Smart B2B marketers are embracing the multi-tasking consumer with relevant multi-platform campaigns. Hiring, pay trends bode well for marketers.
New research from Abritron and Edison Media Research indicates that Americans spend about 20 percent more time consuming media (traditional and new media) than they did 10 years ago. Researchers attribute this to the widespread adoption of smartphones and a 26 percent rise in the number of Americans with access to the Internet. Researchers say U.S. consumers now spend 8 hours and 11 minutes per day with radio, TV and the Internet, up from 6 hours and 50 minutes a day in 2001. But are they really paying attention commensurately.
Our take? As a whole, these numbers are quite plausible, but the amount of time consumers and business decision-makers are giving media their undivided attention has likely gone down. Younger consumers are particularly oriented to multi-tasking and the savviest marketers have learned to embrace this trend, rather than fight it.
Keep this in mind as you pore over recent reports from a number of highly reputable pundits and research firms who’ve been lamenting the apparent mismatch between media consumption patterns and media dollars received. Despite the projection that online advertising will increase its share of US major media ad spending by more than 10 percentage points between 2009 and 2015, spending on digital, including internet and mobile, has not yet risen to match consumption patterns, according to research firm eMarketer.
Among the major media of television, Internet, radio, mobile, newspapers and magazines, US adults still spend the most time each day with TV. Researchers at eMarketer estimate that adults watched television for 42.9 percent of the time they spent each day with those media in 2010, and ad dollars align closely, at 42.7 percent. The Internet, by contrast, took up 25.2 percent of adults’ daily media time in 2010, but received just 18.7 percent of US ad spending.
“Those of us focused on the internet channel have complained for years that it hasn’t been getting its fair share of media dollars based on time spent,” said eMarketer CEO Geoff Ramsey in a statement. “However, the precise extent of that imbalance has been shrouded in mystery and exaggeration. Now we know—it’s a gap of 6.5 percentage points.”
Allen Mutter, author of the popular Newsosaur blog observes that newspapers have lost nearly half of their ad revenues in the last five years, yet some analysts believe they still are getting three times more advertising than their readership deserves.
Because the allocation of ad-market share is a zero-sum game, print has to be benefitting at someone's expense. And two notable victims, in this case, are Internet and mobile advertising.
As Mutter notes, the most egregious mismatch discovered by the eMarketer study found that only 0.5 percent of advertising goes to mobile phones even though people spend more than 8 percent of their media time using them. With 25 percent of media mindshare devoted to the Internet and barely 19 percent of ad dollars going to the web, it is being shortchanged, too. This is good news for newspaper publishers because it proves that they have done an excellent job to date of convincing marketers of the value of their medium. Yes, they’ve cornered a disproportionate share of advertising in comparison to other media. We’ll have to see how the pay wall experiment at The New York Times and other leading dailies plays out.
Our take? We salute the time the Times for taking bold action, but it’s just too hard to get savvy consumers to pay for something they’ve been used to getting for free. The Times’ tiered subscription offering is just too confusing—both for subscribers, casual readers and their own customer service department too handle right now—and that will have costly bottom line ramifications down the road. We also expect savvy readers to go in via the backroom of blogs and social networking sites to get the NYT articles they want without being subject to a direct pay-per-read tax. There are simply too many other places to get one news in real-time for free.
Hiring, pay trends bode well for marketers
Companies are shelling out for seasoned marketers with e-commerce skills according to executive search firm, Crandall Associates. VP’s of e-Commerce are commanding $113K to over $200K with Internet marketing directors and interactive creative directors not far behind. What’s more, about 20 percent of those senior marketing folks expect to be hiring themselves in Q2, says Crandall. Meanwhile, new hiring data from Robert Half Associates says 20 percent of companies are looking to hire those with social media skills and 16 percent are looking to hire those with media services expertise. This data mirrors overall corporate hiring trends. Last week, Business Roundtable’s quarterly survey of CEOs found that 52 percent of companies planned to hire workers in the U.S. over the next six months and just 11 percent said the plan to reduce their workforces. That’s the widest gap hiring versus cutback gap ever recorded in the nine-year history of the survey.
And what kind of social marketing activity demonstrates the best ROI for companies? Almost three in five (59%) companies surveyed by MarketingProfs.com said “Ratings and reviews” provided the most bang for the buck, followed by “Your company/brand community” (56%) and “Your company/brand blog” (48%). These activities outpaced such tactics as “Participating in industry blogs and forums, Facebook, Twitter and Linked In (41% to 28% respectively).
So, it looks like companies are willing to pay more for real talent again instead of hiring what they can get at recession-era bargain rates. We’re betting that the next wave of high performing marketers are not only those with in-demand skills today, but those who can adapt their skills—and campaigns—to meet an ever-changing set of market conditions.
VCRGD6XDXT3T
Wednesday, April 13, 2011
Saturday, March 26, 2011
Is This Ad Spending Recovery for Real?
Upbeat mood helps twitter following. Social media usage drives mobile device satisfaction, but declining call quality and proposed AT&T merger could be fly in mobile growth ointment.
Yesterday’s revised numbers from the U.S. Commerce Department indicated the economy is growing at a faster—i.e. less anemic rate—than previously believed. Government GNP prognosticators Friday upped their estimate of Q4 economic growth to an annualized rate of 3.1 percent from a 2.8 percent estimate issued last month.
On the media side, a just-released report from Kantar Media said total advertising expenditures increased 6.5 percent in 2010, buoyed by a strong fourth quarter and a big push from small advertisers outside the Top 1000. Internet display advertising increased 9.9 percent over 2009, cable TV rose 9.8 percent and network TV spending surged 5.3 percent. Expenditures in consumer magazines were up 3.3 percent, but B2B magazines dropped another 1.2 percent, and local newspapers sank 4.6 percent—its 21st consecutive quarterly decline.
Our take? Consumer, businesses and lenders have become less pessimistic about homes and jobs. TV, mobile and the Internet will continue to thrive this year—we expect double digit gains. If we can find any cheer on the print side, it is that ad pages in the Finance category were up 9.3 percent according to year-end 2010 PIB numbers and ad pages from Technology sponsors were up 2.3 percent. Tech and finance are two of the most important, and most cyclical, sectors for many of our clients and we expect to see more long-form thought leadership campaigns in 2011, not the direct response or mass branding campaigns that have dragged down other print categories.
Upbeat mood helps Twitter following
A new Indiana University research paper says that people who use Twitter congregate online according to their mood, not just by age or similar interests. For example, the research, found that people who send Twitter messages that include the word “loneliness” also tend to flock together on Twitter. To understand how mood plays a role in the camaraderie of people on social networks, researchers monitored 102,009 active Twitter users for six months. The researchers then applied a psychology theory, “subjective well-being,” to each message to understand its mood. The results found that people who are happier on the social network tend to re-tweet or reply to others who are happy, too. The same results were found with those who were unhappy.
The researchers summarized that “online social networks may be equally subject to the social mechanisms” that govern the real world, where real-life interaction can revolve around mood and feeling, too.
Active mobile users are active online searchers
According to the NEW BIGresearch Simultaneous Media Usage Survey, mobile users who actively search for information, such as news, sports and TV/videos, are more likely than general consumers to conduct regular product research online. When it comes to searching for financial information and services, active mobile users are nearly twice as likely as general consumers to conduct regular product research on online. When it comes to sharing online research findings, nearly 97 percent of all active mobile users say they give advice about products and services, and word of mouth (face-to-face) is the most prominent means.
Cell phone service quality continues to disappoint
If it seems you’re losing more calls than usual on your mobile phone these days you’re not alone. On top of the proposed AT&T / T-Mobile merger which could eliminate choice and advantageous competitive pricing for consumers, the quality of wireless phone calls has hit a plateau, according to J.D. Power and Associates. According to Power, one major driver is the increasing number of cellphone calls placed or answered indoors, as people use their cellphones to replace or supplement landlines. Indoor calls tend to be fuzzier than outdoor calls, because the signal must penetrate walls and windows to reach the tower. Regardless of where the calls were made, J.D. Power said the quality on all handsets — both smartphones and traditional cellphones — seemed to have worsened over the last six months, with smartphones eliciting more complaints than traditional handsets.
But last week, overall satisfaction with smartphones and traditional mobile phones is considerably higher among owners who use their devices for social media activity, compared with satisfaction among owners who do not access social media platforms on their phones, according to the J.D. Power and Associates 2011 U.S. Wireless Smartphone Customer Satisfaction Study.
Among smartphone owners who use their device to access social media sites such as Twitter, LinkedIn and Facebook, satisfaction averages 783 on a 1,000-point scale—nearly 22 points higher than among those smartphone owners who do not often use social media sites on their device. Currently, more than one-half of smartphone owners report having used their device to access social media sites via the mobile Web or mobile applications. While rates of mobile social media site usage are not nearly as high among owners of traditional mobile phones (9%, on average), satisfaction among traditional handset owners who use their device for social media is notably higher than that of traditional handset owners who don’t access social media (754 vs. 696).
“It’s not unexpected that smartphone owners access social media sites from their device more frequently than traditional mobile phone owners due to features such as larger screens and QWERTY keyboards,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates in a news release. “However, these findings demonstrate that equipping devices with powerful features and service is key to creating positive customer experiences with wireless devices.”
For a fifth consecutive time, Apple ranks highest among manufacturers of smartphones in customer satisfaction with a score of 795 and performs particularly well in ease of operation, operating system, features and physical design. Motorola (763) and HTC (762) follow Apple in the smartphone rankings. Sanyo ranks highest in overall wireless customer satisfaction with traditional handsets with a score of 715. Sanyo performs well in three factors: physical design, battery functionality and operation. LG (711) and Samsung (703) follow Sanyo in the traditional handset rankings.
Once again, innovation and dedication to customer service carry the day. Customers are better armed than ever before to share their experiences with the masses. Thanks to mobile technology, social networking and the web, the strong players—with a disproportionate share of happy customers happily sharing their stories--will further distance themselves from the laggards.
VCRGD6XDXT3T
Yesterday’s revised numbers from the U.S. Commerce Department indicated the economy is growing at a faster—i.e. less anemic rate—than previously believed. Government GNP prognosticators Friday upped their estimate of Q4 economic growth to an annualized rate of 3.1 percent from a 2.8 percent estimate issued last month.
On the media side, a just-released report from Kantar Media said total advertising expenditures increased 6.5 percent in 2010, buoyed by a strong fourth quarter and a big push from small advertisers outside the Top 1000. Internet display advertising increased 9.9 percent over 2009, cable TV rose 9.8 percent and network TV spending surged 5.3 percent. Expenditures in consumer magazines were up 3.3 percent, but B2B magazines dropped another 1.2 percent, and local newspapers sank 4.6 percent—its 21st consecutive quarterly decline.
Our take? Consumer, businesses and lenders have become less pessimistic about homes and jobs. TV, mobile and the Internet will continue to thrive this year—we expect double digit gains. If we can find any cheer on the print side, it is that ad pages in the Finance category were up 9.3 percent according to year-end 2010 PIB numbers and ad pages from Technology sponsors were up 2.3 percent. Tech and finance are two of the most important, and most cyclical, sectors for many of our clients and we expect to see more long-form thought leadership campaigns in 2011, not the direct response or mass branding campaigns that have dragged down other print categories.
Upbeat mood helps Twitter following
A new Indiana University research paper says that people who use Twitter congregate online according to their mood, not just by age or similar interests. For example, the research, found that people who send Twitter messages that include the word “loneliness” also tend to flock together on Twitter. To understand how mood plays a role in the camaraderie of people on social networks, researchers monitored 102,009 active Twitter users for six months. The researchers then applied a psychology theory, “subjective well-being,” to each message to understand its mood. The results found that people who are happier on the social network tend to re-tweet or reply to others who are happy, too. The same results were found with those who were unhappy.
The researchers summarized that “online social networks may be equally subject to the social mechanisms” that govern the real world, where real-life interaction can revolve around mood and feeling, too.
Active mobile users are active online searchers
According to the NEW BIGresearch Simultaneous Media Usage Survey, mobile users who actively search for information, such as news, sports and TV/videos, are more likely than general consumers to conduct regular product research online. When it comes to searching for financial information and services, active mobile users are nearly twice as likely as general consumers to conduct regular product research on online. When it comes to sharing online research findings, nearly 97 percent of all active mobile users say they give advice about products and services, and word of mouth (face-to-face) is the most prominent means.
Cell phone service quality continues to disappoint
If it seems you’re losing more calls than usual on your mobile phone these days you’re not alone. On top of the proposed AT&T / T-Mobile merger which could eliminate choice and advantageous competitive pricing for consumers, the quality of wireless phone calls has hit a plateau, according to J.D. Power and Associates. According to Power, one major driver is the increasing number of cellphone calls placed or answered indoors, as people use their cellphones to replace or supplement landlines. Indoor calls tend to be fuzzier than outdoor calls, because the signal must penetrate walls and windows to reach the tower. Regardless of where the calls were made, J.D. Power said the quality on all handsets — both smartphones and traditional cellphones — seemed to have worsened over the last six months, with smartphones eliciting more complaints than traditional handsets.
But last week, overall satisfaction with smartphones and traditional mobile phones is considerably higher among owners who use their devices for social media activity, compared with satisfaction among owners who do not access social media platforms on their phones, according to the J.D. Power and Associates 2011 U.S. Wireless Smartphone Customer Satisfaction Study.
Among smartphone owners who use their device to access social media sites such as Twitter, LinkedIn and Facebook, satisfaction averages 783 on a 1,000-point scale—nearly 22 points higher than among those smartphone owners who do not often use social media sites on their device. Currently, more than one-half of smartphone owners report having used their device to access social media sites via the mobile Web or mobile applications. While rates of mobile social media site usage are not nearly as high among owners of traditional mobile phones (9%, on average), satisfaction among traditional handset owners who use their device for social media is notably higher than that of traditional handset owners who don’t access social media (754 vs. 696).
“It’s not unexpected that smartphone owners access social media sites from their device more frequently than traditional mobile phone owners due to features such as larger screens and QWERTY keyboards,” said Kirk Parsons, senior director of wireless services at J.D. Power and Associates in a news release. “However, these findings demonstrate that equipping devices with powerful features and service is key to creating positive customer experiences with wireless devices.”
For a fifth consecutive time, Apple ranks highest among manufacturers of smartphones in customer satisfaction with a score of 795 and performs particularly well in ease of operation, operating system, features and physical design. Motorola (763) and HTC (762) follow Apple in the smartphone rankings. Sanyo ranks highest in overall wireless customer satisfaction with traditional handsets with a score of 715. Sanyo performs well in three factors: physical design, battery functionality and operation. LG (711) and Samsung (703) follow Sanyo in the traditional handset rankings.
Once again, innovation and dedication to customer service carry the day. Customers are better armed than ever before to share their experiences with the masses. Thanks to mobile technology, social networking and the web, the strong players—with a disproportionate share of happy customers happily sharing their stories--will further distance themselves from the laggards.
VCRGD6XDXT3T
Monday, March 07, 2011
Don’t Be Fooled by Psychological Benchmarks on Labor, Oil Prices
Time for B2B marketers to shine
Like the Dow 10,000, the 4-minute mile and the .300 hitter, we’ve always been fascinated with benchmark numbers. Is a .302 hitter really that much better than a .299 hitter? No. Is your 401k really worse off when the Dow dips to 9,992 from 10,003? Of course not.
So, when Friday’s labor report came out about brisk hiring in February pushing the U.S. unemployment rate below 9.0 percent for the first time in nearly two years, forgive us for not popping the champagne corks. Sure an 8.9 percent unemployment rate marks a real milestone not since before the recession, it’s just a number that ignores how much ground the economy has yet to regain. It also hides the more disturbing trend of people dropping out of the labor force—primarily recent graduates and highly experienced workers. That’s the kind of folks we need out there the most—high energy and high experience—whether you’re in software, financial services, driving a bus, hauling waste management or teaching.
NY Times columnist, Paul Krugman, points out today that most of work still being done by humans today is work that can’t be easily automated. That goes for manual labor as well as for white collar information workers. And the tables are shifting on those two fronts as U.S. white collar jobs are increasingly being automated and manual labor jobs are increasingly becoming specialized. Check out Paul’s take on this 21st century conundrum here
One key gauge of the labor market's health—the labor force participation rate, which measures the percentage of adults who have jobs or are seeking them—remains stuck at its lowest point since the mid-1980s. But, as the Wall Journal’s Phil Izzo and Morgan Stanley Economist, David Greenlaw explain, “a low participation rate both saps the economy's long-term growth potential and can obscure deeper problems in the labor market. If, for example, labor force participation today were at the same level as before the recession, the jobless rate would have been 11.5 percent in February.”
As of February, 4.4 million people had been out of work for more than a year. The labor force participation rate stood at 64.2 percent, down from 66 percent in December 2007 when the recession began. We expect the jobless “rate” to go back up over 9 percent in the coming months as formerly discouraged workers rejoin the job hunt process. That’s still a positive sign of slow, steady improvement. Don’t let next month’s jobs report stall you’re hiring or expansion plans.
Impact of $100+ per barrel oil
Unfortunately, employers and consumers must deal with the implications of the rising price of oil, which hit a 2.5-year high, closing at $104.42 a barrel Friday. Is it going to hurt? Yep. Many reliable sources are predicting $4 or $5 per gallon at the pump as we head into peak summer driving season. While Libya accounts for just a small fraction of world oil output—which Saudi Arabia has told us they could easily cover—it’s the uncertainly, not true supply and demand that’s driving this price spike. Unfortunately, rapidly rising prices not only hurt consumers and businesses immediately as it costs more to commute, shop, fly, run their equipment, etc. The price shock cuts into profits, hiring plans and consumer shopping plans as real hourly wages have gone up only one cent this year for those lucky enough to be employed.
Hiring picture brighter for media professionals
Despite all the agita described above, the lift in “intention to hire” is the biggest in 11 years according to researchers at Bernhart Associates who conducted a survey of digital and direct marketers. If the Fed and naturally occurring economic drivers can’t stimulate demand, that’s where great marketing and sales follow up comes in. And no one does that better than U.S. media mavens.
VCRGD6XDXT3T
Like the Dow 10,000, the 4-minute mile and the .300 hitter, we’ve always been fascinated with benchmark numbers. Is a .302 hitter really that much better than a .299 hitter? No. Is your 401k really worse off when the Dow dips to 9,992 from 10,003? Of course not.
So, when Friday’s labor report came out about brisk hiring in February pushing the U.S. unemployment rate below 9.0 percent for the first time in nearly two years, forgive us for not popping the champagne corks. Sure an 8.9 percent unemployment rate marks a real milestone not since before the recession, it’s just a number that ignores how much ground the economy has yet to regain. It also hides the more disturbing trend of people dropping out of the labor force—primarily recent graduates and highly experienced workers. That’s the kind of folks we need out there the most—high energy and high experience—whether you’re in software, financial services, driving a bus, hauling waste management or teaching.
NY Times columnist, Paul Krugman, points out today that most of work still being done by humans today is work that can’t be easily automated. That goes for manual labor as well as for white collar information workers. And the tables are shifting on those two fronts as U.S. white collar jobs are increasingly being automated and manual labor jobs are increasingly becoming specialized. Check out Paul’s take on this 21st century conundrum here
One key gauge of the labor market's health—the labor force participation rate, which measures the percentage of adults who have jobs or are seeking them—remains stuck at its lowest point since the mid-1980s. But, as the Wall Journal’s Phil Izzo and Morgan Stanley Economist, David Greenlaw explain, “a low participation rate both saps the economy's long-term growth potential and can obscure deeper problems in the labor market. If, for example, labor force participation today were at the same level as before the recession, the jobless rate would have been 11.5 percent in February.”
As of February, 4.4 million people had been out of work for more than a year. The labor force participation rate stood at 64.2 percent, down from 66 percent in December 2007 when the recession began. We expect the jobless “rate” to go back up over 9 percent in the coming months as formerly discouraged workers rejoin the job hunt process. That’s still a positive sign of slow, steady improvement. Don’t let next month’s jobs report stall you’re hiring or expansion plans.
Impact of $100+ per barrel oil
Unfortunately, employers and consumers must deal with the implications of the rising price of oil, which hit a 2.5-year high, closing at $104.42 a barrel Friday. Is it going to hurt? Yep. Many reliable sources are predicting $4 or $5 per gallon at the pump as we head into peak summer driving season. While Libya accounts for just a small fraction of world oil output—which Saudi Arabia has told us they could easily cover—it’s the uncertainly, not true supply and demand that’s driving this price spike. Unfortunately, rapidly rising prices not only hurt consumers and businesses immediately as it costs more to commute, shop, fly, run their equipment, etc. The price shock cuts into profits, hiring plans and consumer shopping plans as real hourly wages have gone up only one cent this year for those lucky enough to be employed.
Hiring picture brighter for media professionals
Despite all the agita described above, the lift in “intention to hire” is the biggest in 11 years according to researchers at Bernhart Associates who conducted a survey of digital and direct marketers. If the Fed and naturally occurring economic drivers can’t stimulate demand, that’s where great marketing and sales follow up comes in. And no one does that better than U.S. media mavens.
VCRGD6XDXT3T
Thursday, February 17, 2011
Time Warner Leverages SI Swimsuit Issue to Launch All-Access Subscription Model
Watch out for ‘brain drain’ at your company as economy improves
In case you somehow missed it, the annual midwinter Oogle-palooza for the publishing industry, aka. the Sports Illustrated Swimsuit Issue hit newsstands, mailboxes and inboxes this week and once again managed to raise eyebrows and male pulse rates. But, this year the buzz wasn’t just about the risqué swim attire, which included see-through suits, body paint suits, and one “suit” which consisted of nothing more than a strategically placed kayak paddle. According to Bloomberg Sports (see video report), Time Warner is using its billion-dollar Swimsuit Issue franchise as a launching pad for its new “all-access” subscription model. Here’s the bet—raise subscription prices 23 percent in hopes that subscribers (and advertisers) will buy into SI’s full range of content delivery platforms including digital, online, mobile and tablet (other than Apple-i).
Our take? Even without Apple on board, the all-access model is a good call will gain traction throughout the publishing business as some content – action sports, celebrities, how-to and yes near-naked women—is simply more compelling with audio and video streaming than words on a page. However, we don’t like the strategy of charging subscribers—and presumably advertisers, more for the privilege. It shouldn’t be treated as a premium offering so much as a must-have for any publisher hoping to survive and stay relevant 11 years into the new century.
Just as most publishers are still figuring out newsstand sales by the number of returns they receive nine months later and are still sending annoying renewal notices—rather than billing subscribers’ credit cards via negative option—they need to get out of the quaint mindset of being publishers and realize they’re competing against bloggers, social networks, software companies, mobile apps, cable companies and telecom’s for subscriber/advertiser mindshare. It’s a faster, more cut-throat game than they’re used to—with smarter, hungrier players who generally pay their staffs better to come up with ideas.
Producer price index hits highest level in 27 months
On Wednesday, the Labor Department reported that producer prices in the United States rose in January. The core index, which excludes the volatile food and energy sectors, rose 0.5 percent, the biggest jump in 27 months, the agency said. Yesterday, The Fed announced it expected economic growth of 3.4 percent to 3.9 percent this year, up from the previous forecast of 3 percent to 3.6 percent. Even Fed head Ben Bernanke said “the economy is straightening out” but joblessness could remain high for several more years as companies continue to post profits with a smaller workforce than they had before.
Brain drain on the horizon at your company?
Our take? Despite the lousy job and housing market, the latest economic growth report, coupled with the recent rise in consumer and producer prices shows we’re essentially operating in a non-recessionary climate. It’s hardly a go-go era, but essential staples for households and businesses are being purchased on an ongoing basis and of course, advertising and marketing spend will have to grow to lift demand.
Here in the B2B media business, we don’t put too much stake in the jobs reports. Our industry has always been a fluid one based on ideas and contacts—not raw output or years of service you’ve put in at the same company or government organization. We’ve always relied on a deep pool of experienced independent contractors to get things done and there’s more than enough work to go around—it just doesn’t fit into the W2+B (steady paycheck, plus benefits) hiring model.
What’s more, the lift in “intention to hire” is the biggest in 11 years according to researchers at Bernhart Associates who conducted a survey of digital and direct marketers.
As New York Times columnist Bob Herbert pointed out last week, businesses have figured out how to prosper without putting the unemployed back to work in jobs that pay well and offer decent benefits. Corporate profits and the stock markets are way up. Businesses are sitting atop mountains of cash. Put people back to work? Forget about it. Has anyone bothered to notice that much of those profits are the result of aggressive payroll-cutting —companies making do with fewer, less well-paid and harder-working employees?
Unfortunately, Bob (and corporate America), you have to look at the long-term viability of “doing more with less.” Just as your customer prospect pipeline dries up when you cut back too far on your advertising and marketing programs, too many workers who’ve been doing double- and triple-duty to hold onto their jobs during the downturn are simply getting exhausted and not seeing commensurate increases in compensation or status for holding the fort down during the depths of the recession. They’re out the door as soon as the first decent opportunity comes along. Many organizations will be facing a serious “experience vacuum” as knowledgeable workers bolt for the doors and take their smarts, contacts and ideas they were too afraid (or disgruntled to share) with them.
It will take years for the influx of newbies to get up to speed and become productive. Let’s hope you’re treating your best people as well as you can right now. Now that the economy’s on the rebound, your toughest test is yet to come. Gotta go now. They just posted behind the scenes videos about the making of the Swimsuit Issue. The Twittersphere’s abuzz with rumors of wardrobe malfunctions.
VCRGD6XDXT3T
In case you somehow missed it, the annual midwinter Oogle-palooza for the publishing industry, aka. the Sports Illustrated Swimsuit Issue hit newsstands, mailboxes and inboxes this week and once again managed to raise eyebrows and male pulse rates. But, this year the buzz wasn’t just about the risqué swim attire, which included see-through suits, body paint suits, and one “suit” which consisted of nothing more than a strategically placed kayak paddle. According to Bloomberg Sports (see video report), Time Warner is using its billion-dollar Swimsuit Issue franchise as a launching pad for its new “all-access” subscription model. Here’s the bet—raise subscription prices 23 percent in hopes that subscribers (and advertisers) will buy into SI’s full range of content delivery platforms including digital, online, mobile and tablet (other than Apple-i).
Our take? Even without Apple on board, the all-access model is a good call will gain traction throughout the publishing business as some content – action sports, celebrities, how-to and yes near-naked women—is simply more compelling with audio and video streaming than words on a page. However, we don’t like the strategy of charging subscribers—and presumably advertisers, more for the privilege. It shouldn’t be treated as a premium offering so much as a must-have for any publisher hoping to survive and stay relevant 11 years into the new century.
Just as most publishers are still figuring out newsstand sales by the number of returns they receive nine months later and are still sending annoying renewal notices—rather than billing subscribers’ credit cards via negative option—they need to get out of the quaint mindset of being publishers and realize they’re competing against bloggers, social networks, software companies, mobile apps, cable companies and telecom’s for subscriber/advertiser mindshare. It’s a faster, more cut-throat game than they’re used to—with smarter, hungrier players who generally pay their staffs better to come up with ideas.
Producer price index hits highest level in 27 months
On Wednesday, the Labor Department reported that producer prices in the United States rose in January. The core index, which excludes the volatile food and energy sectors, rose 0.5 percent, the biggest jump in 27 months, the agency said. Yesterday, The Fed announced it expected economic growth of 3.4 percent to 3.9 percent this year, up from the previous forecast of 3 percent to 3.6 percent. Even Fed head Ben Bernanke said “the economy is straightening out” but joblessness could remain high for several more years as companies continue to post profits with a smaller workforce than they had before.
Brain drain on the horizon at your company?
Our take? Despite the lousy job and housing market, the latest economic growth report, coupled with the recent rise in consumer and producer prices shows we’re essentially operating in a non-recessionary climate. It’s hardly a go-go era, but essential staples for households and businesses are being purchased on an ongoing basis and of course, advertising and marketing spend will have to grow to lift demand.
Here in the B2B media business, we don’t put too much stake in the jobs reports. Our industry has always been a fluid one based on ideas and contacts—not raw output or years of service you’ve put in at the same company or government organization. We’ve always relied on a deep pool of experienced independent contractors to get things done and there’s more than enough work to go around—it just doesn’t fit into the W2+B (steady paycheck, plus benefits) hiring model.
What’s more, the lift in “intention to hire” is the biggest in 11 years according to researchers at Bernhart Associates who conducted a survey of digital and direct marketers.
As New York Times columnist Bob Herbert pointed out last week, businesses have figured out how to prosper without putting the unemployed back to work in jobs that pay well and offer decent benefits. Corporate profits and the stock markets are way up. Businesses are sitting atop mountains of cash. Put people back to work? Forget about it. Has anyone bothered to notice that much of those profits are the result of aggressive payroll-cutting —companies making do with fewer, less well-paid and harder-working employees?
Unfortunately, Bob (and corporate America), you have to look at the long-term viability of “doing more with less.” Just as your customer prospect pipeline dries up when you cut back too far on your advertising and marketing programs, too many workers who’ve been doing double- and triple-duty to hold onto their jobs during the downturn are simply getting exhausted and not seeing commensurate increases in compensation or status for holding the fort down during the depths of the recession. They’re out the door as soon as the first decent opportunity comes along. Many organizations will be facing a serious “experience vacuum” as knowledgeable workers bolt for the doors and take their smarts, contacts and ideas they were too afraid (or disgruntled to share) with them.
It will take years for the influx of newbies to get up to speed and become productive. Let’s hope you’re treating your best people as well as you can right now. Now that the economy’s on the rebound, your toughest test is yet to come. Gotta go now. They just posted behind the scenes videos about the making of the Swimsuit Issue. The Twittersphere’s abuzz with rumors of wardrobe malfunctions.
VCRGD6XDXT3T
Tuesday, January 25, 2011
Don’t Let the Dow and Prez Fool You. Economy’s Got a Long Way to Go
But, smart B2B marketers uncover great opportunities in all economies. Let the Super Bowl, not Washington or Wall Street, guide you in 2011.
You can expect the President to put forth the rosiest picture possible in his State of the Union Address tonight as the Dow crossed the 12,000 barrier for the first time since mid-2008. Factory production, retail sales and existing home sales are rising, while unemployment claims are holding steady or slightly declining in many parts of the country.
Between standing Obama-vations from the Democratic half of the audience, The Prez will likely gloss over some persistent drags on the economy beyond the obvious “jobless recovery.” Not only is the official out-of-work rate stuck around 9.4 percent, but with the slight uptick in economic conditions, many of the long-term jobless who’ve simply given up are returning to the job search game. That will likely drive the jobless RATE even higher. Meanwhile most state and local governments are broke and won’t be able to meet their pension obligations or payrolls much longer unless they continue gouging businesses and homeowners in their districts. Many parts of Europe remain unstable, China is flirting with hyper-inflation and higher food and energy prices could throw a wet blanket on household spending.
Mind you. We’re not predicting more doom and gloom here. Just be smart, so you can make the most of this recovery. Pessimism solves nothing. Remember back in April 2009when everyone else was ducking and covering? We called the end of the recession and followed it up a few weeks later with a sunny assessment of the media landscape.
Why we’re being pinpoint bullish: Super Bowl
What we like about the financial markets this time around is that most of the run up is based on legit corporate earnings and the overall market P/E is in the teens--relatively cheap by historical standards. And then there’s the Super Bowl.
Chevy and GM are back after a two-year hiatus. As many as nine card brands may be jockeying for position to pay $3 mil for 30 seconds of your time in what’s typically the most-watched TV program of the year. We’re not so much encouraged by the game day air time as by the pre-game run up—starting up to 4 weeks out and driven by online and social media. The smart money also says to look for social couponing giant Groupon to join the fray. This could signal wide scale acceptance of the social couponing category and a possible resurgence of the IPO market.
“While we’re clearly seeing a recovery, it will be more muted than after other downturns,” Zenith Optimedia CEO, Steve King, said in a statement earlier this month. It will take until at least 2012 to match 2008 overall ad spending levels, he added. Zenith predicts Internet advertising will increase 48 percent from 2011 to 2013, followed by commercial TV, movie theater ads (+19%), outdoor advertising (+18%) and radio up 10 percent, with print advertising falling two percent.
Making sense of converging media
No one honestly knows which platform, device or gadget is going to be the true winner in this decade of media convergence. And do we really have to crown a king? Blogger Seth Godin had a nice way of sorting out the landscape in his post last week.
“I don't believe this is a winner take all situation, any more than one bestselling book makes all other books obsolete,” wrote Godin. “I think different pillars work for different devices, and there will continue to be winners in all of them.”
So look beyond the dizzying array of technology and media consumptions options we’re facing. If the intense competition for our screens, brains and wallets brings us more options with better service and realistic pricing, then we say Amen to the chaos. Bring it on.
VCRGD6XDXT
You can expect the President to put forth the rosiest picture possible in his State of the Union Address tonight as the Dow crossed the 12,000 barrier for the first time since mid-2008. Factory production, retail sales and existing home sales are rising, while unemployment claims are holding steady or slightly declining in many parts of the country.
Between standing Obama-vations from the Democratic half of the audience, The Prez will likely gloss over some persistent drags on the economy beyond the obvious “jobless recovery.” Not only is the official out-of-work rate stuck around 9.4 percent, but with the slight uptick in economic conditions, many of the long-term jobless who’ve simply given up are returning to the job search game. That will likely drive the jobless RATE even higher. Meanwhile most state and local governments are broke and won’t be able to meet their pension obligations or payrolls much longer unless they continue gouging businesses and homeowners in their districts. Many parts of Europe remain unstable, China is flirting with hyper-inflation and higher food and energy prices could throw a wet blanket on household spending.
Mind you. We’re not predicting more doom and gloom here. Just be smart, so you can make the most of this recovery. Pessimism solves nothing. Remember back in April 2009when everyone else was ducking and covering? We called the end of the recession and followed it up a few weeks later with a sunny assessment of the media landscape.
Why we’re being pinpoint bullish: Super Bowl
What we like about the financial markets this time around is that most of the run up is based on legit corporate earnings and the overall market P/E is in the teens--relatively cheap by historical standards. And then there’s the Super Bowl.
Chevy and GM are back after a two-year hiatus. As many as nine card brands may be jockeying for position to pay $3 mil for 30 seconds of your time in what’s typically the most-watched TV program of the year. We’re not so much encouraged by the game day air time as by the pre-game run up—starting up to 4 weeks out and driven by online and social media. The smart money also says to look for social couponing giant Groupon to join the fray. This could signal wide scale acceptance of the social couponing category and a possible resurgence of the IPO market.
“While we’re clearly seeing a recovery, it will be more muted than after other downturns,” Zenith Optimedia CEO, Steve King, said in a statement earlier this month. It will take until at least 2012 to match 2008 overall ad spending levels, he added. Zenith predicts Internet advertising will increase 48 percent from 2011 to 2013, followed by commercial TV, movie theater ads (+19%), outdoor advertising (+18%) and radio up 10 percent, with print advertising falling two percent.
Making sense of converging media
No one honestly knows which platform, device or gadget is going to be the true winner in this decade of media convergence. And do we really have to crown a king? Blogger Seth Godin had a nice way of sorting out the landscape in his post last week.
“I don't believe this is a winner take all situation, any more than one bestselling book makes all other books obsolete,” wrote Godin. “I think different pillars work for different devices, and there will continue to be winners in all of them.”
So look beyond the dizzying array of technology and media consumptions options we’re facing. If the intense competition for our screens, brains and wallets brings us more options with better service and realistic pricing, then we say Amen to the chaos. Bring it on.
VCRGD6XDXT
Friday, December 24, 2010
More tipping points have tipped as we tip a glass to 2010
Online advertising to eclipse newspapers ads with video a key driver. Display closing in on paid search. Sneaky contextual ads not fooling DVR owners and liberal arts still matter for fostering entrepreneurship.
When the year-end ad spending totals come in early next month, many forecasters expect to see more dollars under the online advertising column than the newspaper advertising column in 2010 -- including advertising in newspaper online editions. Assuming these projections hold true, it would mark another major milestone for online advertising.
"It's something we've seen coming for a long time, but this is a tipping point," said eMarketer CEO Geoff Ramsey, in a statement. "Marketers are devoting bigger shares of their budgets to digital media as they see more customers shifting time toward the Web."
Ramsey’s widely cited research expects online ad spending to grow 13.9 percent to $25.8 billion, while advertisers are expected to spend just $22.8 billion on print newspaper ads -- down 8.2 percent year-over-year. Ramsey told Online Media Daily Tuesday that increased consumer use of the Web isn't the only reason marketers are putting more dollars online. "The bad economy has actually accelerated the shift to digital advertising," Ramsey said. "Online ads -- especially search ads -- are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result."
By 2014, eMarketer predicts that growth in spending on online display ads will outstrip that for paid search -- although search will continue to take a greater share of dollars. This year, both search and display are on track to outpace overall U.S. online ad spending, estimated by eMarketer at just under 14 percent. The increase in display advertising will be driven partly by the dramatic rise predicted in online video advertising, set to grow by at least 34 percent every year through 2014. Banner ads will experience more moderate gains of between 7 percent and 16 percent annually, while rich media spending will stagnate.
Do Timeshifting Viewers Pay Attention to commercials in playback?
If you missed our post last week, we shared our take on the new research showing internet viewership has caught up TV. On Tuesday Nielsen trumpteted new findings trying to debunk the myth that time-shifting DVR viewers are NOT skipping through the ads. The DVR is now in nearly 40 percent of U.S. homes. As Nielsen noted, it’s a double-edged sword for advertisers. On one hand, DVRs enable TV networks to hold on to viewers who use time-shifting to watch their favorite shows when it is convenient for them and who might otherwise seek alternate ways to watch programming – or not watch at all. On the other hand, DVRs allow viewers to skip content that doesn’t interest them, including commercials, potentially undermining TV’s longtime ad-supported business model. In its latest report on DVR usage, The Nielsen Company highlighted a number of key findings, including:
• Viewers do watch commercials on their DVRs. Among DVR homes, playback lifts commercial ratings by 44 percent among 18-49s after three days. Among all 18-49 year-old viewers DVR playback adds 16% to commercial ratings after three days
• More than 38% of DVR users are over age 45.
• When DVR playback is included, DVR households watch more primetime programming than non-DVR households.
• Overall, 49% of time-shifted primetime broadcast programming is played back the same day it was recorded, and 88% is played back within 3 days.
• DVR playback peaks at 9pm and 10pm.
Download the full report DVR Use in the U.S.
Here’s our take: While it’s true about 40 percent of US homes have DVRs, and we agree with Nielsen that DVR owners watch more TV and commercials overall than they would otherwise, and the contextual ads within popular shows are getting better and more seamless. However, Nielsen found the most popular time for playback mode is 8-9pm prime time. And as Don Seaman, director of communications analysis for the media agency MPG [mpg.com] told the New York Times earlier this week, even if DVR users are theoretically watching commercials in playback mode, they’re not doing so with their undivided attention – they’re the ones most likely to be milti-taksing he said, -- texting, Facbooking etc during the commercials, using that as “down time” to do other things until the commercial is over.”
Why liberal arts still matter….entrepreneurship
If you think innovation is the province of those trained in engineering, computer science and high finance, we’d like to remind you that great ideas can come from anyone, anywhere any time, and we suggest your organization makes a full on effort in 2011 to expand its horizons beyond the Product Development Group. Peter Katopes, Interim President, of LaGuardia Community College in Queens, NY had a great Letter to the Editor in Tuesday’s New York Times that caught our attention.
Here’s the gist of it: “If it is true that the ‘jobs of the future’ will be different from those of the present and that we need the ‘best and the brightest minds’ to confront future challenges, then what could we better offer our young people than to train their minds through the liberal arts? To confront problems that have not been encountered before requires both a grounding in the past and the skills and understanding to make sense of today’s world.
As for the question of jobs, we hear much about the need for entrepreneurs in business and technology, but what we also need for future prosperity will be an entrepreneurship of the imagination, encouraged by a rigorous immersion in the liberal arts, which might lead to currently unthought-of solutions to currently unimagined problems.“
Amen Peter.
Have a safe, happy Holiday and let’s hit the ground running together in 2011.
VCRGD6XDXT3T
When the year-end ad spending totals come in early next month, many forecasters expect to see more dollars under the online advertising column than the newspaper advertising column in 2010 -- including advertising in newspaper online editions. Assuming these projections hold true, it would mark another major milestone for online advertising.
"It's something we've seen coming for a long time, but this is a tipping point," said eMarketer CEO Geoff Ramsey, in a statement. "Marketers are devoting bigger shares of their budgets to digital media as they see more customers shifting time toward the Web."
Ramsey’s widely cited research expects online ad spending to grow 13.9 percent to $25.8 billion, while advertisers are expected to spend just $22.8 billion on print newspaper ads -- down 8.2 percent year-over-year. Ramsey told Online Media Daily Tuesday that increased consumer use of the Web isn't the only reason marketers are putting more dollars online. "The bad economy has actually accelerated the shift to digital advertising," Ramsey said. "Online ads -- especially search ads -- are increasingly seen by many marketers as a more reliable bet than print ads, which are often difficult to tie to a measurable financial result."
By 2014, eMarketer predicts that growth in spending on online display ads will outstrip that for paid search -- although search will continue to take a greater share of dollars. This year, both search and display are on track to outpace overall U.S. online ad spending, estimated by eMarketer at just under 14 percent. The increase in display advertising will be driven partly by the dramatic rise predicted in online video advertising, set to grow by at least 34 percent every year through 2014. Banner ads will experience more moderate gains of between 7 percent and 16 percent annually, while rich media spending will stagnate.
Do Timeshifting Viewers Pay Attention to commercials in playback?
If you missed our post last week, we shared our take on the new research showing internet viewership has caught up TV. On Tuesday Nielsen trumpteted new findings trying to debunk the myth that time-shifting DVR viewers are NOT skipping through the ads. The DVR is now in nearly 40 percent of U.S. homes. As Nielsen noted, it’s a double-edged sword for advertisers. On one hand, DVRs enable TV networks to hold on to viewers who use time-shifting to watch their favorite shows when it is convenient for them and who might otherwise seek alternate ways to watch programming – or not watch at all. On the other hand, DVRs allow viewers to skip content that doesn’t interest them, including commercials, potentially undermining TV’s longtime ad-supported business model. In its latest report on DVR usage, The Nielsen Company highlighted a number of key findings, including:
• Viewers do watch commercials on their DVRs. Among DVR homes, playback lifts commercial ratings by 44 percent among 18-49s after three days. Among all 18-49 year-old viewers DVR playback adds 16% to commercial ratings after three days
• More than 38% of DVR users are over age 45.
• When DVR playback is included, DVR households watch more primetime programming than non-DVR households.
• Overall, 49% of time-shifted primetime broadcast programming is played back the same day it was recorded, and 88% is played back within 3 days.
• DVR playback peaks at 9pm and 10pm.
Download the full report DVR Use in the U.S.
Here’s our take: While it’s true about 40 percent of US homes have DVRs, and we agree with Nielsen that DVR owners watch more TV and commercials overall than they would otherwise, and the contextual ads within popular shows are getting better and more seamless. However, Nielsen found the most popular time for playback mode is 8-9pm prime time. And as Don Seaman, director of communications analysis for the media agency MPG [mpg.com] told the New York Times earlier this week, even if DVR users are theoretically watching commercials in playback mode, they’re not doing so with their undivided attention – they’re the ones most likely to be milti-taksing he said, -- texting, Facbooking etc during the commercials, using that as “down time” to do other things until the commercial is over.”
Why liberal arts still matter….entrepreneurship
If you think innovation is the province of those trained in engineering, computer science and high finance, we’d like to remind you that great ideas can come from anyone, anywhere any time, and we suggest your organization makes a full on effort in 2011 to expand its horizons beyond the Product Development Group. Peter Katopes, Interim President, of LaGuardia Community College in Queens, NY had a great Letter to the Editor in Tuesday’s New York Times that caught our attention.
Here’s the gist of it: “If it is true that the ‘jobs of the future’ will be different from those of the present and that we need the ‘best and the brightest minds’ to confront future challenges, then what could we better offer our young people than to train their minds through the liberal arts? To confront problems that have not been encountered before requires both a grounding in the past and the skills and understanding to make sense of today’s world.
As for the question of jobs, we hear much about the need for entrepreneurs in business and technology, but what we also need for future prosperity will be an entrepreneurship of the imagination, encouraged by a rigorous immersion in the liberal arts, which might lead to currently unthought-of solutions to currently unimagined problems.“
Amen Peter.
Have a safe, happy Holiday and let’s hit the ground running together in 2011.
VCRGD6XDXT3T
Friday, December 17, 2010
Internet Viewership Catches Up to TV
Income still a factor in digital divide. Twitter use overstated?
While many have predicted that the Internet would inevitably become the most-watched communications medium some day, a new Forrester Research study confirms that day may be already here. The average U.S. household watches 13 hours weekly of traditional broadcast TV, equaling the same amount of hours spent online, according to Forrester. The report, released Monday, bases the findings on Forrester's survey of more than 30,000 consumers.
As you might expect, Gen Yers, ages 18 to 30, spent equal or more time with the Internet, and for the first time, Gen Xers ages 31 to 44 followed suit. Younger Boomers, ages 45 to 54, also now spend an equal amount of time with both media. Researchers said the amount of time spent watching TV has remained constant in the past five years, but Internet use has risen 121 percent since 2005.
Our take? It’s not so much the device, it’s the convenience factor of the web and the feeling of control. Consumers (and business decision makers) aren’t going to be told what to watch and when. They’ll consume it on their own terms--if you're relevant.
Look at mobile for instance. The percentage of mobile users who report texting on a monthly basis jumped from 61 percent from 54 percent, with an increasing amount of older users communicating beyond phone calls. In fact, one in four online mobile owners now log on to the mobile Internet. More than one-third of Gen Yers online mobile consumers connect at least monthly. About 200 million consumers now access their Facebook pages through a mobile device globally, according to Forrester.
The Forrester study found nearly one-quarter of U.S. interactive marketers plan to pilot mobile search programs in the next 12 months. Meanwhile, as Online Media Daily reported yesterday, the convenience of “search anywhere, anytime” has become a major attraction for mobile users. About 16 percent of online mobile users now use their mobile phone to check news, sports, or weather, and 13 percent look up directions or maps. When Forrester analyzed individuals who access the mobile Internet at least weekly, the numbers skyrocketed to 60 percent and 52 percent, respectively. Researchers indicate news, stocks and sports scores are what they’re seeking most although we suggest they’re not looking at music, event tickets and adult entertainment. Most telling for us is that the heaviest mobile users are most likely male and college-educated, and their average household income is more than $92,000.
So the web, for all its open access, democratization of the world’s information remains tilted toward the more affluent and better educated members of the populace. Internet usage still tilts toward the affluent and the well-educated.
Household income remains the greatest predictor of Internet use for Americans, according to a recent study by the Pew Research Center. In both their access to and use of the Internet and a suite of other technological devices and applications, households earning more than $75,000 a year significantly outpace lower-earning households, particularly those making less than $30,000 a year.
While 95 percent of high-income households use the Internet at home in some fashion, just 57 percent of the poorest do. The well-off are also more likely to own cellphones, computers, e-readers and other entertainment devices.
Unsurprisingly, the wealthy engage in online commerce and search for health information more often. However, while there is relatively little disparity across income brackets for consumption of television and print news sources, the richest households are more than twice as likely as the poorest to read online news.
“The correlation between income and participation in many Internet activities might be expected,” said Jim Jansen, a senior fellow at Pew. “What is surprising is the scale. It really shows the impact that income has on leveraging the advantages of the Internet.”
OMG! Who uses twitter?
A new study released this week by the Pew Research Center found that only 8 percent of Americans who were active on the Internet are enthusiastic users of twitter and only about 2 percent were extremely active/daily users. This compares to 74 percent of adult Americans who actively use the Internet. Among the highly active, they check in several times a day to see primarily what new content has been posted. As expected, the heaviest users were techies, marketers and young urbanites, but surprisingly, Latinos and African Americans were twice as likely as whites to use it – Pew did not have an explanation for that and that would sure balance the research pointing to the affluent hogging their share of the world’s bandwidth.
So, what’s all this mean for B2B marketers? It means your customers (and their bosses) need a compelling story about what makes your product/service so great. You need a story that works as well in words and pictures as it does in video form and on a mobile device. You need a story that’s stays fresh and relevant, but at the same time, can be told as well next Thursday or three weeks from today as it can right now.
Next time we’ll talk about thought leadership content that’s dynamic and real-time yet has sustainable shelf life. It ain’t easy, but what really is these days?
VCRGD6XDXT3T
While many have predicted that the Internet would inevitably become the most-watched communications medium some day, a new Forrester Research study confirms that day may be already here. The average U.S. household watches 13 hours weekly of traditional broadcast TV, equaling the same amount of hours spent online, according to Forrester. The report, released Monday, bases the findings on Forrester's survey of more than 30,000 consumers.
As you might expect, Gen Yers, ages 18 to 30, spent equal or more time with the Internet, and for the first time, Gen Xers ages 31 to 44 followed suit. Younger Boomers, ages 45 to 54, also now spend an equal amount of time with both media. Researchers said the amount of time spent watching TV has remained constant in the past five years, but Internet use has risen 121 percent since 2005.
Our take? It’s not so much the device, it’s the convenience factor of the web and the feeling of control. Consumers (and business decision makers) aren’t going to be told what to watch and when. They’ll consume it on their own terms--if you're relevant.
Look at mobile for instance. The percentage of mobile users who report texting on a monthly basis jumped from 61 percent from 54 percent, with an increasing amount of older users communicating beyond phone calls. In fact, one in four online mobile owners now log on to the mobile Internet. More than one-third of Gen Yers online mobile consumers connect at least monthly. About 200 million consumers now access their Facebook pages through a mobile device globally, according to Forrester.
The Forrester study found nearly one-quarter of U.S. interactive marketers plan to pilot mobile search programs in the next 12 months. Meanwhile, as Online Media Daily reported yesterday, the convenience of “search anywhere, anytime” has become a major attraction for mobile users. About 16 percent of online mobile users now use their mobile phone to check news, sports, or weather, and 13 percent look up directions or maps. When Forrester analyzed individuals who access the mobile Internet at least weekly, the numbers skyrocketed to 60 percent and 52 percent, respectively. Researchers indicate news, stocks and sports scores are what they’re seeking most although we suggest they’re not looking at music, event tickets and adult entertainment. Most telling for us is that the heaviest mobile users are most likely male and college-educated, and their average household income is more than $92,000.
So the web, for all its open access, democratization of the world’s information remains tilted toward the more affluent and better educated members of the populace. Internet usage still tilts toward the affluent and the well-educated.
Household income remains the greatest predictor of Internet use for Americans, according to a recent study by the Pew Research Center. In both their access to and use of the Internet and a suite of other technological devices and applications, households earning more than $75,000 a year significantly outpace lower-earning households, particularly those making less than $30,000 a year.
While 95 percent of high-income households use the Internet at home in some fashion, just 57 percent of the poorest do. The well-off are also more likely to own cellphones, computers, e-readers and other entertainment devices.
Unsurprisingly, the wealthy engage in online commerce and search for health information more often. However, while there is relatively little disparity across income brackets for consumption of television and print news sources, the richest households are more than twice as likely as the poorest to read online news.
“The correlation between income and participation in many Internet activities might be expected,” said Jim Jansen, a senior fellow at Pew. “What is surprising is the scale. It really shows the impact that income has on leveraging the advantages of the Internet.”
OMG! Who uses twitter?
A new study released this week by the Pew Research Center found that only 8 percent of Americans who were active on the Internet are enthusiastic users of twitter and only about 2 percent were extremely active/daily users. This compares to 74 percent of adult Americans who actively use the Internet. Among the highly active, they check in several times a day to see primarily what new content has been posted. As expected, the heaviest users were techies, marketers and young urbanites, but surprisingly, Latinos and African Americans were twice as likely as whites to use it – Pew did not have an explanation for that and that would sure balance the research pointing to the affluent hogging their share of the world’s bandwidth.
So, what’s all this mean for B2B marketers? It means your customers (and their bosses) need a compelling story about what makes your product/service so great. You need a story that works as well in words and pictures as it does in video form and on a mobile device. You need a story that’s stays fresh and relevant, but at the same time, can be told as well next Thursday or three weeks from today as it can right now.
Next time we’ll talk about thought leadership content that’s dynamic and real-time yet has sustainable shelf life. It ain’t easy, but what really is these days?
VCRGD6XDXT3T
Tuesday, December 07, 2010
Ad spending to end 2010 on uptick. Modest growth projected for 2011
More ways to reach consumers. Harder to connect with them.
Up, down and sideways. How’s that for clarity? Forecasters speaking at yesterday’s UBS global media and communications conference in NYC predicted that 2010 would end with an increase ranging from 5 to 7 percent in worldwide ad spending over last year. For example, ad revenue for Time Warner's publishing unit was up 5 percent through September after declines of 10 percent and 22 percent in 2008 and 2009, respectively. The total number of ad pages industry-wide declined 1.6 percent through September after declines of 11.7 percent in 2008 and 25.6 percent in 2009, according to the Publishers Information Bureau.
Time Warner announced Monday a reorganization of its sales and marketing units to make it easier for marketers to buy across media properties and platforms. Industry wide U.S. media companies and ad companies have been benefiting from an uptick in spending on TV and Internet ads. Spending on TV ads in the U.S. is expected to climb 7.7 percent to $56.5 billion in 2010, while outlays on Internet ads are expected to grow 13.8 percent to $23.1 billion, according to Zenith Optimedia.
Spending on digital ads remains one of the bright spots in the business, ad executives say. GroupM said it expects global ad spending on Internet ads to overtake spending on newspaper ads at some point in 2012.
As for 2011, most forecasters at yesterday’s UBS media conference expected muted growth in 2011—something in the 4 to 5 percent range as there will not be a plethora of biannual or quadrennial sports/political events to give the ad economy a boost.
As Danielle Sacks noted in Fast Company recently, the explosion of search, geotargeting, the iPad, mobile apps and other platforms give marketers an unprecedented number of tools to work with to pinpoint messaging to target customers. But all those options—which we feel are still in the “experimental phase” for many media decision makers—mean more fragmented media budgets and fragmented consumer attention. Ironically, there have never been more ways to reach consumers, but it’s never been harder to connect with them.
Whether you’re a media owner, B2B marketer or analyst, here’s our take for 2011. The opportunities and dollars are out there—and so are your customers--but we’re in a very opportunistic short-term buying cycle. Customers are armed with more ammunition than ever before. They’re going to be extremely choosy before committing to “sweaty palms” purchasing decisions. As a result, we expect media buyers will be constantly tweaking and revising their budgets.
The days of the 12-month or 24-month “schedule” are fading fast in the rearview mirror. You can still get that business over the same time horizon, but you’re going to have to keep winning that business every couple of months.
If you’re in B2B then we advise you to follow the 4 Bs: Be fast. Be smart. Be agile. Be adaptable.
VCRGD6XDXT3T
Up, down and sideways. How’s that for clarity? Forecasters speaking at yesterday’s UBS global media and communications conference in NYC predicted that 2010 would end with an increase ranging from 5 to 7 percent in worldwide ad spending over last year. For example, ad revenue for Time Warner's publishing unit was up 5 percent through September after declines of 10 percent and 22 percent in 2008 and 2009, respectively. The total number of ad pages industry-wide declined 1.6 percent through September after declines of 11.7 percent in 2008 and 25.6 percent in 2009, according to the Publishers Information Bureau.
Time Warner announced Monday a reorganization of its sales and marketing units to make it easier for marketers to buy across media properties and platforms. Industry wide U.S. media companies and ad companies have been benefiting from an uptick in spending on TV and Internet ads. Spending on TV ads in the U.S. is expected to climb 7.7 percent to $56.5 billion in 2010, while outlays on Internet ads are expected to grow 13.8 percent to $23.1 billion, according to Zenith Optimedia.
Spending on digital ads remains one of the bright spots in the business, ad executives say. GroupM said it expects global ad spending on Internet ads to overtake spending on newspaper ads at some point in 2012.
As for 2011, most forecasters at yesterday’s UBS media conference expected muted growth in 2011—something in the 4 to 5 percent range as there will not be a plethora of biannual or quadrennial sports/political events to give the ad economy a boost.
As Danielle Sacks noted in Fast Company recently, the explosion of search, geotargeting, the iPad, mobile apps and other platforms give marketers an unprecedented number of tools to work with to pinpoint messaging to target customers. But all those options—which we feel are still in the “experimental phase” for many media decision makers—mean more fragmented media budgets and fragmented consumer attention. Ironically, there have never been more ways to reach consumers, but it’s never been harder to connect with them.
Whether you’re a media owner, B2B marketer or analyst, here’s our take for 2011. The opportunities and dollars are out there—and so are your customers--but we’re in a very opportunistic short-term buying cycle. Customers are armed with more ammunition than ever before. They’re going to be extremely choosy before committing to “sweaty palms” purchasing decisions. As a result, we expect media buyers will be constantly tweaking and revising their budgets.
The days of the 12-month or 24-month “schedule” are fading fast in the rearview mirror. You can still get that business over the same time horizon, but you’re going to have to keep winning that business every couple of months.
If you’re in B2B then we advise you to follow the 4 Bs: Be fast. Be smart. Be agile. Be adaptable.
VCRGD6XDXT3T
Tuesday, November 23, 2010
Thanksgiving Food for Thought
Stop your bellyaching. Reduce restrictions on education, science and entrepreneurship and let high potential startups get big fast.
If you’re going to a Thanksgiving gathering of more than three or four people this week, chances are the dinner table conversation will eventually veer toward politics and the economy. Trust us on this. The football games. All your nieces and nephews are way above average in everything they do, and Aunt Mildred’s gall bladder operation will get tiresome after an hour or so.
While your relatives are moaning about their bloated tummies and underfed 401(k)s, try this for fun. Remind them that (a) we have a lot to be thankful for and (b) economists have predicted 27 of the last three recessions and the Great Economic Disruption we’re still struggling to emerge from wasn’t technically a recession--much less a depression.
Say what?
That’s right. It’s just been a period of extremely “slow growth” according to Forbes Publisher, Rich Karlgaard’s latest blog post
Now you might get a fork in the eye from a family member who’s recently lost a job, a home, been transferred far away or been forced into early retirement. But Kaarlgard argues we’ve been so accustomed to economic growth rates of four percent or more, that when it gets down to one or two percent, it actually feels like a contraction.
Since 2008 the U.S. economy has performed slightly better than flat. In 2008, 2009 and (projected) 2010, the U.S. GDP was (and is), $14.3 trillion, $14.2 trillion and $14.6 trillion.
Experts say the American economy has averaged 3.3 percent growth annually since World War II. But even small changes in GDP cause big swings in stock market values, investor animal spirits, and consumer sentiment, says Karlgaard. That’s why 4 percent growth feels like a boom, 2 percent growth feels like a recession, and flat feels like the 1930s. Karlgaard argues that America is in a “growth recession” which is anemic growth of less than three percent, but still growth statistically speaking.
The Kauffman Foundation, says the key to getting the economy booming again is directly correlated to startups that get big.
Kauffman’s Carl Schramm has said on several occasions that “the single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within 20 years.” Schramm says the U.S. economy, given its large size, needs to incubate 75 to 125 billion-dollar startups per year to feed the country’s post World War II rate of growth. Faster growth requires even more successful startups.
While the strength of the Forune 1000 certainly helps the overall economy, entrepreneurship has always been the key. But, even though small business is credited with creating the bulk of new jobs, Schramm says that’s not enough either.
He says we need an “X-factor” –a hundred or so companies, per year, that launch, find a market, execute, scale, learn, adjust and sail over the billion-dollar mark within two decades. They don’t have to be Googlesque. But they’ve got to be bigger than Mom, Pop and Uncle Joe.
If we’re going to get those 100 stars to the launching pad, Schramm says we better get serious about removing the tax and regulatory barriers for these kinds of startups with the potential to scale.
For example: how about any immigrant who graduates from a U.S. university should get a green card along with his/her diploma? So should any immigrant who starts a business that grows to more than 5 people on the payroll. Ambitious immigrants, disproportionately, create growth companies.
Chances are there’s a family elder around your Thanksgiving table that fits this description. They may not know an app from a nap, but they probably had super-size helpings of courage (and cajones) and didn't stop looking for new customers and serving their existing customers just because times got tough. We guarantee you’ll learn something.
VCRGD6XDXT3T
If you’re going to a Thanksgiving gathering of more than three or four people this week, chances are the dinner table conversation will eventually veer toward politics and the economy. Trust us on this. The football games. All your nieces and nephews are way above average in everything they do, and Aunt Mildred’s gall bladder operation will get tiresome after an hour or so.
While your relatives are moaning about their bloated tummies and underfed 401(k)s, try this for fun. Remind them that (a) we have a lot to be thankful for and (b) economists have predicted 27 of the last three recessions and the Great Economic Disruption we’re still struggling to emerge from wasn’t technically a recession--much less a depression.
Say what?
That’s right. It’s just been a period of extremely “slow growth” according to Forbes Publisher, Rich Karlgaard’s latest blog post
Now you might get a fork in the eye from a family member who’s recently lost a job, a home, been transferred far away or been forced into early retirement. But Kaarlgard argues we’ve been so accustomed to economic growth rates of four percent or more, that when it gets down to one or two percent, it actually feels like a contraction.
Since 2008 the U.S. economy has performed slightly better than flat. In 2008, 2009 and (projected) 2010, the U.S. GDP was (and is), $14.3 trillion, $14.2 trillion and $14.6 trillion.
Experts say the American economy has averaged 3.3 percent growth annually since World War II. But even small changes in GDP cause big swings in stock market values, investor animal spirits, and consumer sentiment, says Karlgaard. That’s why 4 percent growth feels like a boom, 2 percent growth feels like a recession, and flat feels like the 1930s. Karlgaard argues that America is in a “growth recession” which is anemic growth of less than three percent, but still growth statistically speaking.
The Kauffman Foundation, says the key to getting the economy booming again is directly correlated to startups that get big.
Kauffman’s Carl Schramm has said on several occasions that “the single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within 20 years.” Schramm says the U.S. economy, given its large size, needs to incubate 75 to 125 billion-dollar startups per year to feed the country’s post World War II rate of growth. Faster growth requires even more successful startups.
While the strength of the Forune 1000 certainly helps the overall economy, entrepreneurship has always been the key. But, even though small business is credited with creating the bulk of new jobs, Schramm says that’s not enough either.
He says we need an “X-factor” –a hundred or so companies, per year, that launch, find a market, execute, scale, learn, adjust and sail over the billion-dollar mark within two decades. They don’t have to be Googlesque. But they’ve got to be bigger than Mom, Pop and Uncle Joe.
If we’re going to get those 100 stars to the launching pad, Schramm says we better get serious about removing the tax and regulatory barriers for these kinds of startups with the potential to scale.
For example: how about any immigrant who graduates from a U.S. university should get a green card along with his/her diploma? So should any immigrant who starts a business that grows to more than 5 people on the payroll. Ambitious immigrants, disproportionately, create growth companies.
Chances are there’s a family elder around your Thanksgiving table that fits this description. They may not know an app from a nap, but they probably had super-size helpings of courage (and cajones) and didn't stop looking for new customers and serving their existing customers just because times got tough. We guarantee you’ll learn something.
VCRGD6XDXT3T
Wednesday, November 10, 2010
Quantitative Easing Not Relieving Qualitative Pain
But, stocks, housing, private sector jobs and Wall Street bonuses are on the rise. Financial, tech and airline sectors are rebounding with marketing dollars in tow. Why B2B marketers need to act now.
Maybe it took what the President called a good old fashioned “shellacking” of his party in last week’s midterm elections to get the Administration to see how far out of favor they have fallen from the business community, not to mention conservative and independent voters. When we say business community, we’re talking everyone from your local small businesses to the Fortune 500. Mr. Obama said he needed to "make clear to the business community, as well as to the country, that the most important thing we can do is to boost and encourage our business sector and make sure that they're hiring.”
Business runway getting longer
“The legislative uncertainty that’s kept businesses on their heels the past several years is starting to lift,” said Jeffrey Kleintop, chief market strategist at LPL Financial [www.lpl.com], whom several of us met yesterday at a financial advisor conference in New York. “The Fed’s been a little clearer about what it wants to do and that’s giving businesses a longer runway.”
As just about everyone on the planet knows by now, the Federal Reserve said it would buy $600 billion of U.S. government bonds over the next eight months to drive down interest rates and encourage more borrowing and growth. The strategy, officially known as “quantitative easing” (QE2) has had a positive effect on the financial markets, but could backfire in the long run.
If not managed carefully, the Fed’s spending spree on government bonds could be highly inflationary, since it would flood the economy with money and raise worries about too much government spending. Also, it could continue driving down the value of the U.S. dollar which gets other countries pretty pissed. Why? Because a weaker dollars hurts their exports and can spike inflation in their own countries as outside capital surges in from investors seeking better returns than they’re finding in U.S. markets. The Prez may want to wear a helmet and mouth guard to the G-20 Summit starting in South Korea tomorrow.
That said, we like E2’s chances of succeeding at this stage of the business cycle if it’s deployed gradually and intelligently – two big IFs. In addition to the impact of cheaper borrowing, higher stock prices (see below) could encourage households to spend more and businesses to invest more, and a weak dollar could make U.S. exports cheaper and thus easier to sell in normal times.
Why B2B marketers need to act now
Instead of waiting around for the all-clear signal for the government: here are some of our own leading indicators that the worst is over and now is the time to invest for the surge in consumer and B2B demand that’s likely to pass you by if you’re not ready:
Finance and tech ad rebound continues in business magazines
According to MediaWeek data released last week, ad pages in Forbes are up a whopping 353 percent from this time a year ago, Fortune is up 88 percent, Fast Company is up nearly 58 percent, Entrepreneur is more than 52 percent ahead of last year’s pace and Wired is up 11.4 percent. The leading brands depend overwhelmingly on the technology and financial services sector and generally run longer and more complex media schedules as they have to reach buyers in a long-term sales cycle with multiple purchase decision influencers to win over.
Airlines rebounding
After collectively losing $26 billion during the previous two years, according to the International Air Transport Association (IATA) www.iata.org, the majority of national and international carriers are reporting one of their most profitable quarters in years (for the 3 months ended 9/30) and they’re on track to be in the black again by nearly $9 billion. IATA says average fares for first-class and business travel within North America are up a whopping 140 percent from this time a year ago and up about 20 percent for travel to Europe. Air travel is one of the first things to go when consumers and businesses are pessimistic about their bottom lines. We’re very bullish on this trend and travel-related advertising dollars should start flowing back to leading brands in all media categories serving consumer and B2B.
Wall Street bonuses up
Investment banks and financial firms are planning to dole out larger paychecks and bonuses this year than in 2009. Top Wall Street pay consultant Alan Johnson says he expects compensation by Wall Street firms to rise 5 percent in 2010. The Wall Street Journal projected a similar rise. A recent survey of financial firms by our friends at eFinancial Careers said they expect higher pay in 2010 than they received a year ago. While the number of people working in high finance is tiny compared to the number of people working on Main Street, they account for a disproportionate share of wealth (and consumer spending) and that usually trickles down into main street as well as ad spending by Main Street-supported businesses.
Stock markets up
As of this posting, the Dow and S&P 500 are both up about 8.8 percent for the year and the broader based Wilshire 5000 is up nearly 11 percent. Investors are showing more confidence in the equity markets and have reduced their cash holdings to 17 percent from 21 percent according to a recent Capgemini survey of high net worth individuals. Add to this microscopic interest rates and the likelihood that the Bush tax cuts are likely to be extended by at least one or two more years according to LPL’s Kleintop – “it’s the legislative path of least resistance” – and you’ve got a pretty favorable equities climate.
Private sector job gain
Sure unemployment’s stuck at 9.6 percent, but while the government is shedding jobs at a disturbing clip, more private sector jobs have been created this year than during the entire Bush administration. That’s right. 2010 has had more private job creation than during the entire 8 year tenure of George W. Bush.
According to The Department of Labor, this is the ninth straight month of private sector job growth in the midst of a devastating recession that has put a serious strain mostly on the poor and middle class. There have been a total of 863,000 private sector jobs created in 2010, exceeding the total created under the Bush/Cheney regime. We don’t make this stuff up, the DOL does.
Housing
Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of Realtors. Existing-home sales, jumped 10 percent to a seasonally adjusted annual rate of over 4.5 million in September from a 4.1 million in August. In a late October news release, Lawrence Yun, NAR’s chief economist, said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
Entrepreneurship
Whether or not we ever return to a 95 to 96 percent rate of “full employment,” the steady-paycheck lifestyle of a loyal employee dedicating one’s career to a single large manufacturing or corporate service entity is pretty much over.
If you’ve ever thought about starting your own business, read Seth Godin’s recent post How can you do it?!
The timing may never be better.
Remember, things were never quite as good as they seemed in the frenzied years leading up to the Great Disruption, and now they’re not as bad as the media, economists and out-of-favor politicians would lead you to believe. The time strike is while the iron’s getting hot; not when it looks, smells and feels like it really is hot. By that time it’s too late as someone else has already taken the iron and formed it into their own shape and vision.
VCRGD6XDXT3T
Maybe it took what the President called a good old fashioned “shellacking” of his party in last week’s midterm elections to get the Administration to see how far out of favor they have fallen from the business community, not to mention conservative and independent voters. When we say business community, we’re talking everyone from your local small businesses to the Fortune 500. Mr. Obama said he needed to "make clear to the business community, as well as to the country, that the most important thing we can do is to boost and encourage our business sector and make sure that they're hiring.”
Business runway getting longer
“The legislative uncertainty that’s kept businesses on their heels the past several years is starting to lift,” said Jeffrey Kleintop, chief market strategist at LPL Financial [www.lpl.com], whom several of us met yesterday at a financial advisor conference in New York. “The Fed’s been a little clearer about what it wants to do and that’s giving businesses a longer runway.”
As just about everyone on the planet knows by now, the Federal Reserve said it would buy $600 billion of U.S. government bonds over the next eight months to drive down interest rates and encourage more borrowing and growth. The strategy, officially known as “quantitative easing” (QE2) has had a positive effect on the financial markets, but could backfire in the long run.
If not managed carefully, the Fed’s spending spree on government bonds could be highly inflationary, since it would flood the economy with money and raise worries about too much government spending. Also, it could continue driving down the value of the U.S. dollar which gets other countries pretty pissed. Why? Because a weaker dollars hurts their exports and can spike inflation in their own countries as outside capital surges in from investors seeking better returns than they’re finding in U.S. markets. The Prez may want to wear a helmet and mouth guard to the G-20 Summit starting in South Korea tomorrow.
That said, we like E2’s chances of succeeding at this stage of the business cycle if it’s deployed gradually and intelligently – two big IFs. In addition to the impact of cheaper borrowing, higher stock prices (see below) could encourage households to spend more and businesses to invest more, and a weak dollar could make U.S. exports cheaper and thus easier to sell in normal times.
Why B2B marketers need to act now
Instead of waiting around for the all-clear signal for the government: here are some of our own leading indicators that the worst is over and now is the time to invest for the surge in consumer and B2B demand that’s likely to pass you by if you’re not ready:
Finance and tech ad rebound continues in business magazines
According to MediaWeek data released last week, ad pages in Forbes are up a whopping 353 percent from this time a year ago, Fortune is up 88 percent, Fast Company is up nearly 58 percent, Entrepreneur is more than 52 percent ahead of last year’s pace and Wired is up 11.4 percent. The leading brands depend overwhelmingly on the technology and financial services sector and generally run longer and more complex media schedules as they have to reach buyers in a long-term sales cycle with multiple purchase decision influencers to win over.
Airlines rebounding
After collectively losing $26 billion during the previous two years, according to the International Air Transport Association (IATA) www.iata.org, the majority of national and international carriers are reporting one of their most profitable quarters in years (for the 3 months ended 9/30) and they’re on track to be in the black again by nearly $9 billion. IATA says average fares for first-class and business travel within North America are up a whopping 140 percent from this time a year ago and up about 20 percent for travel to Europe. Air travel is one of the first things to go when consumers and businesses are pessimistic about their bottom lines. We’re very bullish on this trend and travel-related advertising dollars should start flowing back to leading brands in all media categories serving consumer and B2B.
Wall Street bonuses up
Investment banks and financial firms are planning to dole out larger paychecks and bonuses this year than in 2009. Top Wall Street pay consultant Alan Johnson says he expects compensation by Wall Street firms to rise 5 percent in 2010. The Wall Street Journal projected a similar rise. A recent survey of financial firms by our friends at eFinancial Careers said they expect higher pay in 2010 than they received a year ago. While the number of people working in high finance is tiny compared to the number of people working on Main Street, they account for a disproportionate share of wealth (and consumer spending) and that usually trickles down into main street as well as ad spending by Main Street-supported businesses.
Stock markets up
As of this posting, the Dow and S&P 500 are both up about 8.8 percent for the year and the broader based Wilshire 5000 is up nearly 11 percent. Investors are showing more confidence in the equity markets and have reduced their cash holdings to 17 percent from 21 percent according to a recent Capgemini survey of high net worth individuals. Add to this microscopic interest rates and the likelihood that the Bush tax cuts are likely to be extended by at least one or two more years according to LPL’s Kleintop – “it’s the legislative path of least resistance” – and you’ve got a pretty favorable equities climate.
Private sector job gain
Sure unemployment’s stuck at 9.6 percent, but while the government is shedding jobs at a disturbing clip, more private sector jobs have been created this year than during the entire Bush administration. That’s right. 2010 has had more private job creation than during the entire 8 year tenure of George W. Bush.
According to The Department of Labor, this is the ninth straight month of private sector job growth in the midst of a devastating recession that has put a serious strain mostly on the poor and middle class. There have been a total of 863,000 private sector jobs created in 2010, exceeding the total created under the Bush/Cheney regime. We don’t make this stuff up, the DOL does.
Housing
Existing-home sales rose again in September, affirming that a sales recovery has begun, according to the National Association of Realtors. Existing-home sales, jumped 10 percent to a seasonally adjusted annual rate of over 4.5 million in September from a 4.1 million in August. In a late October news release, Lawrence Yun, NAR’s chief economist, said the housing market is in the early stages of recovery. “A housing recovery is taking place but will be choppy at times depending on the duration and impact of a foreclosure moratorium. But the overall direction should be a gradual rising trend in home sales with buyers responding to historically low mortgage interest rates and very favorable affordability conditions,” he said.
Entrepreneurship
Whether or not we ever return to a 95 to 96 percent rate of “full employment,” the steady-paycheck lifestyle of a loyal employee dedicating one’s career to a single large manufacturing or corporate service entity is pretty much over.
If you’ve ever thought about starting your own business, read Seth Godin’s recent post How can you do it?!
The timing may never be better.
Remember, things were never quite as good as they seemed in the frenzied years leading up to the Great Disruption, and now they’re not as bad as the media, economists and out-of-favor politicians would lead you to believe. The time strike is while the iron’s getting hot; not when it looks, smells and feels like it really is hot. By that time it’s too late as someone else has already taken the iron and formed it into their own shape and vision.
VCRGD6XDXT3T
Monday, October 25, 2010
Device Owners More Comfortable With Mobile Advertising
The corporate and affluent set use social media, but rules change when time is a more precious commodity than money. Embedded links make case studies, white papers come to life.
Late last week, the research firm Nielsen Company, released a summary version of its survey of more than 5,000 consumers who already own a tablet computer, eReader, netbook, media player or smartphone.
When it comes to advertising, 57 percent of iPad owners -- and 59 percents of connected devices users generally -- show a willingness to accept advertising in return for free access. That said, acceptance of ads should not be mistaken for engagement with ads. Almost half of iPad owners (48%) and 44 percent of connected device owners expressed a neutral attitude toward seeing ads on their gadgets. Neutral meaning that like broadcast television users, they “don’t particularly enjoy” seeing the ads, but will still tolerate them to get the content free of charge.
Neilsen researchers said iPad owners indicated a greater likelihood to engage with ads they find interesting than iPhone users or connected device owners as a whole. And it's not necessarily because of splashier ads on the tablet. For example, 40 percent of iPad users said they are more likely to click on ads that are simple text ads compared to 25 percent of iPhone and all connected device users. At the same time, 46 percent of iPad owners said they enjoy ads with interactive features versus 26 percent of iPhone users and 27 percent of overall connected device owners.
We tend to agree with Online Media Daily who weighed in: “Perhaps in part because of the novelty, iPad users just appear to be more into ads now. That translates into higher conversions. After viewing an ad, iPad users are also more likely to make a purchase either via a PC or in a physical store.”
The Affluent Like Social Media, Too
A new survey from SEI Networks found that seven out of ten people with net worth of $5 million or more are on Facebook or a similar social media site. That proportion is significantly higher than the population at large, with 61 percent of U.S. adults using social networks according to Pew Research Center.
Among the 70 percent who reported using social networks, half said they use Facebook, 37 percent said they visit YouTube, and 35 percent use LinkedIn. Researchers said the high proportion of wealth people using social media is especially noteworthy because these individuals tend to skew older than the general population, defying the conventional wisdom that older adults don't use social media as much as younger people.
Should high-end and B2B advertisers plunge into social media?
Yes and no. First of all, we think the usage of social networking may be directionally accurate, but among affluent decision makers (both at home and at their jobs) our experience is that LinkedIn (professional networking site) is probably getting much higher regular usage than Facebook and Youtube for important information exchange instead of entertainment. As SEI points out, the high penetration of social networks among the pretty rich doesn't necessarily translate into frequent use, simply because these affluent individuals often don't have the time, according to SEI. Less than one in five (17.4%) of respondents said they use social media on a daily basis, compared to 38% of the population at large. Separately, new research from Spectrem Group showed that the most popular careers among individuals heading households worth $5 million or more are senior corporate executives, business owners and physicians or dentists -- occupations which don't leave much time for idle Facebook surfing.
Digital agency Whitehorse says in a recent report that 42 percent of B2B marketers now have people working at least part time on social media activities. But, executive buy in is still lagging behind (36 percent of B2B marketers in the Whitehorse survey says there’s still “low executive interest.”
3 emerging trends in corporate use of social media
Jesse Stenchek’s Smart Blog on Social Media had a nice piece today on three emerging trends in corporate social media: reaching out to customers, remembering who’s in charge and no single department controls social media.
Embedded links make case studies, white papers come to life. Just keep em short.
Surprise findings from an Eccola Media survey of 500 B2B decision makers and influencers found that white papers and a case studies are still attracting their attention. The decrease in consumption of written content in digital form was replaced by an increase in downloading and printing of written content. By including links to media files in your thought leadership content, there’s a 93 percent chance that buyers click through and 80 percent of the time, influencers will say the media files favorably increased the value of that content.
What’s the optimal length for a white paper these days? You guessed it, six pages, not 20 and always include an executive summary. We also recommend including “key take-ways” at the begging of each chapter or section. What’s the biggest impediment to white paper adoption. “Poor writing,” according to Eccola who advises marketers to leave the technical writing to the writers, not the techies. Amen to that.
VCRGD6XDXT3T
Late last week, the research firm Nielsen Company, released a summary version of its survey of more than 5,000 consumers who already own a tablet computer, eReader, netbook, media player or smartphone.
When it comes to advertising, 57 percent of iPad owners -- and 59 percents of connected devices users generally -- show a willingness to accept advertising in return for free access. That said, acceptance of ads should not be mistaken for engagement with ads. Almost half of iPad owners (48%) and 44 percent of connected device owners expressed a neutral attitude toward seeing ads on their gadgets. Neutral meaning that like broadcast television users, they “don’t particularly enjoy” seeing the ads, but will still tolerate them to get the content free of charge.
Neilsen researchers said iPad owners indicated a greater likelihood to engage with ads they find interesting than iPhone users or connected device owners as a whole. And it's not necessarily because of splashier ads on the tablet. For example, 40 percent of iPad users said they are more likely to click on ads that are simple text ads compared to 25 percent of iPhone and all connected device users. At the same time, 46 percent of iPad owners said they enjoy ads with interactive features versus 26 percent of iPhone users and 27 percent of overall connected device owners.
We tend to agree with Online Media Daily who weighed in: “Perhaps in part because of the novelty, iPad users just appear to be more into ads now. That translates into higher conversions. After viewing an ad, iPad users are also more likely to make a purchase either via a PC or in a physical store.”
The Affluent Like Social Media, Too
A new survey from SEI Networks found that seven out of ten people with net worth of $5 million or more are on Facebook or a similar social media site. That proportion is significantly higher than the population at large, with 61 percent of U.S. adults using social networks according to Pew Research Center.
Among the 70 percent who reported using social networks, half said they use Facebook, 37 percent said they visit YouTube, and 35 percent use LinkedIn. Researchers said the high proportion of wealth people using social media is especially noteworthy because these individuals tend to skew older than the general population, defying the conventional wisdom that older adults don't use social media as much as younger people.
Should high-end and B2B advertisers plunge into social media?
Yes and no. First of all, we think the usage of social networking may be directionally accurate, but among affluent decision makers (both at home and at their jobs) our experience is that LinkedIn (professional networking site) is probably getting much higher regular usage than Facebook and Youtube for important information exchange instead of entertainment. As SEI points out, the high penetration of social networks among the pretty rich doesn't necessarily translate into frequent use, simply because these affluent individuals often don't have the time, according to SEI. Less than one in five (17.4%) of respondents said they use social media on a daily basis, compared to 38% of the population at large. Separately, new research from Spectrem Group showed that the most popular careers among individuals heading households worth $5 million or more are senior corporate executives, business owners and physicians or dentists -- occupations which don't leave much time for idle Facebook surfing.
Digital agency Whitehorse says in a recent report that 42 percent of B2B marketers now have people working at least part time on social media activities. But, executive buy in is still lagging behind (36 percent of B2B marketers in the Whitehorse survey says there’s still “low executive interest.”
3 emerging trends in corporate use of social media
Jesse Stenchek’s Smart Blog on Social Media had a nice piece today on three emerging trends in corporate social media: reaching out to customers, remembering who’s in charge and no single department controls social media.
Embedded links make case studies, white papers come to life. Just keep em short.
Surprise findings from an Eccola Media survey of 500 B2B decision makers and influencers found that white papers and a case studies are still attracting their attention. The decrease in consumption of written content in digital form was replaced by an increase in downloading and printing of written content. By including links to media files in your thought leadership content, there’s a 93 percent chance that buyers click through and 80 percent of the time, influencers will say the media files favorably increased the value of that content.
What’s the optimal length for a white paper these days? You guessed it, six pages, not 20 and always include an executive summary. We also recommend including “key take-ways” at the begging of each chapter or section. What’s the biggest impediment to white paper adoption. “Poor writing,” according to Eccola who advises marketers to leave the technical writing to the writers, not the techies. Amen to that.
VCRGD6XDXT3T
Thursday, September 30, 2010
Blackberry Enters the Tablet Fracas
Battle over corporate mindshare of mobile heats up. Battle over disgruntled talent should drive corporate knowledge capture arena. Hottest areas for talent are hybrid roles that previously didn’t exist.
In case you missed it, Research in Motion, best known for its best-selling Blackberry corporate texting and PDA devices announced Monday that is has entered the tablet computer arena. The Blackberry Playbook will target corporate users (no surprise) and will get a leg up on the Apple iPad in at least one important area for business marketers – it can display Web pages that are created via Adobe Flash oftware, something that iPad currently cannot. Our prediction is this: B2B marketers will look first to reach target customers on whatever device they’re using, regardless of who makes it or how snazzy the features. The battle for the corporate share of the mobile marketplace should be a great one to watch as that will likely determine the flow of ad dollars in the B2B arena. We’re hoping for a long-hard fought battle that will raise the bar for innovation and make mobile advertising and sponsorship, a must-have on everyone’s budget by 2011.
“Take this job and shove it”…OR…”Shove that job, I’ll take it”?
Speaking of the corporate marketplace, as we mentioned last month, there’s lots of work to be done, but most organization lack the confidence to hire full-time, salaried, highly-benefitted workers to do it. Thanks, Rick Telberg, of Bay Street Group Research, who shared his take on a recent Hewitt Associates study that showed workplace tensions are at a 15-year high. Seems even those lucky enough to be employed, are running out of motivation and energy as they do two or three people’s former jobs for the same old compensation (or less).
If you’re in the career advertising or executive recruiting game, you’ll have a perfect storm of opportunity on the horizon as disgruntled workers will be jumping ship in droves as the slow recovery continues and companies will be scrambling like crazy to replace them with the long-term unemployed and underemployed. And guess who else has a great window of opportunity right now? That’s right. Those of you in the CRM, ERP, and knowledge management sector. Why? Because when long-term talented employees leave, they take an awful lot of institutional knowledge with them. It doesn’t matter how tight your confidentiality agreements are (see our Sept. 7 piece "Shot Hurd Round the Tech World").
2010 has clearly reflected a rebound for executive search in the media and marketing business, according to Ed Koller, managing partner of New York-based search firm, Howard Sloan Koller Group who shares his firm's client newsletter with us regularly. While the folks at HSK told us their data was anecdotal more than scientific, they found their clients “continue to report positive movement within their businesses, and candidates are truly excited about the energy and buzz they feel in the market and the possibilities they see ahead.” More than ever, digital roles seem focused on building innovative products, said HSK.
Here are some highlights of HSK’s latest report from the media and marketing recruiting trenches:
Companies continue to reorganize with great frequency to seek efficiencies.
• Much of the hiring is for entirely new roles -- positions which didn't exist previously, and often haven't even been thought of or planned for.
• Hybrid roles -- combinations of multiple disciplines -- are cropping up everywhere.
• Broad-based marketers are in greater demand than ever before.
• Many companies are showing increased emphasis on mobile, social media and apps, requiring a mix of specialized skills.
• Bonuses, perks and raises are still hibernating, and are likely to stay this way for the foreseeable future.
• Many candidates are (shockingly) receiving multiple offers simultaneously. "Buyers" must act quickly.
• Internal promotions and newly created roles are being used by companies as a means for retaining talent.
Our take? With digital apps improving almost daily and highly versatile “corporate decathletes” getting more responsibility instead of the politically correct org-chart-climbers, this slow painful recovery we’re supposedly in may go down as the golden age of Web 2.0 ideas, execution and positive paradigm shifts for B2B marketers.
VCRGD6XDXT3T
In case you missed it, Research in Motion, best known for its best-selling Blackberry corporate texting and PDA devices announced Monday that is has entered the tablet computer arena. The Blackberry Playbook will target corporate users (no surprise) and will get a leg up on the Apple iPad in at least one important area for business marketers – it can display Web pages that are created via Adobe Flash oftware, something that iPad currently cannot. Our prediction is this: B2B marketers will look first to reach target customers on whatever device they’re using, regardless of who makes it or how snazzy the features. The battle for the corporate share of the mobile marketplace should be a great one to watch as that will likely determine the flow of ad dollars in the B2B arena. We’re hoping for a long-hard fought battle that will raise the bar for innovation and make mobile advertising and sponsorship, a must-have on everyone’s budget by 2011.
“Take this job and shove it”…OR…”Shove that job, I’ll take it”?
Speaking of the corporate marketplace, as we mentioned last month, there’s lots of work to be done, but most organization lack the confidence to hire full-time, salaried, highly-benefitted workers to do it. Thanks, Rick Telberg, of Bay Street Group Research, who shared his take on a recent Hewitt Associates study that showed workplace tensions are at a 15-year high. Seems even those lucky enough to be employed, are running out of motivation and energy as they do two or three people’s former jobs for the same old compensation (or less).
If you’re in the career advertising or executive recruiting game, you’ll have a perfect storm of opportunity on the horizon as disgruntled workers will be jumping ship in droves as the slow recovery continues and companies will be scrambling like crazy to replace them with the long-term unemployed and underemployed. And guess who else has a great window of opportunity right now? That’s right. Those of you in the CRM, ERP, and knowledge management sector. Why? Because when long-term talented employees leave, they take an awful lot of institutional knowledge with them. It doesn’t matter how tight your confidentiality agreements are (see our Sept. 7 piece "Shot Hurd Round the Tech World").
2010 has clearly reflected a rebound for executive search in the media and marketing business, according to Ed Koller, managing partner of New York-based search firm, Howard Sloan Koller Group who shares his firm's client newsletter with us regularly. While the folks at HSK told us their data was anecdotal more than scientific, they found their clients “continue to report positive movement within their businesses, and candidates are truly excited about the energy and buzz they feel in the market and the possibilities they see ahead.” More than ever, digital roles seem focused on building innovative products, said HSK.
Here are some highlights of HSK’s latest report from the media and marketing recruiting trenches:
Companies continue to reorganize with great frequency to seek efficiencies.
• Much of the hiring is for entirely new roles -- positions which didn't exist previously, and often haven't even been thought of or planned for.
• Hybrid roles -- combinations of multiple disciplines -- are cropping up everywhere.
• Broad-based marketers are in greater demand than ever before.
• Many companies are showing increased emphasis on mobile, social media and apps, requiring a mix of specialized skills.
• Bonuses, perks and raises are still hibernating, and are likely to stay this way for the foreseeable future.
• Many candidates are (shockingly) receiving multiple offers simultaneously. "Buyers" must act quickly.
• Internal promotions and newly created roles are being used by companies as a means for retaining talent.
Our take? With digital apps improving almost daily and highly versatile “corporate decathletes” getting more responsibility instead of the politically correct org-chart-climbers, this slow painful recovery we’re supposedly in may go down as the golden age of Web 2.0 ideas, execution and positive paradigm shifts for B2B marketers.
VCRGD6XDXT3T
Tuesday, September 07, 2010
Shot Hurd Round the Tech World
Let’s get back to selling and making things, not rules. Online video consumption surging. Adults texting too.
While the ranks of America’s long-term jobless climbs, at least one terminated white collar worker found a new home in a hurry – on Labor Day no less.
Late yesterday, Oracle announced that former HP CEO, Mark Hurd has joined the company as co-president. Despite engineering a remarkable turnaround of the company in the wake of its ill-fated Carly Fiorona experiment, Hurd was forced to resign last month after the HP board flagged him for fudging expense reports related to an extramarital affair he was having with an independent company marketing consultant/ex-adult-film actress. Nice.
While we don’t condone Hurd’s alleged actions at the helm of HP, it’s refreshing to see leading global brands recognizing leadership talent as a way to drive companies forward, not their cowardly boards or HR and legal policymakers. We think this trend will continue (albeit more quietly) throughout the ranks of corporate America.
And so naturally HP sued, according to a Wall Street Journal report.
If we’re going to get out economy out of first gear, entrepreneurs and small businesses can’t do it alone. We need the Fortune 1000 to step up too and that means bringing back people on the revenue side who actually make things (engineers, developers, content creators) and sell things (sales, marketing, business development) and start trimming back on cost-center departments that make nothing but rules (HR, legal, accounting). As perhaps a sign of the times, investors and discussion forum posters seemed overwhelmingly supportive of Oracle and anti-HP, Hurd's alleged confidentiality breach notwithstanding.
“Mark did a brilliant job at HP and I expect he’ll do even better at Oracle as there is no executive in the I.T. world with more relevant experience,” said Oracle CEO, Larry Ellison in a statement. While many in the tech world say both leaders can be difficult to work with, it’s hard to argue with their overall results. Ellison, a friend and long time business partner of HP’s, call Hurd’s dismissal in an e-mail to The New York Times “the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago.”
While Hurd’s hiring can’t be credited for a better than expected job(less) report on Friday --stocks rose as nonfarm payrolls shed 54,000 jobs last month, roughly half the 110,000 drop economists had expected and matching the level of revised losses recorded the previous month. The S&P 500 and Nasdaq Composite indices climbed over three percent for the week. Friday's employment numbers followed recent reports on manufacturing and housing that also came in above expectations, extending a notable reversal from a long string of disappointing data that had driven the Dow's biggest August drop since 2001.
Online video consumption surging
The amount of time American audiences spent watching video for the major live video publishers has grown nearly seven fold over the past year to more than 1.4 billion minutes, according to comScore. By comparison, the amount of time that American audiences spent watching YouTube and Hulu increased 68 percent and 75 percent, respectively, over the same time period. Along with Justin.tv, other top live video publishers include USTREAM, Livestream, LiveVideo, and Stickam
According to Comscore, Live online video sites have been successful in building audience and keeping that audience tuned in. The average live streamed video view is seven percent longer than the average online video view. As expected, live video sites are 72 percent more likely to deliver the elusive demographic -- males age 18-34 -- than the average online video site, says Comscore.
Experts say live streaming video’s success is due in no small part to sites' willingness to build out their technology infrastructure to provide a better user experience. For instance, Justin.tv recently announced mobile applications for Android and iOS, the former allowing users to live stream from their mobile device. The growth of broadband (both through regular and cellular networks) has made features that were unthinkable two years ago a reality today.
Adults texting too. Are you LOL? OMG!
Adults aren't as text-crazed as their teen and tween offspring, but the proportion of U.S. adults who send and receive text messages has grown from to 72 percent from 65% a year ago, according to a new Pew Research Center study on mobile use. But adults still have a long way to go to match the under-20 crowd who typically exchange 50 text messages a day compared to 10 for adults. The study found that heavy adult texters tend to be heavy users of voice calling, while light texters -- those who exchange one to 10 messages a day -- don't make up for less texting with more calling.
Voice service remains the primary cell phone function for most adults, who exchange five calls a day. Looking at how use varies by gender, the Pew report found that women make slightly fewer calls per day. More than a quarter (26%) otf men send and receive 6 to 10 calls a day, while 20 percent of women exchange that many calls.
A recent Nielsen study found that women on average spend 22 percent more time talking on cell phones (856.3 minutes a month compared to men's 666.7). In terms of behavior, women are slightly more likely to place frequent calls to just say hello and chat and report on where they are or find out where someone else is. Men are more likely to make calls about coordinating where to meet others, and to exchange calls about work. Both men and women were likely to have long conversations to discuss important personal matters on the cell phone.
If you’re still wondering whether mobile should be part of your 2011 marketing mix, we suggest you check out these and other reports from reliable independent sources. Now get back to work and reach out and touch your customers.
VCRGD6XDXT3T
While the ranks of America’s long-term jobless climbs, at least one terminated white collar worker found a new home in a hurry – on Labor Day no less.
Late yesterday, Oracle announced that former HP CEO, Mark Hurd has joined the company as co-president. Despite engineering a remarkable turnaround of the company in the wake of its ill-fated Carly Fiorona experiment, Hurd was forced to resign last month after the HP board flagged him for fudging expense reports related to an extramarital affair he was having with an independent company marketing consultant/ex-adult-film actress. Nice.
While we don’t condone Hurd’s alleged actions at the helm of HP, it’s refreshing to see leading global brands recognizing leadership talent as a way to drive companies forward, not their cowardly boards or HR and legal policymakers. We think this trend will continue (albeit more quietly) throughout the ranks of corporate America.
And so naturally HP sued, according to a Wall Street Journal report.
If we’re going to get out economy out of first gear, entrepreneurs and small businesses can’t do it alone. We need the Fortune 1000 to step up too and that means bringing back people on the revenue side who actually make things (engineers, developers, content creators) and sell things (sales, marketing, business development) and start trimming back on cost-center departments that make nothing but rules (HR, legal, accounting). As perhaps a sign of the times, investors and discussion forum posters seemed overwhelmingly supportive of Oracle and anti-HP, Hurd's alleged confidentiality breach notwithstanding.
“Mark did a brilliant job at HP and I expect he’ll do even better at Oracle as there is no executive in the I.T. world with more relevant experience,” said Oracle CEO, Larry Ellison in a statement. While many in the tech world say both leaders can be difficult to work with, it’s hard to argue with their overall results. Ellison, a friend and long time business partner of HP’s, call Hurd’s dismissal in an e-mail to The New York Times “the worst personnel decision since the idiots on the Apple board fired Steve Jobs many years ago.”
While Hurd’s hiring can’t be credited for a better than expected job(less) report on Friday --stocks rose as nonfarm payrolls shed 54,000 jobs last month, roughly half the 110,000 drop economists had expected and matching the level of revised losses recorded the previous month. The S&P 500 and Nasdaq Composite indices climbed over three percent for the week. Friday's employment numbers followed recent reports on manufacturing and housing that also came in above expectations, extending a notable reversal from a long string of disappointing data that had driven the Dow's biggest August drop since 2001.
Online video consumption surging
The amount of time American audiences spent watching video for the major live video publishers has grown nearly seven fold over the past year to more than 1.4 billion minutes, according to comScore. By comparison, the amount of time that American audiences spent watching YouTube and Hulu increased 68 percent and 75 percent, respectively, over the same time period. Along with Justin.tv, other top live video publishers include USTREAM, Livestream, LiveVideo, and Stickam
According to Comscore, Live online video sites have been successful in building audience and keeping that audience tuned in. The average live streamed video view is seven percent longer than the average online video view. As expected, live video sites are 72 percent more likely to deliver the elusive demographic -- males age 18-34 -- than the average online video site, says Comscore.
Experts say live streaming video’s success is due in no small part to sites' willingness to build out their technology infrastructure to provide a better user experience. For instance, Justin.tv recently announced mobile applications for Android and iOS, the former allowing users to live stream from their mobile device. The growth of broadband (both through regular and cellular networks) has made features that were unthinkable two years ago a reality today.
Adults texting too. Are you LOL? OMG!
Adults aren't as text-crazed as their teen and tween offspring, but the proportion of U.S. adults who send and receive text messages has grown from to 72 percent from 65% a year ago, according to a new Pew Research Center study on mobile use. But adults still have a long way to go to match the under-20 crowd who typically exchange 50 text messages a day compared to 10 for adults. The study found that heavy adult texters tend to be heavy users of voice calling, while light texters -- those who exchange one to 10 messages a day -- don't make up for less texting with more calling.
Voice service remains the primary cell phone function for most adults, who exchange five calls a day. Looking at how use varies by gender, the Pew report found that women make slightly fewer calls per day. More than a quarter (26%) otf men send and receive 6 to 10 calls a day, while 20 percent of women exchange that many calls.
A recent Nielsen study found that women on average spend 22 percent more time talking on cell phones (856.3 minutes a month compared to men's 666.7). In terms of behavior, women are slightly more likely to place frequent calls to just say hello and chat and report on where they are or find out where someone else is. Men are more likely to make calls about coordinating where to meet others, and to exchange calls about work. Both men and women were likely to have long conversations to discuss important personal matters on the cell phone.
If you’re still wondering whether mobile should be part of your 2011 marketing mix, we suggest you check out these and other reports from reliable independent sources. Now get back to work and reach out and touch your customers.
VCRGD6XDXT3T
Monday, August 23, 2010
When the Going Gets Tough, the Tough (and Smart) Get Going
Disappointing news on jobs, manufacturing and financial markets are no reason to throw in the towel or cut spending plans. Bankers got us into this mess. Tech will get us out.
Stocks sank late in the week on discouraging news about jobless claims and manufacturing data. Housing prices aren’t going anywhere and warnings of a “double dip” recession are as numerous in the media as references to the “slow economic recovery.”
From a macro and consumer-centric view things look pretty lousy. Unfortunately, that’s overshadowing some optimistic signs in the big business world that we think will eventually spill over into hiring and consumer confidence.
Bottom line. Now’s not the time to duck and cover on your hiring, marketing and infrastructure improvement plans. It may be the best opportunity you’ll have in a long while to get affordable talent, media exposure and the tech foundation you’ll need to hit the ground running when government officially calls this prolonged economic downturn over.
Just as you have to hit your Refresh button on your Web browser from time to time, we think the economy, led by big business, its hitting its collective Refresh button and the smart ones are positioning themselves to ride the inevitable wave of pent up demand that’s coming.
General Motors is planning and IPO. Yes the same GM that accepted a humiliating $50 billion government bailout during the depths of the financial crisis is about to become a public company again and no doubt leaner and more globally competitive. Intel announced plans to acquire McAfee and Dell agreed to acquire 3Par. These moves – and an overall uptick in deal activity last week – dovetailed with our point made last time in this column that the surge in tech spending by companies and gadget spending by consumers will get the cash registers ringing again.
The latest surge in M&A has spurred hopes that companies will use the $2 trillion of cash sitting in their coffers to make deals and grow their businesses. "This is a logical thing to have happen," Dick Del Bello, senior partner at Conifer Group, told The Wall Street Journal late last week. "Companies are sitting on piles of cash and they're trying to find ways to take advantage of that without increasing their risk profile dramatically."
We also found two more bright spots in the tech sector – Dell’s and HP’s ability to shake off highly publicized CEO scandals (accounting fraud and sexual harassment, respectively) without noticeable damage to earnings and brand equity. HP reported Thursday that its Q3 revenue rose 11 percent to $30.7 billion from a comparable period a year ago. Dell’s Q2 revenue came in at $15.5 billion, a 22 percent jump over its Q2/09 period.
If you’re like most businesses, you’re experiencing what the PC market is going through. You’re in the throes of great change. Pent up demand from new and existing customers is starting to emerge -- Dell said its notebook sales were up 21 percent and desktop sales up 17 percent, while HP reported a 17 percent overall increase in computer sales – but both companies know that growth trend isn’t guaranteed for long.
Chances are your business isn’t that much different from Dell’s and HP’s. You’re facing new competition on at least two fronts -- global competitors who weren’t sniffing around your market as much before the downturn, as well folks who weren’t in your competitive space before the meltdown, who now smell opportunity on your home turf.
As the tech guys know, overall demand for their stuff is higher than it’s been for a while, but now Acer, Asustek and other Asian competitors are breathing down their necks for control of the U.S. desktop and notebook market while mobile phone makers and carriers aggressively moving into the tablet market. They’ve got to hold onto their longstanding turf while innovate faster in their new turfs. Sound at all like your business?
That’s where smart advertising and marketing comes in. Reinforcing your brand superiority in longstanding markets and bolstering your brand position in your newer markets. Maybe it’s no surprise that technology companies accounted for nearly a third of the top 50 most valuable brands, according to a recent Forbes/Mindshare study. The rankings looked into each company’s brand earnings over the past three years, subtracted capital employed and then took a percentage of earnings based on the role brands play in each industry. The study authors also factored in the parent company’s P/E multiple to the net brand earnings number.
Apple, Microsoft, IBM, Google, Intel and Nokia made the top 10. They may have cut way back on their ad pages, direct mail and network TV buys, but they’re finding new and innovative ways to catch the pent-up demand wave as B2B and consumers collectively gain the courage to hit their “Refresh buttons.” We’ll talk more about their credibility marketing next week.
In the mean time, maybe it’s time you re-familiarized yourself with the Refresh button at the top of your psychological Nav bar. And clear out your cache and junk folder while you’re at it. As we mentioned last time in this blog, August is the new September, and 2011 is the start of the New Normal era.
VCRGD6XDXT3T
Stocks sank late in the week on discouraging news about jobless claims and manufacturing data. Housing prices aren’t going anywhere and warnings of a “double dip” recession are as numerous in the media as references to the “slow economic recovery.”
From a macro and consumer-centric view things look pretty lousy. Unfortunately, that’s overshadowing some optimistic signs in the big business world that we think will eventually spill over into hiring and consumer confidence.
Bottom line. Now’s not the time to duck and cover on your hiring, marketing and infrastructure improvement plans. It may be the best opportunity you’ll have in a long while to get affordable talent, media exposure and the tech foundation you’ll need to hit the ground running when government officially calls this prolonged economic downturn over.
Just as you have to hit your Refresh button on your Web browser from time to time, we think the economy, led by big business, its hitting its collective Refresh button and the smart ones are positioning themselves to ride the inevitable wave of pent up demand that’s coming.
General Motors is planning and IPO. Yes the same GM that accepted a humiliating $50 billion government bailout during the depths of the financial crisis is about to become a public company again and no doubt leaner and more globally competitive. Intel announced plans to acquire McAfee and Dell agreed to acquire 3Par. These moves – and an overall uptick in deal activity last week – dovetailed with our point made last time in this column that the surge in tech spending by companies and gadget spending by consumers will get the cash registers ringing again.
The latest surge in M&A has spurred hopes that companies will use the $2 trillion of cash sitting in their coffers to make deals and grow their businesses. "This is a logical thing to have happen," Dick Del Bello, senior partner at Conifer Group, told The Wall Street Journal late last week. "Companies are sitting on piles of cash and they're trying to find ways to take advantage of that without increasing their risk profile dramatically."
We also found two more bright spots in the tech sector – Dell’s and HP’s ability to shake off highly publicized CEO scandals (accounting fraud and sexual harassment, respectively) without noticeable damage to earnings and brand equity. HP reported Thursday that its Q3 revenue rose 11 percent to $30.7 billion from a comparable period a year ago. Dell’s Q2 revenue came in at $15.5 billion, a 22 percent jump over its Q2/09 period.
If you’re like most businesses, you’re experiencing what the PC market is going through. You’re in the throes of great change. Pent up demand from new and existing customers is starting to emerge -- Dell said its notebook sales were up 21 percent and desktop sales up 17 percent, while HP reported a 17 percent overall increase in computer sales – but both companies know that growth trend isn’t guaranteed for long.
Chances are your business isn’t that much different from Dell’s and HP’s. You’re facing new competition on at least two fronts -- global competitors who weren’t sniffing around your market as much before the downturn, as well folks who weren’t in your competitive space before the meltdown, who now smell opportunity on your home turf.
As the tech guys know, overall demand for their stuff is higher than it’s been for a while, but now Acer, Asustek and other Asian competitors are breathing down their necks for control of the U.S. desktop and notebook market while mobile phone makers and carriers aggressively moving into the tablet market. They’ve got to hold onto their longstanding turf while innovate faster in their new turfs. Sound at all like your business?
That’s where smart advertising and marketing comes in. Reinforcing your brand superiority in longstanding markets and bolstering your brand position in your newer markets. Maybe it’s no surprise that technology companies accounted for nearly a third of the top 50 most valuable brands, according to a recent Forbes/Mindshare study. The rankings looked into each company’s brand earnings over the past three years, subtracted capital employed and then took a percentage of earnings based on the role brands play in each industry. The study authors also factored in the parent company’s P/E multiple to the net brand earnings number.
Apple, Microsoft, IBM, Google, Intel and Nokia made the top 10. They may have cut way back on their ad pages, direct mail and network TV buys, but they’re finding new and innovative ways to catch the pent-up demand wave as B2B and consumers collectively gain the courage to hit their “Refresh buttons.” We’ll talk more about their credibility marketing next week.
In the mean time, maybe it’s time you re-familiarized yourself with the Refresh button at the top of your psychological Nav bar. And clear out your cache and junk folder while you’re at it. As we mentioned last time in this blog, August is the new September, and 2011 is the start of the New Normal era.
VCRGD6XDXT3T
Monday, August 09, 2010
Accelerating in a stalled economy?
HP likely to be Hurd-ing for a while, but business spending on equipment and software among few bright spots in sluggish new economic report. Companies investing for the future, but spending more on infrastructure than on people. Are you seizing the day or still hunkering down?
I ran into a neighbor of mine on the beach yesterday who thought I still toiled for a high brow financial publication. “So are we out of this thing or not?” he asked me, after mentioning his plans to subdivide his property and start building on both lots – both “scaled down” versions of his current abode. He’s a teacher at an upscale private school and his wife works in a stable healthcare organization. So while neither occupation is as “recession-proof” as they’ve led themselves to believe, they’re feeling pretty good about life right now.
“How the heck should I know if we’re out of this economic S--storm?!” I thought to myself, since nothing I could say was going to dissuade him from his renovation plans. But, then thought I better respond with something a little more scholarly in case anyone else was listening in. I took a deep breath, admired the sailboats and kayaks frolicking on the water and came up with this pearl of wisdom: ”It all depends,” I said. “Depends on what?” he replied, with some impatience.
I said it depends on whether you think things are getting better or whether you think things are getting worse. Overall personal incomes dropped nearly two percent last year, according to US Department of Commerce stats and my neighbor and I live in one of the five wealthiest -- but hardest hit metro areas in the country (see stats)
My neighbor's obviously pretty optimistic about the future and that’s my point. He may not be earning a king's ransom, but his kids go to an elite private school for free. He's got summer's free, doesn't commute far and his wife's doing well, too.
People and companies who think things are getting better are hitting the ground running with expansion plans, they’re hiring, they’re pulling the trigger on delayed purchases, refinancing their mortgages etc. with the thought that “things may never be this cheap again for a long, long time.”
At my neighbor’s elite school, he said they haven’t lost a single family during the recession, “but they’re sure re-thinking that country club membership.” At the other end of the spectrum, we know have close to 2 million people going on 99 weeks of unemployment benefits and that’s not counting the discouraged, early retired, independent contractors, etc. which is probably three to four times that number.
Switch gears to Middle America. WalMart’s still doing well (Net sales for the first quarter of fiscal year 2011 were $99.1 billion, up six percent from a comparable quarter last year), but Nascar events that continually sold out in the middle of the decade drone on in front of acres and acres of empty seats. Nielsen says Nascar’s TV ratings are down 25 percent 2005 Nascar merchandise sales are down 23 percent from its 2006 peak according to The Licensing Letter. Consumers saved a whopping 6.4 percent of the after-tax income in June, according to a new report. It was one to two percent before the recession, and for most of the Baby Boom generation’s adult lives.
They don’t see any improvement from September 2008, when most folks think we officially went into the tank, and they’re hoarding cash like there’s no tomorrow. Millions of homeowners would unload their homes tomorrow if anyone would actually buy em. Millions of employees still lucky enough to have their jobs are fed up with being paid the same as they were five years ago, despite handling double the workload and three times the stress. They’d leave in a heartbeat if there was anywhere else to go.
So it all depends on whether you think things are get better at a better rate, or things are getting worse at a worse rate.
On Friday, HP’s remarkable turnaround was derailed temporarily by sexual harassment allegations against CEO, Mark Hurd. The company’s stock price took a 10 percent hit on the news, but the company will find a way to shake it off, stay focused and get back on track in the same matter of fact way it issued Friday’s press release about Hurd’s termination.
Outside the corner office, the U.S. economy lost 131,000 jobs in July, but that number was distorted as the government let go 143,000 temporary Census workers during the month. The more closely watched private payrolls numbers were also disappointing, showing just a 71,000 increase, less than the 100,000 that economists expected. To make matters worse, the June data were revised lower to a loss of 221,000 jobs from a previously reported 125,000. But the official unemployment rate improved to 9.5 percent, which is a few ticks less pathetic than 9.7 percent last month.
Great. So, things really are improving you say? Not so fast.
Ben “the Bummer” Bernanke, said last Monday that while the U.S. economy continues to grow at a moderate pace – 2.4 percent in Q2, down from 3.7 percent in Q1 -- significant restraints remain on the recovery. In prepared remarks, The Fed Chairman said the U.S. had a "considerable way to go to achieve a full recovery in our economy, and many Americans are still grappling with unemployment, foreclosure and lost savings."
Companies spending on equipment, processes – not people
But, the government report showed a bright spot continuing in the economy: the growth of business spending on equipment and software. This spending continued to surge, increasing by 21.9 percent in the second quarter, compared with a 20.4 percent rise in the first three months. The figures highlight the contrast in the economy between high company profits and a persistently feeble jobs market keeping consumers at bay.
Many management and turnaround consultants I’ve talked to said business has never been better. And if you’re selling productivity tools and processes, things are looking pretty rosy too. So if you’re in the business of helping organizations do more with less – you’re liking this long-term state of flux and uncertainty. But, if you’re trying to get in, stay in or sell to an organization who’s trying to do more with less, than it’s kind of a sucky time.
So if you’re trying to reach B2B decision-makers then we recommend you hit it as hard as possible right now as we’re about to enter the Q4 selling season. There could be several years of pent up demand unleashing itself between now and year-end and you don’t want to be kicking yourself this time next year wishing you had made one more phone call to that VP or Purchasing, or sent one more e-mail blast to that Sr. Manager of Technology or tried one more time to get that white paper over to the Web marketing manager who asked for it two months ago, even though they said budgets were frozen? And what about that Webinar you scrapped mid-summer, because you thought too many thought influencers would be out of the office? Could you have just blown a chance to make the sale of the year in order to save a few bucks in your marketing budget?
When it comes to long-term purchase decisions, you never know if it's six time you touch a prospect, the ninth time or the 12th time that will do the trick.
If things are so bad, then how come business magazine ad pages are up 40 percent at Forbes from this time a year ago (Source; Mediaweek or 36 percent at Wired or 33 percent at Inc?
As we’ve been trumpeting all summer, we’re fast approaching the tipping point in which the “Opportunity Seizers” will be zipping past the “Hunker Downers” and the “Shoulda-Woulda-Coulda’s.”
Which train will you be on?
VCRGD6XDXT3T
I ran into a neighbor of mine on the beach yesterday who thought I still toiled for a high brow financial publication. “So are we out of this thing or not?” he asked me, after mentioning his plans to subdivide his property and start building on both lots – both “scaled down” versions of his current abode. He’s a teacher at an upscale private school and his wife works in a stable healthcare organization. So while neither occupation is as “recession-proof” as they’ve led themselves to believe, they’re feeling pretty good about life right now.
“How the heck should I know if we’re out of this economic S--storm?!” I thought to myself, since nothing I could say was going to dissuade him from his renovation plans. But, then thought I better respond with something a little more scholarly in case anyone else was listening in. I took a deep breath, admired the sailboats and kayaks frolicking on the water and came up with this pearl of wisdom: ”It all depends,” I said. “Depends on what?” he replied, with some impatience.
I said it depends on whether you think things are getting better or whether you think things are getting worse. Overall personal incomes dropped nearly two percent last year, according to US Department of Commerce stats and my neighbor and I live in one of the five wealthiest -- but hardest hit metro areas in the country (see stats)
My neighbor's obviously pretty optimistic about the future and that’s my point. He may not be earning a king's ransom, but his kids go to an elite private school for free. He's got summer's free, doesn't commute far and his wife's doing well, too.
People and companies who think things are getting better are hitting the ground running with expansion plans, they’re hiring, they’re pulling the trigger on delayed purchases, refinancing their mortgages etc. with the thought that “things may never be this cheap again for a long, long time.”
At my neighbor’s elite school, he said they haven’t lost a single family during the recession, “but they’re sure re-thinking that country club membership.” At the other end of the spectrum, we know have close to 2 million people going on 99 weeks of unemployment benefits and that’s not counting the discouraged, early retired, independent contractors, etc. which is probably three to four times that number.
Switch gears to Middle America. WalMart’s still doing well (Net sales for the first quarter of fiscal year 2011 were $99.1 billion, up six percent from a comparable quarter last year), but Nascar events that continually sold out in the middle of the decade drone on in front of acres and acres of empty seats. Nielsen says Nascar’s TV ratings are down 25 percent 2005 Nascar merchandise sales are down 23 percent from its 2006 peak according to The Licensing Letter. Consumers saved a whopping 6.4 percent of the after-tax income in June, according to a new report. It was one to two percent before the recession, and for most of the Baby Boom generation’s adult lives.
They don’t see any improvement from September 2008, when most folks think we officially went into the tank, and they’re hoarding cash like there’s no tomorrow. Millions of homeowners would unload their homes tomorrow if anyone would actually buy em. Millions of employees still lucky enough to have their jobs are fed up with being paid the same as they were five years ago, despite handling double the workload and three times the stress. They’d leave in a heartbeat if there was anywhere else to go.
So it all depends on whether you think things are get better at a better rate, or things are getting worse at a worse rate.
On Friday, HP’s remarkable turnaround was derailed temporarily by sexual harassment allegations against CEO, Mark Hurd. The company’s stock price took a 10 percent hit on the news, but the company will find a way to shake it off, stay focused and get back on track in the same matter of fact way it issued Friday’s press release about Hurd’s termination.
Outside the corner office, the U.S. economy lost 131,000 jobs in July, but that number was distorted as the government let go 143,000 temporary Census workers during the month. The more closely watched private payrolls numbers were also disappointing, showing just a 71,000 increase, less than the 100,000 that economists expected. To make matters worse, the June data were revised lower to a loss of 221,000 jobs from a previously reported 125,000. But the official unemployment rate improved to 9.5 percent, which is a few ticks less pathetic than 9.7 percent last month.
Great. So, things really are improving you say? Not so fast.
Ben “the Bummer” Bernanke, said last Monday that while the U.S. economy continues to grow at a moderate pace – 2.4 percent in Q2, down from 3.7 percent in Q1 -- significant restraints remain on the recovery. In prepared remarks, The Fed Chairman said the U.S. had a "considerable way to go to achieve a full recovery in our economy, and many Americans are still grappling with unemployment, foreclosure and lost savings."
Companies spending on equipment, processes – not people
But, the government report showed a bright spot continuing in the economy: the growth of business spending on equipment and software. This spending continued to surge, increasing by 21.9 percent in the second quarter, compared with a 20.4 percent rise in the first three months. The figures highlight the contrast in the economy between high company profits and a persistently feeble jobs market keeping consumers at bay.
Many management and turnaround consultants I’ve talked to said business has never been better. And if you’re selling productivity tools and processes, things are looking pretty rosy too. So if you’re in the business of helping organizations do more with less – you’re liking this long-term state of flux and uncertainty. But, if you’re trying to get in, stay in or sell to an organization who’s trying to do more with less, than it’s kind of a sucky time.
So if you’re trying to reach B2B decision-makers then we recommend you hit it as hard as possible right now as we’re about to enter the Q4 selling season. There could be several years of pent up demand unleashing itself between now and year-end and you don’t want to be kicking yourself this time next year wishing you had made one more phone call to that VP or Purchasing, or sent one more e-mail blast to that Sr. Manager of Technology or tried one more time to get that white paper over to the Web marketing manager who asked for it two months ago, even though they said budgets were frozen? And what about that Webinar you scrapped mid-summer, because you thought too many thought influencers would be out of the office? Could you have just blown a chance to make the sale of the year in order to save a few bucks in your marketing budget?
When it comes to long-term purchase decisions, you never know if it's six time you touch a prospect, the ninth time or the 12th time that will do the trick.
If things are so bad, then how come business magazine ad pages are up 40 percent at Forbes from this time a year ago (Source; Mediaweek or 36 percent at Wired or 33 percent at Inc?
As we’ve been trumpeting all summer, we’re fast approaching the tipping point in which the “Opportunity Seizers” will be zipping past the “Hunker Downers” and the “Shoulda-Woulda-Coulda’s.”
Which train will you be on?
VCRGD6XDXT3T
Thursday, July 22, 2010
‘Unusually Uncertain’
Investors think F-word after Bernanke’s U-word(s). Have changing demographics of U.S. workforce accelerated importance of social networking and communication skills?
A minute in to his semi-annual testimony before Congress yesterday, Fed Chairman Ben Bernanke sent the stock market into an afternoon slide (down 1.3 percent) with two simple words that underscored the fragility of investor and business community confidence…. “Unusually uncertain.”
“Of course, even as the Federal Reserve continues prudent planning for the ultimate withdrawal of extraordinary monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain,” said the Fed Chief. Bernanke’s comments followed discouraging data on housing, unemployment, consumer sentiment and bank lending, not to mention uncertainty over the effect of the sweeping financial legislation signed by President Obama yesterday.
Marketing for decision-makers in the post-industrial economy
As NY Times columnist, Nicholas Kristof, points out today for the first time in American history, men no longer dominate the labor force. Not only do men account for about three-quarters of Americans who lost their jobs, during this prolonged recession, but women are now the majority of payroll employees for the five months that ended in March, according to one measure from the federal Bureau of Labor Statistics.
Citing, Atlantic Monthly’s Hanna Rosin, Kristof raises the question: “What if the modern, postindustrial economy is simply more congenial to women than to men?” As both columnists observe: Our postindustrial economy is indifferent to men’s size and strength. The attributes that are most valuable today — social intelligence, open communication, the ability to sit still and focus — are, at a minimum, not predominately male. In fact, the opposite may be true.
Read for yourself to see if you agree whether the female gender’s superior social/communication skills are socialized or a result of different genetic wiring between the sexes. But for marketers intent on reaching corporate decision-makers and influencers, the importance of listening, social networking and open communication should not be underestimated.
It’s not necessarily a gender issue, but it’s hard to argue that more and more of us are selling to a group of decision-makers instead of a single buyer, and that group of buyers is soliciting feedback from a wider range of influencers than ever before. You simply cannot take that many influencers out to the golf course or a nice dinner if you want the business. Social media is no longer a nice-to-have. It’s a need to have form of air coverage if you want to stay on the radar of your current and prospective clients with an ongoing, meaningful two-way dialogue that can be shared, linked and vetted.
VCRGD6XDXT3T
A minute in to his semi-annual testimony before Congress yesterday, Fed Chairman Ben Bernanke sent the stock market into an afternoon slide (down 1.3 percent) with two simple words that underscored the fragility of investor and business community confidence…. “Unusually uncertain.”
“Of course, even as the Federal Reserve continues prudent planning for the ultimate withdrawal of extraordinary monetary policy accommodation, we also recognize that the economic outlook remains unusually uncertain,” said the Fed Chief. Bernanke’s comments followed discouraging data on housing, unemployment, consumer sentiment and bank lending, not to mention uncertainty over the effect of the sweeping financial legislation signed by President Obama yesterday.
Marketing for decision-makers in the post-industrial economy
As NY Times columnist, Nicholas Kristof, points out today for the first time in American history, men no longer dominate the labor force. Not only do men account for about three-quarters of Americans who lost their jobs, during this prolonged recession, but women are now the majority of payroll employees for the five months that ended in March, according to one measure from the federal Bureau of Labor Statistics.
Citing, Atlantic Monthly’s Hanna Rosin, Kristof raises the question: “What if the modern, postindustrial economy is simply more congenial to women than to men?” As both columnists observe: Our postindustrial economy is indifferent to men’s size and strength. The attributes that are most valuable today — social intelligence, open communication, the ability to sit still and focus — are, at a minimum, not predominately male. In fact, the opposite may be true.
Read for yourself to see if you agree whether the female gender’s superior social/communication skills are socialized or a result of different genetic wiring between the sexes. But for marketers intent on reaching corporate decision-makers and influencers, the importance of listening, social networking and open communication should not be underestimated.
It’s not necessarily a gender issue, but it’s hard to argue that more and more of us are selling to a group of decision-makers instead of a single buyer, and that group of buyers is soliciting feedback from a wider range of influencers than ever before. You simply cannot take that many influencers out to the golf course or a nice dinner if you want the business. Social media is no longer a nice-to-have. It’s a need to have form of air coverage if you want to stay on the radar of your current and prospective clients with an ongoing, meaningful two-way dialogue that can be shared, linked and vetted.
VCRGD6XDXT3T
Thursday, July 01, 2010
Business Marketers at Mid-Year Crossroads
Fast your seatbelt. No matter how the second half ends up, it won’t be boring. Banners battle video and search for control of digital ad budgets.
The July 4th Holiday weekend is typically when we take time out for a breather from the frenetic pace of daily life to hit the beach, the mountains or just the backyard hammock for a little R&R and some good old fashioned pyrotechnics. It’s also a typical juncture in the business world as we try to decide whether we’re going to have a good year or not and start fretting about the 2011 budget.
I spoke the other day with John Graham, President & CEO of the American Society of Association Executives who said we live in an instant gratification “experience economy.” Consumers don’t want to have marketing messages pushed at them so much as they want to control the dialogue with your organization. It’s all about “I want what I want when I want it and how I want to get it,” related Graham.
So what do they really want? “Truth in advertising,” said Graham. “You need to earn their trust,” and thanks to social media, they have more tools than ever for punishing you for not delivering.
Second half forecast?
All signs point to “not clear.”
The financial markets have recently given back all their gains for the year – end then some. A stream of reports released this week pointed to slowing growth throughout the economy, from slower manufacturing growth to higher claims for jobless benefits and declines in home construction and pending sales. U.S. factory activity slowed in June amid a moderation in inflationary pressures. Private research group the Institute for Supply Management reported Thursday that its manufacturing index for the most recent month moved to 56.2, from 59.7 and 60.4. Readings above 50 signal expansion, so June's reading represented continued growth at a slower pace. Economists had expected to see slight moderation at a reading of 59.0.
Persistently high unemployment, modest gains in overall output, when added to weakness in housing and the threat posed by weak growth and financial problems in Europe, have driven up fears about what lies ahead for the U.S. recovery. Also, in the U.S. labor market, the four-week moving average of jobless claims -- which aims to give a better idea of the trend by smoothing volatility in the data -- went up by 3,250 to 466,500 in the week ended June 26. That represents the highest level since March 6, 2010.
Experts say compared to past recoveries from deep recessions, the current one is moving slowly. The economy expanded by less than an annualized 3.0 percent in the first quarter and there are increasing concerns that growth may slow down in the second half of the year. U.S. consumer confidence fell sharply in June, wiping out the gains posted in the previous two months as Americans worried about their job prospects. Some economist fear consumer spending won't be strong enough to replace a fading government stimulus in lifting the economy.
The June Consumer Reports Trouble Tracker Index measuring financial difficulties faced by consumers in the past 30 days, worsened, rising to 63.5 from 53.0 in May. The most troubling increase is in missed mortgage payments, which reached 3.9 percent, its highest level since tracking began in April 2009. The latest numbers show consumers have taken a step back facing increases in financial difficulties and a soured employment picture, says the report.
In June, more consumers reported difficulty in affording medical bills or medications versus the prior month, and faced lost or reduced healthcare coverage
• The Employment Index has dropped, pointing to an increase in the ranks of the unemployed, at least temporarily. The decline was led by the proportion of Americans that lost their jobs in the past 30 days
• Despite the high job losses posted in June, 7.4 percent of Americans reported starting a job in the past 30 days, well above May, and achieved its highest level recorded since April 2009.
• Consumers have scaled back their interest in shopping as well. The past 30-Day Retail Index for June, reflective of May activity, is 10.8, unchanged from the prior month
• May's next 30-Day Retail Index, reflective of planned purchases for June, is down slightly from the prior month. Per capita spending for the index categories in the past 30 days was $234, down slightly from May ($248)
Consumer Sentiment is unchanged from the prior month. The most optimistic consumers are between the ages of 18-34 (52.3), and with a household income of $100,000+ (54.9). The most pessimistic are households with an income less than $50,000 (39.2) and Americans 65 or older (41.7).
The Sentiment Index captures respondents' attitudes regarding their financial situation, asking them if they are feeling better or worse off than a year ago. When the index is greater than 50, more consumers are feeling positive about their situation. When it is below 50, more consumers are feeling worse.
The Trouble Tracker Index addresses the proportion of consumers that have faced difficulties and the number of hurdles they have encountered. This index has shown a significant increase this month, pointing to more troubles for consumers, rising to 63.5 in June from 53.0 in May.
Banner Ads Still Relevant?
In surveys, consumers will tell you they ignore static banner ads, and don't click on them. But eMarketer Senior Analyst David Hallerman cites stats from a Microsoft Atlas study that animated .gif display ads running across the tops of Web pages still influence purchase decisions.
Hallerman, who has been researching a report about online brand marketing, calls banner ads "somewhat subliminal" because banner ads appear to affect consumers whether they realize it or not. "The positive, yet not always easy-to-measure effects and the increasingly lower cost and availability of banners give campaigns a steady foundation," reports Hallerman. "Banners help to fill in the campaign."
As marketers look to engage consumers -- and to gain better measurement and targeting tactics than what's available with most other media -- they will continue to increase budgets for Internet ads of all kinds, most likely at the expense of newspapers, magazines and other traditional media. Forecasters we typically cite in this blog expect the Internet's share of total media ad spending to rise from about 15 percent in 2010 to more than 20 percent in 2014.
The power of video
A large part of the growth will come from video, even in banner ads. Spending for online video advertising will make the format the second-biggest recipient of new ad dollars from 2010 to 2014, according to the eMarketer report "U.S. Ad Spending: How Big Is the Bounceback?" Of the more than $13.6 billion incremental dollars that will flow into online advertising during the next five years, one third (33%) will come from video ads, compared with 44.5 percent from search.
As search attracts more dollars and video gets more growth, experts say banner ads will increasingly become filler for those two ad formats, as well as for other elements of advertising campaigns. And as the market share for banner ads continues to decline -- even in 2014, when spending on banners will make up just one-fifth of all the ads on the Internet -- the format will remain strong.
I wish I had more direction for you. Just stay smart. Keep holding your breath. We’re either going to have a sparkling second half or a wet fuse dud. The winners will be those who are most able to adapt to adapt to the changes the new world order throws at them.
VCRGD6XDXT3T
The July 4th Holiday weekend is typically when we take time out for a breather from the frenetic pace of daily life to hit the beach, the mountains or just the backyard hammock for a little R&R and some good old fashioned pyrotechnics. It’s also a typical juncture in the business world as we try to decide whether we’re going to have a good year or not and start fretting about the 2011 budget.
I spoke the other day with John Graham, President & CEO of the American Society of Association Executives who said we live in an instant gratification “experience economy.” Consumers don’t want to have marketing messages pushed at them so much as they want to control the dialogue with your organization. It’s all about “I want what I want when I want it and how I want to get it,” related Graham.
So what do they really want? “Truth in advertising,” said Graham. “You need to earn their trust,” and thanks to social media, they have more tools than ever for punishing you for not delivering.
Second half forecast?
All signs point to “not clear.”
The financial markets have recently given back all their gains for the year – end then some. A stream of reports released this week pointed to slowing growth throughout the economy, from slower manufacturing growth to higher claims for jobless benefits and declines in home construction and pending sales. U.S. factory activity slowed in June amid a moderation in inflationary pressures. Private research group the Institute for Supply Management reported Thursday that its manufacturing index for the most recent month moved to 56.2, from 59.7 and 60.4. Readings above 50 signal expansion, so June's reading represented continued growth at a slower pace. Economists had expected to see slight moderation at a reading of 59.0.
Persistently high unemployment, modest gains in overall output, when added to weakness in housing and the threat posed by weak growth and financial problems in Europe, have driven up fears about what lies ahead for the U.S. recovery. Also, in the U.S. labor market, the four-week moving average of jobless claims -- which aims to give a better idea of the trend by smoothing volatility in the data -- went up by 3,250 to 466,500 in the week ended June 26. That represents the highest level since March 6, 2010.
Experts say compared to past recoveries from deep recessions, the current one is moving slowly. The economy expanded by less than an annualized 3.0 percent in the first quarter and there are increasing concerns that growth may slow down in the second half of the year. U.S. consumer confidence fell sharply in June, wiping out the gains posted in the previous two months as Americans worried about their job prospects. Some economist fear consumer spending won't be strong enough to replace a fading government stimulus in lifting the economy.
The June Consumer Reports Trouble Tracker Index measuring financial difficulties faced by consumers in the past 30 days, worsened, rising to 63.5 from 53.0 in May. The most troubling increase is in missed mortgage payments, which reached 3.9 percent, its highest level since tracking began in April 2009. The latest numbers show consumers have taken a step back facing increases in financial difficulties and a soured employment picture, says the report.
In June, more consumers reported difficulty in affording medical bills or medications versus the prior month, and faced lost or reduced healthcare coverage
• The Employment Index has dropped, pointing to an increase in the ranks of the unemployed, at least temporarily. The decline was led by the proportion of Americans that lost their jobs in the past 30 days
• Despite the high job losses posted in June, 7.4 percent of Americans reported starting a job in the past 30 days, well above May, and achieved its highest level recorded since April 2009.
• Consumers have scaled back their interest in shopping as well. The past 30-Day Retail Index for June, reflective of May activity, is 10.8, unchanged from the prior month
• May's next 30-Day Retail Index, reflective of planned purchases for June, is down slightly from the prior month. Per capita spending for the index categories in the past 30 days was $234, down slightly from May ($248)
Consumer Sentiment is unchanged from the prior month. The most optimistic consumers are between the ages of 18-34 (52.3), and with a household income of $100,000+ (54.9). The most pessimistic are households with an income less than $50,000 (39.2) and Americans 65 or older (41.7).
The Sentiment Index captures respondents' attitudes regarding their financial situation, asking them if they are feeling better or worse off than a year ago. When the index is greater than 50, more consumers are feeling positive about their situation. When it is below 50, more consumers are feeling worse.
The Trouble Tracker Index addresses the proportion of consumers that have faced difficulties and the number of hurdles they have encountered. This index has shown a significant increase this month, pointing to more troubles for consumers, rising to 63.5 in June from 53.0 in May.
Banner Ads Still Relevant?
In surveys, consumers will tell you they ignore static banner ads, and don't click on them. But eMarketer Senior Analyst David Hallerman cites stats from a Microsoft Atlas study that animated .gif display ads running across the tops of Web pages still influence purchase decisions.
Hallerman, who has been researching a report about online brand marketing, calls banner ads "somewhat subliminal" because banner ads appear to affect consumers whether they realize it or not. "The positive, yet not always easy-to-measure effects and the increasingly lower cost and availability of banners give campaigns a steady foundation," reports Hallerman. "Banners help to fill in the campaign."
As marketers look to engage consumers -- and to gain better measurement and targeting tactics than what's available with most other media -- they will continue to increase budgets for Internet ads of all kinds, most likely at the expense of newspapers, magazines and other traditional media. Forecasters we typically cite in this blog expect the Internet's share of total media ad spending to rise from about 15 percent in 2010 to more than 20 percent in 2014.
The power of video
A large part of the growth will come from video, even in banner ads. Spending for online video advertising will make the format the second-biggest recipient of new ad dollars from 2010 to 2014, according to the eMarketer report "U.S. Ad Spending: How Big Is the Bounceback?" Of the more than $13.6 billion incremental dollars that will flow into online advertising during the next five years, one third (33%) will come from video ads, compared with 44.5 percent from search.
As search attracts more dollars and video gets more growth, experts say banner ads will increasingly become filler for those two ad formats, as well as for other elements of advertising campaigns. And as the market share for banner ads continues to decline -- even in 2014, when spending on banners will make up just one-fifth of all the ads on the Internet -- the format will remain strong.
I wish I had more direction for you. Just stay smart. Keep holding your breath. We’re either going to have a sparkling second half or a wet fuse dud. The winners will be those who are most able to adapt to adapt to the changes the new world order throws at them.
VCRGD6XDXT3T
Saturday, May 29, 2010
Survey Indicates Business World More Complex Than Ever
Creativity and innovation the keys to business survival. Heed economic indicators, not schizophrenic stock market. Five keys to a real-world business plan.
U.S. financial markets continued their slide, hampered by uncertainty over how tough U.S. regulators will get with Wall Street speculators and how many blue-chip financial institutions may get sucked into the mounting European debt crisis. The key word here is “uncertainty” not actuality.
In the real world, consumer confidence is rising as the job market and housing front continue to improve. On Tuesday, The Conference Board said its Consumer Confidence Index rose to 63.3 points, up from 57.7 points in April. The index got a boost from the six-month consumer outlook which jumped to 85.3 from 77.4, the highest since August 2007. A reading of 90 indicates economy on solid footing, 100 means growth. Index hit a record low of 25.3 back in Feb 2009. Home sales were better than expected in April. Existing home sales were the highest in five months according to National Association of Realtors (NAR) and median home prices rose for the second straight month, 2.1 percent in April despite an 8-month inventory on the market. And ad spending continues to rebound as researcher IDC projected U.S. online ad spending to shoot up 12.6 percent by end of 2010, it has now raised that number to 19 percent to $31.5 billion. The change follows a string of surprisingly strong numbers for all segments of online advertising, even display, which had been in decline for the past two years. Last week, the Interactive Advertising Bureau said internet ad spending rose 7.5 percent in Q1 to $5.9 billion.
Creativity key to corporate survival
A newly released IBM study of 1,500 CEOs found that 79 percent expect increased global complexity and only 49 percent feel prepared to deal with it. The IBM study was based on face-to-face interviews with leaders of all size companies in 33 industries and 60 companies.
Surveyed execs identified “creativity” as the single most important leadership competency for enterprises seeking a path through this complexity. How so? Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.
CEOs now realize that creativity trumps other leadership characteristics. Creative leaders are comfortable with ambiguity and experimentation. To connect with and inspire a new generation, they lead and interact in entirely new ways. CEOs saw the need to seed creativity across their organizations rather than set apart “creative types” in siloed departments like product design. To benefit from the diversity of ideas each employee can contribute. Standouts encourage a new mindset of questioning. They invite employees at all levels to challenge assumptions based on past experiences and scrutinize “the way we’ve always done things.”
Our take? Great ideas, but a commitment to creativity and agility is more easily said than done when you factor in quarterly analysts and shareholder pressure and a hyper-paranoid workforce that’s scared to death of having a mistake pinned on them.
5 keys to a real world business plan
According to blogger, Seth Godin, the traditional corporate or venture capital-seeking business plan is a croc.
“If I want the real truth about a business and where it's going, I'd divide the modern business plan into five sections,” quips Godin:
1. Truth
2. Assertions
3. Alternatives
4. People
5. Money
The truth section describes the world as it is. Tell me about the market you are entering, the needs that already exist, the competitors in your space, technology standards, the way others have succeeded and failed in the past. The assertions section is your chance to describe how you're going to change things. We will do X, and then Y will happen. We will build Z with this much money in this much time. The alternatives section tells me what you'll do if that happens. How much flexibility does your product or team have? If your assertions don't pan out, is it over? The people section rightly highlights the key element... who is on your team, who is going to join your team. 'Who' doesn't mean their resume, who means their attitudes and abilities and track record in shipping. And the last section is all about money. How much do you need, how will you spend it, what does cash flow look like, P&Ls, balance sheets, margins and exit strategies.
Cell phones use more for data than calls
CITA, the wireless industry association reported last week that the amount of data in text, music, e-mail and other activities surprassed voice calls on mobile devices in 2009.
According to comScore, total cell phone subscribers from 2009 to 2010 is about the same, but the number of users going online is up across almost all Web categories. Visitors to social networking sites like Facebook and Twiter increased 78 percent. Many more users are going to reference site like Answer.com or wiki, up 46 percent and banking sites up 45 percent.
Top categories for browsing on mobile devices
1. Search 32.1M users +36%
2. Social networking 27.3M users +78%
3. Weather 26.1M users _+ 21%
4. News 24M users +29%
5. Sports info 19.7M users +25%
Don’t be fooled by the schizophrenic stock market. This recovery – no matter how fragile – is the real deal. Today’s market leaders are the ones who’ve had the pedal to the metal since the depths of the recession, not the “duck and cover” crowd. Agility, creativity and the willingness to make mistakes (and learn from them) will guide you through all types of water, no matter how turbulent.
VCRGD6XDXT3T
U.S. financial markets continued their slide, hampered by uncertainty over how tough U.S. regulators will get with Wall Street speculators and how many blue-chip financial institutions may get sucked into the mounting European debt crisis. The key word here is “uncertainty” not actuality.
In the real world, consumer confidence is rising as the job market and housing front continue to improve. On Tuesday, The Conference Board said its Consumer Confidence Index rose to 63.3 points, up from 57.7 points in April. The index got a boost from the six-month consumer outlook which jumped to 85.3 from 77.4, the highest since August 2007. A reading of 90 indicates economy on solid footing, 100 means growth. Index hit a record low of 25.3 back in Feb 2009. Home sales were better than expected in April. Existing home sales were the highest in five months according to National Association of Realtors (NAR) and median home prices rose for the second straight month, 2.1 percent in April despite an 8-month inventory on the market. And ad spending continues to rebound as researcher IDC projected U.S. online ad spending to shoot up 12.6 percent by end of 2010, it has now raised that number to 19 percent to $31.5 billion. The change follows a string of surprisingly strong numbers for all segments of online advertising, even display, which had been in decline for the past two years. Last week, the Interactive Advertising Bureau said internet ad spending rose 7.5 percent in Q1 to $5.9 billion.
Creativity key to corporate survival
A newly released IBM study of 1,500 CEOs found that 79 percent expect increased global complexity and only 49 percent feel prepared to deal with it. The IBM study was based on face-to-face interviews with leaders of all size companies in 33 industries and 60 companies.
Surveyed execs identified “creativity” as the single most important leadership competency for enterprises seeking a path through this complexity. How so? Creative leaders expect to make deeper business model changes to realize their strategies. To succeed, they take more calculated risks, find new ideas, and keep innovating in how they lead and communicate.
CEOs now realize that creativity trumps other leadership characteristics. Creative leaders are comfortable with ambiguity and experimentation. To connect with and inspire a new generation, they lead and interact in entirely new ways. CEOs saw the need to seed creativity across their organizations rather than set apart “creative types” in siloed departments like product design. To benefit from the diversity of ideas each employee can contribute. Standouts encourage a new mindset of questioning. They invite employees at all levels to challenge assumptions based on past experiences and scrutinize “the way we’ve always done things.”
Our take? Great ideas, but a commitment to creativity and agility is more easily said than done when you factor in quarterly analysts and shareholder pressure and a hyper-paranoid workforce that’s scared to death of having a mistake pinned on them.
5 keys to a real world business plan
According to blogger, Seth Godin, the traditional corporate or venture capital-seeking business plan is a croc.
“If I want the real truth about a business and where it's going, I'd divide the modern business plan into five sections,” quips Godin:
1. Truth
2. Assertions
3. Alternatives
4. People
5. Money
The truth section describes the world as it is. Tell me about the market you are entering, the needs that already exist, the competitors in your space, technology standards, the way others have succeeded and failed in the past. The assertions section is your chance to describe how you're going to change things. We will do X, and then Y will happen. We will build Z with this much money in this much time. The alternatives section tells me what you'll do if that happens. How much flexibility does your product or team have? If your assertions don't pan out, is it over? The people section rightly highlights the key element... who is on your team, who is going to join your team. 'Who' doesn't mean their resume, who means their attitudes and abilities and track record in shipping. And the last section is all about money. How much do you need, how will you spend it, what does cash flow look like, P&Ls, balance sheets, margins and exit strategies.
Cell phones use more for data than calls
CITA, the wireless industry association reported last week that the amount of data in text, music, e-mail and other activities surprassed voice calls on mobile devices in 2009.
According to comScore, total cell phone subscribers from 2009 to 2010 is about the same, but the number of users going online is up across almost all Web categories. Visitors to social networking sites like Facebook and Twiter increased 78 percent. Many more users are going to reference site like Answer.com or wiki, up 46 percent and banking sites up 45 percent.
Top categories for browsing on mobile devices
1. Search 32.1M users +36%
2. Social networking 27.3M users +78%
3. Weather 26.1M users _+ 21%
4. News 24M users +29%
5. Sports info 19.7M users +25%
Don’t be fooled by the schizophrenic stock market. This recovery – no matter how fragile – is the real deal. Today’s market leaders are the ones who’ve had the pedal to the metal since the depths of the recession, not the “duck and cover” crowd. Agility, creativity and the willingness to make mistakes (and learn from them) will guide you through all types of water, no matter how turbulent.
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