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September 2009 Archives

Some Categories May Be Vulnerable At Retail

By numantra on September 30, 2009 8:19 AM

Some Categories May Be Vulnerable At Retail

by Karlene Lukovitz, Yesterday, 4:04 PM

Retailers pushing to reduce costs and maximize margins in the face of sales declines are dead serious about optimizing assortments -- and in a growing number of cases, that's translating to significantly reducing SKUs or even cutting whole product lines, according to the Willard Bishop retail consultancy.

Reducing assortments has become an "increasingly viable option" for retailers, and CPG companies are reporting serious concerns about potentially "losing a brand" to SKU rationalization, reports VP Paul Weitzel in Bishop's latest Competitive Edge update, based on results of Bishop's 2009 Total Store SuperStudy. "We're not talking about a few SKUs," he warns. CPG companies are facing the unprecedented possibility that "they may lose an entire [brand] line."

Wal-Mart's "Win/Play/Show" category strategy, designed to focus the chain on categories where it can achieve high growth, will reduce assortment levels by 15% to 18% -- and this trend is far from limited to Wal-Mart, according to Weitzel.

Smaller-format stores and greater focus on increasing sales on the store perimeter at the expense of center-store space are among the factors putting the squeeze on available shelf space and creating an increasingly Darwinian environment for suppliers. Fewer SKUs also mean fewer out-of-stocks and lower labor costs.

To assess their category and brand vulnerabilities, suppliers need to have a firm grasp on five key metrics, according to Bishop: variety (What does the retailer need to meet consumer demand?); profitability (How much money does the retailer make on this item/line/category?); productivity (How productive is this shelf space?); working capital (What is the inventory costing, and what is the ROI?) and growth (Is the category growing or declining?).

Weitzel reports that based on Bishop's "Variety Scoring System," top food categories that could be vulnerable to SKU rationalization include bottled water; carbonated beverages, cookies, ethnic/ specialty, frozen poultry/meat, Mexican, new age beverages, salad dressings and vinegar.

Non-food categories that could be vulnerable include adult nutrition, baby HBC, bath, cosmetics, diet aids, grill accessories, lawn and garden, pet supplies, skin care and soap.

For more information visit www.mediapost.com

Google's YouTube Finds Money In Analytics

By numantra on September 29, 2009 7:57 AM

MediaPostNews

ONLINE MEDIA DAILY

Google's YouTube Finds Money In Analytics

by Laurie Sullivan, Yesterday, 2:07 PM

First Google found a way to generate revenue from YouTube video through Content ID. Now the Mountain View, Calif. company gives copyright holders a tool to track viewer sentiment to determine the best distribution and marketing strategy for music, video and other content clips that are generated and uploaded by the community.

Think Google Analytics for YouTube. The content management feature integrates Content ID, which allows copyright holders to find and monetize content uploaded across the YouTube network with YouTube Insights, a free analytics tool that lets media companies mine information. The combined tool could help copyright owners generate revenue from the data, which in theory should boost profits for YouTube.

ComScore released August 2009 data from the comScore Video Metrix service Monday. The data shows that 161 million U.S. Internet users watched online video during the month. Online video reached another all-time high in August with more than 25 billion videos viewed during the month, with Google Sites accounting for more than 10 billion.

Google sites continue to rank No. 1 in the U.S., surpassing 10 billion videos viewed in August, which represents 40% of all videos viewed online. YouTube.com accounted for 99% of all videos viewed on Google properties. Microsoft sites ranked No. 2 with 547 million, or 2.2%, followed by Viacom Digital with 539 million videos viewed, 2.1%, and Hulu with 488 million, or 1.9%, according to comScore.

Combining Content ID with YouTube Insights gives media companies data on view count, geographic region, most-viewed part of the video, and audience demographics. It allows content owners -- such as music labels, movie studios and advertisers -- to compare audience demographics between "claimed videos" and "official versions." It also provides data and insight into Web sites or search terms that drive the most traffic to versions of the content uploaded by YouTube members.

Now, all the statistics and the data from YouTube Insights is also available to Content ID partners -- making the content management tools more useful, especially for media companies claiming and complaining that videos uploaded by YouTube members generate lots of views.

"Some partners have millions of claims in the system," says David King, product manager of Content ID at Google. "From a marketing and business intelligence perspective, we needed to find a better way for them to understand their audience."

Aside from tracking the blogs where the videos appear, media companies now know the keyword terms that people search on to find the videos, and the sites that link back to videos that YouTube members upload. This allows media companies to understand their audience -- people who become passionate about a subject and take time to upload and distribute a video.

And this also provides fodder to design new distribution strategies after realizing that people uploading the videos have different ideas on distributing content than executives at major music labels, broadcasters and movie studio had thought.

A feature called Hot Spots identifies the hottest parts people rewind to within a video. It also gives media companies the exact location when viewers close the clip and lose interest. The feature enables copyright owners to understand why YouTube members edited, mashed-up and uploaded the videos in the way they did.

Sony Music used Content ID to claim a user-generated wedding video featuring a Chris Brown song. "JK Wedding Entrance Dance" became the music label's eighth-most-popular video on YouTube. While Sony learned about the demographics from their own upload, it also analyzed the wedding video to determine whether the demographics differed and sparked new ideas for distribution, sales and marketing that were not previously considered.

All major labels, broadcasters and studios in the United States rely on Content ID to protect copyrighted content. In fact, more than 1,000 companies worldwide tap into the technology. Rather than copyright holders turning their back on fans, media companies have begun to make money on consumers who take time to share their passions.

For more information visit www.mediapost.com

Digital Execs To Marketers: Online Advertising Works

By numantra on September 28, 2009 8:00 AM

MediaPostNews

ONLINE MEDIA DAILY

Digital Execs To Marketers: Online Advertising Works

by Mark Walsh, Thursday, September 24, 2009, 11:22 PM

A group of digital heavyweights from Web giants including AOL, Facebook and Google touted their latest efforts to convince marketers that online advertising in addition to search really works during a panel discussion Thursday at the Paley Center.

The Internet executives acknowledged that traditional banner ads have fallen short, but assured that more precise targeting and improved measurement would lead to better results for display advertising.

"The opportunity in digital advertising has always been out there," said Mike Murphy, vice president of global media sales at Facebook. "We as an industry for years used banner advertising to broadcast messages rather than deliver highly targeted, relevant advertising."

Facebook's answer to the dreaded banner has been "engagement ads" -- interactive home page units that let users do things like post comments, send invites or virtual gifts, and participate in polls. In effect, the company is taking what would have typically been a static display unit and "using it to feel more like content," according to Murphy.

That's one thing if the ad contains a movie trailer, but what if you're a consumer packaged goods company trying to sell paper towels?, asked moderator Todd Wasserman, editor of Brandweek. Murphy said he has been surprised at the range of brands that draw enthusiasts.

Eileen Naughton, Google's director of media platforms, pointed to a contest Heinz ran on YouTube two years ago inviting people to submit videos for selection as its next ketchup TV commercial. She said the effort led to 120,000 hours of people interacting with the brand.

To help prove that social media advertising is actually more effective than ordinary banners, Facebook earlier this week announced a partnership with Nielsen under which the social network will start polling users about some of the display ads on its site.

Facebook will then provide that data -- including responses from those who did not see an ad -- to Nielsen, which will package it for advertisers, say the companies.

Jeff Levick, AOL's new ad boss, emphasized that no single ad unit is going to be the silver bullet to rejuvenate display advertising. "It's more about how you place an ad and how you target it," he said.

"That's what's being defined as we enter the next wave of Internet advertising. Matching up content and advertising early in the process rather than trying to match ads with content down the funnel."

AOL's approach to attracting targeted advertising over the last two years has been to launch scores of niche content sites with plans to operate 100 different online properties by year's end.

Having conquered search, Google made its own major push into the display ad market last week by unveiling the overhauled DoubleClick Ad Exchange as a real-time marketplace for buying and selling unsold display inventory. "Half of all display ad dollars in the U.S. are display ad dollars," said Naughton, explaining the reasoning behind the initiative.

The new system is designed to simplify the ad-buying process and improve performance through an open exchange that lets advertisers bid on individual impressions and slot ads almost instantaneously.

For more information visit www.mediapost.com

Panel: Social Media Should Be Weaved Into All Marketing

By numantra on September 23, 2009 9:09 AM

MediaPostNews

ONLINEMediaDaily

Panel: Social Media Should Be Weaved Into All Marketing

by Mark Walsh, Yesterday, 3:52 PM

Don't think of social media as a separate marketing channel, but as a fabric running through all advertising and promotional efforts. That was the central theme that emerged from a panel at the OMMA Global conference Monday bringing together social marketing experts from brands, agencies and advisory firms.

The key isn't so much how to unlock the secrets of social media as to figure out how it plugs into campaigns across other media. Rob Master, North American media director for Unilever, recalled being flummoxed at a conference two years ago when asked how unsexy brands like Hellmann's Mayonnaise and Lipton Tea could harness the growing popularity of online social networks.

Looking back, he wondered: "Could I have been that unimaginative? The answer is 'Yes, I was.' At Unilever, we've gotten a lot more focused and a better understanding of where the consumer is going," said Master.

He added that the consumer packaged goods giant now looks at social media as playing "a role underneath everything we're doing."

Jordan Bitterman, senior vice president of media and content at Digitas, echoed that view when asked about how American Express approaches the social media marketplace. "It's very important that we look at social media as part and parcel of distribution," he said. "It's not something where the client should say: "Is Twitter on my media plan? It's not something that can be disaggregated from other campaigns."

The comments also reflect the embrace of social networks as "earned media," used to generate favorable publicity and word-of-mouth through things like Facebook "fan" pages or a Twitter feed that are not part of paid media. These platforms can be used to support broader ad campaigns without marketers having to cough up more money to publishers.

That's not to say that social media marketing doesn't require internal company investments in staffing and education. Master explained that Unilever has committed significant resources to boost the institutional understanding of social media, including a day-and-a-half-long off-site meeting on the topic. It's also in the midst of a companywide education effort on using Twitter.

Because of the greater emphasis on social media, it's also a good time for junior folks to move up the corporate ladder faster. "Young people in your organization are more important than ever," noted Master.

Whether or not marketers boast a host of Facebook or Twitter mavens, the critical skill they should hone is listening, according to Deborah Schultz, a partner in the innovation practice at The Altimeter Group, a consulting firm focusing on social media.

"The amount of time in telling and selling mode is shifting to listening," she said. That translates into more gathering and analyzing consumer feedback through social sites and relaying that information back into the company.

That transition may be difficult for agencies to make as well as their clients because of their traditional fee-for-service compensation structure. "The fundamental problem is the agency model of remuneration," pointed out Phil Cowdell, head of Mindshare North America. In other words, they want to get paid big fees for creating more traditional campaigns that rely chiefly on paid advertising.

For more information visit www.mediapost.com

Periodic Agency Evaluation Promotes Integrated Marketing Strategies

By numantra on September 22, 2009 7:56 AM

RESEARCH BRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, September 22, 2009

 

According to a survey conducted by the ANA (Association of National Advertisers), 82% of marketers report that their companies regularly conduct formal agency performance evaluations. The establishment of a formal evaluation program is near-universal among firms with annual revenues of $5 billion or more (92% versus only 74% of smaller firms).  As a corollary, formal evaluation programs are more common among firms with marketing/advertising budgets of $50 million or more, than among those with smaller budgets (96% versus 71%). 

The top benefits derived from a formal agency evaluation process, says the report, are identifying and improving under-performing agency relationships (92%) and identifying and recognizing high-performing agency relationships (85%),. 

Qualitative performance criteria carry much more weight in agency performance evaluations than do quantitative communications criteria (e.g., media cost savings, media buying goals) or business metrics (e.g., sales, share). 

Some of the specific qualitative performance criteria commonly used in agency evaluations include:

  • Innovation (85%)
  • Strategy (82%)
  • Implementation/follow through (82%)
  • Fiscal stewardship (81%)
  • Ideas (77%)
  • Teamwork (77%)
  • Meeting project objectives (77%)

59% of firms conduct two-way, or 360-degree, evaluations in which the agency also evaluates the client. Additionally, 13% of marketers identified a new practice in which the evaluation processes allows for their respective agencies to evaluate one another. 

58% of marketers rate agency performance evaluation as "extremely" or "very effective" in maintaining the client-agency relationship, and 38% rate their agencies "somewhat effective." Only 3% rated their programs as "not too effective" or "not at all effective."

Bob Liodice, president and CEO of the ANA, says "Having a formal agency evaluation process is... more imperative at a time of heightened focus on marketing accountability... this will productively support collaborative integrated marketing and brand building strategies in the long run."

Best practices that were identified from the survey include:

  • All marketers (even those with smaller budgets) should conduct formal agency performance evaluations on a regular basis
  • Assign a trusted, neutral point person to keep focused on objectives and metrics vs. personalities
  • Consider having a more informal "mid-term review" to avoid surprises at the end of the year
  • Use a consistent format for all agencies, in person, with clear corrective action plans with due dates and owners

76% of marketers report that their firms have a formal evaluative process in place for their traditional creative ad agencies. Other agencies most likely to be subject to an evaluation are:

  • Traditional media agencies (68%)
  • Digital agencies (47%) 
  • Direct marketing agencies, public relations agencies and multicultural agencies (25%)

In general, formal evaluations are conducted annually by about two-thirds of the firms while about one-third evaluate their agencies more frequently than annually.

For more about the ANA and this study, please visit here.

For more information visit, www.mediapost.com

Adobe Debuts App Distribution Service

By numantra on September 21, 2009 8:34 AM

MediaPostNews

ONLINE MEDIA DAILY

Adobe Debuts App Distribution Service

by Mark Walsh, 2 hours ago

 

Adobe Systems is rolling out a new set of services allowing advertisers and publishers to distribute Flash-based applications across social networks, mobile devices and the desktop more easily.

The new offering unveiled at the Interactive Advertising Bureau's Mixx Conference and Expo Monday, comes on the heels of Adobe last week announcing its agreement to acquire analytics giant Omniture for $1.8 billion.

Adobe Flash Platform Services for Distribution promises to help make the creation and sharing of Web applications across diverse platforms a more seamless process for developers of all kinds. The online suite of services also includes tools to help users to promote, monetize and track app campaigns.

"Social media has really become mainstream," said Puneet Goel, product marketing manager at Adobe, which makes Flash, Reader, Photoshop, and other creative and content tools. A lot of advertisers are increasingly using branded applications to reach out to these audiences, and that's where we could help advertisers with these new services."

The initiative builds on the popularity of Flash in powering everything from online video to rich media ads to casual video games. The company says content running in Adobe Flash Player reaches 98% of PCs with Internet access.

Launched with widget network Gigya, the new, free distribution platform lets advertisers send Flash-based and other apps across 70 popular sites and social networks including Facebook, MySpace, iGoogle, Bebo and Xanga.

On the mobile side, the service allows apps to go out on devices using the Symbian and Windows Mobile operating systems as well as the iPhone. End users will receive an SMS text message with a link to the desired app. After clicking, the user is sent a version of the app tailored to their device. Goel said Adobe is initially offering mobile distribution for free, but plans to charge for the service following the beta period.

Adobe is also offering a paid promotion option with Gigya to accelerate app distribution via cross-promotion. So someone would be given the chance to download another app in addition to the main one being advertised. Under this program, advertisers would be guaranteed a certain number of installs for a campaign and be charged at the rate of $1 per install.

Lionsgate is among the clients already working with the new distribution platform. "We can use the service to repurpose, distribute and track the content to our customers throughout the content life cycle from theatrical releases to DVD to digital distribution," said Leo Collins, executive vice president and CIO at the entertainment company.

Later this year, Adobe will also introduce a separate service that allows developers to create a single version of an app that can be automatically customized for different Web properties including Facebook, MySpace, Twitter and Yahoo. "This will insulate developers from creating multiple apps for different networks," said Goel. He added that it would also save developers from having to update apps when social networks make changes to their application programming interfaces, or APIs.

Goel said the app distribution service was in the works long before Adobe announced plans to acquire Omniture, and was unrelated to the proposed merger. But he acknowledged that Adobe can't simply be a technology maker anymore. "One of the big reasons Adobe is getting into services is that it can't just be involved on the tools side," he said. "Customers need additional capabilities, and Adobe Flash Platform Services is a step toward doing that."

For more information visit www.mediapost.com

Pizza Friday 09.18.09

By numantra on September 18, 2009 10:36 AM
Cheap Trick, BMW, and Sprint all guest star in this week's exciting episode of Pizza Friday.

Pizza Friday 102
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Google Fast Flip Relies On Behavior To Serve Content, Ads

By numantra on September 16, 2009 7:36 AM

MediaPostNews

ONLINE MEDIA DAILY

Google Fast Flip Relies On Behavior To Serve Content, Ads

by Laurie Sullivan, Yesterday, 2:20 PM

Google Labs released Google Fast Flip this week in hopes of speeding the way readers read online, but some advertising executives believe it could offer incentives to bring in more advertising revenue, too. Similar to a print magazine, the "experiment" lets people browse sequentially through bundles of recent news, headlines and popular topics, as well as feeds from individual top publishers.

The tools can also personalize the experience by taking behavioral cues from selections the reader makes, serving up more content from sources, topics and journalists that the person seems to like. In short, the reader gets "fast browsing, natural magazine-style navigation, recommendations from friends and other members of the community" and a selection of "serendipitous and personalized" content, Krishna Bharat, distinguished researcher, Google News, explains on the official Google blog.

The Fast Flip format should reinforce brand value and consumer behavior based on most measures that the online ad industry typically relies on, but there's no guarantee. "You're dealing with an entire online generation that's more visually literate than any in the past," says Robert Passikoff, founder of Brand Keys, a media and marketing modeling firm, who believes familiarity, in part, attracts people to use products.

While tapping into reader behavior to serve up content could reinforce use, familiarity typically spurs repetition, luring consumers back to purchase or use the product again and again. Fast Flip offers that experience. It has a mobile application "slideshow feel," similar to how people scroll through text and images on Apple's iPhone, according to Mark Simon, vice president of industry relations at Didit.

Showing full-scale screenshots, rather than text links, lets publishers keep a steady stream of eyeballs in front of display ads that are typically tucked close to news articles, Simon says. Text-only news results don't allow this, which is one major sore point between Google and news publishers. Fast Flip appears to solve this problem, he adds.

Simon thinks Fast Flip will allow Google to gain revenue from Google News in a new way. "Google and its Fast Flip news partners split Google's advertising revenue," he says. "This is clearly an olive branch that Google is offering news publishers, and I'd expect more partnerships to emerge as Fast Flip increases in users."

And publishers just might take that Google olive branch and hang on tight. Google has already partnered with The New York Times, The Atlantic, The Washington Post, Salon, Fast Company, ProPublica and Newsweek to build the application. These partners will share the revenue earned from contextually relevant ads.

David Gould, president at Resolution Media, believes by "giving publishers the ability to opt-in and share in the ad revenue," Google is responding to "backlash" and criticism from publishers who believe the Mountain View, Calif. company profits from content on their sites served up on Google News.

"From an advertiser's point of view, we're eager to learn how these units will be targeted, but in general we're always in favor of testing new distribution channels," Gould says. "Advertisers, however, running display ads directly with the publishers may lose out on the exposure if users don't click through on the screenshots."

While some believe it could create new ad placements and formats to shake up the online ad industry just a tad bit more, Larry Bak, principal and executive creative director at Elevate Studios, says Fast Flip brings back the familiar feel of scanning the magazine rack at a bookstore.

Not only will Fast Flip become a "really powerful" tool for people to scan content and zero in on what they find interesting, but "it will make publishers more responsible for what they put on their front page, to entice visitors to click through," Bak says.

For more information visit www.mediapost.com

Pizza Friday 09.11.09

By numantra on September 11, 2009 9:52 AM
A Queen in a Mustang, an Android in a mobile phone, and a doorway to pizza on a beach.  Where else but Pizza Friday.

Pizza Friday 101
View more presentations from Mike Heronime.

Microsoft Testing Bing & Ping

By numantra on September 4, 2009 7:44 AM

MediaPostNews

ONLINE MEDIA DAILY

Microsoft Testing Bing & Ping

by Laurie Sullivan, Yesterday, 4:12 PM

 

Microsoft has begun inviting Facebook fans to sign up and test a program it calls Bing & Ping, which will let them share what they search for on Bing with friends through Facebook, Twitter, email, and possibly other social sites that are soon to be announced.

Fans will have the opportunity to share restaurant recommendations and local movie times, post a flight status with Facebook friends, and more. Microsoft plans to share more information in the "coming days."

Bing's Nicholas Kerr provides examples related to football in a blog post on how someone might use the new tool. "Say you use Bing's Instant Answers feature to check the score of the game, and you notice that your buddy's favorite team has just been beaten pretty handily," he writes. "Say you want to 'delicately' remind him of their less-than-stellar moves with the ball." Bing & Ping lets you share the NFL instant answer through social networks, reminding friends that their team has no defense.

Many of Bing's 67,676 Facebook fans, such as Imran Hussain, Suzy Tonini and Justin Scarborough, have already posted comments asking Microsoft to sign them up. "can i be in bing and ping please???" Scarborough writes on Bing's Facebook page wall.

Scarborough, senior search manager at Razorfish, says: "I was hoping to get in, but I haven't received an invite yet." He wants to use the service for research purposes for the agency.

Those who want to take the feature for a test drive need to become a fan of Bing's Facebook page. If invited, fans must submit their Windows Live ID to receive additional details of the feature and examples of how to use Bing & Ping.

Debra Aho Williamson, senior analyst at eMarketer, says people who are planning a trip might want to share the information with friends they plan to take a trip with, but sharing the information broadly across all your Facebook friends really doesn't make sense. "It seems you would only want to share the information with specific people," she says.

The idea of social networks becoming a continually changing database of what consumers are interested in and what they might want to purchase at any given time is a theme carried through Williamson's latest report, titled "Marketing on Social Networks: Branding, Buying and Beyond."

Social networks are not just a superficial way for people to share quotes from music lyrics or photos of their kids or play games. Yes, "staying in touch with friends" remains the most common reason consumers continue to come back. But the true value resides much deeper.

"The information on Facebook should be turned into a clickable link," Williamson says. "If the link links to Bing, a search may come up automatically. Of course, this is all speculation until they make the announcement. It could be a tighter integration between Bing and social networks like Facebook and Twitter. It might get more people who would have searched on Google searching on Bing."

For more information visit www.mediapost.com

Bright Spots in The Radio Sector

By numantra on September 3, 2009 7:47 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, September 3, 2009

 

Much of Radio's weakness in Q2 and for the first six months of 2009 is linked to marketers associated with the auto industry (formerly Radio's top ad category, now #3) and major retailers feeling the impact of shaky consumer confidence and spending. 

As Q2 unfolded, Jeff Haley, President and CEO of the RAB says that increasing signs of an improving economy emerged, indicating that "we are most likely past the Q1 low point for Radio revenues and are now on the rebound."

According the new RAB report, some advertisers, previously unable to compete against their category's leaders, are using this opportunity to increase their share and position within the market. "Taking advantage of Radio's core strengths, advertisers... are increasing their share of voice on the airwaves, providing encouraging signs," remarked Haley.

Radio's revenue derived from Digital platforms continues to rise, illustrated by a 10% increase at 2009's mid-point. Digital will be an increasingly important sector as Radio continues to evolve into a cross-platform medium. The ability to leverage local advertisers should boost revenue significantly.

Revenue Comparisons - 2009 vs. 2008 (In Millions) 

Revenue

$ Q2 '09

% Chg

$ 1st Half 09

% Chg 

Local

2,381

-25%

5,185

-25% 

National

591

-24%

1,064

-25% 

Local & National Combined

3,422

-25%

6,249

-25% 

Network

274

-10%

512

-11% 

Digital

120

9%

221

10% 

Off-Air

355

-13%

619

-13% 

Grand Total

4,171

-22%

7,601

-23% 

Source: Miller, Kaplan, Arase & Co. & RAB, August 2009

Prior to the downturn RAB projected Off-Air, then comprising Digital and Off-Air revenues, to reach $2B in 2009. Based upon current levels, indicators are that these two sectors in combination may approach this mark by year-end, despite the economy. (Effective 2009, the RAB separately reports Digital and Off-Air.) As confirmation, a recent projection from BIA anticipates Digital advertising alone on Radio is on an upward track.

Revenues from Digital Advertising, Radio Industry ($ in Millions)

Year

Digital Revenues

2007

$180

2008

247

2009

298

2010

426

2011

572

2012

733

2013

908

Source: BIA Advisory Services, August 2009

Americans still want to reward themselves with a restaurant meal. Local and National spending by advertisers looking to cash in on this trend, while down 11% for both the quarter and YTD, moved the restaurant category into the top Radio spot for Q2 and solidified the #2 position year-to-date. 

Restaurants 2009 vs. 2008 Local and National Radio (In Millions) 

Advertiser

$ Q2 '09

% Chg

$ 1st Half '09

% Chg 

Subway

 24.7

71%

44.2

21% 

Dunkin Donuts

24.4

23%

47.5

37% 

Romano's Macaroni Grill

7.0

138%

10.7

148% 

Jack in the Box

6.9

198%

11.8

133% 

White Castle

6.0

96%

10.8

156% 

Arby's

5.0

382%

10.4

633% 

Source: Miller, Kaplan, Arase & Co.,/ X-Ray Markets, August 2009

Based on year-to-date Local/National expenditures, Cellular/Public Utilities

continues to dominate Radio's airwaves, despite slipping to the #2 spot behind Restaurants in Q2. AT&T remains the top advertiser in-category and for Radio overall, but Verizon Wireless has now narrowed the gap by 11 percentage points in the last quarter and 15 percentage points YTD (and is Radio's second-biggest spender).

Automotive advertising may be turning the corner, says the report. Q2 results give some reason to hope that the slowdown is easing. Within the Local and National sectors, the overall category came in at half of Q2 2008 spending - yet markedly improved over the 58% lag in Q1 '09. 2009 YTD results are at 51.3% of last year.

Looking at 2009 as a whole, several import nameplates stand out with full-YTD spending ahead of last years comps:

  • Volvo Motor Corp. (+124%, to $16.2M)
  • Volvo Dealer Association (+242%, to $3.0M)
  • Audi Motor Corp. (+107%, to $6.8M)
  • Hyundai Motor Corp. (+4.9%, to $6.0M)
  • Kia Motor Corp. (+178%, to $4.8M)

Automotive 2009 vs. 2008 Network Radio (In Millions) 

Advertiser

$ Q2 '09

% Chg

$ 1st Half '09

% Chg 

GM Corp. Div. (GM)

8.9

27%

16.4

72% 

Ford (Auto & Truck Division)

2.9

13%

5.5

6% 

Carfax

2.0

57%

3.4

68% 

Source: Miller, Kaplan, Arase & Co., / X-Ray Markets, August 2009 

TV and Cable companies are benefiting from Americans' increasing tendency to entertain themselves at home - and spending on Local and National Radio puts the category in 4th place overall for Q2 and YTD, with spending just about even with 2008 thus far this year. Among media players who have channeled additional dollars into Radio in 2009 are these cable networks:

Television/Networks/Cable Providers 2009 vs. 2008 (Local and National Radio In Millions) 

Advertiser

$ Q2 '09

% Chg

$ 1st Half '09

% Chg 

TNT Turner Network Television

10.6

874%

21.1

635% 

Lifetime Cable Network

10.2

60%

21.3

11% 

USA Network

9.5

73%

11.7

25% 

BET Black Entertainment Network

5.3

10%

12.2

11% 

Showtime

3.2

61%

5.9

156% 

Source: Miller, Kaplan, Arase & Co.,: X-Ray Markets, August 2009 

With the tough economy prompting more consumers to brown-bag lunches and share family dinners at home, quite a few food marketers and retailers are zeroing-in on Radio's ability to reach consumers in a shopping mode. The list includes a combination of local and national chains:

  • Supervalu (+270% in Q2, +409% YTD)
  • 7-Eleven (+156%/+91%)
  • Publix Supermarkets (+75%/+81%)
  • HEB Food Stores (+384%/+287%)
  • Meijer Food Stores (+61%/+49%)
  • Whole Foods Market (+53%/+104%)
  • Quiktrip (+343%/+278%)

Specialized advertisers will increase their advertising expenditures to promote the value of their services. Of the top 13 advertisers, three are haircutting services and have collectively increased their spending 25% and now account for 18% of the category.

Professional Services 2009 vs. 2008 Local and National Radio (In Millions) 

Advertiser

$ Q2 '09

% Chng 

Great Clips

6,538.0

27% 

Supercuts

2,701.0

35% 

Sport Clips

2,267.0

11% 

Source: Miller, Kaplan, Arase & Co.,/ X-Ray Markets, August 2009

Specialized retailers infused Radio's Local and National sectors with a 19% second quarter increase, bringing the first half of 2009 up 7%.

Specialty Retail 2009 vs. 2008 Local and National Radio (In Millions) 

Advertiser

$ Q2 '09

% Chng 

GAP Clothing

11,555.8

 760% 

K & G Men's Center Clothing Store

4,188.5

100% 

1-800-Flowers

4,162.3

22% 

Famous Footwear

3,717.9

4%

Luxottica Group Eyewear

3,310.7

1850% 

Source: Miller, Kaplan, Arase & Co.,: X-Ray Markets, August 2009

Within the subcategory of Department Stores, Kmart was the third highest spender within Q2 '09 with a 93% increase versus same time period year ago (up $5.2M). Burlington Coat Factory also increased their quarterly spend nearly three-fold (up $2.4M). Offering savings in the Home Improvement sub-category, Ace Hardware increased their quarterly spending 56% (up $1.1M) and True Hardware was up $2.3M - both ending first half '09 up (21% and fifteen-fold respectively).

Local and National Advertiser Category analysis is based on data from Miller, Kaplan, Arase & Co. X-Ray Market Reports. X-Ray Market Reports are compiled from advertiser expenditure data direct from station billing in 35 markets, extrapolated to the entire U.S. Network Radio Advertiser Category spending analysis is based on data from TNS Media Intelligence. 

For more information visit www.mediapost.com

Is Sharing The New Advertising?

By numantra on September 2, 2009 8:21 AM

MediaPostBlogs

ONLINE MEDIA DAILY commentary

by Ben Straley, 1 hour ago

 

Every marketer knows that launching a great Web site, brand campaign, or promotion is just the first step; then you've got to get people to visit, click and engage. The old way was to buy a ton of targeted search ads and plaster sites where you thought your core visitors were hanging out with banner ads. But the traditional "paid media" model is being seriously challenged by a new concept: sharing.

Study after study shows that people trust content, information, and promotions shared with them via friends far more than they do advertising; an April report from ZenithOptimedia found that recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases. Of course, email, texting, Facebook, and Twitter are making this type of word-of-mouth sharing easier than ever before. Etsy recently reported that Twitter is the third-highest source of traffic to their site, and according to a Hitwise study, PerezHilton receives more of his traffic from Facebook than any other source.

Brands like Alaska Airlines and Microsoft are tracking the sharing of links and content about their brands - the so-called "earned media" that is so valuable today -- so they can accurately measure the impact sharing has on driving traffic, clicks and conversion to their corporate and campaign sites. Armed with this information, they're changing the way they plan and manage their online marketing campaigns in pretty fundamental ways. After working with lots of companies to do this type of measurement and analysis, we've uncovered some surprising results: namely that sharing drives significantly more traffic than search in some cases. On average, we've found that between 15-20% of unique visitors to the sites we're tracking come by way of shared links, and there is a consistent left in conversion rates among visitors from this source.

One client recently tracked the number of visitors who came to a promotional site via a shared link sent to them via email, Twitter, Facebook, YouTube etc. The company found that over 50% of all people who converted came to the site via a shared link. What's more, the visitors that came to the site via shared links were1.5x more likely to convert than visitors that came from other sources including search.

So what does this mean for marketers? First, it means you have to start thinking about how to create content that invites engagement and encourages sharing; shift your thinking from "broadcast" to "dialogue", and from traditional ad spending or "paid media" to the free "earned media" of shared links. Campaigns that contain compelling offers, entertaining video, games, contests, the ability to create and share user-generated content, and other social interaction features will generate the most sharing. Secondly, think about what you want visitors to do when they get to your site if they arrive via a shared link; the viral nature of the campaign should be continued on the landing page of the site, and all the way through to conversion, inviting people to join a conversation, play a social contest, vote on other people's posts etc. Make sure to have a "share this" button on your website as well, so you can encourage the sharing to continue even after visitors arrive.

Lastly, it means you need to re-think the way you use paid media to drive traffic to your campaigns. You'll need to use a word-of-mouth monitoring tool to measure the traffic coming to your sites via shared links, and also to analyze which exact sites, blogs, and social networks are generating the most sharing. You can then use this knowledge to make strategic media buys on those sites, and sites like them, and to fine-tune your paid search keyword buys; paid media still has a role in driving traffic, but you can definitely spend more wisely. In other words, instead of guessing what part of your campaign is driving the most buzz and among which groups online, measure the actual pass-along of content to measure it with precision.

You may be surprised who's talking about your brand, where, and with whom they're sharing your content. Content that gets passed-along is a brand-building and conversion-boosting goldmine - and shared links are the currency marketers can use to measure the true impact of word-of-mouth for the first time. As a consequence, marketers need to actively track and measure sharing, then use the data to increase the appeal and "sharability" of their content. Getting people to spread the word about your brand is tantamount to success in this social world: the first step is to find out exactly who is talking and what they're sharing.

For more information visit www.mediapost.com

 

Integrate Ads For Effective Brand Awareness

By numantra on September 1, 2009 8:23 AM

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, September 1, 2009

 

Research released by Dynamic Logic reveals that ads integrated into the content of the page are the most effective in driving online ad awareness and purchase intent. Based on 2,390 online display campaigns that took place over the past three years, the study found that half banners and rectangles were more effective than ads that frame the page such as leaderboards and skyscrapers.

Ad Formats by Online Ad Awareness

Format

Size

Delta % Impacted (Avg. +3.0)

Rectangle

180x150

4.6

Half banner

234x60

4.4

Medium rectangle

300x250

2.7

Large rectangle

336x280

2.3

Wide skyscraper

160x600

2.0

Leaderboard

728x90

1.9

Skyscraper

120x600

1.9

Half page ad

300x600

1.8

Full banner

486x60

1.6

Button

120x90

- 0.6

Source: Dynamic Logic MarketNorms, Q1 2009 (N=3,806,527, Delta= Exposed control)

Ken Mallon, Dynamic Logic's SVP of Custom Solutions, commented: "We continue to believe that creative quality is the most important factor driving the success of online advertising... (but) based on the current data, bigger doesn't always mean better, but these new ad formats are quite unique..."

The research also revealed that ad campaigns using Rich Media with Video created the strongest brand impact (across most branding goals, including aided brand awareness, online ad awareness, brand favorability, and purchase intent) compared to campaigns using Simple Flash and Rich Media without Video formats. The worst performer was Simple Flash, the format used most often by agencies and advertisers, notes the report.

Change in Brand Impact by Type of Format (% Delta vs. Fixed Frequency Level=1)

 

Delta Performance by Ad Format (* = No Significant Effect)

Brand Measurement

Rich media with video

Rich Media without Video

Simple Flash

Aided brand awareness

1.9

0.9

0.4

Onlline ad awareness

2.6

2.1

2.2

Message association

*

0.7

1.0

Brand favorability

2.3

0.5

*

Purchase intent

1.2

0.5

*

Source: Dynamic Logic MarketNorms, July 2009 (Numbers are % impact change vs. exposed control)

Mallon concludes that "...strategy and consideration of branding goals is often an after-thought in decisions about creative format... "

Included in the report, Dynamic Logic offers some guidelines for advertisers and agencies based on the findings:

  • Try delivering a Rich Media with Video ad as the first ad exposure to addressable online audience.
  • On a tight budget, select less expensive formats and consider frequency capping to extend reach.
  • Factor media fees and rich media fees in together and optimize most effective formats
  • For message association goals, consider adding the message to every frame of the ad for best results.
  • For every branding goal studied, a different rich media format was better than Simple Flash at getting results.

The Report states that the results cited have not been adjusted for exposure frequency, demographics, ad size, Web sites, advertiser industry and other factors that may contribute to brand lift. These findings are aggregate in nature, reflect past results and are not a guarantee of future results for individual campaigns.

For additional information and details about the study, please go here.

For more information visit www.mediapost.com

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