http://promomagazine.com/news/online-ad-spending-bottoming-out-1215/
Marketing research firm eMarketer has revised its estimate for U.S. Web advertising once again, and now says spending this year will represent a 4.6% decrease over last year's online ad budget.
The agency forecasts that companies will turn out to have spent $22.4 billion on Internet-based advertising this year, primarily in the categories of search marketing, display ads and online classifieds.
Previously eMarketer also revised its online ad estimated downward in October, saying that online U.S. ad spending for the year would drop off by 2.6%. prior to that earlier revision, the company had been anticipating spending growth of 4.5% in the market.
Right now eMarketer expects U.S. spending on online advertising to increase by 5.5% in 2010. The main driver will be the rise of online video advertising, which Hallerman expects will become "the main form of brand advertising in the digital space." Spending on online video will grow at yearly rates ranging from 34% to 54% until 2014, in eMarketer's estimate, and increase from a total of 41.4 billion in 2010 to a projected $5.2 billion in 2014.
Monday, December 21, 2009
Coupons, E-mail, Self-checkout Big Winners in Digital Shopping: Study
http://promomagazine.com/retail/news/1209-digital-shopping-study/
The most successful technologies, including Internet coupons, e-mail, online ratings and reviews and self-checkout, must provide three benefits: value, help in making decisions and improved ease of shopping, the study found.
At-home technologies have the highest adoption rates among consumers since most people have access to a computer and the technologies are simple and user friendly.
Once inside stores, self-checkout is the most widely adopted technology used (71%), followed by DVD rentals (23%) and on-pack promotions that requires the consumer to go to a Web site (21%). Interestingly, interactive TV and TVs at Walmart had been used by only 6%. Handheld scanners, kiosks for swiping loyalty cards to receive personalized coupons and touch screen signage showed high interest.
Mobile technology is on the horizon to become the “next killer app,” the report said. The broad array of applications offer marketers a venue to serve up relevant information to shoppers wherever they may be.
The survey also found that consumers visit retail and brand sites for very different reasons and that if the two worked in partnership it could improve results for both. Because the retailer draws large numbers of shoppers to research and find the best prices, the brand can add value to the site by providing content to help drive traffic and loyalty.
The most successful technologies, including Internet coupons, e-mail, online ratings and reviews and self-checkout, must provide three benefits: value, help in making decisions and improved ease of shopping, the study found.
At-home technologies have the highest adoption rates among consumers since most people have access to a computer and the technologies are simple and user friendly.
Once inside stores, self-checkout is the most widely adopted technology used (71%), followed by DVD rentals (23%) and on-pack promotions that requires the consumer to go to a Web site (21%). Interestingly, interactive TV and TVs at Walmart had been used by only 6%. Handheld scanners, kiosks for swiping loyalty cards to receive personalized coupons and touch screen signage showed high interest.
Mobile technology is on the horizon to become the “next killer app,” the report said. The broad array of applications offer marketers a venue to serve up relevant information to shoppers wherever they may be.
The survey also found that consumers visit retail and brand sites for very different reasons and that if the two worked in partnership it could improve results for both. Because the retailer draws large numbers of shoppers to research and find the best prices, the brand can add value to the site by providing content to help drive traffic and loyalty.
DirectMail.com acquires Eagle Direct, expands sales division
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091209/FREE/912099998/1078/newsletter011
Integrated direct marketing company DirectMail.com has acquired Eagle Direct, a specialist in personalized multi-insert pieces.
Financial terms of the deal were not disclosed.
In the past, DirectMail.com has outsourced its own insert needs to Upper Marlboro, Md.-based Eagle Direct to manage its production overflows. DirectMail said the acquisition will increase its capacity by more than 500,000 pieces per day and boost its ability to produce multi-insert packages.
Eagle Direct owner Deborah Albro will become VP-customer service and operations with DirectMail.
Integrated direct marketing company DirectMail.com has acquired Eagle Direct, a specialist in personalized multi-insert pieces.
Financial terms of the deal were not disclosed.
In the past, DirectMail.com has outsourced its own insert needs to Upper Marlboro, Md.-based Eagle Direct to manage its production overflows. DirectMail said the acquisition will increase its capacity by more than 500,000 pieces per day and boost its ability to produce multi-insert packages.
Eagle Direct owner Deborah Albro will become VP-customer service and operations with DirectMail.
UBM acquires Virtual Press Office
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091215/MEDIABUSINESS/912159991/1078/newsletter011
United Business Media announced Monday that it has acquired Virtual Press Office in a deal potentially valued at $10 million. VPO will become part of UBM's PR Newswire.
VPO provides communications and marketing services to event organizers, exhibitors and attendees. The business, which was launched in 1996, now serves more than 500 tradeshows.
UBM said VPO will help position PR Newswire as a leader in providing marketing communications services for the U.S. event market. It expects VPO to generate $2.2 million in revenue this year.
United Business Media announced Monday that it has acquired Virtual Press Office in a deal potentially valued at $10 million. VPO will become part of UBM's PR Newswire.
VPO provides communications and marketing services to event organizers, exhibitors and attendees. The business, which was launched in 1996, now serves more than 500 tradeshows.
UBM said VPO will help position PR Newswire as a leader in providing marketing communications services for the U.S. event market. It expects VPO to generate $2.2 million in revenue this year.
Definition 6 acquires Leach Communications
Interactive agency Definition 6 announced it has acquired Leach Communications, a New York public relations and Web services company.
Financial terms of the deal were not disclosed.
Definition 6 plans to integrate Leach Communications' PR capabilities into its integrated online marketing services. Alfred Leach, founder and president of Leach Communications, will lead Definition 6's national public relations and communications practice.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091216/FREE/912169994/1078/newsletter011
Financial terms of the deal were not disclosed.
Definition 6 plans to integrate Leach Communications' PR capabilities into its integrated online marketing services. Alfred Leach, founder and president of Leach Communications, will lead Definition 6's national public relations and communications practice.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091216/FREE/912169994/1078/newsletter011
Knowledge Networks acquires Caduceus Marketing Research
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189995/1078/newsletter011
Knowledge Networks announced the acquisition of Caduceus Marketing Research, a pharmaceutical and biotech market research firm. Financial terms were undisclosed. The acquisition will expand Knowledge Networks’ full-service market research services to pharmaceutical manufacturers and other health care professionals.
Knowledge Networks announced the acquisition of Caduceus Marketing Research, a pharmaceutical and biotech market research firm. Financial terms were undisclosed. The acquisition will expand Knowledge Networks’ full-service market research services to pharmaceutical manufacturers and other health care professionals.
Sale of Questex to senior lenders completed
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189993/1078/newsletter011
Questex Media Group LLC announced Thursday that it has completed its acquisition of the assets of QMG Holdings Inc. and Questex Media Group Inc., both of which had filed for Chapter 11 protection.
The new company, which comprises senior lenders of the predecessor companies, has separate financing and is not subject to the Chapter 11 cases filed by QMG Holdings or Questex Media Group Inc. The newly formed company now owns Questex's magazines, online media and events as well as InfoTrends, FierceMarkets, FiveStarAlliance, ImagingNetworks, Oxford Publishing and McLean Events International.
Questex Media Group LLC announced Thursday that it has completed its acquisition of the assets of QMG Holdings Inc. and Questex Media Group Inc., both of which had filed for Chapter 11 protection.
The new company, which comprises senior lenders of the predecessor companies, has separate financing and is not subject to the Chapter 11 cases filed by QMG Holdings or Questex Media Group Inc. The newly formed company now owns Questex's magazines, online media and events as well as InfoTrends, FierceMarkets, FiveStarAlliance, ImagingNetworks, Oxford Publishing and McLean Events International.
StrongMail acquires Email Advisor marketing consultancy
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189996/1092/newsletter011
StrongMail said the acquisition of The Email Advisor, which specializes in data analysis, targeting and channel integration, adds expertise in the consumer packaged goods, travel, hospital and association industries.
In July, StrongMail acquired PopularMedia, a provider of social media and marketing solutions, adding PopularMedia's Social Notes functionality that allows the sharing of e-mail or Web site content with most social networks.
StrongMail said the acquisition of The Email Advisor, which specializes in data analysis, targeting and channel integration, adds expertise in the consumer packaged goods, travel, hospital and association industries.
In July, StrongMail acquired PopularMedia, a provider of social media and marketing solutions, adding PopularMedia's Social Notes functionality that allows the sharing of e-mail or Web site content with most social networks.
Marketers spend record amount on branded content
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091218/FREE/912189998/1092/newsletter011
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
Marketers spent more on branded content in 2009 than in any previous measured year, according to a study, "The ContentWise and Custom Publishing Councils' 2009 Spending: A Look at How Corporate America Invests in Branded Content," released Thursday by the Custom Publishing Council.
The CPC said that branded content was double that of 2008 and the highest amount since the study was first conducted in 2003. The CPC said that per-company spending among companies surveyed totaled $1.8 million, with 51% spent on custom print publications, 27% on Internet media and 22% on categories including video and audio, which were measured for the first time this year. According to the survey, branded content accounted for 32% of overall marketing, advertising and communications budgets.
Leadership, ownership change at Doner
http://adage.com/agencynews/article?article_id=141141
Mr. Kalter, 62, announced his departure in a memo to the agency this morning, saying he is selling the agency to three of its top remaining executives, Chief Operating Officer David DeMuth, Chief Creative Officer Rob Strasberg and President Tim Blett.
First, the agency's longtime creative force and vice chairman, John DeCerchio, departed the agency and then sued it in a dispute over the size of the payout related to his 32% equity stake in the shop. Mr. DeCerchio said he was owed $55 million over 10 years; Doner said he was owed $51.5 million.
Another partner and 30-plus-year executive at the agency, H. Barry Levine, quit after Mr. Kalter admitted that the agency's pension fund was not in compliance with federal disclosure laws and regulations.
Mr. Kalter, 62, announced his departure in a memo to the agency this morning, saying he is selling the agency to three of its top remaining executives, Chief Operating Officer David DeMuth, Chief Creative Officer Rob Strasberg and President Tim Blett.
First, the agency's longtime creative force and vice chairman, John DeCerchio, departed the agency and then sued it in a dispute over the size of the payout related to his 32% equity stake in the shop. Mr. DeCerchio said he was owed $55 million over 10 years; Doner said he was owed $51.5 million.
Another partner and 30-plus-year executive at the agency, H. Barry Levine, quit after Mr. Kalter admitted that the agency's pension fund was not in compliance with federal disclosure laws and regulations.
Friday, December 18, 2009
Spendthrift to Penny Pincher: A Vision of the New Consumer
http://online.wsj.com/article/SB126100996572894719.html?mod=dist_smartbrief&mg=com-wsj
The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth.
"We seem to be at a cultural inflection point that we haven't seen since World War II," said Jim Taylor, vice chairman of market researcher the Harrison Group. Last month it surveyed 1,800 affluent Americans and found that 48% think they could suffer major financial losses in the future. "People are getting used to being careful, and I don't know how you undo that," Mr. Taylor said
The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth.
"We seem to be at a cultural inflection point that we haven't seen since World War II," said Jim Taylor, vice chairman of market researcher the Harrison Group. Last month it surveyed 1,800 affluent Americans and found that 48% think they could suffer major financial losses in the future. "People are getting used to being careful, and I don't know how you undo that," Mr. Taylor said
Ads Garfield Admired in 2009
http://adage.com/garfield/post?article_id=140999
EXPENSE-A-STEAK
ETSY
APPLE
MONSTER.COM
UNITED BREAKS GUITARS
GWENT POLICE DEPARTMENT
WENDY'S
JET BLUE
SHREDDED WHEAT
EXPENSE-A-STEAK
ETSY
APPLE
MONSTER.COM
UNITED BREAKS GUITARS
GWENT POLICE DEPARTMENT
WENDY'S
JET BLUE
SHREDDED WHEAT
The Six Twitter Types
http://www.openforum.com/idea-hub/topics/the-world/article/the-six-twitter-types-guy-kawasaki
From Guy Kawasaki
1. The Newbie
2. The Brand
3. The Smore
4. The Bitch
5. The Maven
6. The Mensch
His Twitter 101
http://bagtheweb.com/b/4QfhjBOseBAF
From Guy Kawasaki
1. The Newbie
2. The Brand
3. The Smore
4. The Bitch
5. The Maven
6. The Mensch
His Twitter 101
http://bagtheweb.com/b/4QfhjBOseBAF
Friday, December 11, 2009
Forecasters Predict Ad Stabilization in 2010
The global advertising market will start to stabilize next year, following double-digits declines in 2009, but more-established markets such as the U.S. won't gain steam for some time, according to some of Madison Avenue's most closely watched forecasts.
http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html?mod=dist_smartbrief
Fallout from the global financial crisis will linger in the U.S. ad market in 2010, the forecasts say. Interpublic Group media agency Magna predicts that U.S. ad revenues—the revenue reaped by media companies in selling ad space and time—will grow just 0.2% to $162.7 billion and reach low-single-digit growth rates by 2012. Publicis Groupe's Zenith Optimedia, which tracks ad spending instead, projects that it will shrink 2.6% to $144 billion in the U.S next year.
http://online.wsj.com/article/SB10001424052748704825504574582310496271156.html?mod=dist_smartbrief
Fallout from the global financial crisis will linger in the U.S. ad market in 2010, the forecasts say. Interpublic Group media agency Magna predicts that U.S. ad revenues—the revenue reaped by media companies in selling ad space and time—will grow just 0.2% to $162.7 billion and reach low-single-digit growth rates by 2012. Publicis Groupe's Zenith Optimedia, which tracks ad spending instead, projects that it will shrink 2.6% to $144 billion in the U.S next year.
'Great Race' Between Traditional, Digital Shops
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers.
http://www.adweek.com/aw/content_display/news/digital/e3ibcf36932032fa8afc111d9672a21abe8
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers. Forrester Research conducted a "state of interactive agencies" survey of about 100 global interactive marketers. It found just 23 percent believed their "traditional brand agency" is capable of planning and managing interactive marketing activities. About 46 percent did not believe them capable, with the rest neutral on the question.
http://www.adweek.com/aw/content_display/news/digital/e3ibcf36932032fa8afc111d9672a21abe8
Clients generally distrust their traditional agencies when it comes to digital, but they're still wary of handing over the keys to overall brand strategy to the Web specialists, according to a new survey of marketers. Forrester Research conducted a "state of interactive agencies" survey of about 100 global interactive marketers. It found just 23 percent believed their "traditional brand agency" is capable of planning and managing interactive marketing activities. About 46 percent did not believe them capable, with the rest neutral on the question.
Martin Sorrell: vicious price competition
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=118803
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
The lingering effects of the global economic recession have led to "vicious price competition" among media services shops, including at least two situations in which agencies have personally guaranteed the media prices paid by their clients, noted Martin Sorrell, CEO of WPP, the world's largest buyer of media.
Speaking at the UBS Media Week conference in New York, Sorrell did not disclose the names of the media shops, but said at least one of the deals -- which he described as "giving guarantees on media pricing beyond the fees" the agencies receive -- has led to a lawsuit by a client seeking to enforce the guarantee.
"It's been denied, but I would rebut the denial," Sorrell said, calling the practice "extremely dangerous in my view. It's particularly dangerous if we see media price inflation."
He said that's likely to happen, despite the fact that media suppliers have sought to control their margins by cutting costs; there already is some evidence of media price inflation. For example, network TV scatter prices have surged relative to the prices advertisers paid during last year's upfront marketplace in the U.S.
Sorrell said the media price guarantee practice was one of several "short-sighted" steps being taken by agencies, media companies and clients alike to deal with the pressures of the global economic recession. As far as WPP is concerned, "media continues to be the really tough part of the business."
He cited the incessant pressure from client procurement departments to put greater pressure on agency fees, as well as the prices they pay the media.
Sorrell characterized such advertising marketplace behaviors as irrational, and attributed them as reactions to the near economic collapse that happened last year. Also, that many companies have simply been seeking to remain in business, as opposed to developing long-term strategies to grow their businesses.
He began his talk by shaking his head at the giddiness of some media companies reporting revenue declines of as much as 25%.
"How can you defend that the minus 25% is an acceptable solution? Or that you get some sort of joy from reporting numbers like that?" Sorrell emphasized later during the question-and-answer portion of his presentation. "In three years, you're out of business."
Sorrell did say that the marketplace appeared to have improved in November, but that it is not clear how sustainable that growth might prove to be.
He described the turn as being "more, less worse," and even suggested that the characterization would be "mis-reported" by the trade press, but what he meant was that on a relative basis, the ad industry is losing less ground than it had been at the height of the recession.
He said the global advertising outlook is more likely to look like the forecasts reported on Tuesday by his GroupM unit and Publicis' ZenithOptimedia, which called for slightly less than 1% expansion in 2010, and called Interpublic's forecast of 6% growth a "rogue" forecast.
Sorrell said the real engines of growth continue to be digital media and emerging markets -- especially China -- but characterized some new digital media phenomenon, particularly social networks like Facebook and microblogs like Twitter as potentially being short-lived, and said it is rare that digital media companies such as Google emerge with long-term traction in the advertising marketplace.
He also said that mobile media remains more underdeveloped than he would have expected, or would like to see, but that he believes Google's new Adroid operating system, and the smartphones being powered by it, would ultimately create a marketplace around mobile search and mobile advertising models.
"Google is the push for this," Sorrell predicted.
Wednesday, December 9, 2009
OutdoorPartner Media announces agreement to sell Intelligent Media Corporation assets
http://finance.yahoo.com/news/OutdoorPartner-Media-cnw-1788421196.html?x=0&.v=1
OutdoorPartner and it U.S. operating subsidiary, Intelligent Media Corporation operating under the name Prime Point Media ("PPM"), have entered into an agreement dated December 7, 2009 (the "Purchase Agreement") with Brite Media Group LLC ("Brite Media") and a newly formed subsidiary of Brite Media ( "NewCo"), pursuant to which PPM has agreed to sell substantially all of its assets, including all of its phone kiosk and other media-related assets (the "Phone Kiosk Assets"). Pursuant to the terms of the Purchase Agreement, in exchange for the Phone Kiosk Assets, NewCo will assume certain liabilities and pay OutdoorPartner cash consideration of US$2.0 million, subject to a working capital adjustment and an adjustment based on revenue between closing and April 30, 2010. Closing is conditional on obtaining OutdoorPartner shareholder approval and other customary conditions, including receipt of all necessary regulatory approvals. The Purchase Agreement includes a non-solicitation covenant by OutdoorPartner, subject to customary provisions that entitle OutdoorPartner to consider and accept a superior proposal, as defined in the Purchase Agreement, to purchase the Phone Kiosk Assets or all of the assets or share capital of OutdoorPartner. The Purchase Agreement also provides NewCo with the right to match any superior proposal and provides for a termination payment of US$195,000 payable by OutdoorPartner to NewCo if the Transaction is terminated as a result of a superior proposal. In addition, the Purchase Agreement provides for a termination payment of US$100,000 payable by OutdoorPartner to NewCo if the Transaction is not approved by OutdoorPartner shareholders.
OutdoorPartner and it U.S. operating subsidiary, Intelligent Media Corporation operating under the name Prime Point Media ("PPM"), have entered into an agreement dated December 7, 2009 (the "Purchase Agreement") with Brite Media Group LLC ("Brite Media") and a newly formed subsidiary of Brite Media ( "NewCo"), pursuant to which PPM has agreed to sell substantially all of its assets, including all of its phone kiosk and other media-related assets (the "Phone Kiosk Assets"). Pursuant to the terms of the Purchase Agreement, in exchange for the Phone Kiosk Assets, NewCo will assume certain liabilities and pay OutdoorPartner cash consideration of US$2.0 million, subject to a working capital adjustment and an adjustment based on revenue between closing and April 30, 2010. Closing is conditional on obtaining OutdoorPartner shareholder approval and other customary conditions, including receipt of all necessary regulatory approvals. The Purchase Agreement includes a non-solicitation covenant by OutdoorPartner, subject to customary provisions that entitle OutdoorPartner to consider and accept a superior proposal, as defined in the Purchase Agreement, to purchase the Phone Kiosk Assets or all of the assets or share capital of OutdoorPartner. The Purchase Agreement also provides NewCo with the right to match any superior proposal and provides for a termination payment of US$195,000 payable by OutdoorPartner to NewCo if the Transaction is terminated as a result of a superior proposal. In addition, the Purchase Agreement provides for a termination payment of US$100,000 payable by OutdoorPartner to NewCo if the Transaction is not approved by OutdoorPartner shareholders.
Cosmos ends four-month bid for Cossette ad agency
http://www.reuters.com/article/idCAN0717927520091207?rpc=44
Cosmos Capital Inc, a Canadian private equity group, said late on Monday it withdrew from a bidding war for the nation's largest domestic advertiser, Cossette Inc, four months after its first bid was rejected.
Cosmos Capital Inc, a Canadian private equity group, said late on Monday it withdrew from a bidding war for the nation's largest domestic advertiser, Cossette Inc, four months after its first bid was rejected.
MDC Partners Announces Agreement To Acquire Communifx, A Leading Analytics And Database Marketing Firm
http://finance.yahoo.com/news/MDC-Partners-Announces-prnews-3676823553.html?x=0&.v=2
MDC Partners Inc. announced today that it has entered into an agreement to acquire Communifx, a data analytics and database marketing firm that specializes in engagement marketing and optimization solutions.
The acquisition of Communifx is expected to be a very important strategic addition to MDC Partners Performance Marketing Services Group. Communifx specializes in the development and delivery of consumer engagement marketing solutions, and is unique in its approach to underpinning interactive and social marketing platforms with database and analytics technology, thereby informing each customer engagement with insights that ultimately deliver greater value for the brand and the consumer. The firm offers a comprehensive range of services from consumer engagement strategy development, to database management and analytics, concept design and implementation, to production and execution of data-driven marketing ideas and initiatives. Communifx's services will be integrated with the offerings of MDC's existing firms to provide a broader scope of solutions to the marketplace.
MDC Partners Inc. announced today that it has entered into an agreement to acquire Communifx, a data analytics and database marketing firm that specializes in engagement marketing and optimization solutions.
The acquisition of Communifx is expected to be a very important strategic addition to MDC Partners Performance Marketing Services Group. Communifx specializes in the development and delivery of consumer engagement marketing solutions, and is unique in its approach to underpinning interactive and social marketing platforms with database and analytics technology, thereby informing each customer engagement with insights that ultimately deliver greater value for the brand and the consumer. The firm offers a comprehensive range of services from consumer engagement strategy development, to database management and analytics, concept design and implementation, to production and execution of data-driven marketing ideas and initiatives. Communifx's services will be integrated with the offerings of MDC's existing firms to provide a broader scope of solutions to the marketplace.
Uptick in Global Ad Spending Is Forecast for 2010
http://www.nytimes.com/2009/12/09/business/media/09adco.html?partner=yahoofinance
The predictions all called for an increase in worldwide ad spending in 2010 compared with 2009, which by most measures will end up as the worst year in decades. Still, there were caveats, among them an expectation for a less robust recovery in the United States than in other markets and continued weakness in demand for ads in print media like magazines and newspapers.
And ad spending is unlikely to snap back quickly, the forecasters warned, but rather will take several years to return to the levels of 2007 or 2008.
In ascending order, the forecasts for 2010 compared with 2009 call for an increase of 0.8 percent, from the GroupM unit of WPP; 0.9 percent, from the ZenithOptimedia division of the Publicis Groupe; and 5.9 percent, from the Magna unit of Mediabrands, a division of the Interpublic Group of Companies. (A forecast from UBS, offered during the panel discussion, was for an increase of 3.9 percent.)
Of the 10 largest advertisers in the United States for the first nine months of 2009, TNS reported, eight spent less than they did during the same period a year ago. The exceptions were Pfizer, up 11 percent, and Sprint Nextel, up 51.1 percent. The declines ranged from 1.3 percent for Johnson & Johnson to 15.9 percent for the largest advertiser, Procter & Gamble.
The predictions all called for an increase in worldwide ad spending in 2010 compared with 2009, which by most measures will end up as the worst year in decades. Still, there were caveats, among them an expectation for a less robust recovery in the United States than in other markets and continued weakness in demand for ads in print media like magazines and newspapers.
And ad spending is unlikely to snap back quickly, the forecasters warned, but rather will take several years to return to the levels of 2007 or 2008.
In ascending order, the forecasts for 2010 compared with 2009 call for an increase of 0.8 percent, from the GroupM unit of WPP; 0.9 percent, from the ZenithOptimedia division of the Publicis Groupe; and 5.9 percent, from the Magna unit of Mediabrands, a division of the Interpublic Group of Companies. (A forecast from UBS, offered during the panel discussion, was for an increase of 3.9 percent.)
Of the 10 largest advertisers in the United States for the first nine months of 2009, TNS reported, eight spent less than they did during the same period a year ago. The exceptions were Pfizer, up 11 percent, and Sprint Nextel, up 51.1 percent. The declines ranged from 1.3 percent for Johnson & Johnson to 15.9 percent for the largest advertiser, Procter & Gamble.
Forecast: Online Will Take More Ad Dollars Than Newspapers By 2015
http://paidcontent.org/article/419-forecast-online-will-take-more-ad-dollars-than-newspapers-by-2015/
The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.
While those two media will go on attracting more money up to 2012, all others are flat or in decline. Though newspapers now enjoy a 10.9 percent lead over the internet for share of ad dollars, the lead will slim to just 3.8 percent by 2012, when the internet will take 16.2 percent of all spend.
Zenith says: “We expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half-way through the next decade.”
The net was the only medium to attract more money in 2009 in Zenith’s figures, though its growth curve is flatter than the early-2000s heyday growth of 40+ percent a year. It’s now on track for more modest but consistent growth pace of 9.5 percent (2010), 12 percent (2011) and 13 percent (2012), in line with that of TV, which will remain the dominant medium.
While those two media will go on attracting more money up to 2012, all others are flat or in decline. Though newspapers now enjoy a 10.9 percent lead over the internet for share of ad dollars, the lead will slim to just 3.8 percent by 2012, when the internet will take 16.2 percent of all spend.
Zenith says: “We expect the internet to overtake newspapers to become the world’s second-largest advertising medium by the time we are half-way through the next decade.”
Monday, December 7, 2009
Phil Geier's Tips for Survival
http://adage.com/agencynews/article?article_id=140895
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Mr. Geier started at McCann-Erickson in 1958 and in 2000 retired as chairman-CEO of Interpublic Group of Cos. after a 20-year run in that post. A onetime chairman of the Ad Council, he currently serves as chairman of the Geier Group, a New York-based marketing communications and venture-capital firm.
Now 74, he began working on his first book, "Survive to Thrive: Sustaining Yourself, Your Brand, and Your Business from Recession to Recovery," last spring. The 250-page tome is written in the form of a time line, interspersed with business lessons learned working with blue-chip Interpublic clients such as Coca-Cola, Nestle and L'Oréal.
Mr. Geier: This one is a much tougher recession than the others because of the fact that the financial infrastructure has been semi-destroyed. In the past that's not been the problem, it has been that consumer aspects are hurt. This is worse, and it's going to take longer to come out of. The problem now is getting the consumer to spend, because if we don't do that, the economy isn't going to come back. You've got to entice them to save and spend at the same time, which is not easy.
The holding-company operation is still valid as long as it maintains the position that they can provide administrative and financial services in the center, and at a lower cost than they would if they were in the individual agencies. But [regardless of the model] the most important thing is making sure that the right people are in place at the agencies.
Friday, December 4, 2009
B-to-b print, trade show and digital revenues decline
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20091201/MEDIABUSINESS/912019990/1078/newsletter011
B-to-b print, trade show and digital marketing revenues continued their declines through the first three quarters of this year, according to data released Tuesday by American Business Media’s Business Information Network.
Print revenue fell 25.7% in the first three quarters of this year compared with the same period last year. Trade show revenue declined 19.2%, and digital revenue dipped 3.0%.
B-to-b spending on these three marketing platforms totaled $15.1 billion for the period, a drop off of 19.3% from the year-earlier period. Print’s share of b-to-b revenue fell from 40.7% in the first three quarters of 2008 to 37.4% this year. In the same time frame, trade shows’ share of revenue remained steady at 41.6%, while digital’s share of revenue climbed from 17.7% to 20.9%.
B-to-b print, trade show and digital marketing revenues continued their declines through the first three quarters of this year, according to data released Tuesday by American Business Media’s Business Information Network.
Print revenue fell 25.7% in the first three quarters of this year compared with the same period last year. Trade show revenue declined 19.2%, and digital revenue dipped 3.0%.
B-to-b spending on these three marketing platforms totaled $15.1 billion for the period, a drop off of 19.3% from the year-earlier period. Print’s share of b-to-b revenue fell from 40.7% in the first three quarters of 2008 to 37.4% this year. In the same time frame, trade shows’ share of revenue remained steady at 41.6%, while digital’s share of revenue climbed from 17.7% to 20.9%.
Cheil Worldwide acquires Barbarian Group
http://www.dmnews.com/cheil-worldwide-acquires-barbarian-group/article/159025/
Cheil Worldwide, a Korea-based agency, acquired a majority stake in New York-based digital firm The Barbarian Group this week. Terms of the deal were not disclosed.
Barbarian, founded in 2001, will keep its brand and office. Its three founders will continue to run the company. The deal, signed December 2, is expected to close next week.
“We want to be bolder and more capable, and we are excited that Cheil can provide that opportunity for us,” said Rick Webb, co-founder and COO of Barbarian, in a blog post.
The acquisition of Barbarian, known for pushing the envelope in creative campaigns, including Burger King's “Subservient Chicken” video and the Virgin America "Name our Planes" campaign, is part of Cheil's long-term growth plans, as the group looks to do more business in the US, according to a company statement.
Cheil, which was ranked as the 16th-largest agency company in the world by Advertising Age, has offices in 25 countries, as well as in New Jersey and Dallas. Yet this deal gives the company a New York presences for the first time.
http://www.newswire.ca/en/releases/archive/December2009/02/c7325.html
The Barbarian Group was founded in 2001 in Palmer's apartment with a borrowed $500 and a dream to reinvent the way agencies worked with production companies to create effective digital marketing. They mastered that dream by 2004, culminating in their work for Burger King. From there, the company expanded beyond production roots, indeed, beyond "digital advertising" as the agency world views it. Today, the company has three offices, and provides a full range of digital marketing, planning, technology and strategy not just to brands such as Kashi and Red Bull, but to technology companies, publishers and entertainment properties. Their recent work with CNN Shirts and their work with several start ups illustrates this diverse client base. As a result, The Barbarian Group is now one of the most respected digital marketing companies.
Cheil Worldwide, a Korea-based agency, acquired a majority stake in New York-based digital firm The Barbarian Group this week. Terms of the deal were not disclosed.
Barbarian, founded in 2001, will keep its brand and office. Its three founders will continue to run the company. The deal, signed December 2, is expected to close next week.
“We want to be bolder and more capable, and we are excited that Cheil can provide that opportunity for us,” said Rick Webb, co-founder and COO of Barbarian, in a blog post.
The acquisition of Barbarian, known for pushing the envelope in creative campaigns, including Burger King's “Subservient Chicken” video and the Virgin America "Name our Planes" campaign, is part of Cheil's long-term growth plans, as the group looks to do more business in the US, according to a company statement.
Cheil, which was ranked as the 16th-largest agency company in the world by Advertising Age, has offices in 25 countries, as well as in New Jersey and Dallas. Yet this deal gives the company a New York presences for the first time.
http://www.newswire.ca/en/releases/archive/December2009/02/c7325.html
The Barbarian Group was founded in 2001 in Palmer's apartment with a borrowed $500 and a dream to reinvent the way agencies worked with production companies to create effective digital marketing. They mastered that dream by 2004, culminating in their work for Burger King. From there, the company expanded beyond production roots, indeed, beyond "digital advertising" as the agency world views it. Today, the company has three offices, and provides a full range of digital marketing, planning, technology and strategy not just to brands such as Kashi and Red Bull, but to technology companies, publishers and entertainment properties. Their recent work with CNN Shirts and their work with several start ups illustrates this diverse client base. As a result, The Barbarian Group is now one of the most respected digital marketing companies.
Wednesday, December 2, 2009
Digital Agency Will Take Over Advertiser’s Creative Account
In another sign of the growing importance of digital advertising, an agency that specializes in interactive work is being named to handle the entire creative assignment for a marketer of financial services.
R/GA in New York, part of the Interpublic Group of Companies, is to be named on Wednesday as the creative agency of record for Ameriprise Financial. The assignment to create campaigns for Ameriprise, with annual spending estimated at $30 million, had been handled for the past four years by Saatchi & Saatchi in New York, part of the Publicis Groupe.
Although R/GA “is known for its digital work,” said Kim M. Sharan, chief marketing officer at Ameriprise in Minneapolis, the agency “brought us some fresh creative ideas” that warranted naming R/GA to create campaigns in all forms of media.
Of course, the digital experience of R/GA factored into the decision, too. In reaching its desired audience of consumers who are, as Ms. Sharan put it, ages “40 to 65-ish,” advertising online “has been, and continues to be, an important area to beef up,” she said.
http://mediadecoder.blogs.nytimes.com/2009/12/02/digital-agency-taking-over-advertisers-entire-creative-account/
R/GA in New York, part of the Interpublic Group of Companies, is to be named on Wednesday as the creative agency of record for Ameriprise Financial. The assignment to create campaigns for Ameriprise, with annual spending estimated at $30 million, had been handled for the past four years by Saatchi & Saatchi in New York, part of the Publicis Groupe.
Although R/GA “is known for its digital work,” said Kim M. Sharan, chief marketing officer at Ameriprise in Minneapolis, the agency “brought us some fresh creative ideas” that warranted naming R/GA to create campaigns in all forms of media.
Of course, the digital experience of R/GA factored into the decision, too. In reaching its desired audience of consumers who are, as Ms. Sharan put it, ages “40 to 65-ish,” advertising online “has been, and continues to be, an important area to beef up,” she said.
http://mediadecoder.blogs.nytimes.com/2009/12/02/digital-agency-taking-over-advertisers-entire-creative-account/
Cossette value double since putting itself on sale
http://www.reuters.com/article/marketsNews/idCAN2639561320091126?rpc=44
Saying "no" to a hostile bid has virtually doubled the value of Cossette Inc (KOS.TO) and set the stage for a showdown next month between two private equity firms wooing Canada's biggest home-grown ad agency.
Stock in the Quebec-based company languished at C$3.25 a share, close to an all-time low, when Canadian private equity firm Cosmos Capital took a first run at the company in July. Its C$4.95-a-share offer valued the agency at C$78.2 million ($73 million).
Cossette responded by putting itself on the block and hiring Bank of Montreal (BMO.TO) to drum up suitors. It now trades at over C$8 a share as bids or proposals -- there have been five so far -- keep getting higher even as struggling global markets keep advertisers in a trough.
"The board did its job," said one observer, commending Cossette decision makers for not seizing the first bid to come along.
As recently as in 2007 Cossette stock was worth almost C$14 a share, but that was before it lost some key accounts and before most of the modern world entered recession.
The agency has offices in Britain, the United States and China, as well as Canada. It has a major presence in the French-speaking province of Quebec, a difficult market for foreign companies to crack.
But the battle for control has become increasingly acrimonious, and Cossette's challenge is to identify the best bidder, without ruining the chances of a deal.
WHICH ONE?
The two bids currently on the table are each worth C$7.87 a share, one of them from U.S private equity group Mill Road Capital and the second from Cosmos, whose principal investors include two Cossette founders.
Cossette's management recommends the Mill Road offer, which is already backed by 30 percent of shareholders. The proposal is not subject to due diligence and lets Chief Executive Claude Lessard keep running the company.
But Cossette, which serves major transnational clients, including McDonald's, Bell Canada, General Motors and Coca-Cola, can't consummate the deal.
Lockup agreements between Cosmos and two major shareholders give Cosmos control of more than 37 percent of Cossette stock, and an agreement needs 66 2/3 percent approval to go through.
Saying "no" to a hostile bid has virtually doubled the value of Cossette Inc (KOS.TO) and set the stage for a showdown next month between two private equity firms wooing Canada's biggest home-grown ad agency.
Stock in the Quebec-based company languished at C$3.25 a share, close to an all-time low, when Canadian private equity firm Cosmos Capital took a first run at the company in July. Its C$4.95-a-share offer valued the agency at C$78.2 million ($73 million).
Cossette responded by putting itself on the block and hiring Bank of Montreal (BMO.TO) to drum up suitors. It now trades at over C$8 a share as bids or proposals -- there have been five so far -- keep getting higher even as struggling global markets keep advertisers in a trough.
"The board did its job," said one observer, commending Cossette decision makers for not seizing the first bid to come along.
As recently as in 2007 Cossette stock was worth almost C$14 a share, but that was before it lost some key accounts and before most of the modern world entered recession.
The agency has offices in Britain, the United States and China, as well as Canada. It has a major presence in the French-speaking province of Quebec, a difficult market for foreign companies to crack.
But the battle for control has become increasingly acrimonious, and Cossette's challenge is to identify the best bidder, without ruining the chances of a deal.
WHICH ONE?
The two bids currently on the table are each worth C$7.87 a share, one of them from U.S private equity group Mill Road Capital and the second from Cosmos, whose principal investors include two Cossette founders.
Cossette's management recommends the Mill Road offer, which is already backed by 30 percent of shareholders. The proposal is not subject to due diligence and lets Chief Executive Claude Lessard keep running the company.
But Cossette, which serves major transnational clients, including McDonald's, Bell Canada, General Motors and Coca-Cola, can't consummate the deal.
Lockup agreements between Cosmos and two major shareholders give Cosmos control of more than 37 percent of Cossette stock, and an agreement needs 66 2/3 percent approval to go through.
mktg raises $5M financing from Union Capital
http://finance.yahoo.com/news/mktg-inc-Enters-Into-prnews-441430056.html?x=0&.v=1
'mktg, inc.' (Nasdaq: CMKG - News) is an alternative media and marketing services company headquartered in New York with full service offices in San Francisco, Chicago, Cincinnati and Toronto. The company currently serves a variety of the world's most recognizable brands, including CBS, Diageo, P&G, Nintendo, Pepsi, Nike, Apple, Scottrade and Google/YouTube. The company's services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers.
The Financing will consist of $2.5 million in aggregate principal amount of Senior Secured Notes, $2.5 million in aggregate stated value of Series D Convertible Participating Preferred Stock, and Warrants to purchase 2,456,272 shares of Common Stock.
The Company previously reported that it was under financial strain and needed to seek working capital in light of recent losses, the suspension of its revolving credit facility and cash collateralization of its term loan (which has since been repaid), and a reduction in advance payments by clients.
'mktg, inc.' (Nasdaq: CMKG - News) is an alternative media and marketing services company headquartered in New York with full service offices in San Francisco, Chicago, Cincinnati and Toronto. The company currently serves a variety of the world's most recognizable brands, including CBS, Diageo, P&G, Nintendo, Pepsi, Nike, Apple, Scottrade and Google/YouTube. The company's services include experiential marketing, digital marketing, retail promotions and strategic research and planning. The firm's programs help its clients profitably connect with consumers and create networks of brand advocates to generate brand awareness and higher sales for its customers.
The Financing will consist of $2.5 million in aggregate principal amount of Senior Secured Notes, $2.5 million in aggregate stated value of Series D Convertible Participating Preferred Stock, and Warrants to purchase 2,456,272 shares of Common Stock.
The Company previously reported that it was under financial strain and needed to seek working capital in light of recent losses, the suspension of its revolving credit facility and cash collateralization of its term loan (which has since been repaid), and a reduction in advance payments by clients.
Gartner to acquire AMR Research for $64M
http://boston.bizjournals.com/boston/stories/2009/11/30/daily17.html?ana=yfcpc
Technology-focused research firm Gartner Inc. has agreed to acquire Boston-based AMR Research Inc. for approximately $64 million in cash.
According to Gene Hall, CEO of Stamford, Conn.-based Gartner (NYSE: IT), the firm will add AMR Research’s team of approximately 40 research analysts and 45 sales executives to its ranks. However, Gartner stated it would likely achieve unspecified “operational efficiencies” following the closing of the purchase.
AMR Research also has a tech focus, more narrowly aimed at the supply chain management arena within the information technology field.
The local firm expects to generate approximately $40 million in revenue this year. The deal is subject to typical closing conditions. It is expected to close by Jan. 1, Gartner officials said.
Technology-focused research firm Gartner Inc. has agreed to acquire Boston-based AMR Research Inc. for approximately $64 million in cash.
According to Gene Hall, CEO of Stamford, Conn.-based Gartner (NYSE: IT), the firm will add AMR Research’s team of approximately 40 research analysts and 45 sales executives to its ranks. However, Gartner stated it would likely achieve unspecified “operational efficiencies” following the closing of the purchase.
AMR Research also has a tech focus, more narrowly aimed at the supply chain management arena within the information technology field.
The local firm expects to generate approximately $40 million in revenue this year. The deal is subject to typical closing conditions. It is expected to close by Jan. 1, Gartner officials said.
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