News: 7 Day Round Up
May 10 to May 4, 2008
May 10 to May 4, 2008
NEWSCORP STILL OPEN TO MYSPACE TALKS NEW YORK: The future of social networking website MySpace, part of the News Corporation empire, is off the agenda for the time being, following the collapse of negotiations between Yahoo and Microsoft. NewsCorp had been in talks with both parties about an alternative deal centring on its own web interests. Third fiscal quarter figures show the media conglomerate's online division is expected to miss its 80% growth target by "about 10%" – resulting in annual revenues below $1 billion (€651m; £510m). However, the door will be open to further discussions about MySpace. Company president Peter Chernin said NewCorp would take part in "any strategic conversation that does make sense". The company reports Q3 profit tripled on a $1.67bn gain from the sale of its stake in US satellite provider DirecTVGroup and from advertising sales. Net income rose to $2.69bn, from $871 million a year earlier. Sales increased 16% to $8.75bn in the January to March period, beating analysts' expectations. Data sourced from The Times (UK); additional content by WARC staff , 09 May 2008 Print | Email | Add to Folder Related News StoriesWSJ Integrity Committee Slams Editor's Resignation - May 1, 08 NewsCorp Ready to Buy NewsDay; WSJ Managing Editor Quits - Apr 23, 08 NewsCorp Gains Effective Control of German Pay-TV Group - Apr 16, 08  TELEVISION STAKES CLAIM FOR US ADULTS' TIME  NEW YORK: Television continues to command a significant portion of American consumers' attention, according to a new study from the Television Bureau of Advertising.The report, produced by The Nielsen Company, shows that 53% of those aged 25-54 spent all their daily 'media hours' in front of their TV sets, more than all other media combined; and that more of that demographic are reached by TV than other media. The study of 1,246 adults over a three-week period in January also revealed 90% of respondents reported watching TV in the previous 24 hours, as opposed to 80% for radio, 72.1% for the internet, 58.9% for newspapers and 48.3% for magazines. The time spent with TV in the same 24-hour time frame was also significantly higher (222.7 minutes) when compared with radio (106.5), the internet (99.7), newspapers (22.1) and magazines (15.1). In addition, claims the TVB report, TV advertising remains most influential with 81.4% of the 25-54 adult segment, compared with online advertising (6.5%), newspapers (5.8%), radio (3.9%) and magazines (2.3%). TV also had the most persuasive advertising among 69.9% of those surveyed, compared with 9.5% for newspapers, 7.5% for radio and 8.1% for magazines. The internet scored lowest at 5.1%. Brand and product awareness was also dominated by TV, with 55% of respondents saying they were more likely to learn about products and brands they might like to try and buy through the medium. The internet was next at 18.7%, magazines at 14.6%, newspapers at 7.1% and radio last at 4.5%. Data sourced from AdAge.com; additional content by WARC staff , 09 May 2008 Print | Email | Add to Folder Related News StoriesUS Broadcast TV, Online Publishers Report Q3 Adspend Hike - Nov 24, 03 Stateside Ad Bureau Forecasts 2004 TV Revenue Surge - Sep 8, 03 Q2 Rise in US Broadcast TV Spend - Aug 22, 03 UNILEVER BOOSTS SALES DESPITE 'CHALLENGING CONDITIONS'  LONDON: Anglo-Dutch consumer goods giant Unilever reports solid sales in the first quarter of this year, with the likelihood of continued growth throughout 2008. The owner of brands such as Surf washing powder and Lipton tea says underlying sales for the January-March period rose 7.2% to €9.57 billion ($14.67; £7.49bn). Operating profits climbed 39% to €1.81bn during Q1. In addition, the company increased its marketing spend in line with the upward sales trend. Unilever says it has offset rising commodity costs by increasing the prices of its products, especially in developing markets. In Africa, for example, it increased prices by 6.3% and volume sales rose 7.5%. In Europe, on the other hand, prices rose 2.5% while volume fell slightly. Ceo Patrick Cescau said the group was continuing to invest in its brands "while taking the necessary pricing action to recover a sharp increase in commodity costs". He added that the business was "well placed to deliver competitive growth with an underlying improvement in operating margin in 2008, despite challenging conditions". Data sourced from Financial Times Online; additional content by WARC staff , 09 May 2008 Print | Email | Add to Folder Related News StoriesUnilever's 'Sex Symbol' Ads Faze Chinese Censors - Mar 17, 08 Unilever Senior Management Mutates - Feb 29, 08 Unilever Unveils Q4 Results - Feb 8, 08 THE SHAPE OF THINGS TO COME? UK REGULATOR SHARES FUTURE VISION  LONDON: "I have seen the future and it works," wrote US journalist Lincoln Steffens in 1921. Unfortunately, he was referring to Soviet communism and is not now remembered for his prophetic accuracy. UK communications regulator Ofcom, is likewise taking a flier on the future. The watchdog, responsible to the government's Department for Culture, Media and Sport, has spent what is almost certainly a sizable chunk of public money on crystal-ballgazing. The result is Tomorrow's Wireless World, a 114-page tome that might tempt cynics to dismiss it as a classic exercise in digging a hole solely to fill it. Ofcom's 2008 technology research report published Wednesday exudes a Wellsian sense of awe at the treats in store … new technology in cars to help avoid collisions; wireless devices to remind patients to take medication; wireless food content scanners to change the way we shop ... The conquest of Shakespeare's Sceptred Isle by wireless technology is so "integral to our lives", reports the regulator, that there are currently more mobile subscriptions (70 million) than the 60 million UK population The report justifies its use of public money by emphasizing Ofcom's responsibility to ensure the most efficient use of the UK's radio frequencies used by such services. According to chief technology officer Peter Ingram: "This report demonstrates the many creative ways the radio spectrum can be used for the benefit of UK citizens and consumers." His colleague Professor William Webb, head of research and development, concurs: "Our lives continue to be transformed by developments in wireless technology. "Ofcom's research and development report highlights how a range of innovative new technologies could enhance transport and healthcare. It helps Ofcom plan for future spectrum use to benefit citizens and consumers". The full report can be accessed by clicking here. Data sourced from Ofcom (UK); additional content by WARC staff, 09 May 2008 Print | Email | Add to Folder Related News StoriesITV Hit With Record £6m Phone-In Fine - May 9, 08 Ofcom Prepares Record Fine for ITV Phone-in Scams - Apr 30, 08 UK Trad Media Unzip Wallets for Online Splurge - Apr 15, 08 WORLD ECONOMIC BALANCE OF POWER SET TO SHIFT, PREDICTS BARCLAYS BANK  LONDON: Barclays Wealth, the upmarket arm of the UK-headquartered banking giant, has published its latest Household Wealth Index, compiled by the Economist Intelligence Unit. Given the causal factors of the present global credit crisis, it might be thought that banks are the last prophets to whom anyone of sound mind should listen. Be that as it may, Barclays predicts that an economic sea-change is already under way. Global wealth distribution, the report foretells, will undergo a seismic shift in favour of developing economies over the next ten years. Current ways of thinking about wealth distribution will become outmoded, believes BW head of research Michael Dicks. "By 2017 China, Russia, Brazil and India will overtake some of the world's most developed countries, and this suggests that it is no longer accurate to label these markets as 'emerging' and 'developing' economies," he says. The changes will be driven by the rise of market economies along with globalisation, technological and demographic change, and a growing thirst for commodities. By Barclays' yardstick year of 2017, China is predicted to move from seventh to third in the world wealth rankings, elbowing the UK into fourth place. Also by that date, the planet's second fastest-growing economy, India, is expected to join the top ten wealth elite. And as a measure of its success the world's largest democracy will by then boast over four million dollar millionaires. Data sourced from multiple origins; additional content by WARC staff , 09 May 2008 Print | Email | Add to Folder Related News StoriesChina's Economic Upsurge to 'Cushion' Global Slump: World Bank - Jan 10, 08 UK Banking Giant Nets US Basketball Deal - Jan 22, 07 World Bank Warns of Global Economic Slowdown - Apr 8, 05 ITV HIT WITH RECORD £6M PHONE-IN FINE  LONDON: UK communications regulator Ofcom has imposed a £6 million ($11.73m; €7.6m) fine on the nation's largest commercial broadcaster ITV, citing "grave and repeated irregularities" with regard to its conduct of premium-rate phone-in programmes. In addition, the Serious Fraud Office is considering whether to launch a full inquiry into a series of competition shows in which viewers were urged to vote via premium-rate telephone services unaware that they had little or no chance of winning. Notable among the fingered programmes was the popular Saturday Night Takeaway show hosted by alleged comedy pairing Anthony McPartlin and Declan Donnelly. According to Ofcom, there had been an "institutionalised failure within ITV that enabled the broadcaster to make money from misconduct on mass audience". Data sourced from Financial Times; additional content by WARC staff , 09 May 2008 Print | Email | Add to Folder Related News StoriesThe Shape of Things to Come? UK Regulator Shares Future Vision - May 9, 08 Ofcom Prepares Record Fine for ITV Phone-in Scams - Apr 30, 08 ITV Share Price Sags to New Low - Apr 16, 08 GATES SIGNALS POST-YAHOO GO-IT-ALONE WEB STRATEGY  TOKYO: In the wake of its failed bid for Yahoo, Microsoft has no immediate plans to advance its online presence via acquisitions or alliances. So says soon-to-retire chairman Bill Gates as he pursues his valedictory tour of the software titan's Far Eastern empire. "Now at this point Microsoft is focused on its independent strategy," Gates told reporters at a news conference in Tokyo – a statement seeming at odds with his remarks on Tuesday in South Korea when he said the company wasn't ruling out alternative partnerships. Microsoft intends make "advances" in its own search offering, assured Gates, referring to brainstorming sessions in Seattle intended to forge tangible and specific plans. Plans for what, wondered his audience? "We will make the advances that give people a great choice there," came the reply, giving rise to speculation that impending retirement may have addled the tycoon's legendary specificity. Data sourced from Business Week / Associated Press; additional content by WARC staff, 09 May 2008 Print | Email | Add to Folder Related News StoriesYahoo Expects Fallout after Microsoft Walks Away - May 5, 08 Microsoft Reveals Income Fall, Sounds Warning About Yahoo - Apr 28, 08 Solid Results Strengthen Yahoo Resolve - Apr 24, 08 ALIBABA MAKES GAINS IN INDIA  HANGZHOU: Chinese business-to-business website Alibaba.com reported a first quarter doubling in profits to 301 million yuan ($43m; €27.8m; £22m), compared with the year earlier period. Sales rose 53% to 680m yuan after it added 36% more users. The company, which connects 30 million businesses, is expanding its footprint in India, following the launch last October of a site dedicated to sub-continent users – a joint venture with Yellow Pages firm Infomedia. Alibaba claims to be among the top three online marketplaces in India through its focus on SMEs, which it says make up 40% of the nation's industrial output. In addition, it is preparing for the launch of its Japanese website to help Chinese exporters win orders in Japan. Data sourced from Financial Times Online; additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder Related News StoriesAlibaba Explores Yahoo Buy-Out - Mar 20, 08 China's Alibaba Sets Up Ad Exchange - Nov 22, 07 Leaner China Yahoo Launches Search Market Attack - Nov 14, 05 UK TV BROADCASTERS LAUNCH FREESAT  LONDON: UK broadcasting rivals, the publicly-funded BBC and commercial giant ITV, have united to launch a new free-to-view satellite television service which promises more than 80 channels. The Freesat service, available for a one-off payment of £49.99 ($97.84; €63.49), will be receivable in rural areas not covered by the hugely popular digital terrestrial Freeview platform. Freesat is expected reach 98% of the population, even to those who are unable to receive DTV through an aerial. It will also offer high definition programming, which is currently available only to pay-TV subscribers at BSkyB and Virgin Media. Freeview plans to carry HD channels from 2009 or 2010. Data sourced from Brand Republic (UK); additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder Related News StoriesDigital TV Now Installed in 88% of All UK Homes - Mar 31, 08 Digital TV Now in 85% of UK Homes - Sep 24, 07 DTV Households Break 80% Barrier in UK - Jun 21, 07 AMERICA'S WIMAX TECHNOLOGY GETS $3.2BN BOOST  NEW YORK: An alliance of US cable providers, web firms and microchip-makers is to invest around $3.2 billion (€2.07bn; £1.6bn) in a company that will deliver ultrafast wireless internet service. The Clearwire venture, which includes Comcast, Time Warner, Google, Intel and Sprint Nextel, will use the latter's WiMax technology to build a network that will provide mobile web access to up to 140 million US customers. Data sourced from Wall Street Journal Online; additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder Related News StoriesUS High-Speed Internet Use Soars 34% to 37.9m Lines - Jul 11, 05 UK MAIL SHAKE-UP FAILS TO DELIVER  LONDON: A government report has found that the liberalisation of the UK's postal market has brought little benefit to smaller businesses or domestic customers.British post services were fully opened up to competition in 2006 under the supervision of regulator Postcomm since when, says the review panel, competition in the lucrative collecting, sorting and transporting of bulk mail (before it is handed over to the Royal Mail for street delivery) has expanded rapidly. Large companies have enjoyed more choice, lower prices and more assurance about quality. However, there has been a distinct lack of interest in competing with the RM's delivery service – the final mile - which struggles to make a profit. Households and small firms have had to put up with the scrapping of Sunday collections, the move to single daily deliveries and increased postage costs based on complicated weight and size criteria. The preliminary findings of the panel, set up by the Department for Business, Enterprise and Regulatory Reform, conclude that liberalisation is now a threat to RM's financial security and to its ability to provide a universal postal service. Changes are needed "to establish how best to create the incentives for Royal Mail to modernise its operation, providing a stable financial future". Data sourced from BBC Online; additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder Related News StoriesUK Direct Mail Industry Braces for Postal Strike Action - Jun 11, 07 Top UK Politicos Open Door to Privatization of Royal Mail - May 16, 06 UK's Royal Mail Rounds on Regulator Over Price Caps - Jun 3, 05 EU RATTLES LEGAL SABRE AT SPANISH AD EXCESSES  BRUSSELS: The European Commission has delivered an ultimatum to the Spanish government demanding that it swiftly reins-in television broadcasters who, the EC claims, flout advertising rules. EU commissioners say the twelve minutes per hour of ads and teleshopping is exceeded "regularly and by some margin" both by public and private TV companies. Media commissioner Viviane Reding has now threatened to take Spain to the EU Court of Justice unless there is "urgent" action in the next two months. She says that any other response would be interpreted as a lack of respect for the viewers and citizens. Brussels has been complaining about TV ad levels in Spain since last July. Meantime, Belgian authorities have been given a second warning for poor implementation in the Brussels region of "must carry" rules that require networks to air specified radio and TV channels and services. Data sourced from multiple sources; additional content by WARC staff, 08 May 2008 Print | Email | Add to Folder Related News StoriesEC Watchdogs to Investigate Channel 4 Handout - Apr 4, 08 Microsoft Brings Ads To US Shopping Carts - Jan 16, 08 Microsoft Braced for Next EC Antitrust Probe - Dec 17, 07 US, EUROPEAN AUTOMAKERS INCENTIVIZE SALES VIA FREE FUEL  LONDON: The battle to boost sluggish sales of new cars took a sharp promotional turn this week as both Fiat (in the UK) and Chrysler on the opposite side of the Atlantic offered cut-price gasoline deals to buyers. In Britain Fiat is enticing buyers of its Grande Punto supermini with a payment-free period of nine months plus fuel to the value of £1,000 ($1975; €1270). While on Wednesday Chrysler launched its Let's Refuel America promo campaign, promising a below-pump price of $2.99 per gallon for buyers of eligible Jeep, Dodge and Chrysler vehicles. The deal holds good for three years via a 'gas card' linked to customers' charge accounts. The promo follows consultation with the automaker's newly formed customer advisory board, 76% of whom declared themselves "very concerned" or "extremely concerned" about fuel prices. Chrysler says its simple and unambiguous offer aims at "breaking through the clutter" of competing auto offers - and it may well have succeeded, according to Tom Libby, senior director of industry analysis at auto consultancy JD Power and Associates. "It's pretty rare,” says Libby. "It's a way of standing out and addressing an issue that is seen as slowing new vehicle sales." US and European manufacturers are not alone in their slashfest, with Honda and Toyota also falling prey to Freddie Kruger-like tendencies. The former upped its average cash incentives during April by 17% from $1,231 to $1,439; the latter by just 3.6%. Even the magisterial BMW is not immune to the car sales slump in Europe. The firm, which offers some of the sector's most generous leasing deals, "has been over-using its captive finance, at least for current credit conditions," in the opinion of Citibank analyst John Lawson. Data sourced from Financial Times; additional content by WARC staff, 08 May 2008 Print | Email | Add to Folder MEDIA MAMMOTHS LINE-UP TO INVEST IN AD TECHNOLOGY FLEDGLING  LOS ANGELES: The latest round of funding for ad-creation technology pioneer Spot Runner, founded here just two years ago, underscores the company's new focus on international markets. Joining eager investors of the ilk of WPP Group, Interpublic Group, CBS and Lachlan Murdoch is the UK's Daily Mail and General Trust, Mexican media mammoth Televisa, and French luxury goods conglomerate Groupe Arnault/LVMH. Initially targeting small local businesses such as stores and restaurants, Spot Runner's software enables access to TV advertising at affordable rates, allowing small firms to create 30-second commercials of professional standard for as little as $500 each. It also facilitates the airing of those commercials in local markets – an ability that has attracted the media mammoths, who are equally eager to exploit targeted localisation. In certain cases local targeting can be narrowed to as few as five hundred homes, while advertising content can be tailored on a city-by-city basis – an opportunity recently exploited by Warner Independent Pictures to promote the limited release of the movie The Painted Veil. The latest round of funding will enable Spot Runner to extend its offering beyond TV to internet and radio advertising. Says the company's ceo, Nick Grouf: "This further accelerates our momentum as we expand into a broader spectrum of online and offline media, both domestically and abroad." Data sourced from Financial Times; additional content by WARC staff, 08 May 2008 Print | Email | Add to Folder Related News StoriesAd Giants Back Web-based Agency - Oct 31, 06 SORRELL ENJOYS 8% PAY RISE FOR 2007  LONDON: "If you've got it, flaunt it," enviously yelled failed Broadway impresario Max Bialystock at a Rolls-Royce owner in Mel Brooks' 1968 movie classic The Producers. The famously diffident Sir Martin Sorrell, of course, needs no such advice. According to WPP Group's annual report for 2007, ceo Sorrell staggered home under the weight of £3.57 million ($7.05m; €4.53m) last year, up 8% on his £3.29m pittance in 2006. The report also reveals that as at April 24 this year Sir Martin also held a total of 16,555,181 WPP shares, worth around £104m at today's value. Others at WPP sharing in the bounty were strategy director Mark Read and chairman Philip Lader. The former garnered 12% more than in 2006, his remuneration up from £646,000 to £722,000; while the latter was awarded a 47% pay hike from £213,000 to £313,000, purportedly his first increase since 2001. Among the less fortunate executives was finance director Paul Richardson, who saw his pay decline marginally from £1.61m to £1.6m. He is not reported to be receiving counselling. Data sourced from MediaGuardian.co.uk; additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder UK CONSUMER CONFIDENCE AT FOUR-YEAR NADIR  LONDON: Major UK mortgage lender Nationwide reported Wednesday that its monthly consumer confidence index fell in April to its lowest point since its launch in May 2004. The index fell by seven points (22% year-on-year) to a reading of seventy. Nearly half of all respondents said they believed the economy will worsen further in six months time – twice the level of pessimism registered this time last year. Moreover, consumers expect house prices to fall by a further 1.7% between May and the end of October – pessimism that has led to concerns about employment prospects. Comments Nationwide chief economist Finonnuala Earley: "The cut in interest rates in April did little to lift consumer spirits. Food and fuel prices remain high and, with house prices no longer rising, it is unlikely that consumer confidence will pick up very quickly. "We may have to accept that confidence levels could well worsen before they get better. This is especially true as inflationary pressures mean the MPC [the Bank of England's Monetary Policy Committee] will probably prefer to cut rates at a more gradual pace than many would prefer." Data sourced from The Times (UK); additional content by WARC staff , 08 May 2008 Print | Email | Add to Folder Related News StoriesUK Consumer Confidence Plunges to Thirteen Year Low - Feb 29, 08 Brits Brood Over Sagging Economy - Feb 21, 08 UK Consumers Paint Gloomy Economy Picture - Jan 2, 06 NBC PLANS SUPER BOWL AD HIKES  NEW YORK: US television network NBC Universal is planning to ratchet-up the price of a 30-second commercial during next year's Super Bowl extravaganza to $3 million (€1.9m; £1.5m). The increase of more than 10% is around double the usual annual rise but NBC believes advertisers will pay the asking price thanks to record ratings for the 2008 game. Super Bowl is one of the few events which can attract mass viewing and companies will pay a premium to reach that audience, argues NBC. And says marketing professor Chuck Tomkovick: "It's a way for a company to say, 'We're a player'." Data sourced from Wall Street Journal Online; additional content by WARC staff , 07 May 2008 Print | Email | Add to Folder Related News StoriesNBC Highflier Comstock Returns to the Corporate Womb - Mar 5, 08 NBC Ditches 'Upfronts' Ad SalesFest - Feb 21, 08 Hollywood Writers to Reopen Their Laptops - Feb 11, 08 HAVAS MEDIA ACQUIRES UK AGENCY  LONDON: Havas Media has acquired integrated creative agency Archibald Ingall Stretton as part of the French-headquartered group's investment strategy in the UK. Havas already owns 40% of AIS, with which it plans to launch a global integrated network in Europe, North America, Latin America, Australia and Asia. AIS, whose clients include Skoda, O2, Dyson, EDF Energy, Pioneer and Abbey, was founded in 1998 and now has more than £50 million ($98m; €63m) in billings. Data sourced from Havas; additional content by WARC staff , 07 May 2008 Print | Email | Add to Folder Related News Stories'Face-Up to Climate Change', Consumers Tell Brands - May 12, 08 New Commercial Chief for Havas Media - Dec 4, 06 SHOPPERS SEEK SAVINGS VIA ONLINE 'COUPONS' NEW YORK: Cash-strapped US consumers, trying to cope with credit crunches and cost-of-living rises, are increasingly avid for discount coupons. Although clipping the vouchers from newspapers and magazines still has its place, online researcher comScore says the web is becoming increasingly important as a source of money-off deals. Its latest data show page views on websites that carry coupons soaring 38%, to 281 million, during March, compared with the year earlier period. Traffic for the web in general increased five percent. ComScore says visitors spent a total of 145 million minutes on the sites, a 37% increase, with existing coupon hunters becoming more active. The Coupons.com site says visits increased 35% in the first quarter. Quarterly growth usually averages 22% to 23%, says ceo Steven Boal. Similarly, RetailMeNot.com says its growth for February, which typically slows after the holiday season, was back at December levels. Comments founder Guy King: "There is definitely an increased use of coupons across the board." The other side of the coin is that retailers are making more coupons available as they see consumers keeping a tighter grip on their purses. Declares Boal: "Coupons move products off the shelf. That is their No. 1 job." Data sourced from Business Week (online); additional content by WARC staff , 07 May 2008 Print | Email | Add to Folder YAHOO INVESTORS MAKE LIFE UNCOMFORTABLE FOR YANG AND CO  SUNNYVALE, California: Yahoo shareholders' fury appears to know no bounds following the decision by the company co-founder/ceo Jerry Yang not to accept Microsoft's sweetened offer and the software giant's subsequent withdrawal from further negotiations. Many investors claim they would have been happy to accept the circa $33 (€21.29; £16.76) per share Microsoft was offering. They want to know why Yahoo appeared unwilling to bridge the gap with its own valuation of $37 a share. A number of investment mangers say shareholders are "pretty irate" and demanding that the struggling online search pioneer should "reopen the dialogue". Other investors could be preparing to stage a mutiny at the annual meeting, scheduled for July 15, when directors' seats on the board are looking somewhat shaky. Yang and fellow co-founder David Filo have been criticized for personally conducting negotiations with Microsoft. Some investors believe they are less than 100% committed to a sale of the company they created. These charges are robustly denied by Yang, who says: "There should be no question about our willingness to sell . . . We as a company and I personally have always been open to a deal with Microsoft and I hope that the last few days it was clear that we have shown we're willing to do a deal with Microsoft but that we couldn't get to an agreement on price." Data sourced from Wall Street Journal Online; additional content by WARC staff , 07 May 2008 Print | Email | Add to Folder Related News StoriesGoogle Mulls a Yahoo Future - May 12, 08 Yahoo Expects Fallout after Microsoft Walks Away - May 5, 08 Yahoo Awaits Microsoft's Next Move - Apr 29, 08 SORRELL THREATENS TO RELOCATE WPP HQ OUTSIDE UK  LONDON: Canny accountant and unblinking poker-player, WPP Group ceo Sir Martin Sorrell (pictured) has out-stared many a muscular opponent in his day. The British government, by comparison, is easy prey. Especially when the battleground is corporate taxation, a subject in which Sorrell graduated with cum laude honours whilst still gurgling in his high chair. The adland knight is less than happy at the UK government's latest tax proposals that, if implemented, would require UK-headquartered companies to pay taxes on dividends earned overseas – a move that would see WPP's current annual tax bill of £200 million ($393.58m; €254.07m) rise by "very, very significant sums of money". A noted exponent of stick and carrot negotiations, Sir Martin first employed the former. "If the measures [as they stand] are introduced, ratified, confirmed and implemented, we will be taking a very serious look at the advantages and disadvantages [of moving WPP's tax domicile and headquarters offshore]," he told the BBC. Then the carrot. Such a move would abroad have to be balanced against other factors such as its potential impact on the company's image, Sorrell conceded. He has already made his feelings known via the Multinational Chairmen's Group, whose members include some of the world's most powerful companies and which recently met with prime minister Brown and chancellor Darling to voice similar concerns. The political duo argue that another new proposal – to exempt companies' foreign dividends from taxation – should make the changes "broadly revenue neutral" overall. This seems to have had a mollifying effect on Sir Martin who declared it to be "good to see the government taking it seriously" by setting-up a task force to examine the issue. The velvet glove was then removed: "But I do hope we will get some action [otherwise] I think the proposals will lead to the exodus of a number of multinationals. I have been surprised by the number of our clients and non-clients who are considering this action." Such an exodus could have profound long term effects, Sorrell warned. "It will be a dent in the image of London as a financial centre. This is another issue that will make London less competitive and, given the rise of the East, will become more and more important." Data sourced from BBC Online (UK); additional content by WARC staff, 07 May 2008 Print | Email | Add to Folder Related News StoriesTNS Rejects WPP To Pursue GfK Merger - May 6, 08 WPP Registers Revenue Rise - Apr 28, 08 MindShare Plans Major Reorganisation - Apr 21, 08 BRANDS: NZ RESEARCHER INVESTIGATES HATES ALONGSIDE LOVE  AUCKLAND: According to Auckland University marketing lecturer Dr Mike Lee, most market researchers study only people with positive attitudes toward brands – a practice he likens to medical science examining only healthy people. Lee, who has spent five years studying people's reasons for avoiding brands, this week published a doctoral thesis, Brands We Love to Hate: An Exploration of Brand Avoidance. The study itemises four main reasons for eschewing brands:
Personal reasons were driven by selfish considerations, like a bad past experience, while bigger picture reasons were more altruistic. "People might pay more to buy something from a dairy because of the perceived impact on the local economy." But there is one thing all respondents had in common. "Everyone had some brands that they felt negatively about." Not all reasons for avoiding brands were logical. Dr Lee found some people avoided low-cost local brands like No Frills and Home Brand because they looked "icky" - whether or not they thought there was any difference in quality. "I had some interesting conversations with participants where they would say, 'I know it's not the quality but I just like the packaging to look nice'," he said. "They think if people look through their pantry and see all this see all this cheap stuff they might make an inference about the person." There were few surprises among the 'most hated' brands. "A lot of them, as you would expect, were big multinational brands like McDonalds, Coke and some of the big petroleum companies." But what did surprise him were some of the reasons. They included poor product experiences, a perception the store environment was too family-oriented and a dislike of the "very sterile" environment - "a whole lot of reasons that don't tie into the multinational thing". Ironically, Lee found that brands with a more varied public image could be giving people more reasons to avoid them. The study was essentially small scale, with just twenty-three in-depth interviews, part of Dr Lee's creation of an academic network, the International Centre for Anti-Consumption Research, at the University of Auckland Business School. Data sourced from nzherald.co.nz; additional content by WARC staff, 07 May 2008 Print | Email | Add to Folder Related News StoriesNZ TV Bosses Unite Against 'Junk' Food Ad Laws - May 5, 08 Kiwi Parents Favour Junk Food Ads Ban - Feb 20, 08 Logos at Dawn: Auckland City vs Broadcaster - Oct 31, 07 TV AND ONLINE COMBO CLAIMED TO UP BRAND PERCEPTION BY 50%  LONDON: Research funded by UK TV industry body Thinkbox and the Internet Advertising Bureau claims that campaigns combining the [hitherto] rival media can deliver up to 50% increase in positive brand perception, plus a "significant increase" in purchase probability. The joint survey concludes that using TV and online together in ad campaigns is significantly more effective for advertisers than using either in isolation. Combined use, claim the study's proponents, produces major benefits for advertisers. The research focuses specifically on 'digital consumers' – those owning a digital TV set and who use broadband internet - and are medium to heavy users of each. Because the study focuses on the most 'tech-savvy' of the UK population – around 25% of the total – the survey's results are claimed to provide an indication of how future media consumption and consumer behaviour may develop. In terms of their precise media usage, 64% of the sample stated that they "sometimes watch TV while using the internet", whilst 48% stated that they did this "most days". Other of the study's key findings ...
Comments Thinkbox ceo Tess Alps: "The whole is greater than the sum of the parts. TV benefits from the way online offers a means of expressing and exploring the desires and motivation TV creates. "Online usage is not displacing TV viewing and it is time to celebrate the complementarity of these two most powerful digital media." Data sourced from Thinkbox; additional content by WARC staff , 07 May 2008 Print | Email | Add to Folder Related News StoriesUK TV Marketers Take Comfort from Audience Data - Apr 23, 08 UK Online Ad Revenues Predicted to Overtake TV in 2009 - Apr 9, 08 UK Viewers Watching More TV, say Marketers - Jul 4, 07 TOP TIER UPHEAVAL AT UK'S SMALLEST NATIONAL CHANNEL  LONDON: Sweetness and light is not in abundance at at RTL Group's UK outpost, commercial channel Five, following the resignation of ceo Jane Lighting – who decamped after the appointment over her head as chairman of Dawn Airey (pictured).Airey, former programming supremo during Five's early years, is currently ITV managing director of global content. Hard on the heels of her departed boss, Five's managing director of content Lisa Opie also spun through the rapidly-revolving door of the channel's departure lounge. Amid the ritual exchange of hissed eulogies RTL ceo Gerhard Zeiler declared: "We have a great programme team and they have delivered good results during the first part of the year." Opie for her part crooned: "I would like to wish Dawn all the best in her new role - and assure her that she will be inheriting a highly capable team of creative people." Data sourced from MediaGuardian.co.uk; additional content by WARC staff, 07 May 2008 Print | Email | Add to Folder Related News StoriesITV Executive Quits For Rival Five - May 1, 08 UK National TV Channel Five Emerges from the Red - Mar 7, 08 Bertelsmann Takes a Hit from UK TV Phone-In Scandals - Aug 30, 07 MEXICAN ENTERS INM STANDOFF  DUBLIN: Irish newspaper group Independent News and Media, under siege by telecoms billionaire Denis O'Brien, now finds itself an object of interest for Mexican telecoms mogul Carlos Slim who has bought a one percent stake in the business. The company, which publishes UK daily, The Independentand siblingIndependent on Sundayamong others, is led by Sir Anthony O'Reilly, who has been under pressure from O'Brien to sell the loss-making titles. The latter has built a 22% stake in INM over recent months. Analysts believe billionaire Slim's interest in the group may have more to do with striking a blow to O'Brien's ambitions in the Caribbean telecoms market, rather than publishing designs of his own. They expect him to increase his stake in the INM. Data sourced from multiple sources; additional content by WARC staff , 06 May 2008 Print | Email | Add to Folder Related News StoriesIrish Billionaire Shareholder Ups His IN&M Holding - Mar 27, 08 Irish Billionaire Ratchets-up Pressure on O'Reilly - Mar 10, 08 O'Reilly Extends South African Empire With Clear Channel Purchase - Jan 22, 08 EURO TELCOS AND BROADCASTERS AT LOGGERHEADS OVER ANALOGUE AIRWAVES  BRUSSELS: An alliance of Europe's biggest mobile phone operators has called for a quarter of the analogue radio spectrum to be made available to them as the digital switchover progresses across the continent. UK-headquartered Vodafone, Spain's Telefonica and France Telecom's Orangewant to use the radio spectrum for wireless broadband services such as e-mail and fast web surfing on mobile phones. They are heading for a clash with broadcasters, who themselves want to hold on to the analogue spectrum for new services such as high definition television. The European Broadcasting Union says the mobile operators' demands for a quarter of the spectrum were "a bit high". Said a spokesman for the lobbyists: "Some of the telecoms operators' assumptions are very optimistic and underestimate the amount of spectrum required for broadcasting which needs to meet audiences' expectations in the future." European governments are expecting to raise substantial amounts of revenue when the spectrum is auctioned off. Declares Vodafone director of public policy Richard Feasey: "This spectrum is some of the most important to be released in the last 20 years and will be critical to Vodafone's plans to deploy mobile broadband services in Europe on a truly universal basis." Data sourced from Financial Times Online; additional content by WARC staff , 06 May 2008 Print | Email | Add to Folder Related News StoriesEuropean Digital TV Growth Set to Outpace Broadband - Jan 26, 06 Likely Delay in European Digital TV Switchover - Jul 29, 05 UK HEADS EUROPE'S ONLINE SOCIAL NETWORKING DRIVE  LONDON: A new report claims the UK has the highest numbers of online social networkers in Europe, and those figures are expected to triple to 27 million within four years. Market analyst Datamonitor forecasts almost half of all Britons across all age groups will belong to websites such as Facebook or MySpace by 2012, driven by UK consumers' willingness to embrace new technologies. The ability to socialise from the comfort of one's own PC and a fondness for user-generated content are also factors for strong growth, says Datamonitor. France is second in the social networking league with 8.9m users, likely to rise to 21.3m by 2012. Germany lies third with 8.6m users, expected to increase to 21.7m by 2012. Overall the numbers of Europe's social networkers are expected to double to 107.4m by 2012. Comments Datamonitor analyst Matthew Taylor: "Consumers are creating and joining existing social communities which, if harnessed correctly, can be an important marketing tool. "The wealth of information stored on online social networks provides many potential benefits for marketers." Data sourced from Brand Republic (UK); additional content by WARC staff , 06 May 2008 Print | Email | Add to Folder Related News StoriesUK Lags US in Exploitation of Social Networking Media - Or Does It? - Mar 4, 08 Marketers Slam Agencies for Social Marketing Torpor - Mar 3, 08 Facebook Loses UK Friends - Feb 27, 08 TNS REJECTS WPP TO PURSUE GFK MERGER  LONDON: A proposed merger between market research giants Taylor Nelson Sofres and GfK, unveiled last week, has brought forth an expected acquisition bid by advertising conglomerate WPP Group. However, the £948 million ($1.87bn; £1.2bn) offer has been swiftly rejected by the TNS board on the grounds that it undervalues the UK-headquartered company. UK-based WPP has responded by saying: "We think the response is cavalier, given the proposal was made only a day or so ago and offered shareholders a significant premium." The putative merger has also triggered speculation that the world's number one market research firm, The Nielsen Company could make a bid for German-headquartered GfK, but the latter says it has had no approaches. Data sourced from Financial Times Online; additional content by WARC staff , 06 May 2008 Print | Email | Add to Folder Related News StoriesSorrell Threatens to Relocate WPP HQ Outside UK - May 7, 08 TNS and GfK in Merger Talks - Apr 30, 08 WPP Registers Revenue Rise - Apr 28, 08 DIGITAL ADVERTISING BOOSTS 2007 REVENUES  NEW YORK: The growth of digital advertising allowed the industry in the US to grow revenues by 8.6% last year, despite a lackluster market. The 2008 Agency Report from Advertising Age reveals digital services brought in 12.3% of worldwide revenues for a quartet of the biggest global conglomerates - Omnicom Group, WPP Group, Interpublic Group and Publicis Groupe. UK-headquartered WPP reported worldwide digital revenue for its media unit, Group M, climbed 53% to $238 million (€153.6m; £120.6m). It heads the global media agency league. The survey shows that the US revenue growth rate for agencies of all disciplines last year was just below 2006 growth (8.8%). Agency revenue grew 7.2% in 2005 and 8.6% in 2004. AdAge estimates revenue for US advertising, marketing-services and media agencies in 2007 reached $31.1 billion. Marketing-services agencies - direct, promotion, branding, healthcare and public relations as well as digital specialists - accounted for 47.1% of US revenue for marcoms agencies analyzed in the report. The rest came from advertising and media. The top US agency in 2007 was Omnicom's BBDO Worldwide. For more details please click here. Data sourced from AdAge.com; additional content by WARC staff , 06 May 2008 Print | Email | Add to Folder Related News StoriesAd Age Names Nintendo 'Marketer of the Year'; Peers Disagree - Oct 16, 07 Top 100 US Advertisers Reveal Spending - Jun 26, 07 P&G Widens Gap With Unilever as Top Advertiser - Nov 21, 06 UK LISTENERS TUNE INTO DIGITAL RADIO  LONDON: Despite recent debate over its financial viability, it appears UK digital radio is gaining in popularity with listeners. Latest figures from radio audience measurement body RAJAR reveal 31% of listeners now tune in digitally at least once a week, using platforms such as DAB (Digital Audio Broadcast) radios, cable television and online. RAJAR says DAB accounted for 10.8% of all radio listening in the first quarter, up 0.9% on quarter four last year. The debate over the platform's future was enlivened earlier this year when Fru Hazlitt, ceo of GCap Media, announced the struggling radio company was to ditch its remaining digital stations and its share in the national operator Digital One. She described the platform's cost structure and infrastructure as "not economically viable". However, digital radio operators will draw comfort from RAJAR's figures that also show the number of adults aged 15 + who own a DAB set at home increased 5% quarter on quarter, up to 27.3% in Q1. Market researcher GfK also revealed 500,000 DAB radios were sold during Q1, growth of 28% year on year. Comments Andrew Harrison, ceo of commercial radio trade body RadioCentre: "All of this audience data says listeners are voting clearly that DAB is digital's future." Data sourced from mad.co.uk; additional content by WARC staff , 05 May 2008 Print | Email | Add to Folder Related News StoriesBBC, Channel 4 Defend Digital Radio Faith After GCap's Flounce-Out - Feb 13, 08 UK Radio Bosses Demand Digital Timetable - Oct 30, 07 UK Digital Radio Growth Slows - Oct 30, 06 US SODA GIANTS TRIAL BOTTLE SIZES TO LIVEN UP SALES  ATLANTA: US soft drinks giants are revamping bottle sizes to inject more fizz into a declining market where consumers are increasingly making healthier choices. Both the Coca-Cola Company and PepsiCo are testing alternatives to the convenience store staple, the 20-ounce bottle. Data from industry publication Beverage Digest shows overall soda sales declined 3.5% in the first quarter, while convenience store sales dropped 4.2%. It is hoped trials by soft drinks bottlers will bring back consumers who have shunned the bigger sizes because of health concerns or cost issues. Coca-Cola Bottling Consolidated is testing in around 1,700 convenience stores in Virginia where it has replaced 20-ounce bottles with 16-ounce and 24-ounce bottles. The idea, says the firm's marketing chief, Mel Landis, is to offer consumers the same choices they might get in a grocery store. Pepsi Bottling Group is trialling 12-ounce and 16-ounce bottles in some markets. Declares a Pepsi spokesman: "[It] is about giving consumers more choices, and if that leads to more frequent transactions and greater volume, it's also a win for our customers, our bottlers and us." Data sourced from Wall Street Journal Online; additional content by WARC staff , 05 May 2008 Print | Email | Add to Folder Related News StoriesCoke Fired-Up Over Olympic Torch Relay - Apr 21, 08 Red Bull Shakes Up Cola Market - Apr 8, 08 Coke Ups Indian Investment; Plans Another UK Water Launch - Mar 18, 08 NZ TV BOSSES UNITE AGAINST 'JUNK' FOOD AD LAWS  WELLINGTON, NZ: Rival Kiwi television executives have come together to lobby lawmakers over proposals to legislate against 'junk' food and drink advertising. They believe they stand to lose around NZ$36 million ($28m; €18m; £14m) a year in ad income if the Public Health Bill is passed as part of the government's effort to stem the rising tide of childhood obesity. The TV chiefs also claim the new regulations could threaten the airing of popular shows such as The Simpsons and UKsoap opera import Coronation Street, in which characters do not always make healthy lifestyle choices. Broadcasting executives, including Television New Zealand's ceo Rick Ellis and MediaWorks' Brent Impey, argue the proposed powers are at odds with self-regulation, especially when the Government has fostered that process and it is working well. Impey says children aged between five and 14 were currently potentially exposed to only 67 seconds a day of advertising of inappropriate foods, based on their average viewing time of 44 minutes from 3pm to 8.30pm. He also asserts that research has shown TV commercials have little influence on children's food choices. Ellis says TVNZ would lose NZ$20 million per year if the legislation is introduced, with a knock-on effect on the state broadcaster's ability to finance local content. Health campaigners in New Zealand insist, however, new laws are necessary because self-regulation is not working. Declares emeritus professor Robert Beaglehole, formerly of the World Health Organisation: "[Self-regulation] is demonstrably not working because our children in particular are at great risk of obesity. "We agree that self-regulation works for the industry. We want it to work for children and, if it doesn't, for regulation to be brought into play." Data sourced from nzherald.co.nz; additional content by WARC staff, 05 May 2008 Print | Email | Add to Folder Related News StoriesBrands: NZ Researcher Investigates Hates Alongside Love - May 7, 08 Kiwi Parents Favour Junk Food Ads Ban - Feb 20, 08 Logos at Dawn: Auckland City vs Broadcaster - Oct 31, 07 YAHOO EXPECTS FALLOUT AFTER MICROSOFT WALKS AWAY  SUNNYVALE, California: Yahoo investors are up in arms following Microsoft's withdrawal of its $47.5 billion (€30.7bn; £24bn) offer for the troubled web search pioneer. Co-founder and ceo Jerry Yang (pictured) will now face intense scrutiny over his management of the company after his refusal to accept the sweetened deal, and the software giant's surprise decision to walk away rather than renegotiate. Dissident shareholder Eric Jackson has already said he will urge fellow investors to withhold votes for all of Yahoo's directors at its annual meeting. Thunders Jackson: "Significant value was left on the table." Yang, however, has defended his position saying the unsolicited bid from Microsoft was a distraction. He says the offer greatly undervalued Yahoo and the company could do just as well if it continues to go it alone. He adds: "We will be able to focus all of our energies on executing the most important transition in our history so that we can maximize our potential to the benefit of our shareholders, employees, partners and users." Microsoft, seeking the acquisition of Yahoo to strengthen its challenge to Google's dominance of web search and online advertising, will now have to chart a different course - which as yet remains unclear. Nonetheless, ceo Steve Ballmer told the company's employees: "Although the acquisition of Yahoo would have accelerated our ability to deliver on our strategy in advertising and online services, I remain confident that we can achieve our goals without Yahoo." Data sourced from BBC Online; additional content by WARC staff , 05 May 2008 Print | Email | Add to Folder Related News StoriesGoogle Mulls a Yahoo Future - May 12, 08 Gates Signals Post-Yahoo Go-It-Alone Web Strategy - May 9, 08 Yahoo Investors Make life Uncomfortable for Yang and Co - May 7, 08 |   HeadlinesMay 9, 2008NewsCorp Still Open to MySpace Talks Television Stakes Claim for US Adults' Time Unilever Boosts Sales Despite 'Challenging Conditions' The Shape of Things to Come? UK Regulator Shares Future Vision World Economic Balance of Power Set to Shift, Predicts Barclays Bank ITV Hit With Record £6m Phone-In Fine Gates Signals Post-Yahoo Go-It-Alone Web Strategy  May 8, 2008 Alibaba Makes Gains in India UK TV Broadcasters Launch Freesat America's WiMax Technology Gets $3.2bn Boost UK Mail Shake-up Fails to Deliver EU Rattles Legal Sabre At Spanish Ad Excesses US, European Automakers Incentivize Sales Via Free Fuel Media Mammoths Line-Up to Invest in Ad Technology Fledgling Sorrell Enjoys 8% Pay Rise for 2007 UK Consumer Confidence at Four-Year Nadir May 7, 2008 NBC Plans Super Bowl Ad Hikes Havas Media Acquires UK Agency Shoppers Seek Savings Via Online 'Coupons' Yahoo Investors Make life Uncomfortable for Yang and Co Sorrell Threatens to Relocate WPP HQ Outside UK Brands: NZ Researcher Investigates Hates Alongside Love TV and Online Combo Claimed to Up Brand Perception by 50% Top Tier Upheaval at UK's Smallest National Channel May 6, 2008 Mexican Enters INM Standoff Euro Telcos and Broadcasters at Loggerheads over Analogue Airwaves UK Heads Europe's Online Social Networking Drive TNS Rejects WPP To Pursue GfK Merger Digital Advertising Boosts 2007 Revenues May 5, 2008 UK Listeners Tune into Digital Radio US Soda Giants Trial Bottle Sizes to Liven up Sales NZ TV Bosses Unite Against 'Junk' Food Ad Laws Yahoo Expects Fallout after Microsoft Walks Away   |
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