Wednesday, May 4, 2011
Yes Social Media Can Help Your Company
Monday, April 4, 2011
Web 3.0
Friday, February 4, 2011
The War Against Hemp Rages On....
The Hemp Industries Association (HIA) only recently came to know about Mostafa Soliman, a U.S. resident and owner of Healthy Harvest, who only narrowly made it out of his prison cell at the last minute because protesters had attacked and set the jail on fire. Now the organization is launching a campaign to get him out of Egypt, but as one might guess, the U.S. Embassy is a bit swamped right now and the fact that Soliman was in jail on drug charges doesn't make his quest to get out any easier.
"This is a tragic mistake that could be solved with a simple drug test. Mr. Soliman is being falsely accused of importing 'hash oil' when it fact it was healthy hemp food," said Eric Steenstra, Executive Director of the HIA. "The HIA and Votehemp.com are launching a campaign to free Mostafa Soliman that will hopefully jump-start action at the U.S. State Department. We recognize that the unrest in Egypt will make it more difficult for U.S. authorities to act, but this terrible mistake by Egyptian authorities was made well before the recent protests began and in many ways symbolizes the corruption the protestors are resisting."
Friday, January 21, 2011
The dram in a can: Scottish whisky the way South Americans like it...
By Mark Howarth
Last updated at 9:12 AM on 17th January 2011
A Panama-based company believes outdoor drinkers would prefer to crack open a tin rather than lug round a bottle of whisky
It is a sight that will have whisky connoisseurs spluttering into their drink – a dram in a can.
A Panama-based company believes outdoor drinkers would prefer to crack open a tin rather than lug round a bottle of their favorite tipple.
Now bosses at Scottish Spirits – which retains an office in Glasgow – is testing out the novelty on its Caribbean and South American markets.
But last night the Scotch Whisky Association said it would try to ban the cans for breaching international labeling rules.
A spokesman for the body said: ‘We are concerned that consumers may be confused whether or not the product is real Scotch and we will be investigating the matter further.’
Scottish Spirits launched the tins last week, the first time straight whisky has been sold in a can.
Chief executive Manish Panshal said: ‘We are really thrilled with the idea – it’s going to be a part of every lifestyle and occasion.
‘The can is the perfect size to be shared between three people who can mix it with other things like cola.
‘It’s lightweight and portable and entirely recyclable, which is good news. It will be one of the hot picks for any outdoor activities.’
World-renowned expert Jim Murray – author of The Whisky Bible – admitted he was intrigued.
He said: ‘Obviously, this is not the traditional way to sell a dram but I’ve seen it on draft in Chicago and out of plastic sachets in Uganda, so it might catch on somewhere. It will certainly be cheaper than buying a big bottle and Scotch spends some of its life in metal containers during the distillation process anyway.
‘But you probably wouldn’t want it in aluminum cans for too long, because it would affect the taste.
‘And my biggest problem with the idea is that there’s no way of knowing what it is you’re buying – and this isn’t proper Scotch.
‘I taste around 3,000 types a year and I can honestly say I have never come across these brands.’
He added: ‘I can’t see it taking off here because a can would cheapen a product that Scots are rightly proud of. A tin of whisky could never make your heart skip a beat like a fine Scotch.’
Whisky in its more usual container. Scottish Spirits launched their tins last week, the first time straight whisky has been sold in a can
Scottish Spirits – which is canning its own-brand tipple and a blend called Sir Edwin’s – was censured by the Advertising Standards Agency last September.
The watchdog ruled that its advertisements wrongly suggested it was a home-grown company selling Scotch.
A rival company made a complaint after spotting Scottish Spirits’ ads in a trade magazine.
Scotch whisky exports are big business, with global sales three times those of its US rivals.
But when it comes to the home front, the picture is less rosy for the spirit, whatever container it comes in. UK whisky sales slipped by 11 per cent between 2005 and 2009.
There is little respite in sight. Sales are predicted to stay static at 6.5million cases until 2014, data from industry analyst International Wine and Spirits Research reveals.
The UK is the third biggest market for Scotch, after the US and France.
But industry insiders claim there is no cause for alarm.
Paul McLaughlin of food export quango Scotland Food and Drink said: ‘I don’t think this is a cause for concern because the key focus is on exports. The home market is not the be-all and end-all.’
Tuesday, January 18, 2011
Digital expertise: Is your agency faking it?
According to Forrester, 78 percent of clients don't believe their lead agency does digital well. And this for good reason: Given the state of the economy, it's been increasingly hard for agencies to turn away any opportunity to earn some revenue. And as client interest and budgets have increasingly turned towards digital, the response within traditional agencies has been to tell their clients, "Yeah, we do that," and then try to figure it out. It's no surprise that the results are often dissatisfying. Agencies discover that digital isn't just another medium like television. And clients discover that "Yeah, we do that," means their key digital tasks are being outsourced, mismanaged, or improperly staffed.
Is your agency faking it? Next time you ask about digital capabilities and your agency's response is "Yeah, we do that," here are few questions that should separate the true digirati from the poseurs.
Which panels did you vote for?
The digital world thrives on conferences, where really smart, interesting people show each other really cool things. If no one in the room has been to SXSW, OMMA, f8 (or knows what those acronyms stand for), they're certainly voting with their feet about their commitment to embracing the new world.
Who leads the charge?
Does the agency have a CTO? No, not an IT guy. A CTO. As it becomes harder to separate creativity and technology, does the agency's ECD have a peer on the technology side?
Where's the beef?
Are the agency's developers in-house, or do they outsource? Maintaining an in-house development capability is expensive and requires learning how to manage people who are completely different from typical ad folks. It's also essential to delivering high quality digital work on time and on budget.
When agencies outsource coding and development, they lose control of the process. They also lose the ability to keep refining work and making it better. It's a daunting proposition to build a new department where the average salary is in the six figures, but it needs to be done, and it needs to be done with a department. An agency that can't develop across multiple commercial and open-source environments (PHP, Java, .net, etc.) can't truly provide complete solutions for its clients.
Digital-only clients/projects
Does your agency have any digital-only clients or projects, or is all of its digital work coming from long-standing clients that simply don't know better? The RFP process for a significant web development engagement does a pretty good job of identifying agencies that have genuine digital chops. Make sure you know what kind of enterprise level digital development your agency has done, and whether other clients trust them with their online business.
Who advocates for the consumer?
We no longer think of account planning as revolutionary; it makes perfect sense that the consumer should be the primary consideration in the development of compelling, effective advertising. Account planning ensures that advertising constantly achieves maximum relevance. Well, user experience design achieves the same thing online, keeping the usability and functionality of online experiences front and center. If your agency doesn't have a user experience practice, you're unlikely to be creating optimal consumer experiences, online or off.
Analytics
Every agency will tell you they're "into analytics," in the same way that they assure you they're digital. But what does your agency measure to optimize campaigns and to determine success? Hopefully the answer is more than click-through rates and web hits. Because every client's business situation is unique, each should have its own dashboard that the agency uses to measure success. Analytics software is getting increasingly sophisticated, allowing the integration of data from multiple sources -- like online display advertising, social media, mobile and website behavior -- to paint a comprehensive picture of how your customer is behaving online, and your marketing impacts that. Once again, this requires an investment in tools and people. But it's a better investment than really expensive desk chairs.
Unfortunately, most clients have had at least one bad experience with digital marketing or web development, often at the hands of their current agency. Trust is the most valuable commodity in any client-agency relationship. And faking digital expertise is a surefire way to erode that trust. As clients become increasingly smart about digital, agencies are going to have to stop creating digital window dressing and realize that becoming truly digital requires changes and investments that are time consuming and expensive. But they are not nearly as expensive as being caught faking it.
Monday, January 17, 2011
Be Careful Where you TwitPic....
http://abclocal.go.com/wabc/video?id=7621105
Friday, January 14, 2011
What, a Jewish Groupon?
Discount site aimed specifically at Jewish consumers.
Jan 14, 2011
A pair of New York-based entrepreneurs have launched the Jewish equivalent of Groupon.
Allen Ganz and Jodi Samuels, co-founders of the Jewish-mom-aimed site MetroImma, have rolled out jdeal, a new discount aggregation site/community aimed specifically at Jewish consumers.
Jdeal, which launched quietly just before Hanukkah, features discounts from New York merchants selling everything from Kosher food to restaurants and hotel deals to entertainment packages designed to appeal to Jewish users, such as a comedy club (Stand Up|NY) that offers Kosher wine and dessert.
According to Samuels, the thinking was the company would need 3,000 to 5,000 members to get merchants interested. Thus, to get jdeal off the ground her team tapped the MetroImma audience as well as a nonprofit networking group in which Samuels was involved.
It’s early, but jdeal has seen its memberships swell from about 1,000 users to 5,000 in just six weeks. The company has attracted merchants ranging from butchers and dry cleaners to upscale realtors and yoga studios. “We have a full month of deals already set up going forward,” said Samuels.
Like Groupon, jdeal relies on its members to spread its potential deals across the Web—usually through social media—until they reach a preset number of committed buyers. Once a deal reaches its tipping point, Jdeal shares any associated revenue with its merchant partners.
The plan going forward is to introduce versions of jdeal in seven other cities in the U.S. and Canada over the next year to 18 months. The company has also just launched an affiliate program, through which various Web publishers will get incentives to promote jdeal offers.
But why does the Jewish community need its own version of Groupon? “Groupon does not necessarily offer deals that are relevant to Kosher consumers, for example,” said Samuels. “And other Jewish businesses don’t necessarily want to offer 50 percent off discounts to people that are not likely to become repeat customers.”
Wednesday, January 12, 2011
Mobile is HOT for 2011...Mmmm, maybe not...
Khalilian and his company, The Dolce Group Worldwide, LLC, are the latest robocall scam to have its plug pulled under the FTC's ongoing crackdown on deceptive prerecorded telemarketing calls.
The robocall scheme, which did business under the name My Car Solutions, bilked consumers into paying thousands of dollars and led them to believe the company was affiliated with auto dealers and manufacturers and authorized to sell extended auto warranties.
Khalilian is a former Paris Hilton business partner, and his Miami-based business received a failing grade from the Better Business Bureau.
Khalilian is also no stranger to the FTC, thanks to a 2001 settlement that banned him from all travel-related telemarketing and forced him to compensate consumers $185,000 for promoting deceptive holiday plans. In June 2010 the FTC filed a new complaint against Khalilian, alleging that since 2009, he and his company marketed "extended" auto warranties by carpet-bombing consumers with pre-recorded robocalls.
These robocalls warned people their car warranties were about to expire and advised them to speak with a representative. Consumers were then transferred to telemarketers who said they were from the "service contract department," and they would "verify" information about the consumers' cars and "confirm" other information, including their zip code.
The telemarketers then transferred consumers to a "senior specialist" who also made false statements to elicit information from the unsuspecting victims. Only after consumers bought the supposed warranties did they discover that:
- My Car Solutions wasn't affiliated with their car manufacturer.
- The contract didn't cover "the entire engine."
- The contract didn't provide "bumper-to-bumper" coverage.
- The contract excluded certain "pre-existing conditions."
The court order settling the FTC's charges bans Khalilian and The Dolce Group from telemarketing or helping others to telemarket, and prohibits them from making any misrepresentations or omissions when selling any goods or services.
The order includes a penalty of more than $4.2 million, the amount Khalilian and The Dolce Group fleeced from consumers.
Under the order, Khalilian will satisfy part of the judgment by turning over corporate and personal property totaling approximately $50,000. The FTC is authorized to take action to collect the remainder of the outstanding judgment from the defendants. The settlement order also contains provisions to ensure the defendants comply with its terms.
Khalilian, a neon-green Lamborghini-driving nightclub owner, has had more unsavory brushes with the law as well, including three arrests for sexual misconduct or rape, the Orlando Sentinel reported in 2007. According to the Sentinel, the Iranian-born Khalilian also claimed diplomatic immunity.
"I'm a diplomat. You can't arrest me. I own Club Paris," a police report quoted Khalilian as telling Sgt. Rhonda Huckelbery, who was investigating a report by a passer-by that Khalilian tried to rape a woman outside the nightclub on Nov. 18, 2005. "You work for me."
The "Club Paris" in question was a Khalilian-owned nightclub that promised regular appearances by jet-setting party girl Paris Hilton, who he reportedly paid seven-figures to show up twice a month. But the club closed after three years and only sporadic appearances by Hilton.
Tuesday, January 11, 2011
MySpace now means MyUnemployment....
MySpace CEO confirms heavy layoffs
MySpace CEO Mike Jones today announced a "significant organizational restructuring that will result in a 47 percent staff reduction across all divisions globally and impact about 500 employees," confirming many rumors that the News Corp.-owned social network would be going through heavy layoffs before possibly seeking a new buyer.
Formerly a social-networking sensation, MySpace lost more and more ground to Facebook over the past few years until it finally underwent a massive redesign that focuses on pop culture media-sharing for young users rather than attempting to be a universally appealing social network.
"Today's tough but necessary changes were taken in order to provide the company with a clear path for sustained growth and profitability," Jones said of the recently redesigned MySpace. "These changes were purely driven by issues related to our legacy business, and in no way reflect the performance of the new product."
The statement had some bits of slightly sunnier news: "Since the worldwide rollout of the new MySpace, there have been more than 3.3 million new profiles created," Jones' statement announced. (OK, but does it offset users who continue to desert the site?) "We have already seen a rise of four percent in mobile users just between November to December, now totaling over 22 million."
Jones also announced that there will be some partnerships for MySpace in the U.K., Australia, and Germany to handle advertising sales and content, which hints that layoffs overseas may be particularly heavy. He said that the company "will retain a core, dedicated international team to work with partners in order to ensure users, content partners and advertisers continue to be served."
There was no mention of News Corp.'s rumored plans to shop MySpace to other buyers.
Wednesday, December 22, 2010
Hate Flying for the Holidays? So does the TSA....
NEW YORK (CNNMoney.com) -- Getting a pat-down at airport security may be uncomfortable for holiday travelers. But life for the blue-shirted officers of the Transportation Security Administration isn't much fun either.
"We just want the passengers to understand: Look, we're not perverts or anything like that; we just have to search everything," said Rick McCoy, the senior TSA officer at O'Hare International Airport in Chicago. "We're not here to be abused. We're just here to help you get on your flight and go about your business."
McCoy has been a screener for the TSA for nearly nine years. That means he's been with the federal agency since its inception in the wake of the Sept. 11, 2001 terrorist attacks.
"The work life here is horrible," said McCoy, president of his local union representing officers. Turnover is like a "revolving door" and health benefits are "atrocious," he said. Morale is low and so is the pay, he added.
Officers typically start at $29,000, but that's only if they're working full-time. New officers often start as part-time workers, said McCoy, at about $14 per hour. He said that part-timers, who make up 37% of the screener workforce at O'Hare, typically have to work four-hour days for at least three years before they're considered for full-time.
"I can't sugar coat this to these guys," said McCoy, who described many of the new employees as young students. "I tell them, 'Whatever you do, don't leave school.'"
McCoy says he makes about $42,000 a year in base pay, which is near the top of the officer pay scale. He said he relies primarily on overtime to support his family, especially since he pays nearly $500 a month for the TSA's healthcare plan.
The relatively low pay, particularly with the new part-timers, might be contributing to problems with the professionalism of some of the officers, said Anne Banas, executive editor at www.smartertravel.com.
"They're not paid a very high wage and they're not necessarily trained in customer service," said Banas. She said that some of the officers she's encountered are "great and gracious," while others are "power-tripping and controlling," with a "not my problem" attitude.
The best way to deal with stressed-out screeners, said Banas, is to "be as polite as you can. Don't make demands. Try to keep a cool head if you get pulled aside for pat downs."
Things have gotten extra-tough for the officers lately, since the TSA initiated its controversial pat-down procedure ahead of the Thanksgiving travel season. This new method of screening passengers is meant to detect explosives hidden in clothing, like the underwear bomb carried by a suspected terrorist on a Christmas Day flight last year.
Pats downs are implemented when passengers choose not to go through the advanced-imaging body scanners, or when they set off the scanners or metal detectors.
The pat downs result in some embarrassing contact between officers and passengers who consider the procedure to be too intrusive. Airline security blogger Steven Frischling has been posting anonymous complaints from officers on his blog, www.flyingwithfish.com, including this one:
"It is not comfortable to come to work knowing full well that my hands will be feeling another man's private parts, their butt, their inner thigh."
Frischling said that screeners tell him they're "demeaned" by the pat-down procedure, which they describe as "ineffective."
But in a recent statement, TSA administrator John Pistole stood by the new procedure as an effective way of weeding out terrorists.
"We cannot forget that less than one year ago a suicide bomber with explosives in his underwear tried to bring down a plane over Detroit," said Pistole. "The terrorists allegedly behind the thwarted cargo attempt last month are out there bragging about how they will strike again."
"We all wish we lived in a world where security procedures at airports weren't necessary but that just isn't the case," he said.
The pat-down procedure resulted in about a half-dozen incidents at O'Hare where travelers hit or pushed officers, said McCoy. He said these events don't always result in arrest, which further undermines morale.
"We're reminding people that these agents didn't create the policy," said John Gage, president of the American Federation of Government Employees, a union representing 600,000 federal workers. "Taking out your frustration on them is inappropriate."
Gage and McCoy said that 12,000 of the 50,000 officers are currently union members, but they don't have the power of collective bargaining. They said that conditions might eventually improve for TSA officers if a majority of them vote to unionize with collective bargaining in the coming months.
For now, despite the poor morale and work conditions, McCoy said the screeners realize their jobs are important and the stakes for failure are high.
"If something happened to a plane coming from any one of these TSA airports, there would be a lot of distraught people," he saidTuesday, December 21, 2010
How Social Media Boutiques are Winning Deals Over Traditional Digital Agencies
Research Findings: While Traditional agencies clinch up to $162,000 per client from beginner, experimental and formalized companies, yet when corporations become advanced, boutiques earn an average of $238,000 per brand. Expect traditional agencies to glean new skills or start M&A, and expect boutiques who have vision to stand the test of time.
Social Media Boutiques are Emerging to Threaten Traditional Agencies
It’s been a long time coming since we’ve seen major disruptive in the agency space. 10-15 years ago we saw the rise of internet agencies, digital agencies, and web marketing boutiques, and then a fast consolidation during the downturn. Now, we’re seeing the rise of social media boutiques, and we have telling data that shows they are threatening the budgets of traditional digital agencies in a particular type of client. This is a massively growing space, at Altimeter we were tracking the many agencies on a wiki, but stopped updating it due to overflow of submissions.
Above: 2011 Budgets: Social Media Boutiques Overtake Traditional Agencies Among Advanced Buyers
Companies that are just getting started and are formalized naturally lean on their traditional agency partners
In the novice through mature level brands, the traditional agencies are the first go-to. Corporations rely on them, as they have existing relationships and have purchase orders set in place. Yet we know (see engagement DB and our Facebook marketing research) that most corporations are not even engaging with their customers –they are doing it wrong. They often rely on traditional agencies for education (often a loss leader) research and strategy and implementation.
After Traditional Agencies Have Laid Groundwork Boutiques Swoop In, clinching revenues
Once corporations realize that social business is not about short term campaigns, they give $ to boutique agencies. The data from the buyers indicates there’s a significant jump in spending on boutique social media firms when the buyer is advanced and sophicaiated in social business. They know their traditional agency lacks flexibility or doesn’t have a business model for social engagement and relies on them. This is a great opportunity for the boutique agencies, who let the traditional agency do education, set plans in place, experience a few failures letting boutiques swoop in.
In my LeWeb keynote, I stand by my convictions not to hire social media “Ninjas, Gurus, and Samurai” and received audience applause. Instead, I offered, corporations should hire business program managers, in other words, people that put business goals first –tools and technologies second. This also applies in selecting your boutique agency
Why Social Media Boutiques Differentiate Successfully from
Social Media Boutiques are taking the budgets away from Traditional Agencies as corporations become mature. Corporations know they need these specialists for the following reason
- Offer a specialized skillset in new media and social business that traditional agencies may not offer
- They can do deep change management within the corporations –traditional agencies have a reputation for layering social media on top of existing campaigns.
- Are not shot term ‘campaign’ focused, instead are more long term focused such as building a community with customers for the long term.
- Are ready to roll up sleeves to assist with deeper customer engagement –not just deploy traditional advertising (one of the top spends in social business)
- Are more agile within smaller teams and can quickly maneuver as the technology space changes over time.
- Fundamentally are geared to measure differently around engagement –not just top line and bottom line measurements
Yet social media boutiques are limited by their size –and must partner
Despite their strengths, Social Meida Boutiques have weakenesses. They are often unable to scale as engagement is difficult to roll out to all product units and around the globe, are quickly finding that traditional agencies are catching up by training staff (see how Edelman has an internal black belt education program) and often lack the ability to achieve an integrated marketing approach
Industry Analyst Perspective: What the Future Beholds
- Traditional agencies will adopt these skills, or be forced to content with options.
- Expect the traditional agencies to generate revenues outside of engagement in brand monitoring, education, measurement, and leading an integrated approach
- Traditional incumbants will acquire these young startups. Expect this data to be cascaded to the upper echelons of traditional corporations who know they need to quickly get a strategy on M&A activity (see today’s Dachis news)
- A handful of these agencies will grow into the next digital agency. Not wanting to sell and enjoy the fruits of their hardwork, many of these agencies will stay
- Brands will rely on traditional for education –boutiques often can’t afford to this unless it’s a loss leader for a sale.
- While specialization and competition is good, buyers will demand that their agencies work together. The previous HR block marketing team rallied 5 agencies together to work on a single social media effort, for a holistic customer experience
- We’re already seeing a few traditional agencies like Edelman (in the lead, in my opinion with Rubel, Armano, Carfi, Brito), Oglivy (Bell, Rohit) build strong internal teams on social business using blogs, thought leadership, and hire social media practitioners.
If you found this helpful, please forward on to your agency partners, and internal teams. Or if you’re an agency and want to share your perspective, I look forward to your comments below.
Thursday, December 16, 2010
Twitter Tweets Big With $200 Million in Funding
AllThingsD.com reported details of the round, which will also bring former DoubleClick CEO David Rosenblatt and Flipboard CEO Mike McCue to its board of directors. (Twitter has confirmed the funding round and new board members.)
The funding round comes after Twitter reportedly spurned acquisition feelers from Google. It is a huge bet for investors, led by Kleiner Perkins, that Twitter can grow to become a tech platform alongside Google, Facebook, Apple and others. With its 175 million registered users posting short updates, Twitter could theoretically build “ the communications graph” to operate alongside Facebook’s social-connectivity graph.
Rosenblatt, who served as president of Google’s display ad business, will bring to Twitter his deep knowledge of the online ad business. He’s been a director at other companies, including GSI Commerce, where he joined the board last month.
The question is whether Twitter can build a big enough ad business to justify its high-flying valuation. To date, it’s run very few ads, choosing instead to create ad products in-line with how its service is used. Rather than display ads, Twitter is offering promoted tweets, trends and accounts.
Dick Costolo became CEO of the company in October with an eye to turning it into a formidable ad business. Its sales force, under Adam Bain, remains tiny; and Twitter does not yet have an office in New York.
Tuesday, December 7, 2010
Is it Time for Time (Inc., that is)?....
The big winner is Paul Caine, who adds the new title of evp, chief revenue officer to his current duties as president of the Style & Entertainment Group, which includes People, InStyle and Entertainment Weekly. In his new role, he’ll oversee corporate sales, with Leslie Picard and Kirk McDonald reporting to him.
Stephanie George, evp, who previously led corporate sales, was moved to a new position at the company of chief marketing officer, which could be read as a diminished position, because marketing services represents a relatively small part of Time Inc.'s overall business, although one where Griffin sees big growth potential. In her new role, she’ll oversee Time Inc. Content Solutions, corporate communications and Time Inc.’s partnership with American Express Publishing.
Both will report to Griffin, as they currently do.
One insider said Caine’s promotion is a recognition of his success running SEG, which is said to contribute at least 50 percent of Time Inc.’s revenue, and a way to reduce his overlap with corporate sales.
“It’s a lot cleaner and easier for him,” this person said. “If he’s negotiating with P&G, and there’s corporate sales and marketing also negotiating, it gets complicated.”
“This organization will drive faster, more coordinated decision-making and better align our resources against our goal of creating and delivering unmatched value in the marketplace,” Griffin said in an announcement.
Monday, December 6, 2010
What a Long, Slow U.S. Ad Trip it's been...
Forecast: Long, Slow U.S. Ad Recovery
ZenithOptimedia predicts 'disappointing' ad growth between 2010-13
Adweek: Dec 5, 2010
For the U.S. ad economy, it’s going to be a long, slow climb to full recovery, according to a new forecast that Publicis Groupe’s ZenithOptimedia will present at the UBSMedia conference in New York on Monday (Dec. 6).
Two other shops will also offer new global ad forecasts at the conference: Interpublic’s MagnaGlobal and WPP’s GroupM. Headlines from Magna: China will soon overtake Japan to become the second-largest ad market, while the Internet will surpass newspapers within two years to become the second-largest ad medium after TV. GroupM predicts that global ad spending will reach $500 billion for the first time next year, up 6 percent.
According to the ZO forecast, ad spending in the U.S. will grow just 2.5 percent next year to $155 billion, and a total of just under 9 percent between 2010 and 2013 to $164.8 billion, an increase that the agency termed “disappointing.” The Olympic-Election year of 2012 will see growth of just 3 percent to $159.6 billion.
Meanwhile, the global outlook is a little better, with projected spending for the same period up about 5 percent annually to $521 billion, per ZO.
“It’s a muted recovery,” said Steve King, ZO’s global CEO. “While the recovery is underway, it’s just not as dramatic”—or as rapid, compared to the recoveries that followed other recent recessions, he said. The severity of last year’s economic downturn partly explains the slow rebound, said King. It was also more widespread in terms of its geographic reach.
Of course, the sluggish growth projected for the next few years in the U.S. is better than the performance of the recent past. In 2009, spending dropped 7 percent. And 2010 growth is expected to total an anemic 1.5 percent to $151.5 billion, per ZO.
Factors stunting near-term growth in the U.S., ZO said, include corporate concerns about debt, unemployment and government spending.
That said, some growth is better than none, and GroupM chief investment officer Rino Scanzoni noted a “significant rebound in spending” in the U.S. during the second half of this year, compared with the depressed spending levels during 2009. Most of that growth was fueled by TV and Internet spending, he said.
ZO predicted that near-term worldwide spending growth will be driven by emerging markets. Brazil for example, is projected to grow 31 percent next year.
According to MagnaGlobal, China and India will show “standout” growth over the next several years. China will overtake Japan to become the world’s second-largest advertising market by 2013, Magna predicts, with ad revenues exceeding $54 billion. India’s ad economy should rise 21 percent next year to over $5 billion, with annual growth averaging more than 19 percent over five years.
“Until advertisers are fully confident that the economic recovery will be sustained, we expect growth to remain below its long-term trend rate of 6 percent,” said King of ZO.
Globally, ZO said that newspapers and magazines will continue to be the biggest media laggards, with spending in those sectors down another 2 percent between 2010 and 2013 as circulations continue to fall and readers migrate to the Internet. By contrast, Internet ad growth will spurt 48 percent during the same period. TV spending will be up 19 percent and radio will be up 10 percent.
According to Magna, Internet advertising will overtake newspapers as the second largest ad medium globally by 2013. It said that annual Internet ad revenue growth would top 7.5 percent over the next five years to $117 billion.
Thursday, December 2, 2010
Everyone look out...here comes the FTC!
Federal Trade Commission Proposes 'Do Not Track' for Internet Advertising
Chairman Liebowitz Says Self-Regulation Efforts Well-Intentioned, but Not Enough
Published: December 01, 2010
The stakes for online privacy just got a little higher.
The Federal Trade Commission revealed its proposal for a universal "do not track" mechanism on Wednesday that would allow people to choose whether they want internet companies to collect information on their browsing habits. On Thursday, a House subcommittee is holding a separate hearing on the matter. Online publishers and advertisers have come to rely on such data, and any significant alteration of current practices would have deep implications for the internet industry.
The FTC's report stated that despite numerous attempts at self-regulation, the industry has not done enough to protect consumers' privacy online, and that they need to work faster and improve their efforts.
"We're sending a clear message that self-regulation of privacy has not worked accurately," FTC Chairman Jon Leibowitz said in a call with reporters Wednesday. "The industry as a whole needs to do a far better job."
A coalition of advertising industry trade groups calling itself the Digital Advertising Alliance initiated a self-regulatory effort a few weeks ago that would allow consumers to choose to prohibit marketers from targeting them with advertising. The DAA, which is comprised of the 4As, the American Advertising Federation (AAF), the Association of National Advertisers (ANA), the Direct Marketing Association (DMA), and the Interactive Advertising Bureau (IAB), represent more than 5,000 corporations.
This initiative had been met with some praise from officials at the FTC when first launched, but it has not progressed quickly enough, according to Chairman Leibowitz.
"I think the people who are doing that are very well-intentioned," he said, "but it has been in pre-beta development for quite some time -- I think for more than two years. We'd like to see them move faster." Chairman Leibowitz did indicate, however, that the industry group appears to be taking proper steps and that its efforts could lead to a "more comprehensive" system.
Stuart P. Ingis, partner at Washington law firm Venable and counsel for the DAA, said that the online ad industry has delivered the kind of choice the Commission has asked for, and that the business community is in the best position to execute these plans. "We've built a very good framework," he said of their consumer opt-out program, which launched a few weeks ago. A significant component of the industry's program includes an icon that will appear on ads, which will lead consumers to an opt-out page. "In the next months, this will be ubiquitous," Mr. Ingis said.
Stopping collection, not just targeting
The Commission had expressed concern that the industry program does not allow people to keep online marketers from collecting data on their surfing habits, but only prevents marketers from serving, or targeting users with more relevant advertising. "We support the opt-out of collection not just targeting," Chairman Leibowitz clarified.
But according to Mr. Ingis, the industry program does stop marketers from collecting data once they choose to opt out, underscoring a larger question over what purposes the Commission defines beyond the scope of advertising. "We've had dialogue with them on this issue before, and we've met that goal," he said, "but if they want to extend the opt outs to include collecting data for purposes other than marketing, I don't know how that will work." He pointed out that third parties collect data for purposes other than advertising, such as email log-in authentication, as well as traffic data such as Google Analytics, which is widely employed across the web.
"That's why 'Do Not Track' is such a misnomer," he said.
The Commission's guidelines are preliminary, and it underscores the FTC's limited authority. A Do Not Track law could only be enacted by Congress, suggesting that this report is an appeal to whichever party -- industry or Congress -- will act more quickly. A subcommittee is holding a hearing called "Do-Not-Track Legislation: Is Now the Right Time?" on Thursday.
How it would work
A sticking point is how exactly a Do Not Track feature would work. The Commission's report spells out a specific example whereby a web browser, such as Firefox, would install a piece of software such as a cookie onto the user's browser that would signal to online marketers whether that consumer has chosen to make available his or her browsing habits in return for targeted advertising. But such a mechanism would only be specific to that browser and not to the specific person, as the Do Not Call legislation offers.
A browser-enabled Do Not Track feature would also have to differentiate between data collected for marketing purposes, or other reasons, whether for traffic data or log-in authentication, such as online banking.
But privacy advocates have largely approved of the Commission's report, and argue that a Do Not Track program is technically feasible. "The browser-based mechanism is simple and very generalize-able," said Peter Eckersley, senior staff technologist at the Electronic Frontier Foundation. "It could apply to mobile platforms without changing much. There is some flexibility on this proposal."
Chairman Leibowitz also said that despite the specific Do Not Track example outlined in the report, "it's not the only way, and that's why we're seeking comment. We're big believers in transparency and process, and if someone has a better idea, we want to hear it."
Wednesday, December 1, 2010
Cyber Monday is the new Black (Friday)?
Associated Press
Cyber Monday sales top $1 billion for first time
Associated Press, 12.01.10, 09:28 AM ESTNEW YORK -- Americans jumped on deals and promotions offered online on Cyber Monday, spending $1 billion and making it the busiest online shopping day ever, according to new data.
Research firm comScore Inc. says revenue rose 16 percent from a year ago to $1.03 billion on the Monday after Thanksgiving. Since the beginning of November, online sales are up 13 percent to $13.55 billion.
The improvement is welcome for retailers hoping that Americans start spending more freely. But shoppers are still holding out for bargains and spending cautiously as unemployment remains high.
According to ShopperTrak figures, revenue at brick-and-mortar stores was flat over the weekend following Thanksgiving, but traffic rose 2.8 percent.
A clearer picture of spending will come Thursday when the nation's retailers release revenue figures for November.
An Interview with our VP of Operations, Jeff Roach with B2B Online...
A true opt-in list is one created by your company with subjects who specifically invited emails from your company. But b2b list vendors frequently advertise “opt-in” lists that are targeted at your market category or product mix and are designed to yield better results. In some cases, these lists may contain records that were obtained by your competitors—or records that your competitors may have already targeted if they have access to the same list database.
This less-than-ideal scenario raises a good question: Do these more expensive opt-in lists really yield any benefit in the sometimes small world of b2b email marketing or are third-party opt-in lists little more than a marketing distinction used by list vendors?
“Opt-in lists are definitely more valuable than general lists,” said Christine Crandell, senior VP-marketing for Accept Software Corp. in Fremont, Calif. “Having said that, just because the list is opt-in doesn’t necessarily mean the list members will be interested in the product being offered.”
That sentiment was echoed by Peter Burke, CEO of Mavington Group in Wayne, Pa.
“I understand the premise of opt-in lists, but I don’t really see how they apply in executive contacts,” Burke said, adding that he rarely uses opt-in lists in his company’s marketing efforts.
So beyond their greater perceived value, if the feeling is that opt-in lists may not increase leads, what’s the point of using them?
This is where price comes in, said Jeffrey Roach, advertising operations director at eLink Media in West Palm Beach, Fla.
“I find there to be a mixed opinion from my clients on whether site- and product-specific lists are more effective than general opt-in lists,” Roach said. “Price is a huge factor, in that opinion.”
In Roach’s view, the ultimate value of a list isn’t whether it’s opt-in or not, but the return on investment the list yields during a campaign. Naturally, because opt-in lists are more expensive, they have to yield better business results.
“This game is about ROI, and if you’re priced out of your metrics, does it really matter where the list came from?” Roach said.
They key to extracting value from opt-in lists (or any lists), Crandell said, is to do your homework: Make sure the list matches the campaign, including its price.
“Marketing needs to carefully match list profiles, demographic and psychographic, with the desired target audience,” Crandell said. “A good match and a credible opt-in list are an essential foundation for productive marketing campaigns. As we implement our marketing plans, we may secure additional opt-in lists for campaigns that are targeted to a different audience, industry or geography than what is addressed by our marketing database.”
Monday, November 29, 2010
There is a new personality at play in the marketing world...
As reported on Adweek.com 28-November 2010
Focused on marketers, WME aims to replace shops
Ari Emanuel
With the launch of Lverage, WME Entertainment’s latest venture into brand marketing, Emanuel, co-CEO of WME, has set his sights on replacing, not supplementing ad agencies, said sources who’ve discussed the venture with him. To that end, he has surrounded himself with partners like former Omnicom Group vice chairman Michael Birkin who knows the ad game and is well connected with marketers.
Birkin is chief strategist for Red Peak Group, a New York-based specialist in brand consulting and experiential marketing that WME acquired for Lverage, said sources. Red Peak’s CEO is Jay Lenstrom, former CEO of Omnicom’s Radiate Group. WME also acquired the Red Interactive Agency in Santa Monica, Calif., and forged ties with Marc Byron, founder of Trivergance Business Resources, a direct marketing firm in Fort Lee, N.J., that remains a separate company.
In conversations with other potential partners, Emanuel has positioned WME as “more connected” than chief rival Creative Artists Agency and its more established marketing arm, which opened in 1998 after CAA shocked the ad industry by (briefly) overtaking McCann Erickson as lead agency on Coca-Cola. CAA Marketing today operates largely as an added resource for marketers who already have lead shops. As one source put it, “It doesn’t feel like CAA is trying to disintermediate advertising agencies. These guys (at WME), really their goal is to get some big accounts and be the AOR.”
The broader ambitions represent a break from WME’s past efforts in this space via Endeavor Marketing and its chief, Mark Dowley. While Dowley this summer helped introduce Emanuel to players in the ad world, he may not play a role in Lverage, said sources. Endeavor Marketing is now part of Lverage. Dowley could not be reached, and Emanuel, through a representative, declined to comment.
The simple reason, of course, why Emanuel’s marketing goals are bigger this time is that his agency is bigger. WME is the product of last year’s merger of the William Morris Agency and Endeavor, the shop Emanuel opened with three colleagues from ICM in 1995. Additionally, WME now has access to fresh capital via a $300 million private equity fund at The Raine Group, in which the agency has a minority stake. The fund will enable WME to make investments that, in turn, could aid efforts to link talent and brand marketers.
Marketers are particularly alluring to WME these days because their dollars represent a potentially sizeable source of revenue for the agency’s clients. As WME co-CEO Patrick Whitesell said of his clients at Google’s Zeitgeist 2010 conference in September, “We know what their value is to consumers. We know what they are to advertisers. So, the next step is for us is, how can they economically benefit from those things that are out there and happening?” At the same conference, Emanuel added: “We’re having more conversations with advertisers every day, whether it be the P&Gs, the GMs of the world. Almost on a daily basis now, you’re having those conversations.”
To move beyond transactional deals with such marketers and build brands long term, however, WME will likely need more strategic and creative firepower, said sources. That may explain why Emanuel approached former JWT North American president Rosemarie Ryan -- a strategic planner by trade -- and ex-JWT chief creative officer Ty Montague before the duo launched Co: in September, according to sources.
“There’s absolutely merit in finding a way to bring that kind of creative pool together with advertisers and marketing companies,” said a source. “What that (also) entails is really understanding brands, how they get built and all of that stuff. I think they see it solely as a creative endeavor and not necessarily a strategic endeavor as well. And I think you have to do both.”
Friday, November 19, 2010
NBC...It's Must House Clean TV!
Comcast Reveals NBCU Leadership Structure
Steve Burke
The cable giant detailed the roster in a memo from Comcast chief operating office and incoming NBCU CEO Steve Burke. Given the volume of leaks pouring out of NBCU, there were few (if any surprises), though a few new positions were introduced.
As Mediaweek previously reported, all but a handful of the bold-faced names at NBCU will retain their posts. (CEO Jeff Zucker in September announced he would leave after the deal closes, while NBCU entertainment president Jeff Gaspin was shown the door earlier this week.)
Moving to the top of the broadcast heap is ex-Showtime mastermind Bob Greenblatt, who will assume the role of chairman, NBC Entertainment. In his new role, Greenblatt will oversee NBC's prime-time and late-night programming, as well as business affairs, West Coast research, marketing, public relations, scheduling and NBC Universal Media Studios.
Joining Greenblatt (and moving back East) is current Comcast entertainment group CEO Ted Harbert, who joins NBCU as chairman of the broadcast flagship. Harbert will keep his eye on advertising sales, affiliate relations, research, domestic syndication and the NBC station group.
On the cable side of the ledger, Bonnie Hammer will become chairman, NBC Universal Cable Entertainment and Cable Studios. In addition to her current charges, which include USA Network, SyFy, Chiller, Sleuth, Universal HD and Universal Cable Productions, Hammer will add oversight of Comcast's E! and G4. Neil Tiles will remain president of G4, reporting to Hammer, as will an as-yet unidentified new E! topper.
Lauren Zalaznick will become chairman, NBC Universal Entertainment & Digital Networks and Integrated Media. Bravo, Oxygen and iVillage will continue to report to Zalaznick, as will the Integrated Strategic Marketing Group, which includes Green Is Universal, Healthy at NBC Universal and Women at NBC Universal. Zalaznick will also manage the digital properties Daily Candy and Fandango, as well as the Spanish-language network Telemundo; moreover, she'll add cable nets mun2, Style and PBS Sprout to her roster.
Telemundo will continue to be led by president Don Browne and COO Jackie Hernandez, while Salaam Coleman Smith will stay on to lead Style.
In the early going, ad sales will take on a bifurcated structure, with Marianne Gambelli taking on the broadcast duties as the new president of NBC Network Advertising Sales and Dave Cassaro assuming oversight of all cable network and digital sales. Along with prime time, Gambelli will be responsible for news and sports ad sales.
Gambelli will report to Harbert, while cable ad sales president Cassaro will report to Hammer and Zalaznick. Steve Mandala, Peter Naylor and Mike Rodriguez will remain, reporting to Cassaro.
NBCU president of sales and marketing Mike Pilot will leave upon completion of the acquisition, which could close as soon as late December. In his memo to staffers, Burke addressed the departure of Gaspin and Pilot by noting, "These transitions are often difficult, and at times, people who have made great contributions end up leaving."
Pilot took the reins at the NBCU sales unit in 2006, after being shifted from his previous post as chief executive of the equipment finance group at GE.
Among those staying on at 30 Rock are: NBC News/MSNBC president Steve Capus, CNBC president Mark Hoffman and NBC Sports chairman Dick Ebersol. The veteran deal maker will add the Golf Channel, Versus and the Comcast Regional Sports Networks to his plate; Jon Litner (RSNs), Jamie Davis (Versus) and Earl Marshall (Golf) will report to Ebersol.
Jeff Shell will move to London to become chairman of NBC Universal International.
"The team described above will not begin to operate the company until after the transaction closes, which will occur following regulatory approval," Burke said. "Between now and then, each business will continue to be managed by its respective leadership team, and NBC Universal will continue to be led by Jeff Zucker, whose talent, hard work and commitment have been instrumental in building NBC Universal into the company it is today."
Burke said employees could expect further announcements before the $13.8 billion transaction is wrapped up. He signed off with a brief forward-looking statement: "I hope you are as excited as I am by the prospect of what we can accomplish together in the future."
Zucker earlier today said that NBCU and Comcast are now in the final stages of the regulatory review, adding that issues having to do with online video were of paramount concern to Washington lawmakers.
Tuesday, November 16, 2010
Yogurt anyone?...courtesy of Mullen
Interpublic Group's Mullen has picked up U.S. advertising chores for the Fage Greek yogurt brand, succeeding WPP's Ogilvy & Mather, which worked on the account for three years.
Fage spent almost $4 million on ads during the first two-thirds of 2010, almost as much as it spent in all of last year, per Nielsen.
Boston-based Mullen will handle traditional and digital chores including creative development, media planning and buying and social media outreach.
All told, domestic Yogurt sales tallied $4.97 billion in the 52-week period ended Oct. 2, a 7.6 percent increase vs. the same frame in 2009, Nielsen said. So the win gets the agency into growing category.
Ogilvy two months ago launched a major push for Fage online. One ad showed a woman's necklace pressed into a bed of "ridiculously thick yogurt." The tag: "Fashionably low in fat." Three blueberries -- dangling as pendants -- added a splash of color to the creamy white background.
The client called that effort one of its largest ad pushes ever, but the Ogilvy relationship apparently soured. The first fruit of its association with Mullen appears early next year.