http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3iaa83ea53feec6959f0dda603a090db53
Staples is putting a heavy focus on in-store marketing next year via a multiyear deal with consumer marketing company News America Marketing.Through the partnership, announced this month, News America will design coupon machines, shelf messaging, floor ads and sampling programs in more than 1,500 Staples stores nationwide. The in-store media will launch next month.
Wednesday, December 17, 2008
Monday, December 15, 2008
'Recession-Proof' P&G Aims to Renegotiate Media Spending Globally
"This media environment is a big 'O' opportunity for us, because we're the biggest advertiser in a lot of these countries, and we just go in and tear up the contract," Mr. Lafley said. "Whole industries have walked away [from media advertising]. So everything is getting renegotiated, and we want to be ahead of the curve."
http://adage.com/article?article_id=133189
http://adage.com/article?article_id=133189
Banks Use Free Pizzas and Humor to Calm Fears
According to data from TNS Media Intelligence, spending in the financial services category rose 2.5 percent in the third quarter compared with the same period of 2007. By comparison, ad spending in all categories that quarter fell 2 percent compared with the third quarter last year.
http://www.nytimes.com/2008/12/15/business/media/15adcol.html?_r=1
http://www.nytimes.com/2008/12/15/business/media/15adcol.html?_r=1
Publicis CEO takes long view in economic downturn
http://www.iht.com/articles/2008/12/14/business/ad15.php
As carmakers and other advertisers look for more efficient ways to get their messages across, Lévy said, the economic crisis will hasten the shift of advertising to the Internet and away from traditional media. By 2010, he said, 15 percent of global ad spending will be online.
Lévy has tried to prepare Publicis for this shift by beefing up its digital capabilities. Two years ago, the company acquired Digitas, a specialist in online marketing, for $1.3 billion. Publicis has also invested substantially in emerging markets, where ad spending has been growing more rapidly than in Western Europe, Japan or North America.
"This has recently become a higher risk strategy," the Morgan Stanley analysts wrote in a recent report on Publicis. Indeed, the notion that Internet ad spending will be less affected by the downturn, which has become something of a mantra in the industry, remains unproven. During the last downturn, Internet spending suffered the most. Emerging markets can also be volatile.
But Lévy said Publicis would stick with its approach. This month, the company acquired W&K Communications, an agency based in Beijing. In November, it announced the purchase of Tribal, a Brazilian agency specializing in digital advertising.
He said big, geographically diversified advertising companies like Publicis, alongside small, boutique agencies with a creative reputation, would fare better than midsize companies in the downturn.
"There will be casualties," he said, without naming names. "There will be consolidation. There will be companies that will not be in business when this crisis is over - advertisers, advertising agencies and media."
As carmakers and other advertisers look for more efficient ways to get their messages across, Lévy said, the economic crisis will hasten the shift of advertising to the Internet and away from traditional media. By 2010, he said, 15 percent of global ad spending will be online.
Lévy has tried to prepare Publicis for this shift by beefing up its digital capabilities. Two years ago, the company acquired Digitas, a specialist in online marketing, for $1.3 billion. Publicis has also invested substantially in emerging markets, where ad spending has been growing more rapidly than in Western Europe, Japan or North America.
"This has recently become a higher risk strategy," the Morgan Stanley analysts wrote in a recent report on Publicis. Indeed, the notion that Internet ad spending will be less affected by the downturn, which has become something of a mantra in the industry, remains unproven. During the last downturn, Internet spending suffered the most. Emerging markets can also be volatile.
But Lévy said Publicis would stick with its approach. This month, the company acquired W&K Communications, an agency based in Beijing. In November, it announced the purchase of Tribal, a Brazilian agency specializing in digital advertising.
He said big, geographically diversified advertising companies like Publicis, alongside small, boutique agencies with a creative reputation, would fare better than midsize companies in the downturn.
"There will be casualties," he said, without naming names. "There will be consolidation. There will be companies that will not be in business when this crisis is over - advertisers, advertising agencies and media."
Reed Elsevier takes RBI off the market
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081210/FREE/812109995/1078/newsletter011
Reed Elsevier announced Wednesday that it has terminated discussions with potential bidders for Reed Business Information, citing “the recent deterioration in macro-economic outlook and poor credit market conditions.”
Earlier this week, The Independent, a U.K. newspaper, reported that Reed Elsevier appeared close to reaching a deal to sell RBI to Bain Capital for the reduced price of $1 billion, which would have been slightly more than half what Reed Elsevier had hoped to get for the property.
Reed Elsevier announced Wednesday that it has terminated discussions with potential bidders for Reed Business Information, citing “the recent deterioration in macro-economic outlook and poor credit market conditions.”
Earlier this week, The Independent, a U.K. newspaper, reported that Reed Elsevier appeared close to reaching a deal to sell RBI to Bain Capital for the reduced price of $1 billion, which would have been slightly more than half what Reed Elsevier had hoped to get for the property.
EMarketer lowers U.S. social network ad spend estimate
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081212/FREE/812129993/1078/newsletter011
Even as use of social networking sites continues to increase, social network advertising has not kept pace, according to digital marketing research company eMarketer. The company has lowered its projections for U.S. social network ad spending to $1.2 billion this year, down from the $1.4 billion the company projected in May.
In addition, eMarketer estimated that 2009 will see $1.3 billion worth of ads placed on social networks instead of the $1.8 billion previously forecast. The company attributed the anticipated falloff to slower-than-expected revenue growth at MySpace as well as the recession.
EMarketer also revised its forecast for MySpace and Facebook, the two largest social networks. In its previous prediction, eMarketer said MySpace would bring in $755 million in U.S. ad spending in 2008, but that estimate has now dropped 22.5% to $585 million. At Facebook, U.S. advertisers will spend an estimated $210 million this year, a 20.8% drop from the earlier forecast of $265 million, eMarketer said.
Even as use of social networking sites continues to increase, social network advertising has not kept pace, according to digital marketing research company eMarketer. The company has lowered its projections for U.S. social network ad spending to $1.2 billion this year, down from the $1.4 billion the company projected in May.
In addition, eMarketer estimated that 2009 will see $1.3 billion worth of ads placed on social networks instead of the $1.8 billion previously forecast. The company attributed the anticipated falloff to slower-than-expected revenue growth at MySpace as well as the recession.
EMarketer also revised its forecast for MySpace and Facebook, the two largest social networks. In its previous prediction, eMarketer said MySpace would bring in $755 million in U.S. ad spending in 2008, but that estimate has now dropped 22.5% to $585 million. At Facebook, U.S. advertisers will spend an estimated $210 million this year, a 20.8% drop from the earlier forecast of $265 million, eMarketer said.
Tuesday, December 9, 2008
Top 100 Global Advertisers
http://adage.com/article?article_id=133044
P&G, Unilever, L'Oreal lead the pack. GM has dropped to #4.
http://adage.com/images/random/datacenter/2008/globalmarketing2008.pdf
P&G, Unilever, L'Oreal lead the pack. GM has dropped to #4.
http://adage.com/images/random/datacenter/2008/globalmarketing2008.pdf
Renegade To Operate as Independent Company
http://promomagazine.com/news/renegade-operate-company-1209/
Renegade, the New York-based guerrilla and digital agency, said it would now operate as an independent company, effective immediately.
The change in ownership is a result of Dentsu Holdings USA, Inc., selling its majority interest in the company to Renegade CEO and co-founder, Drew Neisser.
Renegade, the New York-based guerrilla and digital agency, said it would now operate as an independent company, effective immediately.
The change in ownership is a result of Dentsu Holdings USA, Inc., selling its majority interest in the company to Renegade CEO and co-founder, Drew Neisser.
Retailers Shrink Ad Spending During Holiday Sales Period
http://adage.com/article?article_id=133107
A study from BDO Seidman found that marketing and advertising spending at many of the nation's retailers have been cut during what is the most-important sales period of the year. While the results are certainly not shocking -- we are in a recession, after all -- a number of retailers, including Kohl's and JCPenney, had pledged to increase or maintain budgets as they look to attract wary consumers.
The study also found that print was the media of choice for retailers this holiday season. A full 57% of CMOs plan to spend a majority of their budget on print advertising, while 21% said they would focus on broadcast.
A study from BDO Seidman found that marketing and advertising spending at many of the nation's retailers have been cut during what is the most-important sales period of the year. While the results are certainly not shocking -- we are in a recession, after all -- a number of retailers, including Kohl's and JCPenney, had pledged to increase or maintain budgets as they look to attract wary consumers.
The study also found that print was the media of choice for retailers this holiday season. A full 57% of CMOs plan to spend a majority of their budget on print advertising, while 21% said they would focus on broadcast.
In-Store: An Island of Growth in a Sea of Recession
Retailers and manufacturers both intend to increase in-store ads by double digits, by recession. In-store for marketing tools alone is $21B. $550B is spent in marketing in-store including pricing, materials, etc. Media companies are largest participants in marketing in-store. Rupert Murdoch has 70% of business (News Corp)
http://adage.com/brightcove/lineup.php?lineup=1266084202
The Deloitte report
http://www.deloitte.com/dtt/article/0,1002,cid%253D226237,00.html
http://adage.com/brightcove/lineup.php?lineup=1266084202
The Deloitte report
http://www.deloitte.com/dtt/article/0,1002,cid%253D226237,00.html
IAB CEO Rants Against Audience-Measurement Complexity
Online and bricks-and-mortar marketing are being crippled by a "crisis of complexity," said Interactive Advertising Bureau chief Randall Rothenberg. Speaking at yesterday's Audience Measurement Leadership Forum at the Roosevelt Hotel, the IAB president-CEO went on a bit of a rant. He called on the industry to address the fact that audience-measurement concepts and techniques have become so incomprehensibly complicated that the majority of marketers still use guesswork to determine their annual media strategies.
http://adage.com/video/article?article_id=133112
http://adage.com/video/article?article_id=133112
Tuesday, December 2, 2008
Post-Recession: Big Rebound for Digital, Internet
If history is a guide, digital out-of-home advertising will return to percentage growth rates in the high double digits--around 30% to 40% per year--while the Internet will rebound with more modest 10% to 12% growth rates. This prediction is based on the past performance of other new media during and after previous recessions.
http://www.mediapost.com/publications/?fa=Articles.san&s=95594&Nid=49924&p=296990
http://www.mediapost.com/publications/?fa=Articles.san&s=95594&Nid=49924&p=296990
Korean Ad Firm Buys Stake in Britain's BMB
Cheil Worldwide, South Korea's largest ad agency by sales, bought a 49% share in London creative agency Beattie McGuinness Bungay as part of its push to expand globally. Cheil didn't disclose how much it paid for its stake in BMB, but said the deal is its largest acquisition to date.
The pact comes just weeks after advance talks between Omnicom Group's TBWA Worldwide and BMB fell apart. BMB was founded in 2005 by three former executives from the London office of TBWA, including adman Trevor Beattie.
http://online.wsj.com/article/SB122818507785771305.html?mod=dist_smartbrief
Cheil already has offices in 29 countries but has long sought to increase its clientele beyond Korean companies such as Samsung Electronics, for which it is the global agency of record. Samsung Corp., another part of the Samsung group, owns nearly 13% of the ad firm.
Monday, November 24, 2008
Budgets lag interest in digital marketing: CMA, Marketing study
http://www.marketingmag.ca/english/news/media/article.jsp?content=20081028_175104_22104
Senior managers are very interested in digital marketing even if they aren’t committing much of their budget toward it, reports a new study conducted by Ipsos Reid for the Canadian Marketing Association, released in advance of the CMA and Marketing’s Digital Marketing Conference this week.
The research revealed that marketers are broadening their priorities from traditional, mass vehicles, like television, to include more targeted Internet and digital marketing tactics.
While digital currently accounts for only 8% of total marketing spend, almost two thirds (65%) of the marketers surveyed strongly agreed that their “senior management is very interested in digital marketing,” and 39% expect spending on TV to decrease over the next two years.
Senior managers are very interested in digital marketing even if they aren’t committing much of their budget toward it, reports a new study conducted by Ipsos Reid for the Canadian Marketing Association, released in advance of the CMA and Marketing’s Digital Marketing Conference this week.
The research revealed that marketers are broadening their priorities from traditional, mass vehicles, like television, to include more targeted Internet and digital marketing tactics.
While digital currently accounts for only 8% of total marketing spend, almost two thirds (65%) of the marketers surveyed strongly agreed that their “senior management is very interested in digital marketing,” and 39% expect spending on TV to decrease over the next two years.
In-store Displays Are More Effective Than Price Cuts
Price discounting is seemingly the one sure thing in an economic downturn, but research by WPP Group shopper-marketing agency OgilvyAction indicates it's still not as effective a sales tool as that old stalwart: in-store displays.
Specifically, OgilvyAction's research from the spring indicates that 29% of U.S. shoppers impulsively buy from categories they didn't plan to when they entered the store. Of that group, 24% said they were influenced by secondary displays (away from the product's usual aisle), 18% by in-store demonstrations, and only 17% by price promotion.
Continental Promotion Group Enters Chapter 11; Clients to Cover Rebate Checks
http://promomagazine.com/news/continental-promotion-bankruptcy-1124/
Continental Promotion Group, Inc., one of the country’s largest rebate-processing companies, has filed for Chapter 11 bankruptcy protection, citing liquidity problems.
Meanwhile, the firm apparently is reducing headcount. The court papers state that it had 242 employees prior to the petition, and that it would have 61 afterward. It was not clear at deadline whether these layoffs have occurred.
Continental Promotion Group, Inc., one of the country’s largest rebate-processing companies, has filed for Chapter 11 bankruptcy protection, citing liquidity problems.
Meanwhile, the firm apparently is reducing headcount. The court papers state that it had 242 employees prior to the petition, and that it would have 61 afterward. It was not clear at deadline whether these layoffs have occurred.
Friday, November 21, 2008
A Downturn Is Just the Market's Way of Opening Doors
http://adage.com/mediaworks/article?article_id=132758
Rob Master, director-North American media for Unilever, also noted that keeping up brand awareness through a recession is vital. "Brands matter more than ever in tough times. Consumers can't afford to take a risk when buying something," and they want to be reassured that they are making the best choice for their dollar.
Rob Master, director-North American media for Unilever, also noted that keeping up brand awareness through a recession is vital. "Brands matter more than ever in tough times. Consumers can't afford to take a risk when buying something," and they want to be reassured that they are making the best choice for their dollar.
Report: Web Still Growing Despite Recession
http://www.mediaweek.com/mw/content_display/news/digital-downloads/metrics/e3i6158980e36306f736860a288a1d4b93f
Online ad spending approached $5.9 billion during the third quarter, an increase of 11 percent versus the same quarter in 2007 and up 2 percent versus Q2 of this year, according to the Interactive Advertising Bureau and PricewaterhouseCoopers
Online ad spending approached $5.9 billion during the third quarter, an increase of 11 percent versus the same quarter in 2007 and up 2 percent versus Q2 of this year, according to the Interactive Advertising Bureau and PricewaterhouseCoopers
Zoom Media has just announced its acquisition of Smart One Media's digital signage assets
Zoom Media currently has 700 digital screens in its sport and resto-bar networks and plans to increase screen inventory in Vancouver, Toronto, Montreal and Quebec City, where it plans to install at least 100 digital screens over the next three to six months.
http://www.mediaincanada.com/articles/mic/20081121/zoom.html
http://www.mediaincanada.com/articles/mic/20081121/zoom.html
Thursday, November 20, 2008
WPP Digital acquires stake in Proclivity Systems
http://www.wpp.com/wpp/investor/financialnews/default.htm?guid=%7b0fe94350-6fcf-4cee-ac7d-d247505ee8e0%7d
WPP Digital announces that it has acquired a minority stake in Proclivity Systems ("Proclivity"), the developer of a platform that provides predictive insight into online shopping and purchasing behavior for advanced target marketing and merchandising. Proclivity has its headquarters in New York City and secured US$5.5 million in Series B funding. WPP joins lead investor Fung Capital USA Investments and the Pilot Group. This investment continues WPP's strategy of investing in more targeted and measurable forms of advertising and strengthening its capabilities in digital media technologies.
WPP Digital announces that it has acquired a minority stake in Proclivity Systems ("Proclivity"), the developer of a platform that provides predictive insight into online shopping and purchasing behavior for advanced target marketing and merchandising. Proclivity has its headquarters in New York City and secured US$5.5 million in Series B funding. WPP joins lead investor Fung Capital USA Investments and the Pilot Group. This investment continues WPP's strategy of investing in more targeted and measurable forms of advertising and strengthening its capabilities in digital media technologies.
Transcontinental gains Redwood Custom Communications
http://www.mediaincanada.com/articles/mic/20081118/transcontinental.html
Montreal-based Transcontinental has acquired Toronto-based custom publisher Redwood Custom Communications, adding to its newly established Marketing Communications Sector.
Redwood offers data sciences, research and measurement, premedia tools, database marketing, variable printing and photo studio tools, among other features.
François Olivier, president and chief executive officer at Transcontinental, says his company's main goal is to aid customers in reaching and retaining their target audiences, and that Redwood is at the frontier between traditional publishing and direct marketing.
http://www.newswire.ca/en/releases/archive/November2008/18/c9634.html
Key clients of Redwood Custom Communications include Aeroplan, CanadianAutomobile Association (CAA), Home Depot, Mazda, Procter & Gamble, Sears andSobeys. Redwood's team of 130 employees will remain under the leadership ofEric Schneider, Chief Executive Officer, Redwood Custom Communications, whowill stay on as an equity partner.
Transcontinental paid cash for the 75 per cent of Redwood that was owned by U.S. communications giant Omnicom. Redwood CEO Eric Schneider, who owns 25 per cent, remains an equity partner.
Montreal-based Transcontinental has acquired Toronto-based custom publisher Redwood Custom Communications, adding to its newly established Marketing Communications Sector.
Redwood offers data sciences, research and measurement, premedia tools, database marketing, variable printing and photo studio tools, among other features.
François Olivier, president and chief executive officer at Transcontinental, says his company's main goal is to aid customers in reaching and retaining their target audiences, and that Redwood is at the frontier between traditional publishing and direct marketing.
http://www.newswire.ca/en/releases/archive/November2008/18/c9634.html
Key clients of Redwood Custom Communications include Aeroplan, CanadianAutomobile Association (CAA), Home Depot, Mazda, Procter & Gamble, Sears andSobeys. Redwood's team of 130 employees will remain under the leadership ofEric Schneider, Chief Executive Officer, Redwood Custom Communications, whowill stay on as an equity partner.
Transcontinental paid cash for the 75 per cent of Redwood that was owned by U.S. communications giant Omnicom. Redwood CEO Eric Schneider, who owns 25 per cent, remains an equity partner.
Publicis Puts Another BRIC In Its Wall: Acquires Brazil's Tribal, Expands Digitas Footprint
http://www.mediapost.com/publications/?fa=Articles.san&s=95066&Nid=49531&p=296990
Paris-based global ad giant Publicis Groupe this morning announced the acquisition of one of the leading digital agencies in a key emerging market - Sao Paulo, Brazil-based Tribal - which will become part of the burgeoning global network of Publicis' Digitas unit.
Terms of the deal were not disclosed, but the companies said that Tribal would retain its brand identity in Brazil, one of the fastest growing ad markets for both digital and traditional media, and that it would continue to be managed by its existing team, including CEO Pierre Mantovani and Chief Creative Officer Renato Fabri, who will report to François de La Villardière, CEO of Digitas Latin America.
Paris-based global ad giant Publicis Groupe this morning announced the acquisition of one of the leading digital agencies in a key emerging market - Sao Paulo, Brazil-based Tribal - which will become part of the burgeoning global network of Publicis' Digitas unit.
Terms of the deal were not disclosed, but the companies said that Tribal would retain its brand identity in Brazil, one of the fastest growing ad markets for both digital and traditional media, and that it would continue to be managed by its existing team, including CEO Pierre Mantovani and Chief Creative Officer Renato Fabri, who will report to François de La Villardière, CEO of Digitas Latin America.
Citi: Online Ad Market Fading Fast
http://www.mediapost.com/publications/?fa=Articles.san&s=94916&Nid=49489&p=296990
Display advertising is declining faster than expected and marketers are holding back on spending in 2009 because of growing economic uncertainty, according to a new report by Citi Internet analyst Mark Mahaney.
Based on insights gained from last Friday's AdRevenue 08 conference in San Francisco, Mahaney suggested that the online ad market is in worse shape than previously imagined.
"October spending in display saw a sharp deceleration from September as advertisers continue to worry about the macro environment," he wrote. "Premium, guaranteed advertising, especially, has been highly impacted across all verticals."
A separate analysis by TechCrunch of online ad revenue of the top four Web companies--Yahoo, Google, AOL and Microsoft--showed only 0.6% growth in the third quarter, down from 12.7% growth in the fourth quarter of 2007.
Citi only last week revised its 2008 Internet ad forecast downward from 16.1% to 11.4%, and its 2009 outlook from 14.1% to 5.8%. Anecdotal information picked up at the AdRevenue conference suggests that estimates could be lowered again in the coming months.
On the bright side, ad budgets are shifting from traditional media (mainly print and radio) to performance-based display ads, ad exchanges and search advertising. Citi predicts ad exchanges and ad networks to benefit from that trend into next year. Even so, the report noted that publishers complain about too many ad networks claiming to do similar things.
"As such, there appears to be a flight to quality and to vertical ad networks, especially as marketing budgets become constricted in the current macro environment," it stated. With more than 300 ad networks in operation, industry observers are already projecting that the downturn will force the category to contract.
Display advertising is declining faster than expected and marketers are holding back on spending in 2009 because of growing economic uncertainty, according to a new report by Citi Internet analyst Mark Mahaney.
Based on insights gained from last Friday's AdRevenue 08 conference in San Francisco, Mahaney suggested that the online ad market is in worse shape than previously imagined.
"October spending in display saw a sharp deceleration from September as advertisers continue to worry about the macro environment," he wrote. "Premium, guaranteed advertising, especially, has been highly impacted across all verticals."
A separate analysis by TechCrunch of online ad revenue of the top four Web companies--Yahoo, Google, AOL and Microsoft--showed only 0.6% growth in the third quarter, down from 12.7% growth in the fourth quarter of 2007.
Citi only last week revised its 2008 Internet ad forecast downward from 16.1% to 11.4%, and its 2009 outlook from 14.1% to 5.8%. Anecdotal information picked up at the AdRevenue conference suggests that estimates could be lowered again in the coming months.
On the bright side, ad budgets are shifting from traditional media (mainly print and radio) to performance-based display ads, ad exchanges and search advertising. Citi predicts ad exchanges and ad networks to benefit from that trend into next year. Even so, the report noted that publishers complain about too many ad networks claiming to do similar things.
"As such, there appears to be a flight to quality and to vertical ad networks, especially as marketing budgets become constricted in the current macro environment," it stated. With more than 300 ad networks in operation, industry observers are already projecting that the downturn will force the category to contract.
Transactional e-mail seen as powerful marketing tool
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081117/FREE/811179971/1078/newsletter011
A new study by JupiterResearch finds that transactional e-mail—notifications of completed online orders or service-related messages, for example—can drive new revenue by including product offers or advertisements.
Among e-mail marketers surveyed for the JupiterResearch E-mail Marketing Forecast, 60% reported they increased sales by including offers or ads in their transactional e-mail. In addition, about half the respondents said that receiving such marketing messages increased brand recognition and satisfaction with the company.
A new study by JupiterResearch finds that transactional e-mail—notifications of completed online orders or service-related messages, for example—can drive new revenue by including product offers or advertisements.
Among e-mail marketers surveyed for the JupiterResearch E-mail Marketing Forecast, 60% reported they increased sales by including offers or ads in their transactional e-mail. In addition, about half the respondents said that receiving such marketing messages increased brand recognition and satisfaction with the company.
Monday, November 17, 2008
Digital Ad Spend Up At The Expense of Traditional
According to a new Epsilon CMO Survey, Chief Marketing Officers at many of the biggest brands in the nation are seeing a major shift in the marketing landscape. 63% of the 175 marketing executives surveyed see an increase in their spending on interactive/digital marketing while 59% report a decrease in traditional marketing spend.
65% of CMOs say that the money spent on advertising as a whole will decrease due to the current economy. In contrast, 94% of CMOs and marketing executives agreed with the statement, 'A tough economic period is precisely the time when marketing plays a key role.'
When asked how their firm determines their target market for each channel:
50% stated that they use data driven marketing techniques
31% of respondents agreed that they use sophisticated modeling tools to analyze existing customer behavioral, preference and demographic data
19% said that they analyze past purchase behavior
28% said they made rough estimates based on past experience
Point.360 Acquires the Assets of Video Box Studios, Inc.
Point.360 , a leading provider of integrated media management services, announced that it had acquired the assets of Video Box Studios, Inc. Video Box is a premier provider of 3D animation, visual effects, motion design and digital finishing services. Haig S. Bagerdjian, the Company's Chairman, President and Chief Executive Officer said: "Video Box provides Point.360 with added capabilities to meet our customers' needs for 3D and visual effects. The widely respected Video Box team will be located in our West Los Angeles facility to expand our presence in that important market. We expect Video Box to add about $1.5 million in revenues in the first twelve months."
http://www.shootonline.com/go/index.php?name=Release&op=view&id=rs-web2-675889-1226371192-2
http://www.shootonline.com/go/index.php?name=Release&op=view&id=rs-web2-675889-1226371192-2
GPJ Acquires JUXT Interactive and MobilePromote
http://promomagazine.com/news/1111-gpj-acquires-juxt/
Experience marketing agency George P. Johnson has acquired online marketing agency JUXT Interactive and mobile device platform MobilePromote, underscoring the growing convergence of live events and digital marketing.
Newport Beach, CA-based Juxt has created work for clients including Toyota, BMW, Coca-Cola and Adobe. Founded in 1998, the firm is best known for its Web design and branding services. It has recently added social marketing credentials, creating a Facebook app for the 2009 Toyota Corolla and a MySpace page for Cherry Coke, among other projects.
MobilePromote meanwhile, offers a software platform that can integrate SMS and MMS messaging with live conferences and other events. At the 2008 Oracle OpenWorld event in San Francisco, its system was used to provide schedule updates to 9,000 attendees and to conduct session evaluations, according to GPJ.
http://www.clickz.com/3631645
Experience marketing agency George P. Johnson has acquired online marketing agency JUXT Interactive and mobile device platform MobilePromote, underscoring the growing convergence of live events and digital marketing.
Newport Beach, CA-based Juxt has created work for clients including Toyota, BMW, Coca-Cola and Adobe. Founded in 1998, the firm is best known for its Web design and branding services. It has recently added social marketing credentials, creating a Facebook app for the 2009 Toyota Corolla and a MySpace page for Cherry Coke, among other projects.
MobilePromote meanwhile, offers a software platform that can integrate SMS and MMS messaging with live conferences and other events. At the 2008 Oracle OpenWorld event in San Francisco, its system was used to provide schedule updates to 9,000 attendees and to conduct session evaluations, according to GPJ.
http://www.clickz.com/3631645
Razorfish acquires agency in Spain
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081103/FREE/811039997/1078/newsletter011
Digital marketing agency Razorfish announced the acquisition of Wysiwyg, a digital ad agency based in Madrid.
Digital marketing agency Razorfish announced the acquisition of Wysiwyg, a digital ad agency based in Madrid.
Marketers say social media, customer engagement and analytics are top trends for 2009
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081112/FREE/811129991/1087/newsletter011
Understanding and engaging customers, using new media such as social networks and digging deeper into data are some of the top trends for 2009, said a panel of top marketers at BtoB’s Best Luncheon Tuesday.
Top marketers from companies including American Express Co., Eastman Kodak Co., IBM Corp., Motorola Corp., Oracle Corp. and Siemens Corp. discussed strategies they will use to drive marketing next year in a tough economy.
Understanding and engaging customers, using new media such as social networks and digging deeper into data are some of the top trends for 2009, said a panel of top marketers at BtoB’s Best Luncheon Tuesday.
Top marketers from companies including American Express Co., Eastman Kodak Co., IBM Corp., Motorola Corp., Oracle Corp. and Siemens Corp. discussed strategies they will use to drive marketing next year in a tough economy.
Gannett acquires social media provider Ripple6
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081114/FREE/811149992/1001/newsletter011
News company Gannett Co. has acquired Ripple6, a provider of social media platforms for customer engagement and social marketing.
News company Gannett Co. has acquired Ripple6, a provider of social media platforms for customer engagement and social marketing.
WPP Execs Offer Tips on Weathering the Recession
http://adage.com/article?article_id=132538
Reassessing the structure of one's loyalty programs is also something Rob Norman, global CEO Group M Interaction believes marketers need to do. He said defining loyalty in tiers based on who spends the most is not the approach to be taking during a recession.
One thing Marylee Sachs, global director of consumer marketing, Hill and Knowlton said she would like to see her clients do more of is cut back on simply experimenting in the online space and instead make the commitment and "put a truly significant spend behind their efforts."
John Quelch, Harvard Business School professor and WPP Group board member said it's also a good time for marketers to "drain the swamp" and get rid of all the marginal products and brand managers who aren't cutting it. He added that, for some marketers, it might also be a good time to introduce value brands to protect their premium products.
Reassessing the structure of one's loyalty programs is also something Rob Norman, global CEO Group M Interaction believes marketers need to do. He said defining loyalty in tiers based on who spends the most is not the approach to be taking during a recession.
One thing Marylee Sachs, global director of consumer marketing, Hill and Knowlton said she would like to see her clients do more of is cut back on simply experimenting in the online space and instead make the commitment and "put a truly significant spend behind their efforts."
John Quelch, Harvard Business School professor and WPP Group board member said it's also a good time for marketers to "drain the swamp" and get rid of all the marginal products and brand managers who aren't cutting it. He added that, for some marketers, it might also be a good time to introduce value brands to protect their premium products.
WPP to swap assets with The Nielsen Co.
WPP said it's going to swap assets with The Nielsen Co. Nielsen will buy the 50% of AGBNielsen Media Research, the international television media measurement firm, that it doesn't already own from WPP. In return, Nielsen will give WPP: SRDS, a leading provider of media rates and data; PERQ/HCI, which provides a range of services to give insights into media planning, trading and post campaign effectiveness in the field of healthcare; and Nielsen's 11% share in IBOPE PDM, IBOPE LA and IMI.Com, which are part of the IBOPE Group, a Latin American multinational firm specializing in media, market and opinion research. WPP already holds a 31% stake in IBOPE
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b6008C48A-3282-4E74-B617-307AAA0AC8A4%7d&siteid=yhoof2
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b6008C48A-3282-4E74-B617-307AAA0AC8A4%7d&siteid=yhoof2
Japan's Dentsu to buy U.S. advertising firm
http://www.reuters.com/article/marketsNews/idINT18080820081112?rpc=44
Dentsu Inc (4324.T: Quote, Profile, Research, Stock Buzz), Japan's biggest advertising firm, is in talks to acquire McGarry Bowen, one of the largest independent advertising companies in New York, the Wall Street Journal reported on Wednesday.
Dentsu has long struggled to increase its presence in the U.S. market. The company, although ranked the world's fifth-biggest, earns most of revenues in Japan and has been trying to boost business outside its slowing domestic market.
In buying McGarry Bowen, Dentsu would be acquiring an agency with close ties to big marketers, said the WSJ. McGarry Bowen, with about $57 million in revenue last year, counts Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz) and J.P. Morgan Chase among its clients, said the report.
Dentsu, which bought San Francisco-based digital and design firm Attik last year, is looking to get about 30 percent of its revenue from North America by 2010 via organic growth and acquisitions, said the Journal, citing a person familiar with the matter.
Dentsu Inc (4324.T: Quote, Profile, Research, Stock Buzz), Japan's biggest advertising firm, is in talks to acquire McGarry Bowen, one of the largest independent advertising companies in New York, the Wall Street Journal reported on Wednesday.
Dentsu has long struggled to increase its presence in the U.S. market. The company, although ranked the world's fifth-biggest, earns most of revenues in Japan and has been trying to boost business outside its slowing domestic market.
In buying McGarry Bowen, Dentsu would be acquiring an agency with close ties to big marketers, said the WSJ. McGarry Bowen, with about $57 million in revenue last year, counts Hewlett-Packard (HPQ.N: Quote, Profile, Research, Stock Buzz) and J.P. Morgan Chase among its clients, said the report.
Dentsu, which bought San Francisco-based digital and design firm Attik last year, is looking to get about 30 percent of its revenue from North America by 2010 via organic growth and acquisitions, said the Journal, citing a person familiar with the matter.
Acxiom(R) Acquires Quinetix to Further Enhance Services Related to Customer Growth, Retention and Pricing Optimization
http://finance.yahoo.com/news/AcxiomR-Acquires-Quinetix-to-bw-13592270.html
Acxiom® Corporation (Nasdaq: ACXM - News), a global leader in interactive marketing services, today announced the acquisition of Quinetix, LLC, a Rochester, N.Y.-based provider of analytics and predictive modeling for large and medium-size businesses in retail banking and other industries.
Acxiom® Corporation (Nasdaq: ACXM - News), a global leader in interactive marketing services, today announced the acquisition of Quinetix, LLC, a Rochester, N.Y.-based provider of analytics and predictive modeling for large and medium-size businesses in retail banking and other industries.
U.S. foodmakers boost ad spend in tough times
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20080910_164411_26748
Foodmakers may be worried about higher costs for key ingredients, pushing through price increases and still maintaining their profits. But for some big name brands, these slim times don’t mean doing away with their advertising budgets.
While the food companies, like other large advertisers, pulled back on their spending as the economy soured, many big foodmakers plan advertising punches in the coming months. The shift comes as consumers worried about rising costs eat at home more and shop with budgets in mind—a trend that’s leading many of them to generics, or private-label brands.
So while automakers may be less apt to advertise right now, food companies say they are jumping back in the game. If they want to keep selling their own brands, they have to keep them in the minds of shoppers.
Foodmakers may be worried about higher costs for key ingredients, pushing through price increases and still maintaining their profits. But for some big name brands, these slim times don’t mean doing away with their advertising budgets.
While the food companies, like other large advertisers, pulled back on their spending as the economy soured, many big foodmakers plan advertising punches in the coming months. The shift comes as consumers worried about rising costs eat at home more and shop with budgets in mind—a trend that’s leading many of them to generics, or private-label brands.
So while automakers may be less apt to advertise right now, food companies say they are jumping back in the game. If they want to keep selling their own brands, they have to keep them in the minds of shoppers.
Zoom buys ClubCom to expand digital offering
http://www.marketingmag.ca/english/news/media/article.jsp?content=20080916_150916_29140
In a move intended to “accelerate“ growth in the burgeoning digital out-of-home sector, Montreal’s Zoom Media has purchased a Pittsburgh company that operates digital media networks catering to the fitness and bowling industries.
ClubCom, a division of fitness equipment manufacturer Precor, operates 25,000 ad-supported digital screens in 1,600 venues throughout the United States, the United Kingdom, Germany, Japan and Australia. Its product offering includes overhead screens in the common areas of fitness clubs, as well as personalized screens attached to fitness equipment. The company also owns an extensive library of digital music videos. ClubCom will continue to operate under its current name, with no changes in management or staff levels, says Zoom.
In addition to 55,000 static billboards, Zoom operates 1,250 digital billboards in more than 8,500 venues throughout the U.S. and Canada. While its digital business is still in its infancy, Zoom president Andy Querin predicts “high double-digit growth” for the sector on a year-over-year basis.
In a move intended to “accelerate“ growth in the burgeoning digital out-of-home sector, Montreal’s Zoom Media has purchased a Pittsburgh company that operates digital media networks catering to the fitness and bowling industries.
ClubCom, a division of fitness equipment manufacturer Precor, operates 25,000 ad-supported digital screens in 1,600 venues throughout the United States, the United Kingdom, Germany, Japan and Australia. Its product offering includes overhead screens in the common areas of fitness clubs, as well as personalized screens attached to fitness equipment. The company also owns an extensive library of digital music videos. ClubCom will continue to operate under its current name, with no changes in management or staff levels, says Zoom.
In addition to 55,000 static billboards, Zoom operates 1,250 digital billboards in more than 8,500 venues throughout the U.S. and Canada. While its digital business is still in its infancy, Zoom president Andy Querin predicts “high double-digit growth” for the sector on a year-over-year basis.
Friday, November 14, 2008
Online ad spend up 25% - Canada
Online advertising should hit $1.5 billion in 2008, a 25% increase from the $1.2 billion spent in 2007, according to research from the Interactive Advertising Bureau of Canada.
Despite economic uncertainty, the IAB also points to other studies that suggest online advertising will continue to grow at a double-digit pace in 2009.
IAB has no data for the estimated growth of online advertising in 2009, but it cites a recent eMarketer survey which predicts a 15% increase in online ad spending in the U.S. next year, although other studies that take the recent economic downturn into account have concluded there will be zero growth in digital ad spending.
Each study had a different viewpoint of the industry, resulting in distinct forecasts, said Paula Gignac, president of IAB Canada. The total decline to zero in some studies is “a worst-case scenario, and should really only be considered to apply to the U.S. market,” said Gignac.
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20081111_173432_10276
Despite economic uncertainty, the IAB also points to other studies that suggest online advertising will continue to grow at a double-digit pace in 2009.
IAB has no data for the estimated growth of online advertising in 2009, but it cites a recent eMarketer survey which predicts a 15% increase in online ad spending in the U.S. next year, although other studies that take the recent economic downturn into account have concluded there will be zero growth in digital ad spending.
Each study had a different viewpoint of the industry, resulting in distinct forecasts, said Paula Gignac, president of IAB Canada. The total decline to zero in some studies is “a worst-case scenario, and should really only be considered to apply to the U.S. market,” said Gignac.
http://www.marketingmag.ca/english/news/marketer/article.jsp?content=20081111_173432_10276
Tuesday, November 11, 2008
Digital Signage Biz To Boom
http://www.mediapost.com/publications/?fa=Articles.san&s=93942&Nid=49140&p=296990
Close on the heels of a cheery forecast for ad revenue for digital out-of-home media, another research firm is forecasting comparable growth in the nuts-and-bolts end of the business, including making, installing and managing digital signage. Together, the two forecasts suggest digital out-of-home will not only survive the current economic downturn, but see a significant boost in the future.
According to the forecast from ABI Research, the overall U.S. market for digital signage software, hardware, installation and management services is poised to grow from $641 million in 2008 to $1.4 billion by 2013, an increase of almost 120% in five years.
Spread out evenly over this period, that equals a cumulative annual growth rate of about 17% per year. However, given the vertigo-inducing economic plunge now underway, average growth rates will probably be lower in the next one to two years, and higher thereafter.
Overall, Quinn sized the digital out-of-home advertising market at $2.43 billion in 2008, up 11% from $2.19 billion in 2007. According to Quinn, the market tripled in size from 2002-2007. In the years to come, the forecast has ad revenue growing at a cumulative annual growth rate of 12% from 2007-2012, which puts it just under $3.9 billion in 2012.
Close on the heels of a cheery forecast for ad revenue for digital out-of-home media, another research firm is forecasting comparable growth in the nuts-and-bolts end of the business, including making, installing and managing digital signage. Together, the two forecasts suggest digital out-of-home will not only survive the current economic downturn, but see a significant boost in the future.
According to the forecast from ABI Research, the overall U.S. market for digital signage software, hardware, installation and management services is poised to grow from $641 million in 2008 to $1.4 billion by 2013, an increase of almost 120% in five years.
Spread out evenly over this period, that equals a cumulative annual growth rate of about 17% per year. However, given the vertigo-inducing economic plunge now underway, average growth rates will probably be lower in the next one to two years, and higher thereafter.
Overall, Quinn sized the digital out-of-home advertising market at $2.43 billion in 2008, up 11% from $2.19 billion in 2007. According to Quinn, the market tripled in size from 2002-2007. In the years to come, the forecast has ad revenue growing at a cumulative annual growth rate of 12% from 2007-2012, which puts it just under $3.9 billion in 2012.
Promotional Swag More Effective Than Ads
http://www.brandweek.com/bw/content_display/news-and-features/promotion/e3if0819d6addd2a0fe3b7a46b87f92137f
As marketers continue their debate over the next great advertising medium, a new study released today by the Advertising Specialty Institute found it's not TV, print or radio that gets consumers' attention, but good old promotional swag.This includes coffee mugs, pencils, retractable solar-powered flashlights or any other product bearing a company logo.
Promotional products made up a $19.6 billion industry in 2007, per the ASI. Through surveys conducted both online and in-person in major cities, such as New York and Los Angeles, the institute also found that promotional products generate a cost-per-impression average of $0.004, compared to $.033 for national magazine ads or $0.019 for prime time TV ads.
As marketers continue their debate over the next great advertising medium, a new study released today by the Advertising Specialty Institute found it's not TV, print or radio that gets consumers' attention, but good old promotional swag.This includes coffee mugs, pencils, retractable solar-powered flashlights or any other product bearing a company logo.
Promotional products made up a $19.6 billion industry in 2007, per the ASI. Through surveys conducted both online and in-person in major cities, such as New York and Los Angeles, the institute also found that promotional products generate a cost-per-impression average of $0.004, compared to $.033 for national magazine ads or $0.019 for prime time TV ads.
Behavioral Targeting: A Tricky Issue for Marketers
http://www.brandweek.com/bw/content_display/news-and-features/digital/e3i9e2284979c0b8c78ba188179079a495b
According to Forrester data, 24% of advertisers used behavioral targeting in 2008. Last year it was only 16%; the year before, only 13%. And BT's popularity is only going to grow, Riley said. "Almost half of advertisers say, 'Even if I didn't use behavioral last year, I definitely want to this coming year,' and this big jump between 'not currently using' and 'plan to use' indicates a lot of excitement around the topic," she said.
According to Forrester data, 24% of advertisers used behavioral targeting in 2008. Last year it was only 16%; the year before, only 13%. And BT's popularity is only going to grow, Riley said. "Almost half of advertisers say, 'Even if I didn't use behavioral last year, I definitely want to this coming year,' and this big jump between 'not currently using' and 'plan to use' indicates a lot of excitement around the topic," she said.
Rough Seas Ahead?
Talk to a digital agency CEO about the coming economic woes and you'll hear the same mantra: Traditional advertising will suffer much more in a downturn, mostly because of the comparatively lower cost and higher measurability of interactive, and the fact consumers continue to migrate from traditional channels to digital outlets. Yet underneath the surface-level cheeriness, most admit fortunes could change on a dime in the next 12 months -- who would have predicted the Wall Street collapse just a year ago? -- and are preparing contingency plans.
There are already signs that interactive has been hit. Clark Kokich, CEO of Microsoft-owned Avenue A/Razorfish, said the shop has felt the effects of the turbulence on Wall Street with its financial services clients and in consumer spending with auto clients like Ford. Across the board, he said, clients are scrutinizing spending much more closely and making cuts to experimental programs.
http://www.adweek.com/aw/content_display/news/digital/e3ie08aadb553c2ade9d24ae2ea45ce6bf6?pn=1
There are already signs that interactive has been hit. Clark Kokich, CEO of Microsoft-owned Avenue A/Razorfish, said the shop has felt the effects of the turbulence on Wall Street with its financial services clients and in consumer spending with auto clients like Ford. Across the board, he said, clients are scrutinizing spending much more closely and making cuts to experimental programs.
http://www.adweek.com/aw/content_display/news/digital/e3ie08aadb553c2ade9d24ae2ea45ce6bf6?pn=1
Russian search company Yandex acquires ad agency
http://news.cnet.com/8301-17939_109-10072621-2.html
Russia's largest search site, Yandex, announced today that it acquired Mediaselling, an online display ad agency, for an undisclosed amount in an attempt to bolster its advertising initiatives and establish itself as Google and others try to create a foothold in the country.
Yandex, which recently postponed its plans for an IPO, will allow Mediaselling to continue to operate as an independent entity for a short while, but the advertising firm will eventually become a part of Yandex, according to Mediaselling CEO Lev Gleyzer.
Russia's largest search site, Yandex, announced today that it acquired Mediaselling, an online display ad agency, for an undisclosed amount in an attempt to bolster its advertising initiatives and establish itself as Google and others try to create a foothold in the country.
Yandex, which recently postponed its plans for an IPO, will allow Mediaselling to continue to operate as an independent entity for a short while, but the advertising firm will eventually become a part of Yandex, according to Mediaselling CEO Lev Gleyzer.
Russian watchdog rejects Google bid for ad firm
Russia's anti-trust watchdog rejected on Thursday a $140 million bid by Google Inc. to buy the Begun advertising agency, claiming the deal would reduce competition in the online advertising market.
http://www.reuters.com/article/internetNews/idUSTRE49M21K20081023?feedType=RSS&feedName=internetNews
http://www.reuters.com/article/internetNews/idUSTRE49M21K20081023?feedType=RSS&feedName=internetNews
As the Lines Blur, Digital Agencies Are Taking Lead
http://adage.com/agencynews/post?article_id=132026
While most clients still seek best-in-class specialists for every discipline, more are showing interest in digital agencies to serve as the lead on integrated communications efforts, consultants said. The uptick is particularly visible among marketers in the retail sector and other product categories where there is opportunity for e-commerce.
What's more, clients are becoming less and less fixated on the type of agency handling their ad accounts and more on the individual brains behind the marketing campaigns.
While most clients still seek best-in-class specialists for every discipline, more are showing interest in digital agencies to serve as the lead on integrated communications efforts, consultants said. The uptick is particularly visible among marketers in the retail sector and other product categories where there is opportunity for e-commerce.
What's more, clients are becoming less and less fixated on the type of agency handling their ad accounts and more on the individual brains behind the marketing campaigns.
No Ifs About It: Isobar Acquires IF, Expands Global Footprint Into Malaysia
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=93425
Aegis Group continues to expand the global footprint of its burgeoning Isobar network, announcing yet another acquisition this morning of IF, one of Malaysia's leading independent full-service digital shops. IF, founded in 2002, has a client roster that includes Heineken and Discovery
Aegis Group continues to expand the global footprint of its burgeoning Isobar network, announcing yet another acquisition this morning of IF, one of Malaysia's leading independent full-service digital shops. IF, founded in 2002, has a client roster that includes Heineken and Discovery
MTV Networks Measures with Quantcast
In a step away from panel-based measurement to one that measures based on site activity, MTV Networks, a division of Viacom, selected Quantcast to measure traffic on its online properties. Metrics will aid marketers, advertisers, and agency media buyers to make more informed decisions on ad inventory and site visitors.
With a pixel and a cookie, Quantcast is able to provide publishers, and therefore advertisers, with the number of unique visitors, cookied visitors, and page views on a particular site. In addition, the service provides aggregate user data so advertisers can see what site visitors look like.
http://www.clickz.com/showPage.html?page=3631558
With a pixel and a cookie, Quantcast is able to provide publishers, and therefore advertisers, with the number of unique visitors, cookied visitors, and page views on a particular site. In addition, the service provides aggregate user data so advertisers can see what site visitors look like.
http://www.clickz.com/showPage.html?page=3631558
Unilever VP Takes an Axe to Old Broadcasting Theories
Mr. George has been instrumental in identifying interactive, customized opportunities for brands such as Axe, Degree, Suave, Dove and Sunsilk over the last three years. Interactive TV has become an increasingly larger part of Unilever's corporate strategy, too, with more than 30 brands currently testing the technology. Now that the footprint is larger -- more than 70 million cable households have interactive capabilities -- marketers like Mr. George are finding the engagement metrics behind a clickable TV ad are far more compelling than rerunning the same 30-second spot.
Unilever's "Advanced" TV ads, as they're occasionally called, have appeared in a variety of forms, from interactive overlays during on-demand programming to text-message opt-in requests to clickable pre-roll ads. And sometimes don't appear in the form of ads at all. Earlier this year, the company created a full-length music video for Axe that aired on on-demand network Music Choice, featuring the fictional band the Bom Chicka Wah Wah's. The music video became one of the top 10 most requested for Music Choice and has already garnered more than 1 million hits on YouTube.
http://adage.com/madisonandvine/article?article_id=132306
Unilever's "Advanced" TV ads, as they're occasionally called, have appeared in a variety of forms, from interactive overlays during on-demand programming to text-message opt-in requests to clickable pre-roll ads. And sometimes don't appear in the form of ads at all. Earlier this year, the company created a full-length music video for Axe that aired on on-demand network Music Choice, featuring the fictional band the Bom Chicka Wah Wah's. The music video became one of the top 10 most requested for Music Choice and has already garnered more than 1 million hits on YouTube.
http://adage.com/madisonandvine/article?article_id=132306
Local Interactive Ad Growth to Slow Next Year
http://www.mediaweek.com/mw/content_display/news/local-broadcast/e3i7f30abddb493befbb9c1f4713bfcb921
After growing at break-neck speed for the last few years, local interactive advertising, up 47 percent this year to $12.9 billion, is poised to grow only 8 percent in 2009 to $13.9 billion, according to a Borrell Associates report released Thursday (Nov. 6). Factoring in national interactive, total interactive segment is forecast to moderate from 10.4 percent growth this year to 7.2 percent growth in 2009 for a total of $40.4 billion.
After growing at break-neck speed for the last few years, local interactive advertising, up 47 percent this year to $12.9 billion, is poised to grow only 8 percent in 2009 to $13.9 billion, according to a Borrell Associates report released Thursday (Nov. 6). Factoring in national interactive, total interactive segment is forecast to moderate from 10.4 percent growth this year to 7.2 percent growth in 2009 for a total of $40.4 billion.
Kraft Tests Recipe for Selling in a Recession
Ms. West was named CMO last October, and the company has continually vowed to increase marketing spending during her tenure. In the past year, Kraft has also reinvigorated its salad-dressing and Maxwell House brands following repackaging efforts. Analysts were clamoring for divestiture of both businesses back in August 2007.
http://adage.com/cmostrategy/article?article_id=132302
http://adage.com/cmostrategy/article?article_id=132302
AUTOS' PLIGHT MAY DRIVE NEW AD FORMULA
http://www.nypost.com/seven/11102008/business/autos_plight_may_drive_new_ad_formula_138004.htm
Though automakers were some of their most profitable and prized accounts, ad execs nevertheless complained for years about the pernicious influence of "bean counters" who pressure agencies to accept lower fees while demanding more for their money.
At the same time, despite automakers' focus on the bottom line, agencies didn't overhaul their organizations or push for a different compensation system. Most agencies still bill their clients by the hour.
Detroit's decline could serve as a challenge to the ad industry to figure out a better way to build a partnership - one with clear objectives, performance standards and commensurate pay - rather than settling for a quick buck.
"It could cause a rethinking of the agency-client relationship to one that is more modern," said Ron Berger, chief executive of ad agency Euro RSCG's New York office, who labels the ad industry's past efforts to adjust its business model as "Band-Aids."
Digital Not Layoff-Proof, But Coping
March added that since the economic downturn hit, his agency has actually been able to hire a greater degree of quality talent, as experienced buyers have shown an increased willingness to change jobs.
http://www.mediaweek.com/mw/content_display/esearch/e3i8a864b21b4f19fc563c5183287606d36
http://www.mediaweek.com/mw/content_display/esearch/e3i8a864b21b4f19fc563c5183287606d36
Thursday, November 6, 2008
Cheerful Gloom From Mary Meeker
http://bits.blogs.nytimes.com/2008/11/05/cheerful-gloom-from-mary-meeker/
Over time, she said, advertising revenue grows and shrinks three times as fast as the gross domestic product. If G.D.P. is unchanged next year, which is Morgan Stanley’s current forecast, ad spending for all media will fall by 4 percent. And it gets worse fast. A 2 percent drop in G.D.P., for example, would bring a 10 percent reduction in ad spending.
For Internet advertising in particular, there isn’t enough data to have such a precise correlation. Ms. Meeker said that in the slowdown from 2000 to 2002, online advertising fell by 27 percent, although the Internet economy had been inflated by a bubble of venture-backed ad spending. This year, Internet ad spending trends are much closer to other forms of advertising.
Ms. Meeker didn’t specifically forecast what will happen to online ads. “Display advertising will continue to be challenged, but search will do better.”
Over time, she said, advertising revenue grows and shrinks three times as fast as the gross domestic product. If G.D.P. is unchanged next year, which is Morgan Stanley’s current forecast, ad spending for all media will fall by 4 percent. And it gets worse fast. A 2 percent drop in G.D.P., for example, would bring a 10 percent reduction in ad spending.
For Internet advertising in particular, there isn’t enough data to have such a precise correlation. Ms. Meeker said that in the slowdown from 2000 to 2002, online advertising fell by 27 percent, although the Internet economy had been inflated by a bubble of venture-backed ad spending. This year, Internet ad spending trends are much closer to other forms of advertising.
Ms. Meeker didn’t specifically forecast what will happen to online ads. “Display advertising will continue to be challenged, but search will do better.”
Thursday, October 30, 2008
Advertising agencies warn of tough year ahead
http://www.ft.com/cms/s/0/50de0c18-a519-11dd-b4f5-000077b07658.html?nclick_check=1
Three of the world’s largest advertising groups warned of a tough fourth quarter, confirming fears of a dismal 2009 for the marketing industry.
Interpublic, Publicis and Aegis reported mixed third-quarter results, with the greatest revenue falls in Germany, Spain and the UK.
But all insisted they would maintain or improve margins by controlling costs and cutting staff as the impact of the financial crisis hit marketing budgets.
Three of the world’s largest advertising groups warned of a tough fourth quarter, confirming fears of a dismal 2009 for the marketing industry.
Interpublic, Publicis and Aegis reported mixed third-quarter results, with the greatest revenue falls in Germany, Spain and the UK.
But all insisted they would maintain or improve margins by controlling costs and cutting staff as the impact of the financial crisis hit marketing budgets.
Ketchum Acquires Fifth Largest U.S. Technology PR Firm, Access Communications
Ketchum, one of the world's leading public relations agencies, today announced the acquisition of San Francisco-based Access Communications, a firm known for its high-technology and consumer-technology work. The acquisition is intended to significantly strengthen Ketchum's Global Technology Practice and further its client work in the consumer-technology segment, while also expanding the agency's California footprint, expertise and services.
By complementing the 75-member-strong Access staff with the 120 professionals in the Los Angeles and San Francisco markets that currently make up Ketchum West, the two organizations will leverage each other's resources and provide clients access to one of the largest agency teams in California.
http://biz.yahoo.com/prnews/081030/ny42982.html
By complementing the 75-member-strong Access staff with the 120 professionals in the Los Angeles and San Francisco markets that currently make up Ketchum West, the two organizations will leverage each other's resources and provide clients access to one of the largest agency teams in California.
http://biz.yahoo.com/prnews/081030/ny42982.html
Monday, October 20, 2008
Internet Advertising Up 15.2% In First-Half 2008
http://www.mediapost.com/publications/?fa=Articles.san&s=92233&Nid=48096&p=296990
Facing a souring economy, U.S. Internet ad revenue grew 15.2% during the first half of 2008 to $11.5 billion compared to the year-earlier period, according to a new report by the Interactive Advertising Bureau and PricewaterhouseCoopers.
Facing a souring economy, U.S. Internet ad revenue grew 15.2% during the first half of 2008 to $11.5 billion compared to the year-earlier period, according to a new report by the Interactive Advertising Bureau and PricewaterhouseCoopers.
Study: How Profitable Is Word-of-Mouth?
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3ie470eaeef1dd69b11a7c7061301e5f6b
If a conversation costs 50 cents to generate, how much profit do marketers reap from the typical eight minutes a consumer spends talking about their favorite brands?
According to BzzAgent, a word-of-mouth marketing agency in Boston, that profit is 38 cents. The firm has pegged this amount as the "communication dividend" in a report titled Calculating Your Communication Dividend, which examines the value of word-of-mouth conversations. It builds on another report (in June) that found the average cost of an eight-minute conversation to be 49 cents.
If a conversation costs 50 cents to generate, how much profit do marketers reap from the typical eight minutes a consumer spends talking about their favorite brands?
According to BzzAgent, a word-of-mouth marketing agency in Boston, that profit is 38 cents. The firm has pegged this amount as the "communication dividend" in a report titled Calculating Your Communication Dividend, which examines the value of word-of-mouth conversations. It builds on another report (in June) that found the average cost of an eight-minute conversation to be 49 cents.
MindShare Acquires Michaelides & Bednash
WPP Group's MindShare today is announcing it its acquiring the company that practically invented media planning: Michaelides & Bednash.
http://adage.com/agencynews/article?article_id=131589
http://adage.com/agencynews/article?article_id=131589
Economic Worries Dog DMA's Fall Show
The DMA is projecting that marketers will spend $176.9 billion on direct-marketing efforts by the end of the year, slightly outpacing last year's total of $171.1 billion in 2007. Looking ahead to next year, the association is projecting direct-marketing expenditures will increase to $183.1 billion.
Other findings from the DMA's "Power of Direct Marketing" study include: Above-average double-digit spending growth will occur in commercial e-mail and internet marketing; expenditures in the newer online media will maintain significant growth in the coming year; commercial e-mail will continue to claim the top growth ranking for 2009, while internet advertising will claim more than 15% of all direct-marketing advertising dollars in 2009; and for 2008, an investment of $1 in direct-marketing advertising expenditures is predicted to return, on average, $11.63 in incremental revenue across all industries. This exceeds the $11.56 achieved in 2007 and is expected to improve further to $11.74 in 2009.
Aegis Fuses Sustainability and Digital Media with Clownfish Buy
Aegis has acquired sustainability and communications consultancy Clownfish, which, perhaps surprisingly, will be rolled into the Isobar digital network.
Clownfish, which has offices in both London and New York, specializes in advising clients on environmentally friendly, sustainable initiatives, and helps them "communicate these initiatives authentically," according to the firm's Web site.
On the surface, the move appears to have little to do with the Aegis's digital business, but according to today's press release, the purchase reflects the group's "vision of the emerging marketing model, as well as the importance of digital and sustainability solutions for business and marketing communications."
Efficiency Key to Web Ad Industry Weathering Economic Storm
http://www.clickz.com/showPage.html?page=3630968
Execs also pointed to the need for standards in ad metrics, a longtime lament of agency people and marketers dealing with digital and cross-media campaigns. Indeed, the campaign reporting and measurement process can also take an excessive amount of time because publishers and third-party ad firms often provide incompatible data.
Despite inconsistency in metrics, the fact that digital advertising enables a plethora of measurement data to prove its value could help the industry keep afloat during the recession. "In a tough economy...the top honchos at these firms, they want to know where every dollar is going," said O'Regan.
Execs also pointed to the need for standards in ad metrics, a longtime lament of agency people and marketers dealing with digital and cross-media campaigns. Indeed, the campaign reporting and measurement process can also take an excessive amount of time because publishers and third-party ad firms often provide incompatible data.
Despite inconsistency in metrics, the fact that digital advertising enables a plethora of measurement data to prove its value could help the industry keep afloat during the recession. "In a tough economy...the top honchos at these firms, they want to know where every dollar is going," said O'Regan.
How poor metrics undermine digital marketing
http://www.mckinseyquarterly.com/Marketing/Digital_Marketing/How_poor_metrics_undermine_digital_marketing_2220_abstract?gp=1
The digital world has developed faster than the tools needed to measure it. This lag has made it difficult for marketers to fully exploit the Web’s promise as the most targetable and measurable medium in the history of marketing.
Hobbled by nascent technologies, inconsistent metrics, and a reliance on outdated media models, marketers are failing to tap the Web’s full power. Unless this problem can be addressed, the inability to make accurate measurements of digital advertising’s effectiveness across channels and consumer touch points will continue to promote the misallocation of media budgets and to impede the industry’s growth.
Some companies, though, are developing analytics that allow them to compare the effectiveness of their on- and offline efforts. Others are learning how online marketing messages convert shoppers into buyers, both online and in stores.
The digital world has developed faster than the tools needed to measure it. This lag has made it difficult for marketers to fully exploit the Web’s promise as the most targetable and measurable medium in the history of marketing.
Hobbled by nascent technologies, inconsistent metrics, and a reliance on outdated media models, marketers are failing to tap the Web’s full power. Unless this problem can be addressed, the inability to make accurate measurements of digital advertising’s effectiveness across channels and consumer touch points will continue to promote the misallocation of media budgets and to impede the industry’s growth.
Some companies, though, are developing analytics that allow them to compare the effectiveness of their on- and offline efforts. Others are learning how online marketing messages convert shoppers into buyers, both online and in stores.
Online ads defy slowing global economy
http://www.hollywoodreporter.com/hr/content_display/news/e3i25cba8ba761bcf122eefb7e4118c520b
Defying a slowing global economy, the online advertising market is expected to grow by 23% this year to $43.3 billion, according to the Berlin-based European Information Technology Observatory.
Despite the damage inflicted by the financial crisis, turnover with advertisement banners, sponsored links and other online advertising format will grow 13% to $18.6 billion in the U.S., still by far the largest market in the world.
Defying a slowing global economy, the online advertising market is expected to grow by 23% this year to $43.3 billion, according to the Berlin-based European Information Technology Observatory.
Despite the damage inflicted by the financial crisis, turnover with advertisement banners, sponsored links and other online advertising format will grow 13% to $18.6 billion in the U.S., still by far the largest market in the world.
Even Search Not Immune to Financial Malaise
There's no reason to believe search-engine spend has significantly slowed. Several search-engine-marketing companies surveyed last week said they didn't notice any reduction in third-quarter search-ad spending.
On a same-advertiser, quarter-over-quarter or year-over-year basis, "we're seeing increased spending levels across the engines," said Roger Barnette, CEO of SearchIgnite, a search-technology company that helps big marketers track search spending. Earlier in the week, Peter Hershberg of Reprise Media and Steve Lagnado from Didit Search Marketing told J.P. Morgan analyst Imran Khan they hadn't seen a slowdown in spending either.
"It's either because the return [advertisers] are getting from search is still superior, or ... their search spend is more profitable than other forms of media," Mr. Barnette said.
http://adage.com/digital/article?article_id=131663
On a same-advertiser, quarter-over-quarter or year-over-year basis, "we're seeing increased spending levels across the engines," said Roger Barnette, CEO of SearchIgnite, a search-technology company that helps big marketers track search spending. Earlier in the week, Peter Hershberg of Reprise Media and Steve Lagnado from Didit Search Marketing told J.P. Morgan analyst Imran Khan they hadn't seen a slowdown in spending either.
"It's either because the return [advertisers] are getting from search is still superior, or ... their search spend is more profitable than other forms of media," Mr. Barnette said.
http://adage.com/digital/article?article_id=131663
Car Biz Driven to Despair
"Certainly we believe that a higher percentage of the budget will be online and that tier 2 [dealer, association, retail] advertising will, as a straight factor of wholesale, diminish," said Ian Beavis, a former automotive marketer and now evp and executive client services director at Aegis Group's Carat. "Automotive marketers will also be seeking better analytics and research to better understand the market dynamics. There will still be people out there buying cars, and the trick will be to identify them and what triggers them to purchase."
http://www.adweek.com/aw/content_display/news/client/e3ie470eaeef1dd69b1f618818f87a29fc1
http://www.adweek.com/aw/content_display/news/client/e3ie470eaeef1dd69b1f618818f87a29fc1
Media & Money Conference: Outlook for Ad Business Grim
http://www.mediaweek.com/mw/content_display/news/media-agencies-research/e3ie0a4ec066acfa663dc5a9bd2e545f8cd
In past recessions, said Reif-Cohen, ad spending has been a “lagging indicator” - meaning that typically the business doesn’t take a hit until a quarter or two after a consumer recession starts and doesn’t recover until a quarter or two after it ends.
hat may explain why agencies and vendors have yet to experience several cutbacks in spending ( see this article). Instead what’s been happening is “a lot of just-in-time buying,” observed Millard. Lately, agencies and clients have been waiting until the last minute to commit to media plans, leading to more uncertainty than usual, even in media segments like magazines where that sort of buying is not par for the course. “I think we’ll continue to see that in all the channels,” she said, making it very difficult to forecast future spending.
The ad marketplace should be less challenging for the more measurable channels, particularly digital, according to Jack Klues, managing partner of Publicis Groupe Media’s recently formed VivaKi. Among his company’s different agencies Klues said he is seeing “a measured and mixed response” to the downturn, with clients in some categories like travel bearing down for tough times while some even mulling increased spending. He predicted that many agencies and media companies will use this period to reshape their businesses to become more efficient and more focused on data and precise targeting. “There’s an opportunity to change,” he said. “The paradigm is totally shifting...to a place where you focus on your best prospects.”
In past recessions, said Reif-Cohen, ad spending has been a “lagging indicator” - meaning that typically the business doesn’t take a hit until a quarter or two after a consumer recession starts and doesn’t recover until a quarter or two after it ends.
hat may explain why agencies and vendors have yet to experience several cutbacks in spending ( see this article). Instead what’s been happening is “a lot of just-in-time buying,” observed Millard. Lately, agencies and clients have been waiting until the last minute to commit to media plans, leading to more uncertainty than usual, even in media segments like magazines where that sort of buying is not par for the course. “I think we’ll continue to see that in all the channels,” she said, making it very difficult to forecast future spending.
The ad marketplace should be less challenging for the more measurable channels, particularly digital, according to Jack Klues, managing partner of Publicis Groupe Media’s recently formed VivaKi. Among his company’s different agencies Klues said he is seeing “a measured and mixed response” to the downturn, with clients in some categories like travel bearing down for tough times while some even mulling increased spending. He predicted that many agencies and media companies will use this period to reshape their businesses to become more efficient and more focused on data and precise targeting. “There’s an opportunity to change,” he said. “The paradigm is totally shifting...to a place where you focus on your best prospects.”
Persuading Companies to Keep Up Their Pitches
http://www.nytimes.com/2008/10/16/business/media/16adco.html
A recent survey of association members found that “more than half expected spending to decline over the next six months,” Mr. Liodice said in an interview, so “there is a retrenchment” coming, particularly among “car companies, home building companies and financial institutions, who will have tough times for some time to come.”
However, “we expect a very subdued spending environment, not material declines,” he added, because of a growing belief that the recent moves by governments around the world to thaw the frozen credit markets “will loosen things up.”
A recent survey of association members found that “more than half expected spending to decline over the next six months,” Mr. Liodice said in an interview, so “there is a retrenchment” coming, particularly among “car companies, home building companies and financial institutions, who will have tough times for some time to come.”
However, “we expect a very subdued spending environment, not material declines,” he added, because of a growing belief that the recent moves by governments around the world to thaw the frozen credit markets “will loosen things up.”
Resolved to Keep on Marketing, Even in Tight-Fisted Times
http://www.nytimes.com/2008/10/20/business/media/20adco.html?em
Asked about immediate plans, 33 percent of respondents said they would maintain the level of their marketing spending, 33 percent said they would reduce spending and 27 percent said they would spend more. (The rest were unsure.)
If marketers cut budgets, that could intensify the recent sharp downturn in consumer spending. Conversely, by maintaining — or increasing — spending levels, they just might shorten the length of whatever recession might be coming (if it is not already here).
“Look, everyone is going to want to cut, but no one wants to be first to say it in public,” said one attendee, who spoke on the condition of anonymity because his company has not completed its planning for 2009.
“That’s especially true given that we still have some time before Christmas,” the attendee said, referring to the importance of the holiday shopping season for marketers and retailers. “Anyone who says anything now could go down as the Grinch who stole Christmas.”
The closest any speaker came to tipping his or her hand was Anne Saunders, brand and advertising executive at Bank of America.
“We aren’t done planning ’09 yet,” Ms. Saunders said, so “we’re not concluding at the moment that we would necessarily cut” spending.
If a decision is reached to make cuts, “we don’t expect to see a substantial cut,” she added, because “it would be a mistake to say you don’t need to continue to tend your brand, even in a challenging market like this.”
Other speakers made the same point, in more emphatic and colorful language.
“It’s incredibly important to be risk-takers in the economic climate we’re in,” said Michael Mendenhall, senior vice president and chief marketing officer at Hewlett-Packard, when “people have a tendency to pull back.”
“In economic times like these, you don’t hunker down and go in the bunker,” he added.
Asked about immediate plans, 33 percent of respondents said they would maintain the level of their marketing spending, 33 percent said they would reduce spending and 27 percent said they would spend more. (The rest were unsure.)
If marketers cut budgets, that could intensify the recent sharp downturn in consumer spending. Conversely, by maintaining — or increasing — spending levels, they just might shorten the length of whatever recession might be coming (if it is not already here).
“Look, everyone is going to want to cut, but no one wants to be first to say it in public,” said one attendee, who spoke on the condition of anonymity because his company has not completed its planning for 2009.
“That’s especially true given that we still have some time before Christmas,” the attendee said, referring to the importance of the holiday shopping season for marketers and retailers. “Anyone who says anything now could go down as the Grinch who stole Christmas.”
The closest any speaker came to tipping his or her hand was Anne Saunders, brand and advertising executive at Bank of America.
“We aren’t done planning ’09 yet,” Ms. Saunders said, so “we’re not concluding at the moment that we would necessarily cut” spending.
If a decision is reached to make cuts, “we don’t expect to see a substantial cut,” she added, because “it would be a mistake to say you don’t need to continue to tend your brand, even in a challenging market like this.”
Other speakers made the same point, in more emphatic and colorful language.
“It’s incredibly important to be risk-takers in the economic climate we’re in,” said Michael Mendenhall, senior vice president and chief marketing officer at Hewlett-Packard, when “people have a tendency to pull back.”
“In economic times like these, you don’t hunker down and go in the bunker,” he added.
WideOrbit snags $9.5 million for advertising analytics
http://venturebeat.com/2008/10/19/wideorbit-raises-95-million-for-advertising-analytics/?dlbk
The San Francisco-based startup has raised $30 million to date, reports StartupWire. It’s last round of funding, which brought in $14.5 million, was in February. Its software systems work with advertising spanning television, online and radio.
The San Francisco-based startup has raised $30 million to date, reports StartupWire. It’s last round of funding, which brought in $14.5 million, was in February. Its software systems work with advertising spanning television, online and radio.
Thursday, October 9, 2008
Cundari buys strategy shop Brand 360
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20081008_174738_13704
Toronto agency Cundari has acquired strategy and research firm Brand 360.
Until now, when Cundari needed external market research, it went to third-party firms, Brand 360 among them. Under the new arrangement, Cundari now fully owns the Toronto-based six-person firm, which will act as its internal research division.
Toronto agency Cundari has acquired strategy and research firm Brand 360.
Until now, when Cundari needed external market research, it went to third-party firms, Brand 360 among them. Under the new arrangement, Cundari now fully owns the Toronto-based six-person firm, which will act as its internal research division.
Tuesday, October 7, 2008
ZenithOptimedia said spending on global advertising was expected to grow 4.3 per cent in 2008
http://www.reportonbusiness.com/servlet/story/RTGAM.20081007.wadvertising1007/BNStory/robMarketing/?cid=al_gam_nletter_maropen
“The bank failures will have a fairly small direct effect on ad expenditure – since financial advertising contributes only about 4 per cent of global ad expenditure – but fears for the future will cause consumers to cut their spending, while companies carefully inspect their budgets to find cost savings.”
ZenithOptimedia said luxury goods, travel and entertainment were likely to be the sectors most affected.
“The bank failures will have a fairly small direct effect on ad expenditure – since financial advertising contributes only about 4 per cent of global ad expenditure – but fears for the future will cause consumers to cut their spending, while companies carefully inspect their budgets to find cost savings.”
ZenithOptimedia said luxury goods, travel and entertainment were likely to be the sectors most affected.
Marketing’s Top 10 Agencies for 2008
•Bleu Blanc Rouge
•DDB
•John St.
•Juniper Park
•Leo Burnett
•Ogilvy & Mather
•PHD
•Sid Lee
•Taxi
•Zig
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20081006_183518_6240
•DDB
•John St.
•Juniper Park
•Leo Burnett
•Ogilvy & Mather
•PHD
•Sid Lee
•Taxi
•Zig
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20081006_183518_6240
National buys into Sonic Boom
National Public Relations Inc. has acquired the Toronto-based full-service interactive agency Sonic Boom Creative Media Inc. The purchase price was not disclosed.
Crean said the two companies have “great chemistry” and have had success collaborating on past projects for the Canadian Association of Petroleum Producers and others.
“National is our ideal partner with whom to merge our operations,” said Alex Pejcic, vice-president, managing director, Sonic Boom, in a release. “Their dominant position in communications consulting, combined with our leading-edge interactive media offering and creative approach, will provide our clients with unmatched strategic and tactical firepower.”
Sonic Boom will continue to operate under its current name and will move all 20 of its employees into National’s Toronto office early next year.
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20081006_181018_9456
Crean said the two companies have “great chemistry” and have had success collaborating on past projects for the Canadian Association of Petroleum Producers and others.
“National is our ideal partner with whom to merge our operations,” said Alex Pejcic, vice-president, managing director, Sonic Boom, in a release. “Their dominant position in communications consulting, combined with our leading-edge interactive media offering and creative approach, will provide our clients with unmatched strategic and tactical firepower.”
Sonic Boom will continue to operate under its current name and will move all 20 of its employees into National’s Toronto office early next year.
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20081006_181018_9456
Monday, October 6, 2008
blinkx Withdraws Proposal to Acquire MIVA
http://biz.yahoo.com/prnews/081006/lnm002.html?.v=3
The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA's second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term."
The large premium blinkx offered in our initial proposal is even more significant today in light of MIVA's second quarter earnings miss, subsequent downward revision of annual guidance, and public disclosure related to restructuring of the Media EU business. By choosing not to engage in substantive discussions in any material respect and an agreement with blinkx, MIVA Board and management in our view have failed to give due consideration to a transaction that had a uniquely attractive opportunity for MIVA shareholders, particularly in light of several challenges MIVA faces in the near term."
GSI Commerce to Acquire Innotrac Corporation
http://biz.yahoo.com/prnews/081006/ny37075.html?.v=1
Leading e-commerce and multichannel solutions provider, GSI Commerce Inc. (Nasdaq: GSIC - News), today announced it has signed a definitive agreement to acquire Innotrac Corporation (Nasdaq: INOC - News).
For the trailing 12 months ending June 30, 2008 Innotrac recorded net revenues of $128.2 million, income from operations of $4.5 million and non-GAAP income from operations of $9.1 million. Non-GAAP income from operations equals income from operations plus $0.2 million of stock-based compensation expenses and $4.4 million of depreciation and amortization expenses.
Under the definitive agreement, which has been approved by the boards of directors of both companies, GSI will acquire Innotrac for $52 million, consisting of cash of $22 million and shares of GSI common stock valued at $30 million, or 1,841,621 shares at $16.29 per share, the volume weighted average price over the 20 days prior to signing. As of June 30, 2008 Innotrac had net debt of $9.9 million, making the aggregate value of the transaction $61.9 million.
Leading e-commerce and multichannel solutions provider, GSI Commerce Inc. (Nasdaq: GSIC - News), today announced it has signed a definitive agreement to acquire Innotrac Corporation (Nasdaq: INOC - News).
For the trailing 12 months ending June 30, 2008 Innotrac recorded net revenues of $128.2 million, income from operations of $4.5 million and non-GAAP income from operations of $9.1 million. Non-GAAP income from operations equals income from operations plus $0.2 million of stock-based compensation expenses and $4.4 million of depreciation and amortization expenses.
Under the definitive agreement, which has been approved by the boards of directors of both companies, GSI will acquire Innotrac for $52 million, consisting of cash of $22 million and shares of GSI common stock valued at $30 million, or 1,841,621 shares at $16.29 per share, the volume weighted average price over the 20 days prior to signing. As of June 30, 2008 Innotrac had net debt of $9.9 million, making the aggregate value of the transaction $61.9 million.
Thursday, October 2, 2008
AMP Agency Buys Fulgent Media Group
AMP Agency has purchased Fulgent Media Group, a media agency that offers strategy and placement services with a focus across emerging digital media platforms.
he deal enhances AMP Agency’s existing advertising services by bringing new options into the fold to offer its clients. Effective immediately, Fulgent will be renamed AMP Media Services.
Both AMP Agency and Fulgent are based in Boston. Fulgent’s office there will close and its 12 employees will join AMP Agency’s 120, said AMP Agency spokesperson Jodi Smith.
http://promomagazine.com/peoplenews/amp_buys_fulgent_group_0926/
he deal enhances AMP Agency’s existing advertising services by bringing new options into the fold to offer its clients. Effective immediately, Fulgent will be renamed AMP Media Services.
Both AMP Agency and Fulgent are based in Boston. Fulgent’s office there will close and its 12 employees will join AMP Agency’s 120, said AMP Agency spokesperson Jodi Smith.
http://promomagazine.com/peoplenews/amp_buys_fulgent_group_0926/
Outsell: Information industry to reach $466 billion by 2011
Research company Outsell projects that revenue for the worldwide information industry is on track to reach $466 billion by 2011.
In its newly released “2008 Information Industry Market Size, Share & Forecast Report,” Outsell forecasts a compound annual growth rate of 4.5% for the information industry from this year through 2011, with the market essentially holding steady in 2009 and beyond despite the challenging economy and a contracting news segment.
In its newly released “2008 Information Industry Market Size, Share & Forecast Report,” Outsell forecasts a compound annual growth rate of 4.5% for the information industry from this year through 2011, with the market essentially holding steady in 2009 and beyond despite the challenging economy and a contracting news segment.
Promotional products feel pinch as firms cut back on freebies
http://www.boston.com/business/articles/2008/09/24/promotional_products_feel_pinch_as_firms_cut_back_on_freebies/
But these are not easy times in the promotional-product business. Nationally, manufacturers and distributors have been hit by shrinking marketing budgets brought on by the economic downturn. Also, the Pharmaceutical Research and Manufacturers of America, a drug-industry trade group, has adopted a voluntary ethics code banning gifts to doctors. And in Massachusetts, recently adopted regulations make it mandatory for doctors to report gifts from pharmaceutical companies that are worth more than $50.
"There are some guys who sold exclusively to the pharmaceuticals, and for them the shift is going to be huge," said Steve Hettrick of Lawrence-based Gemline, which sells tote bags, pens, and corporate gifts. "And those guys are going to start looking for business in other industries, which is going to increase competition for everyone."
So far, Hettrick said, Gemline has avoided a significant sales drop but the company has seen customers looking for cheaper products. "They're still ordering the same number of pieces, but instead of going for the $25 tote bag, they're looking for totes in the $2 to $5 range," he said.
But these are not easy times in the promotional-product business. Nationally, manufacturers and distributors have been hit by shrinking marketing budgets brought on by the economic downturn. Also, the Pharmaceutical Research and Manufacturers of America, a drug-industry trade group, has adopted a voluntary ethics code banning gifts to doctors. And in Massachusetts, recently adopted regulations make it mandatory for doctors to report gifts from pharmaceutical companies that are worth more than $50.
"There are some guys who sold exclusively to the pharmaceuticals, and for them the shift is going to be huge," said Steve Hettrick of Lawrence-based Gemline, which sells tote bags, pens, and corporate gifts. "And those guys are going to start looking for business in other industries, which is going to increase competition for everyone."
So far, Hettrick said, Gemline has avoided a significant sales drop but the company has seen customers looking for cheaper products. "They're still ordering the same number of pieces, but instead of going for the $25 tote bag, they're looking for totes in the $2 to $5 range," he said.
WPP likely to succeed on hostile offer for Taylor
http://www.thedeal.com/dealscape/2008/10/wpp_likely_to_succeed_on_hosti.php
With one day to go, advertising company WPP Group plc Thursday looked likely to triumph with its £1.2 billion ($2.14 billion) hostile offer for Taylor Nelson Sofres plc.
With one day to go, advertising company WPP Group plc Thursday looked likely to triumph with its £1.2 billion ($2.14 billion) hostile offer for Taylor Nelson Sofres plc.
Study: Brands Sold on Shopper Marketing Programs
http://www.brandweek.com/bw/content_display/esearch/e3i382d62ad1770e9ede207cf7aa81ec385
In-store marketing tactics have not only become actively embraced by marketers of consumer packaged goods, many rank it as one of their most effective tools, per a study released today (Sept. 22). Deloitte and the Grocery Manufacturers Assn. polled more than 100 companies for the Delivering the Promise of Shopper Marketing: Mastering Execution for Competitive report.
Nineteen percent of consumer packaged goods manufacturers and half of retailers rank shopper marketing as the most effective activity for generating strong return-on-investment. Overall, 75% of manufacturers and 86% of retailers studied ranked in-store marketing among the top four activities in terms of gaining strong ROI.
In-store marketing tactics have not only become actively embraced by marketers of consumer packaged goods, many rank it as one of their most effective tools, per a study released today (Sept. 22). Deloitte and the Grocery Manufacturers Assn. polled more than 100 companies for the Delivering the Promise of Shopper Marketing: Mastering Execution for Competitive report.
Nineteen percent of consumer packaged goods manufacturers and half of retailers rank shopper marketing as the most effective activity for generating strong return-on-investment. Overall, 75% of manufacturers and 86% of retailers studied ranked in-store marketing among the top four activities in terms of gaining strong ROI.
Marketers Hit Hard by Credit Crisis
http://adage.com/article?article_id=131325
With banks in bunker mode and hoarding cash, marketers are beginning to feel the effects of credit drying up. Not only is McDonalds' coffee rollout threatened as franchisees scramble for funding to outfit stores, but General Motor Corp.'s largest dealership folded. Retailers are having a tough time raising money for much-needed holiday pushes and store openings. And deals are being hit hard on both ends of the price spectrum: Questions are being raised whether financing for InBev's $52 billion buyout of Anheuser-Busch will hold up, and $100 million consumer-products marketer Method is said to have taken itself off the market for want of a suitable price.
With banks in bunker mode and hoarding cash, marketers are beginning to feel the effects of credit drying up. Not only is McDonalds' coffee rollout threatened as franchisees scramble for funding to outfit stores, but General Motor Corp.'s largest dealership folded. Retailers are having a tough time raising money for much-needed holiday pushes and store openings. And deals are being hit hard on both ends of the price spectrum: Questions are being raised whether financing for InBev's $52 billion buyout of Anheuser-Busch will hold up, and $100 million consumer-products marketer Method is said to have taken itself off the market for want of a suitable price.
100 leading media companies
http://adage.com/mediatrees08/
2008 listing from AdAge
#1 Time Warner
Revenue breakdown for top 5
http://adage.com/images/random/datacenter/2008/bigplayers.pdf
2008 listing from AdAge
#1 Time Warner
Revenue breakdown for top 5
http://adage.com/images/random/datacenter/2008/bigplayers.pdf
Study: Sampling Works
http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3i32e9c3e84ea86c79e3ae157688c1ad0a
new survey from Arbitron found sampling works.More than one-third (35%) of customers who tried a sample bought the product during the same shopping trip, per the poll of 1,857 respondents conducted earlier this year via the phone. Fifty-eight percent of those surveyed reported they would buy a product again after trying it.
Perhaps the most surprising finding: Nearly a quarter of those polled (24%) said they bought the product they sampled instead of the item they initially set out to purchase.
new survey from Arbitron found sampling works.More than one-third (35%) of customers who tried a sample bought the product during the same shopping trip, per the poll of 1,857 respondents conducted earlier this year via the phone. Fifty-eight percent of those surveyed reported they would buy a product again after trying it.
Perhaps the most surprising finding: Nearly a quarter of those polled (24%) said they bought the product they sampled instead of the item they initially set out to purchase.
Nissan's Multicultural Account Finds New Home at Omnicom
Nissan North America is moving its multicultural account to Omnicom Group, to a new agency that will be set up to comply with Nissan's requirement for certified minority ownership and attempt to create a new model for handling multicultural business.
http://adage.com/hispanic/article?article_id=131351
http://adage.com/hispanic/article?article_id=131351
Confidence Erodes Among U.S. Ad Execs, Budgets Expected To Decline
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=91660
The study, the Media Economy Report conducted by Advertiser Perceptions Inc., found that the percentage of advertising budgets that are expected to increase over the next six months fell to 33% during the April/May period that its most recent survey was conducted, an eight percentage point drop from the Spring of 2007. The percentage of advertising budgets expected to decline during that period, increased five percentage points to 23%.
The study, the Media Economy Report conducted by Advertiser Perceptions Inc., found that the percentage of advertising budgets that are expected to increase over the next six months fell to 33% during the April/May period that its most recent survey was conducted, an eight percentage point drop from the Spring of 2007. The percentage of advertising budgets expected to decline during that period, increased five percentage points to 23%.
Wednesday, October 1, 2008
Point.360 to Acquire the Assets of CenterStaging Musical Productions, Inc.
http://biz.yahoo.com/prnews/080930/latu523.html?.v=24
"CenterStaging's customers include recording artists, television networks, production companies and studios that use the space and expertise of CenterStaging in the same manner as owners of content use the talent and facilities of Point.360 to service their masters. The potential acquisition will bring us approximately $7 million of new revenue opportunities, new customers in a new segment of the entertainment industry and the opportunity to cross-sell the services of Point.360 and CenterStaging."
The purchase of assets is expected to be completed in the quarter ended December 31, 2008 and is subject to the United States Bankruptcy Court approval and an opportunity for other parties to overbid for CenterStaging's assets.
"CenterStaging's customers include recording artists, television networks, production companies and studios that use the space and expertise of CenterStaging in the same manner as owners of content use the talent and facilities of Point.360 to service their masters. The potential acquisition will bring us approximately $7 million of new revenue opportunities, new customers in a new segment of the entertainment industry and the opportunity to cross-sell the services of Point.360 and CenterStaging."
The purchase of assets is expected to be completed in the quarter ended December 31, 2008 and is subject to the United States Bankruptcy Court approval and an opportunity for other parties to overbid for CenterStaging's assets.
Tuesday, September 23, 2008
Aegis Snags Search Specialist Range Online
http://www.clickz.com/showPage.html?page=3630817
Aegis has imbibed Fort Worth-based Range Online Media, a search marketing and optimization firm whose clients have included Godiva, Aveda, and Macys.com
Seven-year-old Range will be re-branded iProspect, continuing a trend of acquiring and renaming that has so far characterized Aegis' approach to growth in search. Other iProspect acquisitions to meet a similar fate include Globlet in Thailand, rmsarcar.com in Germany, and Extenseo in Belgium.
Isobar first purchased iProspect in 2004, for $50 million. Its network now spans 21 offices in 17 countries.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080916/FREE/809169997/1078/newsletter01
Search engine marketing company iProspect has acquired Range Online Media, a Fort Worth, Texas-based search and interactive marketing agency.
Aegis has imbibed Fort Worth-based Range Online Media, a search marketing and optimization firm whose clients have included Godiva, Aveda, and Macys.com
Seven-year-old Range will be re-branded iProspect, continuing a trend of acquiring and renaming that has so far characterized Aegis' approach to growth in search. Other iProspect acquisitions to meet a similar fate include Globlet in Thailand, rmsarcar.com in Germany, and Extenseo in Belgium.
Isobar first purchased iProspect in 2004, for $50 million. Its network now spans 21 offices in 17 countries.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080916/FREE/809169997/1078/newsletter01
Search engine marketing company iProspect has acquired Range Online Media, a Fort Worth, Texas-based search and interactive marketing agency.
Acxiom Acquires Alvion Direct Marketing Unit
http://uk.news.yahoo.com/cwire/20080918/ttc-acxiom-acquires-alvion-direct-market-78e70a2.html
Acxiom said the acquisition will give it an online marketing list-fulfillment platform that can be used by SMBs to access marketing information in a SaaS environment. The Alvion ListKey platform provides list counts, reporting, and fulfillment of data orders, and offers delivery options including small data storefronts, professional storefronts, and "data pipes."
Acxiom said the acquisition will give it an online marketing list-fulfillment platform that can be used by SMBs to access marketing information in a SaaS environment. The Alvion ListKey platform provides list counts, reporting, and fulfillment of data orders, and offers delivery options including small data storefronts, professional storefronts, and "data pipes."
AIG pulls ad campaign
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080922/FREE/809229997/1078/newsletter01
Only corporate ads are being pulled; AIG will continue its marketing campaigns for business units, including a direct mail campaign for the AIG Private Client Group.
Only corporate ads are being pulled; AIG will continue its marketing campaigns for business units, including a direct mail campaign for the AIG Private Client Group.
Thursday, September 11, 2008
M&A activity in events industry booming
According to DeSilva+Phillips, there were 26 acquisitions of events companies in the first half of this year, compared with 36 deals in all of 2007.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080904/FREE/809049991/1078/newsletter01
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080904/FREE/809049991/1078/newsletter01
Options Media Group to acquire 1Touch Marketing
Hallandale, Fla.—Options Media Group, an e-mail service provider, this week announced it will acquire 1Touch Marketing, a provider of e-mail marketing, Web-based lead generation, and mobile and postal direct marketing. The transaction is expected to close by the end of the month. 1Touch Marketing’s database contains mobile and SMS (short message service or text messaging) records for approximately 142 million opted-in consumer names and 19 million opted-in business names; the company’s Internet-based lead generation services enable advertisers to target messages on consumer, professional and education Web site networks. The acquisition will give Options Media clients the ability to cross-sell and upsell to their existing customers and build their databases with 1Touch Marketing’s prospecting lists, according to the company.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080904/FREE/809049993/1115/FREE
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080904/FREE/809049993/1115/FREE
Monday, September 8, 2008
MDC Partners Forms Cross Ad Exchange Media Management Company
http://biz.yahoo.com/bw/080827/20080827005161.html?.v=1
MDC Partners announced today the formation of Varick Media Management (http://www.varickmm.com), the first digital media management company of its kind. The firm will service clients across all online exchanges by focusing on providing clients with media trading and investment management, audience segmentation and analysis, data intelligence and dynamic creative optimization.
MDC Partners announced today the formation of Varick Media Management (http://www.varickmm.com), the first digital media management company of its kind. The firm will service clients across all online exchanges by focusing on providing clients with media trading and investment management, audience segmentation and analysis, data intelligence and dynamic creative optimization.
Digital Bloom opens at Cossette
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20080904_173806_19564
Cossette Communication Group has launched Bloom Digital Platforms, dedicated to the development of new digital marketing technologies.
Initially based in Montreal, Cossette plans to expand the operations to its other offices, including Toronto and New York.
“Bloom is applying Cossette’s depth of industry experience to four product development streams: online advertising platforms, brand reputation technologies, media widgets and mobile applications,” said Pierre Delagrave, Cossette’s president, media, research and interactive services and CEO of Bloom.
Cossette Communication Group has launched Bloom Digital Platforms, dedicated to the development of new digital marketing technologies.
Initially based in Montreal, Cossette plans to expand the operations to its other offices, including Toronto and New York.
“Bloom is applying Cossette’s depth of industry experience to four product development streams: online advertising platforms, brand reputation technologies, media widgets and mobile applications,” said Pierre Delagrave, Cossette’s president, media, research and interactive services and CEO of Bloom.
[ Transcon buys direct marketing company Rastar ]
http://www.marketingmag.ca/english/news/media/article.jsp?content=20080904_173232_13276
Transcontinental Inc. is acquiring Rastar, Inc., a privately owned U.S.-based direct marketing company that specializes in producing fully personalized marketing communications.
Financial terms of the purchase weren’t disclosed in Thursday’s announcement.
However, Transcontinental said Rastar’s 350 employees will join the Montreal-based printing and publishing company, which has a total workforce of about 15,000 in Canada, the United States and Mexico.
Rastar founder and chief executive officer, Kevin Despain, and Rastar president Grant Fletcher will maintain their leadership roles.
Transcontinental said Rastar generates about US$50 million in revenue.
That’s a small amount compared with the C $2.3 billion in revenue last year at Transcontinental’s other operations but the Montreal-based company said it sees great potential at Rastar.
“When you combine Rastar’s... leadership in interactive database marketing with Transcontinental’s vision and scope, we are only just beginning to explore the potential of the integrated marketing services we can now offer our clients,” said Francois Olivier, Transcontinental’s president and chief executive officer.
Transcontinental Inc. is acquiring Rastar, Inc., a privately owned U.S.-based direct marketing company that specializes in producing fully personalized marketing communications.
Financial terms of the purchase weren’t disclosed in Thursday’s announcement.
However, Transcontinental said Rastar’s 350 employees will join the Montreal-based printing and publishing company, which has a total workforce of about 15,000 in Canada, the United States and Mexico.
Rastar founder and chief executive officer, Kevin Despain, and Rastar president Grant Fletcher will maintain their leadership roles.
Transcontinental said Rastar generates about US$50 million in revenue.
That’s a small amount compared with the C $2.3 billion in revenue last year at Transcontinental’s other operations but the Montreal-based company said it sees great potential at Rastar.
“When you combine Rastar’s... leadership in interactive database marketing with Transcontinental’s vision and scope, we are only just beginning to explore the potential of the integrated marketing services we can now offer our clients,” said Francois Olivier, Transcontinental’s president and chief executive officer.
Microsoft Acquires Greenfield Online and will sell the internet survey solutions business
http://biz.yahoo.com/ap/080829/microsoft_greenfield_online.html?.v=3
Software giant Microsoft Corp. (MSFT) announced on Friday that it has agreed to acquire Web-based survey company Greenfield Online Inc. (SRVY) and its subsidiary Ciao GmbH - a European based online-shopping portal with websites in the United Kingdom, France, Spain, Germany, the Netherlands, Italy and Sweden. The transaction isvalued at approximately $486 million.Greenfield said it entered into a merger agreement to be acquired by Microsoft, via a cash tender offer for $17.50 per share, representing a premium of nearly 10% over Greenfield’s closing share price on August 25. This deal betters an earlier proposal made by Quadrangle Group to acquire the company for $15.50 a share.
Microsoft said it will sell to an unnamed financial buyer Greenfield’s Internet survey solutions [ISS] business, which accounts for about 75% of the company’s overall revenue.
Fleishman-Hillard Acquires Paul Wilmot Communications
http://biz.yahoo.com/prnews/080908/aqm018.html?.v=65
Fleishman-Hillard International Communications announced today that it has finalized an agreement to purchase a majority interest in Paul Wilmot Communications, whose client roster includes some of the world's most respected high fashion and lifestyle brands -- including Calvin Klein, Oscar de la Renta, Tommy Hilfiger, M.A.C. Cosmetics, Sean John, and the American Ballet Theater.
Fleishman-Hillard International Communications announced today that it has finalized an agreement to purchase a majority interest in Paul Wilmot Communications, whose client roster includes some of the world's most respected high fashion and lifestyle brands -- including Calvin Klein, Oscar de la Renta, Tommy Hilfiger, M.A.C. Cosmetics, Sean John, and the American Ballet Theater.
Wasserstein set to acquire Cygnus Business Media
New York—Wasserstein & Co. is set to acquire Cygnus Business Media from ABRY Partners, according to media reports. The deal would take place in a slow period for b-to-b media mergers and acquisitions activity.
Industry sources say that while the deal appears to be close to realization, the credit market remains difficult and may yet derail an acquisition agreement.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080815/FREE/949014417/1078/newsletter01
Industry sources say that while the deal appears to be close to realization, the credit market remains difficult and may yet derail an acquisition agreement.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080815/FREE/949014417/1078/newsletter01
AKQA on Its Post-Olympics Plans
http://www.adweek.com/aw/content_display/news/agency/e3i999ebd327d1b0f7204ba92cfde771125
By the end of the year, the firm expects to top 800 staffers, an increase of 100 just this year. It is also on the hunt for acquisitions, particularly in the media and analytics space, while still eyeing a future public offering.
To keep pace with its growth, the shop is filling out its management ranks. AKQA also shifted its chief financial officer, Tim Pierce, to the role of chief operating officer. He has moved from AKQA's San Francisco headquarters to London. To replace him, AKQA has tapped 25-year Grey Group veteran Lester Feintuck to take his place in San Francisco. Bedecarre notes that Feintuck, who served as CFO for Grey Group, has experience as a chief financial officer when Grey was an independent publicly traded company.
When General Atlantic bought a majority stake in AKQA from Francisco Partners in February 2007, AKQA indicated it would be looking for acquisitions to fill out its services. The only key deal was Searchrev, a small search technology team that brought AKQA bid-management software and the nucleus of a team that formed a search unit. Since then, AKQA has failed to close any deals. It was reportedly interested in U.K. digital media shop i-Level.
Search, media and analytics remain high on AKQA's list. Its bet is to build a digital media operation that combines creativity with expertise in managing bid-based buying systems. In that way, AKQA has tried to carve out a niche in innovative media programs, such as the Visa small-business program launched on Facebook earlier this summer. It gives $100 Facebook ad credits to small businesses that download the Visa application.
By the end of the year, the firm expects to top 800 staffers, an increase of 100 just this year. It is also on the hunt for acquisitions, particularly in the media and analytics space, while still eyeing a future public offering.
To keep pace with its growth, the shop is filling out its management ranks. AKQA also shifted its chief financial officer, Tim Pierce, to the role of chief operating officer. He has moved from AKQA's San Francisco headquarters to London. To replace him, AKQA has tapped 25-year Grey Group veteran Lester Feintuck to take his place in San Francisco. Bedecarre notes that Feintuck, who served as CFO for Grey Group, has experience as a chief financial officer when Grey was an independent publicly traded company.
When General Atlantic bought a majority stake in AKQA from Francisco Partners in February 2007, AKQA indicated it would be looking for acquisitions to fill out its services. The only key deal was Searchrev, a small search technology team that brought AKQA bid-management software and the nucleus of a team that formed a search unit. Since then, AKQA has failed to close any deals. It was reportedly interested in U.K. digital media shop i-Level.
Search, media and analytics remain high on AKQA's list. Its bet is to build a digital media operation that combines creativity with expertise in managing bid-based buying systems. In that way, AKQA has tried to carve out a niche in innovative media programs, such as the Visa small-business program launched on Facebook earlier this summer. It gives $100 Facebook ad credits to small businesses that download the Visa application.
Online Ad Industry Dealmakers Busy Despite Dull Economy
http://www.clickz.com/showPage.html?page=3630591
Despite a weakening U.S. economy during the past year, the level of investment deals and acquisitions involving companies in the online advertising world have remained healthy, says a new report by ContentNext Media.
The "Online Advertising Deals Report" focuses on activity between the second quarter of 2007 and the second quarter of 2008. During the period, there were 160 venture capital investments in the industry, according to the report. Most but not all of those -- 137 -- revealed financial information; disclosed investments added up to more than $1.9 billion.
ContentNext estimates the overall investment in online ad companies during the period -- including the investments where money wasn't revealed -- totaled more than $2.1 billion with the average investment coming in at about $14 million.
http://www.paidcontent.org/entry/419-our-newest-report-online-advertising-vc-and-ma-deals-in-the-last-year
VC Investments: -- Total number of investments:160 -- Total number of disclosed investments: 137 valued at $1,925,830,000 -- Average investment size: $14,057,153 -- Best estimated value of overall investment in the space (disclosed and undisclosed): $2,126,620,000
Acquisitions: -- Total number of acquisitions: 100 -- Total number of disclosed acquisitions: 46 valued at $17,535,320,000 -- Average acquisition size: $327,313,415 -- Best estimated value of overall transaction in the space (disclosed and undisclosed): $20,594,510,000
The charts below provide a topline overview of how the money was spent (click thumbnails for better view):
Despite a weakening U.S. economy during the past year, the level of investment deals and acquisitions involving companies in the online advertising world have remained healthy, says a new report by ContentNext Media.
The "Online Advertising Deals Report" focuses on activity between the second quarter of 2007 and the second quarter of 2008. During the period, there were 160 venture capital investments in the industry, according to the report. Most but not all of those -- 137 -- revealed financial information; disclosed investments added up to more than $1.9 billion.
ContentNext estimates the overall investment in online ad companies during the period -- including the investments where money wasn't revealed -- totaled more than $2.1 billion with the average investment coming in at about $14 million.
http://www.paidcontent.org/entry/419-our-newest-report-online-advertising-vc-and-ma-deals-in-the-last-year
VC Investments: -- Total number of investments:160 -- Total number of disclosed investments: 137 valued at $1,925,830,000 -- Average investment size: $14,057,153 -- Best estimated value of overall investment in the space (disclosed and undisclosed): $2,126,620,000
Acquisitions: -- Total number of acquisitions: 100 -- Total number of disclosed acquisitions: 46 valued at $17,535,320,000 -- Average acquisition size: $327,313,415 -- Best estimated value of overall transaction in the space (disclosed and undisclosed): $20,594,510,000
The charts below provide a topline overview of how the money was spent (click thumbnails for better view):
WPP Sets Up Digital Production Arm
http://www.adweek.com/aw/content_display/news/agency/e3ibac48fa138167a13bf21f347a452edf5
WPP Group is setting up an offshore digital production arm as a shared resource to build Web assets for its agencies.
Called Deliver, the unit will use WPP's capabilities in Asia, Eastern Europe, Latin America and South Africa to build Web site wire frames and resize banner ads in cheap labor markets. It has about 700 employees, WPP said.
"Clients are doing more online, and their budgets generally aren't increasing," said Prescott, who spent four years at Digitas. "It often doesn't make sense to do all of the digital production in the local area. That's not to say you shouldn't do any. An awful lot of it can be done offshore, cost effectively and at higher quality."
WPP is following in the footsteps of rival Publicis Groupe, which in May 2007 set up a digital production unit called Prodigious Worldwide. The group was split off from Digitas and is headed by Corey Torrence. It is now part of VivaKi, a group Publicis set up to manage its digital assets.Deliver's capabilities will remain part of the respective agencies, but itWill build a common platform to match shops with production assets. Wherever possible, teams will work in the similar time zones, Prescott said.
"It's not IT outsourcing," he said. "There's a higher level of collaboration required of the teams because of the creative nature of the work."
Many digital agencies already have offshore production capabilities. For instance, WPP's Schematic has staff in Costa Rica and Studiocom has personnel in Colombia. Deliver will draw on the production capabilities of several other WPP shops, including Ogilvy, Zaaz, Agenda in China and Aqua in South Africa.
WPP Group is setting up an offshore digital production arm as a shared resource to build Web assets for its agencies.
Called Deliver, the unit will use WPP's capabilities in Asia, Eastern Europe, Latin America and South Africa to build Web site wire frames and resize banner ads in cheap labor markets. It has about 700 employees, WPP said.
"Clients are doing more online, and their budgets generally aren't increasing," said Prescott, who spent four years at Digitas. "It often doesn't make sense to do all of the digital production in the local area. That's not to say you shouldn't do any. An awful lot of it can be done offshore, cost effectively and at higher quality."
WPP is following in the footsteps of rival Publicis Groupe, which in May 2007 set up a digital production unit called Prodigious Worldwide. The group was split off from Digitas and is headed by Corey Torrence. It is now part of VivaKi, a group Publicis set up to manage its digital assets.Deliver's capabilities will remain part of the respective agencies, but itWill build a common platform to match shops with production assets. Wherever possible, teams will work in the similar time zones, Prescott said.
"It's not IT outsourcing," he said. "There's a higher level of collaboration required of the teams because of the creative nature of the work."
Many digital agencies already have offshore production capabilities. For instance, WPP's Schematic has staff in Costa Rica and Studiocom has personnel in Colombia. Deliver will draw on the production capabilities of several other WPP shops, including Ogilvy, Zaaz, Agenda in China and Aqua in South Africa.
Publicis Buys Digital Marcom Shop PBJS
http://www.adweek.com/aw/content_display/news/agency/e3i666fc0408ab465aa4eb685dd49f436dc
Ever-acquisitive Publicis Groupe has purchased Seattle-based digital marketing company PBJS. That shop's largest client is Microsoft.
The 26-person shop specializes in multi-channel strategic communications and works to cultivate sustainable relationships between brands and their audiences. Events management, interactive media and branded entertainment are all areas of PBJS' expertise.
Microsoft is PBJS' signature account. It produces internal and external events for the software giant. PBJS most visible work has been in the realm of online book promotions for best-sellers like Tom Friedman's The World Is Flat, for which it helped devise a cross-channel episodic extension with MSN, MSNBC and MSNBC.com. AT&T, Intel, Smart Balance Foods and Sephora are also clients.The agency will operate as an autonomous unit of Publicis Events Worldwide, providing video production, Webcasts and interactive exhibition services.
Ever-acquisitive Publicis Groupe has purchased Seattle-based digital marketing company PBJS. That shop's largest client is Microsoft.
The 26-person shop specializes in multi-channel strategic communications and works to cultivate sustainable relationships between brands and their audiences. Events management, interactive media and branded entertainment are all areas of PBJS' expertise.
Microsoft is PBJS' signature account. It produces internal and external events for the software giant. PBJS most visible work has been in the realm of online book promotions for best-sellers like Tom Friedman's The World Is Flat, for which it helped devise a cross-channel episodic extension with MSN, MSNBC and MSNBC.com. AT&T, Intel, Smart Balance Foods and Sephora are also clients.The agency will operate as an autonomous unit of Publicis Events Worldwide, providing video production, Webcasts and interactive exhibition services.
68 percent of respondents said they adopt new techniques 'only after they're proven'
http://www.adweek.com/aw/content_display/news/digital/e3ic85eae03c2abe696988774ea091e3319
Forrester's annual report on interactive marketing channels, based on a survey of 333 marketers, found strong and growing interest in relatively all new channels such as social media, online video and user-generated content. Tactics involving social networks, podcasts and user-generated content all showed 100 percent increases in marketer use compared to a similar survey conducted by Forrester last year.
Yet, that enthusiasm was tempered by the pressure to measure the impact of such initiatives in new channels without established metrics. For example, 68 percent of respondents said they adopt new techniques "only after they're proven."
That tends to benefit Internet marketing standbys like search and display ads and e-mail marketing, while newer methods of reaching consumers don't fare as well. In fact, Forrester notes that 15 percent of respondents said they "don't know" their goals for widget and mobile marketing efforts.
That said, measurement is a challenge for most forms of Internet marketing. Over half said they struggle to properly gauge search marketing, reputedly the most accountable online tactic. For online video, 58 percent said measuring effectiveness was the top challenge.
Forrester's annual report on interactive marketing channels, based on a survey of 333 marketers, found strong and growing interest in relatively all new channels such as social media, online video and user-generated content. Tactics involving social networks, podcasts and user-generated content all showed 100 percent increases in marketer use compared to a similar survey conducted by Forrester last year.
Yet, that enthusiasm was tempered by the pressure to measure the impact of such initiatives in new channels without established metrics. For example, 68 percent of respondents said they adopt new techniques "only after they're proven."
That tends to benefit Internet marketing standbys like search and display ads and e-mail marketing, while newer methods of reaching consumers don't fare as well. In fact, Forrester notes that 15 percent of respondents said they "don't know" their goals for widget and mobile marketing efforts.
That said, measurement is a challenge for most forms of Internet marketing. Over half said they struggle to properly gauge search marketing, reputedly the most accountable online tactic. For online video, 58 percent said measuring effectiveness was the top challenge.
Kellogg: Digital ROI Surpasses That of TV
"It's still relatively early in our learning," Mark Baynes, chief marketing officer at the Battle Creek, Mich., company told the Lehman Bros. Back to School Consumer Conference during a discussion on how Kellogg is trying to increase advertising and marketing efficacy. "But analysis of the Special K initiative of the last 18 months showed digital media exceeding that of broadcast ROI."
Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year. Mr. Baynes said his company spends an additional $300 million on promotional marketing.
Over the past year, Kellogg has been praised for sticking with its advertising spending despite the recession. The company has credited its brand-building efforts with its ability pass some of the heavy commodity-cost increases onto the consumer.
http://adage.com/article?article_id=130747
Kellogg crossed the $1 billion benchmark on ad spending during 2007, and its outlay is set to increase this year. Mr. Baynes said his company spends an additional $300 million on promotional marketing.
Over the past year, Kellogg has been praised for sticking with its advertising spending despite the recession. The company has credited its brand-building efforts with its ability pass some of the heavy commodity-cost increases onto the consumer.
http://adage.com/article?article_id=130747
Friday, August 22, 2008
Out of home spending increasing
http://www.nytimes.com/2008/08/15/business/media/15adco.html
The ardor to reach consumers outside the home — and outside the realm of traditional media like television — continues to grow among marketers. They hope to fight back against technologies like digital video recorders, which make it easier to avoid conventional advertisements like commercials.
Out-of-home media was once commonly known as outdoor media, reflecting its roots in billboards, posters and signs. The term has been changed to reflect the expansion into places like airports, offices, malls, schools and health clubs, where the ads are inside but not inside the home.
That has also inspired another advertising term, place-based media.
The new places for ads — as well as the addition of digital and video capabilities to signs, bus shelters, phone kiosks and other sites — are among the reasons ad spending in the out-of-home category are second only to online advertising in growth.
The goal is to engage consumers “during the course of their daily lives in places they go on a frequent basis,” said Rick Sirvaitis, president at StoreBoard Media in New York, which puts ads on the security pedestals at the entrances and exits of retail outlets like drug stores.
“In 36 years in advertising, for the first time I can look people in the eye and guarantee every consumer will be exposed to the message,” Mr. Sirvaitis said, referring to a StoreBoard sign, “because you can’t miss it.”
The ardor to reach consumers outside the home — and outside the realm of traditional media like television — continues to grow among marketers. They hope to fight back against technologies like digital video recorders, which make it easier to avoid conventional advertisements like commercials.
Out-of-home media was once commonly known as outdoor media, reflecting its roots in billboards, posters and signs. The term has been changed to reflect the expansion into places like airports, offices, malls, schools and health clubs, where the ads are inside but not inside the home.
That has also inspired another advertising term, place-based media.
The new places for ads — as well as the addition of digital and video capabilities to signs, bus shelters, phone kiosks and other sites — are among the reasons ad spending in the out-of-home category are second only to online advertising in growth.
The goal is to engage consumers “during the course of their daily lives in places they go on a frequent basis,” said Rick Sirvaitis, president at StoreBoard Media in New York, which puts ads on the security pedestals at the entrances and exits of retail outlets like drug stores.
“In 36 years in advertising, for the first time I can look people in the eye and guarantee every consumer will be exposed to the message,” Mr. Sirvaitis said, referring to a StoreBoard sign, “because you can’t miss it.”
Macy's, Wal-Mart invest in marketing, despite sour economy
Macy's, Wal-Mart invest in marketing, despite sour economyMacy's and Wal-Mart are not letting the troubled economy affect their spending on advertising and marketing. Macy's is working with research firm Dunnhumby to learn how to better target its various demographics to turn around its second-quarter sales drop, while Wal-Mart is ramping up its marketing and in-store communications in the second half of the year as it seeks to build upon a 10% hike in second-quarter sales and a 17% spike in profits.
For ad agencies, the Asian prize is India
http://www.iht.com/articles/2008/08/11/business/ad11.php
Most of the big Western agency groups, led by WPP, have been operating in India for years. But they face new competition from smaller agencies that have challenged them elsewhere. At least four so-called hot shops - boutique firms with only a handful of offices, compared with dozens or hundreds for the big agency networks - have recently opened, or announced plans to open, offices in India.
Most of the big Western agency groups, led by WPP, have been operating in India for years. But they face new competition from smaller agencies that have challenged them elsewhere. At least four so-called hot shops - boutique firms with only a handful of offices, compared with dozens or hundreds for the big agency networks - have recently opened, or announced plans to open, offices in India.
Media Outlets Losing Money From a Lack of Auto Ads
http://www.nytimes.com/2008/08/11/business/media/11auto.html?_r=1&adxnnl=1&oref=slogin&adxnnlx=1219429568-uVAy+yEJP1QsmYtZkL1DEg
In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence.
And it’s not just the local newspaper or television station that is hurting from cutbacks in advertising by the local car dealerships.
In recent earnings reports from the major media companies, like Viacom and Time Warner, executives mentioned the downturn in the auto industry as one reason for lagging revenue at cable networks and magazines.
Newspapers were the hardest hit, losing $131 million in auto advertising, much of the decline coming from local dealerships that are having trouble moving cars off their lots.
“You’re talking about cars sitting on lots for 90 days,” said Mort Goldstrom, vice president for advertising at the Newspaper Association of America. “The dealers are saying, ‘I have cars that won’t move. And I can’t advertise.’ It’s because of cash flow.”
For the year, auto advertising dollars flowing to media outlets could decline by close to $3 billion, according to Sanford C. Bernstein & Company, to about $15 billon for the full year. Auto advertising peaked at close to $24 billion in 2004. Auto sales are at their lowest since 1993, according to Sanford C. Bernstein.
According to the newspaper association’s own data, the share of newspaper advertising from automakers is shrinking rapidly: in the first quarter, auto advertising represented just 2.8 percent of all national advertising in newspapers. As recently as 2005, the figure was more than 10 percent each quarter.
In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence.
And it’s not just the local newspaper or television station that is hurting from cutbacks in advertising by the local car dealerships.
In recent earnings reports from the major media companies, like Viacom and Time Warner, executives mentioned the downturn in the auto industry as one reason for lagging revenue at cable networks and magazines.
Newspapers were the hardest hit, losing $131 million in auto advertising, much of the decline coming from local dealerships that are having trouble moving cars off their lots.
“You’re talking about cars sitting on lots for 90 days,” said Mort Goldstrom, vice president for advertising at the Newspaper Association of America. “The dealers are saying, ‘I have cars that won’t move. And I can’t advertise.’ It’s because of cash flow.”
For the year, auto advertising dollars flowing to media outlets could decline by close to $3 billion, according to Sanford C. Bernstein & Company, to about $15 billon for the full year. Auto advertising peaked at close to $24 billion in 2004. Auto sales are at their lowest since 1993, according to Sanford C. Bernstein.
According to the newspaper association’s own data, the share of newspaper advertising from automakers is shrinking rapidly: in the first quarter, auto advertising represented just 2.8 percent of all national advertising in newspapers. As recently as 2005, the figure was more than 10 percent each quarter.
53% of Marketers Will Reduce Ad Budgets
http://adage.com/cmostrategy/article?article_id=130490
The latest trend in advertising: budget shearing. So says a recent survey from the Association of National Advertisers, released today. The majority response from the small-scale survey (a neat 100 respondents) is that marketers across industries are bracing their ad budgets for some form of reduction. Fifty-three percent of those polled said they expected a cutback within the next six months; 87% said they're already weathering the pinch.
"We've seen this before," Bob Liodice, president-CEO of the ANA, told Ad Age. "Ad spending tracks remarkably close to GDP."
Nothing, it seems, is safe. Of those planning cuts 69% said they'll reduce media budgets; 63% said they'll reduce production budgets; 63% will pressure agencies to reduce expenses; 63% will restrict travel and other expenses; and 61% said they will eliminate or delay new projects.
However, such cutbacks might not be the necessary route. According to Mr. Liodice, marketers who have done just the opposite in the face of economic slowdowns -- that is, increased their spending -- saw more sustained growth when they emerged from the storm.
"It's a great opportunity to capture some shared market," Mr. Liodice said. "Effective marketing spending during economic downturns is not about how much you spend, but also how you spend it."
The latest trend in advertising: budget shearing. So says a recent survey from the Association of National Advertisers, released today. The majority response from the small-scale survey (a neat 100 respondents) is that marketers across industries are bracing their ad budgets for some form of reduction. Fifty-three percent of those polled said they expected a cutback within the next six months; 87% said they're already weathering the pinch.
"We've seen this before," Bob Liodice, president-CEO of the ANA, told Ad Age. "Ad spending tracks remarkably close to GDP."
Nothing, it seems, is safe. Of those planning cuts 69% said they'll reduce media budgets; 63% said they'll reduce production budgets; 63% will pressure agencies to reduce expenses; 63% will restrict travel and other expenses; and 61% said they will eliminate or delay new projects.
However, such cutbacks might not be the necessary route. According to Mr. Liodice, marketers who have done just the opposite in the face of economic slowdowns -- that is, increased their spending -- saw more sustained growth when they emerged from the storm.
"It's a great opportunity to capture some shared market," Mr. Liodice said. "Effective marketing spending during economic downturns is not about how much you spend, but also how you spend it."
Contrary Outlook: Online Ad Forecast Positive
http://www.clickz.com/showPage.html?page=3630609
Growth of the Internet ad spend has risen quickly for several years, though many recent ad spending reports and forecasts show signs of a slowdown in the growth rate. An IDC Quarterly Wrap-Up Model report of the U.S. online advertising market details an advertising increase in spending, while slightly slower than in years past.
For the second quarter of 2008, there was a 20.1 percent increase in online advertising spending, totaling $7.01 billion, up from $5.84 billion in the same period the previous year.
A recent report from the IAB and PricewaterhouseCoopers shows a 1.7 percent drop in ad revenue in the first three months of 2008 compared to the last three months of 2007. ZenithOptimedia shows a more positive global outlook than for the U.S. market.
"When you read media accounts at what online advertising is doing, they are very downcast," said Karsten Weide, program director, Digital Media and Entertainment. "The truth is if you look at the numbers, they are not all true." He said the growth is slower, but it is still growing at roughly 20 percent per quarter.
Growth of the Internet ad spend has risen quickly for several years, though many recent ad spending reports and forecasts show signs of a slowdown in the growth rate. An IDC Quarterly Wrap-Up Model report of the U.S. online advertising market details an advertising increase in spending, while slightly slower than in years past.
For the second quarter of 2008, there was a 20.1 percent increase in online advertising spending, totaling $7.01 billion, up from $5.84 billion in the same period the previous year.
A recent report from the IAB and PricewaterhouseCoopers shows a 1.7 percent drop in ad revenue in the first three months of 2008 compared to the last three months of 2007. ZenithOptimedia shows a more positive global outlook than for the U.S. market.
"When you read media accounts at what online advertising is doing, they are very downcast," said Karsten Weide, program director, Digital Media and Entertainment. "The truth is if you look at the numbers, they are not all true." He said the growth is slower, but it is still growing at roughly 20 percent per quarter.
Friday, August 8, 2008
Blinkx makes $39 million approach to Miva
http://www.reuters.com/article/marketsNews/idINL869961320080808?rpc=44
Blinkx Plc (BLNX.L: Quote, Profile, Research, Stock Buzz), an Internet video search company, has proposed buying U.S. search-based ad network Miva (MIVA.O: Quote, Profile, Research, Stock Buzz) for $39 million to accelerate its expansion in targeted Web advertising.
The approach, which has been made in a letter to Miva's board, proposes paying $1.20 a share -- a 54 percent premium on Miva's closing price on Thursday -- and would be funded entirely in cash, he said.
Blinkx Plc (BLNX.L: Quote, Profile, Research, Stock Buzz), an Internet video search company, has proposed buying U.S. search-based ad network Miva (MIVA.O: Quote, Profile, Research, Stock Buzz) for $39 million to accelerate its expansion in targeted Web advertising.
The approach, which has been made in a letter to Miva's board, proposes paying $1.20 a share -- a 54 percent premium on Miva's closing price on Thursday -- and would be funded entirely in cash, he said.
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