A lot of people are upset about the iPad Mini’s price.
“Better but costs more” is a gamble. “Better and costs the same or less” is a sure thing. And the iPad is hard to compare to any previous Apple product other than the iPod. The iPod and iPad didn’t enter mature markets — they entered nascent markets with no strong competitors and established themselves as unquestioned market leaders. The iPad Mini’s $329 starting point leaves a price umbrella in tablets that Apple never left for MP3 player competitors.
Don’t Miss: Don’t Buy An iPad Mini (Yet)! >
You can save a boatload of money by buying eyeglasses online, but it’s a bit of a gamble because you can’t actually try them on. That is, until now. Previously mentioned Warby Parker will now ship you five pairs to try for five days, no obligation to buy.
Select any 5 pairs of glasses that you’d like to try and the company will send them to you for free. (For those wondering, the program is available for contiguous US residents only.) You can try them on in the comfort of your home and ask your friends and family for their opinions or get feedback from Warby Parker experts on Facebook over the next five days.
Send the glasses back (return shipping is free), and if you like any of them, order the frame(s) with your prescription. Glasses cost $95 including prescription lenses.
As an added feel good bonus, for every pair Warby Parker sells, the company donates a pair of glasses to a person in need.
Warby Parker Home Try-On Program | Warby Parker
Proctor and Gamble unexpectedly cut guidance this morning, sending shares down in pre-market trade.
In a statement, Procter said “the revisions to the Company’s fourth quarter outlook are primarily driven by slower than anticipated top-line growth from slower than expected market growth rates and market share softness in developed regions and negative impacts from foreign exchange rate changes.”
Translation: high unemployment coupled with slow-to-no GDP growth in developed markets are destroying the top line.
At a Deutsche Bank panel today, Procter plans to show this slide that sums it up pretty nicely.
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.
- WANT MORE? Check out Business Insider’s new Advertising news channel.
- Deutsche Bank: More Layoffs Planned at MDC Partners’ Ad Agencies
- Here Are The Ads You Will See On Super Bowl Sunday
- YES! David Lynch Premieres Second Strange Commercial For His Coffee Company
Apple’s price to earnings ratio is at a relatively paltry 14 right now, and it’s driving Apple bulls crazy.
The chart below, which shows Apple’s shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple’s PE was 13.3.)
What’s wrong with this chart?
Zaky explains: “Now even though Apple’s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple.”
Of course, there’s more than one way to value a stock. If you value it based on trailing free cash flow, it’s arguably priced fairly, says our Henry Blodget.
- CHART OF THE DAY: Watch Out Apple, Here Comes The Android Market
- Apple Just Had Its ‘Best November Ever,’ Says Ticonderoga
- The Steve Jobs Biography Is The Best Selling Book Of The Year For Amazon
Buying glasses online can save you tons of money but the downside is you don’t get to try the glasses on and see how they look on your face. Upload a picture to Warby Parker and see different styles on your face.
Last year we shared out exploits in buying super cheap glasses online—it was awesome and we got great glasses for only $8!—but as we noted then it’s a gamble, albeit a cheap one, to buy glasses without trying them on.
Eyeglass retailer Warby Parker has an excellent virtual try on booth on their site which alleviates the can’t-try-it-on shoppers anxiety. Upload a picture of yourself, try out the different frames, and get a feel for how they look on your face. If you absolutely love a pair you find there you can snag them for $95 or just take the style and go shopping on other sites. Make sure to read our guide to scoring cheap eye glasses before you go shopping for some important pointers.
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.
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Coke vs Pepsi vs Dr Pepper
- Marketing Costs Normalized to CPM Basis for Comparison
- 3G calling, no registration, and totally free
- The Top Endorsement Earners In Each Sport
- AOL's Plan To Steal TV Ad Dollars Is Totally Working
- drag2share: The Most Pinned Brand On Pinterest Doesn't Even Use A Pinterest Account [THE BRIEF]
- Groupon launches Breadcrumb iPad app, vows to not be a typical POS
- HP Mini 311 Nvidia ION Netbook Hackintosh'ed
- #SESNY: Toward a Performance Mindset for All Advertising
- Tips for Marketers Selecting a Digital Agency
- Context Is Not King or Queen; It's Just Necessary
- 2013 New Year's Digital Marketing Resolutions
- The Good, Bad, and Ugly of Online Campaign Ratings and eGRPs
- Why You Should Banish the Net Promoter Score Immediately
- Digital Strategy To-MAY-to vs. To-MAH-to
- The Agency-Client Relationship is Forever Changed
- Targeting vs. Privacy - Who Will Win?
- Digital + Traditional = Unified Marketing
- May 2013 (66)
- April 2013 (70)
- March 2013 (114)
- February 2013 (89)
- January 2013 (136)
- December 2012 (96)
- November 2012 (130)
- October 2012 (147)
- September 2012 (94)
- August 2012 (92)
- July 2012 (112)
- June 2012 (71)
- May 2012 (82)
- April 2012 (80)
- March 2012 (122)
- February 2012 (114)
- January 2012 (129)
- December 2011 (60)
- November 2011 (54)
- October 2011 (29)
- September 2011 (17)
- August 2011 (30)
- July 2011 (18)
- June 2011 (19)
- May 2011 (23)
- April 2011 (23)
- March 2011 (52)
- February 2011 (69)
- January 2011 (108)
- December 2010 (82)
- November 2010 (67)
- October 2010 (68)
- September 2010 (44)
- August 2010 (101)
- July 2010 (61)
- June 2010 (28)
- May 2010 (28)
- April 2010 (26)
- March 2010 (33)
- February 2010 (21)
- January 2010 (12)
- December 2009 (4)
- November 2009 (2)
- October 2009 (14)
- September 2009 (6)
- August 2009 (19)
- July 2009 (34)
- June 2009 (11)
- May 2009 (4)
- April 2009 (6)
- March 2009 (13)
- February 2009 (32)
- January 2009 (25)
- December 2008 (1)
- October 2008 (1)
- June 2008 (1)
- November 2007 (1)