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The Austin, Texas, market is growing at breakneck speed, buoyed by expansion among the many technology-focused companies located in the area. Dell Computer Corp., headquartered just outside the state capital's city limits in Round Rock, is the market's second-largest employer, with just under 20,000 employees. Round Rock has sprouted so quickly that it now has its own minor-league baseball team, the Houston Astros' farm club the Express, which on April 16 will open its new stadium, the Dell Diamond.
The many venture capital-financed Internet startups in the Austin area have had a significant impact on the local advertising business, as they spend freely to build their brand identity and name recognition. Dot.com business was one of the top five advertising categories in the market in the fourth quarter of 1999.
"The dot.com ad business has exploded," says Melissa Black, a media planner and buyer with Makos Advertising, Marketing & Design in Austin. "The market is extremely saturated."
The current squeeze on inventory, particularly in broadcast and cable TV and radio, means advertisers have to plan ahead and get in early, or risk getting left out in the cold. Buyers in Austin say that May is already sold out in many local media and June is filling up fast.
With high-tech businesses popping up left and right, Austin's infrastructure is starting to get a bit taxed. Construction crews are ubiquitous on major roadways in the area as engineers try to redesign them to better meet the region's increasing traffic loads. Community leaders have been discussing the possibility of adding a light-rail system to ease the gridlock. The significant increase in business travel and tourism to the region triggered the building of a new airport last year on the east side of the city, with twice as many gates as the old terminal. Expansion plans for the new airport are already on the drawing board.
Austin boasted a low 2.6 percent unemployment rate in 1998. The city is also enjoying solid growth downtown, where many commercial buildings are being renovated and converted into upscale condos and townhouses. CSC Financial, a software company, is preparing to put up an office building spanning three city blocks-it will bring about 3,500 additional workers downtown. Intel plans to significantly expand its...