Monday, January 23, 2006

CEOs Make Poor Spokesmen, Survey Shows

International Herald Tribune
New research shows that marketers who rely on their chief executive to serve as spokesman should rethink their strategy. A survey conducted by Edelman Public Relations in 11 countries revealed that chief executives and other former authority figures no longer command the trust they used to among consumers, and generally should not be pressed into service as media spokesmen. When asked what kinds of people they trusted most as credible sources of information about a company, respondents most often chose "a person like yourself or your peer." In the United States, for instance, 68 percent chose this response, compared with only 28 percent for a chief executive. Edelman said the survey findings were consistent with other indications of a democratization of the business and media spheres, as the Internet puts powerful information in the hands of ordinary people more quickly, and lets them have their say on matters previously reserved for the mainstream media. "There's something of a revolution going on in terms of how people pick up and value sources of information," Edelman said. "For business, it means they've got to change their game plan." - Read the whole story...

Tuesday, January 17, 2006

Do you currently optimize your search marketing efforts for local search?

Do you currently optimize your search marketing efforts for local search?
Yes 16.7%
No, but plan on optimizing for local search in the next 6 months 16.7%
No, but plan on optimizing for local search within the year 0%
No, and have no future plans at this time 66.7%

Thank you for participating in our survey.

Done
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EXPEDIA LAUNCHES MAJOR BRANDING AD CAMPAIGN

QwikFIND ID: AAR31R

NEW YORK (AdAge.com) -- Online travel agent Expedia.com launches a national branding campaign this morning that ups the ante on its competitors: a best-price guarantee that offers consumers a $50 coupon for future travel if they find a better price elsewhere.

Expedia, which competes against Orbitz and Travelocity as well as airlines and hotel sites, is offering to meet and better any price on a variety of travel expenses.

The Bellevue, Wash., company said the best-price guarantee was part of three new consumer-centric initiatives, which include "Your Personal Trip Guide" and the "Expedia Promise."

New slogan
Interpublic Group of Cos.' Deutsch will handle the campaign, which includes TV, print and online components. All ads will feature the company's new slogan, "Enjoy your trip." Details of spend on the campaign are unknown. Expedia spent $90 million in 2005 on measured media, according to TNS Media Intelligence.

"We believe these new initiatives will give customers even more compelling reasons to book travel with us," Steven McArthur, president, North America Leisure Travel Group at Expedia, said in a statement.

Throwing down the gauntlet
Expedia, now in its 10th year, knocks heads not only with online competitors Orbitz and Travelocity, but with airlines and hotels as well.

The best-price guarantee is an online challenge thrown down by Expedia. If a customer finds a lower price online for the same trip -- whether that's airfare, hotel, vacation package, car rental, cruise or destination activity or service -- within 24 hours of booking at Expedia.com, Expedia will reimburse the difference and give the customer a $50 coupon for future travel.

Customer centricity
"This is the best and most comprehensive offering available anywhere in online travel," Sally McKenzie, senior VP-merchandising and retail operations at Expedia, said in a statement. "We are committed to giving our customers unparalleled travel selection, value and service. Customers making their travel plans through Expedia will now have even greater confidence that they are obtaining the best fares and room rates available -- all backed by a new guarantee."

Connecticut-based PhoCusWright, a travel-research company, estimated that online bookings approached 30% of the U.S. travel market in 2005 for a value of $65.4 billion. Expedia is the market leader, followed by Orbitz, Travelocity and Priceline.

When Search Maps Your Privacy

SEATTLE -- The images are so detailed you can tell whether a neighbor's hedge was recently trimmed or whether the car parked in front of a favorite local eatery might belong to a friend.

Such views are available online for anyone to see from some of the biggest names on the internet, including Amazon, Microsoft and Google. The companies' newly evolving local search and mapping services, where the photographic images are typically rendered as search results, make it easier than ever to scout out everything from vacation destinations to a new hairdresser.

Never before have searchable databases of detailed pictures covering wide swaths of urban areas been readily available like this to the public. And that has privacy advocates worried about the risks of such picture perfect exposure to vulnerable citizens such as women in domestic violence shelters.

"I think there are going to be privacy issues, no doubt about it -- somebody's going to feel uncomfortable with it," said Charlene Li of Forrester Research. "So the question becomes, 'What are the tradeoffs? Is the value worth it?'"

Yes, according to research by Forrester.

Li said she's already seeing consumer interest, and she expects companies to continue to develop such tools because they see the potential for online advertising from local businesses who may not want to buy national online ads.

Microsoft, which late last year began offering detailed images of metropolitan areas taken from airplanes, said last week that it would team with Verizon Communications to distribute local business advertisements from Verizon's superpages.com on Microsoft's local search pages.

And Amazon, whose A9 subsidiary has since August offered street-level images taken from vans, says the main goal of its site is to help people find local businesses. The company's site currently lists images from two dozen U.S. cities.

The most detailed images available from Microsoft's service are currently only for some U.S. cities, and there are some satellite images of international locations. Google offers images from all over the world, but the amount of detail varies greatly depending on the location.

For example, users scouting out urban areas like Seattle or New York City can make out individual houses and buildings, while those living in Lander, Wyoming, see a much less detailed view with Google and only get a graphic map with Microsoft's service.

Google's service mostly gets its images from satellites, and while they're not nearly as detailed as those of Amazon or Microsoft, they are nevertheless good enough to recognize one's home.

John Hanke, a product director at Google, says the technology is popular for figuring out whether a vacation spot is all it's cracked up to be -- is that "beachfront" hotel really on the beach, or across the highway from the beach? -- and for house hunting.

Daniel DeConinck, an engineer and entrepreuner living in Toronto, used Google's site to find an accountant close to his house, and has since used it to scout out nearby bicycle shops and computer retailers. He thinks it has the potential to one day replace the local yellow pages.

"Anyone who I've shown Google Maps to, their draw just drops when they see that," he said. For her part, Li is somewhat skeptical that mom-and-pop shops will quickly get on board and make photo-enriched local search a big money-maker.

"I think it's going to be really slow to take off, just knowing small businesses," she said. "You're talking about a fundamental change in how they do business."

For now, however, many people appear to be visiting the fledgling offerings simply to satisfy their curiosity. Users who visit Microsoft's Windows Live Local often first type in a street address -- presumably their own house -- and then go searching for a landmark, like Seattle's Space Needle, said Justin Osmer, a Microsoft product manager.

A9's street-level views of some U.S. cities, meanwhile, include clear pictures of people and cars when they happen to be in the frame. The aim is to give people what A9 Vice President Barnaby Dorfman calls "a very human experience," similar to what you would see walking or driving down a street.

Pam Dixon of the World Privacy Forum says such images can potentially be used to track people who are vulnerable. She said A9 removed images of shelters upon her request and now gives people the option to removing their personal information from its directories.

She's hoping that such policies will become widespread. "I really think you should have the option to say, 'No. No, thanks,'" she said.

But the companies say that, so far, they have received few complaints. Hanke argues that some images available on Google's site are already available through local and federal government data, such as from the U.S. Geological Survey. But the government-supplied images aren't as well organized or easily accessible as those available commercially.

He also said that someone could learn much more by just walking down a street than by looking at Google's images.

Some foreign governments have complained of security concerns raised by the Google images. Hanke said the company has fielded concerns raised by some governments, but has not altered any images.

Osmer said Microsoft has altered some of its images, such as those of the White House, to address security concerns. None, he said, is close enough that you can recognize faces.

Lt. Paul Vernon with the Los Angeles Police Department said he hasn't heard of any law-enforcement officials expressing concern about such online images. In fact Vernon said, some police officers in Los Angeles have even found the sites to be helpful for quickly mapping out a location or scouting out an area where a crime has been suspected.

Amazon, Google and Microsoft all say they are working to expand their offerings, and perhaps even add other image-based search tools.

Osmer said Microsoft wouldn't rule out showing live aerial images -- instead of the static ones, often months old, that currently populate the sites -- for things like the Super Bowl or traffic navigation.

He also said it's hard to say whether Microsoft would offer more detailed views later on. "I don't think we'll get to the point where you can zoom in and see the shoelaces on someone's shoe, but maybe it would make sense to get a close view to read a sign or navigate a space," he said.

Monday, January 09, 2006

It's A Wrap!

For the final final, comScore Networks just released holiday season and annual online spending figures for full year 2005, concluding that total Internet spending for the full year, including travel, reached $143.2 billion, up 22 percent over the $117.2 billion spent online in 2004.  

Gian Fulgoni, comScore chairman, said "... this was clearly another very strong year for e-commerce.... a 24 percent annual increase in online spending represents more than a full percentage point of consumers' expenditures, clearly showing that the traditional metric alone, retail same-store sales, is no longer sufficient to paint an accurate picture of trends in consumer spending."    

Online non-travel spending during the 2005 holiday season  (November 1 through December 31, 2005) totaled $19.6 billion, representing a 25-percent increase over the corresponding period in 2004.  Online travel spending generated an additional $8.6 billion during November and December.  

Online Consumer Spending ($ Billions)

 

2004

2005

%Chg 2005vs2004

Holiday Season (Nov & Dec)

 

 

 

Non-Travel (Retail)

$15.7

$19.6

 25%

Travel

$7.4

$8.6

16%

Total

$23.1

$28.2

22%

Full Year  

 

 

 

Non-Travel (Retail)

$66.5

 $82.3

24%

Travel

$50.7

$60.9

20%

Total

$117.2

$143.2

 22%

Source: comScore Networks Excludes auctions and large corporate purchases

 

Yahoo! Runs YellowPages.com Listings

YELLOWPAGES.COM AND YAHOO! ON FRIDAY announced a deal that gives YellowPages' advertisers placement throughout Yahoo! Local and Yahoo! Yellow Pages sites. Financial terms of the agreement were not disclosed. Yellowpages.com, a joint venture between AT&T Corp. and BellSouth Corp., has similar distribution deals with AOL Yellow Pages and InfoSpace's Switchboard, which specializes in local online advertising.

Tuesday, January 03, 2006

Map makers scurry along technology's new roads

In a white Ford Escape fitted with a video camera, a Global Positioning System [GPS] receiver and a laptop, Mr. Arcari and partner Rob Ditko work to maintain the freshness and accuracy of mapping databases on which millions rely. One wrong turn and, well, you get the picture.

As mapping technologies proliferate on websites, in mobile devices and inside automobiles, the work of these modern cartographers is essential.

During their December excursion off Exit 15X, the two men discover three new streets and a delivery access road. "Times like these, we just explore," Mr. Arcari says as he passes a new commuter rail station responsible for the new streets. "It's our version of finding a brave new world. We'll drive it until it connects to some point [already] in the database."

Riding shotgun, Ditko uses his pen tablet to denote an overpass, which appears as brackets on the display above the four-wheel-drive vehicle's gear shift. Later, he writes in the name of a new street, South Road.

Information gleaned from the green arrows, hand markings and video images ultimately go into databases maintained by Chicago-based Navteq Corp. and sent quarterly to such Internet mapping providers as America On-line Inc.'s MapQuest, Yahoo Inc., Microsoft Corp., Google Inc., and in-car navigation developers such as TomTom International BV.

Developers of the map applications can then apply their own touches, such that directions offered by Yahoo between the same two points may differ from MapQuest's, even though both use the same data from Navteq and its main competitor, Netherlands-based Tele Atlas NV.

"Users even five years ago were still just amazed you can get driving directions from point A to point B," says Jeremy Kreitler, Yahoo's senior product manager for maps. "They were okay if every once in a while, [the directions] took you down the wrong street or didn't know about a new housing development."

Since then, on-line maps have come a long way.

No longer satisfied with driving directions, consumers are also demanding information on a neighbourhood's restaurants, public transportation options and even real-time traffic conditions. People generate maps on mobile devices for hikes and errands, and they want maps for locations outside North America and Western Europe, too, where coverage can be spotty.

All that translates into greater demand on Navteq and Tele Atlas to make their databases even more accurate and complete.

Tele Atlas consults more than 40,000 sources, including state and local transportation departments, planning boards and motor vehicle agencies. Field analysts also monitor county growth rates, housing construction data and aerial images.

Where maps are already available from a reliable source -- an aerial image, a government agency, perhaps a utility company -- Tele Atlas will use that. But where there are discrepancies, Mr. Benson says, the company often sends a van with a driver and a half-dozen video cameras from which computers extract key information.

Tele Atlas spends tens of millions of dollars each year in North America alone to freshen its databases, currently more than 12 trillion bytes in size.

Navteq employs 514 field analysts in North America and Europe. They drove more than 5.6 million kilometres combined in 2004.

"It's like painting the Golden Gate Bridge," says John MacLeod, Navteq's executive vice-president for global marketing and strategy. "You spend a year painting it and you have to start over again. It's a never-ending challenge."

Both companies have been digitizing maps for about two decades, but only recently have GPS units, video cameras and laptops become central to the task. "Six or seven years ago," Mr. Ditko said, "we were writing on paper plots."

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