Identifying media trends and advertising research for newspaper executives Produced by Andrea Loubier on 6 June 2005 A Note From Andrea: The INMA Media Monitor E-Newsletter looks at dozens of web sites for examples of advertising effectiveness in the newspaper, television, radio, outdoor, internet, and other media industries. We also are interested in how media industries represent themselves to industry publics. Advergaming Comes of Age With Microsoft▓s Xbox 360 Internet Advertising Becomes More Effective as Consumers Become Fed Up With Traditional Ad Clutter Market Research Moves Back Into Fashion As Advertisers Seek Return On Investment Adding Online to Advertising Mix Is a Winner Every Time Online Is Now Preferred Source of News for Connected Adults Internet Advertising to Overtake Radio and Television Hypertag Technology Goes Global Newspaper Circulation Up Worldwide, But Down in U.S., Europe Newspaper Advertising Value Highlighted In U.S. Report Recording of Internet Radio a la TiVo May Be Illegal Rock Radio Listeners Feel Radio Is Here To Stay Digital Radio May Provide Answer for Terrestrial Radio to Combat Satellite Radio Major Advertising Category Cutting Television Click here to go back to the top of this e-newsletter Advergaming Comes of Age With Microsoft▓s Xbox 360 Source: Ad Age | 30 May 2005 Microsoft is aggressively selling the advertising features available to marketers in its new Xbox 360 console game system. In addition to being able to become the named sponsor of a particular game event, the system carries a marketplace feature that allows advertisers to offer new game trailers, sell updates and additions like new levels and maps, and even things like t-shirts and soundtracks. There are currently 2 million subscribers to the Xbox Live service and the company is shooting for half of the projected 1 billion units of Xbox 360 to be signed up for the Live service. Numbers like these can make almost any advertiser sit up and take notice of the new medium. Internet Advertising Becomes More Effective as Consumers Become Fed Up With Traditional Ad Clutter Source: The Globe And Mail | 22 April 2005 Google recently surprised everyone by reporting that it nearly doubled its first-quarter revenue this year. This was largely driven by gains in advertising, demonstrating that businesses recognise that online advertising can be more effective than some traditional advertising approaches. McGill University business professor Karl Moore notes that this is likely happening because consumers are so bombarded by traditional advertising that they block out as much of it as they can. When people are googling, they tend to be paying attention to what they are doing and do not multi-task they way they do with other media. Market Research Moves Back Into Fashion As Advertisers Seek Return On Investment Source: The New York Times | 18 April 2005 As advertisers look more and more for a return on their marketing investments, the field of marketing research is returning to favour. A major new trend involves research being done on how to market to consumers emotionally rather than on a rational level. The latter chases consumers, while the former draws them in. Connect with a consumer on an emotional level and you've given them a much more powerful reason to buy than if you simply appeal to their logic center. In a survey on receptivity to marketing, 56 percent said they would avoid products that saturated them with advertising, up from 54 percent last year. And, 69 percent were interested in ways to block, avoid or opt out of advertising entirely. Click here to go back to the top of this e-newsletter Adding Online to Advertising Mix Is a Winner Every Time Source: Canadian Newswire Group | 26 May 2005 In an announcement detailing results of its fifth Canadian Media Optimization, the Interactive Advertising Bureau of Canada noted that multi-media campaigns were always more effective in reaching consumers, but that an increase in online advertising had the most potential to improve a campaign's effectiveness. Key findings include that the addition of outdoor and/or online to a television/print campaign improved advertising awareness by over one-third, and that online advertising outperformed television in terms of raising purchase intent. Online Is Now Preferred Source of News for Connected Adults Source: Media Daily News | 29 April 2005 A study by JupiterResearch estimates that more than 26 percent of online adults currently prefer the internet for national and international news. This figure was only 19 percent in 2001. This growth in online news popularity comes mainly at the expense of television and newspapers. Related: Newspaper Web Sites Necessary to Capture Younger Demographic Internet Advertising to Overtake Radio and Television Source: Friday Morning Quarterback Album Report, Inc. | 27 April 2005 Bob Parker, deputy chairman of Credit Suisse Asset Management in London recently told Bloomberg that there would be a clear shift from radio and television advertising to internet advertising. Google's recent announcement of its first quarter profit gains seems to lend credence to this claim. Online advertising currently makes up for 3 to 4 percent of overall advertising spending, but it has already taken over radio in the UK and the rate that Americans are buying online would indicate that the advertising dollar is likely to follow them there quickly. Related: Major Advertiser Pulls All Broadcast Television Ads Click here to go back to the top of this e-newsletter Hypertag Technology Goes Global Source: Net Imperative | 27 May 2005 Hypertag, a mobile marketing technology company, has announced partnership deals with companies in France, Spain, Australia and Canada. Hypertag's technology allows mobile devices to be held up near an outdoor advertisement and additional content including vouchers, business cards, ringtones or games, is transmitted directly to the phone/device. Click here to go back to the top of this e-newsletter Newspaper Circulation Up Worldwide, But Down in U.S., Europe Source: FinFacts.com | 30 May 2005 Newspaper circulation gains in developing countries has been a long term trend, but gains in many mature markets over the last 12 months has lead the World Association of Newspapers to trumpet the revival of the newspaper. The gains in mature markets, while smaller, were attributed to a renaissance of the paper through new products, new formats, new titles, new editorial approaches, better distribution and better marketing. Worldwide circulation was up 2.1 percent and the number of new titles was up 2 percent. Perhaps one of the most compelling statistics was that the audience for newspaper web sites grew 32 percent last year and a whopping 350 percent over five years ago. Newspaper Advertising Value Highlighted In U.S. Report Source: Newspaper Association of America. | 23 May 2005 Representatives of Valassis Communications Inc., a major marketing services company and ad buyer, noted that newspapers often provide an effective medium for advertisers trying to reach targeted audiences. Examples proving this include one retailer who packaged their annual catalog with the paper but delivered as a topper. Consumer recall of having received the mailer was 87 percent. This was 19 percent higher than those who received the catalogue via traditional direct mail and the retailer experienced a 16 percent increase in door traffic the week of the drop. And according to research, centerspread newspaper advertisements are noticed 60 percent more often than single-page ads, and are actually read 43 percent more often. Click here to go back to the top of this e-newsletter Recording of Internet Radio a la TiVo May Be Illegal Source: Reuters | 27 May 2005 Never mind the question of consumers recording programs from internet radio broadcasts and then skipping over the commercials. Industry watchers say that recording the music itself is illegal and are just waiting for a lawsuit to be filed. Creators of the technology that makes recording internet radio broadcasts possible say similar software has been available for a long time and was never challenged so it▓s a little late for the music industry to be calling foul. Rock Radio Listeners Feel Radio Is Here To Stay Source: Jacobs Media | 25 April 2005 Jacobs Media recently surveyed 19,000 listeners of the Rock radio format. The survey showed that these listeners were enjoying the many new technologies out there like MP3 players and iPods, but a full 67 percent felt that radio wouldn't be replaced by these portable upstarts anytime soon. More than 21 percent already owned such devices and 43 percent said they were somewhat likely to purchase one this year. Related: Radio Promotes Its Strengths Through Radio, Print, and Online Digital Radio May Provide Answer for Terrestrial Radio to Combat Satellite Radio Source: Las Vegas Business Press | 25 April 2005 At the recent National Association of Broadcasters Convention in Las Vegas, industry insiders discussed how digital radio could change their future. Local stations were broadcasting on their respective multiple digital channels to strut their stuff. Programming for the additionally available seems to be the only thing in question. Some are even considering offering a subscription only commercial-free channel which would be traditional radio's answer to competition from satellite radio. Related: Consumer Response to Digital Radio's Enhanced Capabilities to Be Studied Click here to go back to the top of this e-newsletter Major Advertising Category Cutting Television Source: The Day | 29 May 2005 Drug companies like Pfizer Inc. and AstraZeneca PLC are reevaluating the amount of advertising they place on television after sales of Pfizer's top brand Viagra dropped off only slightly when they were ordered to pull their main television campaign last year by the U.S. Food and Drug Administration. Pharmaceutical advertising ranked 11th last year in TV ad spending by industry has been a major boon to television stations. The drug makers announcements that they are going to focus their ad dollars more specifically in print and online advertising signals a watershed event. Click here to go back to the top of this e-newsletter About This E-Newsletter: Media Monitor is a bi-weekly e-newsletter produced by the International Newspaper Marketing Association (INMA) for executives interested in what various media industries are doing to represent themselves to advertisers and publics. Particular emphasis of this e-newsletter is on advertising effectiveness of various media. Subscribers to this e-newsletter may view the complete Media Monitor archive 24/7 by clicking here. The e-newsletter is free to INMA members and available for US$50 per half year for non-members. To unsubscribe to this e-newsletter, go to your "My INMA" page by clicking here. Andrea Loubier, a Dallas-based freelance author and former membership manager of INMA, produces the Media Monitor based on her monitoring of 50+ web sites and trade magazines.