A Big Drop in Ad Pages for Condé Nast.

Posted by truecreek on November 12, 2009 under More Dam News | Be the First to Comment

Ouch.  And Architectural Digest is one of my favs.

By Stephanie Clifford

Condé Nast’s ad-page numbers are in, and they explain why the company has had such a rough 2009.

Ad pages fell by 49.9 percent at Architectural Digest, part of an estimated total loss of 8,359 ad pages at Condé Nast monthlies in 2009.
Conde Nast

The company lost 8,359 ad pages at its monthly magazines, according to estimates it released Wednesday. That is a 31.6 percent drop from last year.

The worst hit were Architectural Digest, where ad pages fell 49.9 percent; W, where ad pages fell 46 percent; and Condé Nast Traveler, where pages fell 41.1 percent. Details and Wired both fell about 39 percent.

Some magazines showed improving numbers toward the end of the year. Traveler dropped only 5.4 percent from last year’s December issue, and Lucky 8.8 percent. Glamour actually rose 6.6 percent.

More here.

Out of Bounds.

Posted by truecreek on July 20, 2009 under Opinions. Everyone has them. | Be the First to Comment

Seth tells it like it is.

By Seth Godin.

Sometimes people push back on posts of mine they don’t like by telling me I’m out of bounds. Somehow, they say, I’ve crossed the boundary of what I’m allowed to write about. They are angry that I’m now writing about something outside my defined area.

I’m usually taken aback by this, because I didn’t realize I’d actually agreed to any boundaries.

dont do it!Brands run into this all the time. Consumers give them boundaries. Nike isn’t allowed to make a computer, for example (unless they partner with Apple). It turns out, though, that marketers decide to believe in these boundaries a lot more than consumers do.

A beautifully made product or service (one that we agree with) gets a lot of slack, regardless of its source. Virgin is a great example of this. Branson can market cola and airplanes with the same brand, largely because we like what he makes. In Korea, there are a few massive brands that are ‘allowed’ to market anything they like, from dishwashers to cars. Google is allowed to market the very cool new Squares, of course.

The real problem is that when marketers believe they are going out of bounds, the work they do tends to be lousy. Starbucks attempt at chocolate, for example, wasn’t as good at being chocolate as their coffee is at being coffee.I think that’s because the marketers at Starbucks feel they have permission to care about coffee, but chocolate is merely an extension, an additional profit center, not a passion.

I’m not arguing for carte blanche craziness with your brand. American Express can do travelers checks and credit cards and could have done PayPal… but no, they probably shouldn’t launch a line of whiskey any time soon. I am, however, arguing that once you have permission to talk to someone, finding new products or services for them is a smart way to grow.

When Will Marketers Boost Spending?

Posted by truecreek on May 29, 2009 under More Dam News | Be the First to Comment

We’ve been discussing this exact same thing with clients for several months now and it seems like we’re almost there.    Brand advertising on TV will once again be back in vogue, with some nice budgets behind it.

By Mark Dolliver

Will ad agencies need to wait until the recession has certifiably ended before they see a rebound in their clients’ spending? A survey released today by the Association of National Advertisers gives a glimmer of hope that marketers’ expenditures will turn upward sooner than that.

In online polling last month among members of the ANA’s Brand Marketer Leadership Community panel, 68 percent of respondents said they plan boost their media budgets as the economy recovers; 41 percent said they’ll increase their spending on social networking/word of mouth. As for the timing, 73 percent said “they would ideally implement these increased marketing activities three to six months before the recession ends, and an additional 16 percent as soon as it ends.”

A renewed focus on long-term brand-building will represent a shift from what many marketers have been doing as the recession deepened. The ANA’s report of the findings says two-thirds of marketers “have shifted their emphasis to more short-term strategies in the last six months.” Such a shift is reflected in the answers respondents gave when asked to cite the areas in which they’ve cut back. Fifty-six percent said they’ve cut media budgets, and 41 percent said the same about sponsorship/events activities. The activity most likely to have been increased amid the recession: “pricing deals,” cited by 47 percent of respondents.

For all the flux in marketers’ use of media, TV remained atop the standings when respondents were asked to say which media are effective for building brand equity. Sixty-four percent cited TV. Though down from 80 percent in a similar February 2007 poll, that still put TV ahead of online (61 percent) and “guerrilla/word of mouth/buzz marketing” (57 percent). Lagging farther behind were magazines (51 percent, down from 67 percent in 2007), radio (30 percent, down from 36 percent), outdoor (26 percent, down from 35 percent) and newspapers (19 percent, down from 36 percent). Social media garnered the most mentions as “the media channel that marketers would like to use but have not yet been able to implement.”

Elsewhere in the survey (conducted in conjunction with marketing-services firm ‘mktg’), respondents were asked about the factors they watch most closely as indicators of “brand health” — i.e., the degree to which brand equity is increasing or declining. “Customer experience/satisfaction” was cited by 48 percent of respondents — up from 37 percent in the 2007 poll. “There is less focus on traditional metrics such as brand image and awareness, which tend to be lagging indicators of brand health,” says the ANA report of the findings.

Is the Ad Business Gonna Get Any Help?

Posted by truecreek on February 2, 2009 under Opinions. Everyone has them. | Be the First to Comment

Well, I guess the question had to be asked these days. With all of the dollars being smacked around in D.C., what are your thoughts on how the stimulus package currently in front of Congress will (or will not) help the advertising and marketing industry?