Amazon might have been the first to launch an e-reader device that captured the attention of a significant number of consumers but its dominant position faces some serious threats. The 2007 introduction of its Kindle generated plenty of buzz and competitors. The book industry in general has suffered declines in recent years but Forrester Research sees the e-book and e-reader device market as a bright sector and expects it to grow. The research concern predicts about 1 million devices will be sold during the current holiday season and perhaps another 6 million units will sell  in 2010.

All of these sales won’t go to Amazon however. Several other companies have introduced devices including Nook from Barnes & Nobles, Reader from Sony and Digital Reader from Irex. These marketers also have to keep Apple on their digital screens. According to Flurry analytics,  the nature of applications released to the App store has shifted dramatically from July to October of this year.  Books now represent 20% of the released apps while games have dropped from 17% down to 12%.  This shift underscores a point made by  Rotman Epps of Forrest Research: “[e]-readers are a transitional technology.” The long-term future of e-reading may well be linked to the ever-evolving smart phone.

It’s too soon to predict the lifespan of e-readers but as Rotman Epps also notes, “2009 is a breakout year” for these devices. Manufacturers and retailers will be increasing ad budgets as they battle for market share.

[Sources: Rose, Adam. Kindle Killers? The Boom in New E-Readers, Time, 10.11.09; iPhone Gets Serious about Books, Flurry, 11.01.09]

Aberdeen Research recently pointed out that the average CMO stays on the job a little under 2 years. During their tenure, some CMOs become success stories. Others, less so. What makes the difference? Aberdeen analysts say the rise in data driven marketing strategies as opposed to ‘winging it’ accounts for the success of best-in-class operators.

Many senior marketing professionals already use data as they develop their plans but most want improvements as survey results indicate:

• Heavily rely on data: 26%
• Use data for marketing decisions but want improvement: 52%
• Not using data but plan to: 18%
• Don’t see the need for data driven marketing: 4%

It’s no secret that the recession has increased the difficulty of acquiring new customers. But collecting and analyzing data on existing customers has allowed many marketers to use traditional acquisition tactics to increase revenues. The best organizations are using data for this purpose as follows:

• Improve cross-selling and up-selling: 35%
• Identify new or emerging customer segments: 29%
• Segment/target customers with more accuracy: 27%

Another effective use of data is to track customer purchases and reference them directly in personalized emails when pitching new products. This is a favorite strategy of best-in-class marketers who also track the return on investment for these campaigns. These marketers are also far more likely to maintain centralized control of customer data and to put systems in place to regularly clean the data. They also use email marketing and web analytics and automate these processes.

Best-in-class marketers are far more likely than average to:

• Segment and target
• Profile customers
• Measure ROMI
• Engage in marketing planning
• Calculate profitability

The most successful CMOs are the ones who can effectively manage data to achieve the ultimate goal of increased sales. According to Aberdeen, this means centralizing and regularly reviewing information, and funding the planning and forecasting process.

[Source: Data Driven Marketing, Aberdeen Group, October 2009.]

Radio station operators have encountered the same threat as other traditional media companies when it comes to their income streams – a shift by advertisers to trendier online media properties.  In response, some radio station companies are moving to the online format which presents a growing opportunity.  Research concern SNL Kagan predicts that online radio revenues, which should reach $441.4 million or 2.7% of the industry total this year, should grow to $827 million by 2013.  At that point, online revenues would comprise close to 5% of the industry total. To improve their prospects in this sector, radio stations will be dressing up their Web sites, and according to SNL Kagan analyst Justin Nielson, they’ll be “embracing online streaming and mobile apps to drive their local base to their multiple platforms.”

Industry watchers disagree about the projected level of overall radio revenue. The industry is expected to bring in about $14.8 billion in 2009, down significantly from 2008. Part of radio’s future is linked to consumer behavior and lately, there has been some good news on that front. An ARAnet study carried out by Opinion Research Council finds that consumers obtain a significant percentage of their news and information from radio. In 2009,  consumers said 19.4% of their media consumption related to radio, an increase of nearly 3% from 2008. U.S. consumers say they find TV to be the most credible information source. However, radio ties with newspaper for second place with each media form claiming 6.3% of the total share.

Marketers who want to broaden the reach of their messages  may continue to find that radio represents a unique and effective way to deliver consumer attention.

[Sources: Media Usage Study, ORC and ARAnet,  Fall 2009; Online Radio Revenue to Jump 12% in 2009]

Few industries have suffered more than auto manufacturing in the Great Recession of 2009.  As a consequence of accepting bailouts from the federal government, Chrysler and GM sharply curtailed their ad budgets this year. Chrysler, in particular, is ready to re- introduce itself as a vigorous company with products targeting consumers who are looking for something new from American manufacturers. To generate interest, the company plans to significantly ratchet up ad spending between now and 2011.

Here’s a rough snapshot of the company’s projected ad spending per new vehicle:

• 2009: $100
• 2010: $170
• 2011: $210

An Advertising Age article cited Joe Phillippi, President of Auto Trends Consulting as predicting a $1.4 billion Chrysler outlay for advertising in 2010, up significantly from this year. Chrysler group CEO Segio Marchionne, known for his turn-around success at Fiat, is driving this spending as he re-establishes Chrysler brands – Dodge, Jeep and Ram.

Look for Dodge vehicles to be repositioned as fun with an emphasis on “refined and youthful”.  Jeep is planning to target its usual adventurers but will also reach for “dreamers – a larger group of people who are time-constrained by family and work, who want authentic gear with the hope that one day they’ll be able to do more and dream less.”  New ads already launched by Ram attempt to portray the brand as optimistic and filled with can-do spirit.

The new branding concepts were shared with analysts, dealers and other interested parties at Chrysler’s five-year plan meeting held last week. Reaction was mixed. Some analysts believed that the company is relying too heavily on traditional media. Others suggested that “there’s a disconnect in the marketing messages for Jeep, Ram and Dodge that the public will find hard to reconcile.” In any case, the company has dramatically increased its marketing spending and other auto manufacturers may follow its lead to maintain their image in the eyes of the consumer.

[Source: Halliday, Jean. Chrysler Hikes spending to Re-Establish Three Brands, Advertising Age, 11.09.09]