencehas passed. The company ordered 25 re- with a propeller, it knows the regional jets will be in demand in er reason.” Sex she five for Delta — in January. And atieyi areail, going ¢o want Theregional airline now operates Underits contract with United, line Skywest’s relationship with Delta full. The contract limits the up- And theyare doing a terrific job in managing it.” said Jordan side potential, but guarantees predictable revenues — a prized Sherman\cainvanalysutor Morgan assetin thecyclical airline indus- Stanley Dean Witter Skywest also is in the enviable erations as a Unithave : ; ‘ position of having relationships with — United Della. twoairlines Tha regions reand gional arene United'sairline hut feeds passengers to United's hubs on Per aye ences BU MDAnGIRCO ECT landandSeattle g huge change in growth It's a ot nities” Sk d at theSalt Lake City International Airport Although it's hard to picture life getting much. better for Segwericie ui aah By comparison, it has 226 flights the West Coast and toDelta's hub Rrre veaionalialrinie picked up routes whenDelta realigned its system to focus on longer flights froinits Salt Lake'City hub, And Skywest stands to gain additional routes fromDelta incoming years as the regional airline adds more sinall jets toite fleet This meansUtahns could be fly. ing on Skywest instead of Delta to matecities And thev are likely te aaa oy jetsin-in altel TheStan United contract. onstruck October 1997, accounts for much of the change in Skywest’s for tunes. Skywest replaced a unit of Mesa Air GroupInc, which was fired by United for poor perfor: mance. The opportunity enabled Skywest to align itself with the dominant airline on the West Further, Skywest's affiliation with Delta will bring opportunities of its own. Delta is restructur- cently as a year ago, Skywest was could support regional jets. That ingits operationsat its Salt Lake gional jets — 20 for United and flights “That it ordered 10 more for Delta on+ 1 30 aft h City hub, focusing on longer freed nab freed) Up Opportunies (Or anaes) Seoof cell mell, Skywest’seseic. director mar: keting In the tiveat Skywest eres PE ities,” Shermansai Skywest now has 686 cau daily : flights from 38 cities for United. to fly as many jets as economical- markets served by turboprops. them,’ 6Gemmell said ee All this bodes well for the airline startedin 1972 flyFae between es toLakeCity St.¢, George and Salt z oa s hub, serving such diverse markets as Helena, Mont., and San Fran- man expects earnings to 8 grow 20 a Percent a year incoming years — 3 growth rate that would double Wall Street, at least, remains year, in its 20 2 fiscal year and, tinistio Becker and Sherma 21 inits 2003 fiscal 3year DEUS Cor d Skyweststock. eceees chu Suen : o SherTheairline nowhas 11 regional eCOmmend Sky Beene _Calif.; Jackson, Wyo.; Calgary, Al- jets basedat its Salt Lake City Skywest is paid a set amount by Delta toflyin four of those mar- cisco In some markets, the jets are {fm26 cities for Delta All this took place in about a Se. ao berta; and Vancouver, British Columbia handling of the expansion ‘They did a terrific job,” Sher2" said FOF @ regional airline to feed Pa8Sengers to two majorairlines is unusual. It led to speculation kets — Fresno, Idaho Falls, Omaha and Vancouver. The arrangement is similar to Skywest's deal with United Abad market for Deltacanbea great market for Skywest. And usedtofill gaps in Delta’s sched_ule. Skywest offers a 3 p.m. flight to Boise, Idaho, for instance, that supplements Delta's morning and evening flights on larger jets, Moreflights improve Delta’scom- splaces aa S expansion on the t Coast is expected to continue. The airline could pick up more routes from Delta. And it is] likely toattract more passengers at its Salt LakeCity hub. Skywest 22d Delta denied the rumors. In addition, Delta owns about 13 more flights as Skywest adds moreregional jetstoits fleet Those jets could spark Wewant to keepthe traffic moving on Delta via Salt Lake City,” Gemmell said The regional airline may not have another year quitelike the past one. But it apparently stands Falls, Skywest’s 50-seat jets have recent success Year and a half. And Skywest ap Parently gets high marks for its ‘hat Delta might replace Skywest Sherman expects Delta to drop next burst of growth Skywest’s Delta and United want Skywest — an invest- of Skywest Fercentworth ent about $74 million at Skywest's current stock price Still, the uncertainty was sus pected of depressing Skywest’s stock price It was oneof the first things people asked about,” Sherman said. “There was a good dealof concernin the marketplaceabout petitive position in a market Skywest had beenfeeding pas ket, But given United's strength in the Los Angeles market, it was a losing proposition They basically were feeding PER MONTH! 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His optimism probably isn't dition of the home — and the re« Inother markets, such as Idaho 5 good chance of building on its ene Sealt LakeGribune had 118 daily flights to that mar * people's wariness of anything n the past year, Skywest replaced Delta on a routes to Omaha, , Neb.; Idaho Falls, Idaho; Fresno, sengers to Delta in Los Angeles ee yeee markets, such as Grand Junction, Ser after signing the new muiconiact Skywest is scheduled totakedeliveryof four jets in its 2001 fiscal veacil0 2002fiscal year and Coast STATE OF UTAH PPS) ‘OR SPACE replaced Delta’s larger aircraft. tra geles that fed passengers to Delta. ee Sk a up to buyers to fund the repairs and makea bid that takes the com Sere io To Escape Ads These Days Rew HUD Deals Are Great for 56K V.90 Service FREE Technical Support FREE Online Education Classes FREE Software Business Web Hosting Starting at $15.95 Per Month! yoy] TRaNsW'EST t Union EN) keerty Ma his on obj ing sur ' tie! 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