Newsletter Archive - News U Can Use
News U Can Use - December 2008
12/18/2008 - These news items are brought to you by Kuk, Baldwin & Associates:
HEAT PUMPS BACK? Heat pumps were first patented in 1927 but didn’t enjoy widespread use until the 1970s energy crisis. These devices now retail for $4000 to $15,000, depending on size and features, but not including installation and any ductwork required. Essentially, they are air conditioners that also heat by extracting heat from outside air and pumping it inside through air ductwork. They can yield up to four units of heat for every unit of electricity (300% efficiency) but are advantageous mainly in central US areas where air conditioning is a must in summer and winter gets fairly cold but not frigid. “Heat Pumps” was a busy YP heading in the mid to late 70s, but slipped in recent years. Now it may come back (This Old House, 11/08).
GOOD ADVICE. Many local businesses do both directional advertising in the YP and promotional advertising in other media – a combination that’s critical in a down economy to keep inventory moving, cash flowing, etc. If you have an opportunity to make suggestions to your advertisers regarding promotions, here are a few ideas: (1) use single savings promos, such as coupons, rather than across-the-board price cutting; (2) use “value-added” bundling of products and services to create hard-to-resist offers that can be priced favorably; (3) donate part of sales proceeds to a local cause; and (4) offer an incentive to act now. Any of these can be effective on a website – and YP ad copy can direct people there (Entrepreneur, 11/08).THIS AND THAT. About 33% of US jewelry buyers buy jewelry online, and 84% of those are satisfied with their purchases (Research Alert, 10/17/08)….Home IV infusion services have doubled in the last five years to become an $11 billion-a-year industry (Personal Journal, 10/15/08)….Apparently, recession won’t curtail green building, as the value of green residential construction projects will jump from a current estimated $15 billion to at least $40 billion by 2012 (Entrepreneur, 11/08)….An advertising proverb that especially applies to new businesses is “advertising is the tax you pay for being unremarkable” (Inc. Magazine, 10/08).
At Least Magazines Beat TV In ROI
If you are looking to influence consumer behavior at the early stages of the decision-making/purchasing process when brand familiarity and purchase intent are being established, a new study of magazine advertising ROI by Marketing Evolution found that magazines (surprise, surprise) are the most cost-effective means beating TV and online media…Why Advertising Works in Tough Economy
Now this is good. Very timely and creative. Recently received this email from office supply provider Staples who has moved quickly to capitalize on Office Depot’s decision to close some 112 stores:Clients Indicate That Agencies MUST Understand The Marketplace
In a must read for the National channel, marketers, in a new poll conducted by Reardon Smith Whittaker (link here), ranked an agency's grasp of the marketplace as the top factor when hiring a new shop.Newspaper & Magazine Industries Real Taking It On the Chin
The survey of 184 executives from companies such as AT&T, Merck and Revlon also resulted in a tie between understanding a client's goals and strength of creative as the next most important set of criteria.
And you thought things were slow in the Yellow Pages industry. Numerous stories have been pouring out in the news about the woes of the newspaper and magazine industries.TV Outlook Also Isn’t Very Bright Either
First, in a poignant signal of the radical transformation in the newspaper business, after 100 years the Christian Science Monitor has decided to end its print newspaper (link here).
Then, with increasing postage costs, Newsweek is actively considering slashing up to 1.6 million copies from its current distribution base of 2.6 million. The magazine would like to transition from a large newsmagazine to a smaller "thought leader," something more akin to the Economist. A circulation of a million is considered to be the "sweet spot" as the Economist's base in North America is 714,000. (link here)
Newsstand sales, which are usually considered a good barometer of reader demand, have fallen for Newsweek to 83,000 from 147,000 in 2004, according to the ABC. Rival Time's newsstand circulation has also slipped -- from 163,000 four years ago to about 96,000 this year. "Many publishers are facing the challenge of finding circ levels that are commensurate with [changing] reader demand," says newsstand consultant Baird Davis.
Next U.S. News & World Report announced it is switching to monthly distribution, as Hearst and Rodale announce staff cuts in their magazines. (link here)
But of course a brave few have stepped forward with more optimistic views. The Wall Street Journal's top editor Robert Thomson said in a December 4th interview (link here) that he doesn't accept the conventional wisdom that big advertising budget cutbacks will devastate print newspaper and magazine publishers. Really? After recoiling from the initial financial crisis earlier this fall, advertisers are slowly returning, said Thomson, seeking more conservative, comfortable outlets to make their case to buyers -- "People are looking for a safe harbor in times of turbulence."
Of note is that Thomson also believes that advertisers are starting to understand that consumers often ignore ads in other media because they are doing other things at the same time that sap their attention.
2009 should be an interesting year in these advertising mediums.
If the newspaper and magazine industries are hurting, guess everyone must be watching TV then, right? Not really.Retailers Make Online Shopping More Attractive For Christmas
EMarketer estimates that U.S. TV advertising spending will decline 4.2% to $66.9 billion in 2009. This significant drop in spending reflects not only the poor economic climate and lower advertising spending, but may also be an indication of a significant change in the way television advertising is bought and sold. (link here)
While TV remains a dominant media for advertisers, fragmentation on TV and declining overall viewership has made it more difficult for advertisers to reach audiences. TV still garners 25% of total ad dollars, an estimated $284.8 billion in total U.S. ad spending in 2008, but the growth has slow dramticaly.
At the local level, your local TV stations' businesses will get no relief from their efforts to compete next year for online advertising revenues. Although TV stations and other local media company Web sites will collectively grab big advertising gains this year--some 47% higher to $12.9 billion dollars over $8.7 billion in 2007--Borrell Associates says those Web areas should brace for a sharp slowdown in 2009. (link here)
According to results of the 2008 eHoliday Study from Shop.org, 56.1% of online retailers expect their holiday sales to increase at least fifteen percent over last year, compared to 77.5% of retailers surveyed last year who expected their sales to grow more than 15 percent. (link here)Even Tiger Woods Is Suffering
Scott Silverman, Executive Director of Shop.org, says "...Retailers will be heavily promotional to attract shoppers on a budget, but have also invested in new site features to improve the online buying experience."
Despite an increase in transportation costs, retailers do not plan to cut back on popular free shipping promotions. This year:
In addition to free shipping promotions, many retailers have rolled out new website features to improve the customer experience.
- 78% of retailers plan to offer free shipping with conditions
- 40.4% of retailers are compensating for increased shipping costs by renegotiating terms with shipping providers
- 33.3% are closely managing company headcount
- 15.8% are reducing other promotions
- 21.3% of retailers say they will require a higher purchase amount for customers to be eligible for free shipping
- 10.6% will cut back on usage of free shipping with no conditions
- 42.9% of retailers added or improved site search to help customers navigate sites more easily
- 42.6% added product video
- 32.7% offered customer reviews
General Motors Corp. has ended its nine-year relationship with its most visible endorser, golf superstar Tiger Woods, citing the difficult economy, its lack of cash, and a massive drop in car sales. Estimates are that the promotion effort brought Woods about $7 million a year (plus a few cars I’m sure).Improving Cell Phone Reception
As noted as an excuse for ending the deal was “Mr. Woods' desire for more family time as he and his wife prepare for the birth of their second child.” (link here)
Think Woods will have to file for food stamps now???
While this isn’t a media related item, I thought I would add this for those of you awaiting those really important calls but struggling to get consistent cell phone service in your area, home, or office – try a repeater. It’s a device that can be attached to a car window or installed in a building. Their purpose is to improve the cellular signal in an area up to 2,500 sq ft. Some version hook directly to you cell phone. Others have a separate device which communicates with the cell phone tower. The signal booster part amplifies the cell signal and rebroadcasts the improved cell signal throughout the area in which it is installed. In theory.Maybe those that don’t believe in print Yellow Pages should take a look at these comments
Be sure the device you select matches the bandwidth of your provider. One good site is http://www.repeaterstore.com which has a nice menu to wake you through your specific cell provider requirements. I will tell you these devises aren’t cheap -- they run from a low of around $129 to over $400. But what’s the cost of missing that all important sales call???
Despite the negative news you may read about the lack of value that print Yellow Pages brings in this wired, mobile, digital world, perhaps those naysayers should check out this small sampling of people that have nothing but praise for the value of the print media:
Without the Austin Yellow Pages I would not be able to find anything.
That is why the Austin Yellow Pages have come in so handy. In truth, without the yellow pages I would be completely lost. I would not be able to order pizza or Chinese food (and as such would probably starve) and I would not be able to ...
Erec2006 - http://www.erec2006.com/
Where To Get The Best Discount Printer Cartridges In San Diego ...
To find them, all you need to do is to pick up your yellow pages and look for the listings under office supplies. Caboodle Cartridge. Caboodle Cartridge is a franchise store located along Midway Drive in San Diego. ...
Free Articles - http://www.126126.info/
Dealing With Obsolete Computers
By Tara O'Sullivan, Truck Driver / Tattoo Artist(Tara O'Sullivan, Truck Driver / Tattoo Artist)
If your computer is broken, check your Yellow Pages for computer repair services and fix your existing computer before buying a new one. Find a computer reseller near you by visiting the database of national retailers at Recycler’s ...
Take Action! - http://takeactionwithtara.blogspot.com/
Green Team's weekend events promote eco-friendly effort
Hutchinson News - Hutchinson,KS,USA
The green-pages idea was born of a partnership between the AT&T Real Yellow Pages and Hutchinson's Green Team and will update community information on ...
Basement Remodeling - A Focus on Waterproofing
When you have to do a remodeling job in your kitchen, simply open up the yellow pages and browse through the list of contractors who are available. Only thing you have to remember is that, selecting the largest advertisement may not ...
basement-remodeling-blog.expertcarpen... - http://basement-remodeling-blog.expertcarpenter.com/
Recycling: Think outside the blue bin
Check your local newspaper, yellow pages or simply or make a few calls to see if your local shops are interested. While purchase depend upon condition of the book as well as rarity, its another good option and unlike ebay with it’s fees ...
Image Grenade - http://www.imagegrenade.com/
How To Get The Best Car Insurance Quote
By Susan Tanner
If you do not have access to a computer or do not feel experienced enough with one to do a web search for insurance companies, you can always do it by telephone. The yellow pages of your telephone book usually have a list of local ...
Isulong Article Directory - http://www.isulongseophil.net/