http://online.wsj.com/article/SB122938787020808913.html
The recession is hitting every market hard right not. That includes to my surprise, the online video ads market. Projections for the total amount of money being spent on online ads in 2008 was $850 million, which is a 45% increase of the total spending in 2007. But the real number are starting to come in and the true numbers are falling well short of expectations, but the spending is still increasing.
Some believe that the total online ad spending is down because of the recession, while other think that it has to do with the lack of overall efficiency becuase of the lack of a true viewing format and due to high placement prices. There are also many different sites on which NBC, CBS, and ABC shows are being viewed on which affect which type of person is viewing the video and that is trouble for marketers who are trying to appeal to certian markets.
I think that online shows should have no commercials. I believe that sponsors should just pay for the entire show to be commerical free. The sponsors would get a commerical at the beginning of the show and one during the middle that only last about 5 to 10 seconds. They are starting to do this on real TV sometimes for big events. I think that this world work best for online viewing because people are going on their for convienence and dont want to waste their time watching worthless commericals.
Wednesday, December 17, 2008
Thursday, December 11, 2008
The Best Vending Machine Ever!
http://online.wsj.com/article/SB122895835251696731.html
Redbox is the greatest vending machine/movie rental store ever! In case you didn't know Redbox is a vending machine that is basically a mini and super cheap and convenient movie store. They are located in front of many popular stores (McDonald's and Gaint Eagles). Redbox only charges $1 to rent all new and old movies and they also have a cool feature where you can buy the used movies for $9. This new technology and service is not a big hit with everyone.
Currently Universal Studios and Redbox and in an on going battle. Universal believes that Redbox is ruining the sales and rentals of their new videos. This is because Universal usually charges around $20 to buy their newly released movies. Universal is trying to stop Redbox from purchasing and distributing their movies currently. They have also tried to lay out a new plan for Redbox, which would only allow them to have 8 copies of a movie in their kiosks. Redbox would also not receive the movie until 45 days after its release date. I think that this plan by Universal is a horrible idea. Instead of trying to change this new way of business I think that they should adapt to it and lower their prices.
Redbox's low prices are also hurting the sales of Blockbuster and other movie rental stores. Conventional movie stores can not compete with the price that Redbox is offering because they have pay for their buildings and pay for staffing. Redbox does not have to deal with any of that. That is why I believe that Redbox is one of the greatest inventions/ideas ever! Low cost. High profit!
Redbox is the greatest vending machine/movie rental store ever! In case you didn't know Redbox is a vending machine that is basically a mini and super cheap and convenient movie store. They are located in front of many popular stores (McDonald's and Gaint Eagles). Redbox only charges $1 to rent all new and old movies and they also have a cool feature where you can buy the used movies for $9. This new technology and service is not a big hit with everyone.
Currently Universal Studios and Redbox and in an on going battle. Universal believes that Redbox is ruining the sales and rentals of their new videos. This is because Universal usually charges around $20 to buy their newly released movies. Universal is trying to stop Redbox from purchasing and distributing their movies currently. They have also tried to lay out a new plan for Redbox, which would only allow them to have 8 copies of a movie in their kiosks. Redbox would also not receive the movie until 45 days after its release date. I think that this plan by Universal is a horrible idea. Instead of trying to change this new way of business I think that they should adapt to it and lower their prices.
Redbox's low prices are also hurting the sales of Blockbuster and other movie rental stores. Conventional movie stores can not compete with the price that Redbox is offering because they have pay for their buildings and pay for staffing. Redbox does not have to deal with any of that. That is why I believe that Redbox is one of the greatest inventions/ideas ever! Low cost. High profit!
Wednesday, December 3, 2008
More Problems For Retail Stores
Retail stores are going through a rough time right now. With the all the economic problems Americans are facing today, retail stores are showing lower earnings and profits, which in turn leads to layoffs. In an article that I read today in the Wall Street Journal (http://online.wsj.com/article/SB122831827531375837.html), retail stores are facing another problem, online merchandisers and stores.
Online retailers are becoming a major competitor and alternative to old school retail shops and stores. Online sales for the holiday season are expected to be up from last year and Black Friday online sales were up 15% from last year. Many experts believe that the reason why online shopping is becoming more popular because off the super discounts that they offer in addition to the free shipping that is becoming a staple in the online sales world.
I think that traditional retail stores will always be a vital way of shopping because people sometimes need to see, test, and feel what they are buying. But I believe that online sales will continue to increase, so retail stores need to start focusing on developing their online sites, in order to capitalize on this new and growing market.
Online retailers are becoming a major competitor and alternative to old school retail shops and stores. Online sales for the holiday season are expected to be up from last year and Black Friday online sales were up 15% from last year. Many experts believe that the reason why online shopping is becoming more popular because off the super discounts that they offer in addition to the free shipping that is becoming a staple in the online sales world.
I think that traditional retail stores will always be a vital way of shopping because people sometimes need to see, test, and feel what they are buying. But I believe that online sales will continue to increase, so retail stores need to start focusing on developing their online sites, in order to capitalize on this new and growing market.
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