Tag Archives: Kuk Baldwin

News U Can Use – October

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

PET NEWS.     The dog day care business is getting big, as indicated by the fact that the average cost range for an 8-hour day is up to $25-$32 ($35-$55 for overnight boarding) – and also by the fact that some of the high-end facilities require dog owners to complete detailed applications.  There are even cases of
dogs being “expelled” for misbehavior (Personal Journal, 8/11/11)….Nationally,
the cost range for a dog or cat physical exam by a vet is $35 to $46, while
repairing a typical fracture can range from $725 to $1200.   More people are now comparison shopping for veterinary care (Consumer Reports, 8/11).

ALTERNATIVE THERAPIES.     In a survey of over 45,000 readers with a variety of ills, Consumer Reports (9/11) rated several alternative treatments used, including chiropractic and acupuncture.   For chronic back pain,
36% used chiropractic, with two out of three saying they were “helped a lot” –
while only 8% used acupuncture, with 41% giving it high marks.   For headache and migraine, 15% used chiropractic and 45% rated it effective.   And for neck pain, 41% used chiropractic with two out of three choosing “helped a lot,” while 10% tried acupuncture, with 44% indicating it was effective.   The average cost of a chiropractic visit for respondents was $71; the average for acupuncture was
$66 a visit.

TRAVEL AGENCY FACTS.     The American Society of Travel Agents reports that as of this July, there were 14,380 retail travel agencies in the US – down from 16,504 in 2009 and 25,924 in 2002.   And while it’s true that many travelers now go online and make their own arrangements (especially airline tickets), agencies still handle over 50% of all travel sold in the US – a segment amounting to more than $146 billion in sales annually.    That’s an average of about $10.5 million worth of travel per agency.   The biggest reason some 30% of
travelers still use traditional agencies almost exclusively – especially for
foreign travel – is the security of agency support while on the road (USA
Today
, 8/30/11).

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

Other recent media/advertising news:

Even Amid an Economic Slowdown, Growth is Forecast for  Advertising

Panelists at a recent Advertising Week event indicated that even
with the ongoing slow U.S. economy, advertising revenues are expected to continue to rise for next year and 2013.  2012 will have the advantage of being a
Presidential and major Congressional election year, as well as the summer Olympics to further stimulate media spending.  (Source)

Internet Ad Revenue Grows  to $14.9 Billion in first Half

Internet ad revenue reached $14.9 billion in the first half, up 23.2% over the first half of last year, according to a new IAB Internet Advertising Revenue Report conducted by audit firm PricewaterhouseCoopers.

But Look A Little Deeper:  Google Banner Ad Click-Through Rates Slip

According to a Google survey, despite efforts to make banner ads more appealing, their overall rate for click-throughs declined a bit last year,
to 0.09% from 0.1% two years ago.   However, significant differences were noted for the types of ads, with a 250×250 pixel ad using Flash winning a 0.26% click-through rate. (Source)

 Newspaper Print Ad Spending Drops for 20th Quarter

Given the prior article about Internet ad revenue, would it surprise you to know that U.S. newspaper print ad spending fell for the 20th consecutive quarter, dropping 9% in the second quarter to $5.19 billion, according to the Newspaper Association of America. But the “good” news was that their revenue from online advertising was up 8% to $803.4 million.  (Source)

Times Can’t Be All That Bad:  Super Bowl ad slots nearly sold out

Advertising space in the 2012 Super Bowl is nearly sold out, with just five 30-second slots up for grabs, reports NBC Sports’ sales chief, Seth Winter, who says each of the spots will cost $3.5 million. Winter said he expects all of the inventory will be sold by the year’s end. NBC is stipulating that marketers who run ads in the big game also purchase ad space across other NBC Sports assets. (Source)

 Mobile:  New Mobile Metric Platform Charts Calls, Duration, Demographics

Good to see long time industry supplier Telmetrics rolling out their new “m.Call” platform.  Designed to measure the click-to-call performance of mobile ads and includes call duration and user demographics.   Also works with regular business numbers, which means that special call-tracking numbers are no longer necessary. (Source)

Mobile:  Yahoo! Also Wants to Play

Mobile search accounts for less than 15% of Yahoo!’s total search volume in the U.S. right now, but that number is expected to grow to 25% to 30% in the next few months.  Mobile ad revenue is projected to post 100% year-on-year gains.  All of this from Shashi Seth, senior vice president of search products at the Web portal.   (Source)

Mobile:  Online Retailers Seeing Surge, Believe They are From iPad

Mobile devices account for 22% of Rue La La’s revenues, with iPads
alone making up half of that, according to company Chairman Ben Fischman,
speaking at Shop.org’s Annual Summit.  “Our iPad sales are through the roof,” Fischman said, echoing reports by another online retailer, Ideeli, which also said the Apple tablet is responsible for about half its mobile sales.

Does your company have an iPad apt yet?  (Source)

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)

News U Can Use-January

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

NO RECESSION FOR PET CARE. In 2010, Americans spent $20 billion on vet bills, up 8.5% over 2009 – and that will increase in 2011, because more and more pet owners are paying thousands of dollars to treat pet illnesses that would have gone undiagnosed or untreated a few years ago.   For example, some dogs and cats are receiving pacemaker implants at a cost of $1000 to $1500, while a dog or cat with kidney failure may undergo a kidney-clearing procedure that costs $20,000 to $25,000 for just the first few weeks.   Other examples include a detailed exam, $200-$450; an MRI, $1500-$2500; surgery, $500-$8000; radiation, $1500-$10,000; and chemo, $200-$1000 a month (Smart Money, 1/11).

LOCKSMITH PRICES.     A 2010 price survey of basic locksmith services came up with the following averages (nearly identical to 2009):  service call, $65; hourly rate, $45; auto opening call, $60; fit standard auto ignition key in shop, $50; fit auto transponder key in shop, $92; fit auto sidewinder key in shop, $125; fit motorcycle key, $81; cylinder key-in-knob, $15; make US or foreign single/double cut keys by code, $12-$18; make foreign sidewinder key by code, $58; duplicate US or foreign single/double cut keys, $2.50-$5.50; duplicate hi-security key, $15; and first-key fitting, $32.  Such data can justify listing these services in a YP ad – even for locksmiths who specialize mainly in electronic access and other hi-tech systems (Locksmith Ledger, 12/10).

OPTICAL CONFUSION. In spite of the name, very few eyeglasses these days actually contain glass.   Most lenses are made of plastic for lightness, impact resistance, and overall safety.   And there’s a widening variety of types of plastic lenses – e.g., CR-39s, which are the least expensive; polycarbonate, which are highly shatter-resistant, UV protective, and cost more; high-index lenses, which are thinner, lighter, UV protective, and cost even more; progressive, also known as no-line bifocals; photochromic, which darken automatically in sunlight; and trivex, which are highly impact-resistant.   Several lens coatings are also available, such as for scratch resistance and anti-reflectivity.   A good YP ad for an optician or OD might list and briefly define many of these choices (Consumer Reports, 12/10).

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

Other recent media/advertising news:

US Ad Spending Rebounds to Over $150 billion in 2010

The Wall Street Journal (link to full article) reports that after a difficult 2008 and 2009, the U.S. ad market will take a step forward in 2010, based on the latest study from ad-buying firm ZenithOptimedia. The company’s projections have U.S. ad spending coming in at $151.5 billion, a 2.2% increase over the $148.3 billion taken in during the previous year.

Let’s hope that this trend also continues into the Yellow Page industry as well.

Don’t Look Now – Online publications are about to edge out newspapers for ad dollars

Portfolio.com’s blog (link to full article) reports that companies are expected to spend $25.8 billion on online advertising this year, which for the first time will exceed the total spending on newspaper ads, according to a study by eMarketer. Marketers are reallocating dollars because “they see more customers shifting time toward the Web. It’s something we’ve seen coming for a long time, but this is a tipping point,” said eMarketer CEO Geoff Ramsey.

Magazines post first ad sales gains in three years

Are we seeing the end of the chill in advertising??  Reuters has reported that the magazine industry has posted its first gains in ad sales since 2007. Ad revenue at consumer magazines climbed 3% in 2010, the first such gain in three years. Time Warner’s People magazine led the way in total ad revenue at $1 billion, while the Food Network magazine was up 174% for the year’s largest percentage increase. Increased auto ads accounted for much of the boost across the industry.

Google, Google, and more Google

Two news items related to Google.  First one: from The Wall Street Journal (link to full article) — It appears that Google is getting into the cold-calling game, reaching out to local businesses with offers of online advertising packages and discounts. The calls are designed to demystify the online-ad buying process for small-business owners.  For example:

One person who has experienced the results is Debbie Codino, a manager at Bob Brown Tire Center Inc. in Portland, Ore. She said she hangs up daily on callers who say they can help boost the small tire shop’s presence on the Web to attract new customers. But when she received a call from a Google salesman last month, she stayed on the line.

Ms. Codino quickly agreed to pay $25 a month to highlight her store and show a 10%-off coupon when people use terms like “Portland tires” in a search on Google. “I was surprised,” she said. “This time it was really Google calling so I was motivated to listen.”

And – ClickZ (link to full article) reports that Google, which is on track to reach some $2.5 billion in display ad sales this year, is positioned itself through various ad products and platforms to take advantage of the growth projected for the segment. Displays are expected to go from $8.9 billion in 2010 to $15.9 billion in 2014.

“Google has rebuilt the infrastructure of a huge part of online advertising,” said Adam Cahill, senior vice president and director of digital media at Hill Holiday. “They’re the guts. It kind of doesn’t matter what the outcome — they’ll be touching it in some way.”

Gen X Cost Cutting Most in Tight Economy

When talking with your potential advertisers, be sure to find out what their products and services demographics are.  According to a recent poll from Harris, GenX-ers (ages 35-44) have taken significantly higher steps than the average American to cut costs.  Some finding from the study:

  • Generic Brands (as a cost cutting measure) has become popular with all ages
    • 62% of US adults have bought more generic brands in the last six months
    • 70% of GenX have bought more generic brands in the last six months
  • Taking a brown bag lunch is the second most popular cost cutting measure:
    • 45% of US adults brown bag it instead of buying
    • 62% of GenX brown bag it instead of buying
  • Gen Xers are likely to take other cost cutting measures:
    • 45% of GenX tend to go to the hairdresser less often against the overall average of 37%
    • 44% of GenX switched to refillable water against the overall average of 37%
    • 35% of GenX stopped purchasing morning coffee against the overall average of 22%
    • 28% of GenX cut back on cable or TV services against the overall average of 22%.

Younger users prefer IM and texting to e-mail

Age warfare?  ComScore has reported that although the use of digital communication tools, such as instant messaging, texting and Facebook, is up across the board, e-mail usage is falling off. The number of unique visitors to Hotmail, Yahoo! and other top sites has dropped 6% overall from its peak in November 2009, and fallen 18% among 12-to-17-year-olds. Gmail, with a 10% growth rate, is the exception to this trend.

But now there is mobile email

MediaPost presented additional data from a ComScore report which shows the online population is getting into the mobile e-mail habit.  Mobile e-mail use was up 36% with a 40% boost in daily usage.  Compare that with the previous news item which showed a modest decline in Web-based products. The trend was most pronounced among users aged 12 to 17 (because Mom and Dad can’t monitor their usage as easy??). Among that group, time spent on Web-based e-mail clients dropped 48% and page views dropped 53%. But keep all of this in perspective — e-mail remains a leading Web activity with 153 million U.S. users accessing e-mail on the Web during November.

News U Can Use – November

Here are your media/advertising News U Can Use items for November:

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

PIZZA FACTS. Did you know that some 3 billion pizzas are sold in the US every year?  The source article doesn’t say whether that figure includes frozen pies at grocery stores – but if we assume 75% or nearly 2.3 billion are ready-to-eat pies cooked up by 69,000 pizzeria outlets, that’s an average of over 33,000 pies per outlet a year.   At an average of about $12 a pie, that’s close to a $28 billion-a-year market, for an average of $400,000 plus a year per outlet in pizza revenue.   Of course, many of the smaller outlets you deal with will not be close to that revenue figure, but it can be a goal to advertise toward.   After all, 93% of Americans confess to eating at least one large pizza a month (Restaurant News).

AFTERMARKET SWEET SPOT. That’s the term for the segment of US cars on the road that can generate the most revenue to the auto repair and auto parts industries.   The sweet spot comprises vehicles 5 to 10 years old, the time period in which they have the most parts replaced and/or serviced – and it currently numbers about 90 million vehicles (up 400,000 from last year).   The 90 million figure is approximately a third of all the cars and light trucks on the road.   So at an average of a little over two cars per US household, if an area with 40,000 households has 80,000 vehicles, some 27,000 would be in the aftermarket sweet spot.   That kind of local figure is a good one to have handy when you’re talking to an auto repair shop or an auto parts dealer about YP advertising (Motorage.com),

ELECTRONIC EYES. Bifocals and progressive lenses have long provided a solution for presbyopia, which makes focusing on close-up objects difficult and affects people over 40 – but many wearers have trouble adjusting to these lenses.   Now, an optometrist has brought to market electronic eyeglasses that look like ordinary glasses but contain a rechargeable battery, microchip, and motion detector that work to automatically “adjust the prescription” to the wearer’s position, distance, etc.   The initial cost will be about $1000, just 20-25% above high-end frames with progressive lenses (Bloomberg Business Week.

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

Other recent media/advertising news:

Things can’t be all that bad — Super Bowl ads sell out

Maybe things aren’t so bad in the advertising world — Fox recently reported that it has sold out of advertising time for February’s broadcast of the Super Bowl.  Ads are believed to be between $2.8 million and $3 million for a 30-second spot. The news of the sellout is the earliest for an previous game, and this with the potential teams that will play in the game still very much up in the air right now. Marketers advertising in the game are believe to include Anheuser-Busch InBev, PepsiCo, E-Trade and automotive marketers Kia Motors, Hyundai and Audi.   (Link)

More positive advertising media trends – Global ad spend rose 13% in first half of 2010

Global ad spending surged 13% during the first half of the year, to $238 billion, according to Nielsen measurements discussed in a recent AdWeek articles. North American ad spending rose about 5% during the time frame. Television showed the largest gain by media platform; it was up nearly 16% and accounted for 62% of all ad spending worldwide. (Link)

Magazines ads are up for second quarter in a row

Ad pages in U.S. magazines showed growth for the second straight quarterly period, rising 3.6% in Q3, the Publishers Information Bureau has reporting. More than 130 titles posted increases in ad pages, compared with 25 for the same quarter last year. Some of the best performers in the third quarter included Elle Décor (56.2% more ads); Time Inc.’s People StyleWatch (54% rise), and Conde Nast’s Glamour (36.6% increase). (Link)

But traditional media still struggling

If you believe research from 24/7 Wall St. and Harris Interactive, traditional media is in trouble.  Newspapers are struggling with circulation and magazines like Newsweek are being sold for $1.  While two-thirds of Americans (67%) still agree that they prefer to get their news in more traditional ways such as network television and/or reading newspapers or magazines in print, over half of Americans (55%) say traditional media as we currently know it will no longer exist in ten years.  Additionally, half of US adults (50%) say they tend to get almost all their news online.

Additionally, in looking at the amount of time people are spending with print media, one-quarter of adults say over the past year, the time they have spent reading newspapers in print and reading magazines in print has declined (25% vs. 23% respectively).  Conversely, three in ten adults (28%) say the time they have spent visiting online news and information sites has increased over the past year.

One reason traditional media should be worried is that media consumption and attitudes towards media are very different by age.  Only one-third (33%) of those 55 and older say they tend to get almost all their news online compared to almost two-thirds (65%) of those 18-34 years old.  And, while four in five of those 55 and older (81%) prefer to get their news in more traditional ways, just over half of 18-34 year olds (57%) feel the same way.

Besides traditional print media, network television also has to face a similar battle from both people watching more television online and watching more cable television shows.  Currently, two-thirds of Americans (67%) say they watch television shows primarily on television, while just 5% watch them primarily or mostly on their computer.  If this is broken down further by age, again, there is a large difference with over four in five adults 55 and older watching primarily on television (84%) compared to less than half of those 18-34 (48%).

To read the full release, with tables, go here:  link

Broadband access is still an issue in the U.S.

Everyone has easy access to the Internet, right?  Well, not really – MediaPost reports that the a “digital divide” still exists in the U.S., where more than one-third of households do not have broadband connections and 25% of households have no Internet access at all.  The results come from a study by the National Telecommunications and Information Administration has found. Not surprisingly income is big divider — more than nine in 10 households with $100,000 or more in annual income have broadband in their homes, but just over one in three of homes with $25,000 or less in income do. Geography is also important – two in three urban homes have high-speed access, compared with slightly more than half of those based in rural areas. (Link)

 

Kuk, Baldwin & Associates Announces Launch of Sell4Search

Kuk, Baldwin & Associates has announced the launch of “Sell4Search,” a unique website for small business advertisers and available only through YP publishers – with an aim to “educate” advertisers in basic advertising principles with a bias toward Yellow Pages.

Sell4Search teaches with animated mini-tutorials and also provides heading-specific resources for ad copy, headline ideas, local market data, etc.

Each participating publishers will have a portal page to the system, with blocks of passwords to give advertisers access.   The site will be added to regularly, so it will keep advertisers coming back and seeing the publisher’s message frequently.

Major benefits of this low-cost tool include are expected to include:

1.  It can be used by sales reps as a closer.

2.  It will strengthen advertiser perception of Yellow Pages.

3.  It motivates reps to be conversant in the material covered.

4.  It captures advertiser e-mail addresses.

For more info, call Tom Baldwin at 800-562-7986 or visit www.kukbaldwin.com