http://www.adweek.com/aw/content_display/news/agency/e3i6229a90fa9a407c3d402bd85fdd5a22b
Chief marketing officers are less than enthralled with their ad agencies, to judge from a survey conducted for Epsilon by GfK Roper Public Affairs & Media.
Released today (based on polling fielded in October),the poll found relatively few CMOs saying their agency of record exceeds their expectations in such areas as price (9 percent), return on investment (12 percent), client service (23 percent) and "knowledge of my business" (24 percent).
Much higher numbers of CMOs said their agency "meets" expectations in these areas, though the approval was well short of unanimous even by that middling standard. For instance, 62 percent said the agency meets their expectations for knowledge of the client's business and 64 percent said it does so when it comes to client service.
The same poll asked the CMOS to say which marketing efforts they would never outsource. Atop the list (cited by 34 percent) was strategy and planning services, followed by customer relationship management (31 percent), customer database warehouse (29 percent), e-mail delivery system (22 percent) and data mining (18 percent).
Friday, January 30, 2009
WPP Buys Into South Africa's Jupiter Drawing Room
http://adage.com/globalnews/post?article_id=134183
Deals for agencies are rare these days, but the global economic gloom didn't stop Martin Sorrell's WPP Group from snapping up 49% of Johannesburg's The Jupiter Drawing Room & Partners. Jupiter is a top four agency in the South Africa market with revenue of $23.6 million and a stellar creative reputation that's made it the only shop from its market to land in Ad Age sibling Creativity's top five. The other thing worth noting is that Jupiter won't be folded into one of WPP's many larger agency networks following the deal.
This all comes from a WPP-issued press release that is unusually expansive and almost giddy. That stand-alone status, Chairman-CEO Graham Warsop is quoted as saying, "is of supreme significance [because it] leaves the door open for the possibility of building the Jupiter Drawing Room brand, as a micro-network, beyond Africa, in the future."
Interestingly, the deal is leading Jupiter shareholders to get rid of their equity in the South Africa office of DDB, which is owned by Omnicom Group, a rival to WPP. It's also interesting because it doesn't seem to be a straight plug-and-play deal by a global giant for a relatively small international outpost that handles some big WPP client like, say, Ford. Instead, the deal, at first blush, seems to be motivated by the desire to acquire more creative firepower. Jupiter currently has two offices, in Johannesburg and Cape Town. Its client list is a mix of local brands and international ones, including Coca-Cola's Minute Maid and Bushmills Irish Whisky.
Deals for agencies are rare these days, but the global economic gloom didn't stop Martin Sorrell's WPP Group from snapping up 49% of Johannesburg's The Jupiter Drawing Room & Partners. Jupiter is a top four agency in the South Africa market with revenue of $23.6 million and a stellar creative reputation that's made it the only shop from its market to land in Ad Age sibling Creativity's top five. The other thing worth noting is that Jupiter won't be folded into one of WPP's many larger agency networks following the deal.
This all comes from a WPP-issued press release that is unusually expansive and almost giddy. That stand-alone status, Chairman-CEO Graham Warsop is quoted as saying, "is of supreme significance [because it] leaves the door open for the possibility of building the Jupiter Drawing Room brand, as a micro-network, beyond Africa, in the future."
Interestingly, the deal is leading Jupiter shareholders to get rid of their equity in the South Africa office of DDB, which is owned by Omnicom Group, a rival to WPP. It's also interesting because it doesn't seem to be a straight plug-and-play deal by a global giant for a relatively small international outpost that handles some big WPP client like, say, Ford. Instead, the deal, at first blush, seems to be motivated by the desire to acquire more creative firepower. Jupiter currently has two offices, in Johannesburg and Cape Town. Its client list is a mix of local brands and international ones, including Coca-Cola's Minute Maid and Bushmills Irish Whisky.
WPP Partners With Web-Analytics Firm Omniture
WPP has forged a strategic alliance with web-analytics firm Omniture and made a $25 million investment in the company.
The deal furthers London-based WPP's plan to focus on research going forward, rather than traditional advertising, as a way to differentiate itself from rival holding companies such as U.S.-based Omnicom Group and French conglomerate Publicis Groupe.
"From WPP's perspective, analytics, measurement, optimization are increasingly important to our clients," said Mark Read, WPP's director of strategy and CEO, WPP Digital, speaking to Ad Age from Davos, Switzerland. He said more than one-fifth, or about $4 billion, of WPP's $15 billion in worldwide revenue now is derived from consumer insight.
Under the terms of the agreement, WPP and Omniture will integrate marketing technologies and information products in the next 12 to 18 months and begin jointly working on new solutions to offer clients.
http://adage.com/agencynews/article?article_id=134200
http://online.wsj.com/article/SB123320346909427903.html
The deal furthers London-based WPP's plan to focus on research going forward, rather than traditional advertising, as a way to differentiate itself from rival holding companies such as U.S.-based Omnicom Group and French conglomerate Publicis Groupe.
"From WPP's perspective, analytics, measurement, optimization are increasingly important to our clients," said Mark Read, WPP's director of strategy and CEO, WPP Digital, speaking to Ad Age from Davos, Switzerland. He said more than one-fifth, or about $4 billion, of WPP's $15 billion in worldwide revenue now is derived from consumer insight.
Under the terms of the agreement, WPP and Omniture will integrate marketing technologies and information products in the next 12 to 18 months and begin jointly working on new solutions to offer clients.
http://adage.com/agencynews/article?article_id=134200
http://online.wsj.com/article/SB123320346909427903.html
Thursday, January 22, 2009
HSR acquires Chicago marketing firm
The Chicago office of Springdale-based HSR has acquired Fergus/Peters Group, a Chicago-based marketing firm, and becomes that region’s largest business-to-business integrated marketing firms.
“HSR Business to Business is now the largest B-to-B specialized agency in Chicago,” said Rick Segal, chief executive of HSR Business to Business, LLC. “Fergus/Peters Group shares our dedication to producing inspiring, creative campaigns that are designed to achieve business goals, not just communications goals.”
Fergus/Peters Group develops advertising, public relations, direct mail, event planning, digital media, video production, market research, account planning, package design, point-of-purchase design, exhibit planning and sales support for its clients.
http://news.cincinnati.com/article/20090121/BIZ01/301210054/1055/NEWS
“HSR Business to Business is now the largest B-to-B specialized agency in Chicago,” said Rick Segal, chief executive of HSR Business to Business, LLC. “Fergus/Peters Group shares our dedication to producing inspiring, creative campaigns that are designed to achieve business goals, not just communications goals.”
Fergus/Peters Group develops advertising, public relations, direct mail, event planning, digital media, video production, market research, account planning, package design, point-of-purchase design, exhibit planning and sales support for its clients.
http://news.cincinnati.com/article/20090121/BIZ01/301210054/1055/NEWS
Peachtree: Digital OOH Poised for Major Growth
There's no question that investors view the digital out-of-home sector as poised for growth. According to a Peachtree Media Advisors analysis of mergers and acquisitions activity in the out-of-home sector, the largest portion of capital invested was in digital out-of-home networks.
In total, there was $556 million of reported mergers and acquisitions transaction value in out-of-home, with $340 million in digital out-of-home; $98 million in static out-of-home; and $118 million in moving, ambient and experiential out-of-home.
While there were fewer strategic acquisitions in the OOH sector last year, there were more transactions to raise capital, with most of those providing expansion capital to established digital out-of-home networks.
http://www.mediaweek.com/mw/content_display/news/out-there/digital/e3i40152e91c349224ff4dff9d9e7f0f290
Report: Media M&A value falls in 2008, but deal flow remains relatively strong
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090108/FREE/901089989/1078/newsletter011
The dollar value of media, information and marketing services M&A deals declined 68% in 2008, falling to $33.3 billion from $104.4 billion in 2007, according to a report issued Thursday by Jordan, Edmiston Group, a media investment bank.
The number of M&A deals fell less precipitously, dipping only 13% as the number of deals fell to 758, from 872 in 2007.
The dollar value of media, information and marketing services M&A deals declined 68% in 2008, falling to $33.3 billion from $104.4 billion in 2007, according to a report issued Thursday by Jordan, Edmiston Group, a media investment bank.
The number of M&A deals fell less precipitously, dipping only 13% as the number of deals fell to 758, from 872 in 2007.
FTI Expands Presence into Canada with Acquisition of The Element Agency
FTI Consulting, Inc. (NYSE: FCN), through its strategic communications arm, FD, today announced the acquisition of The Element Agency, a leading Canadian strategic communications consultancy specializing in sustainability, issue advocacy, and corporate social responsibility (CSR) initiatives.
FD Element (as the company will be known) advises a diverse client base that includes global and Canadian brands such AIG, EPCOR, Labatt and MGM MIRAGE, as well as NGOs such as the Canadian Boreal Initiative, the League of Conservation Voters and the David Suzuki Foundation. The firm also provides counsel to leading political campaigns, including the Ontario Liberal Party, and public officials, including Vancouver's newly-elected mayor, Gregor Robertson.
Theorem Acquires Webpencil
Theorem, Inc. (www.TheoremInc.net), an online media operations and data services company, has acquired Webpencil (www.webpencil.com), an online creative ad design company. The deal augments Theorem’s capabilities by enabling it to offer creative and rich media expertise to its clients. Terms of the deal were not disclosed. Webpencil cofounders David and Cheryl Rosowsky will remain with the company in their current roles.
Theorem’s current capabilities are geared to online marketers and include reporting, online ad and search operations services, rich media testing, trafficking and email marketing campaign deployment.
Las Vegas-based Webpencil specializes in online advertising creatives & rich media across all platforms including Flash, DART Motif, PointRoll, Eyeblaster and Atlas. The company creates banner ads, landing pages, microsites and HTML emails and works for over 200 customers including ad agencies and individual clients. Recent campaigns include the Obama 2008 presidential campaign, CreditReport.com, Warner Brothers Canada and CareerBuilder.
Theorem’s current capabilities are geared to online marketers and include reporting, online ad and search operations services, rich media testing, trafficking and email marketing campaign deployment.
Las Vegas-based Webpencil specializes in online advertising creatives & rich media across all platforms including Flash, DART Motif, PointRoll, Eyeblaster and Atlas. The company creates banner ads, landing pages, microsites and HTML emails and works for over 200 customers including ad agencies and individual clients. Recent campaigns include the Obama 2008 presidential campaign, CreditReport.com, Warner Brothers Canada and CareerBuilder.
Study: Banks Cut Direct Mail By 25% In 2008
http://www.mediapost.com/publications/?fa=Articles.san&s=98829&Nid=51444&p=296990
Direct mail offers from financial services companies in pursuit of new customers fell by at least 25% in 2008, according to estimates from Mintel Comperemedia.
"Faced by the unprecedented challenges of a weak housing market, the credit crunch, a global recession and declining consumer confidence, financial institutions cut back on direct marketing," declares Stephen Clifford, Mintel Comperemedia's vice president of financial services.
Through November, the research firm estimated that financial services companies sent out 10.3 billion mailings seeking new customers--down 26% compared with 13.9 billion mailings during the same 11 months in 2007.
Clifford told Marketing Daily that Chase was the category's top mailer during the period, but the number of its mailings dropped 23%. Other financial services companies in the top five were Bank of America, down 12%, Capital One (off 13%), American Express (-3%) and Citibank, whose mailings dipped a huge 39%.
Focusing in on September, October and November, when the country's financial crisis intensified, Clifford reported a "sharper decline overall." During those months, the decrease in new customer mailings compared with 2007 soared to 37%. Citibank dropped 61%, Chase 55%, Bank of America 49%, American Express 21% and Capital One 18%.
For the year, credit card and mortgage and loan offers accounted for 86% of all direct mail offers tracked by Mintel. And while the entire financial services industry fell 26% from January to November, mortgage and loan mailings alone dropped 37%, and credit card offers 24%. "In the face of increasing losses," said Clifford, they recognized the need to tailor their target audience better."
The remaining 14% of industry mailings came from investment firms, down 5%, and banks--whose pursuit of new deposits in the form of checking, savings, CD and money market accounts actually resulted in a 5% increase. Even during the final three months tracked, the increase from 2007 held up, at 2%.
During this period, moreover, Clifford revealed, a "significant increase" by banks in an area not covered by this particular study, but of particular interest in a time of consumer anxiety--banks, he said, increased the number of mailings in support of customer loyalty and retention by a whopping 85%.
Direct mail offers from financial services companies in pursuit of new customers fell by at least 25% in 2008, according to estimates from Mintel Comperemedia.
"Faced by the unprecedented challenges of a weak housing market, the credit crunch, a global recession and declining consumer confidence, financial institutions cut back on direct marketing," declares Stephen Clifford, Mintel Comperemedia's vice president of financial services.
Through November, the research firm estimated that financial services companies sent out 10.3 billion mailings seeking new customers--down 26% compared with 13.9 billion mailings during the same 11 months in 2007.
Clifford told Marketing Daily that Chase was the category's top mailer during the period, but the number of its mailings dropped 23%. Other financial services companies in the top five were Bank of America, down 12%, Capital One (off 13%), American Express (-3%) and Citibank, whose mailings dipped a huge 39%.
Focusing in on September, October and November, when the country's financial crisis intensified, Clifford reported a "sharper decline overall." During those months, the decrease in new customer mailings compared with 2007 soared to 37%. Citibank dropped 61%, Chase 55%, Bank of America 49%, American Express 21% and Capital One 18%.
For the year, credit card and mortgage and loan offers accounted for 86% of all direct mail offers tracked by Mintel. And while the entire financial services industry fell 26% from January to November, mortgage and loan mailings alone dropped 37%, and credit card offers 24%. "In the face of increasing losses," said Clifford, they recognized the need to tailor their target audience better."
The remaining 14% of industry mailings came from investment firms, down 5%, and banks--whose pursuit of new deposits in the form of checking, savings, CD and money market accounts actually resulted in a 5% increase. Even during the final three months tracked, the increase from 2007 held up, at 2%.
During this period, moreover, Clifford revealed, a "significant increase" by banks in an area not covered by this particular study, but of particular interest in a time of consumer anxiety--banks, he said, increased the number of mailings in support of customer loyalty and retention by a whopping 85%.
Grassroots buys OptiAd Media
Grassroots Advertising is projecting big things for 2009 following its December purchase of projection advertising firm OptiAd Media. A purchase price was not disclosed.
Toronto-based Grassroots—which has its roots in the wild posting business but has expanded into guerrilla marketing—began working with OptiAd in March 2008, and has used the company as a supplier on campaigns for Cosmo TV, Smirnoff, the Toronto Raptors, Fido and 7UP.
Last year, Grassroots commissioned OptiAd for OMD Canada’s award-winning “Doritos Collisions” campaign for the Doritos Collisions brand. As part of the campaign, images representing Doritos Collisions’ hot wing and blue cheese flavours—a cowboy and a debonair Frenchman respectively—were projected onto the side of buildings in major markets including Toronto, Vancouver, Montreal and Calgary. The ads invited consumers to text in their vote for their favourite flavour, with the results played out in the projections. For example, votes for the blue cheese flavour would lead to the Frenchman flinging cheese at the cowboy.
The campaign won Best of Show at Marketing’s annual Media Innovation Awards, as well as Golds in both the Youth and Out-of-Home categories.
“[OptiAd Media] is measurable and environmentally friendly,” said Michael Gillissie, vice-president of sales and operations for Grassroots. “Those two things are important to people these days, and it gives us a strong move in that direction.
“We want to be able to provide [clients] with a package that might dovetail with some of our other offerings: wild postings, mobile billboards, etc.,” added Gillissie. “The mixture of the projections with proximity marketing and street teams, it really does have that wow factor. People will stop and get engaged.”
http://www.marketingmag.ca/english/news/media/article.jsp?content=20090113_143322_38532
OptiAd co-founder Adam Crabb is also joining Grassroots as operations manager for guerrilla and new media.
Transcon buys print-to-web company Conversys
Printer and publisher Transcontinental Inc. said Wednesday it has acquired print-to-web marketing provider Conversys Inc. for an undisclosed amount.
Conversys specializes in transforming print marketing materials like flyers and catalogues into interactive online content.
“Consumers expect a seamless shopping experience across online and offline channels, with consistency of brand presentation, and relevance and timeliness of advertising information,” said Nicky Milner, vice-president of Transcontinental Marketing Communications’ pre-media group.
Transcontinental said Conversys’ approximately 30 employees and production capabilities will continue to be based in London, Ont., and a sales office will be set up at a Transcontinental operation in Mississauga, Ont.
According to Transcontinental, Conversys’ customer base consists of national and regional North American retailers under approximately 40 separate banners.
http://www.marketingmag.ca/english/news/media/article.jsp?content=20090121_165511_35520
Conversys specializes in transforming print marketing materials like flyers and catalogues into interactive online content.
“Consumers expect a seamless shopping experience across online and offline channels, with consistency of brand presentation, and relevance and timeliness of advertising information,” said Nicky Milner, vice-president of Transcontinental Marketing Communications’ pre-media group.
Transcontinental said Conversys’ approximately 30 employees and production capabilities will continue to be based in London, Ont., and a sales office will be set up at a Transcontinental operation in Mississauga, Ont.
According to Transcontinental, Conversys’ customer base consists of national and regional North American retailers under approximately 40 separate banners.
http://www.marketingmag.ca/english/news/media/article.jsp?content=20090121_165511_35520
Tuesday, January 20, 2009
WSJ: Search Advertising Runs into the Recession
http://blogs.wsj.com/digits/2009/01/19/search-advertising-runs-into-the-recession/
U.S. search advertising spending fell 8% in the fourth quarter of 2008 from the same period in 2007, according to a new study from search advertising firm Efficient Frontier, whose search industry spending index was flat for most of 2008. The study — which covers an undisclosed portion of the $750 million in annual spending the company manages globally — marks the first quarter of negative annual growth for its index in the several years Efficient Frontier has been gathering such data, says James Beriker, president and CEO of the firm.
The Efficient Frontier study also found that retail marketers increased their spending 9% in the fourth quarter, compared to 2007, lending support to Google’s theory that some customers will respond to the recession by leaning more heavily on search advertising, widely considered one of the most cost-effective advertising methods.
Some other highlights from the study:
Advertisers who spend less than $50,000 on search ads cut their spending by 23% year-over-year, while advertisers that spend more than $200,000 on search per month cut spending by 9% during that time. Purchases by advertisers who spend between $50,000 and $200,000 were relatively flat.
Finance and automotive advertising continued to deteriorate. Search-ad spending among financial advertisers fell 20% compared to the fourth quarter of 2007. Search spending from automotive advertisers declined 15% during that period.
U.S. search advertising spending fell 8% in the fourth quarter of 2008 from the same period in 2007, according to a new study from search advertising firm Efficient Frontier, whose search industry spending index was flat for most of 2008. The study — which covers an undisclosed portion of the $750 million in annual spending the company manages globally — marks the first quarter of negative annual growth for its index in the several years Efficient Frontier has been gathering such data, says James Beriker, president and CEO of the firm.
The Efficient Frontier study also found that retail marketers increased their spending 9% in the fourth quarter, compared to 2007, lending support to Google’s theory that some customers will respond to the recession by leaning more heavily on search advertising, widely considered one of the most cost-effective advertising methods.
Some other highlights from the study:
Advertisers who spend less than $50,000 on search ads cut their spending by 23% year-over-year, while advertisers that spend more than $200,000 on search per month cut spending by 9% during that time. Purchases by advertisers who spend between $50,000 and $200,000 were relatively flat.
Finance and automotive advertising continued to deteriorate. Search-ad spending among financial advertisers fell 20% compared to the fourth quarter of 2007. Search spending from automotive advertisers declined 15% during that period.
Goodbye fuzzy ROI, hello WiFi: Deloitte's annual Global TMT Predictions
http://www.mediaincanada.com/articles/mic/20090120/deloitteglobaltmt.html
http://www.deloitte.com/dtt/article/0%2C1002%2Ccid%25253D240492%2C00.html
http://www.deloitte.com/dtt/cda/doc/content/ca_en_tmtpredictions2009Media.pdf
http://www.deloitte.com/dtt/cda/doc/content/ca_en_tmtpredictions2009_Canada.pdf
Deloitte's global TMT Predictions, released today, offer the media and tech industry some recession-proof insight for 2009: print is still dying; smaller events will bring in bigger bucks; and the future is in niche media marketing to WiFi radio listeners and smartphone users.
The technology and media predictions are based on input from more than 6,000 Deloitte clients, industry analysts and TMT specialists. This year, research also included in-depth interviews with 50 TMT C-level executives from around the world.
While only 0.4% of total ad spending last year was on mobile phones, the study predicts that a better understanding of the medium will make it a category where spending continues to grow by 200% to 300% per year, says Duncan Stewart, director of Deloitte Canada Research.
"The problem we had with mobile advertising - we thought it was, 'How do we show people Super Bowl ads on their cellphones?' And that was the wrong question," Stewart tells MiC. "As more people have smartphones, you can do more graphic ads, but even on your basic phone...there's a lot you can do with SMS. It doesn't necessarily have to be full motion video."
As people look at their phones possibly hundreds of times per day, sending them notifications about their favourite bands or products, for instance, would have a higher return in this untapped market. It will also open the door for integrated ad campaigns, says Stewart. But the campaigns have to be designed for the individual mediums, not just repackaged, he warns. "You have to have an ad campaign where you've got an SMS version that works for those phones, but isn't the same as the TV version," he says.
Deloitte's research also predicts that the print industry will be decimated in 2009, with one in 10 print publications ceasing print publication entirely. This analysis comes on the heels of an Ipsos-Reid poll, published yesterday, that finds Canadians rely on newspapers for trustworthy information during bad economic times. Thirty per cent of those surveyed in December for the Canadian Newspaper Association said they turned more often to newspapers for analysis of the recent economic downturn, while 27% - including better-educated and wealthier respondents - said they are more likely to read newspapers when making decisions about personal finances.
Readership and content are not the only aspects considered in Deloitte's prediction, however. While loss of subscribers and plummeting advertising are big parts of the reason for the 20% to 30% drop in ad revenue in the US last year, media buyers choosing avenues where they can measure their ROI is another factor, says Stewart.
"The classic 'I put an ad in the newspaper and I hope seven people pick it up in a doctor's office' is one that media buyers are pushing back on, saying, 'If I can't measure it, I'm less happy with paying that price,'" Stewart says.
A trend that should get advertisers excited is the consumer-tracking potential of WiFi. By accessing the IP address of wireless radio listeners, stations could decide whether to air national or regional ads, or the type of local ads that would be most beneficial to sponsors, says Stewart. "You'll even be able tell when the radio is on and when it isn't, which you wouldn't be able to do with your standard clock radio. It will be happening this year," says Stewart of the technology.
There's also good news for independent artists and community events: minor league teams, fringe theatre and indie music and film will do well this year, as people still want the entertainment, but for a smaller price and in more intimate settings, Deloitte predicts.
As many big-ticket events have been subsidized by the troubled auto and bank industries, "We expect to see the price of sponsorship decline," says Stewart. "There'll be smaller venues, smaller acts - but even at the larger acts, fewer fireworks and lasers."
http://www.deloitte.com/dtt/article/0%2C1002%2Ccid%25253D240492%2C00.html
http://www.deloitte.com/dtt/cda/doc/content/ca_en_tmtpredictions2009Media.pdf
http://www.deloitte.com/dtt/cda/doc/content/ca_en_tmtpredictions2009_Canada.pdf
Deloitte's global TMT Predictions, released today, offer the media and tech industry some recession-proof insight for 2009: print is still dying; smaller events will bring in bigger bucks; and the future is in niche media marketing to WiFi radio listeners and smartphone users.
The technology and media predictions are based on input from more than 6,000 Deloitte clients, industry analysts and TMT specialists. This year, research also included in-depth interviews with 50 TMT C-level executives from around the world.
While only 0.4% of total ad spending last year was on mobile phones, the study predicts that a better understanding of the medium will make it a category where spending continues to grow by 200% to 300% per year, says Duncan Stewart, director of Deloitte Canada Research.
"The problem we had with mobile advertising - we thought it was, 'How do we show people Super Bowl ads on their cellphones?' And that was the wrong question," Stewart tells MiC. "As more people have smartphones, you can do more graphic ads, but even on your basic phone...there's a lot you can do with SMS. It doesn't necessarily have to be full motion video."
As people look at their phones possibly hundreds of times per day, sending them notifications about their favourite bands or products, for instance, would have a higher return in this untapped market. It will also open the door for integrated ad campaigns, says Stewart. But the campaigns have to be designed for the individual mediums, not just repackaged, he warns. "You have to have an ad campaign where you've got an SMS version that works for those phones, but isn't the same as the TV version," he says.
Deloitte's research also predicts that the print industry will be decimated in 2009, with one in 10 print publications ceasing print publication entirely. This analysis comes on the heels of an Ipsos-Reid poll, published yesterday, that finds Canadians rely on newspapers for trustworthy information during bad economic times. Thirty per cent of those surveyed in December for the Canadian Newspaper Association said they turned more often to newspapers for analysis of the recent economic downturn, while 27% - including better-educated and wealthier respondents - said they are more likely to read newspapers when making decisions about personal finances.
Readership and content are not the only aspects considered in Deloitte's prediction, however. While loss of subscribers and plummeting advertising are big parts of the reason for the 20% to 30% drop in ad revenue in the US last year, media buyers choosing avenues where they can measure their ROI is another factor, says Stewart.
"The classic 'I put an ad in the newspaper and I hope seven people pick it up in a doctor's office' is one that media buyers are pushing back on, saying, 'If I can't measure it, I'm less happy with paying that price,'" Stewart says.
A trend that should get advertisers excited is the consumer-tracking potential of WiFi. By accessing the IP address of wireless radio listeners, stations could decide whether to air national or regional ads, or the type of local ads that would be most beneficial to sponsors, says Stewart. "You'll even be able tell when the radio is on and when it isn't, which you wouldn't be able to do with your standard clock radio. It will be happening this year," says Stewart of the technology.
There's also good news for independent artists and community events: minor league teams, fringe theatre and indie music and film will do well this year, as people still want the entertainment, but for a smaller price and in more intimate settings, Deloitte predicts.
As many big-ticket events have been subsidized by the troubled auto and bank industries, "We expect to see the price of sponsorship decline," says Stewart. "There'll be smaller venues, smaller acts - but even at the larger acts, fewer fireworks and lasers."
Audi Accelerates U.S. Media Spend for 2009
http://www.brandweek.com/bw/content_display/news-and-features/automotive-travel/e3iecbc44179b8d6b319ddd12627adadc73
In a bid to boost its brand profile, Audi has supercharged its marketing budget for 2009, planning a 15 to 20 percent increase in its U.S. promotional spend.
The automaker’s souped-up TV plan kicks off Feb. 1 with a 60-second Super Bowl spot designed to showcase the Audi A6 sedan.
While many car companies are planning to hit the brakes on their TV spend, Audi is looking to build on the gains it made in market share a year ago. “We’re still a brand that doesn’t have enough awareness. Historically, Audi has been a great unknown,” said chief marketing officer Scott Keogh. “We’re hoping to get the year off to a fast start with the Super Bowl ad, and then dial down on the A6’s TV presence, while keeping the momentum alive virally.”
Keogh said the incremental coverage a marketer receives when buying time in the Super Bowl is worth the price of admission. (NBC is selling 30-second spots for $3 million a pop.) “We did 600 million media impressions last year after the Super Bowl, which is what we usually get in the course of a whole year,” Keogh said. “Being in the game gets you into places that automobiles don’t normally get into, like the Today show ... and Charlie Rose.”
That increased exposure leads to a major boost in Web traffic as well. According to Keogh, AudiUSA.com enjoyed a 200 percent lift in impressions during the two-month period before and after the Super Bowl. The clip also scared up more than 1 million views on YouTube, thanks in part to its farcical nod to The Godfather’s celebrated horse-head reveal.
In a bid to boost its brand profile, Audi has supercharged its marketing budget for 2009, planning a 15 to 20 percent increase in its U.S. promotional spend.
The automaker’s souped-up TV plan kicks off Feb. 1 with a 60-second Super Bowl spot designed to showcase the Audi A6 sedan.
While many car companies are planning to hit the brakes on their TV spend, Audi is looking to build on the gains it made in market share a year ago. “We’re still a brand that doesn’t have enough awareness. Historically, Audi has been a great unknown,” said chief marketing officer Scott Keogh. “We’re hoping to get the year off to a fast start with the Super Bowl ad, and then dial down on the A6’s TV presence, while keeping the momentum alive virally.”
Keogh said the incremental coverage a marketer receives when buying time in the Super Bowl is worth the price of admission. (NBC is selling 30-second spots for $3 million a pop.) “We did 600 million media impressions last year after the Super Bowl, which is what we usually get in the course of a whole year,” Keogh said. “Being in the game gets you into places that automobiles don’t normally get into, like the Today show ... and Charlie Rose.”
That increased exposure leads to a major boost in Web traffic as well. According to Keogh, AudiUSA.com enjoyed a 200 percent lift in impressions during the two-month period before and after the Super Bowl. The clip also scared up more than 1 million views on YouTube, thanks in part to its farcical nod to The Godfather’s celebrated horse-head reveal.
Wednesday, January 14, 2009
Online advertising still a draw for investors
http://www.thedeal.com/techconfidential/vc-ratings/panorama-capital/were-fairly-sure-theres-been.php GoFish Corp., a public company that trades over the counter, on Thursday said it raised $22.5 million in a private placement from Panorama Capital, Rustic Canyon Partners and Rembrandt Venture Partners. Funds will be used to retire debt, accelerate its growth and expand its sales and marketing team. GoFish distributes content and advertising to a large network of sites focused on kids, teens and mothers.
online contextual display advertising company LucidMedia Networks Inc. said it completed an $8.8 million third round of funding it would use to launch its contextual advertising network. The funding was led by a combination of institutional and individual investors, including Lake Street Capital, RLI Partners, Melton Investments, Silicon Valley investment veteran Milan Mandaric and Redleaf Group, whose CEO, Michael Tomana, has joined LucidMedia's board of directors.LucidMedia's technology allows advertisers to target ads at consumers. It provides contextual analysis that reads the Web page of a potential advertising impression and classifies it to ensure it is appropriate for an advertiser's needs.
online contextual display advertising company LucidMedia Networks Inc. said it completed an $8.8 million third round of funding it would use to launch its contextual advertising network. The funding was led by a combination of institutional and individual investors, including Lake Street Capital, RLI Partners, Melton Investments, Silicon Valley investment veteran Milan Mandaric and Redleaf Group, whose CEO, Michael Tomana, has joined LucidMedia's board of directors.LucidMedia's technology allows advertisers to target ads at consumers. It provides contextual analysis that reads the Web page of a potential advertising impression and classifies it to ensure it is appropriate for an advertiser's needs.
EMarketer: Search to dominate online marketing budgets
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090109/FREE/901099995/1078/newsletter011 Even though search marketing growth is slowing, marketers will rely more on search this year as they seek greater return on investment in a weakened economy, according to a report from eMarketer.
EMarketer predicts that U.S. search ad spending will grow 14.9% this year, compared with 21.4% in 2008 and 29.5% in 2007. Even though search marketing growth is slowing, search advertising will dominate online marketing budgets, more than doubling the money that will be spent on display ads through 2013, the company predicted.
However, eMarketer warned that reducing display ad expenditures could affect search results, since display ads support searches and clicks-throughs.
EMarketer predicts that U.S. search ad spending will grow 14.9% this year, compared with 21.4% in 2008 and 29.5% in 2007. Even though search marketing growth is slowing, search advertising will dominate online marketing budgets, more than doubling the money that will be spent on display ads through 2013, the company predicted.
However, eMarketer warned that reducing display ad expenditures could affect search results, since display ads support searches and clicks-throughs.
10 Things You Need To Know About Mobile
http://www.mediapost.com/publications/?fa=Articles.san&s=95567&Nid=51093&p=296990
The Screens of Power are on a Collision Course
1. The much-touted location-based services (LBS) that marketers dream of leveraging for laser-geo-targeted promotions have not found their own way yet. A small percentage of U.S. phones have GPS built in, and while many more will come to market this year, carriers can't figure out how to price and promote them.
2. According to comScore M:Metrics, in June 2008, 20.8 million U.S. customers and 4.5 million Europeans accessed search services on handsets, up 68 percent and 38 percent respectively from a year ago. And, yes, Google owns it, with 63 percent market share in the United States. Time to get mobile SEO in gear.
3. There will always be room for QWERTY and multitap pads, but touchscreens will flood the phone market. More than iPhone envy, the interface streamlines most mobile Web operations and opens up whole new worlds of application and game creativity.
4. A torrent of inexpensive, turnkey SMS messaging vendors will let anyone develop and launch alerts, coupons and messaging campaigns. But is this good for a nascent platform that still requires expertise and marketer self-discipline to maintain good relations with customers? Mobile agencies might take exception to too much automation too fast.
5. With too many mobile ad networks out there, not enough revenue to support them all, and an economic downturn that threatens everyone's second round of funding, look for accelerated consolidation. Growing the size of the network will be critical to providing media buyers with an easier buy of more reach. Many companies will have to merge or die - some will do both.
6. In categories like weather and sports, consumers are starting to access their key data more often on phones than on the Web. Mobile-only access in some segments will begin to challenge the Internet for mind share. Also-rans on the Web and mobile-only start-ups have an opportunity to stage a march on slow-moving legacy media.
7. Nearly 40 million of us access e-mail on phones, according to Nielsen. As smartphone users triage their messages on a regular basis, publishers are starting to report unexpected numbers of hits to their standard Web sites, evidence that mobilistas do click through on e-mail links. Get the message? E-mail marketers may be the next segment to ponder a strategy for mobile click-throughs.
8. Android, BlackBerry and Windows Mobile operating systems will offer application storefronts. The opportunities for marketers to create their own branded applications and serve ads into apps will explode. But if the iPhone App Store is any indication, consumers may have to drill through a lot of clutter and garbage to find the gems. Discovery remains mobile's Achilles' heel.
9. The mobile retail experience in ticketing (Amtrak and American Airlines), books (Amazon) and entertainment (Fandango) has improved substantially, and many vendors are surprised by the volume they see already. More consumers will be ready to transfer existing Web loyalties and e-commerce accounts to the mobile platform.
10. Still holding: Look to next year's Survival Guide for clearer signals coming from a number of well-hyped mobile models that won't be ready to complete a call until at least 2010. Social networking has massive page counts but still lacks advertisers and a good format for them. Mobile video and TV have cool technology but slow-growing scale. And all of that wonderful targeting data that carriers keep in their back pockets will probably stay there for quite a while.
The Screens of Power are on a Collision Course
1. The much-touted location-based services (LBS) that marketers dream of leveraging for laser-geo-targeted promotions have not found their own way yet. A small percentage of U.S. phones have GPS built in, and while many more will come to market this year, carriers can't figure out how to price and promote them.
2. According to comScore M:Metrics, in June 2008, 20.8 million U.S. customers and 4.5 million Europeans accessed search services on handsets, up 68 percent and 38 percent respectively from a year ago. And, yes, Google owns it, with 63 percent market share in the United States. Time to get mobile SEO in gear.
3. There will always be room for QWERTY and multitap pads, but touchscreens will flood the phone market. More than iPhone envy, the interface streamlines most mobile Web operations and opens up whole new worlds of application and game creativity.
4. A torrent of inexpensive, turnkey SMS messaging vendors will let anyone develop and launch alerts, coupons and messaging campaigns. But is this good for a nascent platform that still requires expertise and marketer self-discipline to maintain good relations with customers? Mobile agencies might take exception to too much automation too fast.
5. With too many mobile ad networks out there, not enough revenue to support them all, and an economic downturn that threatens everyone's second round of funding, look for accelerated consolidation. Growing the size of the network will be critical to providing media buyers with an easier buy of more reach. Many companies will have to merge or die - some will do both.
6. In categories like weather and sports, consumers are starting to access their key data more often on phones than on the Web. Mobile-only access in some segments will begin to challenge the Internet for mind share. Also-rans on the Web and mobile-only start-ups have an opportunity to stage a march on slow-moving legacy media.
7. Nearly 40 million of us access e-mail on phones, according to Nielsen. As smartphone users triage their messages on a regular basis, publishers are starting to report unexpected numbers of hits to their standard Web sites, evidence that mobilistas do click through on e-mail links. Get the message? E-mail marketers may be the next segment to ponder a strategy for mobile click-throughs.
8. Android, BlackBerry and Windows Mobile operating systems will offer application storefronts. The opportunities for marketers to create their own branded applications and serve ads into apps will explode. But if the iPhone App Store is any indication, consumers may have to drill through a lot of clutter and garbage to find the gems. Discovery remains mobile's Achilles' heel.
9. The mobile retail experience in ticketing (Amtrak and American Airlines), books (Amazon) and entertainment (Fandango) has improved substantially, and many vendors are surprised by the volume they see already. More consumers will be ready to transfer existing Web loyalties and e-commerce accounts to the mobile platform.
10. Still holding: Look to next year's Survival Guide for clearer signals coming from a number of well-hyped mobile models that won't be ready to complete a call until at least 2010. Social networking has massive page counts but still lacks advertisers and a good format for them. Mobile video and TV have cool technology but slow-growing scale. And all of that wonderful targeting data that carriers keep in their back pockets will probably stay there for quite a while.
DMA releases ‘Future of Direct Marketing’ report
http://www.mediapost.com/publications/?fa=Articles.san&s=98337&Nid=51225&p=296990
"We are all direct marketers now, whether we know it or not," states Michelle Tiletnick, research manager of the Direct Marketing Association, to conclude the executive summary of the DMA's new 78-page qualitative report, "Future of Direct Marketing."
So where is direct marketing going, and how should it get there? Condensing the report's insights from 35 direct marketing leaders, the DMA offers the following findings:
"Where will direct marketing will be in five and ten years?"
- Customers will be in control
- Measurable and accountable marketing will increase
- Traditional direct marketing (mail, catalogs) will decrease while digital marketing rises
- Marketers will increase the use of multiple channels--but with a single message"How should direct marketers prepare for these changes?"
- Invest in the future (technology, staff, mindset)
- Ask customers for their media preferences
- Test everything
- Be open-minded
The 35 experts queried for the report represent 19 industry categories, including:
• Catalog/retail: "Traditional retailers will become more direct, and direct merchants will look to stores as a means of competing with larger rivals and growing their brands," according to Neil O'Keefe, the DMA's vice president for the catalog and multichannel segment.
• Agencies: Sid Liebenson, executive vice president and director of marketing for draft fcb, predicts that "direct marketing will become more integrated with marketing in general" in the coming years, "but these mainstream marketers will be reluctant to call what they do 'direct marketing, and to the rank and file, even 10 years from now, they'll still associate direct marketing with 'mail order' or--forgive the expression --'junk mail'."
• Interactive Marketing: According to Alan Moss, Google's director of online sales and operations, "the current state of the economy may accelerate movement down the path that direct marketing has already begun traveling over the past few years--the path towards increased measurability."
• Email: Jordan Cohen, senior director, industry relations for Goodmail Systems, predicts the reinvention of email as a "killer app ... able to support all the functionality of a website [streaming video, rich media graphics, one-click shopping, one-click bill pay and more] with the added bonus of being able to push the content to an audience of opt-in recipients."
• Media/publishing: In 2009, Mobile Marketer Editor Mickey Alam Khan expects "resources will be moved to the Internet and even mobile, although those two channels will not be able to pay the bills for most media companies, especially with the way they are set up today."
• Social media: "As social and mobile channels develop, the metrics and analytics available will become more useful to brand and merchandising managers alike. Rather than simple volumetric measurements (how many people saw our YouTube 'viral' video, or 'friended' us on Facebook?), you can anticipate learning about how influence spreads through a network, and across channels," notes analytics expert "Wandering" Dave Rhee.
"We are all direct marketers now, whether we know it or not," states Michelle Tiletnick, research manager of the Direct Marketing Association, to conclude the executive summary of the DMA's new 78-page qualitative report, "Future of Direct Marketing."
So where is direct marketing going, and how should it get there? Condensing the report's insights from 35 direct marketing leaders, the DMA offers the following findings:
"Where will direct marketing will be in five and ten years?"
- Customers will be in control
- Measurable and accountable marketing will increase
- Traditional direct marketing (mail, catalogs) will decrease while digital marketing rises
- Marketers will increase the use of multiple channels--but with a single message"How should direct marketers prepare for these changes?"
- Invest in the future (technology, staff, mindset)
- Ask customers for their media preferences
- Test everything
- Be open-minded
The 35 experts queried for the report represent 19 industry categories, including:
• Catalog/retail: "Traditional retailers will become more direct, and direct merchants will look to stores as a means of competing with larger rivals and growing their brands," according to Neil O'Keefe, the DMA's vice president for the catalog and multichannel segment.
• Agencies: Sid Liebenson, executive vice president and director of marketing for draft fcb, predicts that "direct marketing will become more integrated with marketing in general" in the coming years, "but these mainstream marketers will be reluctant to call what they do 'direct marketing, and to the rank and file, even 10 years from now, they'll still associate direct marketing with 'mail order' or--forgive the expression --'junk mail'."
• Interactive Marketing: According to Alan Moss, Google's director of online sales and operations, "the current state of the economy may accelerate movement down the path that direct marketing has already begun traveling over the past few years--the path towards increased measurability."
• Email: Jordan Cohen, senior director, industry relations for Goodmail Systems, predicts the reinvention of email as a "killer app ... able to support all the functionality of a website [streaming video, rich media graphics, one-click shopping, one-click bill pay and more] with the added bonus of being able to push the content to an audience of opt-in recipients."
• Media/publishing: In 2009, Mobile Marketer Editor Mickey Alam Khan expects "resources will be moved to the Internet and even mobile, although those two channels will not be able to pay the bills for most media companies, especially with the way they are set up today."
• Social media: "As social and mobile channels develop, the metrics and analytics available will become more useful to brand and merchandising managers alike. Rather than simple volumetric measurements (how many people saw our YouTube 'viral' video, or 'friended' us on Facebook?), you can anticipate learning about how influence spreads through a network, and across channels," notes analytics expert "Wandering" Dave Rhee.
AdMedia Partners report bodes well for media deals getting closed
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090113/FREE/901139991/1078/newsletter011
While media M&A activity is expected to be down this year, many companies say they still expect to complete deals, according to a new survey from AdMedia Partners.
The M&A consultancy’s annual “Prospects for Media Mergers and Acquisitions” survey found that 63% of companies expect to complete previously announced deals this year.
Most respondents (61%) said the buyer’s market is good for M&As, but 73% said sellers should hold off until valuations improve.
The online survey of more than 1,500 media industry senior executives in the U.S. and abroad revealed a consensus that media deals this year will be concentrated in two sectors: information/database publishing companies and b-to-b magazines. However the outlook for M&A activity among traditional media is uncertain, according to the report, as ad dollars migrate online, and those media lag in their attempts to monetize content, among other factors.
http://www.admediapartners.com/research_and_commentary/industry_surveys/pdf/Prospects_for_M&A_Survey_2009.pdf
While media M&A activity is expected to be down this year, many companies say they still expect to complete deals, according to a new survey from AdMedia Partners.
The M&A consultancy’s annual “Prospects for Media Mergers and Acquisitions” survey found that 63% of companies expect to complete previously announced deals this year.
Most respondents (61%) said the buyer’s market is good for M&As, but 73% said sellers should hold off until valuations improve.
The online survey of more than 1,500 media industry senior executives in the U.S. and abroad revealed a consensus that media deals this year will be concentrated in two sectors: information/database publishing companies and b-to-b magazines. However the outlook for M&A activity among traditional media is uncertain, according to the report, as ad dollars migrate online, and those media lag in their attempts to monetize content, among other factors.
http://www.admediapartners.com/research_and_commentary/industry_surveys/pdf/Prospects_for_M&A_Survey_2009.pdf
Experiential Marketing Focuses on Malls, Paramount Gets Dogged
http://www.mediapost.com/publications/?fa=Articles.san&s=96641&Nid=50344&p=296990
Advertisers are looking to malls more and more as venues for experiential marketing, hoping to immerse consumers in spaces where they are physically surrounded by brand messages. Recent experiential efforts do not focus on over-selling; instead, they present environments as entertainment or useful services.
Advertisers are looking to malls more and more as venues for experiential marketing, hoping to immerse consumers in spaces where they are physically surrounded by brand messages. Recent experiential efforts do not focus on over-selling; instead, they present environments as entertainment or useful services.
Havas CEO: Aims For 15% Of Rev From Digital In '09
French media group Havas SA (12188.FR) aims to make about 15% of its revenue from digital activities in 2009, Chief Executive Fernando Rodes Vila said Tuesday.
"By the end of 2008, digital activities should generate about 13% of revenue...by the end of 2009 we should be at about 15%," Rodes Vila told Dow Jones Newswires in an interview, adding that his company is "well on track" ...
GM won’t cut more of its sports sponsorships
http://www.msnbc.msn.com/id/28628106/
General Motors Corp.’s top U.S. marketing executive said Monday he does not foresee further big cuts in the automaker’s sports sponsorships as it balances a cash shortage with the need to market its products.
Mark LaNeve, vice president for North American marketing, said GM is still looking at every penny of its advertising budget as it tries to cut expenses and prove it is viable in order to keep $13.4 billion in government loans.
General Motors Corp.’s top U.S. marketing executive said Monday he does not foresee further big cuts in the automaker’s sports sponsorships as it balances a cash shortage with the need to market its products.
Mark LaNeve, vice president for North American marketing, said GM is still looking at every penny of its advertising budget as it tries to cut expenses and prove it is viable in order to keep $13.4 billion in government loans.
Chrysler Announces Shift to Spot TV
http://adage.com/article?article_id=133701
Chrysler will shift its media spending from national to spot TV to allow more flexibility for its budget, Vice Chairman Jim Press said at the American International Motor Show yesterday.
Chrysler will shift its media spending from national to spot TV to allow more flexibility for its budget, Vice Chairman Jim Press said at the American International Motor Show yesterday.
Glaxo to Pare Ads on U.S. Television
Drug giant GlaxoSmithKline PLC is cutting back on its U.S. television advertising as it tries to spend its money more wisely and avoid some of the criticism aimed at heavy drug advertising, Chief Executive Andrew Witty said.
Glaxo is the world's second-biggest drug maker by sales and one of the biggest advertisers in an industry that spent more than $5.2 billion on U.S. consumer ads in 2007. Television advertising has been an especially important marketing weapon for pharmaceutical companies in promoting drug brands, even as it attracts ...
http://online.wsj.com/article/SB123154429495469531.html?mod=dist_smartbrief
Tuesday, January 13, 2009
Generation5 and Silverback Media Join Forces
Silverback Media PLC and Generation 5 Mathematical
Technologies Inc. announced an agreement between their two organizations. The
agreement will provide Generation5 with an infusion of new capital for research and
development of new products and services in the field of Consumer Intelligence and give
Silverback the analytics edge to be the leading mobile marketer .
http://www.generation5.ca/pdf/Generation5%20and%20Silverback%20Media%20Join%20Forces%20.pdf
Technologies Inc. announced an agreement between their two organizations. The
agreement will provide Generation5 with an infusion of new capital for research and
development of new products and services in the field of Consumer Intelligence and give
Silverback the analytics edge to be the leading mobile marketer .
http://www.generation5.ca/pdf/Generation5%20and%20Silverback%20Media%20Join%20Forces%20.pdf
COVER-ALL Acquisition continues with Postlinx
Cover-All Computer Services Corp. has finalized the
purchase of Postlinx Corporation. The purchase marks the fourth acquisition by Cover-All of a
document services organization in the GTA in just the last five years.
http://www.cover-all.ca/Assets/pdf/news/External%20Release%20Postlinx%20Sale%20Final-v21.pdf
Monday, January 12, 2009
Schawk, Inc. Completes Acquisition of DJPA, an International Brand and Packaging Design Firm
http://biz.yahoo.com/iw/090112/0464733.html
Schawk, Inc. (NYSE:SGK - News), one of the world's leading providers of brand point management services, announced today that it has completed its acquisition of DJPA, an international brand and packaging design firm. The purchased business includes the London, England and Hilversum, The Netherlands locations of DJPA with approximately USD $8 million in annual revenues. DJPA's clients include Unilever, Grolsch, Warburtons, Heinz, Friesland Foods and Burton's Food.
Schawk, Inc. (NYSE:SGK - News), one of the world's leading providers of brand point management services, announced today that it has completed its acquisition of DJPA, an international brand and packaging design firm. The purchased business includes the London, England and Hilversum, The Netherlands locations of DJPA with approximately USD $8 million in annual revenues. DJPA's clients include Unilever, Grolsch, Warburtons, Heinz, Friesland Foods and Burton's Food.
Friday, January 9, 2009
Empirical Receives Notices From Its Secured Creditors
http://biz.yahoo.com/ccn/090108/200901080505676001.html?.v=1&printer=1
Empirical Inc.(TSX VENTURE:EM - News; the "Company" or "Empirical") announces that today, it received demands for payment and notices of intention to enforce security from the Ontario SME Capital Corporation ("SME"), Quorum Secured Equity Trust ("QSET") and Quorum Investment Pool Limited Partnership ("QIP") (collectively "Quorum"). After a period of 10 days Quorum will be in a position to take steps to enforce their security against the assets of the Company and its subsidiaries (the "Empirical Group of Companies").
Empirical Inc.(TSX VENTURE:EM - News; the "Company" or "Empirical") announces that today, it received demands for payment and notices of intention to enforce security from the Ontario SME Capital Corporation ("SME"), Quorum Secured Equity Trust ("QSET") and Quorum Investment Pool Limited Partnership ("QIP") (collectively "Quorum"). After a period of 10 days Quorum will be in a position to take steps to enforce their security against the assets of the Company and its subsidiaries (the "Empirical Group of Companies").
Thursday, January 8, 2009
WPP's Digital Push
The ad and marketing giant appears to have a head start on rivals, but CEO Martin Sorrell doesn't think it's digital enough
http://www.businessweek.com/globalbiz/content/jan2009/gb2009016_218198.htm?campaign_id=yhoo
In addition to setting up a new business unit a few years back called WPP Digital, Sorrell is now pushing for every one of his 133,000 employees—along with the 15 heavyweight members of his board—to embrace digital technology like there's no tomorrow. Even the global financial turmoil, which whacked 45% off of WPP's stock price last year, isn't distracting him from that mission.
More than 50% of the company's 2008 revenues are expected to have come from Web marketing and sources other than traditional TV, radio, and print.
Yet despite Sorrell's enthusiasm for all things digital, creating a cyber-savvy culture at WPP remains a challenge. Old habits die hard, especially when Web initiatives generally remain less lucrative than traditional advertising. "It is easier when the CEO gets that, but it doesn't make it easy," says tech guru and WPP nonexecutive director Esther Dyson.
For a sense of how Sorrell wants it to work, consider how WPP recently won a hefty portion of a Johnson & Johnson (JNJ) contract that consolidates all of its U.S. pharmaceutical advertising. The contract, which is widely reported to be worth more than $100 million, was split between WPP and rival Interpublic (IPG). (Johnson & Johnson and the agencies have never commented publicly on the breakdown of business.)
To woo the pharmaceutical giant, WPP staged a science fair-style presentation inside JWT's New York office, where representatives from 20 WPP units sat in different booths, showing off displays such as a WPP-designed social network promoting a prescription drug and an interactive Web site to inform doctors about new treatments. A digital partner company (not part of WPP) called LiveWorld (LVWD) also demonstrated a new online database that, with a single click, listed the names of everyone in WPP's U.S. network with expertise in marketing disciplines relevant to J&J brands. All of them, WPP boasted, could be brought on to a virtual team serving J&J, with JWT acting as a kind of portal.
http://www.businessweek.com/globalbiz/content/jan2009/gb2009016_218198.htm?campaign_id=yhoo
In addition to setting up a new business unit a few years back called WPP Digital, Sorrell is now pushing for every one of his 133,000 employees—along with the 15 heavyweight members of his board—to embrace digital technology like there's no tomorrow. Even the global financial turmoil, which whacked 45% off of WPP's stock price last year, isn't distracting him from that mission.
More than 50% of the company's 2008 revenues are expected to have come from Web marketing and sources other than traditional TV, radio, and print.
Yet despite Sorrell's enthusiasm for all things digital, creating a cyber-savvy culture at WPP remains a challenge. Old habits die hard, especially when Web initiatives generally remain less lucrative than traditional advertising. "It is easier when the CEO gets that, but it doesn't make it easy," says tech guru and WPP nonexecutive director Esther Dyson.
For a sense of how Sorrell wants it to work, consider how WPP recently won a hefty portion of a Johnson & Johnson (JNJ) contract that consolidates all of its U.S. pharmaceutical advertising. The contract, which is widely reported to be worth more than $100 million, was split between WPP and rival Interpublic (IPG). (Johnson & Johnson and the agencies have never commented publicly on the breakdown of business.)
To woo the pharmaceutical giant, WPP staged a science fair-style presentation inside JWT's New York office, where representatives from 20 WPP units sat in different booths, showing off displays such as a WPP-designed social network promoting a prescription drug and an interactive Web site to inform doctors about new treatments. A digital partner company (not part of WPP) called LiveWorld (LVWD) also demonstrated a new online database that, with a single click, listed the names of everyone in WPP's U.S. network with expertise in marketing disciplines relevant to J&J brands. All of them, WPP boasted, could be brought on to a virtual team serving J&J, with JWT acting as a kind of portal.
FedEx cuts marketing spend by more than 25 percent
FedEx Corp (FDX.N) has cut its marketing budgets by more than 25 percent in 2009 as part of its response to the bleak U.S. economy, the package delivery giant said on Wednesday.
Mike Glenn, FedEx executive vice president for market development, first disclosed the cuts in a December 29 company blog.
Mike Glenn, FedEx executive vice president for market development, first disclosed the cuts in a December 29 company blog.
Wal-Mart Won’t Share Data for In-Store Marketing Metric
Wal-Mart will not participate in the expected launch next year of the PRISM national retail data syndication service from The Nielsen Company, despite having taken part in the pilot development phase of the in-store project, it was revealed.
“Wal-Mart was pleased with the insights they gleaned from the PRISM pilot,” Nielsen said in a statement. “However, they have decided not to participate in a national syndicated service, remaining consistent with their internal data-sharing policies.”
P&G cuts US ad spending
http://news.cincinnati.com/article/20081216/BIZ01/312160045/1001/BIZ
Procter & Gamble, the world’s largest advertiser, cut its U.S. ad spending by nearly 6 percent in the first nine months of 2008, a new report found.
Procter & Gamble, the world’s largest advertiser, cut its U.S. ad spending by nearly 6 percent in the first nine months of 2008, a new report found.
Aegis Weighs Its Options
U.K. media agency company begins process that could lead to spin-off of Synovate or an alliance with Havas
http://www.adweek.com/aw/content_display/news/agency/e3i23a3bd2fe640a9aed1a585ef2b9542d4
Tuesday, January 6, 2009
General Mills: Google Ads Click for Nature Valley
As marketers question the effectiveness of display ads and their ROI value, General Mills is telling a different story. The packaged goods giant today revealed the results of a partnership with Google's Content Network and YouTube, where consumers were exposed to display ads for a Nature Valley contest that ran Dec. 24, 2007 to May 25, 2008. The ads resulted in a 52 percent sales lift and delivered more than 830 million impressions for the Nature Valley brand, per the company.
"The key takeaway is, when we gave folks who care about Nature Valley an easy and fun way to talk about and share their experiences about the brand, they jumped into it with both feet," said Kevin Kells, Google's national industry director for packaged goods.
General Mills said more digital campaigns are in the works following this success. Nature Valley granola bars accounted for $136 million in food, drug and mass merchandise sales for 52 weeks ending Nov. 30, per IRI. Overall granola bar sales reached $890 million during the same period.
http://www.brandweek.com/bw/content_display/esearch/e3i213af1e960abb3d887f6e9ddbc123207
"The key takeaway is, when we gave folks who care about Nature Valley an easy and fun way to talk about and share their experiences about the brand, they jumped into it with both feet," said Kevin Kells, Google's national industry director for packaged goods.
General Mills said more digital campaigns are in the works following this success. Nature Valley granola bars accounted for $136 million in food, drug and mass merchandise sales for 52 weeks ending Nov. 30, per IRI. Overall granola bar sales reached $890 million during the same period.
http://www.brandweek.com/bw/content_display/esearch/e3i213af1e960abb3d887f6e9ddbc123207
Monday, January 5, 2009
NYT: Best and Worst Ads
http://www.nytimes.com/2008/12/29/business/media/29adcol.html?_r=1&ref=business
Burger King
Stove Top
Barack Obama
VW - Brooke Shields
Toyota - Saved by Zero
Motrin
Microsoft
CocaCola
Burger King
Stove Top
Barack Obama
VW - Brooke Shields
Toyota - Saved by Zero
Motrin
Microsoft
CocaCola
Hearst survey finds nearly half of b-to-b marketing budgets spent online
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20081203/FREE/812039997/1078/newsletter011
Nearly half of b-to-b marketing budgets are spent on online programs, according to a survey by Hearst Electronics Group and Goldstein Group.
The online survey of 99 b-to-b marketers was conducted in August and September.
It found that an average 47% of total marketing budgets are spent on online tactics, including Web site development, online advertising, search marketing, webcasts and social media.
Nearly half of b-to-b marketing budgets are spent on online programs, according to a survey by Hearst Electronics Group and Goldstein Group.
The online survey of 99 b-to-b marketers was conducted in August and September.
It found that an average 47% of total marketing budgets are spent on online tactics, including Web site development, online advertising, search marketing, webcasts and social media.
Corporate Executive Board Acquires Warrillow & Co
Warrillow & Co. has been acquired by The
Corporate Executive Board (NASDAQ: EXBD), a leading provider of best practices
research and analysis focusing on corporate strategy, operations and general
management issues.
http://www.warrillow.com/Images2/Article_warrillow_20081103.pdf
Corporate Executive Board (NASDAQ: EXBD), a leading provider of best practices
research and analysis focusing on corporate strategy, operations and general
management issues.
http://www.warrillow.com/Images2/Article_warrillow_20081103.pdf
The Ad Downturn: Why Isn't Digital Immune?
"Digital is the most easily cancelable," said Auerbach. "That's our cross to bear."
Jeff Lanctot, chief strategy officer at Razorfish, sounded a similar note back in October when he said, "The blessing of digital media, [the ability to] respond quickly, will become its curse...I think there's going to be widespread pain in digital media" Moritz Loew, senior director of national sales at MSNBC, believes much of the disappearing money can be traced to advertisers with mid-sized budgets.
"The middle class is gone from marketers right now," he said. "You see the bottom feeders getting stronger. In the top tier, we're getting more big deals than ever before -- the big custom branding stuff. It's the middle, your bread and butter $50,000 to $250,000 RFPs, that are going away."
Less than a year ago, one of the biggest factors limiting the growth of digital marketing was the talent shortage. There simply weren't enough seasoned interactive buyers, creatives, analytics pros, or search experts to fill the open positions.
Survey Finds Pharma Marketers Poised to Embrace Digital
Half of respondents spend less than 10 percent of their marketing budget on digital, with most of the spending going into their own Web sites and "Web 1.0" tools. And even though their investments in digital have been slim to date and in familiar channels, those surveyed said they are concerned about their ability to prove the return on investment for any digital marketing strategy they implement.
http://www.clickz.com/3632182
http://www.clickz.com/3632182
No Mug? Drug Makers Cut Out Goodies for Doctors
http://www.nytimes.com/2008/12/31/business/31drug.html?_r=1&ref=business
Starting Jan. 1, the pharmaceutical industry has agreed to a voluntary moratorium on the kind of branded goodies — Viagra pens, Zoloft soap dispensers, Lipitor mugs — that were meant to foster good will and, some would say, encourage doctors to prescribe more of the drugs.
Last year, besides giving away nearly $16 billion in free drug samples to doctors, pharmaceutical companies spent more than $6 billion on “detailing” — an industry term for the sales activities of drug representatives including office visits to doctors, meal-time presentations and branded pens and other handouts, according to IMS Health, a health care information company.
About 40 drug makers, including Eli Lilly & Company, Johnson & Johnson and Pfizer, have signed on to the code. Representatives of several pharmaceutical makers said their companies intended to comply with the guidelines, but they declined to discuss past marketing programs involving branded gifts.
Starting Jan. 1, the pharmaceutical industry has agreed to a voluntary moratorium on the kind of branded goodies — Viagra pens, Zoloft soap dispensers, Lipitor mugs — that were meant to foster good will and, some would say, encourage doctors to prescribe more of the drugs.
Last year, besides giving away nearly $16 billion in free drug samples to doctors, pharmaceutical companies spent more than $6 billion on “detailing” — an industry term for the sales activities of drug representatives including office visits to doctors, meal-time presentations and branded pens and other handouts, according to IMS Health, a health care information company.
About 40 drug makers, including Eli Lilly & Company, Johnson & Johnson and Pfizer, have signed on to the code. Representatives of several pharmaceutical makers said their companies intended to comply with the guidelines, but they declined to discuss past marketing programs involving branded gifts.
WSJ: Best & Worst Ads of 2008
http://online.wsj.com/article/SB122999459168528847.html?mod=yahoo_hs&ru=yahoo
THE BEST
"Yes We Can," a music video produced by will.i.am of the Black Eyed Peas, showed footage of a speech by President-elect Barack Obama as musicians and celebrities echoed his words.
Burger King, The burger baron, resorted to a hoax dubbed "Whopper Freakout" that snatched the Whopper from the menu at two stores and used hidden cameras to film customers' dismay.
E*Trade gave us a talking baby during this year's Super Bowl to show that online banking and trading is so easy, even you-know-who could do it.
Pepsi - An online video showed a ball girl for the Fresno Grizzlies minor-league baseball team scaling the wall to make a stunning catch of a foul ball. A bottle of Gatorade appeared briefly at her feet.
Apple used interactive banner ads this year, featuring its well-known Mac and PC ad characters. In an ad that appeared on the home page of the New York Times site, the nerdy PC character dragged a story with the headline "Stop Switching to Mac!" into the ad space on the right side of the screen.
THE WORST
Microsoft shelled out about $10 million for pitchman Jerry Seinfeld and paired him with Bill Gates for a massive Windows ad campaign. In one spot, the pair shopped for shoes; in another, they bunked with a family.
Toyota - car ad pushing zero-percent financing featured a version of the 1983 Fixx song "Saved by Zero."
Salesgenie.com - One animated Super Bowl ad featured a panda couple, speaking in Asian accents, who worry they may go out of business and are saved by a panda psychic who recommends Salesgenie. Another spot showed a white boss berating an Indian salesman, Ramesh, who has eight children.
AIG - Ads for the troubled insurance company carried the slogan "The Strength to Be There." One ad featured cute children concerned about complex financial issues. They told their worries to their parents, who quickly reassured the moppets that everything was indeed OK, because "We're with AIG."
Pfizer - TV and print ads featured Robert Jarvik, the inventor of the artificial heart, peddling the cholesterol-lowering drug Lipitor. In one ad, Dr. Jarvik says, "Just because I'm a doctor doesn't mean I don't worry about my cholesterol."
THE BEST
"Yes We Can," a music video produced by will.i.am of the Black Eyed Peas, showed footage of a speech by President-elect Barack Obama as musicians and celebrities echoed his words.
Burger King, The burger baron, resorted to a hoax dubbed "Whopper Freakout" that snatched the Whopper from the menu at two stores and used hidden cameras to film customers' dismay.
E*Trade gave us a talking baby during this year's Super Bowl to show that online banking and trading is so easy, even you-know-who could do it.
Pepsi - An online video showed a ball girl for the Fresno Grizzlies minor-league baseball team scaling the wall to make a stunning catch of a foul ball. A bottle of Gatorade appeared briefly at her feet.
Apple used interactive banner ads this year, featuring its well-known Mac and PC ad characters. In an ad that appeared on the home page of the New York Times site, the nerdy PC character dragged a story with the headline "Stop Switching to Mac!" into the ad space on the right side of the screen.
THE WORST
Microsoft shelled out about $10 million for pitchman Jerry Seinfeld and paired him with Bill Gates for a massive Windows ad campaign. In one spot, the pair shopped for shoes; in another, they bunked with a family.
Toyota - car ad pushing zero-percent financing featured a version of the 1983 Fixx song "Saved by Zero."
Salesgenie.com - One animated Super Bowl ad featured a panda couple, speaking in Asian accents, who worry they may go out of business and are saved by a panda psychic who recommends Salesgenie. Another spot showed a white boss berating an Indian salesman, Ramesh, who has eight children.
AIG - Ads for the troubled insurance company carried the slogan "The Strength to Be There." One ad featured cute children concerned about complex financial issues. They told their worries to their parents, who quickly reassured the moppets that everything was indeed OK, because "We're with AIG."
Pfizer - TV and print ads featured Robert Jarvik, the inventor of the artificial heart, peddling the cholesterol-lowering drug Lipitor. In one ad, Dr. Jarvik says, "Just because I'm a doctor doesn't mean I don't worry about my cholesterol."
Barclays Capital: Ad Revenue to Shrink 10% in 2009
http://www.brandweek.com/bw/content_display/special-reports/studies/e3i8cb71d29182efee65a11f845b64c6872
The firm now projects that total U.S. ad dollars will come in at $252.1 billion next year, down from $280 million in 2007. That’s a pronounced drop-off from Barclays' October estimates, which had overall ad spend declining 5.5 percent in 2009.
Local advertising is likely to get the short end of the stick, with Barclays eyeballing a 12.2 percent year-over-year decrease, to $99.2 billion. National ad spend is expected to fall 8.4 percent to $152.9 billion.
At particular risk is print, with magazine ad revenue expected to backslide by 15 percent to $10.8 billion and newspapers looking at a 17 percent dropoff ($28.7 billion). TV station revenue could drop as much as 15.5 percent in 2009, with local and national spot expected to add up to $20.7 billion.Broadcast also is due for a reversal, as Barclays now believes the big four network TV outlets will fall 10 percent to $14.5 billion, versus its previous projection of negative 8 percent. And while the firm only two months ago saw cable increasing its take by 1.8 percent, Barclays now sees national cable dropping 2.9 percent in ‘09, to $20.2 billion.
Only the Internet seems to stand a chance to grow next year, as Barclays predicts a 6.1 percent spurt in the sector, with ad dollars hitting the $25.1 billion mark. Search could grow by as much as 20 percent, while display will show more moderate development, increasing by 4 percent.
The firm now projects that total U.S. ad dollars will come in at $252.1 billion next year, down from $280 million in 2007. That’s a pronounced drop-off from Barclays' October estimates, which had overall ad spend declining 5.5 percent in 2009.
Local advertising is likely to get the short end of the stick, with Barclays eyeballing a 12.2 percent year-over-year decrease, to $99.2 billion. National ad spend is expected to fall 8.4 percent to $152.9 billion.
At particular risk is print, with magazine ad revenue expected to backslide by 15 percent to $10.8 billion and newspapers looking at a 17 percent dropoff ($28.7 billion). TV station revenue could drop as much as 15.5 percent in 2009, with local and national spot expected to add up to $20.7 billion.Broadcast also is due for a reversal, as Barclays now believes the big four network TV outlets will fall 10 percent to $14.5 billion, versus its previous projection of negative 8 percent. And while the firm only two months ago saw cable increasing its take by 1.8 percent, Barclays now sees national cable dropping 2.9 percent in ‘09, to $20.2 billion.
Only the Internet seems to stand a chance to grow next year, as Barclays predicts a 6.1 percent spurt in the sector, with ad dollars hitting the $25.1 billion mark. Search could grow by as much as 20 percent, while display will show more moderate development, increasing by 4 percent.
InfoGroup founder: Company should consider a sale
http://biz.yahoo.com/ap/081222/infogroup_founder.html?.v=8
Vinod Gupta also said in a statement early Monday that he is exploring a proposal to acquire all of InfoGroup's outstanding shares and take the company private. Gupta already owns about 40 percent of the Omaha-based company's stock.
Vinod Gupta also said in a statement early Monday that he is exploring a proposal to acquire all of InfoGroup's outstanding shares and take the company private. Gupta already owns about 40 percent of the Omaha-based company's stock.
For Auto Industry, 2009 Holds Even Tighter Ad Budgets
http://adage.com/article?article_id=133520
Promising better return on investment, GM will slash $600 million from U.S. advertising and promotions in the next four years to just $2.6 billion from $3.2 billion in 2008. It has not publicized its plans to accomplish this, though the automaker has cut out a number of high-profile events such as the Super Bowl.
The industry over-invested in TV last year, especially for seasonal sales events, but the economic turmoil is bringing the industry back to reality with more focus on strategic marketing and media planning to improve targeting
VW will dramatically beef up online efforts this year with ads, videos and content, as well as efforts on social-networking sites, to reach in-market shoppers and those considering a purchase in the next six to nine months. The marketer plans to do more brand-building online
Carmakers aren't the only ones trimming ad spending. Their regional-dealer ad groups, which generate a chunk of their budgets from every new- vehicle sale, are also cutting back due in part to smaller volumes, noted veteran auto marketer and agency exec Ian Beavis, now exec VP-exec client director of Aegis Group's Carat. Mr. Beavis said the biggest drop in industry ad spending will be from individual auto dealers because "their margins are getting squeezed" and they are cutting expenses any way they can just to survive.
In 2007, new-car dealers spent more than $7.8 billion in U.S. advertising, according to trade group National Automobile Dealers Association. Regional-dealer ad groups spent $2.5 billion in U.S. measured media in the first quarter of 2008, more than the $1.98 billion spent by the automakers in measured media during the period, according to TNS Media Intelligence.
Promising better return on investment, GM will slash $600 million from U.S. advertising and promotions in the next four years to just $2.6 billion from $3.2 billion in 2008. It has not publicized its plans to accomplish this, though the automaker has cut out a number of high-profile events such as the Super Bowl.
The industry over-invested in TV last year, especially for seasonal sales events, but the economic turmoil is bringing the industry back to reality with more focus on strategic marketing and media planning to improve targeting
VW will dramatically beef up online efforts this year with ads, videos and content, as well as efforts on social-networking sites, to reach in-market shoppers and those considering a purchase in the next six to nine months. The marketer plans to do more brand-building online
Carmakers aren't the only ones trimming ad spending. Their regional-dealer ad groups, which generate a chunk of their budgets from every new- vehicle sale, are also cutting back due in part to smaller volumes, noted veteran auto marketer and agency exec Ian Beavis, now exec VP-exec client director of Aegis Group's Carat. Mr. Beavis said the biggest drop in industry ad spending will be from individual auto dealers because "their margins are getting squeezed" and they are cutting expenses any way they can just to survive.
In 2007, new-car dealers spent more than $7.8 billion in U.S. advertising, according to trade group National Automobile Dealers Association. Regional-dealer ad groups spent $2.5 billion in U.S. measured media in the first quarter of 2008, more than the $1.98 billion spent by the automakers in measured media during the period, according to TNS Media Intelligence.
Not-So-Banner Year for Digital
As budgets tighten, media such as display ads will come under scrutiny
old school methods like display ads and microsites will come under pressure. Social media looks set to remain on the top of advertisers' agendas, as they look to apply the lessons of their early missteps in the area while adding real measurement to what have been experimental forays to date. As the Internet becomes more social, there will likewise be an acceleration of a move from purely technical implementations to using the Web's emerging social infrastructure to connect on a more human level.
http://www.adweek.com/aw/content_display/news/digital/e3i7a4b4ca5771c6f2d31c7e2bcb71f8be8
old school methods like display ads and microsites will come under pressure. Social media looks set to remain on the top of advertisers' agendas, as they look to apply the lessons of their early missteps in the area while adding real measurement to what have been experimental forays to date. As the Internet becomes more social, there will likewise be an acceleration of a move from purely technical implementations to using the Web's emerging social infrastructure to connect on a more human level.
http://www.adweek.com/aw/content_display/news/digital/e3i7a4b4ca5771c6f2d31c7e2bcb71f8be8
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