From England:
Print, online, or mobile — it’s still the most trusted source to find information fast….
Posted in News U Can Use
Tagged find it fast, most trusted information source, Yellow Pages, yptalk
In another classic case of how directory publishers in telephone companies can shoot themselves in the foot (and several other very painful places), Frontier Communications petitioned the West Virginia Public Service Commission (PSC) for permission to stop providing printed directories to its customers or, in the alternative, provide phone books only to customers who request them (can you say “opt-in”).
For those not aware of it, by PSC requirements, most Telco’s have to publish a directory every year. In it’s deep wisdom Frontier argued that “…printed phone books are “antiquated” because of the availability of directories on the Internet…” – and we all know that if it’s on the internet, everything else be damned.
Well, not so fast sparky — The Pocahontas County Commission considered the issue during its meeting on October 15 and quickly concurred that Pocahontas County residents need a printed phone book. The Commission agreed to send a letter to the PSC, stating its opposition to the phone company’s proposal. Commission President David Fleming offered to draft the letter.
“I can draft that letter, if you’d like,” Fleming said. “What I would say, basically, is that the County Commission is adamantly opposed to Frontier’s petition to request ceasing of the printing of the phone book. I’ll say language, to the effect, Pocahontas Countians rely on the phone books. As a rural county, a significant percentage of our population doesn’t even have a computer. Moreover, we have relatively unreliable Internet service. Therefore we request that Frontier’s petition be denied.”
Remember we aren’t talking about NY city or LA, or some other cement suburban area, we are talking about rural America where people like to shop locally and not online. They want to know who they are doing business with. Frontier obviously doesn’t get that, or more factually has no clue how to run a highly profitable advertising sales organization in a rural market. Clearly no one from corporate wants to go live in a God forsaken place like this and manage Yellow Page sales. Not when they can sit behind a desk in some glass tower in a more attractive city and play on their computers all day.
As a former manager once schooled me on “…you can’t help stupid…”. Add another Telco publisher to that list.
If these books are “antiquated” how come I got 3 calls today from people that are upset their phone listing was left our of the directory, or the 4 people who wanted more copies of the book?????
These news items are brought to you by Kuk & Baldwin:
ROI PLUS ROC. You’re more than familiar with ROI, but what’s ROC? ROC is Return of Customer, or repeat business. Restaurants thrive on repeat business, as do garden shops, building stores, and office supply stores. Some businesses need a relative balance of new and repeat – like handyman services, plumbing contractors, and major appliance stores. For other businesses such as siding contractors, used car dealers, and boat dealers, success depends mainly on a steady flow of new customers. Attracting new customers is what YP does best, but even for advertisers who rely mostly on ROC, you can stress annual churn factors like people moving, switching suppliers, etc. (Restaurant News, 2/11/13).
THE SWEET SPOT AND OTHER AUTO NEWS. The “sweet spot” in aftermarket parlance is the coveted market segment defined as vehicles between 6 and 12 years old, the age range that consumes the most repairs, replacement parts, tires, etc. But the number of vehicles in that sweet spot is declining as new car sales pick up (15.4 million forecast for 2013) – so aftermarket vendors may want to pursue a proactive preventive maintenance marketing theme (Wall St. Journal, 3/4/13)….Higher new car sales plus the surge of total loss vehicles (including from major storms) will result in a spike in value of salvage vehicles, thereby driving down the prices of recycled auto parts (SearchAutoParts.com, 3/4/13).
LOCKSMITH PRICES. A 2012 price survey of basic locksmith services came up with the following averages (mostly close to 2011): service call, $68; hourly rate, $50; auto opening call, $60; fit standard auto ignition key in shop, $50; fit auto transponder key in shop, $93; fit auto sidewinder key in shop, $120; fit motorcycle key, $87; cylinder key-in-knob, $15; make US or foreign single/double cut keys by code, $15-$20; make foreign sidewinder key by code, $68; duplicate US or foreign single/double cut keys, $4-$6; duplicate hi-security key, $17; and first-key fitting, $34. Such data can justify these services in a YP ad – even for specialists in hi-tech systems like electronic access and security (Locksmith Ledger, 2/13).
Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.
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Have you seen these recent media and advertising news stories:
Google Says Mobile advertising will soon be “mandatory”
Even if they don’t want it, make them buy — Google will soon begin requiring that all AdWords clients buy mobile advertising space, even if they only want to reach desktop-computer users (sounds fair). Industry executives believe the “enhanced campaigns” will be rolled out to all AdWords users by mid-2013 and is expected to drive up the overall price for mobile ad units. As the article noted, WordStream Inc., a firm that helps people advertise on search engines, estimated that less than 4% of small and medium-sized advertisers had set up mobile-ad campaigns “because it was such a hassle.” (Source)
Fox is already pitching the next Super Bowl to advertisers
Let the haggling begin — no sooner has this year’s Super Bowl passed into memory than Fox, which has the broadcast rights for the next Super Bowl, has already begun approaching advertisers about next year’s event, noting in particular the media advantages of its first time New York location for the game. As part of the pitch, Fox is also touting its NASCAR broadcasts and planned national sports channel. (Source)
The Internet is wonderful thing, when you can get to it…
Research firm Parks Associates recently announced that 78% of U.S. broadband households had a home network router in 2012, up from 54% in 2009, with expected adoption to reach 95% by 2016. Consumer demand for connected and mobile devices is fueling adoption of home network devices, which creates new and complex support demands on the connected home.
“Tablets, game consoles and smartphones have been incredibly popular, but the influx of connected devices adds new layers of complexity to the connected home,” said Patrice Samuels, Research Analyst, Parks Associates. “Approximately 35% of broadband households experience home networking problems when trying to sync devices and enable functions.”
As a result Parks Associates research found that 68% of U.S. broadband households are interested in new technical support services. Over 70% of these consumers would expect this service to address all of their technical problems, highlighting the importance of a comprehensive support solution that covers all of the devices and services on the home network. (Source)
2012 Ad Spending: Political & Olympic ads Boost Overall Ad Spending
Nielsen says that last year’s Olympic Games and a very active U.S. election season in the third quarter (where spending rose 7% from a year before) helped boost 2012’s overall ad spend 2%. In the fourth quarter, a strong 1% gain in auto advertising helped keep that sector as the top spender for the year. Notable big spenders in other categories: Phone and wireless ad spending rose 28% in the final quarter. (Source)
Mobile’s Share of Marketing Budgets Rising
Mobile advertising continues to be the hot topic among marketers as Gartner says companies are now spending an average of 25% of their marketing budgets on mobile platforms. The study also notes that digital is increasingly being integrated with all other types of marketing. Meanwhile, the growth in mobile’s budget share is expected to continue “as second-screen TV, social TV and QR codes integrate with traditional channels,” the report says. (Source)
But….Only 29% Of Consumers Regularly Use Mobile Devices To Find Local Businesses
Yes, mobile is growing fast. But hold on a second Sparky – according to new study from BrightLocal, while mobile Internet usage is growing very fast, only 29% of consumers regularly use their phones/tablets to find local businesses. This compares to just 15% of consumers who use desktop Internet to find a local business. Heavier, repeat users represent about 19% of consumers and they do look for a local business at least once per week. 29% of them search local at least once per month. (Source)
Agencies see digital overtaking print, broadcast spending
A new Strata survey says that nearly a third of ad agencies expect to spend more on digital campaigns than on conventional media within the next three years. “New advertising mediums are evolving at an unprecedented pace, and agencies are constantly trying to figure out how to get the best return on investment for their campaigns,” said Strata President and CEO John Shelton. (Source)
Posted in News U Can Use
Tagged BrightLocal, Fox TV, Kuk Baldwin & Associates, mobile marketing, nielsen, Parks Associates, s, Strata, Superbowl advertising
These news items are brought to you by Kuk & Baldwin:
THE COOLNESS FACTOR. It used to be that high school photos would be taken by a photographer who would set up in the gym one day and snap away as class members filed in one by one. Typically, the price for a complete “package” would top out at $60 or $70. But that’s no longer cool. More and more moms are now making private appointments with the local hip photographer to have model-like photos of their teenagers, and they’re willing to pay the price – for example, in Austin, Texas, $699 for the basic pose and $1199 for the complete package. The key, according to one parent, is about making the portrait show some individuality, with professional light and shadow, etc. (USA Today, 11/12/12).
GOT MOLD? Nationwide, mold-Inspection laws are in a state of flux – e.g., Arkansas and Virginia both passed mold-inspection laws and then repealed them; and only Florida and Texas have licensing laws for mold inspectors. But household mold poses a health threat everywhere, and mortgage lenders frequently require a mold inspection. That’s why CIE certification (certified indoor environmentalist) is a key credential for many contractors. The author of the source article achieved CIE certification, enabling him to command $300 to $600 per inspection – and he noted his “yellow-page ads were very effective, accounting for about 75% of my sales for the first two years” (Journal of Light Construction, 11/12).
LAWYER STATS. In 2011, over 44,000 US law students graduated from ABA-accredited law schools, and nine months later only about half had found jobs in the legal field. Indeed, in 2010 the US Bureau of Labor Statistics had forecast some 74,000 new lawyer jobs from 2010 to 2020 – but only three years into that decade, some 133,000 new lawyers have hit the job market, and by 2020 there will be 300,000 additional grads. As we’ve said before in this publication, a great many of these new lawyers will be forced to hang out their own shingle, some out of home offices – and if you can identify them, you need to let them know how important it is for them to be well represented in the YP (Wall St. Journal, 11/9/12).
Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.
Recent media/advertising news of note:
What the “fiscal cliff” deal really means for small-business owners
After weeks of speculation and on/off discussions, Congress finally got a deal done. Now most small-business owners are expecting to see their taxes to rise. “The fiscal cliff deal will make me spend more time working in the business rather than on the business,” commented Bill Westrom, who owns a financial-consulting firm with just five employees. (Source). The topic is covered in YP Talk in part one of our two-part series about what 2013 holds for SMB’s (Link).
Super Bowl ad slots almost sold out
But then again times can’t really be that bad can they? USA Today is reporting that CBS, which will air this year’s Super Bowl game has just two 30-second Super Bowl ad slots left to sell (and they are probably taken by now) at their record rates of at least $3.8 million for a 30-second slot. Viewers should look for new advertisers, more social media tie-ins, and longer ads at this upcoming 2013 Super Bowl. <Source>
Internet Advertising Revenues Hit Historic High in Q3 2012
Even in a weak economy, advertisers are pointing more of their advertising dollars towards the Internet. According to the latest IAB Internet Advertising Revenue Report figures released by IAB and PwC US, Internet advertising revenues in the U.S. reached $9.26 billion for the third quarter of 2012, making it the largest quarter on record with an 18% increase year-over-year, in comparison to Q3 2011’s $7.8 billion. In addition, they mark a 6% increase over the Q2 2012 figures of $8.72 billion. <Source>
Billboards doing well in Time Square in New York
Never mind that the One Times Square building which hosts the annual New Year’s Eve ball drop has almost no tenants, it still earns more than $23 million a year in ad revenue. How? Companies like Dunkin’ Donuts, Anheuser-Busch InBev, Sony and News Corp. are among the brands that spend millions each year digital billboard advertising to reach people milling around in Times Square. Even during non-New Year’s days, it’s a very busy place with lots of potential eyeballs. With digital boards, some of big dollar success comes from being able to change and turnaround new messages faster and with lots of moving graphics. (Source)
Mobile-ad spending continues to grow
There has been no shortage of reports of significant increases in mobile-ads. According to an eMarketer analysis, the U.S. leads the way with search and display spending up 220% in 2012. Globally, mobile-ad spending reached $8.41 billion, compared with slightly more than $4 billion in 2011. (Source)
ZenithOptimedia has also estimated that traditional media ad spending will be flat in 2013, mobile is still likely to see strong growth. Factors working in mobile’s favor are its low cost and high levels of consumer engagement, both of which are appealing to advertisers with tight budgets. (Source)
The increasing expenditures in mobile are also being channeled towards social media mobile sites. For example, some brands are now putting 20% of their Facebook ad spending into mobile campaigns, up from 14% in October, according to a Kenshoo study.. (Source)
A Tablet Christmas Day
What did you get for Christmas? Chances are it was a new tablet. On Christmas Day there were 17.4 million tablet device activations, more than doubling the number of devices from a year before, according to mobile ad/analytics firm Flurry. Tablets also saw more activations than smartphones this year, the firm reports. In other measures, non-Apple tablets gained in popularity on the iPad, and while Christmas Day saw a record number of application downloads. How many yellow page apps do you think were downloaded?? (Source)
Still haven’t picked out your tablet? Looking for something to bridge the gap between laptop and smartphone? Here is a review of ten top-rated tablets. (Source)
Twitter Growing in Scope and Usage
Twitter has become the hot social media these days and there has been no shortage of news. First, if you are little behind about this new media, you can start with a list of “Golden Tweets” that generated the greatest number of “retweets” in 2012. At the top of the heap was President Barack Obama’s “Four more years” tweet, celebrating his victory in the U.S. election. Other much-shared tweets included Justin Bieber’s tribute to a deceased fan; the U.K. Olympic team celebrating its successes; and a Japanese voice actor announcing his engagement to a fellow star. (Source)
Did you also know that over three-quarters of world leaders now use Twitter? That is an increase of 78% from 2011, according to a Digital Policy Council report. President Barack Obama remains the social network’s top political leader, with 24.6 million followers, followed by Venezuela’s Hugo Chávez, who has 3.8 million followers. Of course, it’s not really Barack banging away on the keys, but I think you get the concept – Twittering isn’t just for the common folks looking for their 15 milliseconds of fame. (Source)
However, sometimes those tweets can get in you trouble. Take Dallas Mavericks owner Mark Cuban. He was recently fined $50,000 by the NBA after posting a tweet criticizing the league’s referees. Cuban’s tweet, posted after the Mavs were defeated by the New Orleans Hornets, said he has “failed miserably” at getting the league to fix referee-related issues (Source)
Digital revenues still not there for traditional publishers yet
While all of this twittering, mobile advertising, and social media growth is going on, “traditional publishers” (talking creative media here, not yellow pages) still aren’t offsetting losses from declining print and broadcast advertising with digital advertising. Web ads are accounting for just a small percent of radio and newspaper groups’ total revenues. Publishers still believe digital has plenty of promise, “but as 2012 draws to an end, it’s clear that this promise is still more theoretical than real,” writes Erik Sass. (Source)
These news items are brought to you by Kuk & Baldwin:
MOVING IN. According to research commissioned by the US Postal Service, some 30 million US households change residences every year – and for their new digs, they can be counted on to make a variety of purchases within the first few months. In general, new homeowners spend over $9000 within the first six months and renters spend nearly $4000. For example, 60% of homeowners and 40% of renters buy furniture; 35% of new movers purchase bedding; 33% of new homeowners buy lawn equipment, tools, and hardware; and 15% buy computers, home security devices, and autos. Overall, new movers establish an average of 71 new business relationships in the first few months (Deliver Magazine, 5/12).
REAL ESTATE. A trend in the tough real estate market opens up business potential for various service providers. Basically, the advice now offered to sellers by many real estate brokers is to invest (up to 3% of the list price) in “staging” the property. Staging can mean anything from making repairs or upgrades, to hiring a landscaper, to bringing in a pro stager to rearrange the décor. It can also include hiring a home inspector to do a “pre-inspection” ($300-$400) that identifies any issues that could mess up a deal – as well as a pest controller (also $300-$400) to inspect for termites and other pests that could cause a bank to deny financing. “Pre-inspections” can be a key advertising copy point (Kiplinger’s, 6/12).
WEDDING BREAKDOWN. Even with an 11% drop from the pre-recession high, the average US formal wedding still cost families a whopping $25,600 in 2011 – and a total of $54 billion was spent. So where does the money go? About 41% goes for the reception; 30% is for “other,” which may reflect in part the fact that many weddings now take place in exotic or offbeat locations; 13% is spent on a photographer and/or videographer; 6% on rings; 5% on a wedding dress; and 5% on flowers and decorations. Localizing the market value and converting the % shares to dollars can help you sell (Smart Money, 6/12)
Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.
Other recent media/advertising news:
Following a weak 2011, U.S. saw ad spending growth in Q1
According to market research firm Kantar, first-quarter U.S. ad spending rose 2.6% to $32.9 billion. Kantar Chief Research Officer Jon Swallen said that after a slow January the pace of spending increased significantly. For the second quarter, Swallen predicts “modest growth with improvement trickling down to media that have been lagging the overall advertising market.” (Source)
Print is still viable with unique advantages over digital
How’s this for a change — although many companies are devoting more of their ad budgets to digital, print media (in this case newspapers and magazines, but one could certainly add Yellow Pages) retains some key and unique advantages, according to this commentary. Among them are permanence, credibility and deeper reader engagement (88% of those who do use print Yellow Pages will make a purchase). To bridge the gap with digital, the article suggests things like QR codes can be incorporated in print campaigns. (Source)
BIA/Kelsey’s ‘SMB Digital Marketing 2012’ Conference Coming Up Soon
Once again, the BIA/Kelsey group is gathering top digital media and marketing leaders at SMB Digital Marketing 2012, Sept. 17-19 in Chicago, to examine the latest business models, technological developments and adoption trends in digital marketing solutions for small businesses. The speaker lineup is a blend of leading innovators in traditional SMB marketing and entrepreneurs who have taken the space by storm.
Keynote speakers for the event include Gail Goodman, CEO of the leading email and engagement marketing platform for small business, Constant Contact; Patrick Barry, CMO of Demandforce, recently acquired by Intuit; Alfred Mockett, CEO of leading directional media company Dex One; and Nathan Hanks, president of ReachLocal, a top provider of local online marketing solutions to SMBs.
“With some 20 million small businesses in the U.S. alone, SMBs represent the biggest opportunity for the next generation of digital marketing solutions,” said Conference Cochair Charles Laughlin, senior VP and program director, BIA/Kelsey. “At SMB Digital Marketing 2012, we’ll showcase the leading edge of innovation in this space and examine how solutions providers and small businesses are leveraging the latest trends.”
Recent additions to the speaker lineup include Logan LaHive, founder and CEO Belly; David Kerr, GM, eCommerce, Angie’s List; Gordon Henry, VP and GM, SMBs, Deluxe Corp.; Pamela Springer, CEO, Manta; Dick Larkin, executive VP, American Marketing & Publishing; Shawn Riegsecker, founder and CEO, Centro; Mary Beth Brendza, CEO, App Express; Marc Caltabiano, senior VP, marketing and products, Cartera Commerce; Darnell Holloway, manager, local business outreach, Yelp; and John Pletz, senior reporter, Crain’s Chicago Business.
The conference program will cover key aspects of digital marketing, including mobile, social and deals, and will examine what’s working for sales teams, agencies and resellers. Sessions include:
Conference details, including speaker and agenda updates, sponsorship information, venue information and online registration, are available at www.biakelsey.com/SMBDigital.
Hearst Magazines to launch a private ad marketplace
Hearst Magazines is preparing to launch a private ad exchange for its digital unit, “Hearst Digital Media”, including ads on mobile sites for publications such as Seventeen, Elle and Good Housekeeping. The exchange won’t change Hearst’s relationship with the display and video networks currently selling Hearst’s surplus inventory, but will instead seek to provide automated programmatic audience-targeting services to upfront ad buyers. “We definitely recognize the growing need for efficiency,” says Chief Revenue Officer Kristine Welker. (Source)
Juniper: App-based ad spending to reach $7 billion by 2015
Advertisers will spend $2.4 billion on in-application advertising this year, according to a Juniper Research study. That figure will balloon to $7.1 billion by 2015, Juniper’s analysts predict, thanks to a global boom in mobile-device and mobile-app usage. “Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising,” says Juniper’s Charlotte Miller. (Source)
Twitter: Expands ad offerings, expects $1 billion in ad rev by 2014
Twitter is expanding its advertising program to 50 more countries to improve global revenue and lessen the company’s dependence on the U.S. market, according to CEO Dick Costolo, who recently spoke at the Cannes Lions festival. Sources said the company is expected to draw $1 billion in ad revenue by 2014. (Source)
How digital agencies are riding the online ad boom
Ad agencies are ongoing as much change as publishers are in this industry. Boutique digital agencies such as Blitz, Ignited and Omelet are making big bucks as major brands seek to ramp up their online marketing. Omelet should make more than $60 million this year, triple its 2011 revenues, serving clients such as AT&T, Harley-Davidson and Microsoft, while Ignited has built a $140 million business by focusing on display-ad services. “The dollars are clearly shifting this way,” says Eric Johnson, Ignited’s founder. “There has been a fundamental shift in behavior that is shaking the underpinnings of the whole media and marketing industry.” (Source)
How much of your TV advertising is wasted? A lot….
A new Pew Internet and American Life study finds that half of all cell phone users are using their cell phones while watching television. Nearly 40% of those use their phones to entertain themselves during commercial breaks, including by reading e-books.
“Clearly a number of those people who say they use their phones to keep themselves occupied while watching TV are reading books, news articles or other long form content,” said Aaron Smith, a senior research specialist at Pew and co-author of the report, adding that Pew didn’t have space in the survey to ask specifically about e-books.
Smith’s assertion is based on the findings of an earlier Pew report that showed more people were using their smartphones as e-reading devices.
According to the study, smartphone users, who would be the only group of cell phone users able to read e-books on their phones, are much more likely to use their phones during television watching. Nearly three-quarters of smartphone users incorporate their phone into their television watching compared with just a quarter of regular cell phone users. (Source)
These news items are brought to you by Kuk, Baldwin & Associates:
AN EYE FOR VALUE. About two-thirds of US adults need glasses or contact lenses, and those who have bought glasses or contacts recently know that the cost can be eye popping. That’s why a lot of buyers, especially with no eye care insurance coverage, are turning to online eyeglass and/or contact lens sellers. Indeed, the dollar savings can be significant – for example the median online price for single lens eyeglasses is $47, compared to $139 from a brick-and-mortar optician, and for progressive lenses the median prices are $91 versus $284. On the other hand, a survey of online eyeglass purchasers found that 22% of the ordered items never arrived, and 45% of glasses delivered had problems (Money, 5/12).
ROOFING COPY. Roofers typically don’t have frequent buyers – and as the source article points out, it’s hard to imagine a less enjoyable way to spend $7000 to $15,000+ than putting on a new roof. Complete tear-offs will add another $2000-$3000 to the job cost. That’s why consumers are careful in their choice of roofers, and many use the YP to find a short list of likely contractors. Four things consumers are advised to look for in a roofer are: (1) willingness to get all permits; (2) protect decks, patios, shrubs, etc. with tarps, plywood, etc. ; (3) clean up the job site every night; and (4) correct any venting problems with the existing roof. A strong YP ad should cover these points, among others (Money, 5/12).
GUNS AND GUNSMITHS. It’s a YP heading that’s beginning to surge, probably reflecting events on the political landscape. Specifically, the US gun market was worth $19 billion in 2008, but in 2011 sales shot up to $31 billion, a 63% increase. Another telling measure is that jobs in the firearms industry jumped 30% between 2008 and 2011, while so many other industries were losing jobs. Also significant is the fact that over 25% of gun purchasers were first-time buyers, thereby placing a high premium on a gun shop’s capacity and facility to offer instruction and safety programs. Indeed, such programs, if available, would be an important advertising emphasis in the Yellow Pages (Washington Times, 4/23/12).
Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.
Other recent media/advertising news:
Radio advertising rises in Q1
Digital, network and off-air nudged total radio advertising revenue up a modest 1% in the first quarter, reaching $3.81 billion, according to the Radio Advertising Bureau. Local radio was flat. Home furnishing and floor coverings (up 30%) and grocery and convenience stores (up 11%) paced the growth. (Source)
TV’s fall ad rates are up from last year
Another positive sign for advertising — despite grumbling from some major advertisers, the major TV networks are achieving higher rates for ad time in the coming fall season. Notable among the dissenters, however, has been General Motors, which is behind only Procter & Gamble and AT&T as a buyer and has been demanding a decrease in rates from last year. (Source)
National brands looking local for higher ROI
Eighty-eight percent of North American national brands are investing in local marketing, but fewer are measuring their return on that investment, according to a Balihoo survey. About 1 in 5 brands are allocating 25% or more of their marketing budgets to local efforts, according to the survey, although more than half of brands don’t measure local marketing ROI. Most brands, however, expect an ROI for local to meet or exceed that of national advertising. (Source)
Facebook Poll: Ads Not Attracting Much Interest A Reuters/Ipsos poll shows 4 out of 5 Facebook users have never bought a product or service as a result of advertising or comments on the social network site, the latest sign that the company faces some big challenges to turn its 900 million customer base into advertising dollars.
The online poll also found that 34% of Facebook users surveyed were spending less time on the website than six months ago, whereas only 20% were spending more.
Results like this and a totally botch IPO stock offering underscore worries about Facebook’s money-making abilities. Those concerns were exacerbated last month when General Motors Co, the third largest advertiser in the United States, said it would stop paid advertising on Facebook. Its stock is down 29+% since its initial public offering last month, reducing its market value by $30 billion to roughly $74 billion.
Consumers’ increasing use of smartphones to access Facebook has been a drag on the company’s revenue. It offers only limited advertising on the mobile version of its site and analysts say the company has yet to figure out the ideal way to make money from mobile users. (Source)
A Peak Into Online Marketers Emerging Digital Strategy An Adobe’s Digital Marketing Optimization survey indicated that more than two-thirds of online marketers say they will be performing more website analytics checks with social media analytics being a priority for more than half of respondents. The study indicates that resources will likely be shifted toward the creation of more video (61% of marketers said they’d be focused on that), as well as interactive publications (a priority for 45% of respondents). The survey also shows dissatisfaction with testing methods. (Source)
Google: Going Local Thru Social Network The Google+ social network will be the focal point for a new effort by the search giant to capture local business advertising. Google’s “Business Builder” will combine local search data with smartphone applications such as Punchd, for loyalty rewards, and TalkBin, a mobile-phone feedback service for merchants. Google hopes local businesses will feel better connected to their customers through Google+ and that in turn will spur display advertising as well as coupon offers and other deals through the social network.
At the core of Google’s campaign is a desire to get more local merchants to spend money on digital advertising, including on Google’s search engine, where 20% of searches are for local information. According to BIA/Kelsey, digital-ad spending by local businesses last year reached $21.2 billion, a figure that is expected to increase by more than 12% annually. (Source)
Some Yellow Pages Love (Yes, It Still Does Happen) Here are some recent examples:
Phone books are still useful: For many adults, looking up your name in the South Central Bell telephone directory meant you had ‘arrived.’
Lessons I Learned From Phone Book Advertising Part I | Your …: I enjoy placing my business in phone books for several reasons. I find that the response is good if you have correct placement.
Tips for Finding a Roofing Company « Iowa Appliance Rebate …: The phone book is another good way to find a roofing company in your area.
The big steps to starting a small business: There are literally thousands of web sites with information on how to create and circulate your newsletter or book. Yellow Pages – This can be a more expensive source for marketing but a high profile way to get your name in the public eye.
These news items are brought to you by Kuk & Baldwin:
AUTO MARKET. Sales and leases of all passenger vehicles, new and used, fell significantly between 2007 and 2009 – with new cars dropping 36% and used cars 14%. The figures for 2010 are being compiled but are not expected to show any turnaround. But in spite of the statistical decline in used car sales, there is now a strong demand for used cars. One big reason is that people are keeping their cars longer. Also, smaller, more fuel-efficient models less than 10 years old have increased in value, some 20% to near 30%. All of this is good news for the repair business, since increases in value can better justify decisions to do major repairs rather than trade (Auto Body Repair News, 11/18/11).
2011-2012 COST/VALUE REPORT. With the housing market still in the doldrums, the figures for cost recoupment of remodeling jobs are still lagging way behind their peaks in 2005. For example, the highest recoupment within 2 years is now siding replacement with fiber-cement, at only 78%. Other recoupment percentages include: siding replacement (vinyl), 70%; roofing replacement, 58%; “minor” kitchen remodel up to $20,000, 72%; window replacements (vinyl), 69%; window replacements (wood), 66%; and bathroom remodels, 62%. As you might expect, most of the highest recoupment projects are exterior and/or add curb appeal to make the property more saleable (Remodeling, 11/11).
THE FINAL PARTY. The National Funeral Directors Association says that the US average cost of a complete funeral is now about $7800. But new data from an AARP survey of people over 50 suggest that more people are deviating from tradition: (1) only 23% have prepaid at least part of funeral expenses for themselves or someone else; (2) 34% have planned part of their own or someone else’s “final party”; and (3) 79% have done no comparison shopping for professional funeral services. Indeed, as more people take matters into their own hands, the funeral services market will likely become more and more specialized and may require some ad targeting in the YP (Wall St. Journal, 10/31/11).
Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.
Other recent media/advertising news:
Sorrell and Nadal Project Ad Growth in 2012
Though the U.S. economic outlook is still pretty grim, the prospect for ad spending is brighter for the coming year, according to leaders of WPP Group and MDC Partners. Martin Sorrell of WPP said his company’s figures for November were better than expected, and “we continue to see good momentum.” And MDC’s Miles Nadal said that in a low interest-rate environment, companies are concluding they’ll see a “superior rate of return” from spending on marketing. (Source)
Online Spending Growing & Almost Ready to Surpass Newspapers
Online spending rose from $15.1 billion to $19.5 billion from Nov. 1 to Dec. 4 compared with last year, according to comScore. But that may dip temporarily as “online retailers typically reduce their promotional activity as they attempt to restore their margins,” warns comScore’s Gian Fulgoni. Upper middle class earners led the early charge, possibly experiencing what Fulgoni called “austerity fatigue.” (Source)
Add to that, this chilling reality: Newspaper advertising may be overtaken by online platforms as the leading spot for local ad dollars in 2013, according to a projection by Borrell Associates. Currently, digital accounts for 17.5% of local ad spending while newspapers hold 22.7%. But online growth of 20%, led by 66% growth in mobile ad spending, is expected to outpace the 5% growth across all media next year. (Source)
More newspaper horrors: Gannett’s third-quarter results showed an uptick in nonpolitical TV ad revenues, a 27.5% gain in digital advertising revenues at TV station properties and a 26.7% gain in retransmission fees. On the print side, national advertising at USA TODAY and other Gannett properties dropped 17%. Overall, digital gained 10%, totaling $272.6 million for the quarter. (Source)
Here Fido: Americans continue to ramp up spending on pets
U.S. spending this year on pet products is expected to be a little more than $50 billion, per American Pet Products Association data, a record-setting figure for the industry. Meanwhile, Mintel predicts that spending in this sector will grow 33% over the next five years. (Source)
For Digital Giants, It’s Been A Long Road to Revenue Land
Yellow Page publishers would do well to note this most recent article: For both Google and Facebook, the road to significant revenue has been a long one along which the digital giants having to make numerous adjustments along the way. Common to both has been opportunities in catering to smaller local and niche businesses looking to target consumers based on interest and location. (Source)
Population Shift – Heading to the Cities
Almost all of the U.S. population growth between 2000 and 2010 was urban, according to an analysis of the latest census data. Marketers are responding to this trend by ramping up products and services aimed at city dwellers. For example, Ikea is putting more of a focus on furniture designed for small spaces, while some big-box retailers are scaling down their store size to fit city centers. (Source)
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Tagged advertising, Kuk Baldwin & Associates, media advertising, Yellow Pages, YP Talk
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