Friday, February 1. 2008
It has reported revenue of $4.83bn (£2.43bn) for the quarter to December 31, which is a 51% increase on the same quarter in 2006 and a 14% increase on the previous quarter.
Google says a revision in the company's formula for showing advertising clicks led to the reduction in revenue.
The search company's founder Sergey Brin says: "We had a challenge in Q4 with social networking inventory as a whole. I don't think we have the killer best way to advertise on social networks."
The company says it has been the reducing the clickable area around its ads to decrease the number of accidental clicks and increase effectiveness for marketers.
Google paid MySpace owner News Corp $900m (£452m) in 2006 for the right to deliver ads to the networking site's 70 million-plus users.
Surely Google have learnt that those people who use social networks don't want to be bombarded with adverts? Consumer backlash against instrusive advertising (think only of Facebook's Beacon) will not change so the approach of those seeking to commercialise has to, let alone those who allow advertising on their sites. Ultimately it's the marketers who need to take responsibility to find new ways to engage with their audience.
Monday, December 24. 2007
The Queen was swift to grasp the importance of television when her Christmas message was televised for the first time 50 years ago and once again she is embracing popular culture.
Today it is no longer quite the fixture it was - but Her Majesty has risen to the challenge. Last year, her Christmas message was, for the first time, issued as a podcast while this year it will be carried on the internet. The aim, says Buckingham Palace, is to make the message "more accessible to younger people and those in other countries".
With eight grandchildren ranging in age from 30 years to just one week, the Queen is no stranger to the ways of the young (she does, after all, text). What could be more natural than to decide, at the age of 81, to deliver your message through the medium they actually use?
Wednesday, December 5. 2007
‘Even if you do not think you will have a crisis, make sure your most senior person in every country is media trained,’ warned Mulberry Marcoms CEO Chris Klopper.
Klopper said the Explorer accident had been a ‘lesson’ for him and the account team working for travel client G.A.P Adventures. He said he was relieved that UK sales and marketing director John Warner had been taught to deal with the media, after the ship’s disaster and passenger evacuation sparked a worldwide press frenzy over the weekend.
‘We put John on every TV and radio station, and he was able to calm and reassure,’ said Klopper.
The account team at Mulberry worked all Friday and throughout the weekend. It handled a 24-hour press office, dealing with international media and with foreign offices and embassies trying to track down passengers.
Klopper also told how he used a coincidence as positive PR leverage during the crisis. ‘A Danish guy proposed to his girlfriend in a lifeboat,’ he said. ‘This was like manna from heaven and, with the couple’s knowledge, we then majored on this to give a positive twist to the whole rescue management story.’
Mulberry will now work with G.A.P Adventures to ¬rebuild its reputation and prevent travellers who have booked trips from cancelling.
While the crisis was handled well there are a couple of additional lessons that should be taken from this episode. First is to ensure clients also have a plan of action in readiness of any potential crisis. Secondly it should have been highlighted that the travel company had commendably ensured that their website was also well managed with daily updates and contact points for press and friends and relatives of passengers. However, as part of the process to rebuild the company’s reputation it’s worth considering interviewing (video) the passengers who were involved to see them talk about their experiences and how G.A.P Adventures handled the whole incident.
Certainly a company living up to its name although this may not be one for the brochure!
Sunday, November 4. 2007
As Official Podcasters to the IAB for their upcoming Engage 2007 conference this week, we were asked to submit a Digital Essay for the conference brochure. For those not going to the conference and therefore not taking away your own copy of the essay - here's a markettiers4dc blog exclusive. Enjoy!
With a large focus of this year’s conference centred on video, I wanted to use this opportunity to encourage brand owners to look inside their own organisations and question how well they have prepared for the onslaught of media convergence.
How many of the online plans of those brands represented in today’s audience include video? How many have thought about producing a podcast, or funding their own TV show for the web? When it comes to the communications teams’ delivery to the media, how many think to offer something more than a press release, realising they can talk directly to their audience themselves?
With almost everyone who accesses the web in the UK doing so via a broadband connection, the expectation of what we see online has been raised further than text and images, or a bit of Flash animation. Video is what we want now, and high production values with it.
An example of where this expectation to be able to see and hear from a brand direct is never more prevalent than in the area of crisis management. Take the two very different examples where online broadcast opportunities have been used well or handled poorly via the contrasting media positioning of Mattel and Northern Rock respectively.
In August, Mattel were forced to recall over 20m products globally due to safety concerns. As part of their communication strategy to avoid mass panic amongst their consumers they produced a video of their Chairman and CEO making an impassioned statement on behalf of the company. The video was available via their website to all territories globally and was picked up by news desks internationally. Their personalised approach was a success in reassuring people that all was in control and being handled with the customer’s best interests.
In comparison during the perceived collapse of Northern Rock there appeared to be little communication emanating from them aside from an interview on Radio 4 and a limited message posted on their website. Consequently their lack of information fuelled speculation and fears, leading to media hype and scenes of investors queuing to withdraw their money. There was no wide spread communication telling people not to panic, no human face, Northern Rock lost control of the situation, allowing the media to dictate the agenda. Questions pertaining to protecting investments and savings could have been pre-empted and the responses made accessible and available in various formats via their website, satisfying the requirements from the media and their customers. This is the age where people demand to have information when they want it, where they want it and through multiple devices.
Both these instances are examples of where consumers have gone to the Internet for assurances from the brands involved, and therefore it is those involved in the digital media space that have the opportunity to influence.
The IAB continue to show how budgets for online media increase year on year, but the key question is whether they are spent wisely? For example, do those teams who design pop-ups really think that by putting the close button far away on the other side of the webpage that we won’t go looking for it, cursing them as we do? Recent research by HowTo.tv revealed that not only are such online ads seen as intrusive, but they are also having a negative impact on brand perception.*
In the year since the last Engage conference, online advertising, whilst increasing in spend, has also come under fire due to some arguably lazy planning and buying strategies. The BBC’s Panorama programme earlier in the summer exposed a few guilty parties who didn’t stop to think where their run-of-site activity might appear on the likes of YouTube or Facebook, some of whom were allegedly made to pay the price by their clients by losing their accounts.
The findings of the research are quite concerning with 94% of web users saying they have experienced online advertising that is totally unrelated to the site they are visiting. Furthermore, 95% said they had had ads served on them that were not relevant to them or their interests and that 94% of people experience pop-up ads online that are of no interest to them. The research also pointed out the need for media owners to also be weary when chasing the increased online budgets as 50% of respondents said they had left a favourite website because of intrusive/annoying online ads and pop-ups.
Most important of all, however, is that online advertising that is involuntarily served on the viewer through pop-ups, moving screens, or non-existent segmentation through run-of-site purchasing irrelevant to content, has a negative impact on the brand. An incredible 95.2% of people said annoying and intrusive ads make them less likely to buy the brand and most significantly, 95% of people said that this type of online advertising makes them think unfavourably about a brand.
Online advertising has long been seen as the media to deliver highly-targeted results due to the ability to segment the audience and deliver less wastage. However, based on this research, planners and buyers need to take a long hard look at their digital strategies and remind themselves that ultimately; content is king in an online environment, and not the advert that appears over it. The marketing industry needs to change the way it approaches online and find better and more effective ways to engage with users, to their benefit, as opposed to taking a counter-productive shotgun approach by serving ads upon them.
This is where video driven content comes in to play, but not video content for the sake of it. For example, I am not suggesting we all simply move our adverting budgets into the pre-roll video advertising market. Goodness knows just how frustrating it is to see the same advert appear over and over before each news story on a video player on a national newspaper website, for example.
Those individuals at Engage 2007 who work in the digital media have the opportunity to help communicate brand character and contribute to enhancing and protecting brand reputation. As it is conclusively affecting the profit and loss of the brand it subsequently delivers a massive opportunity for them to have a higher presence in the Board Room and a greater slice of the budget for brand communications and online advertising.
The avalanche of new media, including user-generated content and convergence, with their exponential rate of growth, present constant opportunities to add value and enhance existing and new media communications techniques. Targeted messages are fully achievable as access to potential communities and audiences continue to grow.
With the fact that Ofcom regulations do not extend to the Internet, brands have the opportunity to relinquish editorial constraints enforced on them previously in other broadcast mediums, and the web is, after all, now a truly bona fide broadcast media. In this environment brands have a greater influence, with less reliance on the media owner, as long as they protect the editorial integrity of the medium. Furthermore as content, in the form of video, can now be repurposed and made available across multi platforms it can help to satisfy consumer’s on-demand culture - information and content when it is convenient to them, rather than forced on them.
* Opinion Matters, June 2007, sample 1,444 respondents
Friday, August 17. 2007
If anyone had any doubts about the increasing use and value of video through the Web than this is another fine example of how a brand can communicate to the media and its audience simultaneously. With an anticipated 18.5m products recalled globally (2m in the UK alone), the need for a swift response from Mattel has been essential to avoid long term damage to the company’s reputation. Showing the compassion of Eckert, a like-minded concerned parent, through the video shows an individual who is prepared to face up to errors and explain how they are overcoming them. The video personalises the issues and looks to build empathy and trust with the viewer. The footage from the Mattel website has subsequently been featured on traditional TV news bulletins such as the ITV news at 22.30. By their swift response and acknowledging the benefit of the Internet to deliver their message in a personal and timely fashion, Mattel may live to fight, or play, another day.






