24th of July 2008 AdAge Update

More later - and if you wish to comment -

business@theadcompany.com.au

Tony Clemenger

 

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

Advertising & Promotion Campaigns

 

 

Nine wants 35pc of ad budgets

The Australian Financial Review
Page: 16 : 24 July 2008
Original article by Neil Shoebridge

LexisNexis Summary: Advertising & Promotion Campaigns

Nine Network signalled a target of a 35 per cent share of TV advertising revenue at an event for media buyers and advertisers on 22 July 2008. The Australian free-to-air network's CEO, David Gyngell, confirmed plans to approach media buying agencies with a "super brands" strategy, which he said would involve a request for a 35 per cent share of their clients' ad budgets. Nine sales director, Peter Wiltshire, said this would represent around 70 per cent of the capital city TV ad market. Nine's share fell to 31.3 per cent in 2007-08, against Seven Network's 38.7 per cent and Ten Network's 30 per cent


 

 

 

Hotel's papal joy

The Australian Financial Review
Page: 5 : 24 July 2008
Original article by Lisa Carapiet

LexisNexis Summary: Advertising & Promotion Campaigns

World Youth Day celebrations resulted in increased revenues for Sydney's hotels despite expectations the event would have the opposite effect. Horwath HTL Australia and STR Global have reported the hotel occupancy rate rose almost 2% to 77% during the five-day event, compared with the previous week. Room rates were 5% higher and revenue per room increased by almost 7%. There had been expectations that corporate demand would decline during the Catholic Church event, after warnings about disruptions in the CBD

 

Products & Services

 

 

Material shortfall to drive growth of Orica mine arm

The West Australian
Page: 57 : 23 July 2008
Original article by Philip Hopkins

LexisNexis Summary: Products & Services

Orica MD and CEO, Graeme Liebelt, detailed plans for expansion of the group's mining services division on 22 July 2008. Liebelt said a looming global shortage of ammonium nitrate as a result of reduced production in China and Russia would create opportunities for Orica, which is planning to demerge its consumer products business and undertake a $A900 million rights issue. Liebelt said coal's status as a "key feedstock" in the production of ammonia could make the generation of gas expensive under an emissions trading scheme, although he admitted that the ultimate effect on Orica would depend on the design of the Australian scheme

 

E-Business

 

 

Girls put their money where their mouse is

The Sydney Morning Herald
Page: 32 : 24 July 2008
Original article by Paul McIntyre

LexisNexis Summary: E-Business

Sportgirl's online store venture is exceeding sales expectations in July 2008 after just 10 months. CEO Elle Roseby said that turnover was growing 30% monthly, and forecast that online sales will be equivalent to one of Sportsgirl's metropolitan stores within two years. Australian retailers are well-known to be behind international counterparts in terms of e-commerce, with the common perception that it is not viable in terms of profit due to logistical and technical complications. Sleepwear maker Peter Alexander's online store however accounts for $A11 million of its $A50 million annual sales. A growing number of retailers are becoming aware that younger customers are demanding, and expecting, online expansion by their favourite stores

 

Marketing Strategy

 

 

Old hand says he'll show others how it's done

The Sydney Morning Herald
Page: 32 : 24 July 2008
Original article by Paul McIntyre

LexisNexis Summary: Marketing Strategy

Media mogul John Singleton believes the mid-2008 launch of his new ad agency, Banjo, is well-timed. Corporate marketing departments will in coming months be forced by economic hardship forced to cut costs. Singleton thinks this is a good thing, as the departments are often incumbent and bureaucratic. He believes Banjo is in a good position to pick up these companies' work. Singleton is also critical of media agencies, as many have split from creative departments in the past 20 years. Vast amounts of money are being spent on the production of an ad, only to then be distributed and managed by less-than-able media workers


 

 

 

Beef cuts as dry bites

The Weekly Times
Page: 104 : 23 July 2008
Original article by Kate Dowler

LexisNexis Summary: Marketing Strategy

The continued drought has impacted on the levies Meat and Livestock Australia (MLA) collects from beef producers. This in turn is expected to reduce its domestic and international marketing programs for 2008-09. MLA's domestic marketing budget is tipped to fall by $A2.3 million to $A16 million, while its international marketing budget is expected to decline by $A3.2 million to $A19.7 million. Kerry Melrose, the chair of the Australian Meat Industry Council, said the forecast cut in the MLA's domestic marketing budget is of particular concern, while he also said the MLA's current marketing should focus on mince rather than casserole beef

 

Consumer Behaviour

 

 

Melbourne sticks with Ramsay

The Age
Page: 14 : 24 July 2008
Original article by Larry Schwartz

LexisNexis Summary: Consumer Behaviour

The Seven Network narrowly won the TV ratings battle in Melbourne in the week ended 19 July 2008, with a 26.8 per cent share of viewers. The Nine Network had 26 per cent, while Ten was a distant third with 22.9 per cent. However, Nine's current affairs stalwart, "60 Minutes", was the top-rating show in Melbourne, with 566,000 viewers, while it also claimed the top spot nationally. Meanwhile, celebrity chef Gordon Ramsay seems to be out of favour with audiences, with "The F Word" gaining just 832,000 viewers nationally, although it attracted 301,000 viewers in Melbourne


 

 

 

Nine counts on switch-back

The Sydney Morning Herald
Page: 32 : 24 July 2008
Original article by Paul McIntyre

LexisNexis Summary: Consumer Behaviour

Australian TV network, Nine, is confident that it will regain viewers after the Beijing 2008 Olympic Games. Seven Network hopes that its coverage of the event in August 2008 will lead to higher ratings for the last quarter of the year. At Nine's programming launch on 22 July, CEO David Gyngell said that, after the last two Olympic Games, audiences reverted to their previous viewing patterns at once. Gyngell and media buyers admitted that Seven had new programs but advertisers and media buyers were also impressed by Nine's programming strategy


 

 

 

Not tightening belts, buying new ones

The Australian
Page: 2 : 24 July 2008
Original article by David Uren

LexisNexis Summary: Consumer Behaviour

Three per cent rises in the cost of imported clothing and furniture over the past three months indicate consumers have money to spend. While the Australian Bureau of Statistics claims the rise in the cost of clothing during the June 2008 quarter related to the conclusion of summer sales, Brian Redican, of Macquarie Bank, says recent history has shown that overall, retail clothing prices have tended to drop in the first six months of the year. He is surprised the June 2008 quarter price rises have been so strong, given the high Australian dollar


 

 

 

Brisbane wallets given biggest workout

The Australian Financial Review
Page: 9 : 24 July 2008
Original article by John Kehoe

LexisNexis Summary: Consumer Behaviour

Data released on 23 July 2008 shows fuel costs, loans and deposits as the major elements in Australia's consumer price index. Brisbane's cost of living is increasing the fastest. The price of gas in Western Australia jumped by 6.3% in the June quarter, but the price was up in all capital cities. Other data reveals that Sydney is the most expensive Australian city in which to live and is the 15th most expensive compared with other cities around the world.

 

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