Archive for May, 2015


Apple has overtaken Google to reclaim the title of “world’s most valuable brand” in the 2015 BrandZ Top 100 Most Valuable Global Brands, released by WPP and its Millward Brown unit. By their calculation Apple has increased its brand value to $247 billion, a rise of 67% year on year. Google, falling to second place, also grew, achieving a 9% value increase to reach $173.7 billion.

Though the AppleWatch is currently getting a lot of buzz, it’s the success of the iPhone 6 that has been the main driver of Apple’s brand value growth. “Apple continues to ‘own’ its category by innovating and leading the curve in a way that generates real benefits for consumers,” said Doreen Wang, Millward Brown’s Global Head of BrandZ. She also noted that “Apple is clear on what it stands for” and never stops refreshing its message.

Technology companies again ruled the list, claiming the top four spots. Microsoft, now worth $115.5 billion, moved up one spot to #3 with value growth of 28%. IBM saw its brand value drop 13% to just under $94 billion, dropping it to fourth place. The rest of the top ten brands by global value are Visa, AT&T, Verizon, Coca-Cola, McDonald’s, and Marlboro.

The total brand value of the Top 100 now stands at $3.3 trillion, a 14% increase on 2014 and a 126% growth over the 10 years since the ranking was first launched. Technology is the fastest-growing category—up 24% in the last year, the tech brands in the Top 100 are worth more than $1 trillion, nearly a third of the value of all brands in the ranking. Facebook is the fastest riser, with 99% growth in a single year to $71.1 billion, achieved through its successful strategy of acquiring and integrating other social apps such as Instagram and WhatsApp, and an understanding of how to monetize and cross-sell its platforms. 

Having survived the sensory overload of the Upfront presentations in New York, Stacey Lynn Schulman, EVP of strategy, analytics and research for Katz Media Group, gave us her impressions of what’s in store for the next TV season. First off, she thinks advertisers will increase spending on television—“if for no other reason than there is some healthy skepticism around the validity and reliability of digital data.”

Advertisers, she says, are concerned about whether what they buy is what they actually get in the digital world. “If broadcast television played by the measurement standards as what the digital landscape has proposed, I think we would be laughed out of the negotiation,” Schulman said. “If we tried to say, look, as long as your commercial is on for three seconds and you see 50% of the image it’s going to count, I don’t know any television advertiser who would say that was OK,” she said with a chuckle.

The Upfronts were originally about the broadcast TV networks and then expanded to cable networks as well, but now it seems every type of media is trying to get in on the action. There are Upfront events for digital, radio, outdoor—you name it. But Schulman doesn’t think they’ll ever have the same importance. “The Upfronts exist because there is scarcity in the network television space. It is the place where you can get audiences all at once—it’s a large, broad-based reach audience…and it is a scarce resource. There is no scarcity in digital media,” she noted. So while it’s interesting that the digital players want to parade their wares at the same time as TV, Schulman says there’s no need for advertisers to get in early with their money on the digital side.

On the programming side, we wanted to know what blew her away for next season. Schulman hesitated to say that anything she saw is a sure hit, but she said there are some which have the potential to break away as hits. “The Jane Lynch comedy Angel from Hell on CBS has that potential in terms of all the comedies that we saw. It’s just different and has a different sensibility,” Schulman said. She also pointed to Minority Report on FOX, the first TV drama from Steven Spielberg, Limitless on CBS and Scream Queens on FOX as new series that might turn into hits. “The Neil Patrick Harris Best Time vehicle could surprise us…it’s live, it’s different, it has potential to draw in younger viewers, which is really important to broadcast television—and it’s unpredictable,” she said of the series coming to NBC, which has been using live programming as a way to draw viewers to linear television.


Author: admin

Many restaurants are prospering, but Jack in the Box’s second fiscal quarter was actually that chain’s best second quarter in 16 years. Company-owned units were up 7.4% in comp sales and the franchisees did even better with a 9.4% increase. Also, at sibling Qdoba, system wide comps grew 8.3%. With Jack units already more than 2200, the chain will add only about 15-20 new locations this year although Qdoba should open about 50-60 new stores to add to the current 600 store roster……The MillerPulse survey for April found that restaurant same-store sales were up 3.3%, but traffic still lagged at down 0.1%. “Flattish traffic is better than where it’s been, but we’ve got to get into more positive territory,” survey co-founder Larry Miller commented……J.C. Penney continued its comeback, reporting a 3.4% same-store increase for its fiscal first quarter. It also raised the forecast for the rest of the year, now expecting a 4-5% comp store increase……Kohl’s reported a 1.4% quarterly same-store gain but as that was up against a 3.4% decline in the same quarter last year, the increase was below what had been expected. The Wall Street Journal suggests middle-market retailers such as Kohl’s are squeezed on the high end by stores like Macy’s and on the lower end by Walmart and Target……Macy’s will alter the merchandise available in about 150 of its best stores, adding some higher-end items and removing some clearance goods to make more room for new products……Usual practice in the automotive business is for factories to shut down for a few weeks in the summer to facilitate changeovers for new models and tooling. Automotive News reports, however, that Fiat Chrysler will keep some of its most important plants open all summer, mostly to continue production on some Jeep and Dodge models……Roark Capital has acquired Pet Supermarket, currently with 155 stores in 11 states. While much of Roark’s portfolio consists of restaurants (Carl’s Jr., Hardee’s, Moe’s, and Arby’s among others), it does own a pet chain in Canada……The remaining RadioShack stores will not have to change their name—Standard General, the group that owns the stores that are left, won the separate bankruptcy court auction for the brand and other intellectual property……Midwest supermarket owner Roundy’s reported a blended 1.6% decrease in same-store sales with transactions down 1.9%. Roundy’s operates stores under the Pick ‘n Save, Copps, Metro Market and Mariano’s banners……The annual study from Market Force found Trader Joe’s to be consumers’ favorite food store for the third straight year. ALDI was the winner in the value category. Publix was overall runner-up but won in several categories including fast checkouts, cleanliness and ease of finding items.


The lead of the announcement form the Interactive Advertising Bureau (IAB) is that a quarter (24%) of the American adult population, an audience of 59 million strong, is turning to original digital video programming at least once a month. But our readers will no doubt be interested in this sentence much further down: “In line with last year’s survey findings, today’s viewers of original digital video clearly prefer that type of content to the news, sports and daytime programming found on TV, and like it almost as much as they do primetime television.” So, even people who really like original online videos still prefer primetime TV programs.

The survey of over 1,900 consumers, produced by GfK for IAB, shows that young cord-cutters/nevers are about twice as likely as other adults to view original digital video. 53% of cord-cutters and 63% of cord-nevers see original OTT programming as “very” or “somewhat” important in their decision not to have pay TV. In addition, cord-cutters/nevers are inclined to find the ads shown during this type of programming to be “more interesting” or “fun” (43%), and they are not alone—a third (35%) of the general original digital viewing audience is in agreement about the likability of the ads on this sort of content.

Connected TVs (56%), smartphones (56%), and tablets (48%) are being used to stream original digital video more than twice as often as two years ago, while computer viewing of original digital video (72%) remains steady. Two-thirds (65%) of those who stream original digital video to connected TVs state that they typically watch during primetime (8-11 pm) and half (53%) of them report they are doing so more than they did a year ago, largely driven by more (and more interesting) content along with ease of use of connected TVs.

While word of mouth (53%) comes first in the discovery of original digital video content, social media sites are playing a larger role—approaching twice that of two years ago (42% vs. 24% in 2013). 55% of regular viewers of made-for-digital video programming say they have greater social media interactions than they do during traditional TV—even when it comes to primetime TV fare (39%).


Millennials have been stereotyped as the generation that doesn’t want to pay for anything. But new research from Deloitte says the “generation that won’t spend” is spending a lot on media content. Deloitte predicts that U.S. and Canadian millennials will spend over $62 billion on media content this year.

Despite the perception that millennials are only interested in free video, the biggest media expenditure for millennials who have their own households, just as it is for other households. Millennials who don’t live with their parents (about 70% of 18-34 year-olds) are expected to spend an average of $316 on traditional pay-TV this year. That’s almost half of their total media spending estimated at $750.

After TV, music is big with millennials. Deloitte estimates average spending this year at $125. About 80% are expected to attend a live event this year—and most say they would like to spend more on live music than in past years. So, about $100 of that $125 is expected to be spent on live music—more than double the $48 average for all Americans. As you would expect, millennials are the chief target audience for subscription music services. An estimated 40% of Spotify’s 50 million monthly active users and 12.5 million premium users are age 18-24.

Deloitte also estimates that millennials will spend an average of about $100 on video games this year—about $8 billion in all. That means that millennials account for about a third of the $22 billion to be spent on video games in the U.S. this year.

Millennials over-index on going to the movies as well. Despite their inclination to watch movies on various screen sizes, they still like the big screen and are willing to pay an average $12 per ticket because they go to see the latest hot flicks on busy Friday and Saturday nights at a first-run theater—and don’t qualify for a senior citizen or child discount. The youngest millennials, age 18-24, account for about 10% of the population but purchase a fifth of all movie tickets.

Believe it or not, millennials still buy books—spending an estimated $60 on average this year. That includes both hardcopy and digital books—and, importantly, textbooks.

Streaming video has just added to what 18-34 year-olds are willing to pay for television, movie and other video content that they can view when they want to on whichever device they want to use. Deloitte estimates that subscription video on demand (SVOD) now accounts for about $40 of annual media spending by millennials. In the U.S. 43% of 18-34 year-olds use Netflix.

In addition to live music, millennials attend live sports, they’re expected to spend an average $25 on live sports gate admissions this year. That’s less, though, than the $50 per capita spent by all Americans in 2014. Still, 86% of millennials watch TV sports, down only slightly from 93% of all Americans.

Most millennials don’t subscribe to a newspaper, but a sixth still do—paying about $120 per year. That puts the average for all 18-34 year-olds at $20, but Deloitte notes that annual spending is declining.

In addition to spending on media content, millennials are big spenders when it comes to technology to access that content. The typical millennial owns one or more new smartphones and has a big monthly data plan. And they need a high-speed broadband service to stream video. If they also replace their PC or tablet every four years and their games consoles every five, Deloitte estimates that annual spending by millennials on hardware and connectivity is around $3,000.