In a time where trust in companies is at an all time low, it’s more valuable than ever. That’s not a moral or values based statement, it’s about the impact on the bottom line.
This chart, from a presentation at McKinsey’s Chief Marketing And Sales Officer Forum, shows how much investors and consumers reward an outstanding reputation:
Despite the incredible value of reputation, according to McKinsey’s Betsy Holden, companies aren’t taking full advantage of their opportunities to increase it:
One thing they can do to improve their reputation is bolster their social media presence. They can publish material related to the above, like information about transparency or environmental efforts, and can use it as a customer service tool. Being accessible and accountable increases trust.
That route may be particularly effective because social media is trusted by consumers at a rapidly increasing rate:
1. the overall advertising “pie” will shrink because the new efficiencies enabled by “digital” will allow advertisers to spend less (e.g. media placement dollars) and still drive the same or greater business impact
2. there will be a continued shift to digital, especially for companies that have products that benefit from more consumers coming online to do more research — e.g. bigger ticket items or items that require more consideration and research
3. because of the massive reach of Facebook, it will siphon branding dollars that used to be allocated to traditional one-way mass media such as TV; but in the short term magazines and newspapers will “hurt” the most, since they can’t even offer competitive mass reach any more – relative to Facebook.
Whether it’s because of regulation, a conservative outlook, or simply because they don’t see the benefit, some industries have been incredibly slow to embrace the digital age.
However, even in the industries where it’s not widely adopted, making significant investments in digital technology and integrating it into an organization has a significant positive impact on the bottom line. Capgemeni Consulting estimates that ‘digital beginners,’ those companies who have barely touched digital technology are 24 percent less profitable than average.
“‘Beginners’ have barely started, usually because they’re unaware of the opportunities, ‘Fashionistas’ adopt the newest or sexiest digital innovations, but without a cohesive strategy or eye to maximizing business value, ‘Digital Conservatives’ have a cohesive vision, but are slow to invest in new technology, and finally, the ‘Digirati,’ who both invest in digital and integrate it with their whole organization.”
Here’s where major industries fit on the spectrum of going digital, from high technology at the top, to the pharmaceutical industry way at the bottom:
Read the full report here
Android’s dominance of the global smartphone is getting out of hand.
Android’s unit shipments nearly doubled on a year over year basis, growing 91 percent. Apple was up 57 percent. Android is taking share from BlackBerry, Symbian, Linux, and others.
Thus far, Android’s incredible rise has had little impact on Apple’s financial performance. It’s still printing money. It’s the world’s most valuable company.
But, Tim Cook has to be worried that his company has become a niche player in the biggest global computing market.
Here’s a table breaking it down:
Three months can make all the difference, at least if you’re drafting estimates at Strategy Analytics. Now that we know 14 million iPads shipped in the third quarter, the analyst group believes that Apple’s tablet market share dropped from 68.3 percent in the spring to 56.7 percent in the summer. All of the shift is attributed to Android — researchers think that shipments of Google-based tablets surged from 7.3 million to 10.2 million, handing the platform 41 percent of an increasingly crowded space. It’s the “collective weight” of so many Android-reliant companies leaping into the market rather than any one of them pulling ahead, Strategy Analytics says. We wouldn’t be shocked if a few Kindle Fire HD sales played a part.
More than a few wildcards still surround the figures and their long-term impact. First is that these are estimates, not concrete results: companies like Amazon steadfastly refuse to provide shipment numbers and leave most of the final tally beyond Apple to educated guesswork. It’s also an understatement to say that the market will change dramatically before 2012 is over. Between Windows 8‘s launch, possible Nexus 7 upgrades and two new iPads, there are a lot of pieces moving on the chessboard.
Strategy Analytics claims Android reached 41 percent of tablets in Q3, iPad may have felt the heat originally appeared on Engadget on Thu, 25 Oct 2012 20:38:00 EDT. Please see our terms for use of feeds.
The bloom is slightly off the rose for Facebook. After a banner first post-IPO quarter, it’s recording a net loss in its fiscal third quarter of $59 million despite its revenue climbing to $1.26 billion — a big swing that the company is blaming on payroll tax tweaks and income taxes, which becomes clearer when you learn that the company posted a $311 million profit before factoring in standard accounting practices. Facebook hasn’t said exactly what had the biggest impact, although its closing the Instagram deal wouldn’t have helped matters. Still, the company isn’t glum about its prospects: following an earlier mention of the milestone by founder Mark Zuckerberg, the earnings report touts that there are over 1.01 billion active Facebook users who check in at least once a month, over 604 million of which were mobile. Between a reworked iOS app, a freshened Facebook Messenger and new ad-friendly SDKs, the social network is bracing for a potential bonanza ahead.
Facebook posts $59 million net loss in fiscal Q3, touts 1.01 billion active users originally appeared on Engadget on Tue, 23 Oct 2012 16:32:00 EDT. Please see our terms for use of feeds.
Retail is going through a period of flux. From big box stores to specialty shops to online vendors, everyone’s trying to figure out how to survive.
It has become all about the ability to adapt as technology transforms the retail landscape.
“As a shopper, your basic needs don’t change,” says Piers Fawkes, founder and editor-in-chief of PSFK. “But your behavior is dependent on the technology that’s around you.”
The PSFK consulting team’s Future of Retail report identifies nine major trends that are part of the “seismic shift” changing the retail world, and provides examples of companies that are making an impact.
Consumers want to be more informed than ever, and brands are fulfilling that demand
Retailers are training their staff to be experts in whatever field they’re in.
In an effort to curb the impact of showrooming, Best Buy’s redesigned stores include multiple points of customer service and coaching — the Geek Squad Solution Center, a home theater design center and the Pacific Home & Kitchen section.
Retailers are letting customers make decisions for them
Take the Barclaycard Ring — a “community-powered” credit card service from Barclays. There’s a forum which lets members suggest features, and it also shares the card’s financial statements and performance numbers with the members so that they can see how the project is doing.
Personal data is being used to customize everything
Perhaps it’s a bit creepy, but when consumers decide to share personal data with retailers (like purchase histories and biometric fit profiles), they’re often using it to customize the experience for each customer.
Neiman Marcus, for example, has a “location-aware” app called NM Service which sends customer preferences right to its sales staff. A user checks in when they get to the store, letting staff give recommendations tailored for the individual.
Bulls on the economy are constantly looking for any reason to be optimistic on the U.S. economy.
Personal consumption accounts for around 70 percent of GDP, so any help to the consumer would be welcome.
“There are many reasons to be skeptical of forecasts for a significant overall reacceleration in consumer spending in 2H,” writes Citi economist Steve Wieting. “But there are some bright spots.”
Wieting dug up a nugget that could provide a little stimulus: tax refunds. From his note to clients:
As Figure 12 shows, gross tax refunds have increased relative to disposable income in recent years. Tax refunds are a seasonal phenomenon, and ordinarily don’t deserve much attention. But as they have increased in amplitude, their impact may be more notable. Payments within the first quarter were particularly large and early. For the consumers relying on such payments, savings rates are low, and consumption is closely and immediately tied to cash flows.
Facebook had a great Q1 2012, with a 41 percent increase in ad rates (the cost-per thousand impressions that advertisers pay), according to TBG Digital, a major seller and manager of Facebook advertising campaigns.
This bodes well for Facebook’s Q1 earnings, which the soon-to-go-public social network has yet to report.
The only bad news: performance softened somewhat in the U.S., where Facebook’s growth overall is slowing.
TBG’s conclusion was based on a sample of 327 billion ad impressions from 235 Facebook advertising clients. What follows are TBG’s estimates of Facebook’s Q1 ad performance, accompanied by commentary from TBG CEO Simon Mansell and his team.
(If you want the Q4 2011 Facebook numbers for comparison, click here.)
CPM rates are up 41%
“Facebook is earning more from Marketplace ads which could have a positive impact on their imminent IPO. We have seen an increase of 41% in Cost per Thousand impressions (CPM) since Q1 2011, which indicates how much Facebook earns per ad served. Average CPM has increased by 15% from Q4 2011 to Q1 2012 with the US seeing an increase of 11% and the UK seeing an increase of 13% during the same period.”
Cost of advertising up by almost 23%
“Cost per Click (CPC) prices have increased by almost 25% since last quarter with the biggest increase in France (35%) followed by the US (20%). There has been a 34% increase in US CPC costs in the past year. Unbalanced supply and demand could be the reason behind these rises. Growth in new users may be slowing but the social network is becoming more attractive to advertisers.”
Ad engagement decreases in the US
“The US experienced a reduction in average Click Through Rate (CTR) of 8% in this quarter with the top five territories seeing an average decrease of 6%. France saw a drop of 13%. CTR is generally a measure of how engaging users find the ad, affected by the quality of the creative and how appropriate the ad’s targeting. However, this drop comes after Facebook has increased the number of ads on a page, sometimes showing up to seven at a time, which could also be a contributing factor to this change.”
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.
Collaborators – Digital Profs
- Netflix vs Blockbuster - Perfect example of an industry replaced by a more efficient version of itself
- Try On New Glasses in Warby Parker's Virtual Booth
- The JKWeddingDance video was real; the viral effect was MANUFACTURED - Post 1 of 2
- Marketing Costs Normalized to CPM Basis for Comparison
- Coke vs Pepsi vs Dr Pepper
- ActiveHours Gives You Your Paycheck Early, Free of Charge
- Samsung 52 inch HDTV $9.99 at BestBuy - purchase receipt below (6:21a eastern time August 12, 2009)
- Facebook advertising metrics and benchmarks
- 90-9-1 or 1-9-90 Rule of Social Media Participation
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