Tag Archives: Kantar Media

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,

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)


News U Can Use – March

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

REMODELING REPORT. As you’d expect in this post-housing-bubble period, figures for cost recoupment of remodeling jobs are significantly lower than in 2008 – e.g., only a steel entry door replacement gets a 100% recoupment within 2 years, while a garage door replacement recoups 84%; siding replacement recoups 74% to 80%, depending on materials; and window replacements average about 72%.   Most everything else runs 45% to 65%.   Note that the highest recoupment projects add curb appeal to make the property more saleable (Journal of Light Construction, 1/11)….Remodeling growth for 2011 could be as high as 9% – ending at an annualized dollar figure of $124 billion (Remodeling, 2/11).

HOME SECURITY. The US residential security market is worth $21 billion a year, and that includes everything from complex monitored electronic systems to simple deadbolts.   According to the Uniform Crime Report, there are now nearly 10 million property crime offenses a year in the US – with burglary accounting for 25%, of which 67% (1.7 million) are residential.   The average loss is close to $2000.  But if the economy stays flat, the numbers could get worse.   While the vast majority of households won’t be buying an elaborate system, many are spending up to a few hundred dollars with locksmiths for basic protections like deadbolts, window locks, garage locks, and door viewers (Locksmith Ledger, 2/11).

MARKET BRIEFS. A recent survey of restaurant owners showed that 70% expected their 2011 sales to be better than 2010, while 28% felt sales would be about the same, and only 2% thought 2011 would be worse than 2010 (Restaurant News, 1/10/11)….Some 89% of brides-to-be are considering a small wedding to save money, with 45% planning to spend less than $10,000 (Research Alert, 1/21/11)….In a recent survey, a bare majority (51%) of small business owners said that “weak sales” was their biggest problem and that it reflected the effect of declining household wealth on consumer buying (World, 2/12/11).

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

Other recent media/advertising news:

Kantar Media: U.S. ad spending increased 6.5% in 2010
Research firm Kantar Media indicated that the overall US domestic advertising sector grew 6.5% last year.  TV (including broadcast and cable) was up 10.3%, online display rising 9.9%, radio up 7.6% and outdoor up 9.6%.  Yellow Pages were not specifically mentioned but the newspaper sector was the only down sector, coning in down 3.5% from 2009. The total U.S. spend was estimated at $131 billion. Looking deeper at which vertical market segments drove the gains, automotive was the largest climbing 19.8%.  (source)

More Bad News for Newspapers:   Classifieds aren’t coming back
The estimates presented in the above research by Kantar are consistent with an industry that has seen steady losses over the past five years.  Why?  “Fundamental shifts in consumer and advertiser behavior” to use the Web for help wanted, auto and real estate ads, according to  Alan D. Mutter, a professor at the Graduate School of Journalism at the University of California, Berkeley. The drop in classified advertising has accounted for 58% of the nearly $23 billion in lost newspaper ad sales from 2005 to 2010, according to Mutter. (source)

Interactive ads engage readers better than print
A new study finds that interactive advertising via digital magazine platforms (such as Apple’s iPad) are better at engaging  readers and have stronger purchase intent than the same ads featured in print magazines according to research commissioned by Adobe.  The study did not measure actual purchases though.  (source)

Webvisible: SMB Search Spending Down, But getting More Efficient
The “State of Small Business Advertising” report, conducted by online advertising firm WebVisible found that sSmall businesses actually spent less on search advertising during the final three months of 2010, and they spread those dollars across more keywords.

The new report indicated that the average small business spent $2,126 on search in Q4 2010, a 1.1% year-over-year decrease from 2009. The average keyword count was 87 root keywords per advertiser over the last three months of the year — a 30% increase from the same period in 2009.

WebVisible suggested that the numbers suggest smaller advertisers are becoming more efficient with their paid search strategies, but didn’t make any comment that the down economy might have also contributed to the reduction.  (source)

Yodle introduces local display ad product
Yodle is moving beyond its core search and online directory ad products with a new display ad tool. The tool is oriented at giving local businesses, especially franchises and those with multiple sites, the ability to place contextual and targeted display ads.

Since its creation in 2006, Yodle has primarily focused on helped local businesses attract prospective customers by facilitating search and online yellow pages campaigns. Now, according to company execs, using the new Yodle Display product allows local businesses to run contextual- and even behavioral-targeted display campaigns.

While the company’s other products are aimed at every range of small business—from pizza places to plumbers—Yodle Display is primarily geared for franchise and multilocation businesses.  To date, the company has yet to show a profit.  (source)

Skype launches front page advertising
Skype is opening its video calling service to advertisers.  In an effort to develop a new revenue stream ahead of the company’s much anticipated public offering, the site will begin showing large-format ads on its front page from companies including Visa, Universal Pictures and Volkswagen. Windows users in the U.S. and the U.K should have already seen the first ads by now. (source)

Twitter more popular among small businesses

From a survey by BIA/Kelsey and ConStat, about 20% of small and midsized businesses use Twitter, and about half are using Facebook. Twitter use more than doubled for small and midsized businesses between the third quarter of 2009 and the fourth quarter of 2010, the survey found. (source)

Groupon Sued

A Minnesota man has sued Groupon, alleging that expiration dates on the company’s discounts are “deceptive and illegal.”  The lawsuit filed in U.S. District Court in Minneapolis said federal and state laws prohibit companies from selling or issuing gift certificates with expiration dates. Groupon of course had no comment. Instead they rolled out a new ad campaign of short, mild TV commercials. Groupon also dismissed its ad agency, Crispin Porter & Bogusky, following a poorly-received set of Super Bowl commercials.  (source)