Monthly Archives: July 2011

News of the World Closes

The News of the World closed on 10 July, printing some 5 million copies with a head line “Thank You and Goodbye”.

News of the World Closes

The closing sees the loss of £ 660,000 advertising income each weekend and all eyes are focussed on The Sun to fill this gap. Newsagents will want a replacement as a loss of 2.6 million copies per week will hit their income badly. The immediate speculation is that News International will replace The News of the World with a Sunday edition of the Sun. “Sun on Sunday” was registered last week, as well as the domain names thesunonsunday.com, thesunonsunday.co.uk and also sunonsunday.co.uk. Both registrations are reported to be linked to News International.

In the short term, competing tabloids are likely to gain some of this income and gain additional readership, although they may well already carry the advertisers so the gain will not be 100 per cent incremental income.

Four Media feels the more worrying issue is if those advertisers who pulled their advertising seek alternative media for their advertising thus damaging the newspaper sector as a whole. Replacing seven million impacts is not easy and the print medium is suffering as a whole. Any move away from this sector will cause yet more distress to the newspaper market.

Murdoch’s News International has been in the processes of trying to acquire the remaining 61 per cent of BSkyB – a bid of some £8 billion – in order to gain total control of the company. This is likely now to be deferred until the autumn.

Shares in BSkyB fell on Friday by 4 per cent to 779p, taking the decline to 6 per cent across the week wiping £700 million off the value of the business as investors fear that the shock closure of the News of the World may not be enough to ensure Murdoch wins his battle to take full control of the satellite broadcaster.

Shares in rival publications such as the Sunday Mirror and the Mail on Sunday jumped as analysts predicted they would gain the readers and advertisers left behind in the demise of the News of the World. Shares in the Trinity Mirror (owners of the Sunday Mirror) soared by more than 10 per cent.

This is a story far from over and ironically provides journalists with a fund of ‘serious’ editorial in what is usually regarded as the ‘silly season’ lacking in strong stories.

The Google+ project

Google has taken the wraps off its latest social offering. Google+ has been in development for over a year now. On the face of it, it seems  a similar proposition to Facebook. It is a social network to share links, updates and photos. However, it does have some design features that set it apart from Facebook. Google users will be able to put users into groups such as family, work and friends. These groups will be known as circles. This has been missing from Facebook and will be a very welcomed feature on Google+. The circles will allow users to update certain circles individually thus allowing users to exclude particular groups.

Facebook is catching up fast increasingly in terms of engagement. Facebook users spent an average of 375 minutes on the site in May, where as Google users spent an average of 231 minutes on the site.

The new service has been met with a positive reaction on the web so far, although there has been many comparisons to Facebook. But for Google a successful social offering would allow Google to gather data on its users. At the present time, Google’s most popular features include YouTube, maps and search do not require a login. This therefore limits the amount of information Google knows about its users. Therefore a major benefit of Google+ is that it’s trackable. Advertisers will be able to see how brand engagement leads to purchase.

Currently it’s not clear what advertising options will be available on Google+. It would have to be assumed that Google will allow PPC, CPM and video advertising, as well as advertising on embedded YouTube videos. Therefore, if this in fact is true, it will certainly allow for more detailed demographic targeting, in addition to retargeting for people depending on interest within Google’s advertising networks.

Television and Traditional Media: The More the Merrier

A new report by the Institute of Practitioners in Advertising (IPA) suggests that multichannel media campaigns drive
incremental effectiveness over and above single channel ones (based on the IPA’s databank of 250 case studies).

The study reveals that ‘traditional’ media still has a vital role to play in driving marketing effectiveness. The analysis focuses on two main measures of effectiveness, these are hard business effects and soft business effects. ‘Hard’ includes sales and share gains, customer loyalty, penetration and profit. ‘Soft’ refers to brand awareness, image and fame.

Despite the huge growth of alternative media channels over the past decades, campaigns that include TV in their marketing mix still produces better results on both Hard and Soft measures than those campaigns that do not include TV.

75% of case studies with very high effectiveness in hard business results used TV, while 53% didn’t. 66% of cases that had high effectiveness in soft business benefits used TV, while 49% didn’t.
Using press as the lead medium of a media campaign demonstrates the biggest hard business effects in 80% of cases, versus 76% and 67% in TV and outdoor respectively.

In terms of intermediate effects such as brand fame and awareness outdoor comes in to its own with 79% of cases studied demonstrating effects, versus 66% for TV and 60% for press.

The IPA data suggests that campaigns that used a number of advertising channels show greater business effects. 78% of cases with three channels demonstrate hard business effects versus 67% of those with only one channel.