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January 2009 - Posts

How long can Google beat the crunch?

Google’s Q4 revenues are up 18% but Microsoft’s online operating losses have doubled. What’s going on? According to Google, their modest success is all down to folk who are still ploughing modest advertising spend into search. Then there’s the fact that they’ve super-turbo-charged the engine itself with over 300 enhancements.  However, only last week it was reported that search marketing budgets in the States have fallen 8% year-on-year in Q4 2008 (Revolution). So, the big question – is Google’s crunch trouncing success sustainable? And, if so, for how long? Of course, the real question is how useful either of the businesses’ quarterly reports/forecasts are in predicting their future. Given the new rules of the market, can anyone really predict who the winners or losers will be?

 

Posted Jan 26 2009, 10:47 AM by Mark Tomkins, TDA with no comments
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Sorry, sex doesn’t sell

Buried in my usual Obama-heavy copy of Time magazine was a review of ‘buy.ology: Truth and Lies About Why We Buy’ by Martin Lindstrom. Talk about digital direct marketing! The legendary marketing uber guru actually wired his guinea pigs to brain computers to see if there was a connection between religion and brand loyalty. Surprise, surprise – there was pretty much no difference in people’s reaction to either. From Pontiff to Pontin’s, they were tickled by the stimuli in the precisely the same way. Specific findings also included the fact that product placement doesn’t work – apparently viewers just tune it out unless it’s pivotal to the show; cigarette warnings actually encourage people to smoke – the craving spot in people’s brain is stimulated by the warning; Oh, and sex doesn’t sell, but controversies about sex do. Hello boys, indeed. Pseudo-scientific clap-trap? Maybe, but it’s further evidence that we’re going to have to keep throwing away the rule books - even the ones written last week. Don’t forget that this is the week that Ofcom publishes its report into the future of public service broadcasting and Lord Carter’s Digital report sets out the government’s thinking on how new technologies affect the industry. It's a brave new world and we’re the ones shaping it.

Posted Jan 19 2009, 10:39 AM by Mark Tomkins, TDA with no comments

Will cocoon lead to digital boom?

Squeeze a family’s disposable income and they’ll indulge in “cocooning”. In other words, battening down the hatches, turning on the TV and tuning out. So far, so obvious. But, according to Sean Maloney (Intel Senior Vice President) at the Consumer Electronics Show in Vegas this could be a huge opportunity. After all, there’s a captive audience no longer being distracted by expensive outdoor pastimes. The only problem is getting them to hook their HD TVs up to the net. Indeed, Maloney talks about an ocean of flat panels that are ‘orphans’. Link them to the net and the possibilities are endless – from watching a Blue-ray movie whilst listening to a live director’s commentary to chatting about it in real time with other viewers and uploading user-generated content. Then there are the widgets that’ll soon be sitting in the corner of our everyday screens – probably streaming live Strictly Come Dancing updates. Isn’t it all rather intrusive though? Doesn’t TV = passive and PC = active? TV advertising works because we let our guard down and it seeps into our subconscious. Red Button is one thing but if you’re asking me to click at every opportunity I’m just going to get ‘interaction fatigue’. In these heady days of consumer power I’ll choose when I want to interact, not you Mr Advertiser. That said, the potential for bringing back a shared TV viewing experience is wonderful. Think of it as one global virtual sofa with thousands of Jim Royles!

 

Posted Jan 13 2009, 12:22 PM by Mark Tomkins, TDA with no comments
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