WARC downgrades global advertising spend forecast:
The figures, contained in WARC's latest International Ad Forecast, represent cuts in the expected combined growth rate of printed, online, television, outdoor and radio advertising spend of 0.5% in 2012 and 1.5% in 2013.
Taking into account forecast inflation, the report predicts that global ad spend will rise by just 1.8% and 1.6% this year and next.
Monday, November 26, 2012
Americans Consume 11+ Hours of Media Daily
Americans Consume 11+ Hours of Media Daily: U.S. adults fit more than 11 hours of media content into the average day in 2012. In the past 4 years, time spent with mobile has increased 273% while time spent with print has decreased 31%.
Wednesday, November 21, 2012
Resolute Idles Fort Frances Kraft Mill
Resolute announces indefinite idling of Fort Frances kraft mill
Resolute Forest Products recently announced the indefinite idling of the kraft mill and paper machine number 5 (PM5) at its pulp and paper operation in Fort Frances, Ontario. The kraft mill has an annual production capacity of approximately 200,000 metric tons of market pulp, while PM5 has an annual capacity of 105,000 metric tons of groundwood specialty printing papers. "The markets for these products are challenging and are expected to remain so. The kraft mill situation is particularly difficult given Fort Frances' operating configuration and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill," said Resolute's President and Chief Executive Officer, Richard Garneau. "Our kraft mill's drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner." Resolute is exploring alternative product possibilities for its Fort Frances pulp mill, which will be idled in a manner that will protect the equipment. The idling of PM5 is driven by the decrease in consumption as well as the high value of the Canadian dollar." PM5 will also continue to operate until late November. Approximately 239 employees will be impacted by the idling.
Resolute Forest Products recently announced the indefinite idling of the kraft mill and paper machine number 5 (PM5) at its pulp and paper operation in Fort Frances, Ontario. The kraft mill has an annual production capacity of approximately 200,000 metric tons of market pulp, while PM5 has an annual capacity of 105,000 metric tons of groundwood specialty printing papers. "The markets for these products are challenging and are expected to remain so. The kraft mill situation is particularly difficult given Fort Frances' operating configuration and the recent decision by a key customer to stop consuming the pulp supplied by Resolute to its mill," said Resolute's President and Chief Executive Officer, Richard Garneau. "Our kraft mill's drying capacity is limited to about 40 percent of its production capacity, making it impossible to continue operating the mill in a profitable manner." Resolute is exploring alternative product possibilities for its Fort Frances pulp mill, which will be idled in a manner that will protect the equipment. The idling of PM5 is driven by the decrease in consumption as well as the high value of the Canadian dollar." PM5 will also continue to operate until late November. Approximately 239 employees will be impacted by the idling.
DMA-Marketers Bullish On Growth
DMA finds marketers bullish on growth of digital and direct marketing: Seventy-five percent of marketers said they are bullish about growth prospects for digital and direct marketing, according to the Direct Marketing Association's Quarterly Business Review for the third quarter.The figure is up slightly from the second-quarter survey, in which 72% of respondents said they were bullish about growth prospects. When asked to rate their confidence in the growth of digital and direct marketing on a scale of 1 to 5 (with 1 representing low confidence and 5 representing high confidence), respondents gave an average score of 3.91, up slightly from 3.85 in the second quarter.
Market Outlook For Latin American Companies Mixed
Mixed 2013 market outlook for Latin American companies
Market fundaments for pulp producers are expected to be weak in 2013, according to a new report by Fitch Ratings. According to Joe Bormann, Managing Director and lead author of the report, 'Pulp prices should remain under pressure due to growth of global market pulp capacity by about 8% over a 12 months period, while demand growth should remain around 2%. For pulp producers in Latin America, free cash flow should show improvements vis-a-vis 2012, but remain negative. Capital expenses should begin to taper off after reaching high levels during 2012. Acquisitions should also decline, as companies continue to seek to improve the strength of their balance sheets.'
Market fundaments for pulp producers are expected to be weak in 2013, according to a new report by Fitch Ratings. According to Joe Bormann, Managing Director and lead author of the report, 'Pulp prices should remain under pressure due to growth of global market pulp capacity by about 8% over a 12 months period, while demand growth should remain around 2%. For pulp producers in Latin America, free cash flow should show improvements vis-a-vis 2012, but remain negative. Capital expenses should begin to taper off after reaching high levels during 2012. Acquisitions should also decline, as companies continue to seek to improve the strength of their balance sheets.'
Finnish Forest Ind-Operating Environment Challenging
Finnish Forest Industry in January-September 2012: Operating Environment Challenging:
The production volumes of the forest-based sector decreased or remained unchanged in January-September.“The competitive ability of the Finnish forest industry is being tested to the extremes by market conditions and the constant rise in costs. Finland must retain a stronger competitive position than our rival countries, as this is the only way to ensure that forest industry operations remain viable in our country,” says Timo Jaatinen, Director General of the Finnish Forest Industries Federation. Finland produced 5.1 million tonnes of pulp in January-September, roughly the same amount as in the corresponding period of 2011. Pulp exports were up 16% to 1.9 million tonnes from the previous year.
The production volumes of the forest-based sector decreased or remained unchanged in January-September.“The competitive ability of the Finnish forest industry is being tested to the extremes by market conditions and the constant rise in costs. Finland must retain a stronger competitive position than our rival countries, as this is the only way to ensure that forest industry operations remain viable in our country,” says Timo Jaatinen, Director General of the Finnish Forest Industries Federation. Finland produced 5.1 million tonnes of pulp in January-September, roughly the same amount as in the corresponding period of 2011. Pulp exports were up 16% to 1.9 million tonnes from the previous year.
Good Housekeeping Mag New logo
http://mrmagazine.wordpress.com/2012/11/16/and-the-winner-is-a-new-logo-look-for-good-housekeeping-starting-with-the-January-issue/
After few months of testing, Good Housekeeping magazine has settled on a new logo that it will usher nationwide with its January issue. The magazine has been testing two new logos emphasizing the word GOOD over the word Housekeeping. Last week, in an ad in The New York Times, Good Housekeeping revealed the logo that seems to have won the test.
After few months of testing, Good Housekeeping magazine has settled on a new logo that it will usher nationwide with its January issue. The magazine has been testing two new logos emphasizing the word GOOD over the word Housekeeping. Last week, in an ad in The New York Times, Good Housekeeping revealed the logo that seems to have won the test.
'USA Today' Relaunches iPad App
'USA Today' relaunches iPad app: USA Today has relaunched its iPad app, featuring a new design and several new capabilities. The app, available from the iTunes app store, provides larger images and live video coverage.
Tablet Sales To Overtake Laptops This Season
http://www.mediapost.com/publications/article/187728/tablet-sales-to-overtake-laptops-this-season.html#axzz2CrkXvVqB
The “post-PC” era may not have an official starting point, but this may have to do for now. According to NPD DisplaySearch, this is the season in which tablet sales will finally outpace laptop sales in the U.S. market. Senior Analyst Richard Shim writes in the company blog this week that in Q4 tablet shipments will hit 21.5 million units -- not only matching but far surpassing the 14.6 million projected for notebook sales. “Starting in 2013 in North America, tablet shipments are expected to exceed notebook shipments on an annual basis for the first time,” he writes. On a global basis, notebooks will still out-ship tablets until 2015.
The “post-PC” era may not have an official starting point, but this may have to do for now. According to NPD DisplaySearch, this is the season in which tablet sales will finally outpace laptop sales in the U.S. market. Senior Analyst Richard Shim writes in the company blog this week that in Q4 tablet shipments will hit 21.5 million units -- not only matching but far surpassing the 14.6 million projected for notebook sales. “Starting in 2013 in North America, tablet shipments are expected to exceed notebook shipments on an annual basis for the first time,” he writes. On a global basis, notebooks will still out-ship tablets until 2015.
AAM-Ditital-Only Pubs And New Requirements
http://www.adweek.com/news/press/pubs-go-digital-only-face-new-requirements-145329
Newsweek might have been the most high-profile magazine to go digital-only, but it's probably not the last. And so the Alliance for Audited Media—as the Audit Bureau of Circulations has renamed itself—has endorsed new guidelines for print publications that go digital-only. The new guidelines, adopted at the AAM's Nov. 14-16 board meeting, say that when a publication makes that transition, it must give subscribers the option of receiving the digital subscription; converting to another print publication; or receiving a refund for the remainder of the subscription. The Newsweek announcement was a catalyst for the move.
Newsweek might have been the most high-profile magazine to go digital-only, but it's probably not the last. And so the Alliance for Audited Media—as the Audit Bureau of Circulations has renamed itself—has endorsed new guidelines for print publications that go digital-only. The new guidelines, adopted at the AAM's Nov. 14-16 board meeting, say that when a publication makes that transition, it must give subscribers the option of receiving the digital subscription; converting to another print publication; or receiving a refund for the remainder of the subscription. The Newsweek announcement was a catalyst for the move.
News Corp Eyes Simon & Schuster
http://online.wsj.com/article/SB10001424127887324851704578131420027504306.html
News Corp NWSA 0.40%., owner of HarperCollins Publishers, has expressed interest to CBS Corp. CBS -0.09% about acquiring its Simon & Schuster book business, according to people familiar with the talks.The people described the discussions as preliminary and cautioned that a deal isn't imminent. News Corp. owns Dow Jones & Co., which publishes The Wall Street Journal.
News Corp NWSA 0.40%., owner of HarperCollins Publishers, has expressed interest to CBS Corp. CBS -0.09% about acquiring its Simon & Schuster book business, according to people familiar with the talks.The people described the discussions as preliminary and cautioned that a deal isn't imminent. News Corp. owns Dow Jones & Co., which publishes The Wall Street Journal.
e-books And The Chinese e-market
http://usa.chinadaily.com.cn/culture/2012-11/20/content_15944008.htm
Markus Dohle, chairman and CEO of Random House, says that to fit into the global trend of digital transformation, the Chinese e-market should not get too used to low-priced content but offer e-books with a premium price that readers will buy. While the US market started with digital content and devices, and then the premium-price segment followed naturally, the Chinese market lacks such premium content. "The Chinese market is the one with growing importance, but its existing business mode and pattern are different from any other market we're operating in," Dohle says during his first-time visit to China in late October. "Print will always be important - no matter the percentage of profit split," he says, "while digital becomes more and more important."
Markus Dohle, chairman and CEO of Random House, says that to fit into the global trend of digital transformation, the Chinese e-market should not get too used to low-priced content but offer e-books with a premium price that readers will buy. While the US market started with digital content and devices, and then the premium-price segment followed naturally, the Chinese market lacks such premium content. "The Chinese market is the one with growing importance, but its existing business mode and pattern are different from any other market we're operating in," Dohle says during his first-time visit to China in late October. "Print will always be important - no matter the percentage of profit split," he says, "while digital becomes more and more important."
Tuesday, November 20, 2012
The Story of Mill Towns in a Changing Industry
http://www.startribune.com/business/179601951.html?refer=y&refer=y
The North American paper industry is in rapid decline. Historically a bulwark in the forests of Minnesota, mills have cut thousands of workers and are competing for a shrinking market. A mill in Sartell that closed this year after a Memorial Day explosion was the latest to go dark.
The North American paper industry is in rapid decline. Historically a bulwark in the forests of Minnesota, mills have cut thousands of workers and are competing for a shrinking market. A mill in Sartell that closed this year after a Memorial Day explosion was the latest to go dark.
River towns in the forest from eastern Washington to the coast of Maine have lost more than a hundred paper mills in a wave of consolidation in little more than a decade -- a trend most people in the industry expect to continue. Wisconsin has lost nine paper mills since 2005.
Graphic Packaging Buys Contego's Food Carton Business
Graphic Packaging Holding Company Agrees to Acquire Contego's European Food Carton Business:
Graphic Packaging Holding Company (NYSE: GPK), a leading provider of packaging solutions to food, beverage and other consumer products companies, announced an agreement to acquire Contego Cartons, a leading food and consumer product packaging company based in the United Kingdom. Contego is owned by Platinum Equity.
Graphic Packaging Holding Company (NYSE: GPK), a leading provider of packaging solutions to food, beverage and other consumer products companies, announced an agreement to acquire Contego Cartons, a leading food and consumer product packaging company based in the United Kingdom. Contego is owned by Platinum Equity.
RDA Reports Q3 Results
RDA Revenues Drop by $82 Million in Q3:
The Reader’s Digest Association, Inc. had a rough third quarter, at least according to its financial results released Tuesday—revenue decreased $82.3 million to $230.1 million, a decline of 26.3 percent from the same period in 2011.
The results show that there was some improvement, with the losses narrowing by $2.8 million on a normalized basis. The revenue declines, the company says, were primarily due to a lower active customer base on books and home entertainment products, and a reduction in promotional investment across Europe and Asia, among other things.
The Reader’s Digest Association, Inc. had a rough third quarter, at least according to its financial results released Tuesday—revenue decreased $82.3 million to $230.1 million, a decline of 26.3 percent from the same period in 2011.
The results show that there was some improvement, with the losses narrowing by $2.8 million on a normalized basis. The revenue declines, the company says, were primarily due to a lower active customer base on books and home entertainment products, and a reduction in promotional investment across Europe and Asia, among other things.
David Zinczenko to Leave Rodale
David Zinczenko to Leave Rodale:
David Zinczenko, senior vice president and editor-in-chief of Men's Health, is leaving Rodale, the company has confirmed following a report by New York Post's Keith Kelly. Rodale says the decision was mutal to not renew his contract at the end of the year.
David Zinczenko, senior vice president and editor-in-chief of Men's Health, is leaving Rodale, the company has confirmed following a report by New York Post's Keith Kelly. Rodale says the decision was mutal to not renew his contract at the end of the year.
Have Publishers Let Competitors Position Their Media?
Have Publishers Let Competitors Position Their Media?:
Media buyers who buy the products publishers sell now divide the media they manage into three categories.
Earned media, largely social media where organizations "earn" exposure by posting content on services like Facebook, LinkedIn, or Twitter.
Owned media, media a marketer owns like their company website, newsletter, or blog.
Paid media, third party media, which is most of what publishers sell to marketers.
How did this happen? These category names came into common use around 2008 when social media was being added to media budgets. With the need to contrast social media with traditional media, the social media centric thinking of the time renamed traditional media as it contrasts to social, suddenly we became "paid media." This label casts a negative implication every time it is used.
Media buyers who buy the products publishers sell now divide the media they manage into three categories.
Earned media, largely social media where organizations "earn" exposure by posting content on services like Facebook, LinkedIn, or Twitter.
Owned media, media a marketer owns like their company website, newsletter, or blog.
Paid media, third party media, which is most of what publishers sell to marketers.
How did this happen? These category names came into common use around 2008 when social media was being added to media budgets. With the need to contrast social media with traditional media, the social media centric thinking of the time renamed traditional media as it contrasts to social, suddenly we became "paid media." This label casts a negative implication every time it is used.
2012 Ad Growth Projection at 5.9%
A
Wall Street firm has increased its growth projection for the overall U.S. ad
business for 2012, bumping it up from 4.9% to 5.9%. Big drivers include local
TV stations and cable outlets, which drew huge revenues from political
campaigns.
Time May See Editor-in-Chief Change
Martha Nelson, a veteran of People and InStyle who is currently the No. 2 as the editorial director of the company, is expected to move into the top spot.
Advance May Cut Newspaper's Delivery Schedule
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