October 2009 Archives

It's a Very Scary Pizza Friday.  Witches, vampires, zombies, monsters, and other typical advertising professionals are responsible for this week's selection of frightful ads.

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, October 29, 2009

 

According to a forecast and industry update report from Adcentricity, 42% of agency and brand marketers plan to increase their digital out-of-home (DOOH) advertising spending through 2009 and the first half of 2010. Total DOOH spending is on target to hit $4.53 billion by 2013, up from $2.6 billion in 2009.

Digital Out-of-Home Media Spending (US$ in Billions)
Year	Media Spend ($Billion)
2005	$1.300
2007	2.100
2009	2.600
2011	3.565
2013	4.530
Sources: PQ Media; VSS Forecast, October 2009

This projection suggests that DOOH is among the fastest-growing media in North America and will account for 44.1% of all OOH spending by 2013, the report concludes.

The  Adcentricity "2010 Digital Out-of-Home Outlook & Planning Guide," also revealed that digital out-of-home advertising currently reaches two-thirds of US residents ages 18+  each month and delivers a fairly representative cross-section of consumers.

Previous Month Digital OOH Audience (Persons Seen Screen x000)
Venue	Digital OOH Audience Past Month	Persons Estimated
All listed	67%	155,519
Shopping mall	31	71,957
Grocery store	30	69,636
Retail or department store	29	67,314
Gas station	22	51,066
Movie theater	21	48,745
Airport	19	44,103
Doctors office or hospital	19	44,103
Stadium or arena	18	41,781
Drug store	14	32,497
Restaurant	14	32,497
Office building	11	25,533
Bar	8	18,569
Health club	7	16,248
Elevator	5	11,606
Riding public transit	5	11,606
Waiting for public transit	4	9,285
Source: Adcentricity, October 2009

Of those who recall seeing digital out-of-home displays in the past month, 76% noticed them at multiple venues, the report says.

• Digital video screens in retail locations (including grocery stores, large retailer/department stores, drug stores, shopping malls or convenience stores) reach more than half of American adults in an average month.
• Digital out-of-home displays at gas stations and movie theaters each reach more than 20% of US adults per month.

Digital out-of-home currently has approximately 112 significant network operators (many running multiple networks) in the US and approximately 45 within Canada who accept third-party advertising. Collectively, there are active media screens in more than 70 venue types each with unique audience and media characteristics to understand.

38% of active digital OOH network operators are planning capital investments of between $1M-$10M to expand their venue and screen capacity in the next 12 months, finds the study. Just less than 20% of them plan on expanding their screen count to more than 1,000 each.

Though digital OOH advertising continues to grow, figures from the Outdoor Advertising Association of America for Q209 revealed that out-of-home revenue declined 18% for the quarter, from $2.2 billion in Q208 to $1.82 billion.

For additional information, please visit Adcentricity here

For more information visit www.mediapost.com

An article release today by USA Today finds that "Simplicity" is the latest marketing trend.  And we know why. This was an issue we addressed a few months ago in one of our many presentations on the subject of marketing and advertising.  See the presentation below. 

In this presentation, you'll see how simplifying products and services as well as marketing messages and brand promises will resonate with today's consumer as they struggle with having too much of everything and need the clutter and noise and nonsense cleared out of their lives.

Here's our presentation on the subject:



And here's an excerpt from the article in USA Today:

A New Marketing Trend Is Upon Us: Simple Sells
USA Today
Bruce Horovitz writes that 2010's most powerful marketing mantra might be "simple is better" as companies move away from trumpeting cheap prices and into touting products that have "fewer parts, additives or ingredients." Consumers not only want to know what's in the products they buy, they also want to know what's not in them.

There has been a 64.7% increase in new products using the words "simple" or "simply" in their product or brand name from 2005 to 2008, according to Datamonitor. And products with simplified labels will be more sought-after in coming months than those using the formerly hot buzzwords "organic" or "natural," says Mintel trends tracker Lynn Dornblaser.

Think Häagen-Dazs' Five ice cream line with all flavors containing only five ingredients. Or Starbucks' revamped menu with fewer ingredients (banana bread, for example, has gone from 15 to 10). Beech-Nut's Let's Grow line of toddler foods proclaims "No Junk" on its labels. And Kraft's Triscuit brand is replacing palm oil with healthier soybean oil while its marketing and labeling spell out the specific whole-grain wheat it uses (soft white winter).

Read the rest of the story here.

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, October 28, 2009

 

The J.D. Power and Associates 2009 Teens and Early Careerist report says that online conversation analysis of two subsets of Millenials finds that they are concerned about the current economic environment, and are becoming particularly value-conscious and focused on finding employers that offer stability and long term growth opportunities.

These two important subsets of Generation Y (born during the 1980s and early 1990s): teens ages 14 to 18, and early careerists ages 22 to 29, display markedly different views, opinions and behaviors from the other, and have the potential to attain the greatest spending power of any previous generation.

The brands that generate the highest volumes of online discussion among early careerists, relative to other age groups, indicate the increasing popularity of value brands, which are competing with trendy brands for share of mind. For example, among retailers, value brand Old Navy closely follows trendy brands Anthropologie and Bath & Body Works in terms of positive discussion volumes among early careerists. Among quick-service restaurants, fast food chains Arby's and Subway receive particularly high volumes of positive discussion, along with premium ice cream chain Cold Stone Creamery.

Among retailers and quick-service restaurants, the brands that receive the greatest volumes of online discussion among early careerists, relative to volumes among social media users in other age groups, are as follows.

Social Media Top Brand Discussion Activity Among Careerists
Rank	Retailers	Quick-Service Restaurants
1	Anthropologie	Arby's
2	Bath & Body Works	Cold Stone Creamery
3	Old Navy	Subway
4	Victoria's Secret	Taco Bell
5	Forever21	Panera Bread
6	Urban Outfitters	Dunkin' Donuts
7	H&M	Wendy's
8	Gap	Starbucks
9	American Apparel	White Castle
10	Best Buy	Burger King
Source: JD Power & Associates, October 2009

Overall, the brands that generate the greatest volumes of discussion among early careerists relative to other age groups are American Idol, Google, Twitter, Yahoo! and YouTube. 

Compared with social media users overall, early careerists are much more concerned about the state of the economy, influencing online conversations that indicate a strong degree of disillusionment among the group. And, the finds that although early careerists consider job-hopping a necessity for moving forward in a career, they strongly desire long-term stability and security within their chosen professions.

Chance Parker, vice president and general manager of the Web Intelligence Division at J.D. Power and Associates, calls this a "quarter-life crisis."  He says "... many are in the process of reevaluating their educational, career and lifestyle choices."

When it comes to purchasing environmentally friendly products, the two poles of Gen Y exhibit considerably different attitudes. While teens indicate that they will not pay more for green products, but they are considerably less likely to consider products that they do not perceive as green. Early careerists know they should care about the environment, but like most consumers in other demographic groups, will make environmentally friendly choices only if brands and companies make it convenient for them to do so.

The Participatory Marketing Network, almost concurrently, looked at the communications channels most influential on the GenY/Millenial group. This GenY behavior study, with the Pace University's Lubin School of Business' IDM Lab, looked at time spent and preference for visiting social networks, reading/writing email, texting, talking on the phone, watching TV, reading magazines and surfing the web (non social media sites). 

While Gen Y do indeed spend considerable time on social networks, when asked what they would least like to give up for one week, only nine percent said social networks while 26% said email and 26% said texting.

Michael Della Penna, PMN co-founder and Executive Chairman, says "... as long as email remains the collection point for social networking updates, including alerts around new followers, discussion updates and friend requests, it will remain a powerful force in marketing and our lives."

Activities least likely to be "given up for a week:"

• Email (26%)
• Text messaging (26%)
• TV (15%)
• Talking on phone (11%)
• Visiting social networks (9%)
• Reading magazines (7%)
• Visiting non social network sites (6%)

Additional findings from the behavioral study include:

• Average time spent on social networks per month is 33 hours, compared to 31 hours for email, dispite the disparate media coverage given to Facebook and other social networks
• Texting remains an important communications tool for Gen Y with the average number of text messages per month exceeding 740
• Gen Y spend more time emailing, texting and social networking online than talking on the phone, watching TV or reading magazines
• Interest in mobile marketing remains low among Gen Y, with only one in five now receiving targeted promotional messages and only 4% planning to do so in the future

For more information about the careerist report, please visit JDPower here, and for more information about the Generation Y and Social Networks study, please go here..

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, October 27, 2009

 

According to a new survey commissioned by 1020 Placecast and conducted by Harris Interactive, American consumers are receptive to opt-in mobile marketing messages from brick-and-mortar businesses. 42% of 18 to 34 year old cell phone owners and 33% of 35 to 44 year olds are at least somewhat interested in receiving alerts about sales on their cell phones from their favorite establishments.

Men are more interested than women:

• 51% of men ages 18 to 34, and 34% of women of the same age range who own cell phones, are at least somewhat interested in receiving opt-in shopping alerts on their cell phones.

Only 1% cell phone owners currently receive alerts about sales at their favorite establishments on their phones, yet 26% would be at least somewhat interested in receiving such alerts, assuming they were permission-based. Food, entertainment and consumer products top the list of categories 

Of those interested in receiving alerts, 53% would be at least somewhat interested in being notified about restaurant specials around them.In addition, about 2-in-5 of these adults would like to receive alerts about sales for:

• Movie/event tickets (43%)
• Weather information (39%)
• Clearance or liquidation sales (37%)

About another 3-in-10 of these adults would want to be alerted about:

• Pizza (31%) Clothes (30%)
• Fast food (27%)

About one quarter would want to be notified about:

• Electronics (25%)
• Music (24%)
• Happy hour specials or bar and night club offers (21%)

The survey found that about 9-in-10 U.S. adults have made an impulse purchase when they were out shopping in a store based on a sale or a special near where they were.

• 22% of adults owning cell phones make this type of impulse purchase at least once per week or more often
• Among women with cell phones ages 18 to 44, 27% report making at least one impulse purchase a week
• Among men 18 - 34, this number rises to 31%

Among cell phone owners in households with children under 18, 37% are at least somewhat interested in receiving opt-in alerts on their mobile phones. This number rises to 44% in households with children under age 6.

According to Kathryn Koegel of Primary Impact Research, "Many American consumers have their mobile devices with them all day long, including when they are shopping... reaching a receptive audience... presents a big opportunity to influence impulse purchases... "

For more information about 1020 Placecast and this study, please visit here. Or, to access the PDF file, please go to Placecast here.

For more information visit www.mediapost.com

NUMANTRA CLIENT MANEGAIT THERAPEUTIC HORSEMANSHIP BREAKS THROUGH ALL GOALS WITH 2009 GALA AT THE 'GAIT

Numantra, the Irving based marketing think-tank, is riding tall, celebrating a very successful second annual gala with their client, ManeGait Therapeutic Horsemanship. The 2009 Gala at the 'Gait was held on October 3, 2009 at the facility in McKinney, TX.

Founded by Bill and Priscilla Darling of Darling Homes, ManeGait is now in its second year of operations. Bill and Priscilla tapped the minds at Numantra from the very beginning to help build the overall brand, develop strategy, conceptualize their interactive presence, build the marketing materials library and develop fund-raising components, including the Gala at the 'Gait.

Last year's inaugural Gala set the stage and the theme. The Numantra team developed the name, designed the look of the Gala, Save-the-Date campaigns, invitations, continued communications, signage and scripted, developed and produced a video highlight for the event that had everyone reaching for tissue and ways to help. While the goal of 2008 was 225 attendees and $40K in revenue, when the books were closed ManeGait finished up with 372 attendees and over $104K in revenue.

While most companies are struggling this year and non-profit organizations have been hit particularly hard, ManeGait, its fundraising and the gala continues to grow. ManeGait's steering committee looked forward and to the hearts of the North Texas community and set some very high goals for The 2009 Gala at the 'Gait: 500 attendees and $200K in revenue. Again, the Numantra team took the creative reins, collaborated with the ManeGait committees and provided the necessary tools for maximum impact.

Anticipation was high, the weather was soggy and the books aren't yet fully closed as final payments for auction items come in, but success is assured. ManeGait oversold the Gala with 620 attendees and over $220K in revenue as of this writing.

Priscilla Darling says it best: "We are blessed."

"As is Numantra", Dave Evans, president said, "We are so proud to be a part of such an amazing organization and their success. It's difficult to put "feel-good accomplishments" into words, but for Numantra, our word is ManeGait."

Bob Garfield is freaking out.  Levis takes you searching.  And a foley artist works socks it to the veggies.  And so much more. 

MEDIAPOSTNEWS

ONLINE MEDIA DAILY

by Laurie Sullivan, Yesterday, 3:32 PM

Despite high unemployment and little opportunity for job growth, the advertising industry should brace for a wave of consolidation and initial public offerings (IPOs) heading into 2010, according to Linda Gridley, president and chief executive at Gridley & Co., a boutique investment bank in New York. Profitable companies garnering at least $200 million in annual revenue will begin filing IPOs, followed by increased consolidation and merger and acquisition activity that could start as soon as this quarter. Companies becoming acquisition targets will provide niche technologies, from search and Web analytics to ad optimization and mobile, to more established players. Although M&A will rise, don't expect valuation levels to reach those seen in 2007, according to Gridley. She believes valuations will come in higher than first believed, but as acquirers look for niche technologies the companies will become less sensitive to price tags. The industry heard a similar tune during Google's and Yahoo's recent third-quarter earnings calls with analysts and investors. Yahoo's Chief Financial Officer Timothy Morse told analysts the company is looking for "great technology" and "people" behind the technology, but declined to comment on acquisitions or divestitures in process. The company will continue to look at opportunities to enter new markets and strengthen its position in markets where it's weak. "The acquisition and divestiture group is constantly working within the business and evaluating external opportunities both in plus and negative," he says. Aside from announcing the search deal with Microsoft during the third quarter, Yahoo revealed acquisitions such as Maktoob and Xoopit that were aimed at expanding its positions in communities and content in new markets. Google has historically acquired about one small company per month, according to Eric Schmidt. The Mountain View, Calif. search engine's CEO told analysts last week these acquisitions have been small, inexpensive and technology-intensive. In search, Google has looked at small companies that invented an interesting vertical search technology, for example. In display advertising, the focus has been on companies that have figured out better ways to sort data and ads. As Google builds out its enterprise business, acquiring tools built by small companies that fit nicely into Chrome or Chrome OS makes more sense than attempting to reinvent the wheel. Small deals do not come under as much scrutiny by investors, Gridley says. Some big players pack hefty multiples. Not two to three times revenue, but between three and six times, she adds. Schmidt also told investors that Google is looking for larger businesses to buy, but in those cases the decision would be backed by "strategic rationale," "accelerant for revenue" or a customer base the company doesn't have. These types of acquisitions, similar to YouTube or DoubleClick, might occur every year or two, rather than monthly. The more tools a company has in its toolbox, the more services it can offer agencies and partners. Advertising optimization technologies that support ad exchanges by collecting data and target ads to consumers based on behavior have caught the attention of investors and acquiring companies. Eyes are turning to companies like BlueKai and MediaMath, as well as [x+1]. Although Stan Sandberg, managing director at Gridley & Co., could not quite put his finger on the exact amount, he says companies like BlueKai have raised a lot of financial capital in the past year. AudienceScience, for example, reported closing $20 million this week. Innovation and the ability to demonstrate growth will lead the charge for companies in the online ad industry, but Gridley warns to expect a "tale of two cities" that emphasizes a wider divide between struggling companies and good growth companies that plan to either go public or get acquired.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR EMDIA RESEARCH

 

Wednesday, October 21, 2009 

 

According to a new consumer trend report from TargetCast tcm, among American adults between the ages of 18-64, the future of traditional media, particularly newspapers, magazines and radio, is challenged by the rapid migration of hard-to-reach consumer groups to digital alternatives. However, when it comes to purchase influence on consumers, traditional media remains more influential when compared to digital advertising.

The study reveals a divide between men and women in how each gender engages with traditional media, and illustrates how a generational divide is affecting purchase influence among adults.

Peter Sedlarcik, SVP, Director of Insights and Analytics at TargetCast tcm, says "... marketers must take into account the evolving media preferences of specific target audiences... yet, while many may declare print media is dead... findings show that marketing messages in newspapers and magazines still score well in terms of consumer attentiveness and purchase influence."

Key findings: 

• Men and women are consuming media differently. Men are more likely than women to indicate that printed news is a less relevant source of news and information
• Newspapers and magazines are not considered as relevant today and are easiest to eliminate from usage, yet score well in terms of attentiveness and purchase influence
• The biggest usage declines were found among men and young adults 18-34 in newspapers, magazines and radio
• TV and Internet, respectively, identified as most important media, though young adults 18-34 rank the internet as more important than TV

60% of consumers say newspapers need to change the most to stay relevant, compared to 30% for magazines and nearly 20% for radio. Fewer than 10% feel that TV or the Internet needs to change to stay relevant. Nevertheless, those ages 35+ still consider newspaper ads to be more influential in determining their purchase decisions.

The majority of adults 18-64 report that they are still using the same amount of each medium today as they were a year ago, however nearly a third say they are using less printed media (newspapers and magazines). Conversely, a third or more also report that they are using the Internet more as both a source of information and entertainment.

Compared to a year ago would you say you are currently using the following media more, about the same or less? (Adults 18-64)
Media	Using More	About the Same	Less
TV	19%	68%	13%
Radio	12	71	18
Magazines	10	60	30
Newspapers	9	58	33
Internet (information)	42	54	4
Internet (entertainment)	28	59	13
Source: TargetCast tcm, October 2009

The data reveals a split between men and women in terms of the way each gender engages with traditional media and embraces newer media. In general, men are more willing to adapt their usage habits to incorporate more digital and online platforms as replacements for traditional media. On the other hand, women are more likely to hold strong with the traditional media and are more hesitant to embrace newer media.

The study also indicated that there is a marked generational difference in attention to digital media between adults ages 18-34 and adults and those older than age 35:

• Adults ages 18-34 are more likely to have replaced newspapers and magazines with internet content, while adults older than 25 are more likely to consider magazines and newspapers as valuable sources of information
• Adults ages 18-24 are more likely to say radio is not as relevant and that they prefer reading magazines online. This age group also indicates they don't mind watching ads when watching TV programs online
• Adults aged 18-34 are more likely than other consumer groups to consider advertising on the internet influential in their purchase decision

40% of Adults 18-64 say that they prefer the experience of reading printed newspapers over online news sources. Additionally, newspapers score well both in terms of ad attentiveness and purchase influence. However, when asked if they'd rather get news from online sources than from printed newspapers, the percentage of those who agreed vs. disagreed was about the same. And, people do not feel that newspapers are more trustworthy than online sources.

72% of consumers expect that sourcing the newspaper online should be free, and not willing to pay for an online newspaper subscription to replace their printed newspapers subscription.

A solid 57% say they prefer the experience of reading a printed magazine over reading a magazine on the Internet. An even stronger 71% would not be willing to pay for an online magazine subscription to replace their printed magazine subscription. Also, only 15% of respondents overall agree that they'd rather read magazines online. Additionally, printed magazines score well in terms of ad attentiveness and purchase influence.

41% of those surveyed indicate that radio is still relevant in today's media environment. According to respondents, radio provides a great venue to discover new music that cannot be experienced elsewhere. And, respondents overall prefer to listen to music through the radio station vs. Internet stations or on their mp3 player.

In summary, the report concludes that monitoring the pulse of consumer sentiment is a critical component of working toward a better understanding of the future of all media. Understanding the changing nature of how people now consume media may allow the media industry to reclaim the intimate relationship between the reader and their brands. The report notes that:

• Newspapers have a legacy of breaking news and uncovering stories of historic proportion, yet they are losing ground to a generation of consumers embracing digital and mobile alternatives
• Established magazines, often iconic brands, have begun to lose advertiser support after years of consistent readership and inspiring content
• Over the past 100 years radio has been a ubiquitous part of our daily lives. However, after surviving the challenges of broadcast TV, the emergence of cable and the launch of the Internet, radio is slowly being tuned out by a generation addicted to personal, programmable MP3 players, iPods, iPhones and other multi-media devices
• While many will continue to use traditional and new media as much as they have in the past, it is important to understand the shifting relationship between how men and women and different generations will consume media in the future so the industry can evolve these media in a way that is relevant and impactful to consumers

For more information about the study, please visit TargetCast here.

For more information visit www.mediapost.com

MEDIAPOSTNEWS

MEDIA DAILY NEWS

Survey: 42% Of Marketers To Increase DO Spend

by Erik Sass, Friday, October 16, 2009, 4:52 PM

Some 42% of agency and brand marketers plan to increase their spending on digital out-of-home video advertising, according to a survey by Adcentricity, which aggregates digital out-of-home video networks, positioning itself as an adjunct to media planning and buying. If their predictions hold true, this holds out hope for a return to strong growth for the new medium as the economy begins to recover. Adcentricity's new study, titled "2010 Digital Out-of-Home Outlook & Planning Guide," predicts that total DO spending will hit $2.6 billion in 2009 and over $4.5 billion in 2013, from a cumulative annual growth rate of about 15% from 2010-2013. According to the Adcentricity projections, that means DO will garner just over 44% of all out-of-home spending in 2013. This revenue growth will be driven by several factors, according to Adcentricity. In terms of infrastructure, 38% of DO network operators plan to invest between $1 million and $10 million in expanding or improving their networks, including content offerings, ad-serving and measurability. Twenty percent of those surveyed plan to expand their networks to include over 1,000 screens. Adcentricity also pointed to growing awareness of the medium's potential among advertisers. On this front, it noted that DO reaches 67% of Americans over the age of 18 on a monthly basis. Furthermore, the medium makes a big impression, partly because of its ability to reach consumers via multiple venues. Screens in retail venues -- like grocery stores and shopping malls -- reach 53% of Americans over the age of 18 on a monthly basis, while displays in gas stations and movie theaters reach over 20%. Among people who noticed DO displays, 76% recalled seeing them at more than one venue. Altogether, Adcentricity's tally of DO venue categories found over 70 discrete types of location -- each with unique characteristics attracting a certain kind of consumer and suitable for certain kinds of ad messaging.

For more information visit www.mediapost.com

A little something for your household servants to help them keep it together, plus some tips for those of us without household servants committed to frugality, and a little advice on saving trees.  You can learn a lot on Pizza Friday.

MediaPostNews

MARKETING DAILY

by Karl Greenberg, Yesterday, 3:04 PM

Six Ford vehicles are leading the industry in the number of owners who repurchase a Ford when they return to showrooms, per Experian Automotive data from the second quarter this year. The firm said Ford Fusion, Ford Edge and Ford Five Hundred owners showed the industry's highest brand loyalty -- returning to buy a Ford Motor Co. vehicle 62.4%, 57.9% and 56% of the time, respectively. The Ford Freestyle was fifth, the Ford Escape was seventh, and the Ford Focus came in ninth. Toyota Prius was in fourth place with 52% brand loyalty, while the Chevrolet Impala was sixth place, Toyota Camry came in at number eight and the Toyota Corolla finished in 10th place. Jeffrey Anderson, director of consulting and analytics, said in a Webinar on the study that Experian's loyalty data, based on new-vehicle registrations in the second quarter, reflect "garage loyalty" or the other vehicles a household owns at time of repurchase. Anderson said Experian also differentiates brand and corporate loyalty scores -- the former indicating when a Honda owner buys another Honda, and the latter if a Honda owner buys an Acura. GM's corporate loyalty dipped in the second quarter, but it still leads the industry in terms of corporate loyalty. Ford, Toyota, and Honda are mid-range, with Ford neck-and-neck with Toyota. "Hyundai has surpassed Chrysler in loyalty and is closing the gap with Honda," he said. "But the majority of manufacturers are retaining less than four of ten customers, and that really reflects the market and the choices consumers have." In terms of brand loyalty, Volvo, Audi and Acura showed the biggest increases -- with Volvo seeing a 40% increase in the second quarter, per Experian. "Interestingly enough, with all the GM turmoil, and news of GM canceling brands, loyalty to Pontiac actually increased," he said. The firm's data, which culls new-vehicle registrations nationwide, found that among 13 vehicles that have higher registrations now than a year ago, Ford Fusion was among the highest, and that about 10% of those were Hybrid Fusions. Chevrolet Traverse and Camaro are two new entries that have helped GM maintain market share, per Anderson, who said GM saw a slight market share gain in part because of Traverse and Camaro. In terms of market share, GM still is at the top in terms of share. Ford's success has led to Ford having higher market share than Toyota, while Honda has higher share than Chrysler and is neck-and-neck between Hyundai and Nissan, Anderson said. Subaru and Hyundai had the highest proportional market share gain among all marketers, with about a 40% bump. "The three big manufacturers losing share allowed the smaller ones to pick up steam in the market," he said. Subaru Legacy almost doubled sales. Ford Escape and Honda Pilot have had much success, and Ford F-150 had 30% gain in market share, as did Honda Odyssey, he said.

For more information visit www.mediapost.com

MediaPostNews

ONLINE MEDIA DAILY

Virtual Goods To Reach $1 Billion In 2009

by Mark Walsh, 1 hour ago

Virtual goods are turning into a real business. A new study estimates that the total U.S. market size for virtual goods will hit $1 billion this year -- twice the 2008 amount. The report by Justin Smith, editor of InsideFacebook.com and Charles Hudson of Serious Business, also projects that virtual goods sales will reach $1.6 billion in 2010. "One of the major forces that has led to growth in virtual goods this year is the explosion and seeming ubiquity of social networking in the U.S.," said Smith in an interview. Combine that with the popularity of gaming and marketing savvy and you have the perfect storm boosting demand for virtual goods. Virtual goods are typically offered in free Web applications or games to let users accessorize avatars or supply weapons or other items that will help players speed their progress through games. They're purchased directly by credit card, PayPal or other payment method or "earned" by accepting offers, like signing up for a trial subscription of Netflix or taking a brief research survey. In addition to the app and game developers that benefit from virtual goods sales, the second method alone has spawned some 15 companies in the last two years such as Offerpal Media and SuperRewards that are thriving as well. "It's almost like the ad network explosion of a few years ago," said Smith. Allowing these new types of businesses to flourish has been the expansion of social networks such as Facebook and MySpace, which provide the platforms for users to easily access the games and applications where virtual merchandise is sold. Facebook has gotten into the game itself with its own gift store selling things that like virtual flowers that can be purchased with Facebook "credits"-the company's virtual currency. Facebook has recently begun allowing third-party developers to sell virtual goods inside the gift shop and to accept Facebook credits ($1 buys 10 credits) as a payment method inside apps. Its virtual goods business is projected to make up about 10% of Facebook's estimated revenue of $500 million this year. Companies such as AdNectar are also launching branded virtual goods on Facebook, Twitter and LiveJournal on behalf of marketers such as Godiva Chocolates, ING, Gillette and Lionsgate. "A side angle is that some branded virtual goods are being sponsored inside of social networks and third-party apps by advertisers who now think of them as a more engaging ad unit," noted Smith. Besides social networks and apps, the report also indicated that virtual worlds such as Second Life and massively-multiplayer online games also continue to grow as meaningful parts of the virtual goods market.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Tuesday, October 13, 2009

 

The results of an update to the comScore highly publicized "Natural Born Clickers" research, conducted two years ago with Starcom USA and Tacoda, indicate that the number of people who click on display ads in a month has fallen from 32% of Internet users in July 2007 to only 16% in March 2009, with an even smaller core of people (representing 8% of the Internet user base) accounting for 85% of all clicks.

Presented by comScore chairman Gian Fulgoni and Kim McCarthy, manager, Research & Analytics at Starcom, at the iMedia Brand Summit in San Diego on September 14, 2009, the original research showed that 32% of Internet users clicked on at least one display ad during the month. These clickers were segmented into Heavy, Moderate and Light Clicking segments based on the group of users (heavy), middle 30% (moderate), and bottom 20% (light).

In 2007, comScore, Starcom and Tacoda found that Heavy clickers, representing 6% of U.S. Internet users, accounted for the top 50% of clicks, Moderate users, 10% of Internet users, accounted for 30% of the clicks, and Light clickers, 20% of users, accounted for 16% of the clicks. By March 2009, those numbers had dropped substantially:

• 4% of Internet users are Heavy clickers
• 4% of users are Moderate clickers
• 8% are Light clickers

Heavy, Moderate, and Light Display Ad Clicker Analysis (Total US Home, Work and University Locations)
	Share of All Internet Users		Share of All Click-Throughs
	July '07	March 09	July '07	March '09
Total clickers	32%	16%	100%	100%
Heavy clickers	6	4	50	67
Moderate clickers	10	4	30	18
Light clickers	16	8	20	15
Non clickers	68	84	0	0
Source: comScore, September 2009

Linda Anderson, comScore VP of marketing solutions and author of the study, concludes that "...  marketers who attempt to optimize their advertising campaigns solely around the click are assigning no value to the 84% of Internet users who don't click on an ad... "

The results underscore the notion that, for most display ad campaigns, the click-through is not the most appropriate metric for evaluating campaign performance. Rather, advertisers should consider evaluating campaigns based on their view-through impact, says the report.

Despite the precipitous decline in clicks, says the report,  comScore is advocating looking beyond the click because other comScore research has shown that online display ads generate significant lift in trademark search, online and offline sales, and brand-site visitation across all verticals, among those internet users who were exposed to the online ad campaigns - whether they clicked on the ad or not. These results, compiled in comScore's influential "Whither the Click?" white paper, were reported in the June 2009 issue of the Journal of Advertising Research.

Display Ad Lift (Site Reach Weeks 1-4 After First Exposure)
Vertical	Control	Test	% Lift
Average all	4.5%	6.6%	46%
Automotive	0.9	1.9	114
Finance	1.3	2.3	86
CPG & restaurant	0.6	1.1	77
Retail & apparel	9.1	13.8	52
Media & entertainment	7.0	10.0	42
Electronics & software	5.8	7.2	25
Travel	4.8	5.8	21
Source: comScore, June 2009

John Lowell, Starcom USA SVP/Director, Research & Analytics, notes that "a click earns no revenue and creates no brand equity...  online advertising (is) certainly not to generate clicks... (but) to visit website, seek more information, purchase a product, become a lead, keep brand top of mind... "

For additional information, please visit the SMV Group here.

For more information visit www.mediapost.com

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Monday, October 12, 2009

 

According to the results of a survey focused on consumer's 2009 holiday spending outlook by Burst Media, 62.8% of consumers plan to spend the same or cut back on their holiday purchases compared to 2008. Although consumers plan to hold tight with their spending this holiday season, 85.3% of respondents will shop online.

Only 14.6% of respondents expect to spend more this holiday season than they did in 2008, while 32.7% expect to spend less and 30.1% expect to spend about the same as they did last year. Interestingly, women will be more frugal than men this holiday season with 38.1% planning to spend less on gifts and entertainment, compared to 27.3% of all men.

All income segments will trim holiday spending this year, with:

• 29.5% of respondents reporting household income (HHI) of less than $35,000 cutting holiday spending,
• 46.3% of households reporting HHI of $35,000-$75,000
• 31.3% of households reporting HHI of $75,000 or more

The Internet has become a go-to holiday shopping resource. Despite the fact that 63% of consumers express concern over credit card security when making an online purchase, seven out of ten still plan to make an online holiday purchase on the Internet. Consumers will also use the Internet to "window shop". The most popular online window-shopping activities are comparing different retailers to find the best price (56.8%), and comparing the features of different brands (55.3%).

The Burst study also found that there does not seem to be a clear start to the holiday shopping season as only 13.6% respondents consider "Black Friday" (the day after Thanksgiving) to be the official kick-off.

Chuck Moran, Chief Marketing Officer for Burst Media, concludes  "...it is clear that the holiday shopping season for consumers has no definitive starting point... advertisers can start building awareness now... "

 

Please visit here for more about the study, and Burst Media.

For more information visit www.mediapost.com

Photoslimming, frugalistas and hot Brazilians are a few of this week's topics for Pizza Friday.

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Thursday, October 8, 2009

 

 

Subliminal images, images shown so briefly that the viewer does not consciously 'see' them, have long been the subject of controversy, particularly in the area of advertising.

According to a study led by Professor Nilli Lavie, UCL Institute of Cognitive Neuroscience, published in the journal Emotion, people are able to process emotional information from subliminal images, and demonstrates conclusively that even under such conditions, information of negative value is better detected than information of positive value.

In the study, Professor Lavie and colleagues showed fifty participants a series of words on a computer screen. Each word appeared on screen for only a fraction of second, at times only a fiftieth of a second, much too fast for the participants to consciously read the word.

The words were either positive (e.g. cheerful, flower and peace), negative (e.g. agony, despair and murder) or neutral (e.g. box, ear or kettle). After each word, participants were asked to choose whether the word was neutral or 'emotional' (i.e. positive or negative), and how confident they were of their decision.

The researchers found that the participants answered most accurately when responding to negative words, even when they believed they were merely guessing the answer.

Professor Lavie said: "There has been much speculation about whether people can process emotional information unconsciously... (the study shows) that people can perceive the emotional value of subliminal messages and... (demonstrates) conclusively that people are much more attuned to negative words.

 The professor says that there are evolutionary advantages to responding rapidly to emotional information. She says "We can't wait for our consciousness to kick in if we see someone running towards us with a knife or if we drive under (inclement weather conditions) and see a sign warning 'danger'."

Since "Negative words may have more of a rapid impact," she explained, the research might have implications in the use of subliminal marketing to convey messages for advertising as well as public service announcements for safety campaigns.

ProfessorLavie opines that "'Kill your speed' should be more noticeable than 'Slow down'. More controversially, highlighting a competitor's negative qualities may work on a subliminal level much more effectively than shouting about your own selling points."

For additional information about the UCL study, please go here.

For more information visit www.mediapost.com

 

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, October 7, 2009

 

According to a survey conducted by Crowd Science, with Twitter being accessed from mobile devices to a greater extent than other social media, Twitter users also use social media more in such locations as cars, restaurants and restrooms. 11% of Twitter users admitted to accessing social media while driving during the preceding 30 days, compared with just 5% of other social media users. And 29% of Twitter users said they had accessed social media from cars at some point in the past, compared with 13% of non-users.

John Martin, CEO of Crowd Science, notes that "Twitter is more of a mobile media phenomenon than other social networks, so these results, while a little disturbing, are... not so surprising...  the bottom line is that either type of activity takes a driver's attention away from the road."

The survey found that only 27% of Twitter users tweet daily, while 46% check updates daily. In addition, 24% of Twitters users have never tweeted, or have ceased doing so.

According to the survey, 40% of Twitter users access the service via mobile at least sometimes, compared with 32% for Facebook users, and 8% use mobile all the time vs. 3% for Facebook.

In addition to the greater usage while driving, the survey also found that over the past 30 days,

• Twice as many Twitter users as non-Twitter social media users (8% to 4%) had accessed any social media from a theater during a movie or live performance.
• 17% of Twitter users vs. 12% of non-Twitter social media users had accessed social media from a washroom or toilet
• Nearly three times as many Twitter users as other social media users have accessed social media from restaurants (31% vs. 12%).

Considering the attitudes of Twitter users, says the report, a significant number of social media users use the applications because friends and contacts do (17%), or because stopping or reducing its use would be damaging to their social status (15%.).

 32% of Twitter users feel they spend too much time using social media, 22% say they've written things on social media that they've later regretted, and 16% report that they often neglect important activities to spend time on social media. Yet 25% of Twitter users say social media is their favorite leisure activity, compared with 14% of non-Twitter social media users.

Additional survey results include:

• 41% of Twitter users prefer to contact friends via social media rather than telephone, compared with 25% of non-Twitter social media users,
• 11%, vs. only 6% of those not using Twitter, actually prefer social media over face-to-face contacts
• 14% of Twitter users said they have revealed things about themselves in social media that they wouldn't under any other circumstances
• 8% admitted to "frequently stretching" the truth about themselves online

Twitter users tend to be older than non-Twitter social media users (54% over 30 years old, vs. 42%),

• They are twice as likely to be self-employed or entrepreneurs (18% vs. 9%)
• 24% vs. 15% "buy gadgets/devices when they first come out,"
• 48% vs. 30% have created a website
• 37% currently maintain a blog, twice as many as non-Twitter social media users

The Crowd Science study was conducted across more than 600,000 visitors to multiple websites between August 5-13, 2009, targeting social media users age 12 and up.

For more information from Crowd Science, please visit here.

For more information visit www.mediapost.com

 

RESEARCHBRIEF

FROM THE CENTER FOR MEDIA RESEARCH

 

Wednesday, October 7, 2009

 

According to a survey conducted by Crowd Science, with Twitter being accessed from mobile devices to a greater extent than other social media, Twitter users also use social media more in such locations as cars, restaurants and restrooms. 11% of Twitter users admitted to accessing social media while driving during the preceding 30 days, compared with just 5% of other social media users. And 29% of Twitter users said they had accessed social media from cars at some point in the past, compared with 13% of non-users.

John Martin, CEO of Crowd Science, notes that "Twitter is more of a mobile media phenomenon than other social networks, so these results, while a little disturbing, are... not so surprising...  the bottom line is that either type of activity takes a driver's attention away from the road."

The survey found that only 27% of Twitter users tweet daily, while 46% check updates daily. In addition, 24% of Twitters users have never tweeted, or have ceased doing so.

According to the survey, 40% of Twitter users access the service via mobile at least sometimes, compared with 32% for Facebook users, and 8% use mobile all the time vs. 3% for Facebook.

In addition to the greater usage while driving, the survey also found that over the past 30 days,

• Twice as many Twitter users as non-Twitter social media users (8% to 4%) had accessed any social media from a theater during a movie or live performance.
• 17% of Twitter users vs. 12% of non-Twitter social media users had accessed social media from a washroom or toilet
• Nearly three times as many Twitter users as other social media users have accessed social media from restaurants (31% vs. 12%).

Considering the attitudes of Twitter users, says the report, a significant number of social media users use the applications because friends and contacts do (17%), or because stopping or reducing its use would be damaging to their social status (15%.).

 32% of Twitter users feel they spend too much time using social media, 22% say they've written things on social media that they've later regretted, and 16% report that they often neglect important activities to spend time on social media. Yet 25% of Twitter users say social media is their favorite leisure activity, compared with 14% of non-Twitter social media users.

Additional survey results include:

• 41% of Twitter users prefer to contact friends via social media rather than telephone, compared with 25% of non-Twitter social media users,
• 11%, vs. only 6% of those not using Twitter, actually prefer social media over face-to-face contacts
• 14% of Twitter users said they have revealed things about themselves in social media that they wouldn't under any other circumstances
• 8% admitted to "frequently stretching" the truth about themselves online

Twitter users tend to be older than non-Twitter social media users (54% over 30 years old, vs. 42%),

• They are twice as likely to be self-employed or entrepreneurs (18% vs. 9%)
• 24% vs. 15% "buy gadgets/devices when they first come out,"
• 48% vs. 30% have created a website
• 37% currently maintain a blog, twice as many as non-Twitter social media users

The Crowd Science study was conducted across more than 600,000 visitors to multiple websites between August 5-13, 2009, targeting social media users age 12 and up.

For more information from Crowd Science, please visit here.

For more information visit www.mediapost.com

MediaPostNews

ONLINE MEDIA DAILY

Revenue-Share Model Turns Consumers Into Marketers

by Laurie Sullivan, Friday, October 2, 2009, 6:53 PM

Peer2 has introduced a platform that pays members for spreading the word. The platform operates on the premise of peered marketing. Consumers become the marketers, and in exchange, earn points redeemable for merchandise. The company operates on a cost-per-click (CPC) revenue model, 25 cents per engagement. Impressions are free, according to Joey Caroni, co-founder of Peer2, an online "marketing-endorsed" platform that advertising firm Creative Asylum invested in. The business model relies on the theory that peer endorsements increase click-through rates. "We're not charging brands when someone posts content," Caroni says. "We only charge the brand when someone clicks on the content." When someone becomes a Peer2 member, they are assigned a URL to embed in blogs or any of the supported social network sites, from Facebook to LinkedIn to Twitter. Signing up and delivering the content -- from video games to personality quizzes -- via Peer2's platform earns the member points. The specific member URL identifies them. If someone takes a brand's link and embeds it on a blog, Peer2 can identify the blog site as well as the assigned person. Today, the brands participating include Ducati, Energie and Miss Sixty. The earned points are redeemed for gifts through a white-label catalog of items. Peer2 purchases the items from Amazon.com and has them shipped to the person participating in the program. The program -- which launched about one week ago -- has about 2,000 members, but Caroni believes that will grow into the millions quickly. "Each member generates about 10 engagements per week," Caroni says. "These are not impressions, but rather people clicking on the links that members post to interact with the content. On Facebook alone, people share something like 250 million pieces of content each day." Caroni will also rely on search engine optimization (SEO) to build its member list. Google's PageRank algorithm is based on credible inbound links to the site. If there are 100,000 members posting Miss Sixty links, that's 100,000 people posting inbound links to Peer2. Those inbound links, in theory, should shoot Peer2's ranking to the top of the page one search list. The same should work for the brands that participate in Peer2's programs. The challenge is getting people to embed the links and thinking about marketing, Caroni says. Forrester Research Principal Analyst Lisa Bradner believes Peer2 management understands the challenges related to reaching people in social networks. "Everyone says, 'Okay, I have fans on Facebook, but what should I do with them now?'" she says. "It's a way to empower fans to work for you, but Peer2 needs to realize social networks are not an advertising medium first and foremost. So, the way the company manages the service will become very important." Peer2 will have to walk a fine line to figure out how to take advantage of exposure in social networks without blowing the system, Bradner says. "That's the challenge -- whether it comes from a brand or a friend, inauthentic, or coming to you from every person in your social network 24/7 -- because at some point people will say, 'Enough! Go away,'" she says. "It's potentially interesting, but has to be very well managed." Caroni points to the power of consumers who influence the premature closure of a theatrical movie by tweeting negative comments on Twitter. Katty Lein, analyst at Customer Insight, calls it the "Twitter Effect," saying Hollywood blames the site for the "severe drops in box office revenues in recent movies such as Sacha Baron Cohen's 'Bruno.'" The theory asserts that instant mini-reviews on opening night can make or break a movie's gross as early as the day after, according to Lein's post at Digital Connections.

For more information visit www.mediapost.com

The best job in the world, the best t-shirt ever, and frugalistas gone wild! It must be Pizza Friday.

MediaPostNews

ONLINE MEDIA DAILY

Google Wave Golden Tickets Ride On eBay

by Laurie Sullivan, Yesterday, 3:17 PM

Google delivered more than 100,000 invitations Wednesday to people so they could begin testing Wave, but some of those invites found their way to the auction site eBay. Wave, a communication and collaboration tool announced earlier this year, integrates e-mail, social networking, instant messaging, and real-time editing. Unlike the golden ticket that Charlie found in the Wonka candy bar wrapper that gave him entrance into the chocolate factory, these invites were emailed to Web developers who have been active in the developer preview cycle since June. The people signed up early and gave feedback on the project. Those who received invitations could nominate up to five friends who also received invitations. By 11 a.m. PDT, three invitations were found on the auction site. One auctioneer -- imarket, who started the bid at $150 -- writes, "the winning bidder will have to give me a little description of his/hers intentions with Google Wave. I will not deliver the invite for people with intentions of spam, illegal activities and porn." The tickets are being sold regardless of Google's rules. According to the Google Wave Program Policies, it's against the rules to generate or facilitate unsolicited commercial messages, such as spam. Prohibited actions also mean selling, trading, reselling or otherwise exploiting the service for any unauthorized commercial purpose. So, selling the tickets on eBay could teeter on a violation. Sellers appear to turn a blind eye to the rules. The bidding for the invites went from $10 to $243.50 by noon PDT on 35 bids. The Boston, Mass. eBay seller has been fielding questions on his eBay account continually. In an email response, he acknowledges the "one invite and it is being sold." Lars Rasmussen, software engineering manager who codeveloped Google Wave in Australia, explains in a blog post that conversation and document comprise "a wave." The tool lets you create a wave and add people. Everyone on the wave can use richly formatted text, photos, gadgets, and feeds from other sources across the Web. They can insert a reply or edit the wave directly. "It's concurrent rich-text editing, where you see on your screen nearly instantly what your fellow collaborators are typing in your wave," Rasmussen writes, which means people can use the tool to instant-message or send an email. Google did not return requests for a response by the time this story posted.

For more information visit www.mediapost.com