http://www.mediaweek.com/mw/content_display/news/digital-downloads/metrics/e3iac49c752f1f098716f924554821618bc
The percentage of media budgets allocate to interactive media, which based on GroupM’s definition includes online advertising, mobile and gaming, has climbed from just 8 percent in 2005 to 14 percent this year.
Friday, June 27, 2008
McKinney Buys Back Agency From Havas
http://biz.yahoo.com/prnews/080626/ukth009.html?.v=101
"We've enjoyed a very cordial and autonomous working relationship with Havas and are proud of the contributions we have delivered to them," said Brad W. Brinegar, McKinney chairman and CEO. "But we have long wished to be able to compete as an independent agency, and we were thrilled when this opportunity presented itself."
http://www.adweek.com/aw/content_display/news/agency/e3i21c2a612a4549e5b83126fbad24d910a?pn=1
McKinney's estimated revenue in 2007 was $25 million, down almost 35 percent from the previous 12-month period, based mainly on those two client departures. Roughly 35 percent of the McKinney's revenue derives from its digital operations.
"We've enjoyed a very cordial and autonomous working relationship with Havas and are proud of the contributions we have delivered to them," said Brad W. Brinegar, McKinney chairman and CEO. "But we have long wished to be able to compete as an independent agency, and we were thrilled when this opportunity presented itself."
http://www.adweek.com/aw/content_display/news/agency/e3i21c2a612a4549e5b83126fbad24d910a?pn=1
McKinney's estimated revenue in 2007 was $25 million, down almost 35 percent from the previous 12-month period, based mainly on those two client departures. Roughly 35 percent of the McKinney's revenue derives from its digital operations.
Bowne to Acquire Capital Systems, Inc.
http://biz.yahoo.com/iw/080626/0411085.html
Capital specializes in the creation, filing and distribution of time-sensitive financial communications by providing complete document production services, including composition, filing, printing, distribution and electronic access. With 2007 revenue of approximately $48 million, Capital enables Bowne to further extend its reach into its key existing verticals: investment management, compliance reporting and capital markets services. Capital provides mutual fund quarterly and annual reporting and disclosure documents, such as SEC filings, proxies and 10-Ks, as well as capital markets services for equity offerings, debt deals, securitizations, and mergers and acquisitions.
Capital specializes in the creation, filing and distribution of time-sensitive financial communications by providing complete document production services, including composition, filing, printing, distribution and electronic access. With 2007 revenue of approximately $48 million, Capital enables Bowne to further extend its reach into its key existing verticals: investment management, compliance reporting and capital markets services. Capital provides mutual fund quarterly and annual reporting and disclosure documents, such as SEC filings, proxies and 10-Ks, as well as capital markets services for equity offerings, debt deals, securitizations, and mergers and acquisitions.
Monday, June 23, 2008
Top 100's Ad-Spend Growth Grinds to Halt
http://adage.com/lna08/article?article_id=127793
CHICAGO (AdAge.com) -- The Top 100 U.S. advertisers last year increased ad spending by just 1.7%, while measured media spending rose a negligible 0.3% for major marketers -- the most sluggish growth since the 2001 recession. And while estimated spending in unmeasured disciplines -- largely marketing services such as promotion and direct marketing -- did better, it still increased only 3.6%, well below the typical growth seen in recent years.
CHICAGO (AdAge.com) -- The Top 100 U.S. advertisers last year increased ad spending by just 1.7%, while measured media spending rose a negligible 0.3% for major marketers -- the most sluggish growth since the 2001 recession. And while estimated spending in unmeasured disciplines -- largely marketing services such as promotion and direct marketing -- did better, it still increased only 3.6%, well below the typical growth seen in recent years.
Friday, June 20, 2008
Thursday, June 19, 2008
Glam Media to Announce Acquisition
http://online.wsj.com/public/article/SB121367598185980369.html?mod=dist_smartbrief
Glam Media, the largest U.S. Web property aimed at women, plans to announce Tuesday that it has acquired London-based digital-marketing firm Monetise Ltd. to jumpstart its global ad-selling. Within a year, Glam says it will have ad operations up and running in the United Kingdom, Germany, France, Japan, India and China.
Glam Media, the largest U.S. Web property aimed at women, plans to announce Tuesday that it has acquired London-based digital-marketing firm Monetise Ltd. to jumpstart its global ad-selling. Within a year, Glam says it will have ad operations up and running in the United Kingdom, Germany, France, Japan, India and China.
E-mail Outpaces Postal Mail: DMA Report
http://promomagazine.com/research/email_outpaces_postal_mail_0618/
The 126-page report, titled “The Integrated Marketing Media Mix,” found that marketers are using more e-mail and other digital media formats. E-mail is used by 79.1% of marketers surveyed, while postal direct mail is used by 75.4% of marketers.
“Even as marketers are bringing more digital media into their integrated campaigns, traditional media remain a core component of the marketing mix,” Yoram Wurmser, DMA research manager and author of the report, said in statement.
Other findings indicate that telemarketing is more widely used for business-to-business than consumer targeted marketing, 42.7% vs. 29.3%.
The 126-page report, titled “The Integrated Marketing Media Mix,” found that marketers are using more e-mail and other digital media formats. E-mail is used by 79.1% of marketers surveyed, while postal direct mail is used by 75.4% of marketers.
“Even as marketers are bringing more digital media into their integrated campaigns, traditional media remain a core component of the marketing mix,” Yoram Wurmser, DMA research manager and author of the report, said in statement.
Other findings indicate that telemarketing is more widely used for business-to-business than consumer targeted marketing, 42.7% vs. 29.3%.
Microsoft acquisition targets television ad market
Not long after closing the door on the pursuit of Yahoo! Inc. [YHOO], an acquisition that would have boosted its online advertising business, Microsoft Corp. [MSFT] is making another purchase -- albeit much smaller -- that could enhance its ad presence in an entirely different way. The software giant is acquiring Navic Networks Inc., a venture-backed company that makes software to enable the placement of targeted ads for television.
http://www.thedeal.com/techconfidential/money-out/blog/money-out/microsoft-acquisition-targets.php
http://www.thedeal.com/techconfidential/money-out/blog/money-out/microsoft-acquisition-targets.php
Hershey ad spending to rise
http://www.chicagotribune.com/business/chi-wed-hershey-jun18,0,7044653.story
Hershey Co., the biggest U.S. chocolate-maker, will spend more to promote brands such as Reese's Peanut Butter Cups and Hershey's Kisses to compete for candy buyers' taste buds when Mars Inc. buys Chicago-based Wm. Wrigley Jr. Co.Advertising will rise by 20 percent in 2008 and 2009 as it invests in brands to counter competition from the pending merger of its two biggest rivals, the Hershey, Pa.-based company said Tuesday.
Hershey Co., the biggest U.S. chocolate-maker, will spend more to promote brands such as Reese's Peanut Butter Cups and Hershey's Kisses to compete for candy buyers' taste buds when Mars Inc. buys Chicago-based Wm. Wrigley Jr. Co.Advertising will rise by 20 percent in 2008 and 2009 as it invests in brands to counter competition from the pending merger of its two biggest rivals, the Hershey, Pa.-based company said Tuesday.
PWC's Global Entertainment and Media Outlook: 2008-2012
http://www.pwc.com/extweb/pwcpublications.nsf/docid/5AC172F2C9DED8F5852570210044EEA7
"In Canada, the wired Internet advertising market will expand by 19.8 percent compounded annually, from $1.2 billion in 2007 to $3.1 billion in 2012."
"The DVR household universe in the US more than doubled in 2007, with household penetration rising from 9.9 percent to 20.6 percent. However, less than half of DVR users actually skip ads in playback, and over the long run the DVR should have a positive impact on advertising. "
http://www.mediaincanada.com/articles/mic/20080619/pwcreport.html
Internet:
In Canada, Internet advertising (both wired and mobile) grew 33.2% to $1.3 billion in 2007. By 2012, PwC reports Internet advertising will likely remain Canada's fastest-growing segment at 21.1% (to $3.4 billion). That's higher than the company's estimate for global growth of 19.5% through to 2012.
The television advertising market is projected to expand at a 3.6% rate to $3.4 billion in 2012 from $2.9 billion in 2007. Terrestrial advertising will grow 3% to $2.4 billion in 2012 from $2 billion in 2007. However, specialty channel advertising will be the faster-growing sector, with a projected 4.8% increase to $1.1 billion from $847 million in 2007.
Radio and out-of-home advertising grew by 11% in 2007 to $1.7 billion, and is expected to continue at a good pace, even if it does move downward by 10.6% to $2.9 billion by 2012. OOH advertising will expand at a 6.6% rate, rising from $368 million in 2007 to $507 million in 2012.
"In Canada, the wired Internet advertising market will expand by 19.8 percent compounded annually, from $1.2 billion in 2007 to $3.1 billion in 2012."
"The DVR household universe in the US more than doubled in 2007, with household penetration rising from 9.9 percent to 20.6 percent. However, less than half of DVR users actually skip ads in playback, and over the long run the DVR should have a positive impact on advertising. "
http://www.mediaincanada.com/articles/mic/20080619/pwcreport.html
Internet:
In Canada, Internet advertising (both wired and mobile) grew 33.2% to $1.3 billion in 2007. By 2012, PwC reports Internet advertising will likely remain Canada's fastest-growing segment at 21.1% (to $3.4 billion). That's higher than the company's estimate for global growth of 19.5% through to 2012.
The television advertising market is projected to expand at a 3.6% rate to $3.4 billion in 2012 from $2.9 billion in 2007. Terrestrial advertising will grow 3% to $2.4 billion in 2012 from $2 billion in 2007. However, specialty channel advertising will be the faster-growing sector, with a projected 4.8% increase to $1.1 billion from $847 million in 2007.
Radio and out-of-home advertising grew by 11% in 2007 to $1.7 billion, and is expected to continue at a good pace, even if it does move downward by 10.6% to $2.9 billion by 2012. OOH advertising will expand at a 6.6% rate, rising from $368 million in 2007 to $507 million in 2012.
USA lags on cellphones' marketing potential
http://www.usatoday.com/money/advertising/2008-06-18-cannes-mobile-marketing_N.htm
Mobile is "still very underrepresented by brands in terms of their budget. You look at the capability and the opportunity and how the budgets are being allocated, it's laughable," says Giovanni Maruca, director of Paramount Digital Entertainment's mobile and interactive Europe unit. He's now running a mobile promotion in 12 countries for Indiana Jones and the Kingdom of the Crystal Skull.
Mobile is "still very underrepresented by brands in terms of their budget. You look at the capability and the opportunity and how the budgets are being allocated, it's laughable," says Giovanni Maruca, director of Paramount Digital Entertainment's mobile and interactive Europe unit. He's now running a mobile promotion in 12 countries for Indiana Jones and the Kingdom of the Crystal Skull.
Web Ad Spending Continues Ascent
http://www.mediaweek.com/mw/content_display/news/digital-downloads/metrics/e3i79825b157551fdb94d51b10fd6f2bcad
Online ad spending continues to climb at a healthy pace, though the revenue numbers recorded during first quarter of 2008 snapped a 13-quarter streak of record growth.Internet advertising hit $5.8 billion in the first quarter, the second largest spending period ever, according to the latest Interactive Advertising Bureau report, which is compiled in conjunction with PricewaterhouseCoopers. During the fourth quarter of 2007, the industry pulled in $5.9 billion, it’s highest revenue total ever, marking the 13th consecutive quarter the industry could claim such a statement.While 18 percent growth would certainly be considered solid, particularly when compared to other segments of media, it’s possible that the Web is maturing to the point that it’s ad revenue will be effected by seasonality. Or it’s possible that the industry is feeling the slight effects of a slowed economy.However, analysts still predict that 2008 will be a strong one for the medium. “The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future,” said David Silverman, partner, Assurance, PricewaterhouseCoopers. “The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising.”
Online ad spending continues to climb at a healthy pace, though the revenue numbers recorded during first quarter of 2008 snapped a 13-quarter streak of record growth.Internet advertising hit $5.8 billion in the first quarter, the second largest spending period ever, according to the latest Interactive Advertising Bureau report, which is compiled in conjunction with PricewaterhouseCoopers. During the fourth quarter of 2007, the industry pulled in $5.9 billion, it’s highest revenue total ever, marking the 13th consecutive quarter the industry could claim such a statement.While 18 percent growth would certainly be considered solid, particularly when compared to other segments of media, it’s possible that the Web is maturing to the point that it’s ad revenue will be effected by seasonality. Or it’s possible that the industry is feeling the slight effects of a slowed economy.However, analysts still predict that 2008 will be a strong one for the medium. “The fundamentals of interactive advertising spend continues to be positive and I would expect to see continued growth in the future,” said David Silverman, partner, Assurance, PricewaterhouseCoopers. “The cyclical fourth quarter to first quarter drop in traditional media advertising spend, combined with an overall economic slowdown, resulted in a not so unexpected first quarter slowdown in the growth of online advertising.”
Monday, June 16, 2008
Greenfield Online Enters into Definitive Agreement to be Acquired by Quadrangle
http://biz.yahoo.com/bw/080616/20080616005469.html?.v=1
Greenfield Online Enters into Definitive Agreement to be Acquired by QuadrangleMonday June 16, 6:30 am ET
WILTON, Conn.--(BUSINESS WIRE)--Greenfield Online, Inc. (Nasdaq: SRVY - News) (“Greenfield Online” or the “Company”) today announced that it has entered into a merger agreement to be acquired by an entity affiliated with Quadrangle Group LLC (together with its affiliates “Quadrangle”), a private investment firm focused on the media and communications industries. Under the terms of the merger agreement, Quadrangle will acquire all of the outstanding common stock of Greenfield Online, Inc. for $15.50 per share in cash, or a total equity value of approximately $426 million. The purchase price represents a premium of approximately 17% over the Company’s closing share price of $13.28 on June 13, 2008 and a premium of approximately 26% over the average closing share price during the prior 30 days.
The Board of Directors of Greenfield Online has unanimously approved the merger and recommends to stockholders that they vote in favor of the merger.
Albert Angrisani, Greenfield Online’s President and Chief Executive Officer said: “Clearly Quadrangle values Greenfield Online’s two growing and profitable businesses, Comparison Shopping and Internet Survey Solutions, along with their global leadership position, satisfied clients and talented employees. We expect the transition will be positive for our business, our customers and employees, and we look forward to leveraging Quadrangle’s expertise in the media, communication and information industries.”
Gordon Holmes, Managing Principal of Quadrangle said: “Having followed Greenfield Online closely over an extended period, we became increasingly impressed with its international leadership position in online comparison shopping and survey research, as well as its record of strong growth. Using our New York and London offices and our new office in Silicon Valley led by Dan Rosensweig, we were able to fully analyze and appreciate the strength of Greenfield’s global platform, and determine that it represents an attractive investment opportunity for Quadrangle, consistent with our ongoing focus on the media and communications industry.”
Dan Rosensweig, Operating Principal of Quadrangle said: “Greenfield Online’s internet-based business differentiates itself with a strategic position based on developing strong communities and offering valuable review and survey content. I am confident that with Quadrangle’s extensive experience in online businesses, we will be able to help the company to expand its activities and continue to achieve significant growth.”
The merger agreement is subject to the approval of the Company’s stockholders as well as customary closing conditions and regulatory approval. The transaction will be financed by a combination of equity provided by Quadrangle and debt, for which Quadrangle has received financing commitments and cash on hand at the Company. The transaction is expected to close in the late third quarter or fourth quarter of 2008.
Deutsche Bank Securities Inc. acted as financial advisor to Greenfield Online in connection with the transaction. Kirkpatrick & Lockhart Preston Gates Ellis LLP acted as legal advisor to Greenfield Online. Simpson Thacher & Bartlett LLP acted as legal advisor to Quadrangle.
About Greenfield Online, Inc.
Greenfield Online, Inc. is a global interactive media and services company that collects consumer attitudes about products and services, enabling consumers to reach informed purchasing decisions about the products and services they want to buy; and helping companies better understand their customer in order to formulate effective product marketing strategies. Proprietary, innovative technology enables us to collect these opinions quickly and accurately, and to organize them into actionable form. For more information, visit http://www.greenfield.com/. Through our Ciao comparison shopping portals we gather unique and valuable user-generated content in the form of product and merchant reviews. Visitors to our Ciao portals use these reviews to help make purchasing decisions and we derive revenue from this Internet traffic via e-commerce, merchant referrals, click-throughs, and advertising sales. For more information or to become a member, visit http://www.ciao-group.com/. Through our Greenfield Online and Ciao Surveys websites and affiliate networks, we collect, organize and sell consumer opinions in the form of survey responses to marketing research companies and companies worldwide. For more information, visit http://www.greenfield-ciaosurveys.com/. To take a survey, go to http://www.greenfieldonline.com/.
About Quadrangle Group LLC
Quadrangle Group LLC is a private investment firm with more than $6 billion of assets under management. Quadrangle invests in media and communications companies through separate private and public investment strategies and across all asset classes through its asset management business. All investment strategies seek to maximize value by leveraging the investment team’s extensive experience, knowledge and industry relationships. Quadrangle has offices in New York, London and Silicon Valley and will be opening an office later this year in Hong Kong. For more information, please visit http://www.quadranglegroup.com/.
Greenfield Online Enters into Definitive Agreement to be Acquired by QuadrangleMonday June 16, 6:30 am ET
WILTON, Conn.--(BUSINESS WIRE)--Greenfield Online, Inc. (Nasdaq: SRVY - News) (“Greenfield Online” or the “Company”) today announced that it has entered into a merger agreement to be acquired by an entity affiliated with Quadrangle Group LLC (together with its affiliates “Quadrangle”), a private investment firm focused on the media and communications industries. Under the terms of the merger agreement, Quadrangle will acquire all of the outstanding common stock of Greenfield Online, Inc. for $15.50 per share in cash, or a total equity value of approximately $426 million. The purchase price represents a premium of approximately 17% over the Company’s closing share price of $13.28 on June 13, 2008 and a premium of approximately 26% over the average closing share price during the prior 30 days.
The Board of Directors of Greenfield Online has unanimously approved the merger and recommends to stockholders that they vote in favor of the merger.
Albert Angrisani, Greenfield Online’s President and Chief Executive Officer said: “Clearly Quadrangle values Greenfield Online’s two growing and profitable businesses, Comparison Shopping and Internet Survey Solutions, along with their global leadership position, satisfied clients and talented employees. We expect the transition will be positive for our business, our customers and employees, and we look forward to leveraging Quadrangle’s expertise in the media, communication and information industries.”
Gordon Holmes, Managing Principal of Quadrangle said: “Having followed Greenfield Online closely over an extended period, we became increasingly impressed with its international leadership position in online comparison shopping and survey research, as well as its record of strong growth. Using our New York and London offices and our new office in Silicon Valley led by Dan Rosensweig, we were able to fully analyze and appreciate the strength of Greenfield’s global platform, and determine that it represents an attractive investment opportunity for Quadrangle, consistent with our ongoing focus on the media and communications industry.”
Dan Rosensweig, Operating Principal of Quadrangle said: “Greenfield Online’s internet-based business differentiates itself with a strategic position based on developing strong communities and offering valuable review and survey content. I am confident that with Quadrangle’s extensive experience in online businesses, we will be able to help the company to expand its activities and continue to achieve significant growth.”
The merger agreement is subject to the approval of the Company’s stockholders as well as customary closing conditions and regulatory approval. The transaction will be financed by a combination of equity provided by Quadrangle and debt, for which Quadrangle has received financing commitments and cash on hand at the Company. The transaction is expected to close in the late third quarter or fourth quarter of 2008.
Deutsche Bank Securities Inc. acted as financial advisor to Greenfield Online in connection with the transaction. Kirkpatrick & Lockhart Preston Gates Ellis LLP acted as legal advisor to Greenfield Online. Simpson Thacher & Bartlett LLP acted as legal advisor to Quadrangle.
About Greenfield Online, Inc.
Greenfield Online, Inc. is a global interactive media and services company that collects consumer attitudes about products and services, enabling consumers to reach informed purchasing decisions about the products and services they want to buy; and helping companies better understand their customer in order to formulate effective product marketing strategies. Proprietary, innovative technology enables us to collect these opinions quickly and accurately, and to organize them into actionable form. For more information, visit http://www.greenfield.com/. Through our Ciao comparison shopping portals we gather unique and valuable user-generated content in the form of product and merchant reviews. Visitors to our Ciao portals use these reviews to help make purchasing decisions and we derive revenue from this Internet traffic via e-commerce, merchant referrals, click-throughs, and advertising sales. For more information or to become a member, visit http://www.ciao-group.com/. Through our Greenfield Online and Ciao Surveys websites and affiliate networks, we collect, organize and sell consumer opinions in the form of survey responses to marketing research companies and companies worldwide. For more information, visit http://www.greenfield-ciaosurveys.com/. To take a survey, go to http://www.greenfieldonline.com/.
About Quadrangle Group LLC
Quadrangle Group LLC is a private investment firm with more than $6 billion of assets under management. Quadrangle invests in media and communications companies through separate private and public investment strategies and across all asset classes through its asset management business. All investment strategies seek to maximize value by leveraging the investment team’s extensive experience, knowledge and industry relationships. Quadrangle has offices in New York, London and Silicon Valley and will be opening an office later this year in Hong Kong. For more information, please visit http://www.quadranglegroup.com/.
Budgets Flatline in First Quarter
http://adage.com/article?article_id=127765
Budgets Flatline in First Quarter
Ad Spending Grows Just 0.6%
By Nat Ives Published: June 16, 2008 NEW YORK (AdAge.com) -- U.S. ad spending grew an anemic 0.6% in the first three months of the year, as a slow economy countered media companies' earlier, brighter hopes for 2008. Bright spots exist -- such as Spanish-language media and prodigious spenders such as PepsiCo -- but even the country's 10 biggest advertisers, half of which boosted ad spending by striking degrees, couldn't combine for more than $4.4 billion, a 1.6% increase. Spending on the top 10 advertising categories, meanwhile, actually fell 1.8%. Even internet display ads, which have been posting the biggest growth rates, tapered off to a tepid, single-digit 8.5%. "All of us are eating off of the plate that's been provided to us by consumers," said Jon Swallen, senior VP-research at TNS Media Intelligence, whose report on the first quarter provided those dreary numbers. "When consumer spending begins to dry up or slow down, it does ripple through and eventually comes back and impact marketers -- and eventually ... begins to impact the volume of marketing activity." Marketers were leaving a lot of ground fallow even before the conventional wisdom decided the U.S. economy was acting recessionary: Every quarter last year turned up little or no growth. But now marketers are worrying about rising food and gas prices, a depressed housing market, tighter credit and growing unemployment. But those aren't the only dynamics pushing marketing money around. Many of the big package-goods conglomerates, including Unilever and ad-spend champ Procter & Gamble, are actually increasing their outlays amid all-new competition for consumers and shelf space. Advertising more may also help prevent price-conscious shoppers from trading down to cheaper brands. Energy crisisFor other reasons entirely, PepsiCo pumped its spending up a whopping 39.5% to $334.4 million. That's the same PepsiCo whose CEO, Indra Nooyi, told a June 11 conference in New York the government wasn't doing enough to counter soaring energy prices. "I don't see anybody in Washington or anywhere saying 'Look, this energy crisis is the biggest one we've had, let's really put the best people to work on figuring out how to reduce the country's dependence on oil,'" she said. But PepsiCo also had a new product to introduce in G2, a low-calorie Gatorade spin-off, said Gary Hemphill, managing director-chief operating officer at the Beverage Marketing Association. "The Gatorade trademark is important to Pepsi and experienced softer-than-usual sales in 2007," he said. "The company is certainly committed to growing that trademark and that's probably why you see the increases in expenditures." Media sellers' side of the equation was no less complicated. Online display advertising grew 8.5% in the first quarter, far slower than the usual 15%. But the deceleration says more about the financial services companies, whose ads had underwritten much of that double-digit growth, than it says about the web, Mr. Swallen said. Spanish-language media fared notably well, up 4.4% for TV and up 14.2% for magazines. Some of the growth can be attributed to the recent, if belated, arrival of good research on Spanish-speaking consumers, said Jacqueline Hernández, chief operating officer at Telemundo Communications and former publisher of People en Español. "It's getting more tools to measure how Spanish language is really effective," Ms. Hernandez said. "And then also looking at the demographic changes and quite frankly the impact that Spanish language is having on pop culture. I mean, when Beyoncé is singing in Spanish, it makes logical sense for this area to grow and for it to continue to grow." The overall story is not so happy, but you can make out the plot pretty well, said Mr. Swallen. "And recognize at the same time that this is cyclical," he said. "This is the current act of the play and there more acts to come. Some of those acts in the future will be happier."
Budgets Flatline in First Quarter
Ad Spending Grows Just 0.6%
By Nat Ives Published: June 16, 2008 NEW YORK (AdAge.com) -- U.S. ad spending grew an anemic 0.6% in the first three months of the year, as a slow economy countered media companies' earlier, brighter hopes for 2008. Bright spots exist -- such as Spanish-language media and prodigious spenders such as PepsiCo -- but even the country's 10 biggest advertisers, half of which boosted ad spending by striking degrees, couldn't combine for more than $4.4 billion, a 1.6% increase. Spending on the top 10 advertising categories, meanwhile, actually fell 1.8%. Even internet display ads, which have been posting the biggest growth rates, tapered off to a tepid, single-digit 8.5%. "All of us are eating off of the plate that's been provided to us by consumers," said Jon Swallen, senior VP-research at TNS Media Intelligence, whose report on the first quarter provided those dreary numbers. "When consumer spending begins to dry up or slow down, it does ripple through and eventually comes back and impact marketers -- and eventually ... begins to impact the volume of marketing activity." Marketers were leaving a lot of ground fallow even before the conventional wisdom decided the U.S. economy was acting recessionary: Every quarter last year turned up little or no growth. But now marketers are worrying about rising food and gas prices, a depressed housing market, tighter credit and growing unemployment. But those aren't the only dynamics pushing marketing money around. Many of the big package-goods conglomerates, including Unilever and ad-spend champ Procter & Gamble, are actually increasing their outlays amid all-new competition for consumers and shelf space. Advertising more may also help prevent price-conscious shoppers from trading down to cheaper brands. Energy crisisFor other reasons entirely, PepsiCo pumped its spending up a whopping 39.5% to $334.4 million. That's the same PepsiCo whose CEO, Indra Nooyi, told a June 11 conference in New York the government wasn't doing enough to counter soaring energy prices. "I don't see anybody in Washington or anywhere saying 'Look, this energy crisis is the biggest one we've had, let's really put the best people to work on figuring out how to reduce the country's dependence on oil,'" she said. But PepsiCo also had a new product to introduce in G2, a low-calorie Gatorade spin-off, said Gary Hemphill, managing director-chief operating officer at the Beverage Marketing Association. "The Gatorade trademark is important to Pepsi and experienced softer-than-usual sales in 2007," he said. "The company is certainly committed to growing that trademark and that's probably why you see the increases in expenditures." Media sellers' side of the equation was no less complicated. Online display advertising grew 8.5% in the first quarter, far slower than the usual 15%. But the deceleration says more about the financial services companies, whose ads had underwritten much of that double-digit growth, than it says about the web, Mr. Swallen said. Spanish-language media fared notably well, up 4.4% for TV and up 14.2% for magazines. Some of the growth can be attributed to the recent, if belated, arrival of good research on Spanish-speaking consumers, said Jacqueline Hernández, chief operating officer at Telemundo Communications and former publisher of People en Español. "It's getting more tools to measure how Spanish language is really effective," Ms. Hernandez said. "And then also looking at the demographic changes and quite frankly the impact that Spanish language is having on pop culture. I mean, when Beyoncé is singing in Spanish, it makes logical sense for this area to grow and for it to continue to grow." The overall story is not so happy, but you can make out the plot pretty well, said Mr. Swallen. "And recognize at the same time that this is cyclical," he said. "This is the current act of the play and there more acts to come. Some of those acts in the future will be happier."
Auto Industry Revs Up Online Spending
http://www.emarketer.com/Article.aspx?id=1006356&src=article_head_sitesearch
No slowdown online
After consistently leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the sector is going in reverse—except on the Internet.
According to figures published in the new eMarketer report, Automotive Marketing Online: Negotiating the Curves, even as new-vehicle sales decline, automotive marketers will spend nearly $3 billion online this year, up 21.6%.
By 2012, automotive online ad spending will top $5.6 billion.
When eMarketer asked Scott Keogh, chief marketing officer at Audi, how much the automaker was increasing its online budget year-over-year, he replied, "We more than doubled our online ad budget in 2007 to about $1.2 million, and it looks like we'll double it again in 2008."
Auto marketers are changing media lanes and following their market.
Research from Capgemini shows that 80% of consumers now consult the Internet at least once during the car-buying process. The firm reported the percentage was 71% in 2006 and 64% in 2004.
In fact, recommendations from family and friends are being replaced in importance by online customer reviews.
Capgemini found that shoppers are now looking for opinions and reviews from total strangers about specific brands, makes and dealers, as well as to discuss their own impressions and experiences.
A joint comScore and the Kelsey Group study showed that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision.
To see what else lies down the road for the industry, download the new eMarketer report, Automotive Marketing Online: Negotiating the Curves, today.
No slowdown online
After consistently leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the sector is going in reverse—except on the Internet.
According to figures published in the new eMarketer report, Automotive Marketing Online: Negotiating the Curves, even as new-vehicle sales decline, automotive marketers will spend nearly $3 billion online this year, up 21.6%.
By 2012, automotive online ad spending will top $5.6 billion.
When eMarketer asked Scott Keogh, chief marketing officer at Audi, how much the automaker was increasing its online budget year-over-year, he replied, "We more than doubled our online ad budget in 2007 to about $1.2 million, and it looks like we'll double it again in 2008."
Auto marketers are changing media lanes and following their market.
Research from Capgemini shows that 80% of consumers now consult the Internet at least once during the car-buying process. The firm reported the percentage was 71% in 2006 and 64% in 2004.
In fact, recommendations from family and friends are being replaced in importance by online customer reviews.
Capgemini found that shoppers are now looking for opinions and reviews from total strangers about specific brands, makes and dealers, as well as to discuss their own impressions and experiences.
A joint comScore and the Kelsey Group study showed that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision.
To see what else lies down the road for the industry, download the new eMarketer report, Automotive Marketing Online: Negotiating the Curves, today.
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