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How Do Consumers Feel About “Native Advertising”?

18 May

What is “native advertising” and why are some people upset about it?

Consider this commentary from eMarketer:

“Social networks, news sites, digital content aggregators, and streaming media services are rife with ads that are integrated into the content experience. According to a new eMarketer report, Native Advertising: An Emerging Consensus for a New Kind of Ad, these so-called ‘native ads’ are providing new ways for marketers to reach target audiences and new avenues of monetization for content sites that are under intense revenue pressure.”

“Although business prospects for native advertising are positive, the medium has its detractors. Some media executives and marketers are wary of the blurring of lines between content and advertising that occurs with native ads, particularly in the context of news sites. Others question the return on investment of these ads, arguing that native ads cannot scale for multiple placements.”

Take a look at the chart below and click on it for more from eMarketer.

 

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Will Calorie Counts Stop the Criticisms Directed at Coke?

17 May

The answer to the question raised in the title above is probably no — especially with the most severe critics of the company and its soft drinks.

Here’s what Coke is planning to do, as reported by Mike Esterl and Paul Ziobro for the Wall Street Journal: “Coca-Cola Co. is broadening distribution of its low-calorie drinks and said it will put calorie counts on the front of its packaging around the world as it ramps up global efforts to counter criticism its sugary drinks are fueling obesity. The beverage giant also promised to sponsor physical activity programs and reiterated its commitment to not market its drinks to children under 12 years old in each of the more than 200 countries and territories that it operates. The moves come as Coke and other soda makers such as PepsiCo Inc. find their products under rising scrutiny in a growing number of countries amid climbing obesity rates. Coke, the world’s biggest drink company, is the main target despite diversifying beyond its namesake cola into dozens of other categories including fruit juices, bottled water, and sports drinks.”

Click the image of Coca-Cola’s CEO Muhtar Kent to read more.

Photo by the Associated Press

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Netflix Is Streaming Ahead

11 May

In late 2011, Netflix CEO Reed Hastings was widely criticized for the way in which he decided to separate the Netflix DVD-rental business from its Web streaming service. Some customers were confused by the new pricing strategy; others were angry. But, in this era, things sure turnaround quickly.

In the most recent issue of Businessweek, Reed Hastings is on the cover, with the caption: “The Man Who Ate the Internet” (a title bestowed because of the amount of bandwidth consumed by Netflix and it customers).

As Ashlee Vance writes: “On a normal weeknight, Netflix accounts for almost a third of all Internet traffic entering North American homes. That’s more than YouTube, Hulu, Amazon.com, HBO Go, iTunes, and BitTorrent combined. Traffic to Netflix usually peaks at around 10 P.M. in each time zone, at which point a chart of Internet consumption looks like a python that swallowed a cow. By midnight Pacific time, streaming volume falls off dramatically.”

Click Hastings’ photo to read more.
 

Photo by Bryce Duffy

 

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Are Some Price Discounts an Illusion?

5 May

When is a sale a sale? Click here to learn more:
 

Are Some Price Discounts an Illusion?

 
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Want to Launch an App? How Much Money Do You Have?

4 May

In the good old days (think two years ago), it was relatively inexpensive to launch a new app for a smartphone. While this is still possible, some app firms are finding that the cost of a launch is much higher than they were anticipating.

For example, as Jessica E. Lessin reports for the Wall Street Journal: “Mobile-game maker ZeptoLab UK recently released ‘Cut the Rope: Time Travel,’ its first major title in the popular ‘Cut the Rope’ series since 2011. The launch won’t be a quiet one. The company has been building buzz for the game through a six-week promotion with Burger King Worldwide, which began featuring the game in its kids’ meals in March. Overall, ZeptoLab says it will spend around $1 million launching “Cut the Rope: Time Travel,” which traces the adventures of the green monster Om Nom as he meets versions of himself in time periods like the Renaissance and the Middle Ages. On top of that sum, which includes the costs of animation, the company is counting on some free help by promoting the game inside its other titles. By contrast, the company spent almost nothing to promote the first ‘Cut the Rope’ game when it was released in 2010. It gave the title to a third-party publisher to distribute, then sat and waited.”

Click the image to read more and then watch the video clip.

Image source: ZeptoLab

 

 

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