Advertising

Dell, Dex sum up dozy bondholders in a nutshell

17 May 2016

The PC maker may face long-term decline yet is selling 30-year debt as part of a $20 bln package to help pay for EMC. The Yellow Pages publisher is hitting its fifth bankruptcy in seven years. They’re apt examples of how short-term yield boosts entice bond buyers to ignore risk.

Baidu selloff understates long-term health risks

10 May 2016

Regulators have ordered China’s top search engine to rein in healthcare advertising after a scandal. That could knock as much as a fifth off earnings. Investors who have marked the shares down by 13 pct so far may be underestimating the broader impact on Baidu’s business model.

TV’s green shoots will wither from digital heat

2 May 2016

Advertisers may commit $19 bln to U.S. prime-time shows – the latest sign of big money flowing to broadcasters such as CBS. Short-term quirks account for much of it, though. Madison Avenue’s love affair with the likes of YouTube and Facebook looks more durable in the long run.

Zuckerberg tightens grip as Facebook cash flows

27 Apr 2016

Amid a tripling of profit and 50 pct rise in sales, the social network is creating a third class of non-voting stock. It cements control for CEO Mark Zuckerberg in the event of big M&A or staff rewards. At least the weak corporate governance also may help philanthropic deeds.

Google’s app store grows into risky opportunity

21 Apr 2016

Alphabet’s internet-advertising cash cow disappointed in Q1, but continued rapid growth in what it dubs “other revenues” provided a bit of solace. The company’s Android applications store is becoming steadily more important to the company – not to mention antitrust regulators.

Bickering ad men promote more women than tech does

31 Mar 2016

A discrimination lawsuit at a WPP unit has led boss Martin Sorrell to trade barbs with Publicis CEO Maurice Levy over women’s advancement. Both firms, though, do better on gender equality at senior levels than Facebook or Google. That’s a rare edge over their new rivals.

Alphabet sinks further into antitrust quagmire

22 Feb 2016

The European Commission may beef up its anti-competitive complaint against Google. U.S. authorities are probing the search giant, too. Proving abuses will be difficult, but the expanding scope means the company will have to expend more energy to pull itself out of the bog.

Adtech deal arms China’s web groups against giants

11 Feb 2016

A consortium including search specialist Qihoo and gaming firm Kunlun are bidding $1.2 bln for Norway’s Opera Software. Despite a fat premium, the offer is not overly pricey. Plus, Opera could help the buyers move into lucrative niches not yet taken by Baidu, Alibaba or Tencent.

Al Jazeera floored by oil, ratings double-whammy

13 Jan 2016

The broadcaster is shutting its U.S. cable news unit three years after paying $500 mln for a network. High-profile lawsuits added to viewer skepticism and low ad revenue. But the sharp drop in the oil price may have been the final straw for its Qatar government backers.

Ad kickback scrutiny could embarrass agencies

22 Oct 2015

The trade group for brands like P&G and McDonald’s – responsible for $250 bln a year in media spending – has hired investigators to review ad agency practices, including claims that rebates aren’t passed on to clients. The Mad Men are missing the chance to shape their own story.

Publicis a great advert for media-sector anxieties

22 Oct 2015

The French ad giant’s shares dropped more than 9 pct after cutting full-year guidance on organic growth. Publicis says some clients are reducing ad spend in the U.S. Yet rivals are doing better. With an uncertain media outlook, investors have little tolerance for underperformers.  

Silicon Valley disruption reaches illogical limit

21 Sep 2015

The maker of Apple’s top-selling app, ad blocker Peace, yanked it because the software “doesn’t make him feel good.” Upending industries from taxis to newspapers is the point of developing new technology. It’s too late now to have a heart. Google and others will face the music.

Digital ad haters play into Facebook’s hands

16 Sep 2015

Apple’s latest operating system helps iPhone owners dodge Madison Avenue. Blocking software already threatens some $22 bln in global brand spending this year. As web-based publishers wrestle with technology, marketers may move faster into walled systems like Facebook’s.

Focus Media relisting defies China’s market rout

1 Sep 2015

The advertising group is trying to list again in Shenzhen after a previous attempt in June fell through. But despite the stock market slump, Focus Media’s $7.2 bln valuation is unchanged. Other U.S.-listed companies eyeing a return to the mainland may need to be more realistic.

EU’s competition sprawl as worrying as Google’s

15 Apr 2015

Europe has accused the web giant of favoring its own shopping search results and broadened the case to include its Android mobile operating system. Investigations and appeals may take a decade. Brussels’ ambitious lack of focus is similar to what threatens ever-expanding Google.

Market curbing Google faster than EU

8 Apr 2015

After five years’ back-and-forth, European competition authorities may charge the internet search giant with abusing a monopoly. Changing advertising patterns suggest technology is moving ahead of the law in muting Google’s power – an echo of Microsoft’s case last decade.

Review: Choking on digital exhaust

2 Apr 2015

Government and corporate mass surveillance of citizens is an aberration on a par with child labor or environmental pollution, claims security expert Bruce Schneier in “Data and Goliath.” He offers a rousing call for resistance, and hope for change - a few decades hence.

Google’s CFO search should have it feeling lucky

24 Mar 2015

There’s a dearth of executives with the financial, tech and government experience needed to help run a $400 bln company. Even fewer women fit the bill. Silicon Valley and Wall Street just can’t find enough Ruth Porats fast enough. The challenge is to create more like her.

WPP is good value in a pricey sector

9 Mar 2015

The ad giant’s pretax profit increased 12 pct last year. Earnings and dividends are set to rise at a similar clip in 2015. WPP’s markets are improving and its finances are strong. The news is good for CEO Martin Sorrell. The shares are hardly cheap, but momentum is plain to see.

Review: The Mad Men are watching you

23 Jan 2015

A lot happens in a split second online, much of it good for the ad industry but worrying for privacy advocates. Instant auctions to push tailored ads to individuals are growing fast, says “Targeted” author Mike Smith. The ad men will need ever more personal data to fuel them.