Tuesday, February 24, 2009
Komunik Announces Agreement to Sell Business
Komunik Corporation (the "Corporation") (TSX:KOM - News) is pleased to announce that it entered today into an agreement of purchase and sale (the "Transaction") that will see the Corporation's business and operations continue on a seamless basis for its stakeholders. The buying company (the "Purchaser") in a newly incorporated company established by an investment management company. http://biz.yahoo.com/ccn/090220/200902200513225001.html?.v=1
Social Marketing Hotshop, Mr Youth Closes Private Equity Deal with Two Investment Groups
Mr. Youth, a social marketing agency focusing on word-of-mouth, social interactive and experiential marketing--announced today that it has closed a private equity deal with two Boston-based investors: Alta Communications, specializing in equity investments in media and communications companies; and The Mustang Group LLC, a private equity firm that invests in industry-leading middle market companies. Current board member Jordan Rednor, who is active in a variety of marketing services companies, also joined the investor group.
http://www.marketwatch.com/news/story/social-marketing-hotshop-mr-youth/story.aspx?guid=%7bA5AD62A3-6799-4223-99EF-CD1875F966E3%7d&dist=msr_2
http://www.marketwatch.com/news/story/social-marketing-hotshop-mr-youth/story.aspx?guid=%7bA5AD62A3-6799-4223-99EF-CD1875F966E3%7d&dist=msr_2
Fewer Than Half Of Marketers Use Online Metrics
Less than half (47%) of marketing professionals in North America and the U.K. recently surveyed by Alterian reported that they currently use analytics to measure online campaign results.
One-quarter cited analyzing and honing results as the hardest part of any campaign.
In this sixth annual marketing study from the analytics platform provider, 1,545 marketers, agencies, marketing services providers and systems integrators in the U.S. and U.K. were surveyed Oct. 1-Dec. 4 through a dedicated Web site landing page and interviews at three key marketing conferences last October and November.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100692
One-quarter cited analyzing and honing results as the hardest part of any campaign.
In this sixth annual marketing study from the analytics platform provider, 1,545 marketers, agencies, marketing services providers and systems integrators in the U.S. and U.K. were surveyed Oct. 1-Dec. 4 through a dedicated Web site landing page and interviews at three key marketing conferences last October and November.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100692
Fewer Than Half Of Marketers Use Online Metrics
Less than half (47%) of marketing professionals in North America and the U.K. recently surveyed by Alterian reported that they currently use analytics to measure online campaign results.
One-quarter cited analyzing and honing results as the hardest part of any campaign.
In this sixth annual marketing study from the analytics platform provider, 1,545 marketers, agencies, marketing services providers and systems integrators in the U.S. and U.K. were surveyed Oct. 1-Dec. 4 through a dedicated Web site landing page and interviews at three key marketing conferences last October and November.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100692
One-quarter cited analyzing and honing results as the hardest part of any campaign.
In this sixth annual marketing study from the analytics platform provider, 1,545 marketers, agencies, marketing services providers and systems integrators in the U.S. and U.K. were surveyed Oct. 1-Dec. 4 through a dedicated Web site landing page and interviews at three key marketing conferences last October and November.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100692
Payments Drag Out on TV Spots --- Makers of Commercials Complain That GM, Anheuser
Press for New Terms
By Suzanne Vranica
795 words
23 February 2009
The Wall Street Journal
B6
English
(Copyright (c) 2009, Dow Jones & Company, Inc.)
Some of the biggest advertisers in the U.S., including auto maker General Motors and brewing giant Anheuser-Busch InBev, are putting the squeeze on companies that produce and broadcast their ads, as part of an effort to rework contracts with suppliers to cut costs.
As the economy's slump continues, GM has raised an uproar among the production firms that make its TV spots by playing hardball on payment terms. Other advertisers could follow suit, bringing pressure on the small companies that make up that business.
Over the past few weeks, GM, whose brands include Cadillac, Buick and Pontiac, has offered to pay ad-production firms 50% of a commercial's production costs 60 days after the first day of shooting and the remaining 50% when the ad is finished. That's a major departure from the standard practice of paying 50% or 75% of the cost before production starts.
A car commercial can cost anywhere between $500,000 and $1.5 million, say production executives.
"This has the potential to destroy the commercial-production business," says Matt Miller, chief executive officer of the Association of Independent Commercial Producers, the New York-based trade group that represents production companies.
The move is the latest in a long list of cost-cutting moves cash-strapped GM has adopted as it seeks to avoid a bankruptcy filing. Last year, GM asked its ad agencies to cut their fees by as much as 20% for 2008 and 2009.
Historically, GM has been one of the U.S.'s biggest ad spenders, shelling out $1.6 billion to buy ad time and space for the first nine months of 2008, according to ad tracker TNS Media Intelligence, a unit of London-based ad-holding company WPP.
So far many production companies have balked at GM's terms, but people familiar with the matter say that some firms have agreed to the new payment structure.
GM declined to comment specifically on its moves, but a spokeswoman said, "We have and continue to work closely with our suppliers, partners and vendors in an effort to improve the efficiencies of our marketing."
Anheuser-Busch InBev is trying to overhaul all its vendor contracts, including advertising-related deals. The world's largest brewer by sales recently told media outlets that they will now be waiting 120 days after an ad runs to receive payment versus the typical 30-day standard.
"The challenging global economic environment has resulted in AB InBev, like many other multinational companies, reviewing its standard terms and conditions of payment," the company said in a statement.
WPP's Group M, which buys ads on behalf of corporate clients, recently proposed new terms for its online ad deals that could triple the time that online publishers wait to get paid for the ads they run. The changes were designed to give its agencies and clients more flexibility, and not to cause media companies any hardships, says John Montgomery, chief operating officer of Group M Interaction. Because of the tough economy most publishers have complied.
GM has been trying to persuade TV-production companies to accept its new payment terms by suggesting it is looking to have a few "preferred vendors." In order to be on the list, the production company would have to agree to the new fee structure. Production executives believe about 30 firms have received calls about the matter in the past few weeks. The new set-up reflects a broader policy change GM began applying to all its vendor contracts last year, according to a person familiar with the matter.
"Our business is not the same as buying lug nuts" says Cami Taylor, president and co-owner of Crossroads Films, a Los Angeles production firm that has said no to GM's new payment terms. Crossroads also works with major marketers like Anheuser-Busch and Procter & Gamble.
Ms. Taylor and other production executives say the lions share of their costs are tied up in labor and hard costs, such as locations and equipment, all of which have to be paid upfront. The new payment terms, they say, are unacceptable because many production companies aren't able to finance thesecosts, due to the tight credit facilities.
Donald Block partner and executive producer at Gartner Films, a production company in Santa Monica, Calif., adds: "GM and other brands are finding ways to delay payments more and more."
Mr. Block says GM still owes roughly $500,000 from a job he did in September. "It's a growing problem," he says.
By Suzanne Vranica
795 words
23 February 2009
The Wall Street Journal
B6
English
(Copyright (c) 2009, Dow Jones & Company, Inc.)
Some of the biggest advertisers in the U.S., including auto maker General Motors and brewing giant Anheuser-Busch InBev, are putting the squeeze on companies that produce and broadcast their ads, as part of an effort to rework contracts with suppliers to cut costs.
As the economy's slump continues, GM has raised an uproar among the production firms that make its TV spots by playing hardball on payment terms. Other advertisers could follow suit, bringing pressure on the small companies that make up that business.
Over the past few weeks, GM, whose brands include Cadillac, Buick and Pontiac, has offered to pay ad-production firms 50% of a commercial's production costs 60 days after the first day of shooting and the remaining 50% when the ad is finished. That's a major departure from the standard practice of paying 50% or 75% of the cost before production starts.
A car commercial can cost anywhere between $500,000 and $1.5 million, say production executives.
"This has the potential to destroy the commercial-production business," says Matt Miller, chief executive officer of the Association of Independent Commercial Producers, the New York-based trade group that represents production companies.
The move is the latest in a long list of cost-cutting moves cash-strapped GM has adopted as it seeks to avoid a bankruptcy filing. Last year, GM asked its ad agencies to cut their fees by as much as 20% for 2008 and 2009.
Historically, GM has been one of the U.S.'s biggest ad spenders, shelling out $1.6 billion to buy ad time and space for the first nine months of 2008, according to ad tracker TNS Media Intelligence, a unit of London-based ad-holding company WPP.
So far many production companies have balked at GM's terms, but people familiar with the matter say that some firms have agreed to the new payment structure.
GM declined to comment specifically on its moves, but a spokeswoman said, "We have and continue to work closely with our suppliers, partners and vendors in an effort to improve the efficiencies of our marketing."
Anheuser-Busch InBev is trying to overhaul all its vendor contracts, including advertising-related deals. The world's largest brewer by sales recently told media outlets that they will now be waiting 120 days after an ad runs to receive payment versus the typical 30-day standard.
"The challenging global economic environment has resulted in AB InBev, like many other multinational companies, reviewing its standard terms and conditions of payment," the company said in a statement.
WPP's Group M, which buys ads on behalf of corporate clients, recently proposed new terms for its online ad deals that could triple the time that online publishers wait to get paid for the ads they run. The changes were designed to give its agencies and clients more flexibility, and not to cause media companies any hardships, says John Montgomery, chief operating officer of Group M Interaction. Because of the tough economy most publishers have complied.
GM has been trying to persuade TV-production companies to accept its new payment terms by suggesting it is looking to have a few "preferred vendors." In order to be on the list, the production company would have to agree to the new fee structure. Production executives believe about 30 firms have received calls about the matter in the past few weeks. The new set-up reflects a broader policy change GM began applying to all its vendor contracts last year, according to a person familiar with the matter.
"Our business is not the same as buying lug nuts" says Cami Taylor, president and co-owner of Crossroads Films, a Los Angeles production firm that has said no to GM's new payment terms. Crossroads also works with major marketers like Anheuser-Busch and Procter & Gamble.
Ms. Taylor and other production executives say the lions share of their costs are tied up in labor and hard costs, such as locations and equipment, all of which have to be paid upfront. The new payment terms, they say, are unacceptable because many production companies aren't able to finance thesecosts, due to the tight credit facilities.
Donald Block partner and executive producer at Gartner Films, a production company in Santa Monica, Calif., adds: "GM and other brands are finding ways to delay payments more and more."
Mr. Block says GM still owes roughly $500,000 from a job he did in September. "It's a growing problem," he says.
Thursday, February 19, 2009
Mobile Hotel Bookings Show ROI in Recession
http://adage.com/digital/article?article_id=134711
Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. But revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age.
Marriott Mobile generated $2 million in gross revenue between its August 2008 launch and the end of the year. But revenue from mobile bookings in January was headed upward fairly quickly, the hotel chain told Ad Age.
Innovation Interactive Hunts For CRM, Analytics Acquisition
Innovation Interactive is on the hunt to acquire a customer relationship management (CRM) and analytics company to expand its offerings as it opens offices around the world.
Will Margiloff--CEO for the parent company of 360i, SearchIgnite and Netmining--said that Innovation Interactive collects, stores and controls "an immense amount of data on behalf of brands, and providing more valuable insight into how they can reach their customers more effectively will become an important step for us."
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100552
Will Margiloff--CEO for the parent company of 360i, SearchIgnite and Netmining--said that Innovation Interactive collects, stores and controls "an immense amount of data on behalf of brands, and providing more valuable insight into how they can reach their customers more effectively will become an important step for us."
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=100552
Melissa Data acquires M1 Data & Analytics
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090206/FREE/902069981/1092/FREE
Data verification and mail management company Melissa Data has acquired M1 Data & Analytics, a provider of telephone and address lookup data, from Metro One Telecommunications.
M1’s data offerings include directory assistance information that telephone companies give 411 providers daily. Adding this capability, Melissa Data will offer current names, phone numbers and addresses of recently moved businesses and residential consumers in the U.S. within the company’s data quality Web services, data enhancement services and mailing lists.
M1 was launched in 2006 by Metro One, based in Beaverton, Ore., to provide data analysis tools for enterprises.
Data verification and mail management company Melissa Data has acquired M1 Data & Analytics, a provider of telephone and address lookup data, from Metro One Telecommunications.
M1’s data offerings include directory assistance information that telephone companies give 411 providers daily. Adding this capability, Melissa Data will offer current names, phone numbers and addresses of recently moved businesses and residential consumers in the U.S. within the company’s data quality Web services, data enhancement services and mailing lists.
M1 was launched in 2006 by Metro One, based in Beaverton, Ore., to provide data analysis tools for enterprises.
Anheuser-Busch Whacks Retainers for Its Agencies
http://adage.com/agencynews/article?article_id=134630
A-B has swapped its long-held retainer-based model of compensating its busiest agencies for a new approach based on an agreed-upon scope of work at the shops. That shift, which has become an increasingly common one for marketers looking to cut agency outlays, puts the agencies on the hook if projects require more hours or greater cost than expected. Other changes include stingier reimbursement rates for production costs and smaller, flat per-concept fees.
A-B has swapped its long-held retainer-based model of compensating its busiest agencies for a new approach based on an agreed-upon scope of work at the shops. That shift, which has become an increasingly common one for marketers looking to cut agency outlays, puts the agencies on the hook if projects require more hours or greater cost than expected. Other changes include stingier reimbursement rates for production costs and smaller, flat per-concept fees.
Cliff Freeman, MDC Partners Cut Ties
http://adage.com/agencynews/article?article_id=134669
"At this stage in Cliff Freeman's evolution, both Cliff and MDC Partners have agreed that it is best for him to control 100% of his company," an MDC spokeswoman said in a statement. "This will allow him to incentivize his new management team going forward. With this in mind, MDC Partners has sold back their 19.9% share."
"I've always believed in the power of the CFP brand," Cliff Freeman said in a statement to Ad Age. "I was granted an opportunity to buy it back and, committed to the best interest of the agency and our clients, opted to do so wholeheartedly."
Published reports placed the figure MDC originally spent for its minority stake at between $3 million and $5 million, but people close to the company estimated that the value of the stake is less than $1 million.
It's not the first time the agency has found itself in this predicament with an outside owner. Saatchi & Saatchi held a stake in Cliff Freeman during the '90s but sold it back to Cliff Freeman management in 1999 for an estimated $4.6 million.
"At this stage in Cliff Freeman's evolution, both Cliff and MDC Partners have agreed that it is best for him to control 100% of his company," an MDC spokeswoman said in a statement. "This will allow him to incentivize his new management team going forward. With this in mind, MDC Partners has sold back their 19.9% share."
"I've always believed in the power of the CFP brand," Cliff Freeman said in a statement to Ad Age. "I was granted an opportunity to buy it back and, committed to the best interest of the agency and our clients, opted to do so wholeheartedly."
Published reports placed the figure MDC originally spent for its minority stake at between $3 million and $5 million, but people close to the company estimated that the value of the stake is less than $1 million.
It's not the first time the agency has found itself in this predicament with an outside owner. Saatchi & Saatchi held a stake in Cliff Freeman during the '90s but sold it back to Cliff Freeman management in 1999 for an estimated $4.6 million.
General Mills Thrives on Increased Marketing Spending
http://adage.com/article?article_id=134670
Boosting TV Ads Hiked Cereal Sales, But Digital ROI Even Higher
The company has staunchly supported consumer-marketing spending increases -- 19% in the first half of fiscal 2009, which began in June -- while competitors, including Kellogg and Kraft, have begun to scale back on the heady marketing outlays of 2008, instead preaching bundling and greater return on investment. General Mills estimates that its consumer-marketing spending will be up by "double digits" for the full fiscal year.
But while the bulk of the company's spend remains on TV, Mr. Friendly said in a conference with reporters that it has begun to see significantly higher return on digital investment. General Mills has been diverting funds online, driving traffic to recipe sites such as BettyCrocker.com. The company's cooking sites had about 8 million visitors last month. General Mills also recently launched a free Betty Crocker iPhone application, which offers meal suggestions based on what's in a consumer's pantry.
"We are seeing very high returns from digital than broadcast," Mr. Friendly said, declining to give the percentage of spending that's moved online. "It's not that our TV ads don't work, but when you're watching TV you're doing it for a different reason. When you go to a website you have a very specific purpose."
Boosting TV Ads Hiked Cereal Sales, But Digital ROI Even Higher
The company has staunchly supported consumer-marketing spending increases -- 19% in the first half of fiscal 2009, which began in June -- while competitors, including Kellogg and Kraft, have begun to scale back on the heady marketing outlays of 2008, instead preaching bundling and greater return on investment. General Mills estimates that its consumer-marketing spending will be up by "double digits" for the full fiscal year.
But while the bulk of the company's spend remains on TV, Mr. Friendly said in a conference with reporters that it has begun to see significantly higher return on digital investment. General Mills has been diverting funds online, driving traffic to recipe sites such as BettyCrocker.com. The company's cooking sites had about 8 million visitors last month. General Mills also recently launched a free Betty Crocker iPhone application, which offers meal suggestions based on what's in a consumer's pantry.
"We are seeing very high returns from digital than broadcast," Mr. Friendly said, declining to give the percentage of spending that's moved online. "It's not that our TV ads don't work, but when you're watching TV you're doing it for a different reason. When you go to a website you have a very specific purpose."
Friday, February 13, 2009
What Maurice Levy Loves About the Recession
Ad Age: Any acquisitions planned yet for 2009?Mr. Levy: The good thing is that we have 2.8 billion euros ($3.6 billion) of liquidity, and at that level, we have the possibility of making acquisitions. But we are not in a hurry or in a frenzy to make acquisitions. We consider that there are many small acquisitions we can make and we are working on, but we currently have no plans for any large acquisitions.
Ad Age: What sectors do you think will be strong in 2009?Mr. Levy: In 2009, we will see the creative agencies coming back very strongly, because advertisers will be in need of great ideas. We may see the Publicis Groupe grow in the field of health care, and for the others, like CRM, PR, this will very much depend on each market, some of which will be on the up and some down. And there is one segment of PR that I call strategy PR, which includes management issues like crisis, that will definitely be on the upturn.
Haggin, SolutionSet Unite
http://www.adweek.com/aw/content_display/news/agency/e3i05341b23a35365d8f2c7c3357643d858
SAN FRANCISCO Independent DM agency Haggin Marketing here said it has acquired i-shop SolutionSet of Palo Alto, Calif. The acquisition adds more than 100 employees to Haggin, for a total of 400. The transaction was financed by Lake Capital, a Chicago-based private equity firm that focuses on investing in leading service-based enterprises.According to Haggin, the deal makes the shop stronger in these key areas: digital marketing, Web site creation, social media and rich interfaces/Web applications.Terms of the acquisition were not disclosed.SolutionSet is known for handling projects on behalf of eBay, TiVo, Stanford University and Autodesk.Jeff Haggin, agency CEO, said in a statement that the acquisition "will translate into great value for our clients."Haggin is a multichannel direct marketing agency that works for clients such as Adidas, American Express, AT&T, Dell, eBay and Sunglass Hut International, among others.
SAN FRANCISCO Independent DM agency Haggin Marketing here said it has acquired i-shop SolutionSet of Palo Alto, Calif. The acquisition adds more than 100 employees to Haggin, for a total of 400. The transaction was financed by Lake Capital, a Chicago-based private equity firm that focuses on investing in leading service-based enterprises.According to Haggin, the deal makes the shop stronger in these key areas: digital marketing, Web site creation, social media and rich interfaces/Web applications.Terms of the acquisition were not disclosed.SolutionSet is known for handling projects on behalf of eBay, TiVo, Stanford University and Autodesk.Jeff Haggin, agency CEO, said in a statement that the acquisition "will translate into great value for our clients."Haggin is a multichannel direct marketing agency that works for clients such as Adidas, American Express, AT&T, Dell, eBay and Sunglass Hut International, among others.
Monday, February 9, 2009
Roger Jewett back in the game at Twist
http://www.marketingmag.ca/english/news/agency/article.jsp?content=20090130_175932_55804
Roger Jewett has jumped back into the marketing business in Calgary with the purchase of a 50% stake in Twist Marketing.
Twist, which was founded in 2002 by Catherine Proulx, provides marketing and communications services to clients that include oil services company BJ Services Company Canada, the Alberta government, Economic Developers Alberta, the City of Castlegar and the Town of Chestermere.
Jewett, founder and former president of Calgary interactive agency Rare Method, left the agency in 2007 after a difference of opinion about the company’s future strategic direction.
“At that time I swore I would never get back into this business,” Jewett said Friday. “But I was impressed with Catherine and the team she built. The company is small but it has a good customer base and does excellent work.”
Roger Jewett has jumped back into the marketing business in Calgary with the purchase of a 50% stake in Twist Marketing.
Twist, which was founded in 2002 by Catherine Proulx, provides marketing and communications services to clients that include oil services company BJ Services Company Canada, the Alberta government, Economic Developers Alberta, the City of Castlegar and the Town of Chestermere.
Jewett, founder and former president of Calgary interactive agency Rare Method, left the agency in 2007 after a difference of opinion about the company’s future strategic direction.
“At that time I swore I would never get back into this business,” Jewett said Friday. “But I was impressed with Catherine and the team she built. The company is small but it has a good customer base and does excellent work.”
Thursday, February 5, 2009
Digital OOH Firms Up for Sale
Two of the nation's largest digital out of home companies are on the block. Cinema rep firm Screenvision and Premier Retail Networks, which operates in-store digital networks, were put up for sale Thursday (Jan. 29) by their owner Thomson. Faced with mounting debt and the likelihood it would breach covenants, the Paris-based company said it would look to divest businesses that don't fit with its core media technology businesses, singling out both PRN and its 50 percent stake in Screenvision. In total, Thomson is targeting divestitures equal to about one billion Euros in 2008 sales.National CineMedia would seem to be the logical buyer for Screenvision. Together, the two rep firms account for 82 percent of the cinema business.
As for PRN, a number of companies would be good prospective buyers, such as CBS Outernet, which operates in-store grocery networks and is expanding into in-store retail, and NBC Everywhere, which has also identified digital out of home as a growing media space.
http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3ib47a6c218351ced35433c8b8327c449d
As for PRN, a number of companies would be good prospective buyers, such as CBS Outernet, which operates in-store grocery networks and is expanding into in-store retail, and NBC Everywhere, which has also identified digital out of home as a growing media space.
http://www.brandweek.com/bw/content_display/news-and-features/shopper-marketing/e3ib47a6c218351ced35433c8b8327c449d
Innotrac merger with GSI canceled
http://atlanta.bizjournals.com/atlanta/stories/2009/01/26/daily91.html?ana=yfcpc
Innotrac Corp. and GSI Commerce Inc. have called off their merger.
In a joint release, the companies said the cancellation is because of “current prevailing market valuations.” Neither company has any financial obligation to the other due to the termination.
Duluth, Ga.-based Innotrac (NASDAQ: INOC) is an order processing, order fulfillment and call center services company. It has fulfillment facilities in Georgia, Illinois, Kentucky, Nevada and Ohio, and a customer care facility in Colorado. The company serves more than 30 clients in the retail, telecommunications and direct marketing industries.
King of Prussia, Pa.-based GSI (NASDAQ: GSIC) is an e-commerce technology and services company.
Innotrac Corp. and GSI Commerce Inc. have called off their merger.
In a joint release, the companies said the cancellation is because of “current prevailing market valuations.” Neither company has any financial obligation to the other due to the termination.
Duluth, Ga.-based Innotrac (NASDAQ: INOC) is an order processing, order fulfillment and call center services company. It has fulfillment facilities in Georgia, Illinois, Kentucky, Nevada and Ohio, and a customer care facility in Colorado. The company serves more than 30 clients in the retail, telecommunications and direct marketing industries.
King of Prussia, Pa.-based GSI (NASDAQ: GSIC) is an e-commerce technology and services company.
Good News: Hershey Ups Ad Spending
Hershey Co. said lower ad pricing offers an opportunity to get more for less--and his company intends to take advantage of it. The company also plans to boost spending by as much as 25% to further capitalize.
Hershey CEO David West said that it became "a little bit more efficient to buy media in the latter part of 2008 and into '09 ... the GRP increase is much, much higher than the actual increase in the rate of the advertising."
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99285
Hershey CEO David West said that it became "a little bit more efficient to buy media in the latter part of 2008 and into '09 ... the GRP increase is much, much higher than the actual increase in the rate of the advertising."
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99285
P&G Remains Bullish On Ad Spending
In a call with investors, Lafley said the marketer of Tide and Crest is "absolutely not" trimming ad dollars. In fact, what's really going on is that the advertising markets are softening--and for the same dollars, we're buying more delivery." That, in turn, has led to "improving our shares of voice" in multiple categories, he said.
Lafley also said P&G is shifting more dollars into coupons, hoping to dovetail with customer behavior in a recession. Spending has also gone up for in-store, point-of-purchase promotions. In some categories, digital spending has increased to some effect, he said.
"We do market-mix modeling--we actually calculate the return on investment on every brand on every element of the mix--and we move the dollars around to where the dollars are more effective and more efficient," Lafley said.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99437
Lafley also said P&G is shifting more dollars into coupons, hoping to dovetail with customer behavior in a recession. Spending has also gone up for in-store, point-of-purchase promotions. In some categories, digital spending has increased to some effect, he said.
"We do market-mix modeling--we actually calculate the return on investment on every brand on every element of the mix--and we move the dollars around to where the dollars are more effective and more efficient," Lafley said.
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=99437
Study: Online marketing spending gains, but measurement lags
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090126/FREE/901269997/1078/newsletter011
The company’s sixth “Alterian Annual Marketing Survey” found that online campaigns involving social networks, e-mail and pay-per-click advertising will increase this year, as 38% of respondents said they planned to increase budgets. Only 20% said they planned to decrease their online marketing budgets.
The study found that only 47% of respondents use analytics to measure their online campaigns.
The company’s sixth “Alterian Annual Marketing Survey” found that online campaigns involving social networks, e-mail and pay-per-click advertising will increase this year, as 38% of respondents said they planned to increase budgets. Only 20% said they planned to decrease their online marketing budgets.
The study found that only 47% of respondents use analytics to measure their online campaigns.
Slack Barshinger acquires Coleman Partners
Slack Barshinger announced it has acquired Coleman Partners, a brand consultancy and advertising agency based here.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090203/FREE/902039985/1078/newsletter011
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20090203/FREE/902039985/1078/newsletter011
Digital Marketplace: Q1 Not a 'Nuclear Winter'
So far, the first months of 2009 aren't looking as dire as once predicted for the online advertising market, according to buyers and sellers. However, many report that business has slowed down, resulting in intensifying pressure on pricing, particularly in the ad networks space.
Depending on whom you talk to, the ad networks are having a rougher time than most. Last week, eMarketer cited a recent report issued by PubMatic (a company that helps facilitate various publishers’ relationships with ad networks) that found ad pricing for small, medium and large sites had plummeted in fourth quarter by 52, 23 and 54 percent year over year, respectively, and that average CPMs for display ads had dropped to just 26 cents. According to PubMatic’s co-founder and general manager Rajeev Goel, the trend has continued. “January has been pretty light,” he said. “What we are hearing from publishers is that they really hope things pick up in February and March.”
One segment of the ad network world that is weathering the economy is online video. Jason Glickman, CEO of the online video network Tremor Media, claims that money continues to flow to his company out of TV. “We actually think Q1 is going to be better than projected,” he said.
http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3ic96aa80f511fb30f1377fb18ac6594b9
Depending on whom you talk to, the ad networks are having a rougher time than most. Last week, eMarketer cited a recent report issued by PubMatic (a company that helps facilitate various publishers’ relationships with ad networks) that found ad pricing for small, medium and large sites had plummeted in fourth quarter by 52, 23 and 54 percent year over year, respectively, and that average CPMs for display ads had dropped to just 26 cents. According to PubMatic’s co-founder and general manager Rajeev Goel, the trend has continued. “January has been pretty light,” he said. “What we are hearing from publishers is that they really hope things pick up in February and March.”
One segment of the ad network world that is weathering the economy is online video. Jason Glickman, CEO of the online video network Tremor Media, claims that money continues to flow to his company out of TV. “We actually think Q1 is going to be better than projected,” he said.
http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3ic96aa80f511fb30f1377fb18ac6594b9
Schering sets biggest digital OOH buy via new MPG unit
Paving the way for new respectability in the digital out-of-home space, health-care and packaged goods advertiser Schering-Plough plans to place the industry’s largest paid buy, estimated to be close to $10 million. The campaign, set for second quarter for a number of its brands, is not only gutsy, it could also be the kind of buy that will help move the medium into the media mainstream.
Over a period of eight to 12 weeks, Schering-Plough advertising for several sun care, footcare and upper respiratory brands will run on 17 digital networks in nine venue categories. To target consumers closer to the point of purchase, Schering-Plough chose networks that reach consumers in varied lifestyle locations from health clubs and physicians’ offices to malls, coffee houses, golf courses and airports.
http://www.mediaweek.com/mw/content_display/news/out-there/digital/e3i6e3ab16ed8b79d8b171ee48249a8ff85
Over a period of eight to 12 weeks, Schering-Plough advertising for several sun care, footcare and upper respiratory brands will run on 17 digital networks in nine venue categories. To target consumers closer to the point of purchase, Schering-Plough chose networks that reach consumers in varied lifestyle locations from health clubs and physicians’ offices to malls, coffee houses, golf courses and airports.
http://www.mediaweek.com/mw/content_display/news/out-there/digital/e3i6e3ab16ed8b79d8b171ee48249a8ff85
Print and TV advertisers may be feeling the pain of lost auto ad dollars, but it’s a growing category for cinema
http://www.mediaweek.com/mw/content_display/news/out-there/place-based/e3i3b5ee64b200b60e18b218517264b0465
In April and May, Nissan is returning to cinema advertising with a 60-second showcase of its new 2009 370Z sports car. Also, from Feb. 28 through March, Kia, a steady cinema advertiser since 2005, will use theater screens to launch Soul, its new hatchback.
Cinema is a core element of Nissan’s marketing for the 370Z. Unlike the marketing for its core models, network TV isn’t even on the Z’s ad GPS—except for targeted sports programming that heavily skews male. “Cinema is the broad-reach medium that we’re leveraging. It’s a core element,” said Chad Jacoby, senior manager of media operations for Nissan. “Cinema is more conducive to a spring and summer launch when TV viewership is down. We’re going where the eyeballs are.”
Meanwhile, Kia plans a traditional TV schedule starting in April, but cinema—because of its big screen, creative flexibility and captive audience—will lead the charge for that flight. “We like being able to introduce the launch with a longer creative version. We feel hamstrung by 30 seconds,” said Tim Chaney, director of marketing communications for Kia Motors America.
Auto advertisers are particularly smitten by cinema’s recall power, which is two to five times more than TV, according to a National CineMedia analysis of data from Nielsen IAG. Last year, for example, the cinema campaign for the Lexus IS F had 75 percent unaided recall.
In April and May, Nissan is returning to cinema advertising with a 60-second showcase of its new 2009 370Z sports car. Also, from Feb. 28 through March, Kia, a steady cinema advertiser since 2005, will use theater screens to launch Soul, its new hatchback.
Cinema is a core element of Nissan’s marketing for the 370Z. Unlike the marketing for its core models, network TV isn’t even on the Z’s ad GPS—except for targeted sports programming that heavily skews male. “Cinema is the broad-reach medium that we’re leveraging. It’s a core element,” said Chad Jacoby, senior manager of media operations for Nissan. “Cinema is more conducive to a spring and summer launch when TV viewership is down. We’re going where the eyeballs are.”
Meanwhile, Kia plans a traditional TV schedule starting in April, but cinema—because of its big screen, creative flexibility and captive audience—will lead the charge for that flight. “We like being able to introduce the launch with a longer creative version. We feel hamstrung by 30 seconds,” said Tim Chaney, director of marketing communications for Kia Motors America.
Auto advertisers are particularly smitten by cinema’s recall power, which is two to five times more than TV, according to a National CineMedia analysis of data from Nielsen IAG. Last year, for example, the cinema campaign for the Lexus IS F had 75 percent unaided recall.
Are Direct-to-Consumer Drug Ads Doomed?
http://www.time.com/time/business/article/0,8599,1876679-1,00.html
So with a new President who has vowed to fight Big Pharma to lower drug costs and a Democratic Congress with several anti-DTC advocates, drug and media companies are justifiably jittery. "We are entering an environment that is going to be more open to those who are adamantly opposed to direct-to-consumer advertising," says Jay Bolling, president of Roska Healthcare Advertising in Montgomery, Pa. (See the top 10 TV ads of 2008.)
However, perhaps the companies shouldn't freak out — yet. The DTC issue has not been floated as an early White House priority; it is unlikely to be dealt with until weeks or months after Obama names a nominee for FDA commissioner, an announcement that could come within days. Plus, some of DTC's most vocal critics in Congress aren't calling for an all-out advertising ban. For example, Democratic Representative Bart Stupak of Michigan, chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, wants a moratorium on DTC ads during a drug's first two years on the market. "Two years will give the FDA and doctors time to see what safety issues arise once a drug is approved," Stupak says. "It will also allow adequate time to educate doctors on how to use the new drug."
So with a new President who has vowed to fight Big Pharma to lower drug costs and a Democratic Congress with several anti-DTC advocates, drug and media companies are justifiably jittery. "We are entering an environment that is going to be more open to those who are adamantly opposed to direct-to-consumer advertising," says Jay Bolling, president of Roska Healthcare Advertising in Montgomery, Pa. (See the top 10 TV ads of 2008.)
However, perhaps the companies shouldn't freak out — yet. The DTC issue has not been floated as an early White House priority; it is unlikely to be dealt with until weeks or months after Obama names a nominee for FDA commissioner, an announcement that could come within days. Plus, some of DTC's most vocal critics in Congress aren't calling for an all-out advertising ban. For example, Democratic Representative Bart Stupak of Michigan, chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, wants a moratorium on DTC ads during a drug's first two years on the market. "Two years will give the FDA and doctors time to see what safety issues arise once a drug is approved," Stupak says. "It will also allow adequate time to educate doctors on how to use the new drug."
More Web Ads Improve Their Aim
Technologies That Target Messages, Gauge Their Impact Gain With Marketers
http://online.wsj.com/article/SB123379182761749823.html?mod=dist_smartbrief
Mr. Byrne says that while Overstock hasn't had much luck with online display advertising in the past, the new, personalized ads drove a sevenfold increase in clicks on the ads and a threefold increase in sales relative to other display ads. "We are ramping it up as quickly as we can," he says.
But as budgets tighten, other formats that can prove they are worth their price are gaining momentum too. Coupons Inc., which makes software to help companies create and distribute online coupons, is among the companies that are benefiting. It has seen a recent surge in interest from advertisers looking for more cost-effective online marketing options, says CEO Steven Boal. Mr. Boal says the company expects to issue $1 billion in coupons this year, up from $300 million last year, and is drawing new customers who appreciate that they pay for the service only when a consumer prints out a coupon.
Committed revenue for the year at Vibrant, which creates in-text ads, has doubled from a year ago, says the company's CEO and co-founder Doug Stevenson. In-text ads appear when a computer user hover a mouse over links that appear in the text on a Web page. Vibrant charges advertisers only when someone clicks on their ads.
http://online.wsj.com/article/SB123379182761749823.html?mod=dist_smartbrief
Mr. Byrne says that while Overstock hasn't had much luck with online display advertising in the past, the new, personalized ads drove a sevenfold increase in clicks on the ads and a threefold increase in sales relative to other display ads. "We are ramping it up as quickly as we can," he says.
But as budgets tighten, other formats that can prove they are worth their price are gaining momentum too. Coupons Inc., which makes software to help companies create and distribute online coupons, is among the companies that are benefiting. It has seen a recent surge in interest from advertisers looking for more cost-effective online marketing options, says CEO Steven Boal. Mr. Boal says the company expects to issue $1 billion in coupons this year, up from $300 million last year, and is drawing new customers who appreciate that they pay for the service only when a consumer prints out a coupon.
Committed revenue for the year at Vibrant, which creates in-text ads, has doubled from a year ago, says the company's CEO and co-founder Doug Stevenson. In-text ads appear when a computer user hover a mouse over links that appear in the text on a Web page. Vibrant charges advertisers only when someone clicks on their ads.
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