Online Pubs Take A Licking But Keep On Ticking
It may be time to spruce up your pitches for online publications despite the fact that three out of four business publishers with Web sites are losing money on interactive ventures, says a report from BPA International. Despite the lack of significant returns most plan to increase their online investment in the coming year.
Of the 20 percent of business publications without sites, 74 percent said they plan to launch within the next year, 37 percent plan to do so within the next six months. Of the profitable sites, the average time span from launch to profitability is nine months. Only 26 percent of business publication sites claim profitability. More than two-thirds sell advertising space on their site and half of the money spent online came at the expense of other mediums, mostly print advertising. (http://www.bpai.com)
The Name Game
More than 80 percent of all companies created a new name during the last two years, according to a survey of marketing and communications execs at 400 U.S. firms. Creation of a new name - for a company, service or division - is more difficult than in the past, says Steve Rivkin, president of Rivkin & Associates, Glen Rock, N.J., and author of the study. PR firms have traditionally been low on the list of the most effective strategists in renaming a company. Top honors are going to naming consultants and advertising agencies.
"Today, a new name has to work overtime to slice through the clutter," he says. "A new name has to hit the trifecta - it has to be distinct, memorable and meaningful." In 1997, more than 192,000 new trademark applications were added to the 1.2 million active trademarks already registered domestically, Rivkin says.
During 1998, 83 percent of those surveyed introduced a new name for a product or service, or for part of a company. Only 56 percent admitted to testing the name before making it public. Sixty-two percent say they are conducting more naming projects overall than 5 years ago; only 21 percent say they are working on fewer name-change projects. Close to two-thirds admit it is considerably more difficult to generate a new name then it was five years ago.
Contact: Steve Rivkin, Rivkin & Associates, 201/670-1370
Measuring Internet Return
The metrics involved in finding value for Net investments are similar to the task of counting how many beans are in a pickle jar. Managing flow of traffic within a Web site has become increasingly more scientific, according to a recent Forrester Research [FORR] study which concludes that firms with a Net presence are shifting emphasis from basic infrastructure to promotion and commercial applications.
Successful Web sites are those that visualize the big picture, the report says, and understand the value of measurement as it relates to all aspects of business. Forrester suggests that companies mandate a system of capturing the basic information of all who visit the site and use that data to construct pertinent and useful content. It also pushes companies to increase the breadth and depth of Web research and development efforts and to create an "integration blueprint."
The Internet, Forrester says, will be "stealing" funding from other media and channels, thus the ability to closely monitor the response of different corporate online strategies is key. As firms more accurately assess Net promotions, they will become more willing to invest in online promotional activities. In fact, infrastructure spending will shift from content to measurement, the Forrester study predicts.
With this in mind, future PR efforts must take into consideration the power and reach of the medium and be educated on the value of measurement. (Dana L. Tower, Forrester Research, 617/497-7090.)