16th of June 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

 

 

Hannan backs his digital bet

The Australian Financial Review
Page: 17 : 16 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

BlueFreeway non-executive chair, Michael Hannan, has denied suggestions that he would consider selling parts of the company. Hannan said there is nothing "fundamentally wrong" with the group, despite plans to review some of its smaller companies. Hannan, who owns 19.9 per cent of BlueFreeway, announced plans for a convertible notes issue valued at $A6.5 million on 13 June 2008, as well as a rights issue which he hopes will raise around $A12 million


 

 

 

Ten's TV earnings downgraded - seriously

The Australian Financial Review
Page: 15 : 14 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

The Ten Network forecasts that its TV division could post a double-digit earnings decline in 2007-08. Nick Falloon, the chairman of the Australian broadcaster, says the division's earnings are expected to drop by roughly 10 per cent. Falloon says TV advertising is being adversely affected by "external economic conditions". It is less than three months since he forecast that EBITDA for the year to August 2008 would exceed the $A237 million achieved in 2006-07. Ten's share price has fallen by over 30 per cent in calendar 2008. WIN Corporation has boosted its stake in Ten from 10.9 to 11.9 per cent

 

Products & Services

 

 

Biggest telco loses grip on iPhone

The Australian Financial Review
Page: 15 : 16 June 2008
Original article by Tracy Lee

LexisNexis Summary: Products & Services

The iPhone will not be sold by Telstra on 11 July 2008; negotiations between the telco and manufacturer Apple are believed to have stalled. On its much-anticipated Australian launch date, the iPhone will be sold by smaller rivals Optus and Vodafone, which are fighting for greater market share of third-generation device customers. Telstra and Apple are believed to have disagreed on the terms and conditions of the iPhone's release, including having Telstra's Sensis products as preloaded tools. Analysts believe Telstra will release the iPhone at a later date


 

 

 

Your favourite brands are a bit lazy

The Australian Financial Review
Page: 51 : 16 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Products & Services

National Australia Bank (NAB) has the most valuable portfolio of brands owned by an Australian company. Its brands include NAB, MLC, Clydesdale Bank and Bank of New Zealand. A survey by Brand Finance found that Billabong International has the "hardest working" brand, accounting for 41% of its total enterprise value, compared with 11.5% for NAB. Coco-Cola Amatil and Lion Nathan also had high brand values as a proportion of enterprise value. Woolworths and Telstra have Australia's second and third most valuable brands. Telstra's brands, which include Telstra, Big Pond and Sensis, account for only 8% of its enterprise value


 

 

 

Oil shock jumpstarts a new epoch

The Australian Financial Review
Page: 20-21 : 14 June 2008
Original article by Rod Easdown

LexisNexis Summary: Products & Services

The major car manufacturers are determined to develop electric cars that would revolutionise personal transportation. The Chevrolet Volt, a plug-in electric car with a petrol engine, is expected to be launched in America in late 2010. Tesla Roadster, the high-performance electric sports car, has been in production since March 2008. It can travel up to 350km between charges. Its acceleration performance is impressive - the car can reach 100 km per hour in four seconds


 

 

 

Russell partners with ANZ for pension banking solutions

Investor Weekly
Page: 2 : 11 June 2008
Original article by Victoria Papandrea

LexisNexis Summary: Products & Services

Russell Superannuation and the ANZ Bank have jointly developed a new product for older Australians. The solution, which is a one-stop shop superannuation, pension and banking experience, will be available to those Australians over 60 who are expected to transition into retirement through part-time work. The project involves adding ANZ's integrated transactional banking facilities to the Russell Private Active Pension solution. The product will be available from 1 July 2008

 

E-Business

 

 

Telstra chases the holy grail of advertising as media ambitions pay off

The Australian
Page: 29 : 16 June 2008
Original article by Lara Sinclair

LexisNexis Summary: E-Business

Telstra BigPond CEO Justin Milne has highlighted the company's 43% growth in third-generation network users at the Cannes Advertising Festival. Milne said on 15 June 2008 that BigPond's advertising strategy for media content is highly effective; each customer's search and browsing history is monitored so that advertisers do not waste spending, and only target relevant customers. Users can access free content such as weather and news, and are charged for downloading content such as films and television shows


 

 

 

Radio Rentals plans to sell online

The Australian Financial Review
Page: 17 : 16 June 2008
Original article by Noelle Waugh

LexisNexis Summary: E-Business

Radio Rentals intends to launch an online consumer electronics store before December 2008. MD John Hughes said the new venture will target a wealthier demographic under a separate brand to its low-income targeted rentals business, and will be in competition to Harvey Norman and JB Hi-Fi. Hughes believes the website will encounter low start-up costs and will be profitable early on, as it will fill a gap in the Australian electrical goods market


 

 

 

Yahoo! embraces Google after jilting Microsoft's play

The Australian Financial Review
Page: 18 : 14 June 2008

LexisNexis Summary: E-Business

Yahoo has signed a deal with Google which will allow Google to sell some of the advertisements that appear next to internet search results. Yahoo expects the deal to add $US800 million to its annual sales. Soleil Securities' Laura Martin criticised the deal as having a negative impact on Yahoo's strategic position. According to Microsoft, the deal between Yahoo and Google will give Google more than 90 per cent of the search ad market. Herb Kohl, the chairman of the Senate Judiciary Committee, said the committee would examine any formal arrangement between Yahoo and Google

 

Marketing Strategy

 

 

Spending withstands downturn

The Australian Financial Review
Page: 48 : 16 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Marketing Strategy

Companies have broadly maintained their marketing budgets despite evidence of a slowing economy in Australia. A Growth Solutions survey of directors and CEOs commissioned by the Australian Institute of Company Directors found that 49% intend to increase their marketing expenditure, while 45% will maintain expenditure at current levels. Only 1% plan to cut spending, while 4% were unsure. The survey results contradict expectations of a decline in marketing expenditure


 

 

 

The bidders' friends go franchising

The Australian Financial Review
Page: 17 : 14 June 2008
Original article by Mark Phillips

LexisNexis Summary: Marketing Strategy

Morrell & Koren has started franchising in Melbourne and Sydney. There are also plans for the buyers' advocate group to establish offices in Dubai and London. Greg Hocking, well-known from the Hocking Stuart network in Melbourne, has been appointed director of franchising at Morrell & Koren. The first franchisee is Damian Taylor, an ex-director of Hodges. When David Morrell and Christopher Koren founded Morrell & Koren in 1997, it was Melbourne's only buyers' advocacy. There are 61 buyers' advocates in 2008


 

 

 

Pizza chain plans 100 outlets

Inside Retailing
Page: 5 : 9 June 2008
Original article by Lyn White

LexisNexis Summary: Marketing Strategy

Pizza Capers, which appeared at 16th spot in the 2008 BRW Fast Franchises list in terms of revenue growth, is seeking to expand. The company was founded in the Brisbane suburb of Toowong in 1996 by Anthony Russo and Scott Geiszler and started franchising in 2005. There are now 25 Pizza Capers stores in Brisbane, and Russo and Geiszler want to open 24 more Pizza Capers outlets across Queensland by the end of 2008. Geiszler says that he and Russo want to start entering the Sydney and Melbourne markets in 2009


 

 

 

Allied to roll out Awesome Entertainment concept

Inside Retailing
Page: 5-6 : 9 June 2008

LexisNexis Summary: Marketing Strategy

Allied Brands has advised that it intends to develop a new franchise concept, Awesome Entertainment. It will be based on the same business model used by its Awesome Water franchise and will initially involve the provision of flat screen televisions and associated entertainment packages. Peter Graham, the MD of Allied Brands, said it expects Awesome Entertainment to operate profitably as soon as it commences operations. Allied Brands reported in April 2008 that it was on track to achieve, at worst, its previously forecast net profit for the year to June 2008 of $A7.25 million


 

 

 

Judge hammers Allphones in ACCC case

Inside Retailing
Page: 7-8 : 9 June 2008

LexisNexis Summary: Marketing Strategy

A court in Australia has ruled against the operator of the franchise chain, Allphones. One disgruntled franchisee of Allphones has won his case against the chain in the Federal Court of Australia in Sydney. The Australian Competition & Consumer Commission (ACCC) is also taking legal action against Allphones, voicing very similar concerns. Allphones has around 150 outlets and may face substantial compensation payments to existing and former franchisees and possible penalties for breaches of the Franchise Code of Conduct under the Trade Practices Act. The ACCC has alleged that Allphones failed to pass on to franchisees bonuses and incentives earned from carriers, falsified payment summaries from carriers and threatened franchisees

 

Consumer Behaviour

 

 

Forecast is for a Coles change

The Australian Financial Review
Page: 64 : 16 June 2008
Original article by Simon Evans

LexisNexis Summary: Consumer Behaviour

Coles Group CEO, Ian McLeod, concluded his Australia-wide supermarket tour on 12 June 2008 with a briefing to 20 key staff members in Hobart. McLeod was lured to Australia from Britain by Wesfarmers MD, Richard Goyder, who believes the executive will help engineer a substantial turnaround at Coles. An apparent downturn in retail spending is expected to impact upon the group's strategic plans, particularly since one-third of its total earnings are currently derived from discretionary spending


 

 

 

Nine laggard pulls new viewers

The Australian Financial Review
Page: 48 : 16 June 2008
Original article by Neil Shoebridge

LexisNexis Summary: Consumer Behaviour

WIN Corporation's Channel Nine station in Perth has managed an improved performance. A larger marketing budget and better programs from PBL Media's Nine Network stations on the east coast were factors in the result. While still trailing Seven Network's Perth station, Nine in Perth has increased its night-time audience by 5%, including an 18% increase among 25 to 54-year-olds. WIN MD, David Butorac, expects a break-even result from Nine Perth in 2007-08 after a $A1.5m loss in 2006-07


 

 

 

MySpace hopes revamp will fill the void

The Australian Financial Review
Page: 47 : 16 June 2008
Original article by Julian Bajkowski

LexisNexis Summary: Consumer Behaviour

News Corporation announced plans to revamp its MySpace website on 15 June 2008. According to the group, MySpace will undergo a significant upgrade on 18 June, in the hope of improving the effectiveness of its search tools and making its home page more attractive. Both MySpace and rival Facebook were rated equally in a recent market share report by internet rating agency Comscore, despite MySpace having a significantly higher number of US users. News Corporation announced in April 2008 that MySpace would not met its 2008 sales target of $US1 billion ($A1.06 billion) as a result of worsening US economic conditions

 

 

 

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