News U Can Use – June

These news items are brought to you by Kuk & Baldwin:

CLEANING SERVICES.    Besides great cleaning results, businesses (and homeowners, too) that hire a commercial cleaning service need to have a high degree of confidence in the firm’s reliability and integrity.   As a minimum, evidence of reliability should include the fact that the service is bonded and insured, in case of liability or theft – and where a contract is involved, the service should offer a 30 or 60 day trial period.   According to BuyerZone.com, the
average cost to clean a small office (under 2500 square feet) is $34, while for
10,000 square feet or more, the average is $103 per visit (Inc. Magazine,
6/11).

GERIATRIC CARE.    It’s a burgeoning industry, but with rising costs.   For example, the average annual cost for maintaining an aging parent in an assisted living facility is now $38,000 – and for a nursing home, it’s $67,500.   But surveys show that seniors fear nursing homes more than death.   So the emphasis is now on home care, and several new specialties have sprung up – e.g., certified geriatric care managers, who find affordable or free assistance programs ($80 to $160 an hour); certified aging-in-place contractors, who specialize in home modifications that accommodate seniors; and certified driver-rehab specialists, who have passed courses on elder driver training and safety (Money, 6/11).

SERVICE IS THE KEY.     In a recent phone survey, 22% of consumers said they stopped doing business with a company in 2010 due to poor customer service.   In the same vein, a recent Federal Trade Commission survey found that
70% of US adults are willing to spend more for products and services
offered by businesses with superior customer service.  Indeed, there’s no doubt that in a tight economy with heavy competition, businesses need to offer and give great service – and advertise it aggressively (Research Alert, 5/20/11).

Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com

Other recent media/advertising news:

 U.S. Advertising to Increase 4.4% in Q1

Kantar Media is projecting that total U.S. advertising expenditures will increased to $32.5 billion in the first quarter, a gain of 4.4% over the year-earlier period. That figure represents the lowest growth rate over the past year, but does follow five consecutive quarters of growth. (Link)

ZenithOptimedia Also Scales Back Global Ad Forecast

Following Kantar Media’s predictions, ZenithOptimedia scaled back its prediction for global ad spending for 2011 from a 4.6% increase over 2010 to a 4.2% increase.  The company cited rising energy prices, the Japanese earthquake/tsunami, and political upheaval worldwide for the
change.  U.S. ad spending is pegged to rise only 2.5% to a total of 0$155.2 billion this year. (Link)

TV Ad Spending Estimates Are Optimistic

Two recent items appeared regarding TV ad spending. First, Moody’s Investors
Service believes that political ad spending on TV will reach nearly $3 billion
next year, especially if both presidential candidates choose to forgo federal
funding and its limits. This forecast would be up from $2.3 billion in 2010.  (Link)

Second, a MagnaGlobal forecast predicts that TV’s share of total U.S. ad spending will grow to 38% by 2016.   Of course online ad spending is also expected to grow, reaching a 22% share of total spending, hitting $47.4 billion. The growth in TV and online is coming at the expense of traditional print media — newspapers and magazines, which are steadily losing share.  (Link)

Be Sure Advertisers Know Who They Are Selling To

While most of the marketing news you read would have you think that young males 18-25 are the only group that marketing pros want to target, Stephanie Pappas of BBDO in a New York Times article indicated that the TV industry is taking a new look at audiences over 55, aiming shows where the disposable income is.  “In some ways, they are the ideal consumer.  They have money, they consume loads of media and they remain optimistic.”   Are Yellow Page publishers noticing this also??  (Link)

The other group also being looked at more carefully is women.  Why?  Susan Fabry writing for FastCoDesgin.com indicated that women control 80% of spending in the U.S., and businesses that don’t effectively market to women are “leaving millions of dollars … on the table.”   Fabry offers tips on how to “make this consumer feel understood.” Marketers should acknowledge women, join their circle (especially on the Internet), understand their similarities, respect
their differences and be prepared to grow with them.  (Link)

For that same demographic, according to a survey by Savings.com, more than 60% of Americans have made a purchase from a “daily deal” e-mail, and 35% say they make at least one such purchase monthly, Deals to women lead in actual purchases by about 10 percentage points more than men.  College graduates and high-income households are much more likely to redeem deals than those with less education or lower income. (Link)

Local Radio Seeing Uptick in Ad Sales

Ad revenues at local radio stations will increase 3.7% this year for a total of $15.1 billion, according to recent BIA/Kelsey forecasts. That follows a 5.4% increase driven by political ads in 2010. The firm expects local ad sales, including online ads, to hit $18 billion by 2015.  (Link)

Opt-Out comes to Online Ads

Addressing mounting concerns in Washington over consumer privacy online, Google and Yahoo!  are introducing ad icons that link to tools that allow users to opt out of tracking. And TRUSTe and DoubleVerify are launching similar services that first link to an ad information site. (Link)

Online Continues On Growth Curve

According to PricewaterhouseCoopers LLP, Spending on U.S. Internet ads rose 15% to $26 billion last year, outpacing traditional media and surpassing newspaper ad revenue for the first time.  (Link)

Then IAB and PricewaterhouseCoopers reported that the U.S. online
ad industry enjoyed its best first quarter ever, notching sales of $7.3
billion, a 23% jump over the same period in 2010,. “The consistent and
considerable year-over-year growth we’re seeing demonstrates that digital media
is an increasingly popular destination for ad dollars, and for good
reason,” said IAB chief executive Randall Rothenberg.  (Link)

 

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