News: Geomentum, News Corp, Ad Dollar Shifting

I’m once again squeezed for time — going to be at Inman Real Estate Connect in SF today speaking about mobile —  but here are some interesting things going on:

News Corp. says, after yesterday’s big $203 million loss, that by “next summer” all Murdoch’s newspaper sites will be charging for access. With the exception of the Wall Street Journal perhaps, News Corp. will also see traffic and ad revenue losses accordingly. The question is: will subscription revenues offset ad losses?

Big news: Interpublic targets “hyper- local” with new unit called Geomentum that will be working cross-platform geo-marketing (including planning and measurement) to include traditional, online and mobile. The NY Times explains:

Mediabrands, an ad-buying and planning division of the Interpublic Group, plans to introduce a unit on Thursday, Geomentum, that will focus on this problem. Geomentum will be large, handling about $2 billion a year in local advertising for companies like Coldwell Banker and Nestlé Waters. It will figure out how to divide ad dollars among the almost 40,000 ZIP codes in the United States, sometimes zeroing in on even smaller areas, like a city block . . .

In a simple example, a company selling drugstore makeup for Asian women ought to advertise in neighborhoods where lots of Asian women live, and not bother pitching its products in neighborhoods heavy on white men. Once Geomentum narrowed down where Asian women lived, it would then analyze how a billboard in the neighborhood performed, versus a newspaper ad, versus a dollar-off coupon, by writing a long equation that linked store traffic and local product sales with all those variables.

DoubleClick/Google exec Dave Fall joins SMB/Local SEM marketing platform Clickable.

SMB-centric video platform and ad network Jivox launches a suite of new “video marketing” capabilities and tools:

[L] businesses can now take advantage of Jivox’s ad creation and distribution services to create and post compelling video content on their websites, in email and other marketing campaigns, on directory service sites, and on YouTube and other video-sharing sites.

Up and coming deals/coupons destination adds Internet provocateur Jason Calacanis to its board.

As Nielsen potentially moves from “people meters” to set-top box measurement of ratings (inevitable) it will wreck havoc on networks, producers and shows. According to an article today in MediaPost:

If the TV industry were to convert to digital set-top data as the basis of advertising deals, it theoretically would shift billions of dollars in TV advertising revenues among top shows, networks and distribution platforms, according to an analysis being published today by a top Nielsen executive.

“This is not merely an academic discussion. These decisions would have major financial implications for ad buyers and sellers,” Manish Bhatia, the Nielsen executive in charge with developing the research firm’s digital set-top initiatives . . . the shifts would generate $3.1 billion in incremental advertising revenues for cable TV networks, but would cost the broadcast networks an estimated $1.1 billion.

Movement to this type of ratings system is also part of a broader move toward “addressable TV.”

Finally, Google is again the top global brand, according to Millward Brown.


One Response to “News: Geomentum, News Corp, Ad Dollar Shifting”

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