Week of April 6, 2009

'08 Internet Ad Spending Up...But Slowing

Friday, April 10, 2009

Internet ad revenue was up for 2008 by more than 10%. According to a new report by Price Waterhouse, Internet ad revenue was up 10.6% to $23.4 billion in last year. While the increase was 10.6% for the year, the fourth quarter increase was a much more modest, 2.4% for Q4 2008 compared with Q4 2007. Besides the Internet, cable TV was the only medium to register an increase from 2007. Cable increased 7.8% from '07 to a total of $21.4 billion.

Here are the 21008 revenue figures for the major media (in billions):

* Television: $46.8

* Newspapers: $34.4

* Internet: $23.4

* Cable TV: $21.4

* Radio: $17.2

* Directories: $13.8

* Magazines: $12.7

New Opportunities in a Down Economy

Thursday, April 9, 2009

Advertising Age recently published some categories that, even during this rough economic environment, are doing extremely well in 2009. For example, gun makers are doing great business as enthusiasts worry about more government regulation. As people worry more and sleep less sales of anti-depressants and sleeping pills are rising. People may be tightening their belts in other areas but those in search of love are keeping subscriptions for online dating services skyrocketing. As the economy slides impulse buying is increasing sales of $1 DVDs for Coinstar's Redbox (those big red DVD for sale boxes in McDonald's and Walmart). The old adage "when one door closes another one opens" is apparently true during this recession too.

Free iPhones in Japan

Wednesday, April 8, 2009

Apple started offering its iPhone in Japan in July of 2008. Anecdotal evidence would seem to indicate that it has not fared that well. Softbank Mobile, the exclusive carrier for the iPhone in Japan, is giving away the 8MB model for free (previously $235) through May to new subscribers who sign a two-year contract. The 16GB model will be sold for $118 (down from the original $350).

Reasons may include the general state of the economy and competition from other handsets available in Asia, long a market with fast adoption of new technologies, making the iPhone less of a phenomenon. SoftBank Mobile is also discounting its unlimited data plan is being discounted from $62 to $45.60 per month for both existing and new subscribers.

Bookmark for Public Radio

Tuesday, April 7, 2009

Sky Blue Technologies has created an indispensible tool for public radio fans, the Radio Bookmark. It's a small device, about the size of a USB thumb drive, which comes on a key chain. The Radio Bookmark doesn't record anything; it simply creates a time stamp when you hit the button as soon as you hear something interesting. After the initial software setup, the bookmark will store your preferences with respect to the station you listen to and create your own home page to store links to the shows you're interested in.

When you plug the Radio Bookmark into the USB port on your computer, it stores the bookmarks for the programming you're interested in. It can also create links to related programming. The Radio Bookmark is just for public radio; there is no commercial radio version so far. And the only way to get it is directly from the participating public stations. A number of them offered it as an enticement for listeners to subscribe during public radio's recent spring fund-raising drive.

EMI to Outsource Physical Distribution

Monday, April 6, 2009

EMI has joined the other labels in announcing that they will outsource their physical distribution (for most product) starting this summer. Sony DADC will distribute all of the EMI product, except for the EMI Christian Music Group. While Universal and Warners have already made similar moves, this is not the first time EMI has dabbled with outsourcing. In a number of territories overseas, such as India, EMI has gone further, also outsourcing its digital distribution.

The question now is, will any of the labels go further and look to outsource promotion or publicity anytime in the near future? The music business is seemingly in a race with the newspaper industry to see which one will change the most. Imagining a world with virtual labels, outsourcing nearly everything is not hard to do.