U.S. media revenue for the 100 Leading Media Companies rose 5.4% to $322.5 billion in 2010, a turnaround following the 2007-2009 recession.
But the media market is losing momentum. Revenue for the nation's largest media firms grew 4.5% in the first half of 2011, according to Ad Age DataCenter's analysis. First-half U.S. measured ad spending increased a relatively weak 3.2%, according to WPP's Kantar Media. GDP this year is expected to grow a tepid 1.6%. There is rampant speculation about a double-dip recession.
The U.S. media industry has added 3,900 jobs so far this year -- but only because big gains in digital made up for losses in traditional media.
Digital-media firms are seeing a surge in revenue and employment. Zynga's 2010 U.S. revenue more than quadrupled to $402 million, allowing the social-media games company to make its debut in this report with the fastest growth among the Media 100.
Facebook's estimated U.S. revenue more than doubled. Google's estimated net U.S. media revenue rocketed 27.4% -- a $2 billion increase.
Revenue for Media 100's digital sector -- mostly digital pure plays -- jumped 17.7% in 2010, the strongest growth of any sector.
Broadcast TV wasn't far behind, with 14.0% growth driven by a revival of local auto advertising and election spending. Broadcast TV isn't seeing such gains in 2011. Station owner Gray Television's 2010 revenue leaped 28.0%, boosted by autos and elections; first-half 2011 revenue fell slightly. Media 100 cable networks generated strong 2010 growth of 8.6%, benefiting from gains in both ad revenue and fees charged to video/broadband providers. Cable continues to do well. At Scripps Networks Interactive, parent of HGTV and Food Network, first-half 2011 revenue for cable networks and related websites rose 10.7%.
Video/broadband providers -- cable systems and their satellite and telecom-owned rivals -- managed a 6.5% increase in 2010 net media revenue.
Media 100 magazine revenue decreased 0.8% in 2010, essentially stabilizing after tumbling 19.6% in 2009.
Newspaper revenue dropped 5.1%, better than 2009's 21.5% plunge.
The Media 100's worst-performing sector: yellow pages, down 17.9%. Local Insight Regatta Holdings in November 2010 filed for Chapter 11, becoming the third major yellow-pages publisher to go through a recent bankruptcy reorganization.
Other Media 100 players are pursuing deals or absorbing what they bought. Time Warner Cable is buying Insight Communications, a regional cable-systems operator. Investment firm Alden Global Capital in July 2011 bought Journal Register Co., a newspaper publisher. Cumulus Media last month bought Citadel Broadcasting Corp., another major radio broadcaster.
The really big deal in media is Comcast Corp. With its January 2011 purchase of a majority stake in NBC Universal, Comcast now has more than twice the U.S. media revenue of any other company.
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Recent statistics show that the 100 Leading Media Companies rose 5.4% to 322.5 billion dollars. This is very good news for the companies considering the countries recession throughout 2007-2009. However, it seems to that the media markets are going to start to lose momentum. Although the media industry has gained 3,900 jobs this year, there have been losses in traditional media. Companies such as facebook and google have had unbelievably successful revenue results recently which both companies hope is a trend that will continue in the future. Finally, some very important news in media companies is that Comcast has purchased a majority stake in NBC which gives them more than twice the U.S media revenue of any other company.
Sunday, October 23, 2011
Netflix Gets CW Shows
Netflix, the online and mail- order video-subscription service, has acquired streaming rights to previous seasons of TV shows from the CW Network owned by CBS Corp. and Time Warner Inc.'s Warner Bros.
The four-year agreement covers past seasons of scripted series that air on the CW from its current schedule through the 2014-2015 season, the companies said today in a statement. Financial terms weren't disclosed.
Most future content deals will be for TV shows as Netflix looks to expand its online catalog, the company said last month. The CW accord provides more than 700 hours of past seasons' programming, according to the statement. The shows include dramas such as "Gossip Girl" and "One Tree Hill."
CBS has adamantly refused to provide its own shows to Hulu in the U.S., where it wants big-money rights fees to distribute content online beyond its own sites, but has a deal in place with Netflix. CW shows such as "The Vampire Diaries," "Ringer" and "90210" are similarly excluded from Hulu.
Starz on Sept. 1 said it was ending talks to renew a streaming accord with Netflix. Starz supplies recent Walt Disney Co. and Sony Corp. movies to Netflix for online viewing under a contract that expires in February. Later last month Netflix struck a deal letting it offer movies from DreamWorks Animation SKG, the studio behind films including "Shrek" and "Madagascar," in a deal replacing a DreamWorks pact and starting with new releases in 2013.
Netflix shares rose 2.4% to $116.32 at 11:41 a.m. New York time. The shares had fallen 35% this year before today, following Netflix's price hike, apology for the way it introduced the price hike, move to split its DVD-by-mail service into a separate product called Qwikster, and decision to abandon the planned split.
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Netflix has acquired the right to stream previous seasons of TV shows from the CW Network owned by CBS Corp. and Time Warner Inc.'s Warner Bros.This new deal will give Netflix over 700 hours of CW programming and will allow fans of these shows to watch older episodes at will. After the announcement Netflix shares rose 2.4 percent, a good improvement compared to the 35% that it has fallen this year. Netflix has recently increased the monthly cost of their service and they are hoping that by making more popular shows available people will be more supportive in paying the increasing prices. Although the financial statements weren't disclosed it can be inferred that there was a very big deal in place.
The four-year agreement covers past seasons of scripted series that air on the CW from its current schedule through the 2014-2015 season, the companies said today in a statement. Financial terms weren't disclosed.
Most future content deals will be for TV shows as Netflix looks to expand its online catalog, the company said last month. The CW accord provides more than 700 hours of past seasons' programming, according to the statement. The shows include dramas such as "Gossip Girl" and "One Tree Hill."
CBS has adamantly refused to provide its own shows to Hulu in the U.S., where it wants big-money rights fees to distribute content online beyond its own sites, but has a deal in place with Netflix. CW shows such as "The Vampire Diaries," "Ringer" and "90210" are similarly excluded from Hulu.
Starz on Sept. 1 said it was ending talks to renew a streaming accord with Netflix. Starz supplies recent Walt Disney Co. and Sony Corp. movies to Netflix for online viewing under a contract that expires in February. Later last month Netflix struck a deal letting it offer movies from DreamWorks Animation SKG, the studio behind films including "Shrek" and "Madagascar," in a deal replacing a DreamWorks pact and starting with new releases in 2013.
Netflix shares rose 2.4% to $116.32 at 11:41 a.m. New York time. The shares had fallen 35% this year before today, following Netflix's price hike, apology for the way it introduced the price hike, move to split its DVD-by-mail service into a separate product called Qwikster, and decision to abandon the planned split.
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Netflix has acquired the right to stream previous seasons of TV shows from the CW Network owned by CBS Corp. and Time Warner Inc.'s Warner Bros.This new deal will give Netflix over 700 hours of CW programming and will allow fans of these shows to watch older episodes at will. After the announcement Netflix shares rose 2.4 percent, a good improvement compared to the 35% that it has fallen this year. Netflix has recently increased the monthly cost of their service and they are hoping that by making more popular shows available people will be more supportive in paying the increasing prices. Although the financial statements weren't disclosed it can be inferred that there was a very big deal in place.
McDonald's Introducing In-Restaurant TV Network
McDonald's is introducing a TV network in its restaurants that will include content from Mark Burnett and BBC America, according to a report in the Los Angeles Times.
The fast-food chain will introduce the channel over the next few months to 800 restaurants in Southern California and Central California, where customers will watch on two 42-inch HDTVs visible from 70% of seats, the Times said. There will also be "quiet zones" available.
Commercials will represent about eight minutes per hour, of which only one-and-a-half minutes will go to McDonald's commercials.
Programming will include segments such as "The McDonald's Achievers," profiling local high school and college athletes.
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McDonalds is implementing a new TV network in their restaurants all across the country. The new approach will begin in Southern and Central California where customers will be able to to watch two 42 inch HDTV's. Also, 70 percent of the seats will have suitable viewing for the TV's. Although it is not yet known all of the programs that the TV's will be airing one of them is "The McDonalds Achievers" which follows high school and collegiate athletes as they excel in their respective sports. Finally, the TV's will include 8 minutes of advertisements an hour which will help market McDonalds own products and other things that are related to their cause.
Occupy Wall Street Crowdsources a TV Buy
Occupy Wall Street has been winning in social media and dominating journalists' attention, but some backers are trying to make sure it takes plays in paid media too, by putting a 30-second commercial on TV.
The ad buy won't come out of the movement's war chest -- reportedly $230,000 earlier this week -- but instead from a sort of pledge drive on LoudSauce, a San Francisco digital marketing startup, according to The Atlantic, which first reported the effort.
Pledges have topped the $5,000 goal set by organizers, reaching $6,278 by this morning. Once the effort wraps up today, LoudSauce will use Google TV to get the spot on TV in the next couple of weeks, The Atlantic said.
At $6,000 or so, the ad buy won't go terribly far, probably snagging time in the early hours of the morning when demand from other advertisers is low. Google TV also doesn't include Comcast or Time Warner systems, The Atlantic said.
But buying TV time in any way will generate more news coverage (like this) for the movement. And that could encourage similar efforts with perhaps bigger donated budgets.
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The occupy wall street movement has gone global recently releasing a 30 second commercial in an effort to give the movement some more attention. The Ad only cost a San Fransisco digital marketing company $6,000 so it won't be played during prime time hours but will still be played in the early hours of the morning. The protesters hope that this new advertisement will generate more news coverage and encourage people from all over the country to join the occupy wall street movement.
The ad buy won't come out of the movement's war chest -- reportedly $230,000 earlier this week -- but instead from a sort of pledge drive on LoudSauce, a San Francisco digital marketing startup, according to The Atlantic, which first reported the effort.
Pledges have topped the $5,000 goal set by organizers, reaching $6,278 by this morning. Once the effort wraps up today, LoudSauce will use Google TV to get the spot on TV in the next couple of weeks, The Atlantic said.
At $6,000 or so, the ad buy won't go terribly far, probably snagging time in the early hours of the morning when demand from other advertisers is low. Google TV also doesn't include Comcast or Time Warner systems, The Atlantic said.
But buying TV time in any way will generate more news coverage (like this) for the movement. And that could encourage similar efforts with perhaps bigger donated budgets.
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The occupy wall street movement has gone global recently releasing a 30 second commercial in an effort to give the movement some more attention. The Ad only cost a San Fransisco digital marketing company $6,000 so it won't be played during prime time hours but will still be played in the early hours of the morning. The protesters hope that this new advertisement will generate more news coverage and encourage people from all over the country to join the occupy wall street movement.
Marketers Hitting Campus Harder Than Ever
Tuition costs are skyrocketing, rising by double digits at some major campuses. About 47% of students receive financial aid and 57% are working at least part time to make ends meet, found textbook-rental company Chegg in a recent survey. So, it's no surprise that today's college students are more budget-conscious than ever.
The Class of 2010 was into "labels, branding and bling," said Matt Britton, CEO of Mr Youth, which runs campus marketing programs, while the Class of 2015 is more value-conscious. "They lived through the recession," he said. "They watched their parents coming home every day, worrying about their paychecks." Even so, students are spending almost $500 monthly on food, clothing, personal care, travel and other categories unrelated to school expenses, said Elizabeth Harz, VP-brand partnerships at Chegg. Many are deciding for the first time what type of shampoo, soap and toothpaste they want to buy, not to mention the purchase of new clothes, electronics and dorm furnishings. Bed Bath & Beyond is giving students the ability to create a college registry, in the same vein as a bridal or baby registry, and Target created an interactive checklist meant to help students stay on budget. All in all, 19 million college students account for $38 billion in discretionary spending.
"Brands can't afford to cut back [on marketing to college students]. Even at the end of 2008 and beginning of 2009, there were still a decent number of brands [on campus]," said Mr. Britton. "The student audience will always be important to marketers, because they see it's not just what they purchase today, but what they can purchase tomorrow."
That's why marketers like Chevrolet and Ford have a big on-campus presence, even as fewer students take cars to school. Millennials' whole attitude toward car ownership has shifted, said Rob Weisberg, chief marketing officer at Zipcar. The company's university program has exploded in recent years, with 40 campuses added last year and another 30 this year. Zipcar promotes its presence on more than 250 campuses with guerrilla marketing and social media.
In late August, Zipcar announced a two-year partnership with Ford, adding up to 1,000 Ford vehicles to its fleet. Subsidized by Ford, Zipcar will reduce its annual membership fee of $35 by $10 for the first 100,000 new university members who sign up.
Chevrolet is also working hard to reach students, getting products in front of them, so that when they're ready to purchase a vehicle, Chevrolet is part of that consideration set. "Like many other automotive brands, this audience is critical to the growth of our business," said Phil Caruso, national promotions manager for Chevrolet. "The beauty of targeting millennials is there's not a negative or very positive perception of the brand. They're very neutral about our product." The cornerstone of Chevrolet campus marketing is a curriculum program that sees students in advanced marketing courses conceive, develop and implement marketing programs for Chevrolet vehicles.
Likewise, Microsoft's John Dougherty, director-marketing for Windows, said his team was recently on a campus where the athletic director pointed out that athletes practice 30 to 35 hours a week and stay on campus during the summer, limiting opportunities to build their résumés. Microsoft is working to develop an internship program for those students.
"There's an elevated awareness and drive for greater employability. It's definitely caught the attention of faculty and the administration," Mr. Dougherty said.
Microsoft also has a growing network of more than 500 student reps that promote its products on campus. HP, Zipcar and Victoria's Secret's Pink are just a few of the brands that use student reps. Mr. Britton says the concept is a fast-growing phenomenon as marketers look to capitalize on word-of-mouth and students jump at the chance to add a Fortune 500 company to their résumés.
"Students are realizing right now that they're in college in order to become marketable to corporate America. They have to have more than a job or internship today," Mr. Britton said.
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In this article, the author goes over how important it is for marketing agencies to display their products on campuses in order to create a buzz around it. The author states that "The student audience will always be important to marketers, because they see it's not just what they purchase today, but what they can purchase tomorrow." The article makes the point that brands can't afford to cut back on their marketing schemes to college students. Students on average spend about 500 dollars a month and continuing to market a product to them can only have positive effects.
The Class of 2010 was into "labels, branding and bling," said Matt Britton, CEO of Mr Youth, which runs campus marketing programs, while the Class of 2015 is more value-conscious. "They lived through the recession," he said. "They watched their parents coming home every day, worrying about their paychecks." Even so, students are spending almost $500 monthly on food, clothing, personal care, travel and other categories unrelated to school expenses, said Elizabeth Harz, VP-brand partnerships at Chegg. Many are deciding for the first time what type of shampoo, soap and toothpaste they want to buy, not to mention the purchase of new clothes, electronics and dorm furnishings. Bed Bath & Beyond is giving students the ability to create a college registry, in the same vein as a bridal or baby registry, and Target created an interactive checklist meant to help students stay on budget. All in all, 19 million college students account for $38 billion in discretionary spending.
"Brands can't afford to cut back [on marketing to college students]. Even at the end of 2008 and beginning of 2009, there were still a decent number of brands [on campus]," said Mr. Britton. "The student audience will always be important to marketers, because they see it's not just what they purchase today, but what they can purchase tomorrow."
That's why marketers like Chevrolet and Ford have a big on-campus presence, even as fewer students take cars to school. Millennials' whole attitude toward car ownership has shifted, said Rob Weisberg, chief marketing officer at Zipcar. The company's university program has exploded in recent years, with 40 campuses added last year and another 30 this year. Zipcar promotes its presence on more than 250 campuses with guerrilla marketing and social media.
In late August, Zipcar announced a two-year partnership with Ford, adding up to 1,000 Ford vehicles to its fleet. Subsidized by Ford, Zipcar will reduce its annual membership fee of $35 by $10 for the first 100,000 new university members who sign up.
Chevrolet is also working hard to reach students, getting products in front of them, so that when they're ready to purchase a vehicle, Chevrolet is part of that consideration set. "Like many other automotive brands, this audience is critical to the growth of our business," said Phil Caruso, national promotions manager for Chevrolet. "The beauty of targeting millennials is there's not a negative or very positive perception of the brand. They're very neutral about our product." The cornerstone of Chevrolet campus marketing is a curriculum program that sees students in advanced marketing courses conceive, develop and implement marketing programs for Chevrolet vehicles.
Likewise, Microsoft's John Dougherty, director-marketing for Windows, said his team was recently on a campus where the athletic director pointed out that athletes practice 30 to 35 hours a week and stay on campus during the summer, limiting opportunities to build their résumés. Microsoft is working to develop an internship program for those students.
"There's an elevated awareness and drive for greater employability. It's definitely caught the attention of faculty and the administration," Mr. Dougherty said.
Microsoft also has a growing network of more than 500 student reps that promote its products on campus. HP, Zipcar and Victoria's Secret's Pink are just a few of the brands that use student reps. Mr. Britton says the concept is a fast-growing phenomenon as marketers look to capitalize on word-of-mouth and students jump at the chance to add a Fortune 500 company to their résumés.
"Students are realizing right now that they're in college in order to become marketable to corporate America. They have to have more than a job or internship today," Mr. Britton said.
_____________________________________________________________
In this article, the author goes over how important it is for marketing agencies to display their products on campuses in order to create a buzz around it. The author states that "The student audience will always be important to marketers, because they see it's not just what they purchase today, but what they can purchase tomorrow." The article makes the point that brands can't afford to cut back on their marketing schemes to college students. Students on average spend about 500 dollars a month and continuing to market a product to them can only have positive effects.
ESPN.com Overtakes Yahoo Sports
The self-proclaimed Worldwide Leader in Sports hasn't, in fact, been the leader in online traffic in quite some time. But that changed in September when ESPN.com registered 52 million unique visitors in the U.S., according to ComScore, helping it unseat Yahoo Sports from the No. 1 spot for the first time since March 2008. Yahoo Sports had 49 million uniques.
The 52 million unique visitors was a record for ESPN, whose previous high was 43 million in November 2010. 
David Coletti, ESPN's VP-digital media research and analytics, attributed the record month to a continued build-out of ESPN's core digital content products -- breaking-news articles, opinion columns and fantasy-football content across ESPN.com and its five local sites -- as well as an improved Gamecast product for tracking games and matches in real-time. In the spring, ESPN also launched its WatchESPN mobile app, which gives cable subscribers access to live ESPN games on their mobile phones.
Mr. Coletti also pointed to Bill Simmons' new property, Grantland.com, which launched four months ago, as a "very strong" traffic driver. Grantland's traffic is included in the total for ESPN.
"Grantland has a very distinct audience," Mr. Coletti said. "It's very male, young, and rather upscale. There's been really strong daily usage."
ESPN.com has continued to add staff across its existing properties, helping to increase its content output.
While Mr. Coletti called the unique-visitor record a "wonderful 'reach' number," he said he pays more attention to ESPN.com's average minute audience -- the number of people who are on one of ESPN's digital properties at any given time. That number was nearly 108,000 in September, he said.
"ESPN is the quintessential cross-platform media company so we look for metrics that translate across platforms," he said. "Our strong belief is that it's a much better metric that correlates to ad impressions than unique visitor."
In a statement, a Yahoo spokesperson said that Yahoo Sports still leads the category in worldwide traffic.
"For three years running, Yahoo Sports has been and remains the number one global online destination for sports programming," the statement said. "Using our leadership in investigative journalism, record breaking traffic for the #1 fantasy destination, and high quality, personally relevant content, we will continue to engage our massive audience -- with 20 percent more daily visitors than anyone else -- create opportunities for our audience and advertisers, and provide premium content for our sports fans in the U.S. and around the world."
Mr. Coletti, of ESPN, said he expects November to be another strong month for the site, though he admits it's too early to evaluate how much the NBA lockout will impact traffic.
"It's important to us and we'll keep an eye on it," he said, "but it's still a little early."
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This article summarizes ESPN.com taking over yahoo sports with more online traffic for the first time since 2008. ESPN registered over 52 million unique users while Yahoo Sports finished with 49 million. Between fantasy sports and the world series in baseball this is a monumental time of the year for ESPN to take over the rankings. ESPN's CEO David Coletti believes that the recent success can be attributed to the marketing schemes by the company, creating new features on the website and creating a new mobile espn app for apple products. ESPN hopes that the recent NBA lockout won't affect their site traffic and the company will continue to prosper.
Walmart introduces bigger beer selection
Coming soon to your local Walmart: more craft beer.
In another sign that the fast-growing segment is going mainstream, the nation's largest company and biggest beer seller is planning to add shelf space to accommodate more craft brews, former Walmart CEO Lee Scott told distributors this week at their annual convention in Las Vegas. Mr. Scott, who retired as CEO in 2009 but still serves on the board, said he recently talked to a top Walmart official who is "clearly is in line with the fact we've got to make more space, we have to have more representation on assortment."
Walmart, Mr. Scott added, "built the company on two things: One was price, but the other was assortment, and you can't take an area like beer where people are moving to craft and 'under-assort' yourself because the person who is buying craft beer and wants that assortment will drive to Kroger and pay the 15% more."
Mr. Scott, a featured speaker at the National Beer Wholesalers Association event at Caesar's Palace, said that local store managers will have a big say in which new beers will be stocked where. "I'll tell you how it happens at Walmart: You have a 26-year-old buyer who makes the decision. The vice president is supposed to do a walk-through with them on why did you do this how did you do it." But "it is the buyer who is making that decision on those individual stores."
While craft beer still only commands about 5% of the beer market, these smaller, mostly regional brands are the only bright spot in beer, growing at a 14% clip compared with a 2% decline in the overall beer category, experts said at the convention. At this point, no one expects craft to overtake big brands, but there's still plenty of room for more growth.
Small breweries are coming online at a record pace. In 2010 a total of 1,753 breweries of all sizes operated for some or all of the year, the highest total since the late 1800s, according to the Brewers Association.
"Anyone who thinks this has peaked, we've maxed it out totally, I got news for ya -- not yet," Beer Marketers Insights president Benj Steinman told distributors. "Of course there is a theoretical limit and it is going to separate more out into winners and losers over time. But this is a trend that right now has the wind at its back."
Indeed, craft was a star at this week's convention, attended by some 3,500 beer industry professionals. The "Craft Brewer's Pavilion," tucked in the corner of the trade-show floor, was heavily trafficked, as brewers such as Allagash Brewing Co. from Maine and Stone Brewing Co. from California showed off their products. Of course, the big guys are also trying to get in on the action, putting more focus on their own smaller brands, such as Blue Moon by MillerCoors and Shock Top by Anheuser-Busch InBev. And now, they will all be slugging it out for more space at Walmart.
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In an effort by Walmart to create a more profitable industry they have devised a new campaign offering a bigger beer selection. This will involve making more shelf place in different locations to accommodate this bigger selection. They hope to be able to have a wider selection of draft beers which have been increasingly popular as of late. This will probably be disappointing to small beer distributors because Walmart is now going to beat their prices and selection.
In another sign that the fast-growing segment is going mainstream, the nation's largest company and biggest beer seller is planning to add shelf space to accommodate more craft brews, former Walmart CEO Lee Scott told distributors this week at their annual convention in Las Vegas. Mr. Scott, who retired as CEO in 2009 but still serves on the board, said he recently talked to a top Walmart official who is "clearly is in line with the fact we've got to make more space, we have to have more representation on assortment."
Walmart, Mr. Scott added, "built the company on two things: One was price, but the other was assortment, and you can't take an area like beer where people are moving to craft and 'under-assort' yourself because the person who is buying craft beer and wants that assortment will drive to Kroger and pay the 15% more."
Mr. Scott, a featured speaker at the National Beer Wholesalers Association event at Caesar's Palace, said that local store managers will have a big say in which new beers will be stocked where. "I'll tell you how it happens at Walmart: You have a 26-year-old buyer who makes the decision. The vice president is supposed to do a walk-through with them on why did you do this how did you do it." But "it is the buyer who is making that decision on those individual stores."
While craft beer still only commands about 5% of the beer market, these smaller, mostly regional brands are the only bright spot in beer, growing at a 14% clip compared with a 2% decline in the overall beer category, experts said at the convention. At this point, no one expects craft to overtake big brands, but there's still plenty of room for more growth.
Small breweries are coming online at a record pace. In 2010 a total of 1,753 breweries of all sizes operated for some or all of the year, the highest total since the late 1800s, according to the Brewers Association.
"Anyone who thinks this has peaked, we've maxed it out totally, I got news for ya -- not yet," Beer Marketers Insights president Benj Steinman told distributors. "Of course there is a theoretical limit and it is going to separate more out into winners and losers over time. But this is a trend that right now has the wind at its back."
Indeed, craft was a star at this week's convention, attended by some 3,500 beer industry professionals. The "Craft Brewer's Pavilion," tucked in the corner of the trade-show floor, was heavily trafficked, as brewers such as Allagash Brewing Co. from Maine and Stone Brewing Co. from California showed off their products. Of course, the big guys are also trying to get in on the action, putting more focus on their own smaller brands, such as Blue Moon by MillerCoors and Shock Top by Anheuser-Busch InBev. And now, they will all be slugging it out for more space at Walmart.
_____________________________________________________________
In an effort by Walmart to create a more profitable industry they have devised a new campaign offering a bigger beer selection. This will involve making more shelf place in different locations to accommodate this bigger selection. They hope to be able to have a wider selection of draft beers which have been increasingly popular as of late. This will probably be disappointing to small beer distributors because Walmart is now going to beat their prices and selection.
Pepsi charged with allegations of deceptive marketing to teens
PepsiCo Inc.'s Frito-Lay unit uses online video games and concerts to disguise marketing campaigns for its Doritos chips aimed at teenagers, consumer groups said in a complaint to U.S. regulators.
The Federal Trade Commission should investigate PepsiCo and Frito-Lay for deceptive and unfair digital marketing practices, including collecting teens' personal information "without meaningful notice and consent," according to the complaint filed today by the Washington-based Center for Digital Democracy, Consumer Watchdog and two other groups.
"Frito-Lay has infiltrated the lives of teens by developing covert advertising campaigns centered on things teens love," including video games and music, according to the complaint. The digital campaign influences teens to buy Doritos, a salty snack high in calories and fat that contributes to adolescent obesity, the complaint alleges.
PepsiCo is the world's largest snack maker, controlling almost two-thirds of the U.S. salty snacks market. The company's Frito-Lay North America unit, with brands including Doritos, Cheetos and Lay's potato chips, accounted for $13.4 billion of the company's $57.8 billion in global sales last year.
"We haven't received a copy of the filing or any documents from the organizations," Aurora Gonzalez, a Frito-Lay spokeswoman, said in an e-mail last night before the complaint was filed. "Without seeing the documents first hand, I wouldn't want to conjecture on the allegations." Ms. Gonzalez didn't immediately return calls and e-mails today.
The FTC has received the complaint and will "review it carefully," Elizabeth Lordan, an agency spokeswoman, said in an e-mail. The complaint is the first filed to the FTC about digital marketing to teens, Ms. Lordan said.
Food companies that once relied primarily on television to reach children are now using a variety of digital media in their marketing campaigns, Mary Story, a professor specializing in child and adolescent nutrition at the University of Minnesota, said in an interview.
"It's a whole new frontier that parents are not really aware of, and there's just not regulation at all about these new types of marketing," said Story, who isn't involved in the complaint. Story directs the Robert Wood Johnson Foundation Healthy Eating Research Program, which has provided grant funding to the Center for Digital Democracy. Within the food industry, PepsiCo stands out for "aggressively using the most sophisticated tools to target teens in far-reaching ways," Jeff Chester, executive director of the Center for Digital Democracy, said in an interview.
"Pepsi has purposely created immersive environments that are designed to influence the attitudes and behaviors of young people, including at the subconscious level," he said. "I don't think anyone has come close to what Pepsi has done."
The "immersive" Doritos marketing campaigns have included Hotel 626 and Asylum 626, online interactive games that provide a horror-film experience, and a website featuring video of pop singer Rihanna, according to the complaint. Such campaigns conceal the nature of the marketing and are deceptive, the complaint says.
President Barack Obama's administration is trying to reduce a child obesity rate that has almost tripled since 1980 to 17 percent, or 12.5 million Americans, William Dietz, the Centers for Disease Control and Prevention's director of nutrition and obesity programs, said last week at a joint hearing of two House Energy and Commerce subcommittees. A working group of officials from the FTC, CDC and two other agencies in April proposed voluntary guidelines for advertising to children for food with added sugars, salt and saturated fat.
The regulators, facing resistance from food companies including Nestle SA and Kellogg Co., are now scaling back those guidelines to address concerns raised by industry and lawmakers, David Vladeck, director of the FTC's Consumer Protection Bureau, said at last week's hearing.
The final guidelines will recommend restricting food ads targeted at children younger than 12, rather than anyone under age 18 as originally proposed, Mr. Vladeck said. "The FTC still has a 20th-century mindset when it comes to protecting consumers in today's digital environment," Mr. Chester said. "They have been lagging and foot-dragging, and consumers, especially teens, are being placed at risk."
The other two groups filing the complaint are Consumer Action, a nonprofit advocacy group founded in 1971, and The Praxis Project, a Washington-based nonprofit that seeks to promote community health.
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Pepsi has recently been called out on the allegations of deceptive marketing to teens for their promotion of Doritos. In their new marketing scheme Pepsi has used interactive games and has apparently collected personal information on teens without their consent. This has finally led to an investigation by the Federal Trade Commission. "It's a whole new frontier that parents are not really aware of, and there's just not regulation at all about these new types of marketing," said Story a professor of nutrition. Obama has recently tried to lower obesity in young Americans and this marketing technique is going against the cause.
The Federal Trade Commission should investigate PepsiCo and Frito-Lay for deceptive and unfair digital marketing practices, including collecting teens' personal information "without meaningful notice and consent," according to the complaint filed today by the Washington-based Center for Digital Democracy, Consumer Watchdog and two other groups.
"Frito-Lay has infiltrated the lives of teens by developing covert advertising campaigns centered on things teens love," including video games and music, according to the complaint. The digital campaign influences teens to buy Doritos, a salty snack high in calories and fat that contributes to adolescent obesity, the complaint alleges.
PepsiCo is the world's largest snack maker, controlling almost two-thirds of the U.S. salty snacks market. The company's Frito-Lay North America unit, with brands including Doritos, Cheetos and Lay's potato chips, accounted for $13.4 billion of the company's $57.8 billion in global sales last year.
"We haven't received a copy of the filing or any documents from the organizations," Aurora Gonzalez, a Frito-Lay spokeswoman, said in an e-mail last night before the complaint was filed. "Without seeing the documents first hand, I wouldn't want to conjecture on the allegations." Ms. Gonzalez didn't immediately return calls and e-mails today.
The FTC has received the complaint and will "review it carefully," Elizabeth Lordan, an agency spokeswoman, said in an e-mail. The complaint is the first filed to the FTC about digital marketing to teens, Ms. Lordan said.
Food companies that once relied primarily on television to reach children are now using a variety of digital media in their marketing campaigns, Mary Story, a professor specializing in child and adolescent nutrition at the University of Minnesota, said in an interview.
"It's a whole new frontier that parents are not really aware of, and there's just not regulation at all about these new types of marketing," said Story, who isn't involved in the complaint. Story directs the Robert Wood Johnson Foundation Healthy Eating Research Program, which has provided grant funding to the Center for Digital Democracy. Within the food industry, PepsiCo stands out for "aggressively using the most sophisticated tools to target teens in far-reaching ways," Jeff Chester, executive director of the Center for Digital Democracy, said in an interview.
"Pepsi has purposely created immersive environments that are designed to influence the attitudes and behaviors of young people, including at the subconscious level," he said. "I don't think anyone has come close to what Pepsi has done."
The "immersive" Doritos marketing campaigns have included Hotel 626 and Asylum 626, online interactive games that provide a horror-film experience, and a website featuring video of pop singer Rihanna, according to the complaint. Such campaigns conceal the nature of the marketing and are deceptive, the complaint says.
President Barack Obama's administration is trying to reduce a child obesity rate that has almost tripled since 1980 to 17 percent, or 12.5 million Americans, William Dietz, the Centers for Disease Control and Prevention's director of nutrition and obesity programs, said last week at a joint hearing of two House Energy and Commerce subcommittees. A working group of officials from the FTC, CDC and two other agencies in April proposed voluntary guidelines for advertising to children for food with added sugars, salt and saturated fat.
The regulators, facing resistance from food companies including Nestle SA and Kellogg Co., are now scaling back those guidelines to address concerns raised by industry and lawmakers, David Vladeck, director of the FTC's Consumer Protection Bureau, said at last week's hearing.
The final guidelines will recommend restricting food ads targeted at children younger than 12, rather than anyone under age 18 as originally proposed, Mr. Vladeck said. "The FTC still has a 20th-century mindset when it comes to protecting consumers in today's digital environment," Mr. Chester said. "They have been lagging and foot-dragging, and consumers, especially teens, are being placed at risk."
The other two groups filing the complaint are Consumer Action, a nonprofit advocacy group founded in 1971, and The Praxis Project, a Washington-based nonprofit that seeks to promote community health.
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Pepsi has recently been called out on the allegations of deceptive marketing to teens for their promotion of Doritos. In their new marketing scheme Pepsi has used interactive games and has apparently collected personal information on teens without their consent. This has finally led to an investigation by the Federal Trade Commission. "It's a whole new frontier that parents are not really aware of, and there's just not regulation at all about these new types of marketing," said Story a professor of nutrition. Obama has recently tried to lower obesity in young Americans and this marketing technique is going against the cause.
McDonalds introduces chicken Mcbites
McDonald's is introducing "Chicken McBites" nationally in early 2012, our sibling publication Crain's Chicago Business reported today.
The move is not only the biggest alteration to the fast food giant's U.S. menu in 2012, it also appears to be part of a plan to try and steal share from fast-food chains like Kentucky Fried Chicken, Popeye's and Boston market, based on documents obtained by Ad Age.
A memo about the soon-to-be-widely-available boxes of tiny chicken morsels that was distributed by OPNAD makes it clear that McDonald's vision is "to be the restaurant that consumers choose first for chicken anytime, anywhere." (OPNAD is not a sinister cabal out of a Bond film, but rather the U.S. cooperative of McDonald's Owner/Operators known as the Operator's National Advertising Fund, which pools its resources to buy national television advertising).
The memo goes on to say January 2012 marks the start of "phase 2 of the chicken strategy toward becoming a credible destination for chicken" and that McDonald's is aiming to put an end to the "switching behavior consumers are displaying within the category." That is to say, McDonald's wants people to eat only its chicken all the time.
McDonald's wouldn't comment on the memo, but here's what you need to know about the McBites:
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McDonalds recently announced an addition to their menus all over the country. They announced new chicken Mcbites which are smaller pieces of popcorn chicken. The article recognizes that this move will most likely steal share from fast food markets such as Kentucky Fried Chicken and Popeyes. The product is supposedly going to be introduced in January of 2012 and has received good reviews in locations where the product has been tested. Finally, McDonalds is hoping that this new innovation will take over the fast food chicken market for years to come.
The move is not only the biggest alteration to the fast food giant's U.S. menu in 2012, it also appears to be part of a plan to try and steal share from fast-food chains like Kentucky Fried Chicken, Popeye's and Boston market, based on documents obtained by Ad Age.
A memo about the soon-to-be-widely-available boxes of tiny chicken morsels that was distributed by OPNAD makes it clear that McDonald's vision is "to be the restaurant that consumers choose first for chicken anytime, anywhere." (OPNAD is not a sinister cabal out of a Bond film, but rather the U.S. cooperative of McDonald's Owner/Operators known as the Operator's National Advertising Fund, which pools its resources to buy national television advertising).
The memo goes on to say January 2012 marks the start of "phase 2 of the chicken strategy toward becoming a credible destination for chicken" and that McDonald's is aiming to put an end to the "switching behavior consumers are displaying within the category." That is to say, McDonald's wants people to eat only its chicken all the time.
McDonald's wouldn't comment on the memo, but here's what you need to know about the McBites:
- They are targeted at "multicultural adults 18-49"
- They are expected to roll out across restaurants around the country for three months next year.
- They have been in testing in Detroit and Phoenix and were apparently well-received and deemed a good value for money
- They are all breast meat and golden brown color with a "light delicate crispness"
- They have a "craveable, home-style flavor profile" made with buttermilk, onion, garlic sugar and salt.
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McDonalds recently announced an addition to their menus all over the country. They announced new chicken Mcbites which are smaller pieces of popcorn chicken. The article recognizes that this move will most likely steal share from fast food markets such as Kentucky Fried Chicken and Popeyes. The product is supposedly going to be introduced in January of 2012 and has received good reviews in locations where the product has been tested. Finally, McDonalds is hoping that this new innovation will take over the fast food chicken market for years to come.
Thursday, October 20, 2011
starbucks goes blonde
In a move to capture a bigger share of the U.S. coffee market, Starbucks today announced the latest product in its coffee line: a "blonde" roast, its lightest offering yet.
Annie Young-Scrivner, global CMO, said at a Chicago press conference that 40% of the 130 million coffee drinkers in the U.S. prefer a lighter-roast coffee. She added that the blonde-roast will appeal to existing Starbucks customers, as many of Starbucks' customers have complained about its coffee being "too heavy," as well as to non-Starbucks customers who generally prefer lighter blends.
McDonald's and Dunkin' Donuts offer milder brews and have in recent years gotten into espresso-based drinks.
Ms. Young Scrivner said the launch is a bigger investment than Via, its instant-coffee offering it announced in 2009. The marketing, which will coincide with blonde's January launch, will be a "360-degree" approach and will include TV, digital and social media.
The blonde roast will be available in Starbucks brick-and-mortar locations as well as in the grocery aisle -- the first simultaneous launch for both retail and grocery -- and will be available in whole bean, roast and ground, as well as in Via and K-cups. Blonde will come in two varieties: Veranda and Willow.
The chain also today announced an overhaul in its packaging, which will be organized by roast: blonde, medium (its Pike Place variety) roast and dark roast (such as its Verona offering). Ms. Young-Scrivner said the move "will allow our customers to pick out coffee much more easily in the grocery aisle." She added that for existing products, the new packaging could appear as early as November.
That move is not unlike the chain's Seattle's Best brand's overhaul of its line last year called the Levels system, with varieties simply named one through five that vary in flavor from mild to bold.
Starbucks had been testing a lighter roast for the last year, and went through about 80 different iterations. The coffee giant spent nearly 20 years developing Via.
The move into lighter blends is part of a continuing expansion. So far this year, Starbucks has introduced petite desserts, an expansion of its food line with "bistro boxes," gotten into the single-serve market with K-Cups, and unveiled a massive brand relaunch as part of its 40th anniversary, which included an updated logo that dropped the green ring with the text "Starbucks Coffee" and more prominently displayed its famed siren.
Earlier this year Starbucks surpassed Burger King and Wendy's to become the number 3 chain in the U.S. by sales, trailing only McDonald's and Subway. In 2010, it posted $9.07 billion in domestic restaurant sales last year, up 8.7% from 2009.
The chain's growth has come despite limited ad spending. Although Starbucks last year doubled its measured media spending, according to Kantar, it still only spent $94.4 million. Compare that to the measured-media spending of McDonald's, perennially the top restaurant chain in U.S. sales, spent about $887.8 million on U.S. measured media spending in 2010, up from $872.8 million in 2010.
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To summarize this article, Starbucks has taken a new approach in selling their coffee products. After a recent survey and a lot of customer reviews the company has decided to make their coffee a lighter roast. This idea takes after that of McDonalds and Dunkin Donuts as they both brew very light coffee that have built up an excellent fan base. The CMO of Starbucks also went on to say that this is just part of the companies 360 degree new approach. It will include TV, digital and social media as well. Starbucks hopes that this move will steal some of Dunkin Donuts and Mcdonalds customers, who are their biggest competitors.
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