21st of April 2008 AdAge Update

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business@theadcompany.com.au

Tony Clemenger

 

Old AdAge Daily Updates can be found at - AdAge Daily Updates.

Advertising & Promotion Campaigns

 

 

Tame billboards, TV, say children's groups

The Australian
Page: 34 : 21 April 2008
Original article by Lara Sinclair

LexisNexis Summary: Advertising & Promotion Campaigns

The Australian Association of National Advertisers has conceded it may have been too relaxed in its attitude to complaints about sex in advertising. A Senate inquiry submission from the Advertising Standards Bureau contained statistics indicating that concerns over sex, sexuality and nudity generated 38 per cent of complaints regarding advertising in 2007. Only about 280 of the estimated 2,000 complaints that came before the board were upheld. Children's advocacy groups, including Kids Free 2B Kids, have called for restrictions on sexual text and images on billboards and during children's TV viewing times to be tightened


 

 

 

Hanes is back - after losing its shirt

The Australian Financial Review
Page: 52 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

US-based underwear company Hanes is relaunching itself in Australia after dropping out of that market in 1995. However, this time it is using a licensing arrangement with a local distribution firm, Simon de Winter, and is prepared to rebuild the brand slowly. Initial sales through David Jones department stores have been promising and the range is now also available in Myer outlets. Simon de Winter is half-owned by Voyager Distributing, a vehicle of Australian retailing sector stalwart Solomon Lew. Brand recognition among consumers of the Hanes name remains surprisingly high in Australia despite the long absence


 

 

 

Knives out as growth forecasts are cut

The Australian Financial Review
Page: 49 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

Media agencies and media buyers are reducing their growth forecasts for Australia's $A13.2m advertising market in 2008. Optimum Media Direction cut its forecast from 7.5% to 7%, while Universal McCann Australia scaled back its prediction from 4.5% to 4%. Citigroup media analysts have reduced their expectations for advertising spending growth from 8.7% to 6.4% for 2008 and from 7.7% to 5.6% for 2009. Citigroup said corporate profitability will serve as a good indicator of the scale of the advertising downturn


 

 

 

Why AANA can't kid around

The Australian Financial Review
Page: 50 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

The Australian Association of National Advertisers (AANA) has released a revised advertising to children code. The new code includes bans on "pester power", the sexualisation of children in advertising, the use of sexual images in advertising aimed at children, and advertising for children in media unsuitable for children. Consumer groups criticised the code as likely to be ineffective, but the AANA knew it had to act or risk the current system of self-regulation being replaced with government regulation


 

 

 

Games torch anger sparks concern

The Australian Financial Review
Page: 50 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

Sponsors of the Beijing 2008 Olympic Games have been surprised by the demonstrations during the Olympic torch relay in Europe and the US. International Olympic Committee (IOC) partners and key sponsors of the relay, Coca-Cola, Lenovo and Samsung, say the demonstrations have not undermined the value of arrangements under which they paid more to sponsor the relay. Industry experts warn the relay demonstrations and the possibility of protests during the Games could damage the Olympics brand and its sponsors. Other sponsors of the IOC include McDonald's, Panasonic and Johnson & Johnson. Sponsors of the Australian Olympic Committee include Qantas Airways and Telstra


 

 

 

Cracking down on green claims

Ethical Investor
Page: 26-27 : April 2008
Original article by Graeme Samuel

LexisNexis Summary: Advertising & Promotion Campaigns

Those promoting products sometimes claim that their products are "green". This may not be the case and the seller is misleading the public, which is against the law. The Australian Competition & Consumer Commission (ACCC) checks "green" claims to ensure that businesses are not making misleading claims. Such misrepresentation can be in many forms, including pictures on the label, catchwords such as "green" or omissions. The ACCC wants companies to stop making sweeping claims that a product is "green" or "recyclable". Such words mean different things to different people. Consumers must do their bit by refusing to be swayed by misleading claims and demanding the truth about each product


 

Products & Services

 

 

Linking with philanthropy

Ethical Investor
Page: 42-43 : April 2008
Original article by Samantha Elley

LexisNexis Summary: Products & Services

Chris Cuffe is known in Australia for his investment acumen. He worked at Colonial First State and Challenger Financial, growing their businesses. After leaving these groups, Cuffe joined Social Ventures Australia (SVA), an independent, non-profit organisation. In early 2008, Cuffe launched the Third Link Growth Fund. This is an investment vehicle weighted towards Australian shares. All fees gained by Third Link investment managers, net of expenses, will go towards the non-profit sector (will help charities and philanthropic organisations). Cuffe is the sole director of the Third Link Fund. The fee structure of the Fund is reasonable - 1.4% per annum with no performance fee. The minimum investment in the Fund is $A20,000


 

 

 

Sigma plans $6m fix for ailing Herron

The Australian Financial Review
Page: 50 : 21 April 2008
Original article by Noelle Waugh

LexisNexis Summary: Products & Services

The product range and packaging of the Herron vitamin and pharmaceuticals brand in Australia will be overhauled at a cost of $A6m. Owner Sigma Pharmaceuticals, which acquired the business in 2003 for $A130m, is launching 20 new items under the brand, which will also be supported by a major campaign designed by advertising firm Hayes Barry Tehan. Herron has seen its market share in the pain killer segment fall from 30% to 18% in the past five years, and will stress its Australian-owned status in the new advertisements. In 2007, Herron's marketing expenditure of $A1m was overshadowed by rivals GlaxoSmithKline and Reckitt Benckiser with $A14.4m and $A8.8m respectively


 

 

 

Glamour not destined for our shores

The Australian Financial Review
Page: 50 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Products & Services

The launch of an Australian version of US fashion magazine "Glamour" has been shelved by News Magazines. The News Corporation subsidiary had acquired the rights to the masthead when it bought FPC Magazines in early 2007 for $A130m. Experts say the division must urgently introduce new titles, particularly weekly ones, if it wants to seriously compete with rival ACP Magazines. The latter is preparing a new fashion title to be called "Grazia" in co-operation with Italian company Mondadori. Meanwhile News Magazines is looking for a replacement for outgoing CEO Tony Kendall


 

E-Business

 

 

Pumped about plan to find cheap petrol

The Australian Financial Review
Page: 13 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: E-Business

A new online business will help Australian consumers to buy cheap petrol. Fuelmarket has been established by Suncorp-Metway, Reg Grundy and Tim Hughes. Grundy is a former TV producer, while Hughes is the former chairman of Macquarie Media Group. The scheme will allow consumers to compare petrol prices and to pre-order fuel. The group will invest $A30 million in the establishment and launch of Fuelmarket. They will own 50 per cent of the business, with the rest owned by the four people who developed the idea. Fuelmarket plans to launch its website by October 2008


 

 

 

MyHome opens door to another investor

The Australian Financial Review
Page: 15 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: E-Business

Part of the online real estate guide, MyHome, has been sold to Harcourts Group Australia for an undisclosed amount. Analysts estimate that less than five per cent of MyHome was sold. Harcourts has joined Elders in investing in the company, which is owned by PBL Media and Microsoft. MyHome has been heavily cross-promoted by PBL Media resources and is growing its business. However, it has still missed its user traffic and revenue targets and remains behind other online real estate sites in Australia


 

Marketing Strategy

 

 

Farmers find their niche as Asia goes with grain

The Australian
Page: 3 : 21 April 2008
Original article by Andrew Faulkner

LexisNexis Summary: Marketing Strategy

Seven South Australian wheat-farming families have joined forces to compete with multinational companies. As Asia increases its demand for fast food, the Flinders Ranges Premium Grain farmers have signed deals with Subway and Wal-Mart, with plans to move into the Chinese take-away market. The growers produce high-quality grain that can be turned into frozen flour, the preferred ingredient of fast-food chains. Australian farmers have done similar correlations in the rice and wool industries


 

 

 

Ticketek lets Veda pop the question

The Australian Financial Review
Page: 51 : 21 April 2008
Original article by Neil Shoebridge

LexisNexis Summary: Marketing Strategy

A new joint venture has been set up in the online marketing research segment in Australia. Ticket brokerage firm Ticketek has formed the alliance with credit bureau Veda Advantage, and aims to have as many as 200,000 subscribers by late 2008. This compares with a total customer database for Ticketek of 2.1 million. Those participating in the surveys can win prizes in the form of free tickets to events Ticketek covers. The online survey portion of the marketing research industry in Australia now commands 30% market share after rapid growth


 

 

 

Gem of an idea pays off

The Australian Financial Review
Page: 15 : 19 April 2008
Original article by Mark Fenton-Jones

LexisNexis Summary: Marketing Strategy

Secrets Shhh, a simulated diamonds company, has 21 outlets around Australia as well as stores in London, Ireland and New Zealand. Most of these are franchises. The chain's Australian stores achieved a 10 per cent increase in revenue last year, to roughly $A23 million. Its founder, Jane Meredith, established the first Secrets Shhh outlet after the stresses of running a Donut King franchise with her partner of 18 years ended the relationship. Meredith says she felt directionless after the split, and credits Sir Richard Branson's book "Losing My Virginity" with helping her recover


 

Consumer Behaviour

 

 

High-end house glut hits property market

The Australian
Page: 3 : 21 April 2008
Original article by Sanna Trad

LexisNexis Summary: Consumer Behaviour

Auction clearance rates throughout Australia continue to be low in mid-April 2008, with Sydney experiencing 49.9%. This compares with a clearance rate of 58.3% in April 2007. In Brisbane, the clearance rate of 37.3% was nowhere near the 65.9% of one year earlier. According to Macquarie Bank's head of property research, Rod Cornish, the low clearance rates are due to the high number of properties for sale, as homeowners and investors struggle in the current economic conditions


 

 

 

Play time for young and old

The Australian Financial Review
Page: 28-29 : 19 April 2008
Original article by Renai LeMay

LexisNexis Summary: Consumer Behaviour

Sales of video game software in Australia rose 43.6% during 2007 and were at an all-time high of $A1.3bn. A marked change in recent years has been that the average age of users has risen and is now at around 26 years, with many more parents, women and retirees owning a video game console. Benefitting especially from this trend is Nintendo, the maker of the Wii and DS products, which cannot meet the overwhelming demand for them. New segments in the video games demographic are "social" gamers that play online or "casual" ones that spend only about half an hour a day on their consoles. The Australian games development industry is healthy and may attract more private equity funding in future, while retailers are also enjoying the boom in console and games sales


 

 

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