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New China Web-Filtering Rules Still Murky - WSJ.com
New China Web-Filtering Rules Still Murky By GEOFFREY A. FOWLER and BEN WORTHEN Computer makers and researchers are seeking answers to questions about Internet filtering software that the Chinese government is requiring PC manufacturers to ship with computers sold in the country beginning next month. The software -- dubbed "Green Dam-Youth Escort" -- could give governme......

New China Web-Filtering Rules Still Murky

By GEOFFREY A. FOWLER and BEN WORTHEN

Computer makers and researchers are seeking answers to questions about Internet filtering software that the Chinese government is requiring PC manufacturers to ship with computers sold in the country beginning next month.

The software -- dubbed "Green Dam-Youth Escort" -- could give government censors additional control over the information that Chinese Internet users see online.

Though the company that makes Green Dam, China-based Jinhui Computer System Engineering Co., has said it is designed to let parents block access to Web content inappropriate for children, Internet freedom advocates have questioned whether it could be used to block politically sensitive sites, given China's history of censoring Web content.

The software works similarly to models long used by companies that sell security and parental-control software. Such programs come with a "black list" of Web sites that have previously been categorized as pornographic, violent, or containing hate speech, as well as words or combinations of words that appear on such sites. Each time a user tries to visit a Web site the address is checked against the list. When a Web site is blocked, a message will appear saying it contains prohibited content.

Jinhui founder Bryan Zhang says the company compiles the list of sites to be blocked, which he says is limited to pornography. The software also could be used to block other types of content and collect private data -- but he says the company had no reason to do so.

Seth Young, spokesman for the Berkman Center for Internet & Society at Harvard, said initial testing indicated that the system only blocked pornography and not politically sensitive Web sites. However, he cautioned that the list of blocked sites could be changed in the future.

Customers at an Internet cafe in China, June 3. PC makers are evaluating new Web-filtering requirements.

Such software is usually programmed to receive updates via the Web to the black list at regular intervals. The computer owner doesn´t need to do anything to load these updates, which are delivered directly from the software publisher to the computer.

An important question for computer manufacturers -- facing a July 1 deadline to comply with the order -- is whether installation of the software is mandatory. The order from China´s Ministry of Industry and Information Technology mandating the software left vague whether it had to be pre-installed on a computer or simply distributed on a CD with the computer.

The agency also didn´t specify what penalty companies might face if they don´t comply.

It also remains unclear whether the software can be turned off, or circumvented. Mr. Zhang said the software could be uninstalled, but requires a password to do so in order to make it difficult for children to uninstall it themselves. He also said blocked sites can be accessed either with a password set by the software´s administrator, or by adding addresses to a "white list" of allowed sites. Similarly, addresses can be added to the black list on the user´s hard drive.

The two largest U.S. PC makers, Hewlett-Packard Co., and Dell Inc., said they were evaluating the software. A spokesman for Dell said the company is still "working to understand the application."

Last year, researchers discovered that a Chinese version of eBay Inc.´s Skype Internet calling software contained the ability to block politically sensitive words in instant messaging chats, and to keep a record of the use of such words.

—Loretta Chao and Amy Schatz contributed to this article.

Write to Geoffrey A. Fowler at geoffrey.fowler@wsj.com and Ben Worthen at ben.worthen@wsj.com


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4186

'Passion for Digital' Pumps P&G's Spending - Advertising Age - Digital
'Passion for Digital´ Pumps P&G´s Spending by Jack Neff Published: June 08, 2009 BATAVIA, Ohio (AdAge.com) -- The first quarter of 2009 will be remembered for many things, mostly bad. But it may also mark a turning point when the world´s biggest marketer and its broader industry finally got serious about digital media. Even as Procter & Gamble Co. c......

'Passion for Digital´ Pumps P&G´s Spending

by Jack Neff
Published: June 08, 2009

BATAVIA, Ohio (AdAge.com) -- The first quarter of 2009 will be remembered for many things, mostly bad. But it may also mark a turning point when the world´s biggest marketer and its broader industry finally got serious about digital media.

Even as Procter & Gamble Co. cut measured U.S. media spending 18% overall last quarter, it more than doubled spending on internet display ads, according to data from TNS Media Intelligence.

Digital has been a focus area for Marc Pritchard since he became global marketing officer last year and as he prepares to assume broader duties over design and PR as global brand-building officer next month. "I´ve got a lot of passion for digital," Mr. Pritchard said. "It really is such an incredible way to connect with consumers and really have much deeper ongoing relationships with them. ... Our media strategy is pretty simple: Follow the consumer. And the consumer is becoming more and more engaged in the digital world."

Or course, the jump is relative. P&G´s big spike in internet spending, coupled with such factors as a whopping 44% decline in network-TV spending, still only brought online display to 4% of P&G´s $672 million quarterly measured outlay. And because measured-media data don´t capture many of the fastest-growing digital-spending buckets, such as online-video ads, behaviorally targeted ads, mobile or search, P&G´s digital outlay as a whole probably exceeded 5% of its media spending last quarter.

But the implications beyond the quarter are huge. The ramp-up in digital dollars means many P&G brands are finally spending enough to have a measurable impact on sales, which could allow them to justify even more spending on digital down the road.

Time to model
Once a brand spends about 5% of its media on digital or any medium, it´s usually possible to apply the package-goods industry´s return-on-investment measurement of choice: marketing-mix modeling, said Gregg Ambach, managing director of the Cincinnati office of Analytic Partners, which handles such modeling for P&G and others.

"The general trend is that internet is becoming a bigger part of the advertising budget," said Mr. Ambach of his package-goods clients. "And we´re definitely measuring more and more of it."

P&G isn´t the only package-goods titan suddenly spending bigger online -- just the biggest. Rival Johnson & Johnson hiked its measured spending overall last quarter 28%, but it nearly doubled its internet-display spending to $15.5 million. That brought J&J, like P&G, to 4% of its $397 million outlay.

More broadly, consumer-package-goods marketers began a runup in digital spending last year by one measure. The Interactive Advertising Bureau, which gets data from digital media companies via PriceWaterhouseCoopers, estimated that CPG digital spending shot up more than 60% last year to $1.5 billion, increasing its still-modest share of all digital media spending by two percentage points in a year to 6%.

Executives familiar with Google and Yahoo said spending by CPG companies on search rose double- to triple-digit percentages last year and that 24 of the 25 biggest players spend heavily on behaviorally targeted ads, whose cost isn´t fully reflected in measured media.

Fast-growing segment
Better data ultimately will be what it takes to get package-goods brands to spend more on digital. Gian Fulgoni, chairman of ComScore and former CEO of Information Resources Inc., makes the analogy to the advent of scanner data in the 1970s. When CPG marketers suddenly could see the full impact of trade promotion, they started spending more on it, he said.

More recently, he´s been beating the drum for stepped-up CPG spending on digital, and begun incorporating supermarket spending data from loyalty-card programs via Dunnhumby to show sales lifts from digital campaigns. Preliminary results from a study of two dozen CPG brands show that digital ads generate sales lifts better than those in past studies of TV ads in IRI test markets.

Mr. Fulgoni isn´t quite ready to call an inflection point for the industry, but he said CPG is the fastest-growing segment of ComScore´s client base.

A change in the way TNS tracks internet spending accounted for some of P&G´s hike in measured spending last quarter. In March, it added 600 websites to the 3,000 it previously tracked, picking up many niche sites with monthly visitors of around 500,000. Even without that impact, P&G internet spending still more than doubled, up 146% in January and February vs. the same period last year.

But one thing particularly noteworthy for P&G is that it wasn´t just a few brands getting in on the digital act. The spending also had considerable breadth, with a growing number of small outlays by several brands that weren´t active in digital last year.

Mixed results
Several brands stood out as making digital a particularly large part of their mix last quarter. Those include CoverGirl, P&G´s biggest spender on internet display, with about 10% of its $50 million media outlay going there via work from WPP Group´s G2i, primarily for Outlast lip stain.

Bounce´s $2.4 million outlay on internet display last quarter from Publicis Groupe´s Digitas made up 35% of its media spending. Vicks put 45% of its $8.7 million quarterly spending on the internet via WPP´s Bridge Worldwide, while bigger-spending Head & Shoulders put 18% of its $19.7 million outlay into internet display from Digitas.

The results appear mixed. CoverGirl, P&G´s biggest internet spender, continued its run as one of P&G´s best-performing brands of late. And it gained the most share where it focused its digital spending: in lipstick, up two points last quarter, according to IRI data from Deutsche Bank.

But Bounce, faced with rising sales of value and private-label brands, lost 2.4 share points. P&G also lost share in cough and cold, but Head & Shoulders appeared to continue a strong run in share growth.

Those numbers don´t account for impact of promotional activity by P&G or its competitors or competitive spending and pricing -- factors marketing-mix models take into account.

To get a better read on digital effectiveness, P&G will have to stick with it beyond what was the worst quarter for the economy since the Great Depression. The IRI data also leave out as much as half of P&G´s brand sales through Walmart, clubs and dollar stores.

Mr. Pritchard said P&G wants to increase its media weight -- not necessarily spending -- and is using marketing-mix modeling to do so more productively. "We like innovation as well," he said. "Obviously digital has a lot of opportunity for that. But we´ve been looking for that from our print partners as well as from our TV partners."


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4177

Get Ready for Pay per Tweet
Get Ready for Pay per Tweet -By Brian Morrissey NEW YORK The company behind the controversial marketing program that pays bloggers to write about products is preparing to move into Twitter. Izea, formerly called Pay Per Post, is readying a Twitter ad platform called Sponsored Tweets that will offer Twitter users the option of sending their followers messages about brands and produ......

Get Ready for Pay per Tweet

-By Brian Morrissey

NEW YORK The company behind the controversial marketing program that pays bloggers to write about products is preparing to move into Twitter.
Izea, formerly called Pay Per Post, is readying a Twitter ad platform called Sponsored Tweets that will offer Twitter users the option of sending their followers messages about brands and products. Twitterers will get paid based either on the number of clicks they receive or on a flat fee per Tweet.

Users will set their rates and Izea advertisers will select participants for their campaigns. Sponsored Tweets is set to launch in about a month, according to Ted Murphy, Izea's CEO.
The program is a natural extension of the company´s effort to find new ways for advertisers to connect with customers, he said. Izea has run "sponsored conversations" for many brands, including a recent campaign for Sea World and another for K-Mart. In those instances, Izea advertisers pay for bloggers to create content about a product or service.

Izea is not without its critics, which assert that the company´s paid bloggers often do a poor job of disclosure. Julia Allison, an Internet celebrity of sorts, was heavily criticized for posting about Sea World without disclosing that her coverage was part of an Izea program. She subsequently updated her post to reflect that connection. The Federal Trade Commission recently set new guidelines for bloggers who endorse products for payment.
Murphy said the company is a lightening rod because it pioneered the space -- and made mistakes along the way. As Pay Per Post, it had hazy disclosure rules. It has since tightened its standards, he said, and insists on full disclosure and audits bloggers for compliance.

"Our standards are higher than any word-of-mouth agency out there," Murphy said.
While Izea´s programs with notable bloggers like Julia Allison and Chris Brogan have generated attention, the company´s focus remains on small-time bloggers with audiences of only a few hundred readers per month, Murphy said. That makes Twitter an ideal venue, particularly with its built-in viral appeal. Izea plans to expand into other social media platforms like YouTube.

Izea has already run a handful of Twitter advertising campaigns. Blockbuster is currently offering bloggers 68 cents per click in a promotion for its online movie service.

Those posts carry a #spon hash-tag in the messages. Izea plans to use the same system for campaigns run through Sponsored Tweets.
Izea is not the only company trying to build an ad network through Twitter. Magpie also offers users money to post messages to the microblogging service. Unlike Magpie, Izea is not asking users to post set messages, instead giving them freedom to promote in their own style.
The clear risk is that users will be turned off by ad messages entering their stream of updates. Murphy sees the network mostly self-policing that potential downside, because users will hold back on promoting products and services if doing so alienates their followers.

There is still a risk, he said, of too many sponsored messages: "The question is going to be how do you meter it to make sure it doesn´t get crazy."


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4172

Fed Up With Twitter Spam? It’s Going to Get Worse - PC World
Fed Up With Twitter Spam? It’s Going to Get Worse As every Twitter user knows, the popular micro-blogging site has become a hot spot for spammers intent on carpet bombing users with the usual pitches for government grants, debt-reduction services, and penile-enhancement pills. The situation is pretty bad, particularly for naïve users who automatically follow people who follow the......

Fed Up With Twitter Spam? It’s Going to Get Worse

As every Twitter user knows, the popular micro-blogging site has become a hot spot for spammers intent on carpet bombing users with the usual pitches for government grants, debt-reduction services, and penile-enhancement pills.

The situation is pretty bad, particularly for naïve users who automatically follow people who follow them. This activity, which many newcomers undoubtedly do just to be polite, opens the door to an onslaught of sales pitches from sleazy marketers.

Here’s the bad news: According to a report by Steven Kotler of Fox News, the situation is bound to get worse. Christopher Peri, CEO of Twitfilter, a Web-based app that helps manage income tweets and Twitter followers, says that spammers are getting more sophisticated, and that what we’re seeing now is “Twitter spam 2.0.”

What exactly does this next-gen Twitter spam look like? Using computers to find keywords and target specific users, spammers are unloading messages into users’ timelines. Even worse, these unwanted posts now account for 10 percent of all tweets, Peri claims.

Twitter officials acknowledge they’ve got a serious spam problem, and they’ve taken action to fight the plague—albeit with limited success. For months they’ve been working to reduce the amount of “follow spam,” which the official Twitter blog describes as:
“…the act of following mass numbers of people, not because you're actually interested in their tweets, but simply to gain attention, get views of your profile (and possibly clicks on URLs therein), or (ideally) to get followed back. Many people who are seeking to get attention in this way have even created programs to do the following on their behalf, which enable them to follow thousands of people at the blink of any eye.”

The issue of Twitter spam is tricky, particularly since users sign up to receive tweets from marketers. When retailers like Amazon, Dell, and OfficeDepot blast Twitter feeds touting their latest bargains, is that spam? If you’ve signed up to receive these tweets, probably not. Then again, excessive marketing pitches get annoying fast, and retailers have to be careful not to overdo it.

If you’re having problems managing Twitter spam, check out CIO’s three simply rules to banish the junk tweets.


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4151

Newspaper Publishers Hold Secret Confab On Charging For Web Content - Forbes.com
Newspaper Publishers Hold Secret Confab On Charging For Web Content Two dozen newspaper publishers quietly attended the Newspaper Association of America’s annual meeting in Chicago today to discuss ways of charging readers for online content. They included representatives from the New York Times Co. ( NYT - news - people ), Gannett ( GCI - news - people ), E. W. Scr......

Newspaper Publishers Hold Secret Confab On Charging For Web Content

Two dozen newspaper publishers quietly attended the Newspaper Association of America’s annual meeting in Chicago today to discuss ways of charging readers for online content.

They included representatives from the New York Times Co. ( NYT - news - people ), Gannett ( GCI - news - people ), E. W. Scripps, Advance Publications, McClatchy ( MNI - news - people ), Hearst Newspapers, MediaNews Group, the Associated Press, Philadelphia Media Holdings, Lee Enterprises ( LEE - news - people ) and Freedom Communications.

The Atlantic’s James Warren has the agenda for the “Models to Monetize Content” conference. The event was organized by the Newspaper Association of America, though it was not listed on its website.

The private discussion was first mentioned back in April by Alan D. Mutter on his Reflections of a Newsosaur.

Warren, who oversaw the layoffs of 100 staffers at the Chicago Tribune last year as the paper’s managing editor, said that expects a large number of the publishers who attended to start charging for some online content because “they don’t know what else to do.”

Despite an appearance by NAA’s chief executive John Strum a few weeks ago on The Colbert Report, the NAA has put forward a less public face in the past year. In addition to no longer packaging quarterly revenues last year, the NAA no longer publicizes its annual meeting, considering that most of the industry’s news has become routinely grim.

As for presentation, Warren noted that a few copy editors could have been employed to avoid panel descriptions like the second session’s “Journalism Online: Presentation on proposed service to charge for access to newspaper content and to license that content that (sic) online aggregators.”

Other topics included “Aggregating User Data” and “Fair Syndication Consortium/Attributor,” which looked at ways to track newspaper content across the web and get aggregators to pay up.

—NiemanLabs: Why so hush-hush? Not because the newspaper executives are opposed to an open debate. It’s because they’re worried about possible antitrust violations.

Alluding to a memo from NAA’s Sturm, NiemanLabs points out that an industry gathering to discuss setting up paywalls could have the appearance of an illegal cartel.


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4145

Strong reception for Google Wave
Strong reception for Google Wave Industry experts have given a broadly positive reaction to Google Wave. Still in development, Google Wave is a browser-based tool that mixes e-mail, with Instant Messaging and real-time online collaboration elements. Harry McCracken, of Technologizer.com, wrote: "It's one of the most ambitious services that Google or anyone else......

Strong reception for Google Wave


Industry experts have given a broadly positive reaction to Google Wave.

Still in development, Google Wave is a browser-based tool that mixes e-mail, with Instant Messaging and real-time online collaboration elements.

Harry McCracken, of Technologizer.com, wrote: "It's one of the most ambitious services that Google or anyone else has cooked up".

Google Wave is currently only open to developers interested in building applications for the tool.

Google Wave co-creator Lars Rasmussen wrote on the official Google blog: "A wave is equal parts conversation and document, where people can communicate and work together with richly formatted text, photos, videos, maps, and more.

"In Google Wave you create a wave and add people to it. Everyone on your wave can use richly formatted text, photos, gadgets, and even feeds from other sources on the web. They can insert a reply or edit the wave directly.

"It´s concurrent rich-text editing, where you see on your screen nearly instantly what your fellow collaborators are typing in your wave."

The technology has been described as e-mail for the 21st Century, a rival to Twitter and to Microsoft´s collaboration software, Sharepoint.

Jordan Golson, writer for GigaOm.com, said Google had a poor track record of making a business out of any of its products, other than search.

"Maybe it will work. Maybe Wave will take over the world. But, with the notable exceptions of Gmail and search ads, Google has a poor track record with product launches. It is really, really good at vanity exercises, though."

MG Sieglar, a reporter Techcrunch, said the tool "drips with ambition".

He wrote: "Wave offers a very sleek and easy way to navigate and participate in communication on the web that makes both e-mail and instant messaging look stale."

The announcement of Wave, together with the development of tools like Twitter and Friend Feed, point to the genesis of the real-time web, in which communication, search, collaboration, and the bridge between offline and online blurs into a contemporaneous mix.

Ben Parr, from Mashable.com, who tested a preview of Google Wave, said: "Our initial impression of Google Wave is a very positive one.

"It´s already got certain aspects, like navigation, absolutely right. With some great third-party apps and greater customization, Google Wave could actually match its hype."


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4143

Ofcom prepares Olympics airwaves
Ofcom prepares Olympics airwaves Regulator Ofcom is looking at the best way to provide new spectrum in London during the 2012 Olympics. Demands on the airwaves will be huge as thousands of wireless devices will be used during the games to serve athletes, officials and broadcasters. Ofcom is considering temporarily borrowing spectrum from public sector bodies such as the Min......

Ofcom prepares Olympics airwaves

Regulator Ofcom is looking at the best way to provide new spectrum in London during the 2012 Olympics.

Demands on the airwaves will be huge as thousands of wireless devices will be used during the games to serve athletes, officials and broadcasters.

Ofcom is considering temporarily borrowing spectrum from public sector bodies such as the Ministry of Defence.

It believes that it can set aside a sufficient amount of spectrum without having a major impact on current users.

Wireless mics

Other options include using existing civil spectrum more efficiently and using license-exempt spectrum for activities that require low power such as operating remote-controlled cameras.

Wireless devices will be crucial to the smooth running of the games.

Private mobile radios will make sure that the London Organising Committee and athletes can keep in touch at the 36 games venues across the UK.

Such radios will be vital for communicating from land to sea during the sailing events at Portland Harbour.

Wireless microphones will be used for the opening and closing ceremonies and by broadcasters for commentary and interviews with athletes.

Wireless cameras will be used by broadcasters, including airborne coverage for events such as the marathons.

Wi-fi hotspots will be made available for spectators.

The Olympics will serve 14,500 athletes, 20,000 broadcasters in 200 countries and transmit to 5bn viewers globally.

Ofcom is set to consult on the best way to provide spectrum for the Olympics until August. A full plan will be published by the end of the year.


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4139

Future of Advertising? Print, TV, Online Ads - Advertising Age - News
Future of Advertising? Print, TV, Online Ads By Jack Neff Published: June 01, 2009 BATAVIA, Ohio (AdAge.com) -- A research project commissioned late last year with dire-sounding rhetoric about a crisis in advertising has produced decidedly calming conclusions. Among them: Threats posed by DVRs and clutter to TV ads are overblown; print and online advertising are effective; and......

Future of Advertising? Print, TV, Online Ads

By Jack Neff
Published: June 01, 2009

BATAVIA, Ohio (AdAge.com) -- A research project commissioned late last year with dire-sounding rhetoric about a crisis in advertising has produced decidedly calming conclusions. Among them: Threats posed by DVRs and clutter to TV ads are overblown; print and online advertising are effective; and word-of-mouth about brands is largely driven by paid media ads.

The Future of Advertising project, undertaken by the Wharton School in cooperation with the Advertising Research Foundation in December, bears its first fruits with 21 papers to be published in the ARF's Journal of Advertising later this month.

The effort aims to stem what ARF Chief Research Officer Joel Rubinson calls "a lot of mythology from an echo chamber I was hearing about how TV isn´t working because of DVRs and the Long Tail and declining audiences" when he assumed his post last year. "It just sounded like a lot of assumption without being factually informed," he said.

Mr. Rubinson said, however, he didn´t know what he would discover when he launched his own review of TV effectiveness, which covered seven databases and 388 studies and found no erosion of TV-advertising sales impact over the years. So far, having already shared the findings widely, he said he´s yet to be presented with evidence to the contrary.

He said the ARF isn´t out to carry water for media companies or ad agencies. "The ARF is not a trade association," he said. "It´s not like we´re a lobbying organization for one stakeholder group. ... We´re on the side of truth."

Paid media works for some
The research collection isn´t all good news for media. Among "empirical generalizations" to be published are that TV advertising loses money for most marketers -- though the same study found that, for the heaviest spenders, TV overall paid out and still works as well or better than it did in similar tests conducted more than a decade ago.

A study co-authored by one of the biggest proponents of word-of-mouth marketing, Ed Keller of the Keller Fay group and co-author of seminal tome "The Influentials," finds 22% of word-of-mouth conversations were sparked directly by advertising. Moreover, those 22% are much more likely to include brand recommendations than the remaining 78% of brand-related conversations that weren´t spurred directly by an ad.

What´s more, the study, based on interviews of more than 3,000 consumers to capture content of face-to-face conversations, finds an even higher proportion of online buzz -- 30% -- generated by ads. Those numbers probably understate advertising´s impact, according to the study, because they don´t account for indirect influence from ads.

Many of the papers are analyses of prior studies, some dating to the 1990s, though most also incorporate newer or original research. Regardless, some of the research, including the sanguine outlook on DVRs and clutter, will be hard for many to swallow.

The DVR study of 1,000 households in South Africa by WPP´s Millward Brown South Africa found essentially no difference in average ad recall or likeability scores among households with and without DVRs. It dovetails with equally puzzling, if unreleased, findings more than seven years ago by Procter & Gamble Co.

Other findings
Among theories offered by the author and JAR editors are that that DVR households watch more TV than others, still watch many programs and ads live, and that fast-forwarding reminds them of those past exposures and focuses more attention on ads than less active viewing.

Even the particularly beleaguered magazine industry will find cause for hope in the journal collection. Mr. Rubinson´s study on TV effectiveness also cites data from Marketing Evolution that shows print is more effective than TV or online at creating purchase intent. A separate study suggests that print advertising produces a higher sales lift per dollar spent than TV.

Online ads work, too, according to a report authored by, ComScore Chairman Gian Fulgoni, an avowed advocate of getting more marketers, particularly package-goods marketers, to spend online. ComScore´s research, based on collaboration with loyalty-card marketing firm Dunnhumby, finds search generates a higher lift in offline sales per consumer exposure than display, but that display, with its larger reach, likely produces a higher overall lift. The research also finds display and search used together produce a higher lift than the combined effects of using either separately.

Mr. Fulgoni is working on a separate study whose preliminary results suggest average sales lift from online advertising at least matches and probably exceeds that from TV for package-goods brands.

Much of what the initial round of studies finds is a need for more research, particularly on how best to allocate funds among media and the full implications of growing consumer use of search and social networks, said Yoram "Jerry" Wind, Lauder Professor of Marketing at Wharton, which collaborated with ARF on the study. "The major concern about the decreased impact of TV advertising is not founded," he said. "TV is still very effective. At the same time, there are a lot of things we don´t know."

What makes ad campaigns work

The Journal of Advertising Research is publishing an analysis of 880 entries to the U.K.´s Institute of Practitioners in Advertising Effectiveness Awards, which are based on detailed information on business results for campaigns. It found the following strategies are most likely to increase sales or profit:
  • Focus on hard objectives, such as specific market-share gains, rather than soft ones, such as brand awareness
  • Focus on price, not volume
  • Focus on penetration (winning new consumers) rather than loyalty
  • Influence consumers emotionally rather than rationally
  • Create ads with "talk value"
  • Have a high share of voice relative to brand market share
  • Include TV in the mix
  • Include a small number of media channels with a concerted message
  • Source: Les Binet & Peter Field, June issue, Journal of Advertising Research.

  • Each 1% increase in advertising produces a roughly 0.1 point change in sales or market share. As a result, an optimal ad budget is about 10% of gross profits. That rule doesn´t necessarily hold for all marketers (it would, if followed strictly, have Procter & Gamble cut its global ad spending by half or more). More effective advertising, or ads for new products, produce as much as 250% greater lift than average and justify correspondingly larger outlays.

    Store redesigns and other factors that make it easier and faster to shop actually increase purchases, contrary to the old strategy that making things hard to find boosts sales by making people spend more time in the store.

    Though most campaigns cluster ads in a short period of time, consumers retain information better if it´s spaced out over longer intervals.

    Obvious branding works in ads. The more often a brand appears in a TV ad, the more likely consumers are to remember what brand it was for.

    But obvious brand placements in TV shows are more likely to backfire. They´re better remembered, but more likely to be remembered negatively. Even brand placements consumers don´t consciously remember, however, can have a favorable impact on brand awareness and attitude.

    Source: Journal of Advertising Research, June issue

    Finally! It´s been a long time coming, but it´s about time somebody published something positive about TV and print, and showed that DVR is not exactly the advertising killer it´s so often hyped up to be. I´m a huge fan of social media and online advertising as marketing vehicles, but I haven´t figured out why so many people are so anxious to kill off traditional methods that not only still work fine on their own, but can complement online strategies for an even greater impact.

    Jason Miletsky
    CEO, PFS Marketwyse

    Author, ´Perspectives on Marketing´

    http://twitter.com/jason_miletsky


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MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=4137

EU Takes Action Over UK Internet Privacy Violations

The European Union started legal action against Britain on Tuesday for not properly implementing EU privacy rules to protect personal electronic data. The EU also warned that it could force social networking sites like Facebook or MySpace to hide minors' profiles from search engines.

[Estimated timeframe:2009-]

The European Commission -- the executive branch of the EU -- said Britain should outlaw Internet traffic interception and monitoring unless users give explicit consent that their behavior can be tracked and analyzed.

The commission said the use of a technology known as "Phorm" by U.K. Internet-service companies to monitor web-surfing and deliver targeted advertising violates some data-privacy rules. The commission said the U.K. hadn't required operators to gain the consent of users before gathering their personal data.

"Such a technology in the view of the European Commission and European data protection law can only be used with the prior consent of the user," said EU spokesman Martin Selmayr.

On Tuesday, regulators sent a first legal warning to Britain asking it to explain or change the way it interprets EU rules, because it currently allows Internet traffic interception when it is unintentional, or when a tracker has 'reasonable grounds' to believe that consent was given.

Britain has two months to respond. The European Commission can issue more warnings before taking a government to an EU court, where it may be ordered to change national law or face daily fines.

BT sought consent from users when it tried out Phorm from October to December 2008 in an invitation-only trial. The company says on its website that the trial didn't keep or pass on information that could identify users and what they did. It gave no comment on the EU statement Tuesday.

Internet companies, privacy advocates and regulators disagree on what kind of traffic data is personal -- such as IP addresses that give a location -- and whether storing information on a crowd of people might evade strict privacy rules because they can't be identified individually.

Phorm plans to work with three Internet operators reaching 70% of Britain's broadband market -- BT Group PLC, Virgin Media Inc. and Carphone Warehouse Group PLC's TalkTalk. Virgin said it would like to try out the technology but would do so only with users' consent.

A message left with the London office of Phorm Inc. wasn't immediately returned. Britain's Information Commissioner's Office, which is charged with protecting personal information in the country, said it couldn't comment on the EU move.

Separately, EU Media Commissioner Viviane Reding said that social networking sites needed to move fast to step up default privacy settings, especially for younger users – and that she would table new EU rules if sites didn't act.

"Is every social networker really aware that technically, all pictures and information uploaded on social networking profiles can be accessed and used by anyone on the web?" she asked in a video message. "Do we not cross the border of the acceptable when, for example, the pictures of the Winnenden school shooting victims in Germany are used by commercial publications just to increase sales?"

Ms. Reding also warned about radio frequency identification, or RFID, tags that can be used as an electronic label on clothing or food to pass on information such as expiry dates or prices to a store cashier or stock checker.

"No European should carry a chip in one of their possessions without being informed precisely what they are used for, with the choice to remove or switch it off at any time," she said.

Stores and other smart-tag users complain that some of the requirements to inform customers or switch off the tags could be burdensome and unnecessary, and might prevent them from investing in the new technology.


All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: WSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=3911



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