Tag Archives: Kuk Baldwin & Associates

News U Can Use – March

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)

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News U Can Use – September

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

MAJOR APPLIANCES.     The US major appliance market shrank 5.1% in 2011, down to $19.1 billion – but appliance retailers appear to be bulking up on their inventories, especially on high-end units such as $7000 refrigerators and $1200 washing machines, but also on lower priced units as well.   This all seems counter-intuitive – but according to the source article, although sales are down, prices are holding steady and still offer dealers relatively high margins, enough to do a lot of promotional selling.   While promotions are a large part of the appliance industry, retailers should not forget that many prospective buyers have a need when there’s no promotion on and will check the YP (Wall St. Journal, 8/1/12).

CHILD CARE INDUSTRY.     It’s close to a $50 billion-a-year market in the US.   The trend seems to be moving toward franchising, but it’s still composed mostly of independent providers.   The fact is, both segments are likely to grow, as experts predict a 9.2% annual growth rate.   Right now, some 14.4 million US children are in some form of child care, and 65% of US mothers with children under age 6 are in the workplace.   Finally, even though US birth rates have been down the last few years, there are still 3.94 million births per year – so there’s still good reason for child care centers to advertise (Entrepreneur, 8/12).

CONFIDENCE FACTORS.     Based on the truism that a rotten apple can taint the others in the barrel, advertisers in some of the most important YP categories may do well to beef up the reliability or confidence factors in their advertising.   Specifically, from 2010 to 2011, written complaints rose 32% for attorneys, 29% for restaurants, 26% for real estate agents, 22% for specialist physicians, and 17% for movers.   Regarding the latter, the biggest complaint was charging substantially more than the estimate and then “holding the householder’s belongings hostage” until they pay the charge.   Legislation against this tactic has already been passed, but the taint remains (Smart Money, 8/12; USA Today, 7/30/12).

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

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Other recent media/advertising newsYou will notice this version of News U Can Use is very digital centric.  There seems to have been an explosion of media advertising news recently, and it is just about all focused on the online, mobile, and social spaces.  So, here are some of the more important ones for this industry:

U.S. digital-ad revenue projected to rise 16.6% this year
According to an eMarketer estimate based on Interactive Advertising Bureau/PricewaterhouseCoopers data, Google is leading an expected 16.6% rise in digital ad revenue this year. The top five players which include well know entities such as Yahoo!, Microsoft, Facebook and AOL, will account for about two-thirds of the year’s projected $37.31 billion. Search and display will continue to dominate the ad formats through 2016, per eMarketer. (Source)

U.K. small businesses don’t understand their social successes either
It really just isn’t a US SMB issue.  According to a Constant Contact survey owners of many U.K. small and medium-sized businesses have unrealistic expectations for their social media campaigns. For example, almost a quarter of those polled said they’d consider a piece of content on Facebook a success only if it sparked 500 or more interactions. But Constant Contact’s Annette Iafrate says tangible results can be achieved with far fewer interactions. (Source)

Company finds 80% of Facebook ad clicks come from bots not people
Another company has indicated it is pulling its ads from Facebook and moving some to Twitter.  Why?  The company, Limited Run, has found evidence that 80% of ad-clicks were being generated by automated “bots” rather than human users.  The company built a custom analysis tool to monitor its ad campaigns after becoming frustrated with the limits of Facebook’s own tools. The company says its custom tool found that only 1 in 5 clicks on its ads appeared to come from legitimate sources. (Source)

BIA/Kelsey:  Daily deals are a $3.6B industry
At its recent SMB 2012 conference, BIA/Kelsey projected that Americans are expected to spend $3.6 billion on digital daily deals this year, up 87% compared with last year. The analyst group indicated they project the industry should swell a further 23% next year, en route to $5.5 billion in 2016.  Vice President and Program Director Peter Krasilovsky said that “after astronomical growth in 2012, the online deals marketplace is showing signs of maturity.”  (Source)

Twitter to offer interest-based ad targeting
Coming to a tweet you read, target based advertising.  Brands will soon be able to target ads to Twitter users based on the interests they reveal in their tweets and in the network of other users that they follow. Advertisers will be able to use that data to target ads, in much the same way that Facebook advertisers can target promotions based on a user’s likes, officials said. “This has been one of the most interesting things that Facebook has had to offer to advertisers. For Twitter to do their own version makes sense,” says Jonathan Strauss of Awe.sm. (Source)

MediaMind: Video ads have killer click-thru rates
A MediaMind study is indicating that online video ads are generating remarkably high click-thru rates, with some formats proving more than 28 times more effective than standard banner ads. In-stream VAST-format video ads had a click-thru rate of 2.84%, versus 0.22% for rich-media ads and 0.10% for a standard banner, researchers found. (Source)

Mobile is the current advertising media rage.  Here are three recent news items:

U.S. is emerging as global leader in mobile ad spending
The U.S. is poised to overtake Japan this year as the world’s leading market for mobile ad spending, reaching $2.29 billion in total outlays, compared with $1.16 billion in 2011, according to eMarketer. Mobile advertising is growing faster in North America than in the Japanese markets, because the Japanese markets are more mature. The Canadian market is expected to be worth about $110 billion this year, the firm notes. (Source)

Mobile advertising is limited by small screens, weak tracking tools
However, despite all the excitement about mobile, advertising on smartphones leaves plenty to be desired, experts say. The NY Times reported that tracking tools for mobile are far less effective than their desktop equivalents, and tiny screens aren’t well-suited to creative ad campaigns. “Size absolutely does matter,” says Christine Chen of Goodby Silverstein & Partners. “If you look at the real estate available on a smartphone, it’s really sad compared to not just banner ads on the Web, but also to TV, print and outdoor advertising.” (Source)

Study: Ads to account for 23% of mobile-app revenues
Apps are the really, really hot thing within mobile right now.  Dig a little deep and you find some interesting things:  Advertising will account for 23% of mobile-application revenues this year, an increase from 18% last year, according to a Flurry study. Ad revenues from mobile apps will total $2 billion in 2012, more than double the 2011 figure, the study reports, although most revenues will continue to come from paid apps and in-app purchases. (Source)

The last word:

Merged company headquarters will be located in Dallas

To wrap things up, here is some late breaking industry news.  Not surprisingly, the News & Observer newspaper has reported that the upcoming merger between North Carolina-based Dex One and SuperMedia will cost the Raleigh area a corporate headquarters.

The two yellow pages publishers, which announced their merger last month, have decided that the combined company’s headquarters will be based in Dallas, the home base of SuperMedia, according to an internal announcement obtained by The News & Observer.

“Working together, the leadership teams of Dex One and SuperMedia have determined that the best location for our headquarters will be at the current SuperMedia headquarters complex at the Dallas-Fort Worth airport,” stated an e-mail message that went out to employees recently signed by the CEOs of the two companies, Dex’s Alfred Mockett and SuperMedia’s Peter McDonald.

News U Can Use – July

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:

  • Precon Workshop: Building a Winning SMB Sales Organization
  • The Agencies on SMB Digital Marketing
  • SMB Franchise Leaders: Perspectives on the New Online Marketing
  • Sales Insights: Leveraging Resellers
  • Google and SMBs: The Special Relationship
  • Building an SMB Marketing Platform
  • Social Media: Focus on Business Models
  • Deals 2.0: The SMB Applications
  • Performance Marketing for SMBs
  • Making Sense of Mobile Advertising for SMBs
  • Inside Chicago’s SMB Tech Scene: Mega Hitters and Startups

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)

  • 23% used their phone to exchange text messages with someone else who was watching the same program in a different location
  • 22% used their phone to check whether something they heard on television was true
  • 20% used their phone to visit a website that was mentioned on television
  • 11% used their phone to see what other people were saying online about a program they were watching, and 11% posted their own comments online about a program they were watching using their mobile phone
  • 6% used their phone to vote for a reality show contestant

 

News U Can Use – June

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.

Sales: Key Steps You Need to Take to Be Prepared

Thanks to Wayne Mulling of the Sunshine Pages for showing me this article which describes the 14 basic preparation things that sales people should do before making a sales call.

This was an article that actually ran in 2010, and it starts with a revealing study from IDC which found that only one out of six sales professionals were “extremely prepared” for an initial meeting with a customer. 57% were either not or only somewhat prepared.  Seriously?  In this day and age, in this economy, you are often only going to get one shot at talking with a busy small/midsized business owner. Most SMB’s will know right away that you are “winging it”.

The crazy part is that there really is no excuse for not being prepared.  This industry has more supportive data than most other media, and even if you are not familiar with a particular line of business, there is always the Kuk, Baldwin & Associates heading analysis sheets, or even a quick Google to provide you with some much needed background.

Let me pick a couple of the points discussed in the 14 tips article for some additional commentary:

3. Prepare to fight the status quo: What’s one of the first comments most SMB’s currently advertising with you will say – “just leave it like it is”…  Yet, has their business changed within the last year?  It most likely has, so that program from last year probably isn’t the best indicator of where their business stands, and is headed.  Probe deeper.

4. Research the company:  Dah.  While this truly is Sales 101 stuff, given the statistics from the research at the beginning of this post on preparedness, I am still surprised at the number of reps who don’t do this.  And what is the one of the most common complaints from SMBs – “the rep didn’t know anything about my business”.  If you fall into that camp, how are you ever expecting this owner to accept the recommendation you are making??

6. Anticipate objectives and questions:  You already know what the top three objections will be.  Do you have an answer for them?  Why not?  Don’t try to wing it further.  Go in prepared. Think about the most likely questions and objections you are likely to hear and prepare your responses.

10. Prepare case studies and testimonials:  I know your company has these.  Do you have them ready to show to the customer?  If your company is being a little stingy on new sales aids, create your own.  It’s worth it for you.

11. Bring your ROI information:  The main point here is why is this business going to spend several thousand dollars with you, with your company?  What’s in it for them?  Show them the value they can expect, and why?

13. What do they see when they look for you?  This may sound a bit old fashion, but when you arrive at their door, what is the way you are dressed, your materials, your energy level, and your smile (or lack there of) saying about you?

 

Would love to hear more on what else do you recommend? What is a waste of time? How much prep do you do or recommend?  Let me know at ken@yptalk.com

 

 

News U Can Use – January

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)

 

 

 

News U Can Use — July

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

SECURITY NEED INCREASES.     When the economy is down, burglary and
property crimes go up.   Indeed, all facets of the private security industry are doing well and running at a $160 billion-a-year clip – with alarm systems accounting for some $35 billion of that and growing by 7%-8% a year.
Regarding home alarm systems, the trend is to wireless, especially with many homes abandoning land phone lines.   Also, homes with a monitored system,
including wireless, are 3 times less likely to be broken into or robbed
than homes without one.   And while security firms still install most systems, more and more locksmiths are finding alarms to be a reliable new revenue stream (Locksmith Ledger, 6/11).

NEW BUSINESS MODEL?  Since the “Great Recession” began late in
2008, more people have become entrepreneurs than during the prior 15 years –
and the future will likely bring more of the same.   According to a 2009 report by MIT, freelance positions are expected to make up half of all new jobs during a recovery – in part because of online technology, and also the fact that many firms find they can operate efficiently by shrinking permanent staff and using
freelancers.   Many freelancers will look for work on freelance websites like Elance, but some may need good YP representation (Christian Science Monitor, 6/13/11).

REMODELING BITS.     A recent Scarborough Research survey found
that the most common home improvement projects undertaken by homeowners in the past year were landscaping, 29%; interior painting or wallpapering, 28%;
carpeting/floor covering, 14%; and bathroom remodeling, 13% (Research Alert,
6/3/11)…. Pennsylvania builders have beaten back a proposed law requiring
fire-sprinkler systems for all new construction (Journal of Light
Construction
, 6/11)….A bill has been introduced in the Senate to require
lenders to consider energy-saving factors when offering mortgages (Remodeling,
7/11).

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

Other recent media/advertising news:

Survey:  Advertisers & Marketers More Optimistic
An AdAge survey of 3,200 advertisers and marketers reveals the industry is feeling a bit more positive about things, with executives saying they’re more optimistic about boosting their ad budgets than at any other time in the past four years. Advertiser Perceptions carries out the survey every six months, and the latest result marks a turnaround from more cautious sentiment in the immediately previous sampling.  (Source)

Revised forecast calls for 20% growth for online ads
eMarketer has revised its online ad spending estimate for this year as results are more robust than previously projected.  Online is expected to now grow 20% to $31.3 billion The company earlier estimated a 10.5% increase to $28.5 billion.
Display ads, which are projected to rise 25% to $12.3 billion, are helping to
fuel the growth.  (Source)

TV ad spending is expected to hit $68 billion by 2015
A new forecast from eMarketer predicts that overall traditional media advertising will be basically flat for the next couple of years, TV ad
spending, which was $59 billion last year, is expected to climb to $64.5
billion in 2012 and on to $68 billion by 2015. (Source)

TV Part 2:  some additional good news for TV:  NBC’s Super Bowl ad sales are strong, despite the fact that we aren’t even sure there will be a pro football season, with nearly half the ad time already sold for the February, 2012 game. As was true with Fox last year, automakers are the ones “driving” the market. Exact prices are not being shared, but it appears NBC will be able to push increases beyond the typical increase of $150,000 from year to year which would easily topping last year’s going rate of $3 million for a 30-second spot.   Who says advertisers have no money to spend?? (Source)

TV Part 3:  Time Warner is increasing the number of TV channels and programs it pipes over the Internet to people with conventional pay-TV subscriptions, as the TV business faces growing competition from Web-video services.  (Source)

More e-mails are being delivered; fewer opened
Another new media advertising tool doesn’t seem to be working as
well.  According to Harte-Hanks, delivery rates for subscription-based e-mail sends rose slightly to 95% for 2010, but average open rates dropped from 26% to 17%.   Click thru rates stayed level at 3%. Harte-Hanks advises e-mail marketers to keep their lists “clean” by handling right away bounces and opt-out requests; targeting messages and running them at set intervals; and testing each message.  (Source)

More Newspaper Good News/Bad News

Gannett, the publisher of USA Today announced that its Q2 profits fell 22%.  The good news:  the profit drop was smaller than Wall Street was expecting and digital sales were “strong”.  As a result, the company had more than doubled its dividend.  (Source)

Three advertising elements that trump creativity
Don’t let the desire to be creative get in the way of communicating the three main elements of advertising, Ryan Caligiuri, a Winnipeg-based marketing specialist writes. No matter what, your advertisement should state the benefits of your product, give customers a reason to buy and include a simple, repeatable tagline (can you say RASCAL factors Yellow Pages people….).  (Source)