Daily Mail submits a vague New Year’s resolution 1 Dec 2016 The UK tabloid's parent wants to slim down a portfolio which spans media, events, education, and property information. Weak advertising makes a new svelte form a priority. But if boss Paul Zwillenberg doesn't offer more detail the pledge could end like many post-Christmas diets.
Viewsroom: Should Facebook root out fake news? 17 Nov 2016 The social network is under fire for allowing erroneous and downright misleading media reports on its platform that may have swayed the U.S. presidential election. Meanwhile, Canada and Mexico prepare for a Donald Trump presidency. And Warren Buffett eats his words on airlines.
Newspaper business model imposed by market 2 Nov 2016 New York Times quarterly print revenue declined a fifth and the Wall Street Journal is radically redesigning to cope with tough conditions. A long-running debate by publishers over the merits of advertising versus subscriptions seems quaint. The choice has been made for them.
Trump cold shoulder for TV ads may set the trend 30 Sep 2016 TV loves the GOP presidential nominee, but he has spent only $78 mln so far on political ads. Broadcasters usually count on an election-year windfall, but spending is forecast to fall and digital upstarts like Snapchat are in the mix too. Trump's playbook could become a classic.
Facebook blunder may stem online TV tide 23 Sep 2016 The $370 bln social network for two years erroneously inflated how long users were watching videos. It's an embarrassing mistake that should give advertisers a stronger negotiating position with Facebook. It also could prompt a recalibration of media strategies and budgets.
WPP shoos away grey swans 24 Aug 2016 The ad giant posted a strong increase in sales in the second quarter, driven by growth in Europe. Sources of uncertainty like Britain’s exit from the EU are a risk for the industry. But WPP’s scale and spread makes it resilient, at least to risks than can be foreseen.
NBC’s gravity-defying Rio gymnastics may fall flat 12 Aug 2016 The network has reaped $1.2 bln from Olympics ads, a fifth more than its London take. But 9 pct fewer Americans are tuning in due to uninspiring coverage and too many commercials. It'll prompt advertisers to strike a hard bargain in future games, unless NBC devises a new routine.
Facebook’s ad dominance masks Snapchat threat 27 Jul 2016 The $350 bln social network's meteoric revenue growth has displaced Yahoo and others, but its 1.5 bln-plus audience is skewing older. Meanwhile, Evan Spiegel's disappearing-messaging service is a hit with the kids. Disruptors are always in danger of being disrupted.
EU’s Google antitrust push slower, more scattered 14 Jul 2016 The European Commission has hit the tech giant with a third charge, saying it abused search dominance on third-party websites. It also reinforced a claim, first made in 2010, that Google favored its own shopping service. A speedier, focused campaign would better serve justice.
Rough ride ahead for the descendants of Mad Men 29 Jun 2016 A damning report backed by P&G and other brand advertisers combined with a potential pullback in marketing during uncertain times spells trouble for big agencies. With revenue per employee slowing at stalwarts like WPP, job cuts on Madison Avenue look inevitable.
Inter Milan typifies China’s muddy sporting goals 6 Jun 2016 Chinese money is pouring into foreign teams, rights and agents. Now Suning is paying $307 mln for 70 pct of Inter Milan. A mainland retail giant is not an obvious owner for a top Italian soccer club. But these deals are all about anticipating a politically backed sports boom.
Dell, Dex sum up dozy bondholders in a nutshell 17 May 2016 The PC maker may face long-term decline yet is selling 30-year debt as part of a $20 bln package to help pay for EMC. The Yellow Pages publisher is hitting its fifth bankruptcy in seven years. They’re apt examples of how short-term yield boosts entice bond buyers to ignore risk.
Baidu selloff understates long-term health risks 10 May 2016 Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.
TV’s green shoots will wither from digital heat 2 May 2016 Advertisers may commit $19 bln to U.S. prime-time shows – the latest sign of big money flowing to broadcasters such as CBS. Short-term quirks account for much of it, though. Madison Avenue’s love affair with the likes of YouTube and Facebook looks more durable in the long run.
Zuckerberg tightens grip as Facebook cash flows 27 Apr 2016 Amid a tripling of profit and 50 pct rise in sales, the social network is creating a third class of non-voting stock. It cements control for CEO Mark Zuckerberg in the event of big M&A or staff rewards. At least the weak corporate governance also may help philanthropic deeds.
Google’s app store grows into risky opportunity 21 Apr 2016 Alphabet’s internet-advertising cash cow disappointed in Q1, but continued rapid growth in what it dubs “other revenues” provided a bit of solace. The company’s Android applications store is becoming steadily more important to the company – not to mention antitrust regulators.
Bickering ad men promote more women than tech does 31 Mar 2016 A discrimination lawsuit at a WPP unit has led boss Martin Sorrell to trade barbs with Publicis CEO Maurice Levy over women’s advancement. Both firms, though, do better on gender equality at senior levels than Facebook or Google. That’s a rare edge over their new rivals.
Alphabet sinks further into antitrust quagmire 22 Feb 2016 The European Commission may beef up its anti-competitive complaint against Google. U.S. authorities are probing the search giant, too. Proving abuses will be difficult, but the expanding scope means the company will have to expend more energy to pull itself out of the bog.
Adtech deal arms China’s web groups against giants 11 Feb 2016 A consortium including search specialist Qihoo and gaming firm Kunlun are bidding $1.2 bln for Norway’s Opera Software. Despite a fat premium, the offer is not overly pricey. Plus, Opera could help the buyers move into lucrative niches not yet taken by Baidu, Alibaba or Tencent.
Al Jazeera floored by oil, ratings double-whammy 13 Jan 2016 The broadcaster is shutting its U.S. cable news unit three years after paying $500 mln for a network. High-profile lawsuits added to viewer skepticism and low ad revenue. But the sharp drop in the oil price may have been the final straw for its Qatar government backers.