cost

CPM (cost per thousand) compression YOY

SOURCE:  Demand Media (DMD) 2011 Annual 10K  ( http://bit.ly/zBiIVF  )

 
 
 
 
 
 
2009 to
2010
 
2010 to
2011
 
Year ended December 31,
 
%
Change
 
%
Change
 
2009
 
2010
 
2011
 
Content & Media Metrics (1)
 
 
 
 
 
 
 
 
 
Owned & operated
 
 
 
 
 
 
 
 
 
Page views (in millions)
6,849

 
8,234

 
10,378

 
20
 %
 
26
 %
RPM
$
10.69

 
$
13.45

 
$
15.14

 
26
 %
 
13
 %
Network of customer websites
 
 
 
 
 
 
 
 
 
Page views (in millions)
10,009

 
13,155

 
17,436

 
31
 %
 
33
 %
RPM
$
3.45

 
$
3.20

 
$
2.77

 
(7
)%
 
(13
)%
RPM ex-TAC
$
2.39

 
$
2.28

 
$
2.06

 
(5
)%
 
(10
)%

 

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Friday, March 9th, 2012 digital No Comments

What Most Economists Get Wrong About The Rise In Gas Prices

source: http://www.businessinsider.com/what-most-economists-get-wrong-about-the-rise-in-gas-prices-2012-3

Not only is the increase in credit, without a subsequent increase in consumption, a sign of strain on the American consumer; but they shifted from buying new goods to used goods in recent months in a big way.  An era of "frugality" has impacted the average American home and with high unemployment, underemployment and wage pressures weighing on the family budgets – cost increases hit home much faster than in past years.

chart


Augustine Fou, PhD
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Tuesday, March 6th, 2012 news No Comments

Jeremy Lin Is Causing Knicks Ticket Prices To Skyrocket

Source: http://www.businessinsider.com/chart-jeremy-lin-knicks-ticket-prices-skyrocket-2012-2

We have already seen what Jeremy Lin’s popularity means on a world-wide scale. But there has also been a huge impact at the local level. And one of those factors is the cost of going to see the Knicks play.

Courtesy of SeatGeek.com, is a look at how prices for last night’s game between the New York Knicks and Sacramento Kings on the secondary-market changed over the last week. In the six days leading up to the game, prices rose 245%.

So if you were hoping to see the Lincredible Circus, it is going to cost ya…

Knicks ticket prices

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Friday, February 17th, 2012 news No Comments

P&G To Lay Off 1,600 After Discovering It’s Free To Advertise On Facebook (PG)

Source: http://www.businessinsider.com/pg-ceo-to-lay-off-1600-after-discovering-its-free-to-advertise-on-facebook-and-google-2012-1


old spice

Reality appears to have finally arrived at Procter & Gamble, the world’s largest marketer, whose $10 billion annual ad budget has hurt the company’s margins.

P&G said it would lay off 1,600 staffers, including marketers, as part of a cost-cutting exercise. More interestingly, CEO Robert McDonald finally seems to have woken up to the fact that he cannot keep increasing P&G’s ad budget forever, regardless of what happens to its sales.

He told Wall Street analysts that he would have to “moderate” his ad budget because Facebook and Google can be “more efficient” than the traditional media that usually eats the lion’s share of P&G’s ad budget.

This is coming from the man who increased P&G’s adspend by a staggering 24 percent over the two years through October 2011, even though sales rose only 6 percent in the same period.

Note that P&G’s revenues were up 4 percent to $22 billion in the quarter but the company’s costs for sales, general and administrative work were flat.

P&G’s staggering ad budget has become a bit of an issue among analysts. On the call, McDonald and his crew were asked about ad costs three different times! . McDonald eventually said:

As we’ve said historically, the 9% to 11% range [for advertising as a percentage of sales] has been what we have spent. Actually, I believe that over time, we will see the increase in the cost of advertising moderate. There are just so many different media available today and we’re quickly moving more and more of our businesses into digital. And in that space, there are lots of different avenues available.

In the digital space, with things like Facebook and Google and others, we find that the return on investment of the advertising, when properly designed, when the big idea is there, can be much more efficient. One example is our Old Spice campaign, where we had 1.8 billion free impressions and there are many other examples I can cite from all over the world. So while there may be pressure on advertising, particularly in the United States, for example, during the year of a presidential election, there are mitigating factors like the plethora of media available.

P&G’s Old Spice campaign is a textbook example of what the entire company should be doing. The problem is that the entire company isn’t doing it. Check out Mr. Clean’s Twitter stream, for instance. Oh, right—he doesn’t have one.

McDonald’s recent discovery that digital media is free comes after the long-delayed launch of Tide Pods, now scheduled for a month from now but with only a limited supply. It was originally planned for July 2011. The ad budget for that campaign is estimated at $150 million and will come from agency Saatchi & Saatchi.

The problem is that while P&G has struggled to get a single U.S. pod out the factory door, several of its competitors have already launched competing laundry pod products.

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Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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