Posts Tagged ‘recession’
CNN Direct Response Segment
Friday, March 6th, 2009
Newspaper Ad Revenue Falls: Is there Any Hope?
Friday, January 30th, 2009
The Newspaper Association of American (NAA) recently reported newspaper revenue fell almost two billion dollars in the third quarter 2008 – that’s down 18 percent. The loss includes both print and online revenue, also down for the second quarter.
Signs of a downward spiral
This loss is no big surprise given the newspaper industry has faced various long-term challenges. The floundering economy has only made things worse.
“No one should be surprised that the worse economic crisis since the Great Depression, with its downdraft in consumer confidence and spending having an immediate impact on advertising, is reflected in the latest data on newspaper advertising,” says John F. Sturm, president and CEO of the NAA.
Numbers don’t lie
The numbers do look grim. Total print ad revenue dropped from 19.26 percent to 8.2 billion. Online ad revenue fell 3 percent to 749.8 million dollars. National ad sales were down 18.4 percent, classifieds down 30.9 percent and retail fell 11.7 percent.
A glimmer of hope
Still, Sturm remains optimistic, especially with the newspaper industry’s online presence saying, “The expanding position of newspaper websites in the digital information space – a demonstration that our industry’s transition to models that serve the future is underway – delivering what tomorrow’s audiences want today.”
What do you think the future holds for the newspaper industry?
Peter Koeppel is president of Koeppel Direct Inc.
5 Rules for e-Merchants to Navigate Through the Recession
Thursday, January 15th, 2009
There is no question about it—the world is going through an economic downturn. Consumers are cutting back on their spending and businesses are facing tough decisions, perhaps the strongest signal for a stormy period to come. According to Forrester, a leading technology analyst, “Risks have grown that the U.S. and other major countries will experience a longer and deeper recession than we had expected. If so, the hi-tech market would see several quarters of declines in purchases, not just two or three quarters with little or no growth in late 2008 and the first half 2009.â€
With these findings in mind, what can e-commerce merchants do to keep their e-business boat afloat during times when budget cuts and financial declines are the daily routine? What should they particularly focus on to keep sales revenues at a decent level? The following are five navigation rules by a payment service provider for sailing in the e-commerce world in 2009.
Rule 1 – Increase your customers’ loyalty
This is the time when customer loyalty becomes more crucial than ever, as end-users will be acting very cautiously in regards to their spending and will most likely prefer to go back to a website with which they feel familiar and comfortable rather than to a new vendor. Knowing your customers and monitoring their purchasing behavior can turn your online business into a highly profitable operation.
VIP customer tools for merchants are able to differentiate between their “good†customers that should preferably be allowed higher purchase amounts and small, occasional or new end-users who should be limited to only certain purchase amounts. Having a VIP customer tool is a highly beneficial decision—it acts as a supporting device, allowing you to define the profitable customers VIPs and increase costumer loyalty.
Rule 2 – Expand your sales reach
Targeting new end-user markets is always significant when trying to keep revenue growing. The ideal payment processor should provide you with all major currencies; while at the same time allowing processing and settlement currencies to be kept identical, allowing you maximum processing flexibility. A payment service provider that provides all major currencies—while keeping processing and settlement currencies identical—allows you maximum processing flexibility. In addition, your PSP should have sophisticated risk management, enabling traffic from high-risk countries typically blocked by acquiring banks.
Rule 3 – Secure your online payments
As you enter 2009, you should be aware of the risks involved with acquiring a bank, no matter if your traffic is local or international. Finding the connected payment-service provider that has an array of acquiring banks in its portfolio and matching it with the specific processing needs of e-commerce operators is what makes the crucial difference. Any payment processor that offers you a solution with more than one merchant account with several acquiring banks under one roof spreads your online risks.
Rule 4 – Reduce payment processing costs
Your payment service provider can help you identify specific activities that can lower costs. They should offer direct merchant accounts with solutions that focus on accurate fraud prevention. In other words, they need to differentiate between suspicious transactions that will eventually lead to profitable sales and those that will lead to fraud and loss.
Thorough and accurate fraud prevention is a crucial factor in achieving high sales goals. Blocking fraudulent transactions and approving legitimate transactions while converting them to profit is an example of this. At the end of a processing day, the fraud prevention tools aim not only to increase sales, but also to prevent unnecessary chargeback fees and fines.
Rule 5 – Increase your traffic conversion
With an active online operation, every e-merchant seeks tactics to increase traffic. Your online payment service provider can play a crucial role in increasing online traffic conversion. Instead of employing a rough scrubbing system, which in most cases, cuts down valuable traffic due to a resolute filtering policy, a “Traffic Management†tool analyzes the traffic most accurately and improves the approval ratio of profitable transactions.
Well-established partnerships with leading acquiring banks allow your PSP to control incoming transactions by splitting them between the banks according to pre-configured ratio parameters and country attribution. This assists you, as online operators, in receiving higher approval ratio, thus in receiving higher sales conversion.
Sharon Gal Franko is SafeCharge’s director of marketing and sales.
ERA This Week: Los Angeles and Everywhere in Between
Tuesday, July 15th, 2008Are you in the greater Los Angeles area? If so, we invite you to join ERA and Electronic Retailer magazine for cocktails and hors d’oeuvres in Santa Monica. This event is free for ERA members and retailers. Non-member suppliers pay only $99 (credit this fee to your ERA membership when you join within 30 days of the event). To RSVP, e-mail Katie White at kwhite@retailing.org. The Casa del Mar, Hotel by the Sea is the picturesque setting for an evening of building new relationships and catching up with industry colleagues and friends. While we encourage you to let loose and have a good time, plan on having a designated driver because we’d hate for you to end up in a situation like the man in this video!
For many marketers and retailers, there is something even scarier than a DUI—and that’s a recession! If you can’t join ERA in Santa Monica on Wednesday, please join us remotely from wherever you may be for Thursday’s webinar: Recession-proof Your Business. Sponsored by West Corporation, the webinar will be held from 2:30-3:30 EST and is free for ERA members and retailers; non-member suppliers may join for $99. For more information, please contact Ashley Cavell by e-mail at acavell@retailing.org or via phone at 703-908-1020.Â
Marketing in a Recession: The Best of Times or the Worst of Times?
Monday, April 21st, 2008
Pick up the newspaper: Our country and the world are in a state of anxiety about the economy, especially in light of a potential recession. What does that mean to us as marketers? Just how does the recession affect direct response advertising? Recessions are different from other economic downturns and need to be approached differently, but there are ways to weather the storm.
History teaches us that recessions reward the aggressive advertiser and penalize the timid one. Indeed, firms that maintained or increased their advertising expenditures during the 1981-1982 recession averaged significantly higher sales growth, both during the recession and for the following three years, than those that eliminated or decreased advertising.
By 1985, sales of companies that were aggressive recession advertisers had risen 256 percent over those that didn’t keep up their advertising. Why? One reason is that a recessionary market can provide an opportunity for businesses to build a greater share of market through aggressive advertising. Sometimes, we need to remind ourselves about the short-term benefits of advertising: It creates sales immediately; it generates added business from current customers; and it brings in new leads and prospects. In short, as one marketer pointed out, “When times are good, you should advertise. When times are bad, you must advertise.â€
One trait of a true recession lies with shifts in consumer patterns. We can no longer expect even our core base of customers to behave in ways familiar to us and comfortable to them. Preparing for changes in consumer behavior will allow us to jumpstart new messaging, platforms and technologies—when this makes strategic sense—to capture the attention of both loyal and new customers. One false assumption is that it’s safe to reduce the advertising budget if the competition is reducing theirs. Research shows that companies maintaining or increasing advertising during periods of economic slow-down will boost market share. (more…)
