News: 7 Day Round Up
November 20 to November 14, 2008
November 20 to November 14, 2008
US ONLINE RETAIL GROWTH SLOWS CHICAGO: The growth of US online retail spending fell to its lowest level in seven years during October, posting a year-on-year improvement of just 1% as the economic downturn impacts on consumers. Online market research firm comScore reports that middle-to-lower earning families, defined as having an income of less than $50,000 (€39,620; £33,216) per year, are now said to be spending little or nothing via the web. Households with an annual income of $50,000 to $100,000, which are responsible for 45% of online retail spending, increased their outlay by just 1% for the three months to the end of October. Andrew Lipsman, marketing communications manager at comScore, says: "It's clear that consumers have less disposable income and as a result, ecommerce is going to suffer." He is also pessimistic regarding future online retail growth levels, arguing: "I think it's safe to say we aren't going to see growth rates anywhere near to what we've seen in past years." Data sourced from Wall Street Journal; additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesUS Children View Fewer Online Ads - Oct 30, 08 US Digital Ad Spending Set to Suffer - Oct 17, 08 Analysts Forecast Further Troubles for Yahoo - Sep 23, 08  P&G AND GOOGLE: THE NEW LAUREL AND HARDY?  GRAND ISLAND, Nebraska: The preceding location is almost exactly half-way between Google's Mountain View (Calif.) headquarters and that of Procter & Gamble in downtown Cincinnati. Its significance to this story is purely symbolic: the picture of Laurel and Hardy is not! At first sight the laid-back Googlistas and the buttoned-up 'Proctoids' (as P&G staff reportedly refer to themselves) are not the ideal couple. Or are they? Which is where Stan and Ollie's come in - as will be explained later. Surface-wise, the only shared values of these advertising titans are the razor-like sharpness of their business instincts and their unblinking focus on the bottom line. But believe it or not, the duo have launched a program of employee exchanges. Around two-dozen staffers from the companies have spent several weeks embedded into each other's staff training programs, attending meetings where business plans are openly discussed. Until recently neither company permitted this kind of access to outsiders – and until this story appeared in Wednesday's Wall Street Journal the initiative had gone unnoticed by the outside world. So why, on the face of it, this potentially dangerous liaison? For much the same reason as Stan and Ollie first got together. One played off the other, making the whole immeasurably greater than the sum of the parts. Google, now a hooked growth junkie, urged on by its Wall Street dealers, craves an ever bigger fix of P&G's $8.7 billion (€6.86bn; £5.78bn) annual adspend to ward off the inevitable slowing of its own revenue growth. Likewise P&G, boasting the largest ad budget on planet Earth, has finally realised that the world no longer comprises loving Moms whose only source of maternal satisfaction is the whiteness of their laundry. It now knows the next generation of laundry-detergent, toilet-tissue and skin-cream buyers spends more time online than watching TV. Says P&G's digital innovation manager Stan Joosten – whose job function was created only last spring: "We're trying to open the eyes of our brand managers." The swap is the brainchild of former P&G cmo Jim Stengel who recently left the company to set-up his own consultancy. Before doing so he met with Tim Armstrong, Google's ad sales and operations manager for the Americas. The two men brainstormed the job swap idea, which launched in January. Data sourced from Wall Street Journal Online; additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesSocial Networks 'Don't Have Right' to Ad Dollars, Says P&G Honcho - Nov 19, 08 Google Stock Sags Below $300, Lowest Since 2005 - Nov 14, 08 Google and Microsoft in Clash of the Titans over Verizon Tie-up - Nov 10, 08 TRUSTEES WILL APPLY BRAKES TO BBC WORLDWIDE'S COMMERCIAL OPERATIONS  LONDON: Hauled before Parliament's Select Committee on Culture, Media and Sport, Sir Michael Lyons (pictured), chairman of the BBC Trust, assured the assembled politicos he had heeded the raft of complaints about the anti-competitive behaviour of the state-owned broadcaster's commercial arm, BBC Worldwide. The howls of anguish emanate both from relatively puny UK rivals and powerful global interests such as Clan Murdoch. Lyons, himself a political appointee, dutifully toed the line, telling MPs: "The Trust has already decided that we need to tighten both the mission and the guidelines around BBC Worldwide." As the rules currently stand, any investment by BBCWW must meet four criteria …
Meantime, the unit's profits – £117 million ($175.99m; €138.69m) in 2007, on revenues totalling £919m – help to offset the annual license fee (£139.50) payable by all UK households owning a TV receiver. BBCWW's current remit includes the sale of BBC TV and radio content across the globe; the operation of its own TV channels outside the UK; magazine publishing; ad-supported websites; and the recently acquired Lonely Planet travel guides. All these activities are viewed by commercial rivals as publicly subsidised competition. Select Committee chairman John Whittingdale voiced concern at Worldwide's "increasingly ambitious growth strategy". “Do you see any boundaries to BBC Worldwide's activity?” he asked Lyons, who assured him that an internal inquiry was already "well advanced" albeit unfinished. BBCWW's current boundaries and guidelines, he said are being "tested ... and I don't think you are going to be disappointed with the conclusions". The predictable outcome will be published early in 2009. Data sourced from Financial Times; additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesBBC Worldwide Appoints New Global Marketing VP - Oct 10, 08 BBC Appoints Veteran Staffer as First Worldwide Marketing Director - Aug 5, 08 Wrist Slapped, the BBC Dumps Programme Sponsorship - Jul 23, 08 NIELSEN WINS RADIO METRICS BUSINESS FOR CUMULUS AND CLEAR CHANNEL  NEW YORK: The Nielsen Company has won radio ratings contracts for two major US broadcasters, Cumulus Media and Clear Channel Radio, a move Steve Morris, president/ceo of rival radio measurement firm Arbitron, declares is "a step backward" for the industry. Cumulus will use Nielsen's annual ratings service in fifty small and medium-sized markets, and Clear Channel in seventeen, though both companies will continue to utilise Arbitron's measurement tools in more populous areas. Nielsen's system will begin operation in the third quarter of 2009, using randomly-selected addresses, which the company claims will enable it to reach 34% of households that are ignored by other techniques based on random phone numbers. The measurement giant also says it has invested significantly in targeting hard-to-reach demographic segments, and will introduce an "electronic diary" to record radio use in 2010. Arbitron's Morris, however, counters: "Advertisers have told us that radio markets need more than a once-a-year survey in order for stations to maintain accountability and recapture revenue from out-of-home, internet and online media." Data sourced from mrweb.com; additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesWPP and Nielsen Barter Research Assets to Facilitate TNS Deal - Nov 13, 08 Nielsen Tests Audience Meter Ahead of US Digital Switchover - Sep 11, 08 Nielsen Refutes TNS-GfK Intervention Intention - May 16, 08 WHISPERS ABOUND ABOUT NEW YAHOO-MICROSOFT DEAL  SUNNYVALE, California: "Learn from yesterday, live for today, hope for tomorrow," Albert Einstein once opined. These words currently seem apposite for Yahoo, as rumours grow about the possibility of reigniting its proposed search tie-up with Microsoft.As reported earlier this week, Jerry Yang, a co-founder of Yahoo, will step down as chief executive as soon as a replacement is found, returning to his former role of "Chief Yahoo", which does not carry any executive responsibilities. Yang has previously encouraged a renewed bid from Microsoft following the collapse of talks between the two companies earlier this year, and his departure is seen by observers as an opportunity to breathe life back into the deal. Says Ryan Jacob, chief investment officer of the Jacob Internet Fund, which holds a stake in Yahoo: "There's no question Microsoft's interested, and there's no doubt a new chief executive would take a fresh look at this." It is thought any new agreement would probably take the form of an online search alliance rather than a full takeover by Microsoft. Data sourced from Financial Times; additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesYang Bows to the Inevitable, Will Step Down as Yahoo Ceo - Nov 18, 08 Ceo Deserts UK Online Video Joint Venture for Microsoft Top Job - Nov 12, 08 Google and Microsoft in Clash of the Titans over Verizon Tie-up - Nov 10, 08 PUBLICIS BUYS UP BRAZILIAN DIGITAL AGENCY  SAO PAULO, Brazil: Publicis Groupe, the world's fourth largest marketing services conglomerate, has extended the reach of its digital operations with the purchase of independent Brazilian interactive agency Tribal. Tribal, which is based in Sao Paulo and has clients including Microsoft, Chrysler and Philips, was established ten years ago, and employs around 100 members of staff. The agency will now be integrated into Publicis's digital network Digitas, but Tribal ceo Pierre Mantovani and chief creative officer Renato Fabri will retain their positions at the company. Says Laura Lang, ceo of Digitas: "Brazil is poised for significant growth. From a digital perspective, Brazil is vital for our clients." Data sourced from Bloomberg.com (France); additional content by WARC staff, 20 November 2008 Print | Email | Add to Folder Related News StoriesPublicis Defies Recession, as Q3 Sales Hold Firm - Oct 28, 08 Lévy of Publicis is Downbeat About 2009 Ad Prospects - Oct 10, 08 Google and Publicis Spill the Beans on Their Tie-Up - Sep 24, 08 JOHNSON & JOHNSON, PIQUED, PULLS GLOBAL OLYMPIC SPONSORSHIP  LANGHORNE, Pennsylvania: US healthcare colossus Johnson & Johnson is to pull out of an Olympics sponsorship deal said to be worth around $100 million (€78.8m; £66.48m) over the next four years. The reason? Not pecuniary but pique. Those in the know say that the flounce-out was motivated by J&J's frustration at the lack of people admitted to the sponsors' area during the Beijing Games – allegedly due to insecurity over security. As a result, the Vancouver Winter Olympics in 2010 and the London event in 2012 are currently short of a cool $100m. In less turbulent fiscal times there would be little difficulty in replacing one sponsor with another – even at that level of investment – but J&J's defection follows that of three other major world players, Kodak, Lenovo and ManuLife. Johnson & Johnson was zip-lipped about the reason for its withdrawal, seeking refuge in the time-honoured cliché that the pull-out would "enable the company to focus on other business priorities". Data sourced from BrandRepublic (UK); additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesChild Obesity Activists Challenge Cadbury's Olympics Sponsorship - Oct 22, 08 UK Marketers Inveigh Against 2012 Olympic Restrictions - Sep 25, 08 BA Grabs 'Official Airline' Tag for London Olympics 2012 - Jan 30, 08 CHINA IS NOW SECOND LARGEST CONTRIBUTOR TO WORLD ECONOMY  BEIJING: China is now the second biggest contributor to the global economy, responsible for 14.5% of worldwide GDP growth in 2006, behind only the United States which accounted for 22.8%.The Asian tiger's National Bureau of Statistics reports that as of 2006 China's overall contribution to global growth was 1.4% greater than that of the Eurozone, and 6.7% more than Japan. In all, the NBS estimates that the Chinese economy accounted for 0.55% of total global growth in 2006, based on an estimated worldwide improvement of just under 4% year-on-year. From 1979 to 2007, the Chinese economy grew by an average of 9.8%, a total that was some 6.8% higher than the global average. By contrast, in 1978 – before the inception of its economic liberalisation programme – it added 0.1% to global growth, while the US economy was responsible for 1.64%, around a third of the total improvement. Data sourced from People's Daily; additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesAdvertisers Spend Big on China Central Television - Nov 21, 08 Baidu Shares Suffer from Medical Malaise - Nov 19, 08 Chinese Adspend Slowed During Olympics - Nov 4, 08 SOCIAL NETWORKS 'DON'T HAVE RIGHT' TO AD DOLLARS, SAYS P&G HONCHO  CINCINNATI: It's not the honeyed phrase FaceBook, Bebo, Twitter et al had hoped to hear from the planet's largest advertiser: "Social networks may never find the ad dollars they're hunting for because they don't really have a right to them." Thus opined Ted McConnell, Procter & Gamble's general manager for interactive marketing and innovation, in his address to the Ad Club of Cincinnati. Referring to constant carping by analysts and other industry observers that social networking sites are failing to monetize their operations, McConnell fired straight from the hip. "I have a reaction to that as a consumer advocate and an advertiser. What in heaven's name made you think you could monetize the real estate in which somebody is breaking up with their girlfriend?" He harbors similar thoughts about the wider market of consumer-generated media. "Who said this is media? Media is something you can buy and sell. Media contains inventory. Media contains blank spaces. Consumers weren't trying to generate media. They were trying to talk to somebody. "So it just seems a bit arrogant. ... We hijack their own conversations, their own thoughts and feelings, and try to monetize it. "I don't think everything every consumer says to someone else and writes down is somehow monetizable by the media industry." Stressing that he was expressing a personal preference rather than P&G policy, McConnell added: "I really don't want to buy any more banner ads on Facebook." Nevertheless, he retains an interest in such sites for the creation of an environment that is favorable for P&G brands and consumers alike. Asked about the growing differences of opinion on the value of performance-based models like pay-per-click versus other paradigms such as cost-per-thousand (CPT) , he predicted that the chasm will widen as recession spreads. Said he: "Spray and pray' is a little harder to do when you're under economic pressure . . . so performance-based advertising will gain share over CPT." Data sourced from AdAge.com; additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesP&G and Google: The New Laurel and Hardy? - Nov 20, 08 P&G Sales Up, but Adspend Drops - Oct 31, 08 P&G Goes Direct in Head-to-Head With Retailers - Oct 20, 08 UK AGENCY BODY PUBLISHES Q3 'TRENDS IN TELEVISION' REPORT  LONDON: The latest quarterly Trends in Television Report, published Tuesday by Britain's Institute of Practitioners in Advertising, shows that the overall national television viewing audience continues to achieve growth. Average hours of viewing for the third quarter of 2008 stood at 3.54 hours, compared year-on-year to 3.38 – the highest level recorded for this quarter since the start of the current BARB (Broadcasters Audience Research Board) panel in 2002. Additional key findings:
"Digital reception now stands at 83.2% which hopefully will minimise the disruption caused by the ongoing digital switchover." Data sourced from: Institute of Practitioners in Advertising (UK); additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesUK Ad Budget Cuts Sink to Alltime Nadir - Oct 13, 08 UK Government Hypes Advertising as a Career - Sep 18, 08 UK Agency Body Launches Web-Based Consumer Analytics Tool - Aug 11, 08 BAIDU SHARES SUFFER FROM MEDICAL MALAISE  BEIJING: Shares in Baidu.com, China's largest search portal, fell by 25% earlier this week after local news website SINA revealed the portal had sold medical search keywords to unlicensed health clinics and pharma companies. Baidu's share price hit a year-long low of $130.51 (€103.22; £86.95) on Monday, closing at $134.09, following reports that health centres and drugs providers with questionable credentials had bought the search terms. According to investment bank Piper Jaffray, a number of the promoted destinations were probably "non-accredited medical websites that should not score as high on sponsored results." The sites have now been removed from Baidu's results, a move Piper Jaffray argues constitutes "an acknowledgment that sales techniques allowed questionable websites to buy their way to top positions for consumer-sensitive verticals.” As medical keywords make up a small proportion of Baidu's search advertising income, most analysts predict the share slump will be short-lived. Says Steve Weinstein, an analyst at technology investment specialists Pacific Crest: "I think there's going to be such a modest impact because, if you kick all those advertisers out, it's likely there are other bidders for the keywords they were bidding on. "There are going to be legitimate advertisers who want that traffic." Data sourced from Wall Street Journal Online; additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesAdvertisers Spend Big on China Central Television - Nov 21, 08 China is Now Second Largest Contributor to World Economy - Nov 19, 08 Chinese Adspend Slowed During Olympics - Nov 4, 08 AS ONE PEPSICO DOOR SHUTS AT OMNICOM, ANOTHER PEPSICO DOOR OPENS  NEW YORK: 'Lose some, win some,' as Omnicom Group may philosophically reflect after hearing the bad news that PepsiCo has shifted its Pepsi and Diet Pepsi brands out of BBDO's New York office after forty-eight years. But there's also good news for the world's largest marketing services group. The $130 million (€102.15m; £86.49m) account has only moved crosstown from the Avenue of the Americas to Madison Avenue and the welcoming arms of aother Omnicom shop - TBWA/Chiat/Day. The transfer is an attempt on Pepsi's part to beef-up US soda sales which continue soutbound, a trend that was a major factor behind PepsiCo's lackluster Q3 numbers. The first nine months of this year saw Pepsi-Cola volume sag by 6.6% and Diet Pepsi by 8.1%, according to Beverage Digest. The downward trend is not unique to Pepsi: Coca-Cola's volume fell 3.5% in the same period, while Diet Coke slid 4.5%. Says PepsiCo North America Beverages cmo Dave Burwick: "We decided to appoint TBWA/Chiat/Day to refresh Pepsi's communications across multiple consumer touch points and to reinvigorate Pepsi's legacy of leading-edge advertising." Data sourced from Wall Street Journal Online; additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesPepsiCo to Spend $1bn in China - Nov 5, 08 If Recession's a Lemon, Omnicom's Ceo Aims to 'Make Lemonade' - Oct 22, 08 Pepsi Unveils New Logo - Oct 22, 08 ITV PRODUCES CODE OF CONDUCT FOR PRODUCT PLACEMENT  LONDON: ITV, the UK's largest commercial broadcaster, has teamed with independent content producers' trade body Producers Alliance for Cinema and Television to establish a code of conduct for the potential use of [currently barrred] product placement.One potentially controversial proposal in the code is that TV production companies be allowed to approach brand owners where they have identified appropriate opportunities for product placement in finished scripts. It is also suggested that a logo be displayed on-screen at the start and end of a show, and after breaks, informing viewers that programmes contain product placement, thus promoting "transparency". Emphasis would also be placed on "presence not promotion", with product placement only being used where it is appropriate to editorial content. Argues Rupert Howell, ITV's brand and commercial managing director: "Product placement could be an innovative and important new revenue stream for ad-funded, commercial broadcasters, further enabling investment in original UK content, at a time when advertising revenues are declining." The Department for Culture, Media and Sport is currently undertaking a review into allowing product placement, and ITV has already argued it could prove vital given declining advertising revenues. Data sourced from Telegraph.co.uk; additional content by WARC staff, 19 November 2008 Print | Email | Add to Folder Related News StoriesBritain's BT Links With ITV for Programme Archive Service - Nov 18, 08 ITV Pushes for Product Placement Rethink - Nov 10, 08 ITV to Merge Broadcast and Online Operations - Nov 7, 08 YANG BOWS TO THE INEVITABLE, WILL STEP DOWN AS YAHOO CEO  SUNNYVALE, California: Jerry Yang (pictured) co-founder and current chief executive of beleaguered internet portal Yahoo, is to relinquish his post as soon as a successor is appointed. Given the politicking and back-stairs maneuvrings within Yahoo's board and among its shareholders, many candidates might regard the offer of Yang's job as something of a poisoned chalice. According to company insiders, Yang has been discussing the move with chairman Roy Bostock over the past several weeks. After stepping down he will remain with the company in a senior role. Many will be sorry to see Yang go. Activist investor Carl Icahn, however, is not one of them. He would have sought Yang's removal had his proxy campaign succeeded at the company's recent annual meeting. But sixty-six percent of stockholders' votes were cast in Yang's favour. Meantime, on the other side of the mountain, Microsoft's Steve Ballmer is reportedly still interested in buying Yahoo's search operations, despite several public declarations to the contrary. Acquisition would certainly make sense for the cash-rich software colossus, which to its chagrin remains the Cinderella among the Big Three internet search companies, with just 8.3% of the US search market. Although Yahoo commands more than double that figure with 19.6%, it still forlornly trails Google's dominant 63%. Meantime, word within Yahoo's executive washrooms is that a prime candidate for Yang's job is company president Susan Decker, who is well-regarded by several boardroom kingmakers. Said a Microsoft spokesman after being confronted with news of Yang's transfer to the departure lounge: "No comment." Data sourced from Wall Street Journal Online; additional content by WARC staff, 18 November 2008 Print | Email | Add to Folder Related News StoriesWhispers Abound About New Yahoo-Microsoft Deal - Nov 20, 08 Yahoo CEO Flirts with Microsoft - Nov 7, 08 Google Walks Away from Yahoo Ad Alliance - Nov 6, 08 BRITAIN'S BT LINKS WITH ITV FOR PROGRAMME ARCHIVE SERVICE  LONDON: The UK's largest commercial broadcaster ITV announced Monday it had forged a partnership with the nation's biggest telecoms operator BT to provide a nationwide 'catch-up' and archive programme service via the latter's BT Vision.BTV provides a range of broadband-delivered pay-TV packages to standard antenna-reception TV sets. It already includes content from the other national broadcasters: the BBC, Channel 4 and Five. BT claims its service is free from the bandwidth and picture quality problems that have so far impeded to uptake of internet TV, although there is a downside. Unlike standard ITV transmissions, BTV doesn't come free and viewers will be required to pay £3 ($1.49; €1.17) monthly for its Replay service. In addition there is a wide variety of other packages on offer at rate of up to £20 per month. Although the value of the agreement is unquantified, it's a deal made in heaven for both parties. ITV sees it as a stepping stone towards its target of doubling online revenues by 2012; and it will enable BT to expand its comparatively puny customer base beyond its current level of 340,000 – that's just 10% of Virgin Media's cable-homes and light years distant from BSkyB's circa nine million. As is customary on such occasions, win/win euphoria oozed from both parties. Says ITV Online director Ben McOwen Wilson: "The deal with BT Vision will allow us to be able to reach new audiences with both our catch-up and archive on-demand content. [It] allows us to add another string to our bow in distributing our content wider." While Marc Watson, Content & Business Development director at BT Consumer declared it to be "a massive addition to the BT Vision on-demand offering". Data sourced from Financial Times; additional content by WARC staff, 18 November 2008 Print | Email | Add to Folder Related News StoriesITV Produces Code of Conduct for Product Placement - Nov 19, 08 ITV Pushes for Product Placement Rethink - Nov 10, 08 ITV to Merge Broadcast and Online Operations - Nov 7, 08 NEWSCORP STRIKES INDIAN TV DEAL WITH LOCAL ENTREPRENEUR  MUMBAI: NewsCorp-controlled Star India, which reaches 60 million viewers with its Hindi and English programming, has entered into a joint venture with local broadcaster Jupiter Entertainment to gather more south Indian audiences into their net. The Indian company is is owned by entrepreneur Rajiv Chandrashekar and the joint venture is to be branded Star Jupiter. According to Star India ceo Uday Shankar: "The fastest growth in cable and satellite broadcasting is coming from southern India." Subject to regulatory approval, Star Jupiter will become majority shareholder of Asianet Communications which currently operates TV channels in the nation's southern states (Kerala, Karnataka, Andra Pradesh and Tamil Nadu) where the most common languages are Malyalam, Kannada and Telugu. Whoops Star Asia ceo Paul Aiello: "This is a game-changing partnership for Star. Frankly, we'd not taken advantage of the opportunity provided by the regionalisation of viewership and advertising. Data sourced from Financial Times; additional content by WARC staff, 18 November 2008 Print | Email | Add to Folder Related News StoriesEx-Investment Banker to Reenergize NewsCorp's Fading Asian Star - Nov 1, 07 NewsCorp Brings Pay TV Empire to India - Aug 11, 06 Star TV Keeps Faith with China - Nov 30, 05 YOUTUBE SEES HULU COMING UP FAST ON THE RAILS - DOLLARWISE  MOUNTAIN VIEW, California: According to a new forecast, by Screen Digest analyst Arash Amel, the $1.65 billion (€1.3bn; £1.11bn) paid two years ago by Google for video-sharing site YouTube was not the most productive $1.65bn ever invested. Despite its massive audience of around 83 million unique US viewers (September 2008), YouTube seemingly lacks advertising appeal – perhaps because of the nature of that audience and the site's often risqué content. To say nothing of serious issues regarding content copyright. In terms of consumer eyeballs no other video-sharing site comes within a country mile of YouTube. But in terms of ad revenues ... that's another story! Hulu, backed by News Corporation and NBCUniversal, and launched only in March of this year, is coming up fast on the rails, Amel believes. Showing only professional TV shows and movies, he forecasts it will draw level with YouTube in 2009 - at around $180m in US advertising revenues. Says Amel: "YouTube is in a very tough place right now. Most of that user-generated content is worthless or illegal. The next eighteen months will determine whether or not it was just an expensive mistake for Google." Starcom video innovations director Tracey Scheppach agrees: "YouTube hasn't done a great job justifying why advertisers should migrate online." Whimpers YouTube advertising product manager Matthew Liu in response: "We're in the early stages, I wouldn't say we're where we want to be." YouTube Sponsored Videos, has been in pilot with advertisers for several weeks. When rolled-out, YouTubers will see online commercials next to their search results when seeking products or criteria such as "the financial crisis." Emulating Google's search ad system, advertisers can create and bid for such ads via a self-service website. "What we're trying to do here is bring the best parts of Google and the best parts of YouTube together," says Liu. The concept appeals to Jordan Bitterman, svp at Publicis's Digitas. "The sponsored video links get around [content problems]. You don't have to worry about the content of the page." Data sourced from Financial Times and Wall Street Journal Online; additional content by WARC staff, 18 November 2008 Print | Email | Add to Folder Related News StoriesBerlusconi Sues Google Over Alleged YouTube Copyright Breach - Aug 1, 08 Google and Viacom Deal Protects YouTube Users - Jul 17, 08 TiVo and YouTube in Video Tie-up - Mar 14, 08 UK TEST-LAUNCH FOR KANGAROO V-O-D IN JANUARY  LONDON: The trio of UK broadcasters underwriting online video-on-demand service Project Kangaroo, plan a test launch to a limited number of users in little more than two months time – despite the fact that the venture is under investigation by the nation's Competition Commission. Moreover, the timing of the trial is significant, given that it is in mid-January that the trio (the BBC, ITV and Channel 4) expect the regulator to publish its decision. [Although The Guardian, this story's source, sets the date as "later this month".] In any event, Kangaroo will hop into alpha mode in December with the uploading of programming content. The beta phase commences early next year and will allow a limited number of users to access the service in strictly closed tests of usability and functionality. Meantime Kangaroo is rudderless, its former ceo Ashley Highfield, having jumped ship in favour of a top job at Microsoft. Despite which, says ITV Online and Project Kangaroo board member Ben McOwen Wilson: "As shareholders, we have [all] chosen to continue investing and developing the site so that if we get approval we can launch as soon as possible". Data sourced from Guardian.co.uk; additional content by WARC staff, 18 November 2008 Print | Email | Add to Folder Related News StoriesCeo Deserts UK Online Video Joint Venture for Microsoft Top Job - Nov 12, 08 BSkyB Hops Into Project Kangaroo Debate - Sep 19, 08 Free UK Video-on-Demand Service Opposed by US-Owned Rivals - Sep 15, 08 AMERICA'S GENERAL ELECTRIC EYES MEDIA ACQUISITIONS  NEW YORK: General Electric Company, America's largest technology and services operation, is eyeing certain media assets as potential acquisition targets, chief executive Jeffrey Immelt (pictured) revealed to the Financial Times in a weekend interview. In a clear signal that the cash-rich defense-to-broadcasting conglomerate is unbowed by recession, Immelt said the firm's resources will enable it to capitalize on bargains. "There are going to be some opportunities in media consolidation, in infrastructure, oil and gas, aviation", he said. "And my hope is that we can play in some of those as time goes on.” Some observers believe that Immelt's bullish stance could be a ploy to draw-out Vivendi, the holder of a 20% stake in NBC Universal, as the French conglomerate nears its yearly 'put option' under which it can compel GE to buy back its holding in the broadcast giant. Invited by the FT to comment on the Vivendi's situation, Immelt was wary in the extreme, saying only: "They are, and continue to be, great partners." Vivendi too was zip-lipped, although people with an ear to the French company's boardroom door say that it would be reluctant to sell at current bottom-trawling valuations. Earlier this year Vivendi ceo Jean-Bernard Lévy told the FT it was not a short-term seller of the stake, adding with a Gallic shrug: "One day we will probably decide to exit." Data sourced from Financial Times; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesCanal Plus Leads Vivendi to Higher Profits - Sep 2, 08 NBC Highflier Comstock Returns to the Corporate Womb - Mar 5, 08 Vivendi Seeks Acquisition Opportunities in '08 - Mar 4, 08 'A GOOD YEAR FOR PROFITABILITY AND GROWTH', CLAIMS HAVAS CEO  PARIS: Speaking Friday to Dow Jones Newswires, Havas ceo Fernando Rodes Vila (pictured) was in upbeat mood about the group's financial performance in the current year, despite 'impact' from the credit drought and general recessionary influences in the third quarter. Having earlier this year predicted 5% to 6% organic revenue growth for 2008, Rodes Vila trimmed that expectation to between 4.5% and 5%. Advertisers, he said, are delaying spending decisions across all sectors: "We knew the end of 2008 was going to be tougher and slower than the start of the year. But 2008 will still be a good year for profitability and growth." As to prospects for 2009 Rodes Vila was guarded, calling it "too early" to comment. However, he hopes to outperform his peers with growth continuing through the new year. "To be honest, I am not seeing the end of the financial crisis yet," he said, emphasizing that there are no easy solutions to "the phenomenon of eroding consumption". But, emulating his fictional avatar Pangloss, Rodes Vila seemingly believes that "all is for the best in the best of all possible worlds". The present crisis, he opined, "also has a sort of healing effect". Recession could create opportunities, while the upcoming change of government in the US "could create some tailwind" amid the turmoil. Data sourced from Wall Street Journal Online; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesHavas Hikes H1 Profits by More Than 40% - Sep 1, 08 Havas Achieves Best-Yet Increase in H1 Organic Revenues - Jul 28, 08 Havas Unveils Q1 Results - Apr 22, 08 MURDOCH MINOR UPBEAT AT PROSPECTS FOR NEWSCORP'S NEWSPAPERS  MONACO: Addressing last week's Monaco Media Forum, James Murdoch (pictured) said NewsCorp did not subscribe to the metastasizing pessimism about the prospects for newsprint.Emulating Pop's proclivity for finger-wagging, Murdoch minor accused the newspaper publishing business at large of failing to heed customers' changing wishes. "The newspaper industry has spent so much time wringing its hands about things that are exogenous and not enough time thinking about customers' daily lives," he said. He conceded that NewsCorp's titles in the UK are facing pressure from declining adspend and said the company is "reviewing every link in its supply chain". [English translation: squeezing suppliers.] Moreover, revealed the scion, NewsCorp is now using advanced marketing techniques, like using The Sunday Times in the UK to promote other, non-print businesses – a process practised in the world's street markets for several centuries! James, who inherited control of Clan Murdoch's European and Asian businesses last year, said that NewsCorp is now focusing on how to double the size of these businesses within five years. But recent losses on investments in western Europe's ITV and Premiere TVcompanies, along with aborted auctions of assets in Russia and Bulgaria, will have done little to help advance this familial ambition. Data sourced from Financial Times; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesNewsCorp Cuts Profit Forecast - Nov 7, 08 Murdoch Trumpets NewsCorp War Chest - Oct 21, 08 Decaux's Pull-Out from NewsCorp Deal Pleases Shareholders - Oct 16, 08 NEW HAND TO TAKE OMD WORLDWIDE TILLER  NEW YORK: Mainardo de Nardis (pictured), who stepped down as ceo of Aegis Group in May – and has apparently been on 'gardening leave' ever since – will take the mirror role at Omnicom Group's OMDWorldwide, starting early in the first quarter of the new year. The post has been quasi-vacant since the former incumbent's departure eighteen months ago, with Daryl Simm, head of Omnicom Media Group, minding the OMD shop in the interim. Says Simm: "We have had an excellent year with global business with Renault/Nissan, Visa, and Intel [wins]. The business is clearly going in the direction of global client consolidation with more sophisticated needs. "We looked at him [de Nardis] in terms of his profile and with his international experience as ceo of Mediaedge before becoming ceo of Aegis Media, and [his] profile and experience with international business and clients is really a great fit in the context those global client needs." Data sourced from AdAge.com; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesAegis Pays de Nardis £841,000 for Nineteen Weeks Work - Apr 18, 07 WPP's Scrap With Aegis Flares as Italian Probe Widens - Feb 21, 06 Aegis Appointment of Media Chief Raises Key Questions - Oct 25, 05 MARGARET THATCHER'S SPIN DOCTOR TO CHAIR CANNES' NEW PR LIONS  LONDON: It has been ventured by a cynical minority that the Cannes Lions annual gongfest confers a prize for just about every marketing activity other than drawing breath. They were wrong! Out in the cold, denied the comfort of a Lion in their lap since the Awards' inception in 1956, PR executives have languished unacknowledged - except by their bank managers. But take heart! In 2009 this outrageous injustice will at long last be rectified – assuming, of course, that come next summer there will be survivors in the worlds of advertising and PR able to afford the event's delegate fees, plus travel, hotel and champagne bills. Lording it over the brand new PR Lions will be a real live British Lord, albeit one ennobled for political reasons rather than a quirk of birth. He is Lord Tim Bell, famed glove-puppeteer for overseeing three winning election campaigns from 1979-1987 for the UK Conservative Party and prime minister Margaret Thatcher. The curtain-up event at next year's Lions' Den will be the PR prize followed by more proletarian pursuits such as the Direct and Promo Lions. Data sourced from AdAge.com; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesCannes Advertising Festival Gets Underway - Jun 16, 08 P&G To Collect Cannes Honor - Feb 13, 08 Unilever Online Ad Takes Top Cannes Prize - Jun 26, 07 ONLINE AD REVENUES SLUMP AT UK'S LARGEST NEWSPAPER PUBLISHER  LONDON: Trinity Mirror, Britain's largest newspaper publishing group, saw its online ad revenues sag by almost two thirds in the seventeen weeks ended 26 October. During the same period print advertising fell 20.1% after allowing for the disposal and acquisition of businesses since last year's equivalent results. Advertising sales at the group's regional newspapers fell 22.2%, while overall circulation revenue decreased by 5%. In the face of these declines, Trinity has increased its current-year cost reduction target from £20 million ($29.72m; €23.34m) to £25m. The group's portfolio includes more than 350 media brands, among them five national newspapers, over 150 regional titles and 250-plus websites. Data sourced from Financial Times; additional content by WARC staff, 17 November 2008 Print | Email | Add to Folder Related News StoriesGrim Outlook for UK's Largest Newspaper Group - Aug 4, 08 Newspaper Woes Bridge Atlantic - Jul 18, 08 UK's Largest Newspaper Group Issues Profits Warning - Jul 1, 08 RECESSION HITS US DIRECT-TO-CONSUMER PHARMA ADSPEND  NEW YORK: A new study by TNS Media Intelligence shows direct-to-consumer adspend by US pharmaceuticals companies is down for the second year running and unlikely to hit the $5 billion mark by the end of 2008, thereby dashing the hopes of ad-famished media owners. The deceleration is not solely due to credit and recessionary factors; Big Pharma has sailed sublimely through earlier financial crises. Tighter regulation and the lack of new blockbuster drugs have also contributed to the ad shortfall. The TNS study, Advertising Investment Trend Report: Direct-to-Consumer Pharmaceutical Industry, reveals that in the first eight months of 2008, total measured DTC adspend declined year-on-year by 6.3% to $3.175 billion (€2.528bn; £2.114bn). That figure, projected through to the year end equates to $4.76bn in total, versus $5.26bn in 2007 – a fall of over 9%. DTC spending trends over the past decade are ...
1999 $1.6 billion 2000 $2.5 billion 2001 $2.7 billion 2002 $2.6 billion 2003 $3.1 billion 2004 $4.4 billion 2005 $4.6 billion 2006 $5.4 billion 2007 $5.2 billion 2008 $4.7 billion* *Projected by year's end Source:PharmaMarketing News and TNS Media Intelligence Aaaaaaaaaatishoo! Data sourced from AdAge.com; additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesFDA to Remedy Marketing of Medicine to Children - Oct 6, 08 Rules May Change For European Pharma Firms - Oct 6, 08 DTC Ads for Medical Devices Under Senate Scrutiny - Sep 18, 08 SEVEN SHORTLISTED FOR UK WORD OF MOUTH MARKETING AWARDS  LONDON: Seven entries have been shortlisted for prizes at the inaugural Word of Mouth Marketing Awards, organised by WARC in association with WOM UK. Case studies shortlisted include campaigns for O2Aquafresh, Axe/Lynx and STA Travel. The shortlist was decided by an expert panel comprising some of the leading WOM practitioners in the UK. The winning entries will be awarded at WARC's Word of Mouth Marketing Conference to be held in London on Tuesday December 2. Shortlisted for the Grand Prix for the Best Demonstration of Effectiveness are:
"An industry is often defined by the work that it finds award winning. By that measure, WOMM is innovative, coming of age and delivering a significant return. But don't take it from me. Read the papers and see for yourself.”. To book tickets for the Word of Mouth Marketing Masterclass and Awards click here or call Clare Beveridge on +44 (0)1491 418614. Data sourced from WOM UK; additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesAnd America's 'Most Talked About' Brand is . . . - Oct 28, 08 Waterson Steps Down at WARC, Appoints New Chairman and Ceo - Oct 21, 08 Financial Times' Grande to Helm WARC.Com as Editor - Nov 20, 07 DENTSU'S NET INCOME ALMOST HALVED IN FISCAL H1  TOKYO: Dentsu, the planet's fifth largest marketing agency group, suffered a 43.8% fall in net income in the half-year to September 30, posting $76.5 million (€61.04m; £51.06n) based on average exchange rates. Gross revenue at $1.48 billion was down by 5.7%. The overwhelming majority (91%) of these revenues were generated in Japan. Tokyo-headquartered Dentsu said its results were dragged down by weakening private consumption as consumers contend with price increases in gas, groceries and "daily necessities". Added the spokesman: "Furthermore, corporate income decreased due to the effect of an increase in the cost of raw materials and disruption in the U.S. economy, which is causing uncertainty about the future. "In the advertising industry as well, clients are remaining cautious with their advertising spending, and therefore difficulties in the business environment will continue." The group's full-year forecast predicts that net income will drop 30.5% in the year to March 31, 2009, with a 5.4% decline in billings. · Despite the dent in its bottom line, Dentsu confirms that the acquisition of New York agency McGarryBowen is still on course. The shop is America's 38th largest agency ranked by 2007 billings. Data sourced from AdAge.com; additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesCDP Laid to Rest by Dentsu - Oct 3, 08 Dentsu Admits First Foreigner into Inner Sanctum - May 15, 08 Japanese Trio Plan Online Shopping Launch - Nov 28, 07 ONLINE BRITS SUFFERING FROM INFORMATION OVERLOAD, SAYS YAHOO  LONDON: A new study from Yahoo Europe claims that British surfers are suffering from a surfeit of information, so much so, that they deliberately screen-out irrelevant messages. Eighty per cent of respondents consciously disregard the tsunami of irrelevance that bombards them via their computer screens, avers the search portal – an unhappy situation it implies it can overcome by better targeting. With pressures increasing both at work and home, respondents say they have less free time. So when online they want to be as efficient at possible. A large majority of web-users (79%) demand something of value in return for heeding ads, whether that 'something' is pure entertainment, a relevant message or access to learning something new. Says Yahoo Europe's vp of marketing Kristof Fahy: "Consumers are overwhelmed with the constant flow of information they receive on a daily basis. "So businesses need to convince them of the relevance of their messages in order to gain their attention. This means that online marketers need to think hard how to better target and engage with their time-poor audiences. Data sourced from M&M Global; additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesUK TV Industry Hits Back at Online - Jan 24, 08 Deloitte Tips UK Media Industry Trends For 2008 - Jan 24, 08 UK Online Adspend Will Exceed 50% of European Total This Year - Jul 5, 07 GOOGLE STOCK SAGS BELOW $300, LOWEST SINCE 2005  MOUNTAIN VIEW, California: Now the world knows it's a recession. Lehman Brothers, AIG, General Motors – kid's stuff! But when the seemingly impregnable Google sees its stock go south to its lowest level since late 2005, it's time to head for the hills. The shares fell by $20.46 (6.6%) Wednesday to $291.00, more than halving its value in the year to date, reports USA Today. The state of the planet's economy has eroded many companies' ad budgets, which in turn impacts on paid search ads – Google's primary source of income. Citigroup analyst Mark Mahaney cut Google's Q4 earnings and net revenue forecasts by 3%, to $5.03 a share and $4.16 billion, respectively. And for fast-looming 2009, he lowered his earnings and net revenue forecasts by 5%, to $21.18 a share (equating to $17.46bn). Another key factor is Google's cost-per-click charging method. Predicts Collins Stewart analyst Sandeep Aggarwal for Q4 and 2009: "We believe that the high c-p-c inflation Google has been experiencing for the past six quarters is not sustainable and will pressure core search growth." Data sourced from USA Today / Reuters; additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesP&G and Google: The New Laurel and Hardy? - Nov 20, 08 Google and Microsoft in Clash of the Titans over Verizon Tie-up - Nov 10, 08 Google Walks Away from Yahoo Ad Alliance - Nov 6, 08 HARDWARE COSTS TRIGGER LOSS AT GERMANY'S TOP PAY-TV FIRM  UNTERFOEHRING: Market-leading German pay-TV company Premiere has posted a third quarter loss of €89.1 million ($111.89m; £74.53m), mainly attributable to the cost of new anti-piracy hardware. This is the fourth consecutive quarter in which the company has posted a loss, driven by increased cost and the erosion of subscriptions income after hackers gained access to its broadcasts. Premiere responded by commissioning a costly new encryption system that restricts access to its content to paying subscribers only. The company forecast a full-year EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) loss of between €40m to €60m, narrowing the range from €40m to €70m forecast in October. Sales are expected to reach €1.02 billion. Jumping the gun before the inevitable critical broadside, the broadcaster's ceo Mark Williams said it first: "Premiere can do much better," he told reporters during a conference call. Data sourced from Bloomberg.com (Germany); additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesNewsCorp Gains Effective Control of German Pay-TV Group - Apr 16, 08 NewsCorp Boosts Share in Germany's Premiere TV - Feb 25, 08 NewsCorp Buys into German TV, Faces Hostile Alliance Back Home - Jan 9, 08 HAVAS CONSOLIDATES ITS BRITISH MEDIA UNITS  LONDON: Havas, the Paris-headquartered global marketing services conglomerate, is to meld its five UK media businesses into a single unit, headed as ceo by Mark Craze (pictured), currently managing partner at Media Planning Group – known these days by the obligatory initials. In tandem with chairman Lord Alan Watson, former chair of Burson Marsteller Europe, Craze will lead a media group to be known as Havas Media UK. It comprises MPG, Havas Sports, Arena BLM, branded content and PR agency Cake, and digital/direct agency Archibald Ingall Stretton. Havas père claims that HMUK will have collective media billings of £650 million ($975.78m; €777.02m), despite which it will follow a trading model of line-by-line deals for clients. Data sourced from BrandRepublic (UK); additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesMPG's Solution to Ad-Skipping? Unavoidable Ads - Nov 4, 08 Havas Brings Together Sports and Entertainment Agencies - Jun 18, 08 'Face-Up to Climate Change', Consumers Tell Brands - May 12, 08 GERMAN RECESSION IS WORST IN TWELVE YEARS  WIESBADEN: Europe's largest economy shrank by a greater margin in Q3 than predicted by economists, confirming that Germany has entered its worst recession in twelve or more years – driven down by collapsing demand for its exports amid the global financial crisis. GDP fell by a seasonally adjusted 0.5% during the second quarter, reports the Federal Statistics Office in Wiesbaden said Wednesday. Not since 1996 has the nation's economy contracted this much over two consecutive quarters [the official definition of a recession]. As slower global growth saps export demand, German companies have cut-back production, as Bank of America's chief european economist Holger Schmieding acknowledges. "The German recession has begun in earnest and it's very serious. It raises the risk of a German contraction of more than 1% next year and we will have to revise down our forecast for the euro area as well." Data sourced from Bloomberg.com (Germany); additional content by WARC staff, 14 November 2008 Print | Email | Add to Folder Related News StoriesGerman Growth Set to Slow - Oct 20, 08 German Retail Sales Down in July for Second Month Running - Sep 2, 08 Storm Clouds Ahead as German Economy Shrinks - Aug 28, 08 |   HeadlinesNovember 20, 2008US Online Retail Growth Slows P&G and Google: The New Laurel and Hardy? Trustees Will Apply Brakes to BBC Worldwide's Commercial Operations Nielsen Wins Radio Metrics Business for Cumulus and Clear Channel Whispers Abound About New Yahoo-Microsoft Deal Publicis Buys Up Brazilian Digital Agency  November 19, 2008 Johnson & Johnson, Piqued, Pulls Global Olympic Sponsorship China is Now Second Largest Contributor to World Economy Social Networks 'Don't Have Right' to Ad Dollars, Says P&G Honcho UK Agency Body publishes Q3 'Trends in Television' Report Baidu Shares Suffer from Medical Malaise As One PepsiCo Door Shuts at Omnicom, Another PepsiCo Door Opens ITV Produces Code of Conduct for Product Placement November 18, 2008 Yang Bows to the Inevitable, Will Step Down as Yahoo Ceo Britain's BT Links With ITV for Programme Archive Service NewsCorp Strikes Indian TV Deal With Local Entrepreneur YouTube Sees Hulu Coming Up Fast on the Rails - Dollarwise UK Test-Launch for Kangaroo V-O-D in January November 17, 2008 America's General Electric Eyes Media Acquisitions 'A Good Year for Profitability and Growth', Claims Havas Ceo Murdoch Minor Upbeat at Prospects for NewsCorp's Newspapers New Hand to Take OMD Worldwide Tiller Margaret Thatcher's Spin Doctor to Chair Cannes' New PR Lions Online Ad Revenues Slump at UK's Largest Newspaper Publisher November 14, 2008 Recession Hits US Direct-to-Consumer Pharma Adspend Seven Shortlisted for UK Word of Mouth Marketing Awards Dentsu's Net Income Almost Halved in Fiscal H1 Online Brits Suffering from Information Overload, Says Yahoo Google Stock Sags Below $300, Lowest Since 2005 Hardware Costs Trigger Loss at Germany's Top Pay-TV Firm Havas Consolidates its British Media Units German Recession is Worst in Twelve Years   |
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