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.”
Friday, August 22, 2008
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.
Thursday, August 7, 2008
Acxiom Purchases ChoicePoint Database Division
http://directmag.com/news/acxiom_purchases_0710/
Acxiom Corp., the database marketing firm, has acquired the database marketing division of ChoicePoint Precision Marketing LLC, for an undisclosed sum.
http://www.acxiom.com/170042/Acxiom___Corporation_Acquires_Database_Marketing_Solutions_Division_from_ChoicePoint
Acxiom® Corporation (Nasdaq: ACXM), a global interactive marketing services company, today announced the acquisition of the Database Marketing Solutions division of ChoicePoint Precision Marketing LLC, a subsidiary of ChoicePoint Inc.
With the purchase, Acxiom adds seven clients from multiple industries – including banking, insurance and media – who will benefit from Acxiom’s data integration, analytics, data and multi-channel marketing capabilities worldwide.
“This acquisition expands Acxiom’s roster of blue-chip clients while adding some talented associates who are dedicated to serving clients and growing the business,” said Acxiom Chief Executive Officer and President John A. Meyer. Annual revenues are estimated to be approximately $16 million.
“Each client is a leader in its respective industry, and some are multi-national enterprises,” Meyer said. “In addition to enhancing their database marketing capabilities, Acxiom looks forward to introducing clients to new strategies and services – particularly in the digital space – to help them build even stronger relationships with target audiences around the globe.”
The acquisition includes approximately 75 associates based in Andover, Mass., Durham, N.C., Peoria, Ill., and Alpharetta, Ga. “These teams, which include account management, technical, and analytic functions, will complement the deep industry expertise of the current Acxiom team,” Meyer said.
Acxiom Corp., the database marketing firm, has acquired the database marketing division of ChoicePoint Precision Marketing LLC, for an undisclosed sum.
http://www.acxiom.com/170042/Acxiom___Corporation_Acquires_Database_Marketing_Solutions_Division_from_ChoicePoint
Acxiom® Corporation (Nasdaq: ACXM), a global interactive marketing services company, today announced the acquisition of the Database Marketing Solutions division of ChoicePoint Precision Marketing LLC, a subsidiary of ChoicePoint Inc.
With the purchase, Acxiom adds seven clients from multiple industries – including banking, insurance and media – who will benefit from Acxiom’s data integration, analytics, data and multi-channel marketing capabilities worldwide.
“This acquisition expands Acxiom’s roster of blue-chip clients while adding some talented associates who are dedicated to serving clients and growing the business,” said Acxiom Chief Executive Officer and President John A. Meyer. Annual revenues are estimated to be approximately $16 million.
“Each client is a leader in its respective industry, and some are multi-national enterprises,” Meyer said. “In addition to enhancing their database marketing capabilities, Acxiom looks forward to introducing clients to new strategies and services – particularly in the digital space – to help them build even stronger relationships with target audiences around the globe.”
The acquisition includes approximately 75 associates based in Andover, Mass., Durham, N.C., Peoria, Ill., and Alpharetta, Ga. “These teams, which include account management, technical, and analytic functions, will complement the deep industry expertise of the current Acxiom team,” Meyer said.
Google to Acquire Russian Digital Agency Zao Begun
http://promomagazine.com/news/google_acquire_russian_zao_begun_0722/
Google will acquire Zao Begun, a Russian digital advertising agency, for $140 million.
The transaction is expected to close in the third quarter.
According to Google, the purchase will give advertisers access to a broader network of sites to advertise on and publishers will benefit from a wider set of advertisements to run on their sites.
Google will acquire Zao Begun, a Russian digital advertising agency, for $140 million.
The transaction is expected to close in the third quarter.
According to Google, the purchase will give advertisers access to a broader network of sites to advertise on and publishers will benefit from a wider set of advertisements to run on their sites.
Digital Shop Rosetta Acquires Brulant
"We are creating one of the nation's biggest interactive agencies which will allow us to grow current relationships and build new ones quite dramatically," said Chris Kuenne, Rosetta's founder, chairman and CEO. "The interactive marketing landscape is rapidly shifting from mass to personalized targeting and from fuzzy equity measures to precisely measured
Founded in 1998, Rosetta's client list includes Johnson & Johnson, Bristol Myers Squibb, Allergan, Shire, HSBC and Microsoft. The firm's 2007 revenue totaled $50 million.
The company's combined revenues are expected to total $130 million this year, according to Kuenne.
Clients of the Cleveland-based Brulant include Borders, Coach, Nationwide, Citizens Bank, National City Bank, Marriott and Scholastic, among others.
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=87240
Founded in 1998, Rosetta's client list includes Johnson & Johnson, Bristol Myers Squibb, Allergan, Shire, HSBC and Microsoft. The firm's 2007 revenue totaled $50 million.
The company's combined revenues are expected to total $130 million this year, according to Kuenne.
Clients of the Cleveland-based Brulant include Borders, Coach, Nationwide, Citizens Bank, National City Bank, Marriott and Scholastic, among others.
http://www.mediapost.com/publications/?fa=Articles.showArticleHomePage&art_aid=87240
Kraft, Kellogg Claim That Upping Marketing Spending Allowed Them to Pass on Price Hikes, Boost Sales
http://adage.com/article?article_id=130083
Kraft Foods, Hershey, Kellogg Co. and General Mills have all cited increased marketing and advertising spending as one reason for better-than-expected sales gains in the second quarter. And by staying top of mind with marketing, Kraft was able to pull off a 7% price hike, neatly offsetting commodity costs without seeing consumers defect to private-label rivals.
Kraft Foods, Hershey, Kellogg Co. and General Mills have all cited increased marketing and advertising spending as one reason for better-than-expected sales gains in the second quarter. And by staying top of mind with marketing, Kraft was able to pull off a 7% price hike, neatly offsetting commodity costs without seeing consumers defect to private-label rivals.
Display and PR lead ad spend growth: StatsCan
http://www.mediaincanada.com/articles/mic/20080805/statscan.html
Advertising agencies:, $2,388.8 million to $2,478.1 million, 3.7%
Public relations: $325.6 million to $361.2 million, 10.9%
Media buyers and reps: $284.7 million to $295.5 million, 3.8%
Display advertisers: $609.4 million to $713.5 million, 17.1%
Direct mailers: $304.2 million to $329.7 million, 8.4%
Flyer distribution: $318.4 million to $334.7 million, 5.1%
Specialty advertisers: $617.1 million to $627.7 million, 1.7%
All other services: $508.5 million to $523.6 million, 3%
http://www.statcan.ca/Daily/English/080801/d080801a.htm
Advertising agencies:, $2,388.8 million to $2,478.1 million, 3.7%
Public relations: $325.6 million to $361.2 million, 10.9%
Media buyers and reps: $284.7 million to $295.5 million, 3.8%
Display advertisers: $609.4 million to $713.5 million, 17.1%
Direct mailers: $304.2 million to $329.7 million, 8.4%
Flyer distribution: $318.4 million to $334.7 million, 5.1%
Specialty advertisers: $617.1 million to $627.7 million, 1.7%
All other services: $508.5 million to $523.6 million, 3%
http://www.statcan.ca/Daily/English/080801/d080801a.htm
VSS Forecast
http://www.usatoday.com/money/media/2008-08-04-media-forecast_N.htm
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080805/FREE/433383334/1078/newsletter01
http://www.hollywoodreporter.com/hr/content_display/finance/news/e3ieb1f595b5fc21e0a84674ec00307f91c
http://www.vss.com/news/index.asp?d_News_ID=177
B-to-b media spending totaled $24.79 billion in 2007, and the sector produced a 4.8% compound annual growth rate (CAGR) from 2002-07, according to the forecast. B-to-b media is anticipated to reached $32.95 billion by 2012, for a CAGR of 5.9% from 2007-12
“The U.S. communications industry has proven to be resilient during difficult economic periods over the last several decades because of the diverse portfolio of spending derived from the institutional, consumer, advertising and marketing sectors,” said Jim Rutherfurd, Executive Vice President and Managing Director at VSS. “While current economic conditions are contributing to the underperformance of traditional advertising and marketing segments, various institutional, consumer and alternative media segments are outperforming GDP due to several factors. Among them are businesses demanding dynamic workflow solutions for competitive global markets, consumers taking ‘staycations’ this summer and spending on entertainment media targeted at the youth market, and brand marketers shifting to alternative media to engage hard-to-reach demographics.”
Spending on alternative media will climb 21.0% to $81.67 billion in 2008, and account for 17.7% of total advertising and marketing spending, up from 6.9% in 2002, according to the VSS Forecast. By comparison, traditional advertising and marketing will inch up only 0.4% in 2008 to $378.48 billion, including a 1.8% decline in traditional advertising, despite the influx of political and Olympics advertising, as newspapers, consumer magazines and broadcast radio all post declines for the year.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080805/FREE/433383334/1078/newsletter01
http://www.hollywoodreporter.com/hr/content_display/finance/news/e3ieb1f595b5fc21e0a84674ec00307f91c
http://www.vss.com/news/index.asp?d_News_ID=177
B-to-b media spending totaled $24.79 billion in 2007, and the sector produced a 4.8% compound annual growth rate (CAGR) from 2002-07, according to the forecast. B-to-b media is anticipated to reached $32.95 billion by 2012, for a CAGR of 5.9% from 2007-12
“The U.S. communications industry has proven to be resilient during difficult economic periods over the last several decades because of the diverse portfolio of spending derived from the institutional, consumer, advertising and marketing sectors,” said Jim Rutherfurd, Executive Vice President and Managing Director at VSS. “While current economic conditions are contributing to the underperformance of traditional advertising and marketing segments, various institutional, consumer and alternative media segments are outperforming GDP due to several factors. Among them are businesses demanding dynamic workflow solutions for competitive global markets, consumers taking ‘staycations’ this summer and spending on entertainment media targeted at the youth market, and brand marketers shifting to alternative media to engage hard-to-reach demographics.”
Spending on alternative media will climb 21.0% to $81.67 billion in 2008, and account for 17.7% of total advertising and marketing spending, up from 6.9% in 2002, according to the VSS Forecast. By comparison, traditional advertising and marketing will inch up only 0.4% in 2008 to $378.48 billion, including a 1.8% decline in traditional advertising, despite the influx of political and Olympics advertising, as newspapers, consumer magazines and broadcast radio all post declines for the year.
P&G Says It Won't Cut Ad Budget, Despite Rising Costs
http://adage.com/article?article_id=130135
P&G maintained ad spending as a percent of sales for its fiscal year ended June 30 and plans to do so again this year, despite an accelerating restructuring focused on its marketing organizations and organic sales growth weaker than that of global competitors.
P&G maintained ad spending as a percent of sales for its fiscal year ended June 30 and plans to do so again this year, despite an accelerating restructuring focused on its marketing organizations and organic sales growth weaker than that of global competitors.
Online advertising growth slows
http://www.latimes.com/business/la-fi-webads5-2008aug05,0,3604360.story
Analysts say companies tend to cut back first on display advertising, which generated 21% of online ad revenue in 2007, because they see it as a way to improve their image rather than generate direct sales as search ads do.
Analysts say companies tend to cut back first on display advertising, which generated 21% of online ad revenue in 2007, because they see it as a way to improve their image rather than generate direct sales as search ads do.
Car Concepts: Vehicle Sales, Ad Spends Don't Jibe
http://www.adweek.com/aw/content_display/news/client/e3i1e5a2e8d39dee1085a3ac150b5e907aa
A new analysis of the automotive industry by Todd Turner, principal at consultancy Car Concepts, shows significant disconnects between the segmented sales performances of some vehicles and the marketing dollars spent to promote those trucks and cars.
In fact, some of the findings were downright schizophrenic: strong ad spends failed to boost sales in some cases, while other vehicles have sold quite well despite minimal marketing support.
The dissonance between spending and results, Turner said, is further proof that "no amount of marketing can make up for product that isn't competitive in its segment."
A new analysis of the automotive industry by Todd Turner, principal at consultancy Car Concepts, shows significant disconnects between the segmented sales performances of some vehicles and the marketing dollars spent to promote those trucks and cars.
In fact, some of the findings were downright schizophrenic: strong ad spends failed to boost sales in some cases, while other vehicles have sold quite well despite minimal marketing support.
The dissonance between spending and results, Turner said, is further proof that "no amount of marketing can make up for product that isn't competitive in its segment."
GM urges ad agencies to slash fees-WSJ
General Motors Corp has asked its advertising agencies to slash their fees by as much as 20 percent this year and next, the Wall Street Journal said on Thursday.
http://www.reuters.com/article/marketsNews/idINBNG32580320080807?rpc=44
http://online.wsj.com/article/SB121805673763218089.html?mod=hpp_us_whats_news
http://www.reuters.com/article/marketsNews/idINBNG32580320080807?rpc=44
http://online.wsj.com/article/SB121805673763218089.html?mod=hpp_us_whats_news
Deluxe announces acquisition of PartnerUp
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080806/FREE/135065781/1078/newsletter01
Deluxe Corp. announced it has acquired PartnerUp, an online networking community for small businesses and entrepreneurs. Deluxe said the deal is aligned with its continued focus on creating a portfolio of services and products that spans the full small-business work flow. Terms of the deal were not disclosed.
Deluxe Corp. announced it has acquired PartnerUp, an online networking community for small businesses and entrepreneurs. Deluxe said the deal is aligned with its continued focus on creating a portfolio of services and products that spans the full small-business work flow. Terms of the deal were not disclosed.
Wednesday, August 6, 2008
Publicis to buy Performics search marketing unit from Google
http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b9AFC2A66-4901-4E87-8CB1-B93A6DA1CAA9%7d&siteid=yhoof2
Performics, which employs nearly 200 search marketing specialists, helps to improve the performance of advertisers' investments and maximize client campaign effectiveness
http://adage.com/digital/article?article_id=130168
Performics, the fifth-largest search agency by revenue (2006), according to Ad Age's most recent Search Marketing Fact Pack, will fit within Publicis's recently formed VivaKi Nerve Center division. Performics has two attractive assets, said VivaKi President Curt Hecht. Because it started as a search bid-management platform, it has a culture of building applications and technology. He will use Performics to build tools that can be used across VivaKi, in its search as well as performance marketing.
The second asset is Performics' services business, which has 130 search-marketing clients, including two major Publicis media clients: Hewlett Packard and Verizon. "We'll work through what's the right answer for those clients once this closes," Mr. Hecht said. Publicis media agencies Starcom MediaVest Group, Digitas and Zenith Optimedia all have their own search-engine marketing; Performics will operate as another such group.
Performics, which employs nearly 200 search marketing specialists, helps to improve the performance of advertisers' investments and maximize client campaign effectiveness
http://adage.com/digital/article?article_id=130168
Performics, the fifth-largest search agency by revenue (2006), according to Ad Age's most recent Search Marketing Fact Pack, will fit within Publicis's recently formed VivaKi Nerve Center division. Performics has two attractive assets, said VivaKi President Curt Hecht. Because it started as a search bid-management platform, it has a culture of building applications and technology. He will use Performics to build tools that can be used across VivaKi, in its search as well as performance marketing.
The second asset is Performics' services business, which has 130 search-marketing clients, including two major Publicis media clients: Hewlett Packard and Verizon. "We'll work through what's the right answer for those clients once this closes," Mr. Hecht said. Publicis media agencies Starcom MediaVest Group, Digitas and Zenith Optimedia all have their own search-engine marketing; Performics will operate as another such group.
Friday, August 1, 2008
Drug Marketing Poised For Historic Decline
http://www.brandweek.com/bw/content_display/news-and-features/packaged-goods/e3i9154afd0680ec28adb58acca9a50a29a
Unlike most categories, the decline is unrelated to the economic woes of the rest of the country. Instead, it is caused by an unusual confluence of events washing over the industry in the next few years.
Analysts expect to see more money go online or into CRM programs, which are far cheaper than commercials. "They could make the largest Web buy ever instead of the smallest TV buy ever," said Jack Barrette, the former pharma ad sales chief at Yahoo! who is now CEO of Wego Health in Cambridge, Mass., a social media company.
"I think we're seeing a shift in dollars spent," said Jay Bigelow, president of MicroMass Communications in Cary, N.C., which runs relationship marketing programs for Novartis. "We're up 30% this year."
It's not just TV that is losing out. Some executives wonder how much more drug money can go into public relations, which has seen enormous growth in the category. However, Laurie Mobley, an associate director at WeissComm in Washington, which services Genentech and Actelion, still sees plenty of opportunity: "Our clients are pushing the need for segmentation and the need for specialty. The goal is not be on Good Morning America anymore."
Unlike most categories, the decline is unrelated to the economic woes of the rest of the country. Instead, it is caused by an unusual confluence of events washing over the industry in the next few years.
Analysts expect to see more money go online or into CRM programs, which are far cheaper than commercials. "They could make the largest Web buy ever instead of the smallest TV buy ever," said Jack Barrette, the former pharma ad sales chief at Yahoo! who is now CEO of Wego Health in Cambridge, Mass., a social media company.
"I think we're seeing a shift in dollars spent," said Jay Bigelow, president of MicroMass Communications in Cary, N.C., which runs relationship marketing programs for Novartis. "We're up 30% this year."
It's not just TV that is losing out. Some executives wonder how much more drug money can go into public relations, which has seen enormous growth in the category. However, Laurie Mobley, an associate director at WeissComm in Washington, which services Genentech and Actelion, still sees plenty of opportunity: "Our clients are pushing the need for segmentation and the need for specialty. The goal is not be on Good Morning America anymore."
OPA study shows branded content outperforms standard online advertising
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080730/FREE/791646380/1078/newsletter01
According to the report, branded content sites provide a 29% improvement over average online advertising performance in the MarketNorms database. For purchase intent, branded content sites provide a 20% improvement over the average online advertising.
The study also found that video advertising on branded content sites provides an 82% brand awareness boost over MarketNorms’ overall online video advertising averages and a 67% boost for improving brand favorability.
Rich media ads on branded content sites provide a 28% brand awareness improvement over MarketNorms’ average online advertising.
According to the report, branded content sites provide a 29% improvement over average online advertising performance in the MarketNorms database. For purchase intent, branded content sites provide a 20% improvement over the average online advertising.
The study also found that video advertising on branded content sites provides an 82% brand awareness boost over MarketNorms’ overall online video advertising averages and a 67% boost for improving brand favorability.
Rich media ads on branded content sites provide a 28% brand awareness improvement over MarketNorms’ average online advertising.
Ads Add to Colgate's Bottom Line
http://www.brandweek.com/bw/content_display/news-and-features/packaged-goods/e3ic83d0e899f94a600366cacd1c3a7c0cf
Colgate-Palmolive credited an 18% jump in worldwide ad spending for a 19% increase in earnings for its most recent quarter.
"Higher advertising spending behind regular and new products worldwide drove market share across categories," Cook said in a written statement. "We are confident the strong top-line growth will continue. Our new product pipeline is full and we plan to support our strong momentum with continued high levels of advertising worldwide."
Colgate-Palmolive credited an 18% jump in worldwide ad spending for a 19% increase in earnings for its most recent quarter.
"Higher advertising spending behind regular and new products worldwide drove market share across categories," Cook said in a written statement. "We are confident the strong top-line growth will continue. Our new product pipeline is full and we plan to support our strong momentum with continued high levels of advertising worldwide."
Interpublic to Acquire Stake in HUGE
http://biz.yahoo.com/bw/080730/20080730005829.html?.v=1
http://promomagazine.com/agencies/news/ipg_hopes_holistic_web_help_interactive_agency_huge_0801/
Holding Company Adds Leading Creator of Online Businesses
acquire a strategic interest in HUGE, a leading independent interactive agency that takes clients beyond online marketing campaigns to the creation of sustainable online businesses. Terms of the transaction are not being released.
IPG revealed its acquisition of a 51% interest in Huge in exchange for an undisclosed sum during a conference call earlier this week following the release of its Q2 2008 financial results.
Founded in 1999, HUGE has 130 employees across four offices in New York, Los Angeles, Atlanta and London. Online businesses designed and developed by HUGE generate more than $3.5 billion in annual revenue and enjoy over 120 million visitors per month for clients including IKEA, JetBlue, NutriSystem, Scholastic and The Warner Music Group. HUGE will continue to operate under the leadership of its four partners, David Skokna, Sasha Kirovski, Gene Liebel and Aaron Shapiro.
Forrester Acquires JupiterResearch
Forrester Research is buying market-research firm JupiterResearch from MCG Capital Corp. for $23 million. New York-based Jupiter had 83 employees and revenue of $14 million ...
http://biz.yahoo.com/bw/080731/20080731005684.html?.v=1
http://biz.yahoo.com/bw/080731/20080731005684.html?.v=1
CoActive Marketing Group Repositions Firm Under Single Brand -- 'mktg'
http://biz.yahoo.com/prnews/080801/nyf024.html?.v=101
"This new positioning better reflects our mission to drive market share and deliver measurable results and profitability for our clients," said Charlie Tarzian, chief executive officer, 'mktg'. "The new name and logo are intended to communicate the endless possibilities of what marketing can deliver when driven by creating a shared experience that connects brands and builds trust among consumers."
Mr. Tarzian added, "Our 6,000-person field activation network, which executes over 70,000 events a year, is a point of differentiation for the agency and will be a focus of management's growth plans as the industry transitions from mass marketing to targeted, data-driven networks and one-to- one conversations with consumers."
"This new positioning better reflects our mission to drive market share and deliver measurable results and profitability for our clients," said Charlie Tarzian, chief executive officer, 'mktg'. "The new name and logo are intended to communicate the endless possibilities of what marketing can deliver when driven by creating a shared experience that connects brands and builds trust among consumers."
Mr. Tarzian added, "Our 6,000-person field activation network, which executes over 70,000 events a year, is a point of differentiation for the agency and will be a focus of management's growth plans as the industry transitions from mass marketing to targeted, data-driven networks and one-to- one conversations with consumers."
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