by Jack Loechner on Oct 30, 12:00 AM
Direct Marketing in Action According to DMA studies, and the work of independent survey firms released recently at the annual Direct Marketing Association fall conference in Chicago, 45% of respondent revenue was generated through direct marketing during the first nine months of 2001, as opposed to just under 36% last year. Richard Levey reported that last year, about 1/3 of the respondents' marketing budgets went to direct marketing, compared with nearly 43% during the first three quarters of 2001. And, last year, only 18% reported spending at least 80% of the budget on DM, versus 30% this year, with …
by Jack Loechner on Oct 30, 12:00 AM
Soft Magazine Ad Rates A recent article by Stuart Elliott in the New York Times notes that the economic slowdown that has diminished (advertising) demand among marketers, and being made worse by the effects of the terrorist attacks, has executives at media companies scrambling to determine what to charge for ad pages and commercial time in the fourth quarter and the start of 2002. Mediaweek reported last week that the big broadcast television networks are trying to avoid steep cuts in commercial prices, as well. The result, says Joe Mandese, editor of Media Buyer's Daily, " is proving to …
by Jack Loechner on Oct 30, 12:00 AM
Worldwide Online Holiday Sales Despite difficult economic conditions and the events of September 11, worldwide online holiday shopping sales are projected to reach $25.3 billion this year, a 39% increase over last year, according to a recently released study conducted between September 26th and October 7th, by Gartner, Inc. "The increase in online holiday shopping sales will be driven by increases in online users, buyers, and most importantly, the experience level of online buyers, which our research indicates is the single most important predictor of online spending," said Mike Cruz, senior analyst for GartnerG2. GartnerG2 research presently shows …
by Jack Loechner on Oct 30, 12:00 AM
Newspapers Making a Move Lucia Moses, of Editor and Publisher, has done an excellent job of summarizing an informal survey of newspapers across the country, and recognizing formal studies by leading research companies, to conclude that if the spikes dailies experienced in the days after the terror attacks, could if sustained, put the industry on a growth track for the first time in 40 years. Of 40 dailies surveyed by Editor & Publisher in a 10 day period, 34 reported that their circulation had grown, with many reporting increases in the 0.5% to 1.5% range. She says that there …
by Jack Loechner on Oct 30, 12:00 AM
Consumer Expectations Rebound The Washington Post, quoting the preliminary results of a University of Michigan survey, found that consumer sentiment rebounded in the first part of (October) from a fall after last month's terrorist attacks. "While the early October reading is only slightly above the average level recorded last month, it represents a welcome halt to the free fall in confidence," said Richard Curtin, director of the university's surveys. The University of Michigan's preliminary reading of its sentiment index for this month was 83.4, up from the final September level of 81.8, and almost back to the pre-attacks figure …
by Jack Loechner on Oct 30, 12:00 AM
Habits Are Hard to Break In addition to other positive news in recent studies, a telephone poll conducted by Frost & Sullivan has revealed that U.S. consumers do not anticipate any significant changes in their discretionary spending patterns over the next six months. Results of the poll indicate that consumer (discretionary) spending priorities have been, and will continue to be, travel and entertainment. "These responses support what I believe is a logical premise, which is that people's lifestyle and family antecedence are deeply held and not easily swayed," says Laurel Donoho, Director of the Consumer Group at Frost & …
by Jack Loechner on Oct 30, 12:00 AM
Continuing Confidence Last week we posted the University of Michigan Consumer Confidence measurements, and shortly after, the Conference Board released data that supports consumer confidence in spite of the fact that more Americans today, than a month ago, believe that the terrorist attacks of September 11th are pushing the United States into a recession recession. A special survey was conducted on both September 18th and 19th, as well as October 18th and 19th. Over the last month, the number of Americans who say they are not going to postpone plans to buy cars, homes or other large-ticket items has …
by Jack Loechner on Oct 21, 12:00 AM
Cable Modem Penetration Driving Broadband Jupiter Media Metrix reports that 41% of online households in the US will subscribe to a broadband Internet connection service by 2006—up from 9% in 2000. Jupiter analysts forecast that the number of households accessing the Internet via broadband connectivity (cable modem, DSL, satellite or fixed wireless) will increase from 5.2 million in 2000 to 35.1 million in 2006, with cable modems being the primary driver. Joe Laszlo, Jupiter senior analyst, says "While consumers' awareness of broadband has grown considerably, improved and increased marketing by cable and DSL providers will finally help overcome …
by Jack Loechner on Oct 21, 12:00 AM
E-Commerce Sales and Global News Site Shifts ComScore Networks released the results of its latest report of e-commerce activity since the September 11th terrorist attacks, indicating an apparent but gradual improvement in total online sales following a severe initial decline. From Tuesday September 11th through Sunday September 16, total consumer e-commerce spending fell 25% vs. levels seen prior to the attacks. These initial declines were sustained through the following week, and were driven primarily by a sharp drop of over 40% in online purchasing of Travel services. Online purchasing of non-travel goods and services declined by 25% during the week …
by Jack Loechner on Oct 21, 12:00 AM
World Business on the Web Growing According to IDC, the total worldwide value of goods and services purchased by businesses through ecommerce solutions will grow from $282 billion in 2000 to $4.3 trillion by 2005. This represents a compound annual growth rate of 73% during the forecast. According to the study, the key to continued growth will be the shift in business philosophy from creativity to innovation. "Innovation in information exchange between companies rather than basic ecommerce transactions will be much more important to long-term ebusiness success," said Richard Villars, vice president for IDC's Internet and eCommerce Strategies. Over …