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Media and entertainment companies aren't moving fast enough to embrace new business models and the ever-changing needs of digital customers. That's the warning shot fired by IBM Global Business Services in its annual survey of the digital marketing landscape.
"Media and entertainment (M&E) companies need to move beyond traditional advertising: the scenario of the future is consumer centricity," the report states. "Yet content owners, media distributors and agencies have not sufficiently responded to these changes, partly due to significant hurdles. Investment decisions are being hindered by new format uncertainty; the lack of cross-industry standards across formats, processes and especially metrics; and significant internal challenges."
Last week, research showed that SME’s were quickly taking up Twitter and adapting its many uses to suit their businesses. However, worrying research from ntl:Telewest Business has been released today that reveals more than 80% of the UK’s top 100 tech companies don’t appear to be using it for business communication purposes.
The research report comes from a study of the FTSE techMARK 100 and found that workers from eight of the top ten companies are not embracing Twitter, despite the recent surge in interest across the media, commercial organisations and the general public.
There's a nasty little blog debate in progress today between Wharton School of Business professor Eric Clemons and some industry analysts about whether internet advertising actually works. Before you draw a big breath, knit your brow and get ready to enter the debate, relax a bit. Of course it works. Clemons' missive provides an opportunity to restate the case for internet marketing.
Clemons, professor of operations and information management at The Wharton School ranted on TechCrunch today that the "internet is not replacing advertising but shattering it, and all the king’s horses, all the king’s men, and all the creative talent of Madison Avenue cannot put it together again."
It may be antithetical or even sacrilegious to say so, but companies may have too much customer data for their own good. With internet marketing focused on generating even more of that data through behavioral targeting and social media, it may be time to consider a new theory out of Penn's Wharton School of Business. It's called "data minimization."
According to Wharton marketing professors Eric Bradlow and Peter Fader "data minimization" is a simple but radical concept: keep the customer data a company needs for competitive advantage, and purge the rest. "I think there is a fear and paranoia among companies that ... if they don't keep every little piece of information on a customer, they [can't function]," Bradlow told the Marketing @ Wharton newsletter. "Companies continue to squirrel away data for a rainy day. We're not saying throw data away meaninglessly, but use what you need for forecasting and get rid of the rest."
Online retailers are getting lazy, irresponsible, and are disregarding best practices when it comes to responsible email marketing, according to a new study from Return Path.
These dire findings were based on buying items from 45 online retailers, then monitoring their transactional and promotional message streams. These emails messages were then compared with messages received by registering for the same retailers' email programs without making a purchase.
A lack of measurement is still an issue for many email marketing campaigns, with almost half of companies failing to track their ROI from email.
Econsultancy's third annual Email Marketing Industry Census, sponsored by Adestra, found that 42% of organisations did not know what their ROI was from their email efforts, despite its proven effectiveness.
It's getting hard to find adjectives to describe Twitter's growth. Nielsen reports today that unique visitors to Twitter increased 1,382 percent year-over-year, from 475,000 unique visitors in February 2008 to seven million in February 2009.
It is the fastest growing site in its member communities category, to say the least. Zimbio and Facebook followed at a paltry 240 percent and 228 percent, respectively. What to call that kind of growth? "Googletastic," anyone?
The official version of the SEMPO report was released today and it shows search engines have advertisers right where they want them. It shows "overwhelming interest" in newly developed behavioral targeting opportunities, with three-quarters of advertisers claiming they would pay bid more for clicks targeted to in-market consumers.
The Search Engine Marketing Professionals Organization "The State of Search Engine Marketing 2008" shows behavioral targeting has moved demographic targeting down on the priority list. In previous years SEMPO respondents showed a stronger interest in demographic targeting, but this year, advertisers on average would pay 10 percent more for both demographic targeting and daypart targeting; they would pay 13 percent more for behavioral targeting. Behavioral-based search retargeting was unchanged in terms of spending. Two in five advertisers said they are not currently targeting or retargeting searchers but plan to in the next 12 months, while another third (34 percent) said they are not currently targeting or retargeting searchers and have no plans to do so in the next year. Another 44 percent said they were targeting searchers either through an ad network, a portal or consumers who had previously visited their site.
Social media is becoming a tough game to call for research companies. Several recent reports present divergent looks at ad spending projections and the potential size of key players, all pointing to the possibility that spending in this area is more spontaneous than search, display, or even traditional media.
Take, for example, two reports issued today on ad spending projections. The first, from eMarketer, predicts $2.3 billion in worldwide on social network advertising in 2009. In 2013, spending will reach an estimated $3.5 billion. Those numbers are positive on the surface, but they represent a 50 percent reduction from eMarketer's last projection, delivered in December 2008. The company, which culled research from Deloitte and comScore for its projections, says the limiting factor is the worldwide economic crisis.
If the latest CMO Council study translates into dollars, 2009 will be about five percent better for internet advertising than 2008. Last week was filled with analysts making downward adjustments to this year's internet ad spend outlook, but the more forward-looking CMO study is more optimistic. Consistent, but optimistic.
Specifically, the 650 CMOs surveyed said unanimously that they plan to cut or hold steady on traditional ad spend in TV, print, and radio. 43 percent of them plan to increase spending on interactive and web media by up to five percent this year, and 30 percent will increase internet budgets more than five percent. Last week Bernstein Research put internet ad growth at 5.9 percent after predicting more than 16 percent just five months ago.
Econsultancy has recently been highlighting the many uses of Twitter, which is a customer service solution, a marketing platform, and a brand monitoring tool.
Now, new research from O2 has found that smaller businesses are quickly adopting this online medium.
If there's a bastion of stodgy business thought, it's McKinsey & Company, where deep consulting reports have long ridden the leading edge of globalization, innovation, and management thought.
McKinsey has never been exactly dialed in to online innovation...until now. Without much fanfare, McKinsey has embraced social media, making it safe for MBAs around the world to tweet and retweet.