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.
Thursday, October 30, 2008
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.
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