Tumblr Plans To Turn Into A $100 Million Business By Taking On TV And Newspapers (YHOO) | ||
| | ||
Tumblr’s plan to reach owner company Yahoo CEO’s Marissa Mayer’s vision of becoming a $100 million revenue business by next year isn’t to take on other internet giants like Facebook and Twitter for ad money. Instead, the blogging platform wants to steal ad money from TV broadcasters and newspaper and magazine publishers, Tumblr CEO David Karp told the Financial Times. Tumblr is now on a mission to prove to advertisers that it is the best platform for “aspirational” marketing campaigns, that are typically placed on TV or in premium glossy magazines, the Financial Times report suggests. Tumblr doesn’t just want to be speaking to the digital agencies, it wants to be forming partnerships with the top creatives and marketers behind big brand Super Bowl ads. Karp told the newspaper that while the rest of the industry is focused on direct response advertising — when consumers are likely to be on the lookout for one particular product and are served with a “buy me now” ad — and narrow targeting that uses data to show ads based on very strict sets of criteria, Tumblr offers advertisers a broader base of interests. That’s why he thinks Tumblr is the best place for brand marketing campaigns online. He said in the interview: “The whole industry is obsessed with harvesting intent when, if you look at the biggest brands, they want to create intent, to get people to aspire to wear the clothes, drive the car, drink the soda. Right now there aren’t a lot of pleas in any of these digital networks which inspire people to become a customer … which they used to do with great TV and print campaigns. “The general message to big brands and agencies from Silicon Valley and all the digital networks is ‘leave the creative people at home, show up with the data scientists.’ We want them to show up with the guys putting together the Super Bowl ads.” One of the advantages of Tumblr over Facebook or Twitter, Karp believes, is that people come to Tumblr with the intent to consume content rather than communicating with their friends. So in that way its sponsored posts, radar posts and trending blogs ad formats are not a “jarring surpass” that takes you away from your very “personal place,” Karp added. Yahoo acquired Tumblr for $1 billion last year. However, many observers have criticized the move as the acquisition does not appear to be immediately paying off. However, in Yahoo’s last earnings call, CEO Marissa Mayer said Tumblr is likely to report its first profit (before interest, tax, depreciation or amortization — otherwise known as EBITDA) by the end of 2015. On Tuesday Mayer said, in announcing Yahoo’s $640 million acquisition of video adtech platform BrightRoll, that Tumblr was on track to generate more than $100 million in revenue next year. Business Insider’s Nicholas Carson revealed last month that Yahoo is planning to use BrightRoll to turn Tumblr into a video site to rival the likes of YouTube. YouTube has also recently confirmed it is coming after TV’s money, by putting more effort into mimicking broadcasters’ “upfront” events to secure long-term bulk advertising deals. SEE ALSO: Google Just Confirmed It's Coming After TV's Money Join the conversation about this story »  | ||
| |
Sainsbury's Is Cutting Prices Of 'Essentials' As The Supermarket War Rages On | ||
| | ||
Sainsbury's has announced it is investing £150 million in cutting prices, as the company reported a pre-tax loss of £290 million in the 28 weeks to Sept. 27. The supermarket is Britain's third-biggest, but it is facing tough competition from Germany's budget brands Aldi and Lidl, both of which are enjoying growth and increasing sales. A Sainsbury's spokesman tells Business Insider the price drops will be on its own-brand "every day essentials" and are in line with "what customers want" — stressing it's not just responding to the discount-heavy movers and shakers. He said: "They (Aldi and Lidl) are factors and the market is changing. But we're investing in quality and reducing prices on our own-brand stuff; things like bread, milk, and nappies." "Our nappies are actually going to be cheaper than (those in) Aldi and Tesco now. We're focusing on these items." Sainsbury's is funding its cuts by cost savings and lower investment spending in areas such as property, the company says in its earnings statement. The price cutting initiative is a result of recently appointed CEO Mike Coupe's strategic review of the business, in which he highlighted this year's losses compared to a pre-tax profit of £433m in the same period the previous year. Sainsbury's will no longer develop a number of sites and has set a target of £500m worth of savings in the next three years. Analyst Avin Nirula from Accendo Markets says "traders have seen a 7.5% rally in Sainsbury's this week" and customers are benefiting from lower costs due to competition. But Nirula added "the supermarket war continues" and, as "Aldi confirms details of aggressive expansion", Sainsbury's latest plan may not be enough to warrant growth. Sainsbury's isn't the only one being hurt in the food fight, though — in March Marketing Week said Morrison's CEO Dalton Philips talked of "bold" steps to stem the tide of budget companies wading into the sector. He announced a far bigger investment, £1 billion, in pricing and proposition in the hope of reinforcing its position as a value retailer. Even Britain's biggest grocer, Tesco, is lowering costs of essential products, while hoping to maintain its image of mid-range, Reuters says. John Ibbotson, director of the retail consultancy Retail Vision, says the "middle classes are on the move" and comments: "Just like the old British empire, the Big Four are now in an irreversible decline." He mentions also that £150m of price cuts "is peanuts" compared to the amounts rival supermarkets Asda, Tesco and Morrisons have put aside. As Christmas looms however, Retail Remedy's Phil Dorrell believes Sainsbury's "one-notch up" positioning offers hope as people often like to trade up over the festive season. But he adds: “But this (Sainsbury's cuts announcement) is really just small beer, and if Sainsbury’s fails to get its marketing right and make its pricing more convincing, it can only expect to lose more market share across its main estate." Join the conversation about this story »  | ||
| |
Tumblr Plans To Turn Into A $100 Million Business By Taking On TV And Newspapers (YHOO) | ||
| | ||
Tumblr’s plan to reach owner company Yahoo CEO’s Marissa Mayer’s vision of becoming a $100 million revenue business by next year isn’t to take on other internet giants like Facebook and Twitter for ad money. Instead, the blogging platform wants to steal ad money from TV broadcasters and newspaper and magazine publishers, Tumblr CEO David Karp told the Financial Times. Tumblr is now on a mission to prove to advertisers that it is the best platform for “aspirational” marketing campaigns, that are typically placed on TV or in premium glossy magazines, the Financial Times report suggests. Tumblr doesn’t just want to be speaking to the digital agencies, it wants to be forming partnerships with the top creatives and marketers behind big brand Super Bowl ads. Karp told the newspaper that while the rest of the industry is focused on direct response advertising — when consumers are likely to be on the lookout for one particular product and are served with a “buy me now” ad — and narrow targeting that uses data to show ads based on very strict sets of criteria, Tumblr offers advertisers a broader base of interests. That’s why he thinks Tumblr is the best place for brand marketing campaigns online. He said in the interview: “The whole industry is obsessed with harvesting intent when, if you look at the biggest brands, they want to create intent, to get people to aspire to wear the clothes, drive the car, drink the soda. Right now there aren’t a lot of pleas in any of these digital networks which inspire people to become a customer … which they used to do with great TV and print campaigns. “The general message to big brands and agencies from Silicon Valley and all the digital networks is ‘leave the creative people at home, show up with the data scientists.’ We want them to show up with the guys putting together the Super Bowl ads.” One of the advantages of Tumblr over Facebook or Twitter, Karp believes, is that people come to Tumblr with the intent to consume content rather than communicating with their friends. So in that way its sponsored posts, radar posts and trending blogs ad formats are not a “jarring surpass” that takes you away from your very “personal place,” Karp added. Yahoo acquired Tumblr for $1 billion last year. However, many observers have criticized the move as the acquisition does not appear to be immediately paying off. However, in Yahoo’s last earnings call, CEO Marissa Mayer said Tumblr is likely to report its first profit (before interest, tax, depreciation or amortization — otherwise known as EBITDA) by the end of 2015. On Tuesday Mayer said, in announcing Yahoo’s $640 million acquisition of video adtech platform BrightRoll, that Tumblr was on track to generate more than $100 million in revenue next year. Business Insider’s Nicholas Carson revealed last month that Yahoo is planning to use BrightRoll to turn Tumblr into a video site to rival the likes of YouTube. YouTube has also recently confirmed it is coming after TV’s money, by putting more effort into mimicking broadcasters’ “upfront” events to secure long-term bulk advertising deals. SEE ALSO: Google Just Confirmed It's Coming After TV's Money Join the conversation about this story »  | ||
| |
Two British Men Imprisoned For 'Dancing Jesus' File-Sharing Site That Cost The Music Business £240 Million | ||
| | ||
Two British men have been imprisoned for running the notorious "Dancing Jesus" file-sharing site, which could have cost the music industry £240 million. US Homeland Security helped British police track down Kane Robinson, 26, and Richard Graham, 22. Robinson is accused of running the file-sharing site, while Graham was reportedly a "major contributor." Robinson was sentenced to 32 months behind bars, while Graham received a sentence for 21 months in prison. The site was named after a joke in a 2000 episode of the Simpsons which saw Homer Simpson visit a novelty website featuring an animation of Jesus dancing.
Dancing Jesus prided itself on being the first file-sharing site to host new music from major stars. Over 8,000 tracks were leaked on Dancing Jesus before their official release date. The site grew to host 250,000 songs, and attracted 70 million visitors. From 2006 to 2011, Dancing Jesus was one of the most reliable places to find music before its release. Unreleased tracks often end up online after employees at CD packaging factories sneak a copy home before the product goes out to stores. Metro quotes prosecutor David Groome as saying that "of the best-selling 50 singles in 2010/11, 46 were first leaked to Dancing Jesus." Join the conversation about this story »  | ||
| |
