Time is running out for BuzzFeed, Mashable

BuzzFeed has given up on going public for now and Mashable is looking for an emergency buyer. The honeymoon period looks to be over for online news websites — left fragile by a model built almost entirely on advertising.

Less than two years ago, blog turned news site Mashable was valued at $250 million, with Time Warner among its investors.

Today, its value has plummeted by 80 percent, and it’s reportedly about to be sold to Ziff Davis. The publisher did not respond to requests for comment.

Meanwhile, revenues that fell short of expectations at BuzzFeed — built on a combination of pop culture and social networks — mean it is no longer expected to go public next year.

The website has just announced it is letting go of around 100 of its 1,700 employees.

These sites — like others founded in the last 10 years — promised investors huge growth driven by advertising as traditional media battled for survival.

But in the space of a few months, the tide has turned — as Google and Facebook’s chokehold on the online advertising market reaches a critical point.

In 2017, the two internet giants have snapped up 63 percent of advertising revenue, compared to 58 percent last year, according to market researcher eMarketer. Next year, they are projected to rake in a 67 percent share.

“Advertisers are increasingly demanding more granularity in targeting capabilities to reach consumers,” Monica Peart, eMarketer’s senior director of forecasting, said in late September.

“Google and Facebook have positioned themselves at the front of this demand curve.”

‘It’s not magic’

“It’s not magic,” said Alan Mutter, a professor at the University of California Berkeley specializing in the relationship between journalism and technology.

“Web publishers can publish an unlimited number of pages and get an unlimited number of page views but there’s only a limited number of people buying advertising.”

In this standoff with the two Californian behemoths, it’s new players who stack up the disadvantages — as two thirds of their traffic come from social networks and search engines, mostly controlled by Facebook and Google.

And “if you’re spending money on creating content, you’re competing with the masters of the internet who spend nothing” on producing content, Mutter explained.

But despite the brutal reality, few believe these new media will collapse completely — like the internet bubble of the early 2000s.

It may be 20 percent lower than projected, but with revenue of $280 million according to US media, BuzzFeed is still set to end the year with growth.

For Charlie O’Donnell, founder of seed stage investment fund Brooklyn Bridge Ventures, a website financed entirely by advertising is “still viable.”

“But is it viable to the tune of a billion-dollar exit? That’s tough,” he said.

Promised returns on investment and plans to enter the stock market are likely nothing but memories now — except for Vice, the only organization that has reached a viable scale.

Without reaching such a size, success requires building an audience around a specialized subject and consequently attracting advertisers — as seen with Politico, Eater and technology site The Verge.

But for those starting out today, prospects for success are limited.

“I would have to hear a very compelling story that you’re going to serve some new vertical that nobody ever thought of before,” former journalist Mutter said of investing in a new venture.

“I don’t know what that would be. This is very hard to do.” AB

source: business.inquirer.net

AlDub’s gross earnings as product endorsers: P200M and counting

ALDUB—the popular noontime TV love team of Alden Richards and Maine Mendoza—has become the country’s hottest endorser of consumer products.

In just seven months since its debut on TV in July 2015, AlDub’s combined earnings have reached P200 million—based on conservative estimates by sources interviewed by Inquirer Lifestyle.

The number of TV commercials, billboard and print ads that bear their faces, as a pair or individually, is currently pegged at 41: McDonald’s, Talk N’ Text, O+ Ultra, 555 Sardines, 555 Carne Norte, Zonrox, Bear Brand Adult Plus, Tide, Downy, Datu Puti, Rejoice, Hapee Toothpaste, Coca-Cola, Lady’s Choice, Bingo Cookie Sandwich, Gard Shampoo, Cadbury, Eskinol, CDO Funtastyk Young Pork Tocino, Snow Caps Glutathione, Belo, Bench, Bench Fix Salon, Metrobank, Neozep, Nescafe, Nescafe Creamy White, Doña Maria Rice, Boardwalk, Nestea, Technomarine, PhilPlans, Avon, Betadine Fresh Bliss, Lucky Me, Lemon Square Cheese Cake/Lava Cake, Sterling Notebook, Magnolia Ice Cream, Purefoods Tender Juicy Hotdog, and Modess.

Alden commands a higher amount than Maine, a source who requested anonymity said: “Mga P5 million si Alden, P1.5 million si Maine.”

Those figures, according to the source, became standard rates after AlDub’s series of McDonald’s TV ads were enthusiastically received by the public.

For Alden’s 555 Carne Norte and Maine’s 555 Sardines endorsements, each was paid “definitely seven figures,” said another source. “The rates were reasonable, relative to their popularity.”

A third source, with direct knowledge of the 555 ads’ impact, noted: “Sales increased by over 50 percent overall. Social media stats went through the roof in terms of number of Twitter impressions, Facebook page views and interaction. Brand equity improved; the ads helped 555 stand out in a crowded category of more than 10 brands.”

For Alden’s Hapee toothpaste ad, “he received “P5 million,” said a fourth source.

Based on the 41 product endorsements, AlDub’s combined gross earnings have reached at least P200 million—less 20 to 30 percent commission for GMA Talent Center and Television and Production Exponents (Tape), Alden and Maine’s management, respectively.

That’s not even counting Alden’s fees from shows or mini-concerts here and abroad.

Contracted to sing three songs on minus-one in a Christmas event last year, Alden was paid P350,000—the same amount he will receive in each of a couple of shows this month and in April.

In what could have been the biggest offer yet for a virtually untested tandem—as live performers in a full-length show, at least—an audacious  producer named Joed Serrano dangled P20 million for a two-night AlDub Valentine concert.

The offer was eventually declined by AlDub’s handlers, deemed a wise decision because Alden and Maine have zero experience as concert acts.

Observers hope that, in due time, AlDub—or even just Alden—would express a desire to expand their talent and be recognized as legitimate artists. Imagine how much they’d be worth by then.

source: lifestyle.inquirer.net

Offbeat humor, upbeat messages dominate Super Bowl 50 ads

NEW YORK— From a strange creature called “Puppymonkeybaby” to a tear-inducing Audi ad, Super Bowl ads ran the gamut this year from offbeat humor to heartfelt messages.

On advertising’s biggest night, Chrysler celebrated Jeep with an ad filled featuring black-and-white portraits of veterans, kids and pop icons. In Audi’s spot, a depressed aging astronaut remembers his joy for life by driving an Audi sports car with his son. And in a quirky Doritos ad, a fetus in a sonogram appears to rocket out of the womb to chase a bag of chips the mother angrily tossed away.

The goal for advertisers: to stand out and win over the 114 million-plus people watching the big game on Super Bowl Sunday, much the way the Denver Broncos triumphed over the Carolina Panthers. With ads costing a record $5 million for 30 seconds this year, the stakes are high to stand out from the 40-plus advertisers and be remembered.

In general, advertisers played it safe with universally liked celebrities such as Anthony Hopkins (TurboTax) and Ryan Reynolds (Hyundai), cute animals and pro-America themes.

“It’s been a pretty safe night,” said David Berkowitz, chief marketing officer at advertising agency MRY. “There’s relatively little going over the top.”

Offbeat humor reigned with a creature called “Puppymonkeybaby” — pretty much exactly what it sounds like — in an ad for Mountain Dew’s Kickstart. The ad sought to show that three great things go together, since Kickstart combines Mountain Dew, juice and caffeine.

“It’s on my list of the weirdest ad of the night, but it’s very catchy and people will be talking about it,” said Kelly O’Keefe, a marketing professor at Virginia Commonwealth University.

Heartfelt messages were in abundance too. SunTrust’s ad urged people to take a breath and feel better about their financial health. BMW’s Mini urged people to “defy labels.”

Most ads managed to avoid the somber tone struck last year, when an ad for Nationwide about preventable household accidents bummed out many in the audience.

There were a couple of misfires. Two pharmaceutical ads highlighted unappealing digestive conditions. One promoted an anti-diarrhea medication Xifaxan with a small-intestines mascot taking a seat at the Super Bowl. Another sought to raise awareness about “opioid-induced constipation.”

“This just isn’t a topic that people want to hear about during a Super Bowl,” said Villanova University marketing professor Charles Taylor.

Offbeat humor

Mountain Dew’s ad might have been the weirdest ad of the night, but Doritos’ ad also seemed likely to divide viewers. The spot showed a couple during a sonogram. When the mother throws away a bag of Doritos, the fetus seems to zoom after it, to the consternation of all present.

“It caught you a little off guard, but it fit the brand,” said O’Keefe.

Some Super Bowl watchers agreed. Brian Kearney, from Morris County, New Jersey, was watching the game with about 15 people and said the ad was a hit with his friends.

“I thought it was hysterical, we all cracked up,” Kearney said.

Other ads with offbeat humor: Bud Light featured Amy Schumer and Seth Rogen traveling around America promoting “The Bud Light Party.” A Shock Top ad showed actor T.J. Miller trading insults with the brewery’s talking orange wedge mascot. And the outdoor goods-and-clothing company Marmot showed a man palling around with an actual marmot he appears to be falling for, all to illustrate falling in love with the outdoors.

Money Money Money

Eight years after the financial meltdown, financial companies are feeling more comfortable promoting their products and services. Six advertised in the big game, including including SunTrust Banks, PayPal, Quicken Loans, Intuit brand and Intuit’s TurboTax and Social Finance Inc.

Most promoted optimistic messages about money. TurboTax, for instance, enlisted Anthony Hopkins to get out the message that you can file your taxes for free with TurboTax. PayPal’s music-video style ad asked people to embrace “New Money.”

“We’re officially over the mourning of 2008 (financial crisis),” said Mediapost columnist Barbara Lippert.

Cinematic ads

Some advertisers created mini-movies. Toyota went long with a 90-second ad depicting bank robbers who use a Prius 4 to escape from police. LG enlisted Liam Neeson in a futuristic spot showing off LG’s new OLED 4K TV. Hyundai’s “The Chase” ad, echoed “The Revenant,” showing people escaping grizzly bears by using Hyundai’s remote start feature.

“Super Bowl advertisers are sticking with light themes,” said Tim Calkins, a marketing professor at Northwestern’s Kellogg School of Management. “Last year we had serious ads about fathers and mortality. This year the ads are funny and creative.” TVJ

source: business.inquirer.net

Google increases user privacy controls

SAN FRANCISCO- Google increased privacy controls for users and rolled out a website on Monday that answers frequently asked questions in response to increasing concern over how the search giant collects and uses its massive amounts of data.

Users have been able to control certain privacy settings for months or years, such as whether to save web browser and location history, which is also used in targeted advertising.

But managing the controls is confusing and time consuming because the settings are in various places across the web that are not always easy to find.

Now users will be able to use My Account, which provides a privacy checkup and security checkup, or lists where people can check off which data they want to be public and private.

Google's new website answers frequently asked questions, such as whether the company sells personal data and what information is given to advertisers.

"We knew that users find privacy and security really mysterious so we wanted to make it very approachable," said Guemmy Kim, product manager for account controls and settings.

Data control has become increasingly important to users in recent years as more day-to-day activity has moved to the Internet.

In 2013, Edward Snowden leaked classified documents that showed the U.S. National Security Agency was engaging in mass collection of phone records, placing companies that have enormous amounts of data, such as Google, Facebook and Apple, under increasing scrutiny.

Only 9 percent of people in a recent Pew survey felt they had a "lot" of control over their data.

Monday's rollout comes on the heels of newly increased app permissions for Android, which Google announced at its annual developer’s conference last week. The new system mirrors the app permissions on Apple's iPhones, which do not allow apps to automatically access numerous types of data, such as location or phone contacts.  — Reuters