Friday, 19 September 2008
Why US and European Govts and Central Bankers are sooooo worried
We havent blogged much on the financial crisis because it isnt an area that we feel equipped to pass wisdom on but it strikes us that Robert Peston's (BBC Business Ed) piece below is the truest reflection of not only the extent of the problem but the seriousness of its consequences. This is why Govt and Central bankers are moving heaven and earth to put a stop to this thing.
China could easily end up owning the lion’s share of the US and UK’s financial systems.
With the collapses on Wall Street this week and signs in the United Kingdom pointing towards a housing market crisis as well, it appears that the U.S. and the U.K. have left the door open for other world economies to step in and take over the global economy. Peston reports: “It's a world in which the Chinese state, if it co-ordinated the investments of its cash-rich institutions, could end up owning more-or-less the entire financial system of the US and the UK.” It is conservative institutions, he says, and those with simpler business models with a history of careful management of their funding sources, which will become the new superpowers.
Introducing a new business model to the world of magazine selling,
This sounds like a really good idea and one that - finally - recognises that freedom and choice are crucial......
Time Inc just launched Maghound, a mix and match service for periodicals. Maghound members don't subscribe to a fixed set of magazines. Instead, they pick the number of magazines they'd like to receive every month, and can then change the selection of titles as often as they like. One month they might select Food & Wine, Forbes and Women's Health, before switching to People, New York Magazine and Smithsonian. (While the current selection of 200 titles isn't as substantial as many magazine lovers would like, it does obviously include magazines that aren't owned by Time Inc.)
Freedom of choice extends to membership terms, too—customers don't have to commit to an annual contract and can cancel at any time. And pricing is tiered: USD 4.95 for three titles a month, USD 7.95 for five, USD 9.95 for seven titles, and USD 1 per title for eight or more titles. To keep track of their mix of magazines, members can view expected delivery dates in their online account.
Wednesday, 17 September 2008
Metroexpress no more in Croatia
Newsflash: Metro International has closed its franchise operation in Croatia, which published the free newspaper Metroexpress in Zagreb. The company's decision followed poor results over the past six months.
This surprises us. Croatia is a fast growing economy with a fast growing - young - professional class which should be perfect reader material for Metro.
So what went wrong?
Well the failure in Croatia above all is yet another example of the weakness of the FREE model. Being totally dependent on a single revenue stream as the FREEs are isnt great by any measure. Its worsened by having that single revenue stream derived entirely from (physical) advertising in this increasingly digital market. Additionally costs of print/production and the big cost associated with unique by hand distribution model weigh heavily on the balance sheet.
Credit To Metro CEO Per Mikeal Jensen who continues to rationalise and consolidate which is exactly the strategy in these challenging times. He has got the focus, energy and board support necessary to realise Metros' potential to be profitable.
Tuesday, 16 September 2008
Handwritten Newspaper - genius
India's oldest Urdu-language daily paper, it is still being handwritten by calligraphers, as it was when founded 81 years ago.
Thursday, 11 September 2008
whats going on a the New York Times Co
Breaking News - the Mexican billionaire Carlos Slim and his family have amassed a sizable 6.4% stake in the New York Times Co.
Whats this all about?
Maybe this is another example of the mega rich buying into newspapers for vanity reasons? Slim is certainly rich! In fact Forbes have him down as the richest man in the world (ahead of Gates & Buffett)and they say he worth worth $60 billion.
Somehow I doubt this is vanity. Slim is really really rich and really clever. He isnt flashy. In fact he allegedly lives rather quitely etc. More importantly he also owns most of the major media (and telecoms) in Mexico and beyond in South America.
So I suggest this is strategic.
He (like Rupert Murdoch) sees real future value in the great newspaper brands. He recognises that the NYT is a major media asset that is not only available today but at a knock down price.
The newspaper industry needs more investors like Murdoch and Slim. Men who see value in the brands and the medium and know they can run the businesses better and sustainably now and long into the future........
Whats this all about?
Maybe this is another example of the mega rich buying into newspapers for vanity reasons? Slim is certainly rich! In fact Forbes have him down as the richest man in the world (ahead of Gates & Buffett)and they say he worth worth $60 billion.
Somehow I doubt this is vanity. Slim is really really rich and really clever. He isnt flashy. In fact he allegedly lives rather quitely etc. More importantly he also owns most of the major media (and telecoms) in Mexico and beyond in South America.
So I suggest this is strategic.
He (like Rupert Murdoch) sees real future value in the great newspaper brands. He recognises that the NYT is a major media asset that is not only available today but at a knock down price.
The newspaper industry needs more investors like Murdoch and Slim. Men who see value in the brands and the medium and know they can run the businesses better and sustainably now and long into the future........
Monday, 8 September 2008
Happy Birthday Google - Advertiser fight back
On the 10th anniversary of Googles' launch the Association of National Advertisers sent a letter objecting to the proposed Internet search advertising partnership between Yahoo Inc and Google Inc to government regulators reviewing the deal.
Good.
The intended deal between these two giants of search isnt good news for advertisers and they should fight it hard. The alliance will see Google/Yahoo control 90% of search advertising inventory in the US..........
Call me old fashioned but 90% of the power held in only two hands isnt good for anyone (apart from those holding the power).
Its about time those holding the ad budgets began to exert some influence over digital channels as its they that fund the extraordinary growth of Google etc
Good.
The intended deal between these two giants of search isnt good news for advertisers and they should fight it hard. The alliance will see Google/Yahoo control 90% of search advertising inventory in the US..........
Call me old fashioned but 90% of the power held in only two hands isnt good for anyone (apart from those holding the power).
Its about time those holding the ad budgets began to exert some influence over digital channels as its they that fund the extraordinary growth of Google etc
Monday, 1 September 2008
September 1st - Officially the start of the autumn
Two things caught the eye over the weekend.
Firstly, consumers voting with their wallets and their feet, with Aldi reporting 44% sales growth in July, as shoppers sought out the best prices for their groceries. Aldi has featured heavily in media commentary in the last few weeks, with their limited but carefully selected product range providing significant cost savings for customers. We've commented before on their business, now it'll be interesting to see how Tesco et al respond to this new threat.
Secondly, reports in the press that Metro International may be selling or closing their US newspapers. In a previous life we were involved in the Metro New York launch, into one of the toughest markets in the World. It needed a strong digital presence to make it a success from the outset, but that wasn't a key competence of Metro back in 2004. It would be a wasted (and expensive) opportunity missed if Metro closed their US presence, so we hope PMJ can find a strategic solution to minimise the losses and build on the 4 years product and brand building.
Firstly, consumers voting with their wallets and their feet, with Aldi reporting 44% sales growth in July, as shoppers sought out the best prices for their groceries. Aldi has featured heavily in media commentary in the last few weeks, with their limited but carefully selected product range providing significant cost savings for customers. We've commented before on their business, now it'll be interesting to see how Tesco et al respond to this new threat.
Secondly, reports in the press that Metro International may be selling or closing their US newspapers. In a previous life we were involved in the Metro New York launch, into one of the toughest markets in the World. It needed a strong digital presence to make it a success from the outset, but that wasn't a key competence of Metro back in 2004. It would be a wasted (and expensive) opportunity missed if Metro closed their US presence, so we hope PMJ can find a strategic solution to minimise the losses and build on the 4 years product and brand building.
Friday, 29 August 2008
End of the price war
From Monday the price of the weekday Times will rise by 10p to 80p, matching the Daily Telegraph, the Guardian and the Independent for the first time since the price wars that began in 1993, when Rupert Murdoch dropped its price from 45p to 30p and sent circulation soaring.
We were at News when The Times dropped its price and we played a big part in the price war. It was alot of fun and for a time price was an effective circulation builder. But its a war that should have ceased long ago. The battle now very sensibly transfers from cover price discounting to subscription discounting. A much more intelligent battle and one of course the Telegraph has a real advantage in.
Should be interesting.
Lets hope that the marketing guys wake up to the real opportunity to reward purchase loyalty not just with price discounting but with added value benefits as well. The case (as blogged here before) for loyalty programmes is growing stronger and stronger.
We were at News when The Times dropped its price and we played a big part in the price war. It was alot of fun and for a time price was an effective circulation builder. But its a war that should have ceased long ago. The battle now very sensibly transfers from cover price discounting to subscription discounting. A much more intelligent battle and one of course the Telegraph has a real advantage in.
Should be interesting.
Lets hope that the marketing guys wake up to the real opportunity to reward purchase loyalty not just with price discounting but with added value benefits as well. The case (as blogged here before) for loyalty programmes is growing stronger and stronger.
Wednesday, 27 August 2008
(bad) News Digest 28th August
Heres todays (bad) news digest from Print & Publishing sector.
Half-yearly profits tumbled 35.6% at the Independent and Independent on Sunday titles due to challenging trading conditions and poor consumer confidence, the papers' parent company said today.
The People has suspended its sports editor, Lee Horton, over alleged 'financial irregularities'
Johnston Press has said advertising revenues have slumped 21% year on year in the first seven weeks of the second half of 2008
Any good news anyone?
Half-yearly profits tumbled 35.6% at the Independent and Independent on Sunday titles due to challenging trading conditions and poor consumer confidence, the papers' parent company said today.
The People has suspended its sports editor, Lee Horton, over alleged 'financial irregularities'
Johnston Press has said advertising revenues have slumped 21% year on year in the first seven weeks of the second half of 2008
Any good news anyone?
Tuesday, 26 August 2008
Clever Vending - under utilised
Electronics retailer Best Buy has installed vending machines at 8 major
It's a pilot program for the company's new Best Buy Express kiosks, which are large vending machines that carry cell phone and computer accessories, digital cameras, flash drives, MP3 players, headphones, gaming devices, travel adapters, and other items that are likely to appeal to customers on the go. Prices are similar to those in Best Buy stores.
Ive always thought vending was under utilised. Serves as the ultimate in convenience retailing and a huge visual brand ad. This stuff is going to get really big when we can use our phones to pay (as in Japan and Finland etc)
Thursday, 21 August 2008
What price loyalty in a recession?
The ongoing global financial situation continues to soak up the average consumer's spare cash, forcing people to re-assess their spending on a daily basis. I for one am bored of having to phone the bank to pre-authorise a personal loan to fill up the car with a tank of petrol before I travel on the motorway. While the media may be guilty of fanning the flames of recession talk, they certainly aren't guilty of lighting the fire in the first place.
I'm waiting for one of my favourite brands to approach loyalty smartly in these cash conscious times. I'm on databases, they have my email address, and probably my mobile number, and I'm ready and waiting for my loyalty to be rewarded. If they invest in me, then I'm happy to commit to them, there's always a good deal to be done in times like these.
However, only two brands are talking to me and trying to save me money. The Times, with their 20% off subscription offer, which is flexible, good value and promoted out of the newspaper itself, which is an industry first, and Varsity bars. Varsity bars is an odd one in this context, as it's a student focused drinks business, and my student days pre-date the internet. No matter, I signed up online to see how their CRM process worked, and to be honest, it's surprisingly good. Received an email and an SMS highlighting their special offers to save me money on beer this week. They are talking to me, and if I was a student right now, I'd be listening.
Those who know us, will recognise that we are passionate about loyalty. Identify your best customers and prospects so you can communicate with them on as near an individual basis as possible, then recognise and reward their loyalty. It's a long term game, but an ultimately profitable one. Get it right, then it can securitise a business in the medium to long term. And therein lies the challenge. The average tenure of a marketing director is apparently under three years in the UK. Successful loyalty programmes need time to develop, implement and nurture. They grow over time, but are not a short term fix, they need investment, resource and expertise to get them off the ground in a smart and successful manner. Like children, they need nurturing, attention and money.
Our view, the time is right now for successful loyalty schemes to take root, when consumers want to be recognised and rewarded. Question is, who is going to take the plunge and back a medium-term investment rather than a short term fix? Time will tell.
I'm waiting for one of my favourite brands to approach loyalty smartly in these cash conscious times. I'm on databases, they have my email address, and probably my mobile number, and I'm ready and waiting for my loyalty to be rewarded. If they invest in me, then I'm happy to commit to them, there's always a good deal to be done in times like these.
However, only two brands are talking to me and trying to save me money. The Times, with their 20% off subscription offer, which is flexible, good value and promoted out of the newspaper itself, which is an industry first, and Varsity bars. Varsity bars is an odd one in this context, as it's a student focused drinks business, and my student days pre-date the internet. No matter, I signed up online to see how their CRM process worked, and to be honest, it's surprisingly good. Received an email and an SMS highlighting their special offers to save me money on beer this week. They are talking to me, and if I was a student right now, I'd be listening.
Those who know us, will recognise that we are passionate about loyalty. Identify your best customers and prospects so you can communicate with them on as near an individual basis as possible, then recognise and reward their loyalty. It's a long term game, but an ultimately profitable one. Get it right, then it can securitise a business in the medium to long term. And therein lies the challenge. The average tenure of a marketing director is apparently under three years in the UK. Successful loyalty programmes need time to develop, implement and nurture. They grow over time, but are not a short term fix, they need investment, resource and expertise to get them off the ground in a smart and successful manner. Like children, they need nurturing, attention and money.
Our view, the time is right now for successful loyalty schemes to take root, when consumers want to be recognised and rewarded. Question is, who is going to take the plunge and back a medium-term investment rather than a short term fix? Time will tell.
Monday, 18 August 2008
Is this the way its going for news?
This is powerful stuff (thanks to guardian.co.uk). Pew is the best and most credible of all US media usage surveys so we have to listen
Pew report: New breed of 'net newsers' shape US media habits
A new generation of well-educated, technically-savvy young web users are shaping the media habits of the US, with one in 20 Americans saying they do not watch TV on a typical day and a sharp decline in newspaper readership, according to new research.
The biennial Pew Research Center report on changing news audiences described 13% of the US public as "net newsers" - web users under 35 who read more political blogs than watch national news coverage, rely heavily on web-based news during the day and have a strong interest in technology and technology news.
Yahoo, MSN and CNN were the three most popular web news destinations, though users gave many of the leading mainstream media websites low credibility ratings.
Just 6% said the Huffington Post was very highly credible and 13% said the same of Google News, which aggregates news from mainstream news organisations.
Net newsers are typically affluent and 80% are graduates, making them a highly desirable demographic for advertisers.
They do favour some traditional media brands, including the New Yorker, The Atlantic and the BBC, the Pew survey of 3,600 adults found. But only 47% watch TV news on an average day.
The research paints a picture of steady decline in the US newspaper industry, with the percentage of Americans who regularly read print titles falling from 58% in 1993 to 34% in 2008.
According to the long-running survey, respondents saying they listened to radio news fell from 47% to 35% over the same period. As for network TV, the national news dropped from 60% to 29% and local news from 77% to 52%.
Cable TV grew from 33% of Pew respondents saying they watched it in 2000 to 39% this year, while the number of people who turn to web news at least three days each week rose from 2% in 1996 to 37% in 2008.
"For more than a decade, the audiences for most traditional news sources have steadily declined, as the number of people getting news online has surged," said the Pew report.
"A sizable minority of Americans find themselves at the intersection of these two long-standing trends in news consumption."
However, TV is still the most popular medium for the US, with 46% of the public classified as "traditionalists" who watch throughout the day, but are likely to be older and less well educated than net newsers.
More than 40% of this traditionalist group are unemployed, and were found to prefer visual news stories to audio and have little interest in science or technology news.
A further 14% are described as "disengaged", a poorly-educated group with little interest in current affairs.
Pew's research identified a further 23% of US media consumers as "integrators", an older group who are affluent and influential but still rely mostly on TV news and are interested in politics.
The research also found that the proportion of young people in the US getting no daily news has increased from 25% in 1998 to 34%, with only 10% of people using social networking sites for their news
Wednesday, 13 August 2008
Associated CD's Mcflying into the Bermuda Triangle?
A quick thought on the newspaper ABCs for July 2008. Apart from The Sun and The Sunday Times showing increases month-on-month thanks to some effective marketing, the numbers for the Mail on Sunday are most interesting.
Month on month the MoS remained level, but the year-on-year comparison makes more interesting reading, down almost 5%. This is despite heavily backed McFly and Barry Manilow CD giveaways, which would have been expected to perform well in a normally quiet month.
What to make of this? Is Barry no longer the hearthrob of the middle England twinset? Would McFly have flown better off the shelves or digital music racks than they did off the news-stand?
Either way, our view has been for a while that the free CD or DVD should be the last resort rather than the regular fare of a forward thinking marketing professional. Anyone can give something away and see a short term uplift. Very few can build sustained growth in a shrinking print market.
While The Sun and The Sunday Times are investing for future sustainable growth, what next at Associated newspapers, who have an equally might marketing war chest? We wait with interest to see some innovation in their marketing approach.
Month on month the MoS remained level, but the year-on-year comparison makes more interesting reading, down almost 5%. This is despite heavily backed McFly and Barry Manilow CD giveaways, which would have been expected to perform well in a normally quiet month.
What to make of this? Is Barry no longer the hearthrob of the middle England twinset? Would McFly have flown better off the shelves or digital music racks than they did off the news-stand?
Either way, our view has been for a while that the free CD or DVD should be the last resort rather than the regular fare of a forward thinking marketing professional. Anyone can give something away and see a short term uplift. Very few can build sustained growth in a shrinking print market.
While The Sun and The Sunday Times are investing for future sustainable growth, what next at Associated newspapers, who have an equally might marketing war chest? We wait with interest to see some innovation in their marketing approach.
Tuesday, 5 August 2008
Pot Noodle: the musical - Does exactly what it says on the pot
"Pot Noodle: the musical" is being heralded as being at "the vanguard of a revolution which could transform advertising and possibly the entertainment industry over the next few years". A big claim for a play based on the students' favourite freeze dried convenience snack.
Mother has developed the concept in its "content" department to break away from the traditional advertising "product" and PN:tm is currently playing to standing ovations on the Edinburgh fringe. The result, and I quote directly from The Times, is "a riotous hour's entertainment set in a Pot Noodle factory and very very loosely based on Hamlet".
Given that the Mamma Mia film has seen the Abba Gold album rocket back to the charts for the first time in 15 years, will this alternative approach to advertising PN see the familiar plastic pot leap off the shelves of Aldi's across the country?
Either way, we applaud the vision, and the commitment to trying new ways of advertising product to audiences. The world is changing, and brands with the courage to test new routes to market now will in our view be hugely rewarded in the longer term. Put the kettle on, it's noodle time......
Mother has developed the concept in its "content" department to break away from the traditional advertising "product" and PN:tm is currently playing to standing ovations on the Edinburgh fringe. The result, and I quote directly from The Times, is "a riotous hour's entertainment set in a Pot Noodle factory and very very loosely based on Hamlet".
Given that the Mamma Mia film has seen the Abba Gold album rocket back to the charts for the first time in 15 years, will this alternative approach to advertising PN see the familiar plastic pot leap off the shelves of Aldi's across the country?
Either way, we applaud the vision, and the commitment to trying new ways of advertising product to audiences. The world is changing, and brands with the courage to test new routes to market now will in our view be hugely rewarded in the longer term. Put the kettle on, it's noodle time......
Saturday, 2 August 2008
A challenger to supremacy of Google in search?
In an attempt to upstage their former employer, a trio of ex-Googlers have launched a search engine of their own. They are calling it "Cuil" - pronounced "cool," (not bad) - and they say it "goes beyond today’s search techniques."
They say they get "richer display of results" by indexing a whopping 120 billion web pages. According to the company, that's three times more than any other search engine.
Its going to be tough (impossible?) to knock out google as they have installed base of many many millions of content serach customers.
Here at Market Evolution towers we encourage and support competition (both as business people and as consumers) so I'm going to give it a go...........
Tell us what you think www.cuil.com
They say they get "richer display of results" by indexing a whopping 120 billion web pages. According to the company, that's three times more than any other search engine.
Its going to be tough (impossible?) to knock out google as they have installed base of many many millions of content serach customers.
Here at Market Evolution towers we encourage and support competition (both as business people and as consumers) so I'm going to give it a go...........
Tell us what you think www.cuil.com
Steve Fossett - what ever happened to him?
Ive often wondered what happened to Steve - the great adventurer and friend of Richard Branson. Steve was declared officially dead in February 08 after disappearing in a light aifcraft.
The conspiracy theorists are out and about (surprise, surpise) in the media. Heres quite a good one as it comes from several investigators who were charged to find the body.
Click on Steve below and enjoy.
Steve
Saturday, 26 July 2008
Timeshifting - brand friend or foe?
There's been some debate about which brands are embracing the new consumer ability to choose when, where and how to consume and interact with content and products.
One brand which has managed to re-invent itself in my personal world in the last 2 years has been the BBC. Old time, pillar of the UK society, somewhat staid in its view, it was something I consumed without really a second thought.
Now though, it's all changed. My view of the brand, and the way I interact with it have changed radically recently.
I rarely watch BBC on TV at the time they would like me to. The i-player gives me the ability to carry around my TV on the laptop to watch when I want to watch it. I used to listen to BBC radio when I could. Now, I download the podcasts I want onto my MP3, and listen at my leisure. Not convinced on bbc.co.uk's relaunched new coat, but that's a minor quibble.
I have control, which is nice, but I'm now getting into a routine of when and what I download, which is a commercial brand's dream relationship with a customer. Which non-licence fee funded brand is going to build a relationship like this with me? So far, no-one has.
One brand which has managed to re-invent itself in my personal world in the last 2 years has been the BBC. Old time, pillar of the UK society, somewhat staid in its view, it was something I consumed without really a second thought.
Now though, it's all changed. My view of the brand, and the way I interact with it have changed radically recently.
I rarely watch BBC on TV at the time they would like me to. The i-player gives me the ability to carry around my TV on the laptop to watch when I want to watch it. I used to listen to BBC radio when I could. Now, I download the podcasts I want onto my MP3, and listen at my leisure. Not convinced on bbc.co.uk's relaunched new coat, but that's a minor quibble.
I have control, which is nice, but I'm now getting into a routine of when and what I download, which is a commercial brand's dream relationship with a customer. Which non-licence fee funded brand is going to build a relationship like this with me? So far, no-one has.
Wednesday, 23 July 2008
McFly bigger than Barry Manilow!
The Mail on Sunday's exclusive giveaway of the new McFly album boosted its circulation 300,000 copies above its non-promotional average to 2.4m copies, according to estimates.
Couple of things strike me about this the latest in a long, long line of CD giveaways.
Firstly, McFly are more popular than Barry Manilow amongst MOS readers. Thats extraordinary. Surely no one I mean no one is bigger than Barry in middle Britain .
Who are McFly anyway?
Well the answer must lie in the popularity of McFly with MOS readers children me thinks.
Is this pester power at work at the news stands
Second thing that strikes me is how attrition seems to be finally taking its toll on these promotions. McFly beat Manilow but fell well short of Prince's Planet Earth CD last year.
All involved with these promotions are very polished at heralding their success but once again isnt it time to call into question the ROI of these deals. Its estimated that Associated Newspapers alone spend £100m a year on this type of stuff. Meanwhile the piles of unused, unwatched and unlistened to CDs and DVDs pile up - unloved - on readers shelves.
Car boot sales are the major beneficiary of these deals!
Wouldnt the money or at least part of it be better spent investing in long term relationship building with readers rather than short term bribery?
Maybe recessionary times will necessitate move toward strategic rather than tactical marketing at the papers.
That would at least be one good thing to come from these challenging times.
Couple of things strike me about this the latest in a long, long line of CD giveaways.
Firstly, McFly are more popular than Barry Manilow amongst MOS readers. Thats extraordinary. Surely no one I mean no one is bigger than Barry in middle Britain .
Who are McFly anyway?
Well the answer must lie in the popularity of McFly with MOS readers children me thinks.
Is this pester power at work at the news stands
Second thing that strikes me is how attrition seems to be finally taking its toll on these promotions. McFly beat Manilow but fell well short of Prince's Planet Earth CD last year.
All involved with these promotions are very polished at heralding their success but once again isnt it time to call into question the ROI of these deals. Its estimated that Associated Newspapers alone spend £100m a year on this type of stuff. Meanwhile the piles of unused, unwatched and unlistened to CDs and DVDs pile up - unloved - on readers shelves.
Car boot sales are the major beneficiary of these deals!
Wouldnt the money or at least part of it be better spent investing in long term relationship building with readers rather than short term bribery?
Maybe recessionary times will necessitate move toward strategic rather than tactical marketing at the papers.
That would at least be one good thing to come from these challenging times.
Thursday, 17 July 2008
Is Google a victim of its own success or of a declining market
Google shares were off 8% in late trading today as it posted a profits gain but fell short of estimates.
Whilst its hard to feel sorry for these guys its ours to wonder whether they arent a victim of their own success. Posted growth in this market would be enough for most brands to set the shares alight but not Google. They post gains and analysts say not good enough and shares fall - hard.
But its not that simple is it.
Clearly Google are not only a bell weather for the advertising industry but the entire economy . Any sign of slowdown adds more evidence to what we already know so well - we are entering an economic nuclear winter.
Its unfortunate for Google stock holders that the business has become economic 'canary in the cage'
Keep warm
Whilst its hard to feel sorry for these guys its ours to wonder whether they arent a victim of their own success. Posted growth in this market would be enough for most brands to set the shares alight but not Google. They post gains and analysts say not good enough and shares fall - hard.
But its not that simple is it.
Clearly Google are not only a bell weather for the advertising industry but the entire economy . Any sign of slowdown adds more evidence to what we already know so well - we are entering an economic nuclear winter.
Its unfortunate for Google stock holders that the business has become economic 'canary in the cage'
Keep warm
Monday, 14 July 2008
iPhone opening weekend sales
Apple has sold more than 1m of its new iPhone 3G handsets, the consumer electronics giant announced today, just three days since the chaotic launch of the second version of the smartphone.
Apple's chief executive Steve Jobs said that the new iPhone 3G has had "a stunning opening weekend".
"It took 74 days to sell the first 1m original iPhones, so the new iPhone 3G is clearly off to a great start around the world," Jobs added.
Apple's chief executive Steve Jobs said that the new iPhone 3G has had "a stunning opening weekend".
"It took 74 days to sell the first 1m original iPhones, so the new iPhone 3G is clearly off to a great start around the world," Jobs added.
Bellwether report: Ad budgets see sharpest downturn since 9/11 attacks
guardian.co.uk,
Monday July 14, 2008
UK businesses are slashing their marketing and advertising budgets for the third quarter in a row in the sharpest downturn since the September 11 terrorist attacks in 2001, according to the latest Bellwether report published today by ad agency trade body the Institute of Practitioners in Advertising.
Internet marketing was the sole bright spot, with 19% of companies reporting a rise from the budgets set at the start of the year, and only 12% reporting a decline.
But even the growth of digital spend has slowed dramatically since the first quarter of 2008, when 27% of respondents reported an increase in their online marketing budgets since the start of the year.
Monday July 14, 2008
UK businesses are slashing their marketing and advertising budgets for the third quarter in a row in the sharpest downturn since the September 11 terrorist attacks in 2001, according to the latest Bellwether report published today by ad agency trade body the Institute of Practitioners in Advertising.
Internet marketing was the sole bright spot, with 19% of companies reporting a rise from the budgets set at the start of the year, and only 12% reporting a decline.
But even the growth of digital spend has slowed dramatically since the first quarter of 2008, when 27% of respondents reported an increase in their online marketing budgets since the start of the year.
Friday, 11 July 2008
Friday Queues
Soho on a Friday morning is usually an oasis of calm, with media and arty types stumbling towards lattes, cappucinos and wet decaffeinated skinny americanos.
Today however, a queue snaking along the pavement. At 8.45am. Was the European opticians having a black chunky framed glasses sale? Was the executive man-bag shop doing 2 for 1 deals?
No, the queue was for Carphone Warehouse. For the next generation i-Phone launch.
Have to hand it to Apple, it has brand loyalty like few others, and customers who go that extra mile without complaint.
Looking forward to seeing the phone in action.
Today however, a queue snaking along the pavement. At 8.45am. Was the European opticians having a black chunky framed glasses sale? Was the executive man-bag shop doing 2 for 1 deals?
No, the queue was for Carphone Warehouse. For the next generation i-Phone launch.
Have to hand it to Apple, it has brand loyalty like few others, and customers who go that extra mile without complaint.
Looking forward to seeing the phone in action.
Credit Crunch - just how bad is it?
With shares of Fannie Mae and Freddie Mac - two pillars of the US housing market - continuing to plummet yesterday investors and federal officials contemplated the possibility that the giants of the mortgage business could require a federal bailout.
OMG this is pretty serious stuff. These 2 companies are key part of the infrastructure that holds together the US economy (together they underwrite nearly 50% of US mortgages). Whilst they wont (cant) be allowed to fail its a huge concern that we are even close to this situation.
The conclusion that we draw from this is that the economic situation is far far worse that we are being told.
Hold on to your hats and tighten you belts
OMG this is pretty serious stuff. These 2 companies are key part of the infrastructure that holds together the US economy (together they underwrite nearly 50% of US mortgages). Whilst they wont (cant) be allowed to fail its a huge concern that we are even close to this situation.
The conclusion that we draw from this is that the economic situation is far far worse that we are being told.
Hold on to your hats and tighten you belts
Women kills husband with folding couch
Well its friday and high time for a little lightness after a wet and rather depressing news week
Thanks to Reuters for this one - you could'nt make this stuff up
ST PETERSBURG (Reuters) - A Russian woman in St Petersburg killed her drunk husband with a folding couch, Russian media reported on Wednesday.
St Petersburg's Channel Five said the man's wife, upset with her husband for being drunk and refusing to get up, kicked a handle after an argument, activating a mechanism that folds the couch up against a wall.
The couch, which doubles as a bed, folds up automatically in order to save space. The man fell between the mattress and the back of the couch...................
Thanks to Reuters for this one - you could'nt make this stuff up
ST PETERSBURG (Reuters) - A Russian woman in St Petersburg killed her drunk husband with a folding couch, Russian media reported on Wednesday.
St Petersburg's Channel Five said the man's wife, upset with her husband for being drunk and refusing to get up, kicked a handle after an argument, activating a mechanism that folds the couch up against a wall.
The couch, which doubles as a bed, folds up automatically in order to save space. The man fell between the mattress and the back of the couch...................
TMG pan for digital ad gold abroad
Telegraph Media Group's partnership with AdGent 007, a global digital advertising services company to sell ads abroad, makes a lot of sense.
British Newspapers are very popular abroad and as recorded here in a previous post well over 50% of online usage of newspapers comes from outside the UK
The Telegraph does particularly well abroad - according to the latest ABCe audit, it recorded over 18.4m unique users globally, an increase of more than 150% over the previous year.
In a market where newspapers are experiencing the 'double whammy' of falling circulation and (fast) falling advertising revenues this kind of deal is very sensible and potentially very important.Thursday, 3 July 2008
The winds of change
Just glancing back through the archive of posts here looking for a couple of things, and couldn't help noticing how the mood has changed.
What ever happened to social networking, incredibly high valuations of digital businesses and all the hype surrounding Web 2.0?
Now it's all credit crunch, high street bloodbath, advertising recessions and redundancies.
Those who keep their heads and invest wisely in brands and audience should be able to reap the benefits in the medium term, it'll be interesting to see "who dares wins".
What ever happened to social networking, incredibly high valuations of digital businesses and all the hype surrounding Web 2.0?
Now it's all credit crunch, high street bloodbath, advertising recessions and redundancies.
Those who keep their heads and invest wisely in brands and audience should be able to reap the benefits in the medium term, it'll be interesting to see "who dares wins".
Monday, 30 June 2008
Trinity Mirror - Kicking a dog when its down
Trinity Mirror shares today crashed 25% after the group said profits would be 10% lower than expected.
No surprises here. Its tough out there. We have heard tales of woe from right across the newspaper market. And it aint going to get any easier anytime soon is it.
Its crazy however that the 'City' react (or overreact) in the way they do. Current market conditions have been priced into share values for sometime now so further falls in share price based on more bad news are not welcome or necessary.
Talk about kicking a dog when its down
No surprises here. Its tough out there. We have heard tales of woe from right across the newspaper market. And it aint going to get any easier anytime soon is it.
Its crazy however that the 'City' react (or overreact) in the way they do. Current market conditions have been priced into share values for sometime now so further falls in share price based on more bad news are not welcome or necessary.
Talk about kicking a dog when its down
Sunday, 29 June 2008
Ongoing impact of the economic "stutter".....
A few interesting stories in the business pages today, giving a good range of examples of the real impact of the current economic slowdown.
Taylor Wimpey reportedly needing an emergency £400m in funds this week illustrates the current impact of falling share prices and a slow down in the housing market, particularly in selling the new houses recently built. Lack of demand will only get worse over the next couple of years if the doomsayers are proven right, so Norman Askew and Peter Redfern (Chairman and CEO respectively) have their work cut out to reposition the business with a share price down from over 350p a year ago to 62p last Friday. A portfolio of empty new houses in a market with dramatically reduced numbers of buyers doesn't bode well though.
On the other hand, Aldi, everyone's favourite discount supermarket chain, is taking a very bullish view of the situation, based partly on their 21% sales growth in the last 3 months, as measured by TNS. In their view, the current economic situation is only going to work in their favour, and to that extent, they are spending £1.5bn on a 5 year expansion plan in the UK. This would increase the estate from 400 to 1500 stores, giving it a much greater presence across the country. My view on Aldi as a brand isn't shaped by marketing communications, of which I've seen little, but by some limited first hand experience of the stores. Have to admit I was surprised by the product range and the pricing, and I'd like to see the expansion backed by some marketing to drive trial, I think it would pay back handsomely.
Final mention today for The Sunday Times Business section, and the Focus article on page 5 - "Back to the Great Depresssion?" Wall Street has had its worst June since 1930, and looks likely to have lost 10% of its value in June this year. Well written article, though I have a nagging doubt at the back of my mind that we are all talking ourselves into a state of panic, but a great statistic is included.
Fortis, the Belgian-Dutch financial group, sees the price of crude oil averaging $171 a barrel next year. In contrast, Royal Bank of Scotland sees an average price of $86 next year. When instiutional predictions can have a range this great, then we're in the Kingdom of the Crystal Ball. One thing is for certain, it does look like it's going to get worse before it starts getting any better.
Taylor Wimpey reportedly needing an emergency £400m in funds this week illustrates the current impact of falling share prices and a slow down in the housing market, particularly in selling the new houses recently built. Lack of demand will only get worse over the next couple of years if the doomsayers are proven right, so Norman Askew and Peter Redfern (Chairman and CEO respectively) have their work cut out to reposition the business with a share price down from over 350p a year ago to 62p last Friday. A portfolio of empty new houses in a market with dramatically reduced numbers of buyers doesn't bode well though.
On the other hand, Aldi, everyone's favourite discount supermarket chain, is taking a very bullish view of the situation, based partly on their 21% sales growth in the last 3 months, as measured by TNS. In their view, the current economic situation is only going to work in their favour, and to that extent, they are spending £1.5bn on a 5 year expansion plan in the UK. This would increase the estate from 400 to 1500 stores, giving it a much greater presence across the country. My view on Aldi as a brand isn't shaped by marketing communications, of which I've seen little, but by some limited first hand experience of the stores. Have to admit I was surprised by the product range and the pricing, and I'd like to see the expansion backed by some marketing to drive trial, I think it would pay back handsomely.
Final mention today for The Sunday Times Business section, and the Focus article on page 5 - "Back to the Great Depresssion?" Wall Street has had its worst June since 1930, and looks likely to have lost 10% of its value in June this year. Well written article, though I have a nagging doubt at the back of my mind that we are all talking ourselves into a state of panic, but a great statistic is included.
Fortis, the Belgian-Dutch financial group, sees the price of crude oil averaging $171 a barrel next year. In contrast, Royal Bank of Scotland sees an average price of $86 next year. When instiutional predictions can have a range this great, then we're in the Kingdom of the Crystal Ball. One thing is for certain, it does look like it's going to get worse before it starts getting any better.
Thursday, 26 June 2008
Rumours denied or something more sinister?
all these rumours about the closure of thelondonpaper have been well and truly shot down by NI release (below) or perhaps just perhaps they protest too much!
“thelondonpaper has established itself as the capital’s leading afternoon paper with an audited daily circulation of over 500,000 and strong advertising revenue. News International, the UK’s largest national newspaper company, has backed its confidence in the long-term future of the industry with a recent £650 million investment in next generation print plants. We intend to build on the success of our market leading national titles and that of thelondonpaper in the years ahead.''
is this the end of the matter or just the beginning??
“thelondonpaper has established itself as the capital’s leading afternoon paper with an audited daily circulation of over 500,000 and strong advertising revenue. News International, the UK’s largest national newspaper company, has backed its confidence in the long-term future of the industry with a recent £650 million investment in next generation print plants. We intend to build on the success of our market leading national titles and that of thelondonpaper in the years ahead.''
is this the end of the matter or just the beginning??
wind power
When revellers at the UK's Glastonbury Festival 2008 later this week need to recharge their mobile phones, they'll have a free and green way to do that thanks to a charging station being set up at the festival by Orange.
Measuring more than 7 meters tall, the free-standing recharge pod is a self-sufficient unit that taps into a wind generator and solar panels to charge as many as 100 mobile phones per hour. It's actually the next iteration of a portable wind charger Orange tested out at last year's festival through a partnership with Gotwind, and will serve as a trial for using renewable energy sources on a larger scale at future festivals. Orange expects the recharge pod will charge thousands of mobile phones over the course of the three-day festival, furnishing power equivalent to what would be needed to power a DJ booth for Groove Armada for 88 hours. The recharge pod will be stationed within the Pennard Hill camping grounds at Glastonbury throughout the weekend of June 27–29, when the event takes place.
Thursday, 19 June 2008
Gannett buys into 'family' social network
Cozi, an intriguing Seattle based startup that’s most easily described as a social network for a family unit, is announcing an investment and business deal with newspaper conglomerate Gannett Co. The size of the investment is not being disclosed (we believe it is $8 million, however).
Cozi lets family members keep a group journal, share photos, organize chores, share calendars and create todo lists. There’s a significant overlap with genealogy sites like Geni, as well as some of the life story sites we’ve profiled from time to time. But I haven’t seen anything quite like Cozi, which also has mobile and Outlook syncing to keep everyone on the same page. The demo here gives more feature details.
The service now has 600,000 registered family members and says it’s adding 2,000 new ones per day.
We think this is a really good investment its a natural extension for Gannett. It helps keep it local and relevant. I'm sure Cozi will be delivering Gannett content, particularly local content and will will be pushing the service its users.
Stragetically smart but also helps sweat the expensive newspaper machine alittle harder which is no bad thing.
First profits for City A.M.
Well done to our friends at City A.M on the announcement of their maiden profit. Its hard work out there right now and these boys are managing not only to stay afloat but to do it profitably.
From October 2007 to March 2008, free London business paper City A.M. made a profits of £47,000 before tax (€60,000). The revenues were £3.5m in that period. Last year the publisher made a loss of £754,000. City A.M. was launched in September 2005.
City A.M. plans to increase its distribution from 100,000 to 150,000 and is also thinking of launching in other cities in the autumn. In London distribution will expand to railway stations in south-west London such as Richmond. (Press Gazette)
From October 2007 to March 2008, free London business paper City A.M. made a profits of £47,000 before tax (€60,000). The revenues were £3.5m in that period. Last year the publisher made a loss of £754,000. City A.M. was launched in September 2005.
City A.M. plans to increase its distribution from 100,000 to 150,000 and is also thinking of launching in other cities in the autumn. In London distribution will expand to railway stations in south-west London such as Richmond. (Press Gazette)
Tuesday, 10 June 2008
V2.0 Apple iphone - faster, cheaper and much more
Steve Jobs revealed the new iphone yesterday and WOW.
Its 3G so much much faster, 3 x faster in fact than its predecessor. Good news for business users.
And it lasts longer (new phone can get 300 hours of standby time, five hours of talk time on a 3G network, five to six hours of high-speed Web browsing, seven hours of video and 24 hours of audio according to Jobs).
And perhaps most importantly in these economically challenged times it costs $199 — $400 less than the original iPhone.
Faster and cheaper so far so good.
Perhaps the coolest additional feature is the built-in global positioning via satellite. The older phone triangulates a user's position via cell-phone towers. The new one has a GPS receiver that can track a user in real time. Jobs showed off the GPS capabilities with a recording that showed a 3G user driving down San Francisco's winding Lombard Street. As a tiny dot appeared on a Google map and slowly wended its way down the street, the crowd roared its approval.
Maybe just maybe we are a step closer to the marketers dreams of real-time location based services.
Apple we love you and now we might even be able to afford your iphone!
Its 3G so much much faster, 3 x faster in fact than its predecessor. Good news for business users.
And it lasts longer (new phone can get 300 hours of standby time, five hours of talk time on a 3G network, five to six hours of high-speed Web browsing, seven hours of video and 24 hours of audio according to Jobs).
And perhaps most importantly in these economically challenged times it costs $199 — $400 less than the original iPhone.
Faster and cheaper so far so good.
Perhaps the coolest additional feature is the built-in global positioning via satellite. The older phone triangulates a user's position via cell-phone towers. The new one has a GPS receiver that can track a user in real time. Jobs showed off the GPS capabilities with a recording that showed a 3G user driving down San Francisco's winding Lombard Street. As a tiny dot appeared on a Google map and slowly wended its way down the street, the crowd roared its approval.
Maybe just maybe we are a step closer to the marketers dreams of real-time location based services.
Apple we love you and now we might even be able to afford your iphone!
Online Advertising powers on but so does outdoor and cinema
Online advertising spending leapt over the £3bn level for the first time in the UK last year, according to new research, grabbing market share from other parts of the media such as newspapers, magazines and direct mail.
Ad spend across all media in the UK rose 4.2% to £19.4bn in 2007, according to the the Advertising Association and the World Advertising Research Centre.
The internet, cinema and the outdoor advertising sectors posted the biggest year-on-year growth, with online spending up a dramatic 39.5% - year on year - to just over £3bn. Online advertising, which was the fastest-growing sector, accounted for 16% of total UK ad spend last year.
Commentators have long maintained that advertisers are being drawn online from other areas of media such as print and direct mail. The figures seem to add weight to this hypothesis, showing that press advertising, which includes national, regional and magazine advertising, declined 1.6% year on year.
Press is, however, still the largest single sector in the UK, accounting for 40%, or £7.7bn, of advertising spending last year. Direct mail advertising, meanwhile, saw a 6.5% decline to £2.17bn last year.
The UK cinema advertising sector recorded 10.1% year-on-year growth, but the overall cinema market was worth just £207m, 1.1% of the UK's total advertising market. Outdoor advertising grew by 4.6% to £1.05bn, giving the sector a 5.5% share of UK ad spending, fuelled by the continuing digitisation of billboards and poster sites. The TV sector managed a modest 2.3% year-on-year gain to £4.67bn, accounting for 24% of all UK ad spend. (Source: Guardian Media)
newstritional disorder?
Today's younger generation is under attack from an unlikely source: news it can't adequately process. According to an international study released Monday, people aged 18 to 34 are bombarded by news, facts and updates to the point where they now suffer from "newstritional disorder," according to anthropologist Robbie Blinkoff, who headed the study. Symptoms can include a diminished attention span, news fatigue, distraction, and even agitation, which can affect how people communicate in their personal and organizational relationships.
Thanks to Time Magazine for this piece. Its actually well worth a read (the piece not the 71 page study!) as it is probably prescient and might open eyes to challenges and opportunities coming along in the future.
The Time piece can be found by clicking here
Thanks to Time Magazine for this piece. Its actually well worth a read (the piece not the 71 page study!) as it is probably prescient and might open eyes to challenges and opportunities coming along in the future.
The Time piece can be found by clicking here
Monday, 9 June 2008
Mirror Mouthpiece launches
After an intense development period, our client the Daily Mirror, has launched their dynamic online reader panel community; developed, designed, delivered and managed by Market Evolution using eDigital Research's fine software solution (Press release at the bottom of this article)
Mouthpiece moves online research on from 1 way "ask-tell" to a 3 way dialogue with consumers - we talk to them, they talk to us, they talk to each other. It provides a rich seam of qualititative views and opinions from a large number of readers, very dynamic and very exciting.
We're very proud of it, and think it's very forward thinking of the Mirror to make this investment in showcasing its readers, and listening to their views - it really is putting the reader at the heart of the business. We obviously would say that, given they are a great client of ours, but we mean it - it's a major step forward in the industry.
www.mirror.co.uk/mouthpiece
It's currently invitation only, but the front page gives you a feel for what's inside.....
Mirror Group launches online research community
by Staff Brand Republic 09-Jun-08, 11:40
LONDON - Mirror Group has launched an online research community called Mirror Mouthpiece, which allows the Daily Mirror to get a better view of reader's attitudes to advertising and editorial.
Mirror Mouthpiece includes a mixture of forums, net chats, product ratings, polls and blogs.
It has been developed on the back of the success of Mirror Group's 5,000-strong reader panel, which has run more than 100 surveys since 2003. These include client-specific surveys for advertisers such as Pedigree, Freeview and John Smiths.
Mouthpiece is linked directly to the Reader Panel and will allow for the first time interaction between the depth of quantitative panel data and the qualitative insight.
The online research community was created by Mirror Group's strategic planning team led by Suzy Jordan and Nicky Jones, in partnership with Market Evolution and online market research firm eDigital Research.
Richard Webb, Mirror Group's managing director, said: "The launch of Mouthpiece enables us to have a regular dialogue with our readers, putting them at the heart of what we do.
"Mouthpiece has already been used for advertiser projects and can give immediate insight and feedback on their campaigns."
One example of how it has been used is with the long-running campaign for the Food & Drink Federation, to promote awareness of guideline daily allowance food labelling.
Mirror Group monitored readers' awareness of the advertising and accompanying editorial content using their Reader Panel. Mirror Mouthpiece was then used to get "under the skin" of readers' relationships with food and the actions they take to keep themselves healthy.
The Reader Panel results showed that readers' usage of GDA labels increased by 19% over the campaign period and specific topic forums on Mouthpiece gave Mirror Group Advertising invaluable insight into why labelling was important to their readers.
Jane Holdsworth, GDA campaign director, said: "This isn't just about a label, it's about encouraging people to lead healthier lives. The results from the Mirror reader panel show that this activity struck exactly the right tone
Mouthpiece moves online research on from 1 way "ask-tell" to a 3 way dialogue with consumers - we talk to them, they talk to us, they talk to each other. It provides a rich seam of qualititative views and opinions from a large number of readers, very dynamic and very exciting.
We're very proud of it, and think it's very forward thinking of the Mirror to make this investment in showcasing its readers, and listening to their views - it really is putting the reader at the heart of the business. We obviously would say that, given they are a great client of ours, but we mean it - it's a major step forward in the industry.
www.mirror.co.uk/mouthpiece
It's currently invitation only, but the front page gives you a feel for what's inside.....
Mirror Group launches online research community
by Staff Brand Republic 09-Jun-08, 11:40
LONDON - Mirror Group has launched an online research community called Mirror Mouthpiece, which allows the Daily Mirror to get a better view of reader's attitudes to advertising and editorial.
Mirror Mouthpiece includes a mixture of forums, net chats, product ratings, polls and blogs.
It has been developed on the back of the success of Mirror Group's 5,000-strong reader panel, which has run more than 100 surveys since 2003. These include client-specific surveys for advertisers such as Pedigree, Freeview and John Smiths.
Mouthpiece is linked directly to the Reader Panel and will allow for the first time interaction between the depth of quantitative panel data and the qualitative insight.
The online research community was created by Mirror Group's strategic planning team led by Suzy Jordan and Nicky Jones, in partnership with Market Evolution and online market research firm eDigital Research.
Richard Webb, Mirror Group's managing director, said: "The launch of Mouthpiece enables us to have a regular dialogue with our readers, putting them at the heart of what we do.
"Mouthpiece has already been used for advertiser projects and can give immediate insight and feedback on their campaigns."
One example of how it has been used is with the long-running campaign for the Food & Drink Federation, to promote awareness of guideline daily allowance food labelling.
Mirror Group monitored readers' awareness of the advertising and accompanying editorial content using their Reader Panel. Mirror Mouthpiece was then used to get "under the skin" of readers' relationships with food and the actions they take to keep themselves healthy.
The Reader Panel results showed that readers' usage of GDA labels increased by 19% over the campaign period and specific topic forums on Mouthpiece gave Mirror Group Advertising invaluable insight into why labelling was important to their readers.
Jane Holdsworth, GDA campaign director, said: "This isn't just about a label, it's about encouraging people to lead healthier lives. The results from the Mirror reader panel show that this activity struck exactly the right tone
Wednesday, 4 June 2008
£2bn market research merger
News today that TNS and Gfk have announced a mega-merger to create the 2nd largest global research company, operating in well over 100 countries, in a 50:50 marriage of equals worth £2bn.
WPP are still stalking the party though, and with their track record, the deal may not be done until the ink is properly dry.
Those of you who know us will be aware that part of our reasoning for setting up Market Evolution in the first place was born out of frustration with big monolithic research agencies. While no-one gets fired for hiring one of the big boys, it can be a frustrating exercise which costs over the odds and delivers an underwhelming level of actionable insight. Not always of course, but the smartest minds rarely seem to flourish in a "factory" environment.
Who will do best out of the merger - shareholders, staff, or clients? My money wouldn't be on the second or third...
It will be interesting to see how this one plays out
WPP are still stalking the party though, and with their track record, the deal may not be done until the ink is properly dry.
Those of you who know us will be aware that part of our reasoning for setting up Market Evolution in the first place was born out of frustration with big monolithic research agencies. While no-one gets fired for hiring one of the big boys, it can be a frustrating exercise which costs over the odds and delivers an underwhelming level of actionable insight. Not always of course, but the smartest minds rarely seem to flourish in a "factory" environment.
Who will do best out of the merger - shareholders, staff, or clients? My money wouldn't be on the second or third...
It will be interesting to see how this one plays out
Saturday, 31 May 2008
Old media fight back
In advertising these days measurement is everything — how many people see a particular advertisement, when they see it, who they are. All of that is easy on the Internet, and getting easier in television and print.
Posters are a different story. For the most part, they are still a relic of old-world media, and the best guesses about viewership numbers come from foot traffic counts or highway reports, neither of which guarantees that the people passing by were really looking at the billboard, or that they were the ones sought out.
Now, some entrepreneurs have introduced technology to solve that problem. They are equipping billboards with tiny cameras that gather details about passers-by — their gender, approximate age and how long they looked at the billboard. These details are transmitted to a central database. (NYT)
will it catch on? watch this space
Posters are a different story. For the most part, they are still a relic of old-world media, and the best guesses about viewership numbers come from foot traffic counts or highway reports, neither of which guarantees that the people passing by were really looking at the billboard, or that they were the ones sought out.
Now, some entrepreneurs have introduced technology to solve that problem. They are equipping billboards with tiny cameras that gather details about passers-by — their gender, approximate age and how long they looked at the billboard. These details are transmitted to a central database. (NYT)
will it catch on? watch this space
Virgin Radio is no more
Scottish broadcaster SMG has sold its Virgin Radio rock station to the Times of India Group, one of India's largest media and entertainment firms, for £53.2m.
The Virgin name will disappear from the station, giving its new owner freedom to build online, TV, music and other spin-offs without having to consider branding restrictions imposed by Sir Richard Branson's Virgin Group.
Perhaps more interesting is the significant 'loss' SMG made on the Virgin deal. Remember it paid Chris Evans £225m for the station in 2000 and 8 years later sold in for £53.2m.OUCH!
The Virgin name will disappear from the station, giving its new owner freedom to build online, TV, music and other spin-offs without having to consider branding restrictions imposed by Sir Richard Branson's Virgin Group.
Perhaps more interesting is the significant 'loss' SMG made on the Virgin deal. Remember it paid Chris Evans £225m for the station in 2000 and 8 years later sold in for £53.2m.OUCH!
Tuesday, 27 May 2008
seth godin marketing tips - always handy
What Every Good Marketer Knows:
* Anticipated, personal and relevant advertising always does better than unsolicited junk.
* Making promises and keeping them is a great way to build a brand.
* Your best customers are worth far more than your average customers.
* Share of wallet is easier, more profitable and ultimately more effective a measure than share of market.
* Marketing begins before the product is created.
* Advertising is just a symptom, a tactic. Marketing is about far more than that.
* Low price is a great way to sell a commodity. That’s not marketing, though, that’s efficiency.
* Conversations among the members of your marketplace happen whether you like it or not. Good marketing encourages the right sort of conversations.
* Products that are remarkable get talked about.
* Marketing is the way your people answer the phone, the typesetting on your bills and your returns policy.
* You can’t fool all the people, not even most of the time. And people, once unfooled, talk about the experience.
* If you are marketing from a fairly static annual budget, you’re viewing marketing as an expense. Good marketers realize that it is an investment.
* People don’t buy what they need. They buy what they want.
* You’re not in charge. And your prospects don’t care about you.
* What people want is the extra, the emotional bonus they get when they buy something they love.
* Business to business marketing is just marketing to consumers who happen to have a corporation to pay for what they buy.
* Traditional ways of interrupting consumers (TV ads, trade show booths, junk mail) are losing their cost-effectiveness. At the same time, new ways of spreading ideas (blogs, permission-based RSS information, consumer fan clubs) are quickly proving how well they work.
* People all over the world, and of every income level, respond to marketing that promises and delivers basic human wants.
* Good marketers tell a story.
* People are selfish, lazy, uninformed and impatient. Start with that and you’ll be pleasantly surprised by what you find.
* Marketing that works is marketing that people choose to notice.
* Effective stories match the worldview of the people you are telling the story to.
* Choose your customers. Fire the ones that hurt your ability to deliver the right story to the others.
* A product for everyone rarely reaches much of anyone.
* Living and breathing an authentic story is the best way to survive in an conversation-rich world.
* Marketers are responsible for the side effects their products cause.
* Reminding the consumer of a story they know and trust is a powerful shortcut.
* Good marketers measure.
* Marketing is not an emergency. It’s a planned, thoughtful exercise that started a long time ago and doesn’t end until you’re done.
* One disappointed customer is worth ten delighted ones.
* In the googleworld, the best in the world wins more often, and wins more.
* Most marketers create good enough and then quit. Greatest beats good enough every time.
* There are more rich people than ever before, and they demand to be treated differently.
* Organizations that manage to deal directly with their end users have an asset for the future.
* You can game the social media in the short run, but not for long.
* You market when you hire and when you fire. You market when you call tech support and you market every time you send a memo.
* Blogging makes you a better marketer because it teaches you humility in your writing.
Obviously, knowing what to do is very, very different than actually doing it.
* Anticipated, personal and relevant advertising always does better than unsolicited junk.
* Making promises and keeping them is a great way to build a brand.
* Your best customers are worth far more than your average customers.
* Share of wallet is easier, more profitable and ultimately more effective a measure than share of market.
* Marketing begins before the product is created.
* Advertising is just a symptom, a tactic. Marketing is about far more than that.
* Low price is a great way to sell a commodity. That’s not marketing, though, that’s efficiency.
* Conversations among the members of your marketplace happen whether you like it or not. Good marketing encourages the right sort of conversations.
* Products that are remarkable get talked about.
* Marketing is the way your people answer the phone, the typesetting on your bills and your returns policy.
* You can’t fool all the people, not even most of the time. And people, once unfooled, talk about the experience.
* If you are marketing from a fairly static annual budget, you’re viewing marketing as an expense. Good marketers realize that it is an investment.
* People don’t buy what they need. They buy what they want.
* You’re not in charge. And your prospects don’t care about you.
* What people want is the extra, the emotional bonus they get when they buy something they love.
* Business to business marketing is just marketing to consumers who happen to have a corporation to pay for what they buy.
* Traditional ways of interrupting consumers (TV ads, trade show booths, junk mail) are losing their cost-effectiveness. At the same time, new ways of spreading ideas (blogs, permission-based RSS information, consumer fan clubs) are quickly proving how well they work.
* People all over the world, and of every income level, respond to marketing that promises and delivers basic human wants.
* Good marketers tell a story.
* People are selfish, lazy, uninformed and impatient. Start with that and you’ll be pleasantly surprised by what you find.
* Marketing that works is marketing that people choose to notice.
* Effective stories match the worldview of the people you are telling the story to.
* Choose your customers. Fire the ones that hurt your ability to deliver the right story to the others.
* A product for everyone rarely reaches much of anyone.
* Living and breathing an authentic story is the best way to survive in an conversation-rich world.
* Marketers are responsible for the side effects their products cause.
* Reminding the consumer of a story they know and trust is a powerful shortcut.
* Good marketers measure.
* Marketing is not an emergency. It’s a planned, thoughtful exercise that started a long time ago and doesn’t end until you’re done.
* One disappointed customer is worth ten delighted ones.
* In the googleworld, the best in the world wins more often, and wins more.
* Most marketers create good enough and then quit. Greatest beats good enough every time.
* There are more rich people than ever before, and they demand to be treated differently.
* Organizations that manage to deal directly with their end users have an asset for the future.
* You can game the social media in the short run, but not for long.
* You market when you hire and when you fire. You market when you call tech support and you market every time you send a memo.
* Blogging makes you a better marketer because it teaches you humility in your writing.
Obviously, knowing what to do is very, very different than actually doing it.
11th Hour fails to captivate
Channel 4's 11th Hour DiCaprio documentary written about here failed to attract the viewers last night
It was somewhat embarrassingly beaten by Meerkat Manor on BBC2, which was watched by 1.3 million viewers, a share of 6% between 7.50pm and 8.15pm. Why are we surprised? Animal docs have always been big pullers havent they. Shame there wont be a planet for them to live on unless we wise up!
It was also beaten by the cricket highlights on Channel Five, which attracted 900,000 viewers and a 5% share between 7.15pm and 8pm, for coverage of England's third-dad fightback in the second test against New Zealand.This isnt surprising either is it? Its rare engalnd show some real grit on the sports field and they did and it was worth a look.
That said some 800,000 people did tune in and you know what thats 800,000 who are better informed and perhaps more tuned in to the serious threat we pose to the health of the world.
It was somewhat embarrassingly beaten by Meerkat Manor on BBC2, which was watched by 1.3 million viewers, a share of 6% between 7.50pm and 8.15pm. Why are we surprised? Animal docs have always been big pullers havent they. Shame there wont be a planet for them to live on unless we wise up!
It was also beaten by the cricket highlights on Channel Five, which attracted 900,000 viewers and a 5% share between 7.15pm and 8pm, for coverage of England's third-dad fightback in the second test against New Zealand.This isnt surprising either is it? Its rare engalnd show some real grit on the sports field and they did and it was worth a look.
That said some 800,000 people did tune in and you know what thats 800,000 who are better informed and perhaps more tuned in to the serious threat we pose to the health of the world.
Monday, 19 May 2008
Metro International
News today that Metro International has sold a stake in Metro Sweden to its main competitor, Schibsted. £350SEK for 35% of Metro Sweden marks an interesting new commercial strategy for PMJ, the new CEO of Metro International. Is this a case of any port in a storm to generate cash to improve the financial performance in the short term, or a bold and dynamic route-map for the future?
Time will tell whether this is a blueprint to be rolled out across other territories, it certainly makes sense in some, but maybe not in all. Metro are no strangers to JVs, operating a JV and franchise model in a number of countries, so the history and experience of this type of working exists within the business.
It will be interesting to see how the partnership works on raising margins in Sweden in the next 12 months, and whether the investment pays back quick dividends.
Time will tell whether this is a blueprint to be rolled out across other territories, it certainly makes sense in some, but maybe not in all. Metro are no strangers to JVs, operating a JV and franchise model in a number of countries, so the history and experience of this type of working exists within the business.
It will be interesting to see how the partnership works on raising margins in Sweden in the next 12 months, and whether the investment pays back quick dividends.
Thursday, 15 May 2008
Yahoo now has a real battle on its hands
Having beaten off Microsoft Jerry Yang of Yahoo has gotten an even tougher battle on his hands....
Carl C. Icahn, the billionaire investor and activist shareholder, has decided to move ahead with plans for a proxy fight at Yahoo and will propose a dissident slate of directors (NY Times)
We bet Jerry is wishing he had taken Bill's multi $bn offer. Mr Icahn is as someone put a pain in the arse investor! He makes Microsoft look attractive!
Bon chance Jerry
Carl C. Icahn, the billionaire investor and activist shareholder, has decided to move ahead with plans for a proxy fight at Yahoo and will propose a dissident slate of directors (NY Times)
We bet Jerry is wishing he had taken Bill's multi $bn offer. Mr Icahn is as someone put a pain in the arse investor! He makes Microsoft look attractive!
Bon chance Jerry
IIth Hour on C4 - May 25 - tune in
Channel 4 is to broadcast The 11th Hour, the polemical documentary about the environment fronted by Leonardo DiCaprio.
In the documentary, which the channel will transmit on May 25, leading scientists, environmentalists, politicians and activists advance the argument that the Earth is facing environmental disaster, and ask what can be done.
I've seen it and its really really worth watching. It doesn't whinge or whine, it doesn't bash business (too much) nor does it expect us to give up living the way we want to. What it does do is give practical and achieveable advice on how to deal with biggest single threat to our civilisation.
stay in and tune it
In the documentary, which the channel will transmit on May 25, leading scientists, environmentalists, politicians and activists advance the argument that the Earth is facing environmental disaster, and ask what can be done.
I've seen it and its really really worth watching. It doesn't whinge or whine, it doesn't bash business (too much) nor does it expect us to give up living the way we want to. What it does do is give practical and achieveable advice on how to deal with biggest single threat to our civilisation.
stay in and tune it
Polar bear listed as threatened
Finally.
Polar bears will be listed as threatened under Endangered Species Act.
Surely now time to act on protecting their environment as well. Senseless to protect the bears without protecting their environment
Polar bears will be listed as threatened under Endangered Species Act.
Surely now time to act on protecting their environment as well. Senseless to protect the bears without protecting their environment
Wednesday, 14 May 2008
Battle for the streets of New York- least interesting outcome (or maybe not)
Cable opeartor Cablevision acquired Tribune’s New York paper Newsday and free daily amNewYork. The company had a big cheque book paying $650m for the paper, more than the $580m Murdoch’s Newscorp was willing to pay.
On the surface this looks the dullest of the possible outcomes.It would have been much more fun for Murdoch (NY Post) or Zuckerman (NY News) to have been the winner as it would have intensified the already fierce daily battle for the streets of new york.
However we have long thought that a local metropolitan newspaper and a local cable channels was a winning combination. Well with Cablevision owning Newsday and amNewYork we will be able to see first hand whether its infact a profitable tag team capable of withstanding the enormous pressure imposed by the big local media beasts.
On the surface this looks the dullest of the possible outcomes.It would have been much more fun for Murdoch (NY Post) or Zuckerman (NY News) to have been the winner as it would have intensified the already fierce daily battle for the streets of new york.
However we have long thought that a local metropolitan newspaper and a local cable channels was a winning combination. Well with Cablevision owning Newsday and amNewYork we will be able to see first hand whether its infact a profitable tag team capable of withstanding the enormous pressure imposed by the big local media beasts.
Thursday, 8 May 2008
Fascinating battle for streets of New York
Third bidder for Newsday & amNewYork
After Murdoch’s News Corp. (New York Post, Wall Street Journal, local TV) and Mortimer Zuckerman (New York Daily News), also Long Island firm Cablevision will be bidding for NY newspaper Newsday. In this sale free daily amNewYork is included.
Cablevision, owned by the Dolan family, is offering $650m - $70m more than both other bidders - for the Tribune owned company, although the sale would also include some estate and other assets. Cablevision operates cable, telecommunications and Internet businesses on Long Island, including cable and online news service News 12. (Chicago Tribune)
While Newsday is losing money, which all bidders see reduced because of synergy effects with their own operations, amNewYork is making a profit.
Reuters: newspapers will go free
Reuters reported today that a slight majority of newspapers editors think that newspapers will be free in the future because that’s the only way to compete with the internet. The report was conducted by Zogby International for the World Editors Forum and Reuters.
Repondents are more leaning to free than a year ago while Europeans are the moste careful: “56 percent of respondents believed that the majority of news, be it via print or online, would be free in the future. That was up from 48 percent who answered yes a year ago. Those leaning towards the free model mostly came from ‘emerging’ newspaper markets in areas such as South America, Eastern Europe, Russia, the Middle East and Asia where 61 percent of respondents believed news would be free. Respondents in Western Europe were less likely to believe in news becoming free, with 48 percent of news executives thinking it likely, while North American editors were on par with the average.”
Tuesday, 6 May 2008
tgi50
Some of you may have read recent marketing trade press reports that Market Evolution joint principle Toby Constantine was leaving to set up tgi50, a marketing channel focused on the fifty plus age group.
Well the reports were in part true and in part false (surprise surprise)!
Its true Toby is setting up tgi50 but he isn't leaving Market Evolution to do! tgi50 is in fact being set up alongside Market Evolution as a sister company.
tgi50's considerable research and strategic development needs will be handled by Market Evolution and the two businesses will share infrastructure and resource.
Toby will continue to play a central role in serving Market Evolution's growing client base and Market Evolution will provide sisterly services for tgi50 (!).
So there it is straight from source.
Well the reports were in part true and in part false (surprise surprise)!
Its true Toby is setting up tgi50 but he isn't leaving Market Evolution to do! tgi50 is in fact being set up alongside Market Evolution as a sister company.
tgi50's considerable research and strategic development needs will be handled by Market Evolution and the two businesses will share infrastructure and resource.
Toby will continue to play a central role in serving Market Evolution's growing client base and Market Evolution will provide sisterly services for tgi50 (!).
So there it is straight from source.
Wednesday, 23 April 2008
Eros card goes green
Here at ME Towers, we're working across a number of converged sectors and technologies. Those who know us will be aware of our efforts on plastic card based loyalty schemes, enabling brands to have proper links with customers at an individual level, in our view crucial to a successful and profitable future.
With this in mind, we liked the Evening Standard's Eros scheme as a concept when it launched. Rewarding loyal buyers in a ferociously competitive market made sense. We were running tracking research when the free papers launched, so we could see the effect it was having on the paid for ES. This seemed like a good plan.
However, its key message of pre-pay and save 20p didn't fit with its target audience of discerning and intelligent suits, who frankly didn't care about saving 20p for the hassle involved in loading a card. Coupled with its single use closed loop acceptance network, it seemed like the concept would struggle.
Looking at the ABC circulation figures for the ES, you can see the small number of copies being bought on lesser rate pre-pay, so it's obvious that phase 2 development was needed.
And now we have the Green card - jumping on the bandwagon, or in response to consumer insight and demand? We don't know, but have a sneeking suspicion it may be the first of the two. We hope not, we applaud the ES for their vision, and having the confidence to go for this sort of venture - there's few things out there in the sector that have the potential to change the market dynamics, but this is one of them.
The future is plastic, and we are working hard to enable this with our clients, but always listening to the consumer as we do so
With this in mind, we liked the Evening Standard's Eros scheme as a concept when it launched. Rewarding loyal buyers in a ferociously competitive market made sense. We were running tracking research when the free papers launched, so we could see the effect it was having on the paid for ES. This seemed like a good plan.
However, its key message of pre-pay and save 20p didn't fit with its target audience of discerning and intelligent suits, who frankly didn't care about saving 20p for the hassle involved in loading a card. Coupled with its single use closed loop acceptance network, it seemed like the concept would struggle.
Looking at the ABC circulation figures for the ES, you can see the small number of copies being bought on lesser rate pre-pay, so it's obvious that phase 2 development was needed.
And now we have the Green card - jumping on the bandwagon, or in response to consumer insight and demand? We don't know, but have a sneeking suspicion it may be the first of the two. We hope not, we applaud the ES for their vision, and having the confidence to go for this sort of venture - there's few things out there in the sector that have the potential to change the market dynamics, but this is one of them.
The future is plastic, and we are working hard to enable this with our clients, but always listening to the consumer as we do so
Friday, 18 April 2008
Expensive business
Free London afternoon paper thelondondon (News International) lost nearly £17m (€22m) in the first ten months (September 2006 - June 2007). Turnover in that period was £8m.
Launching costs and slow start for ad sales are held responsible for the loss.
Thelondonpaper has a staff of 52 people, 33 working in editorial positions. Circulation is around 500,000. (Guardian)
Launching costs and slow start for ad sales are held responsible for the loss.
Thelondonpaper has a staff of 52 people, 33 working in editorial positions. Circulation is around 500,000. (Guardian)
Wednesday, 16 April 2008
Credit crunch continues
Lead story in The Times today is the JP Morgan forecast that 40,000 City jobs will go as a result of the ongoing global credit crunch. This follows last weeks news that 1 in 4 estate agents will be jobless, as the housing market starts to plunge.
Turbulent times out there, and all the signs remain bleak. As households start to suffer more, belts are tightened and spending reined in, how's that going to hit the media sector?
Free content should in theory come to the fore, as the "floating buyers" in the market, and the occasional buyers, count the pennies and switch from paid-for-print, to free print, or to free digital. I fear for the weekend market most, with higher cover prices already looking to have driven down the number of people dual-buying at the weekend - and the budget conscious will be looking hard before spending £2 on a Sunday newspaper.
The rest of 2008 should see paid-for circulations under increasing pressure. Which of the newspaper brands is going to be first to establish something tangible to recognise their readers real financial issues, and start acting like a real life trusted and helpful brand?
Turbulent times out there, and all the signs remain bleak. As households start to suffer more, belts are tightened and spending reined in, how's that going to hit the media sector?
Free content should in theory come to the fore, as the "floating buyers" in the market, and the occasional buyers, count the pennies and switch from paid-for-print, to free print, or to free digital. I fear for the weekend market most, with higher cover prices already looking to have driven down the number of people dual-buying at the weekend - and the budget conscious will be looking hard before spending £2 on a Sunday newspaper.
The rest of 2008 should see paid-for circulations under increasing pressure. Which of the newspaper brands is going to be first to establish something tangible to recognise their readers real financial issues, and start acting like a real life trusted and helpful brand?
Monday, 7 April 2008
Deal or no deal?
Just a short post today on two interesting developments in the media world.
Firstly, Dennis O'Brien, Irish billionaire who now owns 21% of Independent News & Media looks like he may have to put up or shut up in his potential quest for ownership of the Irish Media business. He has publicly criticised Tony O'Reilly's ongoing ownership of the loss making UK Independents, and pushed for their sale. Much talk around the industry about what would happen if the titles closed, but personally our view is that there will always be a buyer for a national newspaper, regardless of how loss-making it is. As the Barclay Brothers and Richard Desmond have demonstrated in the last few years, national newspapers do get bought when they get put on the market. Maybe Axel Springer could return with a bid for a UK title, or maybe David Montgomery may feel like a UK presence for his European wide business could be too good an opportunity to pass up.
Our view, O'Reilly doesn't want to sell, and provided he can repel the unwanted dissident shareholder, we can't see the Independent changing hands
Second story of the day - the collapse of the bid by Lachlan Murdoch to takeover Consolidated Media Holdings, part of the Packer dynasty. Reports indicate that this came down to Lachlan being unable to get the right price for the right shareholding in the JV - and the backers pulled out through fear over the investment required in todays volatile global economy. Things must be serious when a Murdoch and a Packer can't get a deal done. Which target is next for Murdoch Jnr?
Firstly, Dennis O'Brien, Irish billionaire who now owns 21% of Independent News & Media looks like he may have to put up or shut up in his potential quest for ownership of the Irish Media business. He has publicly criticised Tony O'Reilly's ongoing ownership of the loss making UK Independents, and pushed for their sale. Much talk around the industry about what would happen if the titles closed, but personally our view is that there will always be a buyer for a national newspaper, regardless of how loss-making it is. As the Barclay Brothers and Richard Desmond have demonstrated in the last few years, national newspapers do get bought when they get put on the market. Maybe Axel Springer could return with a bid for a UK title, or maybe David Montgomery may feel like a UK presence for his European wide business could be too good an opportunity to pass up.
Our view, O'Reilly doesn't want to sell, and provided he can repel the unwanted dissident shareholder, we can't see the Independent changing hands
Second story of the day - the collapse of the bid by Lachlan Murdoch to takeover Consolidated Media Holdings, part of the Packer dynasty. Reports indicate that this came down to Lachlan being unable to get the right price for the right shareholding in the JV - and the backers pulled out through fear over the investment required in todays volatile global economy. Things must be serious when a Murdoch and a Packer can't get a deal done. Which target is next for Murdoch Jnr?
Thursday, 3 April 2008
Confused marketing messages
Today I read that email marketing is dead, killed by the avalanche of spam that continues to swamp inboxes around the globe. Not sure if that's true or not, personally I still read emails from brands I like and trust.
Waterstones is one of those brands. I read books, I like their shops, and I buy their books each and every month. I actually prefer to spend time in the bricks and mortar world of Waterstones than their online store.
Their email marketing campaigns have been fairly woeful, mainly I think because they don't tailor their messages to me based on what I like, and what they know about me. Presumably because they can't connect all the insight and behaviour they have on me as an individual. I'm anonymous in-store where I spend money, and inactive online, where I don't spend cash.
Either way, oddest subject matter on a marketing email this morning came from Waterstones, and I quote:
"Change your life with Salman Rushdie, Charlie and Lola"
Salman Rushdie - Fatwa suffering Satanic Verses author with international notoriety
Charlie and Lola - found on the shelves of discerning 5 year olds across the country
Maybe I'm missing something, but this is just random isn't it?
Waterstones is one of those brands. I read books, I like their shops, and I buy their books each and every month. I actually prefer to spend time in the bricks and mortar world of Waterstones than their online store.
Their email marketing campaigns have been fairly woeful, mainly I think because they don't tailor their messages to me based on what I like, and what they know about me. Presumably because they can't connect all the insight and behaviour they have on me as an individual. I'm anonymous in-store where I spend money, and inactive online, where I don't spend cash.
Either way, oddest subject matter on a marketing email this morning came from Waterstones, and I quote:
"Change your life with Salman Rushdie, Charlie and Lola"
Salman Rushdie - Fatwa suffering Satanic Verses author with international notoriety
Charlie and Lola - found on the shelves of discerning 5 year olds across the country
Maybe I'm missing something, but this is just random isn't it?
Wednesday, 2 April 2008
Toxic mortgages coming home to roost
There are dark clouds on the horizon, and the storm seems to be gathering pace.
First Direct have withdrawn all mortgages from the market, which is the equivalent of one of our newspaper clients deciding that they can't afford to cover sport any further. My understanding of the dynamics driving this are:
Mortgages sold badly in US to people who can't afford them, who default, making the investment fall over. All these have already been packaged up and sold onto financial institutions, who re-package again and then re-sell. Which then starts falling over to an extent, but is a timebomb ticking away, with no-one having much idea as to future effect at an individual bank/institution level as more of the wheels (on the house) start coming off.
So, the banks stop lending each other money as they don't know who is solvent, and who is playing pass the parcel with the timebomb with the music still playing. This means cash liquidity gets badly squeezed, and the cost of borrowing the diminishing amount of money available then goes up.
Then the institutions don't have money to lend for mortgages at competitive rates, so they have to stop offering the products.
So, then it gets harder to get a mortgage, and also to re-mortgage when you come off a fixed mortgage. Which means it costs people more in monthly payments. Which hits consumer spending, which slows economic growth, and threatens recession, which costs jobs, incomes and home ownership.
And all because some grubby American salesperson, with the ethics and morals of the gutter, was sent to sell mortgages to people who could never hope to afford them, and signed up vast numbers of the economically challenged into really bad deals.
Anyone got any good news?
First Direct have withdrawn all mortgages from the market, which is the equivalent of one of our newspaper clients deciding that they can't afford to cover sport any further. My understanding of the dynamics driving this are:
Mortgages sold badly in US to people who can't afford them, who default, making the investment fall over. All these have already been packaged up and sold onto financial institutions, who re-package again and then re-sell. Which then starts falling over to an extent, but is a timebomb ticking away, with no-one having much idea as to future effect at an individual bank/institution level as more of the wheels (on the house) start coming off.
So, the banks stop lending each other money as they don't know who is solvent, and who is playing pass the parcel with the timebomb with the music still playing. This means cash liquidity gets badly squeezed, and the cost of borrowing the diminishing amount of money available then goes up.
Then the institutions don't have money to lend for mortgages at competitive rates, so they have to stop offering the products.
So, then it gets harder to get a mortgage, and also to re-mortgage when you come off a fixed mortgage. Which means it costs people more in monthly payments. Which hits consumer spending, which slows economic growth, and threatens recession, which costs jobs, incomes and home ownership.
And all because some grubby American salesperson, with the ethics and morals of the gutter, was sent to sell mortgages to people who could never hope to afford them, and signed up vast numbers of the economically challenged into really bad deals.
Anyone got any good news?
Monday, 31 March 2008
The importance of a good story order
Thanks to Roy Greenslade's blog for this. Worth 20 seconds of time in anyone's working day......
Here's a gem from the Daily Record's Pat Roller column about a story that appeared in the Cumbernauld News, though it doesn't appear on that paper's website, perhaps unsurprisingly.
"If you have recently lost a brown/black longhair cat with a red collar, Cumbernauld woman Elizabeth Nikplavlovic contacted the News to say she had found one and wanted to put the owner's mind at rest. Unfortunately, the cat had been hit by a car before Elizabeth found it lying beside the Seafar ring road and it had to be put down. Elizabeth is happy to speak to the cat's owner."
Here's a gem from the Daily Record's Pat Roller column about a story that appeared in the Cumbernauld News, though it doesn't appear on that paper's website, perhaps unsurprisingly.
"If you have recently lost a brown/black longhair cat with a red collar, Cumbernauld woman Elizabeth Nikplavlovic contacted the News to say she had found one and wanted to put the owner's mind at rest. Unfortunately, the cat had been hit by a car before Elizabeth found it lying beside the Seafar ring road and it had to be put down. Elizabeth is happy to speak to the cat's owner."
Thursday, 13 March 2008
AOL buys Bebo
AOL's been an interesting business to watch over the last 10 years. From darling of the dotcom boom, buying Time Warner as a dashing young digital upstart, then finding the position somewhat reversed since the dark days of 2002, to business without portfolio in the UK since selling its domestic broadband business to Carphone Warehouse last year.
Now it's buying Bebo. On the face of it, an odd move. Strategically, yes, buy into social networking and use it to push your content, but Bebo? Facebook's younger rival? Home to schoolkids throughout the world. Yes, it has good audience numbers, but are they a good fit for the AOL brand? Are there 427 million good reasons to buy.....
Time will tell.
Report below taken from Marketing Week:
Internet company AOL has announced it is to acquire social networking site Bebo for $850m (£427m). AOL says the deal will give it a "premier position" in social media.
Bebo has around 40 million users worldwide and is the third most popular US social media site and the sixth in the UK, according to Nielsen Online figures. The company has around 100 employees operating in offices in the UK and the US.
AOL chairman and chief executive Randy Falco says: "Bebo is the perfect complement to AOL's personal communication network and puts us in a leading position in social media." He adds: "This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers."
Bebo president Joanna Shields will continue to run the social media company after the deal is closed and will report to Ron Grant, the president and chief operating officer of AOL
Now it's buying Bebo. On the face of it, an odd move. Strategically, yes, buy into social networking and use it to push your content, but Bebo? Facebook's younger rival? Home to schoolkids throughout the world. Yes, it has good audience numbers, but are they a good fit for the AOL brand? Are there 427 million good reasons to buy.....
Time will tell.
Report below taken from Marketing Week:
Internet company AOL has announced it is to acquire social networking site Bebo for $850m (£427m). AOL says the deal will give it a "premier position" in social media.
Bebo has around 40 million users worldwide and is the third most popular US social media site and the sixth in the UK, according to Nielsen Online figures. The company has around 100 employees operating in offices in the UK and the US.
AOL chairman and chief executive Randy Falco says: "Bebo is the perfect complement to AOL's personal communication network and puts us in a leading position in social media." He adds: "This positions us to offer advertisers even greater reach and marketers significant insights into the desires and needs of consumers."
Bebo president Joanna Shields will continue to run the social media company after the deal is closed and will report to Ron Grant, the president and chief operating officer of AOL
Tuesday, 11 March 2008
Murdoch all but bows out of Yahoo race
"No, we're not going to get into a fight with Microsoft, which has a lot more money than us," Mr Murdoch said today in response to a question at the annual Bear Stearns Media Conference
Artist unveils 'newspaper house'
 Local residents brought newspapers to complete the house |
The 4 meters high house by artist Summer Erek is meant to demonstrate that newspapers should be recycled instead of being thrown away. About 10,000 papers were collected by Project Freesheet while train companies donated two tonnes of newspapers left by commuters.
Wednesday, 27 February 2008
Desperate Housewives or just desperate?
From well-regarded television industry journalist and future blogger Bill Carter:
Looking to strike a blow against the proliferation of digital video recorders, the ABC network, its affiliated broadcast stations, and Cox Communications’ cable systems are establishing an on-demand video service that would allow viewers to watch ABC shows like “Lost” and “Desperate Housewives” any time they choose.
The catch: It uses a new technology that disables the viewers’ ability to fast-forward through commercials...
Several executives involved in the project, which ABC plans to offer to other cable systems around the country, said the move was an overt attempt to staunch the use of DVRs like TiVo, which viewers often use to avoid commercials. That activity is increasingly seen as threat to broadcast television, which depends on ad revenue to pay for programs.
“This does counter the DVR,” said Anne Sweeney, the president of the Disney-ABC television group. “You don’t need TiVo if you have fast-forward-disabled video on demand..."
Ray Cole, president of Citadel Communications, which owns three local ABC stations, who is also the chairman of the board of affiliated ABC stations, was even more direct about the goal of the new service.
“As network and affiliates, we both have an interest in slowing down the explosive growth of DVRs,” Mr. Cole said. “This is about combating DVRs. As we developed this at every stage, there was an agreement that however we put this together, disabling the fast-forward function was key.”
A pictorial representation of ABC's view of you, the viewer:
Monday, 25 February 2008
AMERICAN TV ADS ARE LESS EFFECTIVE THAN TWO YEARS AGO
NEW YORK: A majority of US marketers believe that television advertising has become less effective over the past two years, spurring interest in exploring new ad and video commercial formats.
That's the conclusion of the fourth biennial TV & Technology survey conducted by the Association of National Advertisers and Forrester Research.
Among the study's main findings ...
- Sixty-two percent of marketers believe TV advertising has become less effective in the past two years, but close to half of the advertisers surveyed have already started to experiment with new ad types to work with DVRs and VOD programs.
- Eighty-seven percent of advertisers believe branded entertainment will play a stronger role in TV advertising in the coming year.
- Advertisers are eager to try new ad formats, including ads in online TV shows (65 percent), ads embedded in VOD (55 percent), interactive television ads (43 percent), and ads within the set top box menu (32 percent).
- Over 50 percent of marketers reported that when half of all TV households use DVRs, they will cut spending on TV advertising by 12 percent.
- Eighty-seven percent of respondents said they intend to spend more on Web advertising this year.
- Seventy-two percent of marketers are very interested in having individual commercial ratings rather than average commercial ratings.
"Marketers, in collaboration with the TV industry, will continue to find the most effective and innovative ways to reach their customers through the TV medium, utilizing the emerging technologies available to them."
MURDOCH CONTINUES TO RULE UK NEWSPAPER READERSHIP ROOST
LONDON: In its first-ever release of combined ABC print and online monthly circulation figures, the UK Audit Bureau of Circulations flags Associated Newspapers' middle-class clarion Daily Mail as the nation's leading newspaper brand.But - and its a big 'but' - the new Multi-Platform Monthly Report, based on the ABC's January audit, covers only five national newspaper publishers. It is hoped more will follow suit in the near future.
Among those included in the new survey, the Daily and Sunday Mail lead the field with print circulation and web unique users totalling 22.55 million, comfortably outpacing The Guardian/The Observer's 20.5m and The Sun's 16.6m.
However, it's a different story when it comes to overall reach by individual newspaper groups. In this sector, NewsCorp unit News International has put a massive stretch of clear blue water between itself and its nearest competitor Telegraph Media Group.
News International, which comprises daily title The Sun and its Sunday equivalent, News of the World, is also preeminent at the opposite end of the socio-economic scale with The Times and The Sunday Times.
Clan Murdoch's combined newspaper portfolio, both offline and on, accounts for no fewer than 36.7m. Leaving runner-up TMG (13.9m) trailing by 22.8m
Among the major names yet to commit to the multi-platform audit are Mirror Group, Independent Newspapers, Financial Times and Express Newspapers.
It is not known when (or if) they will follow suit.
Data sourced from mad.co.uk; additional content by WARC staff , 25 February 2008
Monday, 18 February 2008
Deja Vu? or 2nd time lucky?
What I had'nt realised when I blogged last Friday 'Best form of defence is offence' is that the four newspaper companies were also all part of the New Century Network in the late 1990s...
Source: New York Times.
March 1998:
[W]hen New Century Network was kicked off last April by nine giants teaming up to conquer electronic competition, even the launch party bombed...
In a ballroom at the Newspaper Association of America convention in Chicago, a thousand bottles of champagne emblazoned with ''New Century Network: The Collective Intelligence of America's Newspapers'' awaited the hordes expected to come to toast the watershed new-media joint venture. When fewer than 100 people showed up, Chief Executive Lee de Boer made an abbreviated speech before retreating...
The reception was the first public humiliation for New Century Network, but only one in a series of blunders that culminated in the company's abrupt shutdown on Mar. 10. Created in 1995 to unite newspapers against Microsoft Corp. and other competitors girding to woo electronically advertisers and readers, New Century Network came to embody everything that could go wrong when old-line newspapers converge with new media...
Started with $1 million each from Knight-Ridder, Tribune, Times Mirror, Advance Publications, Cox Enterprises, Gannett, Hearst, Washington Post, and New York Times, New Century seemed an entrepreneurial dream. The Internet had just opened to the world, creating vast new competition for readers--and for the advertisers that pump $40 billion into newspapers. But it also gave newspapers a chance to capture national accounts that favored the one-stop-shopping convenience of TV and national magazines...
[T]he [newspaper] companies had wildly diverging philosophies about how newspapers should make the electronic leap and what role the new venture should play. ''You had private companies and public companies and companies that were risk-averse and those that were risk-tolerant,'' says Harry Chandler, head of new media for Los Angeles Times. ''You had big-city papers and small chains. We shared a need. But it was frustrating trying to come together.''
While the wired world moved at warp speed, New Century spent 18 months hiring a permanent ceo and two years creating an electronic doorway to 140 newspapers... ''This [Internet] thing is really racing,'' says Al Sikes, the former Federal Communications Commissioner who is president of Hearst New Media. ''Organizations of a number of co-equals can't turn on a dime.''...
The partners ultimately invested more than $25 million in the virtual venture... The board decided... to pull the plug, coming to a remarkably quick agreement--for the first and final time...
Source: New York Times.
March 1998:
[W]hen New Century Network was kicked off last April by nine giants teaming up to conquer electronic competition, even the launch party bombed...
In a ballroom at the Newspaper Association of America convention in Chicago, a thousand bottles of champagne emblazoned with ''New Century Network: The Collective Intelligence of America's Newspapers'' awaited the hordes expected to come to toast the watershed new-media joint venture. When fewer than 100 people showed up, Chief Executive Lee de Boer made an abbreviated speech before retreating...
The reception was the first public humiliation for New Century Network, but only one in a series of blunders that culminated in the company's abrupt shutdown on Mar. 10. Created in 1995 to unite newspapers against Microsoft Corp. and other competitors girding to woo electronically advertisers and readers, New Century Network came to embody everything that could go wrong when old-line newspapers converge with new media...
Started with $1 million each from Knight-Ridder, Tribune, Times Mirror, Advance Publications, Cox Enterprises, Gannett, Hearst, Washington Post, and New York Times, New Century seemed an entrepreneurial dream. The Internet had just opened to the world, creating vast new competition for readers--and for the advertisers that pump $40 billion into newspapers. But it also gave newspapers a chance to capture national accounts that favored the one-stop-shopping convenience of TV and national magazines...
[T]he [newspaper] companies had wildly diverging philosophies about how newspapers should make the electronic leap and what role the new venture should play. ''You had private companies and public companies and companies that were risk-averse and those that were risk-tolerant,'' says Harry Chandler, head of new media for Los Angeles Times. ''You had big-city papers and small chains. We shared a need. But it was frustrating trying to come together.''
While the wired world moved at warp speed, New Century spent 18 months hiring a permanent ceo and two years creating an electronic doorway to 140 newspapers... ''This [Internet] thing is really racing,'' says Al Sikes, the former Federal Communications Commissioner who is president of Hearst New Media. ''Organizations of a number of co-equals can't turn on a dime.''...
The partners ultimately invested more than $25 million in the virtual venture... The board decided... to pull the plug, coming to a remarkably quick agreement--for the first and final time...
Friday, 15 February 2008
Best form of defence is offence.....
Four leading US newspaper companies are to announce a new joint company today to sell targeted local online advertising on their respective sites.
The Tribune Company, the Gannett Company, the Hearst Corporation and The New York Times Company will jointly own quadrantONE, with a base in Chicago that will employ 17 people.
According to the NY Times, advertising space will be sold in papers including The Los Angeles Times, The Des Moines Register, The Houston Chronicle and The Boston Globe. However titles considered to be not local will not be included in the deal, including USA Today, The New York Times and The International Herald Tribune.
The new company is said to be focused on offering advertisers scale in ad buys, with the newspaper companies themselves maintaining control. The move comes as Google, Yahoo and Microsoft all target online mainstream media news sites, and it would appear that in part the move is also a reaction to that, with Lincoln Millstein from Hearst Newspapers saying simply “We want to control our own destiny.”
The combined reach of quadrantONE’s partner sites will be 50 million unique visitors a month.
The Tribune Company, the Gannett Company, the Hearst Corporation and The New York Times Company will jointly own quadrantONE, with a base in Chicago that will employ 17 people.
According to the NY Times, advertising space will be sold in papers including The Los Angeles Times, The Des Moines Register, The Houston Chronicle and The Boston Globe. However titles considered to be not local will not be included in the deal, including USA Today, The New York Times and The International Herald Tribune.
The new company is said to be focused on offering advertisers scale in ad buys, with the newspaper companies themselves maintaining control. The move comes as Google, Yahoo and Microsoft all target online mainstream media news sites, and it would appear that in part the move is also a reaction to that, with Lincoln Millstein from Hearst Newspapers saying simply “We want to control our own destiny.”
The combined reach of quadrantONE’s partner sites will be 50 million unique visitors a month.
Thursday, 14 February 2008
Truth is stranger than fiction (funny)
FROM BRITISH NEWSPAPERS
1) Commenting on a complaint from a Mr. Arthur Purdey about a large gas bill, a spokesman for North West Gas said, "We agree it was rather high for the time of year. It's possible Mr. Purdey has been charged for the gas used up during the explosion that destroyed his house."
(The Daily Telegraph)
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2) Police reveal that a woman arrested for shoplifting had a whole salami in her underwear. When asked why, she said it was because she was missing her Italian boyfriend. (The Manchester Evening News)
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3) Irish police are being handicapped in a search for a stolen van, because they cannot issue a description. It's a Special Branch vehicle and they don't want the public to know what it looks like. (The Guardian)
------------------------------------------------------------------------
4) A young girl who was blown out to sea on a set of inflatable teeth was rescued by a man on an inflatable lobster. A coast guard spokesman commented, "This sort of thing is all too common". (The Times)
------------------------------------------------------------------------
5) At the height of the gale, the harbourmaster radioed a coastguard and asked him to estimate the wind speed. He replied he was sorry, but he didn't have a gauge. However, if it was any help, the wind had just blown his Land Rover off the cliff. (Aberdeen Evening Express)
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6) Mrs. Irene Graham of Thorpe Avenue, Boscombe, delighted the audience with her reminiscence of the German prisoner of war who was sent each week to do her garden. He was repatriated at the end of 1945, she recalled.
"He'd always seemed a nice friendly chap, but when the crocuses came up in the middle of our lawn in February 1946, they spelt out 'Heil Hitler.' "(Bournemouth Evening Echo)
1) Commenting on a complaint from a Mr. Arthur Purdey about a large gas bill, a spokesman for North West Gas said, "We agree it was rather high for the time of year. It's possible Mr. Purdey has been charged for the gas used up during the explosion that destroyed his house."
(The Daily Telegraph)
------------------------------------------------------------------------
2) Police reveal that a woman arrested for shoplifting had a whole salami in her underwear. When asked why, she said it was because she was missing her Italian boyfriend. (The Manchester Evening News)
------------------------------------------------------------------------
3) Irish police are being handicapped in a search for a stolen van, because they cannot issue a description. It's a Special Branch vehicle and they don't want the public to know what it looks like. (The Guardian)
------------------------------------------------------------------------
4) A young girl who was blown out to sea on a set of inflatable teeth was rescued by a man on an inflatable lobster. A coast guard spokesman commented, "This sort of thing is all too common". (The Times)
------------------------------------------------------------------------
5) At the height of the gale, the harbourmaster radioed a coastguard and asked him to estimate the wind speed. He replied he was sorry, but he didn't have a gauge. However, if it was any help, the wind had just blown his Land Rover off the cliff. (Aberdeen Evening Express)
------------------------------------------------------------------------
6) Mrs. Irene Graham of Thorpe Avenue, Boscombe, delighted the audience with her reminiscence of the German prisoner of war who was sent each week to do her garden. He was repatriated at the end of 1945, she recalled.
"He'd always seemed a nice friendly chap, but when the crocuses came up in the middle of our lawn in February 1946, they spelt out 'Heil Hitler.' "(Bournemouth Evening Echo)
Sly old fox enters the henhouse
Seems like yesterday rumours (reported here) were in fact true! Rupert Murdoch has opened talks with Yahoo in an attempt to thwart Microsoft and grab more of the web for himself.
The proposal is a little complicated to say the least and is all about combining Yahoo and News Corp digital assets that include MySpace and Fox Interactive and lots of other consumer facing digital stuff. Murdoch would end up being a significant shareholder in the combined Co and would - surprise, surprise - have control.
We wondered last week about the practical difficulties inherent in the Microsoft/Yahoo tie-up but they are tiny in comparison to this proposal.
Media and technology - we love it
The proposal is a little complicated to say the least and is all about combining Yahoo and News Corp digital assets that include MySpace and Fox Interactive and lots of other consumer facing digital stuff. Murdoch would end up being a significant shareholder in the combined Co and would - surprise, surprise - have control.
We wondered last week about the practical difficulties inherent in the Microsoft/Yahoo tie-up but they are tiny in comparison to this proposal.
Media and technology - we love it
Wednesday, 13 February 2008
News Corp in the Yahoo race
Despite lots of denials it seems that News Corp remains a possible partner for Yahoo.
Have a read of this Techcrunch piece.
Is Murdoch serious? or is he pushing up the price
Have a read of this Techcrunch piece.
Is Murdoch serious? or is he pushing up the price
Monday, 4 February 2008
Google looks to block Yahoo bid
No great surprise that Google is going all out to ruin the Microsoft/Yahoo party. They dont seem to be the kind of guys that would sit idly by and watch the number 2 and 3 in the search market join forces.
Its rumoured that Google have even offered Yahoo its help in defending themselves from Microsoft - wow whats Jerry Yang to do?
We think its little rich however for Google to bleat on about the deal harming consumer choice and services. Yeah yeah.
Have a read of NY Times piece to see what they moves they are rumoured to be making to rain on Microsoft parade!
What ever happens it sure is exciting........................
Its rumoured that Google have even offered Yahoo its help in defending themselves from Microsoft - wow whats Jerry Yang to do?
We think its little rich however for Google to bleat on about the deal harming consumer choice and services. Yeah yeah.
Have a read of NY Times piece to see what they moves they are rumoured to be making to rain on Microsoft parade!
What ever happens it sure is exciting........................
Friday, 1 February 2008
its all getting really really interesting
Microsoft offers $44.6bn for Yahoo
Feb 01, 2008 12:13:00 GMT
Microsoft offered to buy search engine group Yahoo for $44.6bn, or $31 a share, as the software giant seeks to catch up with arch-rival Google.
We can see the strategic sense in this deal for Microsoft as they need to expand their armory to battle Google.
But Yahoo are a basket case.
we cant help thinking that by the time Microsoft have gotten them fit for purpose Google will be even further ahead and Microsoft will be $40bn+ down!
Tempting but we say dont do it!
We can see the strategic sense in this deal for Microsoft as they need to expand their armory to battle Google.
But Yahoo are a basket case.
we cant help thinking that by the time Microsoft have gotten them fit for purpose Google will be even further ahead and Microsoft will be $40bn+ down!
Tempting but we say dont do it!
Wednesday, 30 January 2008
This seems like joined up thinking
The News of the World's new glossy magazine, Fabulous, will be linked to an online shop when it launches this weekend.
Readers will be able to "click and buy" frocks and other items from more than 450 brands featured in Fabulous's celebrity fashion shoots through an interactive shopping function on the fabulousmag.co.uk site.
Friday, 18 January 2008
Internet sales boom in 2007
Check out the latest internet retail figures. They are very exciting. Its clear from these numbers that 2007 was the year that online retailing came of age. Not surprising really as we have been tracking real consumer adoption throughout the year but huge and rapid growth nevertheless.
There is no doubt that the whole online shopping deal has improved significantly over last 18 months. Retail sites are far better, payment is secure, goods arrive and on time and real value is being passed on the consumer. why bother with the overcrowed high street? Point is made by the 4.4m people who shopped online on Christmas day!
The figures:
There is no doubt that the whole online shopping deal has improved significantly over last 18 months. Retail sites are far better, payment is secure, goods arrive and on time and real value is being passed on the consumer. why bother with the overcrowed high street? Point is made by the 4.4m people who shopped online on Christmas day!
The figures:
- Internet sales in 2007 were £46.6bn, up from the £30.2bn in 2006.
- 15pc of UK consumers making their retail purchases online.
- Nearly 1 pound in every seven spent on consumer goods in 2007 was spent over the internet.
- A jump of more than 50pc since 2006.
Survey conducted by Capgemini and the IMRG, the online retailers' industry body.
Wednesday, 16 January 2008
Quote of the day
If everything seems under control, you're not going fast enough"
Mario Andretti (racing driver extraordinaire)
Mario Andretti (racing driver extraordinaire)
Tuesday, 15 January 2008
UK is a nation of social networking obsessives
Our thanks to Brand Republic for this insight. Its interesting in that it compares UK with EU neighbours.....
LONDON - UK adults spend more time on social networking sites such as Facebook and MySpace than their European neighbours, with as many as one in four adults saying they regularly log on to the sites, according to an Ofcom report.
The UK adults who visit the sites spend an average of 5.3 hours each month on them and return to them an average of 23 times a month.
The analysis is matched by the investment made by advertisers in the UK, where companies spend more money per person on internet advertising than any other country. The UK currently spends £33 per person, twice as much as France, Germany and Italy combined.
The finding is one of many that shows the UK is ahead of its European counterparts in terms of the latest digital trends.
The report compares the UK with eight European countries as well as Japan, Canada and the US. It was carried out to help determine future policies, provide information to the UK advertising and media industry, and assess where the UK market stands on a global scale.
Ofcom has also researched how internet audiences around the world are broken down by gender. Across all the countries studied the divide is 52% women to 48% men.
In the UK, the split is 50-50, except in the 18-34 age group, where far more women are surfing the net.
Ofcom has suggested this pattern is related to the increasing popularity of social networking sites.
Other findings revealed that Europeans watch less TV than the Americans and Japanese. In the UK, the average is 25.2 hours a week, or 3.5 hours a day. That is less than Italy and Spain but more than Germany and Ireland.
People in the UK also listen to more radio than in any of the other eleven countries surveyed, while the medium is least popular in Japan.
Ed Richards, Ofcom chief executive said: "The report shows that convergence, bundling and the move to digital communications is a powerful global phenomenon.
"It's important to understand international comparisons so Ofcom can develop better policies to serve the interests of consumers and citizens in the UK."
LONDON - UK adults spend more time on social networking sites such as Facebook and MySpace than their European neighbours, with as many as one in four adults saying they regularly log on to the sites, according to an Ofcom report.
The UK adults who visit the sites spend an average of 5.3 hours each month on them and return to them an average of 23 times a month.
The analysis is matched by the investment made by advertisers in the UK, where companies spend more money per person on internet advertising than any other country. The UK currently spends £33 per person, twice as much as France, Germany and Italy combined.
The finding is one of many that shows the UK is ahead of its European counterparts in terms of the latest digital trends.
The report compares the UK with eight European countries as well as Japan, Canada and the US. It was carried out to help determine future policies, provide information to the UK advertising and media industry, and assess where the UK market stands on a global scale.
Ofcom has also researched how internet audiences around the world are broken down by gender. Across all the countries studied the divide is 52% women to 48% men.
In the UK, the split is 50-50, except in the 18-34 age group, where far more women are surfing the net.
Ofcom has suggested this pattern is related to the increasing popularity of social networking sites.
Other findings revealed that Europeans watch less TV than the Americans and Japanese. In the UK, the average is 25.2 hours a week, or 3.5 hours a day. That is less than Italy and Spain but more than Germany and Ireland.
People in the UK also listen to more radio than in any of the other eleven countries surveyed, while the medium is least popular in Japan.
Ed Richards, Ofcom chief executive said: "The report shows that convergence, bundling and the move to digital communications is a powerful global phenomenon.
"It's important to understand international comparisons so Ofcom can develop better policies to serve the interests of consumers and citizens in the UK."
Thursday, 10 January 2008
Only in Germany?
BERLIN (Reuters) - The owner of a small German computer company has fired three non-smoking workers because they were threatening to disturb the peace after they requested a smoke-free environment.
The manager of the 10-person IT company in Buesum, named Thomas J., told the Hamburger Morgenpost newspaper he had fired the trio because their non-smoking was causing disruptions.
Germany introduced non-smoking rules in pubs and restaurants on January 1, but Germans working in small offices are still allowed to smoke.
"I can't be bothered with trouble-makers," Thomas was quoted saying. "We're on the phone all the time and it's just easier to work while smoking. Everyone picks on smokers these days. It's time for revenge. I'm only going to hire smokers from now on."
How Apple changed the mobile sector for ever
Lots and lots has been written about the Apple iPhone. It's been critical and commercial success. An estimated 3 million units have been shipped so far and Apple's share price is at an all time high. Wired Magazine has just published a piece (rather grandly) entitled The Untold Story: How the iPhone blew up the wireless industry. Its well worth a read.
For those of you that don't have time (it is quite long) the piece basically says that Apple with its iPhone (which took 3 years and $150 million to develop) has forever changed the mobile-phone business, wresting power from carriers and giving it to handset manufacturers, developers, and to you and I the consumer.
On behalf of mobile dependant consumers everywhere we say thank you Apple
For those of you that don't have time (it is quite long) the piece basically says that Apple with its iPhone (which took 3 years and $150 million to develop) has forever changed the mobile-phone business, wresting power from carriers and giving it to handset manufacturers, developers, and to you and I the consumer.
On behalf of mobile dependant consumers everywhere we say thank you Apple
Tuesday, 8 January 2008
Xmas comes but once a year, but how often do your customers interact with you?
This weekend saw M&S reporting their first sales decline in over 2 years, as Xmas spending was hit by "consumer confidence". The word on the high street seems to be "concern", as consumers keep more of their money in their pocket. The bricks and mortar situation is hindered by not being able to successfully translate a database full of customer names into a real time sales driver on the high streets in the run up to Xmas.
Online sales over Xmas are reported to have continued the growth seen last year. With an avalanche of e-money flying through the e-tills, it will be interesting to see how marketers and CRM experts within the online retail giants interact with their customers over the next few months.
I'm waiting with interest to see how my online favourites communicate with me.
Xmas 2006, I bought almost all my presents online. This year however I did very little shopping online. Smart CRM systems would pick that up, tag me as a "shopped last year but didn't return despite our enticing pre-Xmas emails" and treat me differently. Maybe establish why I didn't spend my money this time round. Maybe just make me an offer I can't refuse to entice me back to the site and transact again.
I fear however that I'll just be treated like everyone else, and receive the usual mass e-mail. I live in hope that someone will treat me like an individual, but I'm not holding my breath. Come on businesses, gain insight from me as a customer, translate it into a compelling offer which will motivate my return to the fold, and then watch me spend money with you again. It's almost too easy......
Online sales over Xmas are reported to have continued the growth seen last year. With an avalanche of e-money flying through the e-tills, it will be interesting to see how marketers and CRM experts within the online retail giants interact with their customers over the next few months.
I'm waiting with interest to see how my online favourites communicate with me.
Xmas 2006, I bought almost all my presents online. This year however I did very little shopping online. Smart CRM systems would pick that up, tag me as a "shopped last year but didn't return despite our enticing pre-Xmas emails" and treat me differently. Maybe establish why I didn't spend my money this time round. Maybe just make me an offer I can't refuse to entice me back to the site and transact again.
I fear however that I'll just be treated like everyone else, and receive the usual mass e-mail. I live in hope that someone will treat me like an individual, but I'm not holding my breath. Come on businesses, gain insight from me as a customer, translate it into a compelling offer which will motivate my return to the fold, and then watch me spend money with you again. It's almost too easy......
Saturday, 5 January 2008
08 - its all about mobile stupid
Welcome to 08 from all of us at Market Evolution.
Its sure to be an exciting year.
Last year we correctly predicted 07 was the year social networking took off and firmly established itself. We predict that this year will be dominated by mobile.
Heres a stat to kick us off:
The market for text messages alone last year was over $60billion globally, more than 4 times the size of the entire music industry.
As usual we will be monitoring consumers mobile behaviour and you will be the first to know whats out there and happening
Happy New Year
Its sure to be an exciting year.
Last year we correctly predicted 07 was the year social networking took off and firmly established itself. We predict that this year will be dominated by mobile.
Heres a stat to kick us off:
The market for text messages alone last year was over $60billion globally, more than 4 times the size of the entire music industry.
As usual we will be monitoring consumers mobile behaviour and you will be the first to know whats out there and happening
Happy New Year
Thursday, 20 December 2007
Last Post 07 - inspirational thoughts
Entrepreneurship is living a few years of your life like most people won't, so that you can spend the rest of your life like most people can't - Anonymous
I have not failed. I've just found 10,000 ways that won't work - Thomas Edison
Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory - Mahatma Gandhi
Once you say you're going to settle for second, that's what happens to you in life - John F. Kennedy
In preparing for battle I have always found that plans are useless, but planning is indispensable - Dwight D. Eisenhower
Some people dream of great accomplishments, while others stay awake and do them – Anonymous
Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover - Mark Twain
There is a tide in the affairs of men
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are now afloat;
And we must take the current when it serves,
Or lose the ventures before us - William Shakespeare
Genius is 1% inspiration, and 99% perspiration - Thomas Edison
If you kick it around enough, it starts to look like a ball - Skip Shuda
Base your decisions on where you are going not on where you are. - James Arthur Ray
Those who say something can not be done should step aside for those doing it - Anonymous
HAPPY CHRISTMAS and NEW YEAR
I have not failed. I've just found 10,000 ways that won't work - Thomas Edison
Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory - Mahatma Gandhi
Once you say you're going to settle for second, that's what happens to you in life - John F. Kennedy
In preparing for battle I have always found that plans are useless, but planning is indispensable - Dwight D. Eisenhower
Some people dream of great accomplishments, while others stay awake and do them – Anonymous
Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover - Mark Twain
There is a tide in the affairs of men
Which, taken at the flood, leads on to fortune;
Omitted, all the voyage of their life
Is bound in shallows and in miseries.
On such a full sea are now afloat;
And we must take the current when it serves,
Or lose the ventures before us - William Shakespeare
Genius is 1% inspiration, and 99% perspiration - Thomas Edison
If you kick it around enough, it starts to look like a ball - Skip Shuda
Base your decisions on where you are going not on where you are. - James Arthur Ray
Those who say something can not be done should step aside for those doing it - Anonymous
HAPPY CHRISTMAS and NEW YEAR
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