Newspapers: The New Endangered Species
By | June 4, 2009
Currently 21 newspapers are on a steady decline. After 20 years only four publications have increased their paid circulation. Two are national papers with well known marketing hooks: USA Today and the Wall Street Journal. The New York Post and Arizona Republic are also up around nine percent.
An explanation of growth. Much of Arizona’s growth can be attributed to the population growth. Look closely at the numbers and you’ll see in recent years circulation had slipped. But looking at the Arizona Republic today and you’ll find that it is working on the circulation numbers as hard as it can. Keeping those numbers up just isn’t as easy as it used to be.
It’s all about the Sunday edition. Papers focus their efforts on the Sunday edition – which is where the majority of ad revenue comes from.
“Every Sunday in the paper, in this Super Sunday timeframe that we’ve been working on, we’ve made it special – to give the customer something different, whether it’s a special package from the news content side, or whether is was a special promotion we worked on with an advertiser,” said John Zidich, president and publisher of the Arizona Republic.
“Were basically looking at the cost-analysis of every unit of circulation.”
So the Republic has managed to squeeze out a narrow circulation increase as other publications continue to struggle.
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Belt Tightening Boomers Could Affect Consumption for Everyone
By | May 3, 2009
These economic conditions are new (and scary, too) for most Americans who have no real memories of the Great Depression.
For the last quarter of a century, America and Americans have not experienced significant financial hardship. When it comes to answering questions about how long or how bad this economic turbulence will be, there are no real answers.
Boomers worry about the future
Confidence in financial institutions has all but withered away. The focus for many is on thrifty consumerism, coupon clipping and cutting back on excess spending. One big segment of the population, the Baby Boomers, are experiencing retirement at a rather precarious time in history. They are wondering whether or not they can actually live off their savings or social security for the rest of their lives.
Survival of the fittest
Many boomers are shifting into survival mode. They are pinching pennies, carefully watching their credit and avoiding unnecessary financial risks at all costs. They are more concerned with preserving the status quo than taking risks for financial gain.
Will these changes be permanent?
Gallup chief economist Dennis Jocobe agrees that “a fundamental change is taking place” in American consumerism.
Right now it’s too early to tell how long it will last. Marketers are challenged by this change toward conservative boomer behavior. They will need to focus on the value of a product and the need of core customers more than ever before. It’s very doable, but it requires a recognition of the reality and a willingness and ability to change approaches to match the reality.
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Indie Publishers: Can Niche Publications Survive the Economy?
By | April 19, 2009
It’s no secret that the 2008 economy was rough on the magazine industry.
Several big chain publications began shutting down titles with no real guarantee of making it in the end. Cottage Living, an At Time, Inc. publication folded, Conde Nast closed down Golf for Women and Men’s Vogue is now a twice-a-year supplement to Vogue rather than being sold as a stand-alone publication. As well, Hearst Magazines said goodbye to the Cosmo Girl, Quick & Simple and O at Home publications.
Why independent publications have it hard
If the big publications have it tough, the smaller, independent publications must really be feeling the heat. And in 2009, indie publications could have a much harder time making it.
“They’re going to have more difficulty than the multitude companies because they don’t have [the resources] to do all the integrated and added value programs for advertisers, and they don’t have as much ability to cut costs,” explained Martin Walker, a magazine consultant.
Times have changed
In more plentiful times, publishing chains or private-equity money could toss a lifeline to these struggling independent publications. But since the credit markets have tightened up, consumer magazine deals fell by 95 percent in dollar value and newspaper deals fell 93 percent according to reports.
No doubt that independent publications serving a narrowly focused audience need to work harder and smarter to be profitable at the same time be flexible, open for negotiation with print media buyers and “make it.” It’s doable, but the playing field has changed.
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Web Video Ad Prices
By admin | March 27, 2009
Even with fourth quarter cut backs on online video ad prices during this troubled economy, prices have managed to remain relatively unaffected.
However, from what we have observed and read, media agencies are playing it safe and realistic when it comes to Internet advertising and ad rates. Online video ads could start feeling the pain just like other advertising media.
If this should happen, there are a few points in its favor that could wind up softening the blow:
Using the online video market to promote business
Experts predict more and more advertisers will start utilizing the online video market within the next few months.
Smaller and new advertisers getting in on the game
Small advertisers will be especially eager to get started because rates are so affordable. They’d be smart to do so as many other marketers may begin to shift toward targeted mediums like web video.
The online video ad business has remained protected because it operates under an inflating shortage that could protect businesses from experiencing a drastic price drop.
Lower rates on the horizon
Advertising, media buying and marketing are all cyclical. We all know that.
And the good news for advertisers is that all signs do point to more inventory and lower rates. Marketing is a process that can never end – and lower rates are always a good thing for those seeking to purchase the advertising space, no matter what the medium.
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DRTV Advertising During an Economic Recession: 1973 Versus 2009
By admin | February 16, 2009
Consumer confidence has been badly shaken, stocks are plummeting and jobs are disappearing fast.
Sound familiar? Sure, this is the state of our economy today, but it also accurately describes the state of the economy back in 1973.
Ad Age shared this statement with its consumers: “Consumer pessimism is more widespread than at any time in the past 25 years, according to the latest consumer survey.
“Now that the crisis is here, there is a sudden frantic effort to visualize its implications…Government and business seem equally unsure. Our clients just don’t know what’s going to happen. We’ve never seen anything like it before.”
An economic crisis is nothing new. While the above statements seem to echo everything that is happening around us today, they actually come from and Ad Age issue back in 1973. During that time, an energy crisis, inflation and a political crisis sent the economy into a tailspin creating a recession that lasted from until 1975.
Then, as now, keeping an eye on the big picture is key.
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Wal-Mart’s Newest Advertising Strategy: An In-Store Ad Network
By admin | January 30, 2009
Wal-Mart has taken an innovative approach to in-store advertising.
The plan is to install an in-store advertising network on 27,000 screens designed to constantly stream video ads from anywhere within the store. In this set-up, the retailer has complete control over managing the ads.
What is the Smart Network? The ad network can easily be altered everyday at the retailer’s discretion. For instance, if it rains, the retailer can adjust the network to broadcast umbrellas and raincoats throughout the many different areas of the store.
Can it really boost sales? There are lingering questions about how effective the Smart Network will be: Will Wal-Mart customers actually spend time watching all of the ads on the screen?
The fact is that most shoppers just want to get inside, get what they need as quickly as possible and then leave the store. Shoppers can experience so many distractions while shopping – talking to their children or talking on the cell phone – that they are unlikely to see every item broadcasted.
This raises the question: Just how effective will the in-store ad network be?
Keeping track of purchasing trends. Traditional advertising utilizes a range of tools which includes metrics of drtv, ratings and engagement metrics. Measuring will be easier with this new network. The Wal-Mart Smart Network can help monitor the store’s cash receipts, and it can tell retailers which ads are generating the most sales.
If a spot runs in one department and the register receipts show an increase in sales from that department within the same time segment, the Wal-Mart ad team will know for sure. Even so, there is no definitive way to know for certain whether the customer watched the ad before buying an item – a shopper could have made a purchase without even seeing the ad display.
The true effectiveness of the new Wal-Mart in-store ad Network remains to be seen.
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Mobile Advertising Edges Out Online Advertising
By admin | October 29, 2008
JumpTap, a leading mobile search and advertising provider, has officially confirmed just how effective mobile advertising can be.
Together with Research and Analysis Media (RAM), the company’s study reveals that mobile advertising is an innovative promotional tool marketers can use for branding, recall and determining purchase rates.
A whole new way to advertise. Results are what matter to advertisers looking for proof that mobile devices can keep them connected to consumers.
In fact, JumpTap mobile advertising is providing new customers with a unique opportunity to participate in ongoing brand research insight just for signing up and participating in mobile advertising campaigns. This way, they can see first-hand how well it works.
How mobile ads affect advertiser recall, intent to purchase. The RAM research study began with a sample group of 300 Swedish Telia SurfPort users testing consumer advertiser recall, purchase intent and mobile advertising quality.
Consumers reviewed ads from EMI, Eurobate, Plutolife (Mobilove) and Discovery Channel Sweden. About one third of the participants were not familiar with these ads prior to the study.
The results:
• The Study revealed JumpTap ads had an average of a 20 percent higher recall rate than comparable mobile ads.
• Mobile users are more likely to continue searching for more information after viewing the JumpTap ads. This includes 10 percent of 16 to 24 year olds and 28 percent of 45 to 79 year olds confirmed that the ads inspired them to continue searching for more information.
• Female mobile users were more likely to make purchases from the JumpTab mobile advertisements than from others. The results included ages 16 to 24 year olds, which was most significant since nine percent of the participants confirmed that they would likely make a purchase compared to zero percent from the other mobile advertising groups.
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Direct Response Television Advertising and Viewer Fragmentation
By admin | September 12, 2008
Television advertising is becoming more challenging for the advertiser looking for the best mix (as far as advertising and media buying) as the industry continues to change and evolve.
Viewership is greatly affected by the growing popularity of satellite and cable TV. Even digital recording devices like TiVo have significantly changed the way people view programming. Viewers can simply watch prerecorded programs whenever they like, how they like (e.g., skipping through all of the commercials).
Successful even in the face of change. For the most part, direct response television advertising (DRTV advertising) manages to be a successful advertising medium despite these challenges.
Special events. However, this year, for instance, there are two additional events (some may say hurdles) that advertisers must deal with: the Olympics and political advertising.
Both of these monumental events/trends threaten to increase the incidence of viewer fragmentation. They will reduce the number of spots available for direct television advertising campaigns.
Good advertising strategy = effective advertising strategy. In response, the smart advertisers will develop an effective advertising strategy, such as blending direct response television advertising (DRTV advertising) with other complementary advertising methods in order to continue effectively promoting and selling their products and services.
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Video and online gaming continue to grow among all age groups
By admin | May 13, 2008
Both video and online gaming continue to grow among all age groups, even seniors. People are spending more time involved in gaming. A new “Online Gaming 2008″ report from the NPD Group finds that 72 percent of the US plays video games, a dramatic increase from the 63 percent who said they played in the previous year, according to Ben Kuchera from ars technica. Most online games are played through a PC, followed by games played through a game console and games played on a cellphone make up only a small share of the marketplace.
I find it interesting to analyze businesses that are thriving during difficult times, since understanding the dynamics of those businesses can often help spur ideas that might improve your business or lead to new product ideas that appeal to consumers in a depressed economic environment. Savvy direct marketers with the right products also have the potential to thrive in this environment, since consumers will be spending more time at home watching TV and online and more DR inventory should become available as general advertisers cut back.
Peter Koeppel is Founder and President of Koeppel Direct, a leader in DRTV direct response television, online, print and radio media buying, marketing and campaign management. With a Wharton MBA and over 25 years of marketing and advertising experience, Peter has helped Fortune 500 companies, small businesses and entrepreneurs develop direct marketing campaigns to increase profits.
Peter started Koeppel Direct in 1995 and has built it into one of the leading infomercial direct response media buying firms in the U.S.
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DRTV Marketing Targeting the Nutraceutical Market
By admin | March 12, 2008
As the use of nutraceutical products increases, so does the amount of nutraceutical product marketers. (By the way, the term nutraceutical refers to a blend of nutrition and pharmaceuticals basically a food or part of a food that offers medical or health benefits.)
In fact, there are currently more than 7,000 health and natural food stores in the U.S. selling one or more nutraceutical products.
Marketers who want to stand out among other retailers in the lucrative and growing nutraceutical market can do so through the use of Direct Response TV (DRTV) advertising. In fact, they are options for DRTV more and more.
Nutraceutical campaigns relay the benefits of nutritional supplement or product through one of the most effective marketing methods available: DRTV. With direct TV advertising, advertisers pass on critical and valuable information to consumers, from information surrounding food extracts to the medicinal effects of certain products to the best supplements on the market today.
Statistically speaking, direct response media buys provide a solid forum for advertisers to present and sell their products. In fact, DRTV as a whole allows the advertiser to specifically target the nutraceutical and weight loss markets, among others.
To learn more about direct response media buys and nutritional supplement marketing, contact your media planner or media buyer.
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