<ul><li>Cumulative revenues for <keyword id="9832625" type="General" weightage="80" keywordseo="kantar-marketplace" source="Orion">Kantar Marketplace</keyword> have reached $100 million after just two and a half years of operation.</li><li>Launched in mid-2019, <keyword id="1199021" type="General" weightage="100" keywordseo="kantar" source="Orion">Kantar</keyword> Marketplace offers insights professionals, marketers and agencies the ability to build meaningfully different brands with speed and agility.</li></ul>Kantar, world’s leading data-driven analytics and brand consulting company, today announces a milestone in its transformation journey. Cumulative revenues for Kantar Marketplace, its market research platform, have reached $100 million after just two and a half years of operation. <br /><br />Launched in mid-2019, Kantar Marketplace offers insights professionals, marketers and agencies the ability to build meaningfully different brands with speed and agility. Built on a foundation of Kantar’s industry-leading expertise and proven methodologies, it delivers decision-quality insights in as little as a few hours. The automated platform features a range of consumer insights solutions that accelerate business decision-making, whether brands are getting feedback on an idea, developing a new product or launching a campaign.<br /><br />In 2021 YTD* Kantar Marketplace is:<br /><br /><ul><li>Testing approximately 1000 creative and innovation assets per month, up 250% compared with 2020 YTD.</li><li>Serving more than 500 client organisations, an increase of 150% in 2020, including Coca-Cola, Diageo, Johnson &amp; Johnson, Mastercard, Samsung, Reckitt, Vodafone, Walgreens Boots Alliance and many more.</li><li>Available in 65 markets globally.</li></ul>The newest solution suite on Kantar Marketplace is designed to support the innovation and product development lifecycle, with tools to help clients identify the best ideas, test and optimise concepts, and get to market quickly with packaging design testing. This builds on the creative effectiveness, media optimisation and brand insights solutions available on the platform.<br /><br />Commenting on the achievement, <keyword id="12488007" type="General" weightage="20" keywordseo="will-galgey" source="Orion">Will Galgey</keyword>, Managing Director, Kantar Marketplace, said “This is a fantastic milestone for Kantar Marketplace. The context that our clients’ businesses operate in is evolving rapidly, and they expect high quality insights faster than ever before. To have achieved $100m in sales just 30 months from launch is a ringing endorsement of the platform and our team. The growth in client users, as well as the increasing frequency with which clients turn to the platform to address their research needs, gives us great confidence that Kantar Marketplace will only go from strength to strength as more products and clients come onboard.”

Kantar Marketplace hits $100 million revenue milestone

<p><em><em><em><strong><keyword id="1737805" type="UNKNOWN" weightage="60" keywordseo="Social-Media-Insights">Social Media Insights</keyword></strong> is a daily newsletter from <strong>Business Insider</strong> that collects and delivers the top <keyword id="6354632" type="COMPANY" weightage="60" keywordseo="Social-media">social media</keyword> news first thing every morning. You can <strong><a href="http://www.businessinsider.com/newsletter">sign up</a></strong> to receive <strong>Social Media Insights</strong> <strong><a href="http://www.businessinsider.com/newsletter">here</a></strong> or at the bottom of this post.</em></em></em></p>
<hr />
<p><div class="image-container float_right" style="width:400px"><div class="image"><img src="http://static3.businessinsider.com/image/5149b5b4ecad04a15c000002-2048-1536/march%20madness.jpg?maxX=400&amp;maxY=300" border="0" alt="march madness" width="400" height="300" style="float: right;" /></div><p class="source"><a href="http://www.flickr.com/photos/netback/6858451488/">Flickr/netback productions</a></p></div><strong><a href="http://www.forbes.com/sites/aliciajessop/2013/04/08/viewership-and-social-media-help-march-madness-beat-the-super-bowl-in-ad-revenue-generation/">Social Media Helps March Madness Beat The Super Bowl In Ad Revenue</a> (Forbes)</strong><br />According to the NCAA, 7.7 million social media comments about the tournament are made during telecasts. This social media dialogue extends beyond the game, to discussions about the NCAA’s <keyword id="952232" type="UNKNOWN" weightage="60" keywordseo="March-Madness">March Madness</keyword> corporate partners. The NCAA reports that there are 1.5 billion online conversations that occur about corporate partners throughout the tournament. According to Kantar Media, 266 different marketers have spent more than $5.9 billion on advertising during March Madness over the last decade. The biggest ad spend was seen during last year’s tournament, when advertisers spent just over $1 billion. This year’s <keyword id="101238" type="SPORT" weightage="60" keywordseo="Super-Bowl">Super Bowl</keyword> raked in $976.3 million in advertising revenue. The social media reach of March Madness is arguably driving the increase in ad spend during March Madness, as ad spending has increased by 64 percent over the last two years. <a href="http://www.forbes.com/sites/aliciajessop/2013/04/08/viewership-and-social-media-help-march-madness-beat-the-super-bowl-in-ad-revenue-generation/">Read &gt;&gt;</a></p>
<p><div class="image-container float_left" style="width:225px"><div class="image"><img src="http://static1.businessinsider.com/image/5163e9c169bedd7625000009-324-255/150845.gif" border="0" alt="real-time marketing social analytics" width="225" height="177" style="float: right;" /></div><p class="source"><a href="http://www.emarketer.com/Article/Real-Time-Marketing-Grows-Importance-Social-Analytics-Improve/1009669#Utd60GSkUqIpbWsS.99">Infogroup Targeting Solutions and Yesmail Interactive via eMarketer</a></p></div><strong><a href="http://www.emarketer.com/Article/Real-Time-Marketing-Grows-Importance-Social-Analytics-Improve/1009669#Utd60GSkUqIpbWsS.99">Real-Time Marketing Grows In Importance As Social Analytics Improve</a> (eMarketer)</strong><br />The age of real-time marketing is nigh, according to a new report by eMarketer. Marketers are already well-versed in analyzing social media sentiment for clues to brand health, and most have the capability to respond to comments and complaints on social media. But more are now tapping the services of social analytics vendors, digital agencies and PR firms to also use social data for a variety of outbound marketing activities. In a 2012 survey conducted by Infogroup Targeting Solutions and Yesmail Interactive, 53 percent of marketers worldwide said they planned to make greater use of real-time data in 2013. In addition, 80 percent of surveyed marketers said they planned to use social media data in their broader marketing efforts. <a href="http://www.emarketer.com/Article/Real-Time-Marketing-Grows-Importance-Social-Analytics-Improve/1009669#Utd60GSkUqIpbWsS.99">Read &gt;&gt;</a></p>
<p><div class="image-container float_right" style="width:225px"><div class="image"><img src="http://static1.businessinsider.com/image/5163ea9deab8ea6b7700001b-324-483/6a00d83451b36c69e2017d42a1db06970c-350wi.gif" border="0" alt="social media multi-tasking" width="225" height="335" style="float: right;" /></div><p class="source">eMarketer</p></div><strong><a href="https://www.mediabistro.com/alltwitter/social-multitasking-study_b39451">The Rise Of Social Media Multitasking</a> (eMarketer via Mediabistro)</strong><br />More than eight in 10 <keyword id="6354576" type="CITY" weightage="60" keywordseo="Facebook">Facebook</keyword> users, and around two-thirds of Twitter users have actively used these social media sites while they are watching TV, reveals a new study. But that’s not all. It turns out social media users are great multitaskers all round, with social media being a popular concurrent pastime whilst traveling, working and shopping, and even when using the lavatory. More than half of Facebook users and just over a third of Twitter users admitted to <keyword id="6379342" type="UNKNOWN" weightage="60" keywordseo="Social-Networking">social networking</keyword> whilst on the toilet, and slightly less have done so whilst drunk, notes a study last month from CreditDonkey. Of most concern is the revelation that almost one in five (19 percent) have used Facebook whilst driving. <a href="https://www.mediabistro.com/alltwitter/social-multitasking-study_b39451">Read &gt;&gt;</a></p>
<p><strong><a href="http://techcrunch.com/2013/04/08/report-46-of-social-login-users-still-choose-facebook-but-google-is-quickly-gaining-ground/">Social Login Users Still Choose Facebook, But Google Is Quickly Gaining</a> (Janrain via TechCrunch)</strong><br />Since <keyword id="6355629" type="CITY" weightage="60" keywordseo="Google">Google</keyword> launched its Google+ sign-ins earlier this year, social logins have suddenly become a hot topic again. According to the latest data from social login provider Janrain, Facebook continues to be the most popular identity provider for social logins, but the social network is starting to lose some ground to Google.</p>
<p><div class="image-container center" style="width:600px"><div class="image"><img src="http://static6.businessinsider.com/image/5163eb746bb3f75232000012-600-400/q1-2013-social-login-trend.png" border="0" alt="social media login" width="600" height="400" style="vertical-align: middle;" /></div><p class="source">Janrain</p></div></p>
<p>Facebook currently accounts for about 46 percent of social logins on Janrain and Google’s share is 34 percent. For Facebook, that’s a 3 percent drop from the fourth quarter 2012, however. Meanwhile, Google’s share increased by 3 percent. This is the second consecutive quarter during which Facebook lost ground to Google. <a href="http://techcrunch.com/2013/04/08/report-46-of-social-login-users-still-choose-facebook-but-google-is-quickly-gaining-ground/">Read &gt;&gt;</a></p>
<p><strong><a href="http://etfdailynews.com/2013/04/08/facebook-inc-fb-why-the-stock-is-set-to-move-higher/">Why Facebook Stock Is Set To Go Higher</a> (ETF Daily News)</strong><br />Facebook is stalling in the mid-$20 range, as the market looks for evidence that the company can make money from its user base. Its share price may really explode upward if the company can monetize this massive user base. The future for the company will lie with its aggressive shift into mobile advertising. The price is still well below its $38 IPO price and its $45 high reached on Facebook’s May 18, 2012 debut; but don't be surprised to see the stock eventually head back toward its IPO price.  <a href="http://etfdailynews.com/2013/04/08/facebook-inc-fb-why-the-stock-is-set-to-move-higher/">Read &gt;&gt;</a></p>
<p><strong><a href="http://politics.co.uk/comment-analysis/2013/04/09/inforgraphic-margaret-thatcher-the-social-media-reaction">Margaret Thatcher: The Social Media Reaction</a> (Meltwater via Politics.co.uk)</strong><br />Check out how you reacted to the passing of Margaret Thatcher.  <a href="http://politics.co.uk/comment-analysis/2013/04/09/inforgraphic-margaret-thatcher-the-social-media-reaction">Read &gt;&gt;</a></p>
<p><div class="image-container center" style="width:468px"><div class="image"><img src="http://static6.businessinsider.com/image/5163f136eab8ea4e0c000012-468-1293/14086866.png" border="0" alt="social media responds to margaret thatcher's death" width="468" height="1293" style="vertical-align: middle;" /></div><p class="source">meltwater</p></div></p>

Social Media Helps March Madness Beat Super Bowl In Ad Revenue

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/589aeaf43149a106788b4631-2400/undefined" alt="Bob Iger Disney CEO" data-mce-source="VCG/Getty Images" /><p class="source"><span>VCG/Getty Images</span></p><p class="caption">Disney CEO Bob Iger is looking to new ways of competing with digital streaming.</p></div><p></p></div></div>Good morning. Here's everything you need to know in the world of <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> today.</p><p><strong>1. <a href="http://www.businessinsider.com/disney-ceo-bob-iger-says-there-are-too-many-ads-on-tv-2017-2">Disney is looking at reducing the number of ads shown on ABC and ESPN</a>. </strong>Disney CEO Bob Iger thought the channels had too much commercial interruption, especially when it is competing with digital upstarts like Netflix, which don't show any ads.</p><p><strong>2. <a href="http://www.businessinsider.com/fox-gets-500-million-from-super-bowl-2017-2">The Super Bowl drove $500 million in revenue for Fox</a>. </strong>The game had one of the smallest audiences in four years - only 111 million viewers - but the $5 million price for 30 seconds of ad space drove the channel's massive revenue windfall.</p><p><strong>3. <a href="http://www.businessinsider.com/smart-tv-company-vizio-fined-22-million-for-tracking-customers-viewing-habits-2017-2">Smart TV company Vizio was fined for tracking users' viewing habits</a>. </strong>The American TV company was fined $2.2 million for collecting owners' watching habits without first informing them.</p><p><strong>4. <a href="http://www.businessinsider.com/hoosuite-acquires-facebook-instagram-ads-optimization-startup-adespresso-2017-2">Hootsuite acquired ads optimization startup AdEspresso</a>. </strong>The social media management service wants to grow its paid advertising operations.</p><p><strong>5. <a href="http://www.businessinsider.com/why-medialink-sold-to-ascential-for-207-million-2017-2">Cannes Lions organizer Ascential acquired MediaLink</a>. </strong>The business consultancy, which sat in on "something like 60% of the most important advertising reviews" last year, was acquired for an initial consideration of $69 million, but the total consideration, including earn-outs, could total $207 million.</p><p><strong>6. <a href="http://www.businessinsider.com/tiffany-downgraded-as-execs-flee-2017-2">Tiffany is facing one of the most uncertain times in its history</a>. </strong>The research firm Mizuho Securities recently downgraded Tiffany stock following its CEO stepping down last week in the midst of disappointing financial results.</p><p><strong>7. <a href="http://www.businessinsider.com/kantar-media-super-bowl-stats-2017-2">23% of the Super Bowl show was commercials</a>. </strong>A total of 51 minutes and 40 seconds of the broadcast were ads, according to Kantar Media, the second highest amount of ad time in the game's history.</p><p><strong>8. <a href="http://www.thedrum.com/news/2017/02/08/akqa-lands-singapore-australia-and-new-zealand-via-partnership-with-digital-agency">Creative agency AKQA is partnering with another WPP agency, DT, to break into Australia, New Zealand, and Singapore, The Drum reports</a>. </strong>The DT brand will be dropped and staff will become part of the global AKQA network.</p><p><strong>9. <a href="http://adage.com/article/agency-news/publicis-groupe-wins-millercoors-media-business/307882/">Publicis has won the MillerCoors media account, AdAge reports</a>. </strong>The beverage brand concluded a review that began in September and is moving its media buying budget, which was $456 million in the US in 2015 according to Kantar Media, from IPG to Publicis Groupe.</p><p><strong>10. <a href="https://www.fastcocreate.com/3067946/super-bowl-li/apple-ad-legend-lee-clow-says-it-was-a-weak-year-for-super-bowl-spots">Lee Clow, TBWA Worldwide chairman, said 2017 was a weak year for Super Bowl ads</a>. </strong>The man behind Apple's most famous ads said in an interview with Fast Co. that "there wasn't as much charm, humor, creativity as usual."</p>      <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/wwe-chief-marketing-revenue-officer-michelle-wilson-ces-interview-2017-1">WWE's marketing and revenue boss says its content output has doubled in the last 5 years, all thanks to digital</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="A5cGMxOTE6oUhPOPDBPRWLoCAT8iKGn4" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'A5cGMxOTE6oUhPOPDBPRWLoCAT8iKGn4',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

The 10 things in advertising you need to know today

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5d7baf9d2e22af24a63ed328-901/iphone 11 yellow.png" border="0" alt="iPhone 11 Yellow" data-mce-source="Lisa Eadicicco/Business Insider" /><p class="source"><span>Lisa Eadicicco/Business Insider</span></p></div><p></p></div></div></p><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/apple">Apple</a> is positioning its least expensive new <a href="https://www.businessinsider.com/category/iphone">iPhone</a>, the iPhone 11, as its flagship model for 2019.</li><li>That says a lot about the company's strategy, indicating that it now realizes many people aren't willing to pay upwards of $1,000 for a new phone.</li><li>The launch comes after the company launched the successful iPhone XR last year, which was similarly priced and positioned as being a more affordable alternative to the flagship iPhone XS.</li><li>It also comes as people are upgrading their smartphones less frequently as phones have become increasingly expensive.</li><li><a href="https://www.businessinsider.com/">Visit Business Insider's homepage for more stories.</a></li></ul><p>Apple's iPhone X launch in 2017 marked an important milestone for the product - not just because it was the first iPhone to offer facial recognition, or because it set a design precedent for iPhones to come.</p><p>It also marked the beginning of an era in which our smartphones would become more expensive than ever before, establishing $1,000 as the normal price for a new device.</p><p>But Apple seems to be changing its tune this year. Yes, it still sells new iPhones that cost upwards of $1,000. But those phones are high-end models branded as the Pro version of the new iPhone, while the iPhone 11 is priced at $700.</p><p>That represents a departure from Apple's approach in 2018, when it launched the now-discontinued iPhone XS at $1,000 and its larger sibling the iPhone XS Max at $1,100. It also released the iPhone XR for $750 - the only model from last year that the company still sells alongside its new phones. The iPhone XR, however, was largely perceived as being a low-cost alternative to Apple's iPhone XS - not its flagship model.</p><p><em><strong>Read more:</strong> <a href="https://www.businessinsider.com/apple-iphone-11-pro-launch-camera-features-phones-changing-2019-9">Apple's iPhone 11 launch is proof that the smartphone industry is going through a massive change</a></em></p><p>The fact that Apple's cheapest new iPhone is being branded as its flagship says a lot about the company's strategy. Specifically, it indicates that Apple learned an important lesson from its 2018 launch  - that many people aren't willing to pay $1,000 for a new smartphone.</p><h2>The cheaper iPhone XR was a hit last year</h2><p>That's evidenced by the success of the iPhone XR, which <a href="https://9to5mac.com/2019/07/22/iphone-xr-most-popular-model/">accounted for 48% of Apple's iPhone sales</a> in its fiscal third quarter, according to a report from Consumer Intelligence Research Partners. Data from marketing firm <a href="https://www.awin.com/gb/news-and-events/industry-news/how-the-iphone-xr-saved-apple">Awin</a> also indicates that the iPhone XR's launch in the month following its release outperformed the iPhone XS by 146%, according to the company. The firm also says its data shows that cheaper iPhone models like the iPhone 7 and iPhone 8 consistently outsold the $1,000 iPhone X four months after its launch.</p><p>Apple is also positioning its cheapest new iPhone as its flagship model as the company faces increased competition from rivals like Google and OnePlus. The search giant launched <a href="https://www.businessinsider.com/google-pixel-3a-vs-iphone-xs-max-review-2019-5">the Pixel 3a</a> smartphone in May, which starts at just $400 and offers many of the same features of the more expensive Pixel 3. That makes it less than half the price of the iPhone XS. </p><h2>Apple faces tougher competition as smartphone shipments fall</h2><p>OnePlus, which has always called itself the "flagship killer" because of its aggressively low prices, sells its <a href="https://www.businessinsider.com/oneplus-7-pro-vs-samsung-galaxy-s10-specs-camera-display-2019-7">OnePlus 7 Pro</a> for just $670. That phone, like many pricier rivals, offers high-end features like fast charging, an edge-to-edge screen, and a triple-lens camera for hundreds of dollars less than the Samsung Galaxy S10 or iPhone 11 Pro.</p><p>While Samsung's S10 lineup is priced similarly to Apple's latest iPhones, the company also sells cheaper midrange phones like its series of Galaxy A devices. By framing its least expensive new iPhone as the primary model, it seems like Apple is acknowledging that it may be missing an opportunity by sticking with such high prices. </p><p>The move by Apple and Google to market cheaper smartphones comes as consumers are upgrading their phones less often. Verizon said in April that the carrier's upgrade rate fell to a record low, with Matt Ellis, the company's chief financial officer, citing "incremental changes" to new models as a factor, according to <a href="https://www.bloomberg.com/news/articles/2019-04-23/consumer-are-hanging-on-to-older-mobile-phones-in-record-numbers">Bloomberg.</a></p><p>The increasingly expensive prices of today's smartphones is also partially to blame, according Dominic Sunnebo, global strategic insight director at market research firm Kantar Worldpanel. The prices of flagship products from major brands have gone up by 50% over the last two years, Sunnebo <a href="https://www.kantarworldpanel.com/global/News/Dominic-Sunnebo-People-hold-onto-their-phones-longer">wrote in a company blog post.</a></p><p>At the same time, global smartphone shipments have continued to decline worldwide, with <a href="https://technology.ihs.com/616273/global-smartphone-shipments-fall-for-seventh-consecutive-quarter-in-q2-even-with-limited-impact-from-us-huawei-ban">IHS Markit</a> reporting that shipments have fallen for the seventh consecutive quarter. Apple is one of several smartphone makers that have been hit by this trend, as the company reported in <a href="https://www.businessinsider.com/apple-fiscal-q3-earnings-iphone-ipad-mac-services-china-2019-7">its fiscal third quarter earnings</a> that iPhone revenue dropped by 12%.</p><p>Apple recently lost its spot as the third-largest smartphone maker worldwide to Chinese smartphone giant Oppo as well, according to IHS Markit, with the firm citing "super-premium pricing" and "insufficient price elasticity" as part of the reason. </p><p>At $700, the iPhone 11 isn't exactly a cheap purchase. But that pricing is a sign that Apple is acknowledging it must offer more flexibility when it comes to pricing if it wants to encourage upgrades and stay competitive. </p><p class="tagline">Get the latest Google stock price<a href="http://markets.businessinsider.com/stock/GOOG-Quote"> here.</a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/apple-airpods-review-wireless-headphones-sound-quality-battery-life-2019-8">AirPods are the best-selling wireless headphones, but their sound quality, battery life, and environmental impact could be better</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/GcbDnBLI-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

The iPhone 11 proves Apple learned an important lesson after last year's iPhone launch - most people don't want to pay $1,000 for a new smartphone

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5dadf0974af90948186705a3-787/johnson-johnson.jpg" border="0" alt="johnson johnson" data-mce-source="Getty Images" /><p class="source"><span>Getty Images</span></p><p class="caption">J&amp;J is a major client for three ad holding companies: WPP, Omnicom, and IPG.</p></div><p></p></div></div></p><ul class="summary-list"><li>WPP, the world's largest ad agency holding company, just lost a huge chunk of one of its oldest, most valuable accounts, Johnson &amp; Johnson.</li><li>WPP shut down its dedicated division for J&amp;J's consumer products in July as a result.</li><li>The loss impacts the majority of the J&amp;J account, which meant an estimated $75-$100 million in annual revenue to WPP.</li><li>The mega-conglomerate has slashed its marketing budget in recent years, cutting spending by more than 13% in 2018 and 10% so far in 2019.</li><li>After the WPP split, Johnson &amp; Johnson chose much-smaller agency Doner, part of the MDC Partners network, to handle <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> for Tylenol, Listerine, and Zyrtec.</li><li>Despite these cuts and fighting high-profile class action lawsuits, Johnson and Johnson easily beat earnings estimates for Q3.</li><li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li></ul><p>As the ad agency holding company model continues to face challenges on all sides, the world's largest such network, WPP, just lost most of the business of one of its oldest and most valuable clients, Johnson &amp; Johnson.</p><p>As a result of that loss, WPP in July dissolved called The Neighborhood, the dedicated division it created last year to market Johnson &amp; Johnson's consumer products in the United States.</p><p>The closure followed a series of cuts to Johnson &amp; Johnson's ad budget earlier this year and a decision to stop using WPP to advertise its North American consumer products, several sources with direct knowledge told Business Insider.</p><p>One person tied J&amp;J's decision to changes in WPP leadership, saying J&amp;J was unhappy with a series of executive-level departures in recent months.</p><p>J&amp;J and JWT had one of the ad industry's oldest agency-client relationships. Agency founder James Thompson befriended Robert Wood Johnson, one of the three brothers who started the company, and <a href="https://www.kilmerhouse.com/2011/04/125-years-ago-our-sales-office-and-advertising">created some of its earliest ads</a> in the late 18th century.</p><h2>The top-earning pharma company just chose to 'evolve' its ad agency model again</h2><p>"Johnson &amp; Johnson Consumer recently established a new business model that streamlines our priorities and allows us to be more agile and focuses on relevant innovations that provide the most positive impact on our consumers' lives," said a company spokesperson. "As we look ahead to 2020, we've identified ways to evolve our agency ecosystem to better support our business."</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/omnicom-to-fold-mcdonalds-ad-agency-2019-9">McDonald's demanded that Omnicom create an ad agency dedicated to its business. Now that unit will fold.</a></em></p><p>"After a great deal of analysis and consideration, we made the difficult decision to end our AOR partnership in the United States with bespoke agency solution, The Neighborhood, led by Wunderman Thompson," the spokesperson continued. "We're grateful for the team's partnership and collaboration and we're proud of the work we've achieved together. Our partnerships with Wunderman Thompson outside the US remain intact."</p><p>It's unclear how many WPP employees lost their jobs as a result of the move. A holding company spokesperson declined to comment.</p><p>J&amp;J is by far the world's most profitable pharma company, but it faces legal challenges to all three divisions of its business. Ongoing or recently concluded lawsuits allege that its medical device ads misled consumers, that its prescription painkillers contributed to the opioid epidemic, and that talc in its baby powder led to thousands of cases of cancer over decades.</p><h2>J&amp;J consolidated work with holding companies last year to save money on marketing</h2><p>The Neighborhood was housed in the offices of creative agency J. Walter Thompson, or JWT, after review that was limited to the client's main holding company partners WPP and Omnicom. At the time, The Wall Street Journal <a href="https://www.wsj.com/articles/inside-j-js-effort-to-cut-costs-and-drive-integration-at-ad-firms-wpp-and-omnicom-1521802800">reported that the review's goal</a> was to cut costs by 30% by consolidating creative, production, PR, in-store marketing and other functions on a holding company-wide level and ending J&amp;J's contracts with other agencies.</p><p>The Neighborhood included staff from agencies JWT, VML, Hogarth, and Geometry as well as PR firms Ogilvy, Marina Maher Communications and Burson Cohn Wolfe. Omnicom's equivalent, Velocity, consists of creative shops DDB, BBDO, and various Omnicom PR teams. IPG <keyword id="6354777" type="COMPANY" weightage="60" keywordseo="Media">Media</keyword>brands agency UM continues to handle media planning and buying for Johnson and Johnson.</p><p>J&amp;J continued to look for ways to cut its operating expenses. This past May, Adweek <a href="https://www.adweek.com/agencies/johnson-johnson-cuts-marketing-budget-affecting-partners-omnicom-and-wpp/">reported that The Neighborhood and Velocity</a> were hit by a 13% year-over-year reduction in Johnson and Johnson's paid media budget. A spokesperson then confirmed to <a href="https://www.mmm-online.com/home/channel/agencies/5-agency-questions-for-johnson-johnsons-michael-sneed/">PRWeek</a> that there had been cuts on the ad side but said the model remained "strong." Two months later, The Neighborhood closed.</p><h2>A new agency will oversee marketing for Tylenol, Listerine, and Zyrtec</h2><p>After dropping WPP, Johnson &amp; Johnson hired Doner, a far smaller network owned by holding company MDC Partners.</p><p>Johnson &amp; Johnson confirmed that Doner would lead creative for Tylenol, Listerine and allergy medication Zyrtec, and that Velocity continues to work on its consumer health business. </p><p>Two people with knowledge of the matter also said that Omnicom picked up some new business. Spokespeople for Doner and Omnicom's lead agency DDB declined to comment.</p><p>Data intelligence firm Kantar estimated Johnson &amp; Johnson spent just over $394 million on marketing in the U.S. in the first six months of 2019, down 10% from the year-ago period. About three-quarters of that total went to consumer goods, though the company earns nearly three times as much revenue from pharma sales worldwide, according to <a href="http://johnsonandjohnson.gcs-web.com/static-files/31eada02-b65b-4bf3-8f7a-ff19b29ab26f">last week's quarterly earnings report</a>.</p><p>The sources who spoke to Business Insider said J&amp;J consolidated much of its U.S. pharma marketing business with WPP in 2018, around the same time The Neighborhood launched; the company will retain that work moving forward.</p><p class="tagline"><a href="https://www.businessinsider.com/intelligence/top-10-trends-in-digital-media?IR=T&amp;itm_source=businessinsider&amp;itm_medium=ctgr_bii&amp;itm_term=ctgr_leadgen&amp;itm_content=advertising&amp;itm_campaign=top-10-trends-in-digital-media"><img src="https://static.businessinsider.com/image/5c3dfe69d4beaf36ab26e737" alt="Exclusive FREE Slide Deck: Top 10 Trends in Digital Media by Business Insider Intelligence" border="0" style="margin: 0 auto !important; width: 100% !important; min-width: 280px !important; max-width: 640px !important" /></a></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/real-map-louisiana-should-scare-you-2017-6">Most maps of Louisiana aren't entirely right. Here's what the state really looks like.</a></h3>        <div>            <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/0fGcRfm5-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script>        </div>    </div>

WPP&#160;just lost a huge chunk of one of its oldest, most valuable accounts, Johnson & Johnson

<p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5cffb65cba3a73310973b212-2000/mcdonalds beijing china.jpg" border="0" alt="McDonalds beijing china" data-mce-source="AP Photo/Andy Wong" /></div></div></div></p><ul class="summary-list"><li>In a major strategic shift, McDonald's hired independent agency Wieden + Kennedy to run its US creative <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> as the fast-food chain tries to keep up with buzzier rival Burger King.</li><li>W+K is best known as the lead agency for Nike, Bud Light, Old Spice, and Delta.</li><li>An internal memo from W+K's agency leadership positioned the win as a victory for creativity over pure data, in a dig at bigger rivals.</li><li>We Are Unlimited, an entity launched by holding company Omnicom in 2016 to handle the McDonald's business, did not pitch for the business.</li><li>In another first, McDonald's will also allow W+K to continue serving as agency of record for rival KFC.</li><li><strong><a href="https://www.businessinsider.com/prime?module=article&amp;area=summary">Click here for more BI Prime stories</a>.</strong></li></ul><p>McDonald's took a 180-degree strategic turn this month by naming independent agency Wieden + Kennedy to lead its creative advertising business in the US after an extended review.<strong> </strong></p><p>According to an internal memo that Wieden leadership sent out to all staff when the news went live on Friday afternoon, the win marked a repudiation of the biggest industry trend in recent years, where agencies hyped their ability to use consumer data as the key factor in creating and targeting ads.</p><p><em><strong>Read more</strong>: <a href="https://www.businessinsider.com/mcdonalds-buys-ai-speech-company-apprente-automate-drive-thrus-2019-9">McDonald's bought an AI speech company to take the human interaction out of drive-thrus</a></em></p><p>In the memo, agency co-presidents Colleen DeCourcy and Tom Blessington positioned the win as a victory for "the power of creativity," arguing that the quality of their team's creative concepts, in combination with "insight" and "intelligence" drawn from internal market research, beat out the numbers and algorithms presented by Big Four holding company Omnicom.</p><p>McDonald's is the world's largest fast food chain by revenue, but its marketing efforts have not earned the industry plaudits of rivals like Burger King, which scored the top prize at this summer's Cannes Lions Festival of Creativity for the "Whopper Detour" campaign that let customers buy a Whopper for one penny - but only if they visited a nearby McDonald's first.</p><p>Omnicom's stock price has fallen by about 3% since news of the loss went live on Friday.<a href="https://www.businessinsider.com/mcdonalds-buys-ai-speech-company-apprente-automate-drive-thrus-2019-9"></a></p><h2><strong>McDonald's picked Nike's longtime agency in a pivot toward more focus on creative excellence</strong></h2><p>Portland, Oregon-based W+K is best-known as the agency behind Nike's ubiquitous 30-year-old "Just Do It" campaign as well as Old Spice's "The Man Your Man Could Smell Like," and, more recently, Bud Light's "Dilly Dilly."</p><p>W+K defeated Omnicom-owned competitors TBWA\Chiat\Day New York and adam&amp;eveDDB in a nine-month review that began as a pitch for a single project but evolved into a race to lead McDonald's ad business in the world's biggest fast food market.</p><p>A sign of the significance of W+K's win is that incumbent We Are Unlimited, a Chicago-based entity that the holding company created to service the McDonald's account in 2016 after beating out rival Publicis, was not involved in the pitch at all. We Are Unlimited is part of Omnicom's DDB Worldwide network, and CEO Wendy Clark and former McDonald's CMO Deborah Wahl <a href="https://adage.com/article/cmo-strategy/mcdonald-s-picks-omnicom-winner-creative-review/305635">described it at its launch as the</a> "agency of the future." It promoted itself as having "digital and data at the heart" and <a href="http://www.omnicomgroup.com/newsroom/omnicom-s-new-mcdonald-s-agency-launches-as-we-are-unlimited/">included "embedded teams"</a> from companies like Facebook, Google, Twitter, and Adobe working alongside its own employees.</p><p>In an uncharacteristically sharp rebuke to the competition, W+K's memo stated that We Are Unlimited has now been "relegated to an operational role" on the McDonald's business, though it will retain a small portion of the work it previously handled for the client.<em> </em></p><p>"We remain a proud partner with McDonald's and are working closely across both the McDonald's and We Are Unlimited teams to ensure we remain focused on our shared goals and priorities," read a statement from a We Are Unlimited representative after Business Insider asked for a response to the W+K memo.</p><p>In a press release announcing the change, McDonald's CMO and former PepsiCo executive Morgan Flatley thanked the team "for their work over the last three years supporting key moments in our transformation and operational excellence."</p><h2><strong>The chain also abandoned past policies in agreeing to share an agency partner with rival KFC</strong></h2><p>According to sources with direct knowledge of the business, the final section of the memo, which is cut off in the version obtained by Business Insider, discussed how Wieden + Kennedy will manage an apparent conflict between McDonald's and another longtime fast-food client, KFC.</p><p>These sources said both companies agreed to allow W+K to participate in the review - a significant strategic shift among fast food brands. Traditionally, such companies forbade their agencies from working with direct competitors. To avoid potential overlap, one source said the two accounts will be strictly separated by office, with W+K Portland handling KFC and W+K New York working on McDonald's. Unspecified "IT safeguards" will also ensure that the brands' accounts do not conflict with one another.</p><p>McDonald's declined to comment beyond its own press release, and representatives for KFC and parent company Yum Brands did not immediately respond to a request for comment.</p><p>According to data insights company Kantar Media, McDonald's spent $765 million on advertising in the US last year.</p><p>See the memo below.</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/5d7fc3332e22af12ef5f3c67-737/mcdonalds memo.jpg" border="0" alt="McDonald's memo" data-mce-source="Business Insider" /></div></div></div></p>

Internal memo from McDonald's new ad agency reveals why the world's biggest fast food chain bucked industry trends to reshape its marketing strategy

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Chip Somodevilla/Getty Images" title_caption="Apple CEO Tim Cook." class="zoomin" href="https://static-ssl.businessinsider.com/image/569629c6dd089541698b4817-960/gettyimages-169190994.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/569629c6dd089541698b4817-2038-1529/gettyimages-169190994.jpg" alt="tim cook apple ceo perplexed unhappy glasses" data-mce-source="Chip Somodevilla/Getty Images" data-mce-caption="Apple CEO Timothy Cook testifies before the Senate Homeland Security and Governmental Affairs Committee's Investigations Subcommittee about the company's offshore profit shifting and tax avoidance in the Dirksen Senate Office Building on Capitol Hill May 21, 2013 in Washington, DC. A Congressional report released yesterday said that Apple, America's most profitable technology company, used a complex system of international subsidiaries and tax avoidance efforts to shift at least $74 billion out of the reach of the Internal Revenue Service between 2009 and 2012." /></a><p class="source"><span>Chip Somodevilla/Getty Images</span></p><p class="caption">Apple CEO Tim Cook.</p></div><p></p></div></div>Once again, Apple CEO Tim Cook told investors the secret of iPhone's sales success was "Android switchers."</p><p>But stats from Apple's earnings call, and data from independent market researchers, shows another story: One of the reasons iPhone is running out of steam - <a href="http://uk.businessinsider.com/apple-q1-earnings-2016-1">Cook said sales would decline next quarter</a> - is because Alphabet's Android phone system has been surprisingly resilient as iPhone's franchise has weakened.</p><p>Apple's <a href="http://www.kantarworldpanel.com/global/News/Apple-Ends-2015-as-Leading-Smartphone-Brand-in-US-China#">iOS lost market share in every single major market except China</a> last quarter, according to Kantar Worldwide. That trend was also shown in some research by investment analysts at Raymond James.</p><p>First, let's look at what Cook says.</p><p>Over the last six quarters, Cook has repeatedly said that whatever quarter Apple just filed set a new "record" for customers who switch from an Android phone to Apple.</p><p><a href="http://seekingalpha.com/article/3836826-apples-aapl-ceo-tim-cook-q1-2016-results-earnings-call-transcript?part=single">Apple's fiscal Q1 2016 call</a> last night, was no different, Cook said:</p><p style="padding-left: 30px;">We were blown away by the level of Android switchers that we had last quarter. It was the highest ever by far. And so we see that as a huge opportunity.</p><p>After the launch of iPhone 6 in 2014, that was certainly true. The new format large-screen phones blew Android - and particularly Samsung - out of the water. <a href="http://uk.businessinsider.com/apple-is-an-existential-threat-to-android-2015-2">A lot of people switched</a>. But since then, Apple has not managed to persuade a majority of iPhone users with older phones to upgrade into the iPhone 6 or iPhone 6s lines. Cook said last night (emphasis ours):</p><p style="padding-left: 30px;">The number of people who had an iPhone prior to the iPhone 6 and 6 Plus announcements -- and so this was in September of 2014 that have not yet upgraded to a 6, 6 Plus or 6s or 6s Plus is now 60%. So, another way to think about that is 40% have, <strong>60% have not.</strong></p><p>Kantar published some new data on iOS vs Android today. Android switchers may actually be in decline, according to Carolina Milanesi, chief of research at Kantar Worldpanel ComTech:</p><p style="padding-left: 30px;">Apple loyalty in the U.S. is at its highest since 2012, reinforcing the fact that customer retention is not an issue. However, customer acquisition from Android has gone from 13% in 4Q14 to 11% in 4Q15, and the contribution that first-time smartphone buyers make to Apple overall sales numbers went from 20% to 11% over that same period.</p><p>Here are Kantar's stats for Apple's major markets. It lost share everywhere except China:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Kantar Worldwide" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4711-960/kantar-december-2015-2.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4711-700-863/kantar-december-2015-2.jpg" alt="kantar december 2015 2" data-mce-source="Kantar Worldwide" /></a><p class="source"><span>Kantar Worldwide</span></p></div><p></p></div></div></p><p>On January 19, Raymond James published this chart from its own survey, showing that while the late 2014 iPhone 6 launch did hurt Android, Android has since clawed its way back:</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Raymond James" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4712-960/screen shot 2016-01-27 at 10.43.58.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4712-1233-747/screen shot 2016-01-27 at 10.43.58.png" alt="Raymond James" data-mce-source="Raymond James" /></a><p class="source"><span>Raymond James</span></p></div><p></p></div></div></p><p>This chart shows that Android customers might turn out to be surprisingly loyal in terms of the next phone they want to buy, especially as Samsung's new Galaxy S6 line turned out to be of far higher quality than most reviewers were expecting (Business Insider's Steve Kovach says <a href="http://uk.businessinsider.com/why-the-iphone-always-wins-2016-1">Samsung has "leapfrogged" Apple</a> in terms of hardware design):</p><p><div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image"><a title_source="Raymond James" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4713-960/screen shot 2016-01-27 at 10.44.09.png"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/56a8a985dd08950e128b4713-1179-681/screen shot 2016-01-27 at 10.44.09.png" alt="Raymond James" data-mce-source="Raymond James" /></a><p class="source"><span>Raymond James</span></p></div><p></p></div></div></p><p>Lastly, one of the most surprising things Cook said last night was about prices.</p><p>Cook was talking about Apple's currency problem, which is that devalued international currencies hurt Apple products that are made in, and sold against, a stronger US dollar. Apple CFO Luca Maestri had said earlier on the call that higher prices may have dampened demand for Apple products: "Inevitably over time, higher prices affect demand and so we're capturing that in our guidance. So, I would say these are the major reasons and the drivers for the guidance on revenue," Maestri said. The guidance he was referring to was Apple's expected 11% decline in revenues for next quarter.</p><p>Cook elaborated:</p><p style="padding-left: 30px;">However, I think you can tell from the numbers that Luca is talking about just on the currency side and that's before thinking through the effect that price increases can sometimes have on the business over a period of time, it's clear that the economic piece is large.</p><p>In some ways, this is the most extraordinary issue to come out of last night's call: Apple's two most important executives admitting that Apple products are vulnerable to price competition. For the longest time, the mantra around Apple was that Apple did not compete on price, because its products were superior, its iOS platform was "special" to Apple, and because Android products - which are cheaper - are not equivalent to an iPhone.</p><p>And yet when the currency headwinds blow against Apple, here we have the CEO talking about prices.</p><p>This sets up Apple for one of its most interesting years ever. iPhone is already in decline this quarter, just as Samsung may have gotten its act back together after a two-year period in which Apple dominated.</p><p>It's going to make the autumn launch of iPhone 7 one of the most economically significant events in Apple's history.</p><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://www.businessinsider.com/intelligence/25-big-tech-predictions-for-2016?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen_2016-predictions&amp;utm_content=iphone_ctgr_leadgen_2016-predictions&amp;utm_campaign=iphone_ctgr_leadgen_2016-predictions"><img src="http://static-bii.businessinsider.com/image/5693ca34771aea1a1fc67bb6/bigtechcover-2.png" style="margin-right:15px;width:75px;float:left !important;" /></a><strong> EXCLUSIVE FREE REPORT:</strong><br />25 Big Tech Predictions by BI Intelligence. <strong><a href="http://www.businessinsider.com/intelligence/25-big-tech-predictions-for-2016?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen_2016-predictions&amp;utm_content=iphone_ctgr_leadgen_2016-predictions&amp;utm_campaign=iphone_ctgr_leadgen_2016-predictions">Get the Report Now »</a></strong></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/rug-robot-snooze-proof-alarm-2016-1">This snooze-proof alarm is so genius it might make you a morning person</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="EwajA3MDE6HSI3EmcxQs0FLMGAaqZwd8" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'EwajA3MDE6HSI3EmcxQs0FLMGAaqZwd8',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Tim Cook's talk about 'Android switchers' is getting old: One of the main reasons iPhone is in decline is because Android has been surprisingly resilient

<p><div class="KonaFilter image-container display-table float_right click-to-enlarge"><div><div class="image on-image"><a title_source="Anton Balazh/Shutterstock" title_caption="A few of the places where iPhone is in decline." class="zoomin" href="https://static-ssl.businessinsider.com/image/564cec11dd0895475c8b463e-960/united-kingdom-earth-night-relief-map-anton-balazh-shutterstock_180746009.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="https://static-ssl.businessinsider.com/image/564cec11dd0895475c8b463e-5000-5000/united-kingdom-earth-night-relief-map-anton-balazh-shutterstock_180746009.jpg" alt="united kingdom earth night relief map anton balazh shutterstock_180746009" data-mce-source="Anton Balazh/Shutterstock" data-link="http://www.shutterstock.com/g/antartis" /></a><p class="source"><span><a href="http://www.shutterstock.com/g/antartis">Anton Balazh/Shutterstock</a></span></p><p class="caption">A few of the places where iPhone is in decline.</p></div><p></p></div></div>One of the most surprising things Apple CEO Tim Cook said last night on the company's earnings call was about prices.</p><p>He basically admitted that one of the reasons <a href="http://uk.businessinsider.com/apple-ios-v-android-market-share-2016-1">iPhone sales are in decline</a> is Apple's policy of trying to charge the highest prices it can in order to protect its record-breaking profits.</p><p>This is the heart of the problem for Apple this year: Cook is trying to raise prices while admitting that consumers - indeed entire countries - are <a href="http://uk.businessinsider.com/tim-cook-global-economic-commentary-2016-1">suffering from "extreme conditions" in their economies</a>. He called out China, Brazil, Russia, Japan, Canada, Southeast Asia, Australia, Turkey and the eurozone as having been hurt by slowing economic growth that suppressed sales.</p><p><a href="http://www.theverge.com/2016/1/26/10828134/apple-earnings-report-first-quarter-q1-2016-record-profit">Apple announced the greatest profits ever</a> - ever! - earned by a single company last night: $18.4 billion.</p><p>That profit was created by increasing the average selling price of iPhones to $691 from $687. So Apple is raising prices on its phones while at the same time saying its customers can't afford its phones.</p><p>It did so while the US dollar got stronger, in a global economy where other currencies are trying to stay as cheap as possible. The result, according to Apple's "currency index" chart, is that $100 spent with Apple in 2014 is now the equivalent of only $85 today:</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/56a8ce3cdd0895e1018b46d4-1006-692/screen shot 2016-01-26 at 4.44.30 pm.png" alt="Apple" data-mce-source="Apple" /><p class="source"><span>Apple</span></p></div><p></p></div></div></p><p>Apple CFO <a href="http://uk.businessinsider.com/apple-ios-v-android-market-share-2016-1">Luca Maestri said earlier on the call</a> that higher prices - which are "<span>protecting our margins" -</span> may have dampened demand for Apple products:</p><p style="padding-left: 30px;">One of the things that we've done to respond to the foreign exchange situation has been to increase the price of some of our products in certain international markets. That has had the effect of protecting our margins, which you've seen have been very strong, both in the December quarter and in the guidance that we provide for the March quarter. But inevitably over time, higher prices affect demand and so we're capturing that in our guidance. So, I would say these are the major reasons and the drivers for the guidance on revenue.</p><p>The guidance Maestri was referring to was Apple's expected 11% decline in revenues for next quarter. Cook then elaborated:</p><p style="padding-left: 30px;">I think you can tell from the numbers that Luca is talking about just on the currency side and that's before thinking through the effect that price increases can sometimes have on the business over a period of time, it's clear that the economic piece is large.</p><p>"The effect" is that Android -generally cheaper than iPhone - is winning some of its contests against the iPhone. <a href="http://uk.businessinsider.com/apple-ios-v-android-market-share-2016-1">Kantar Worldwide published some new data on iOS vs Android today</a>. Android gained share everywhere except China in the last quarter. According to Carolina Milanesi, chief of research at Kantar Worldpanel ComTech, new consumers are becoming less likely to buy an iPhone: "Customer acquisition from Android has gone from 13% in 4Q14 to 11% in 4Q15, and the contribution that first-time smartphone buyers make to Apple overall sales numbers went from 20% to 11% over that same period."</p><p>For the longest time, the mantra was that Apple did not compete on price, because its products were superior, its iOS platform was "special" to Apple, and because Android products - which are cheaper - are not equivalent to an iPhone.</p><p>And yet when the currency headwinds blow against Apple, and consumers get poorer, here we have the CEO talking about price competition. This is the most extraordinary issue to come out of last night's call: Apple's two most important financial executives admitting that as long as Apple keeps its prices high, to protect its profits, consumers may not be able to buy them, and that Apple is vulnerable to price competition.</p><p class="tagline"><div id="categorypromo" style="border:1px solid silver; min-height:90px; padding:10px;vertical-align:top;"><a href="http://www.businessinsider.com/intelligence/25-big-tech-predictions-for-2016?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen_2016-predictions&amp;utm_content=iphone_ctgr_leadgen_2016-predictions&amp;utm_campaign=iphone_ctgr_leadgen_2016-predictions"><img src="http://static-bii.businessinsider.com/image/5693ca34771aea1a1fc67bb6/bigtechcover-2.png" style="margin-right:15px;width:75px;float:left !important;" /></a><strong> EXCLUSIVE FREE REPORT:</strong><br />25 Big Tech Predictions by BI Intelligence. <strong><a href="http://www.businessinsider.com/intelligence/25-big-tech-predictions-for-2016?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen_2016-predictions&amp;utm_content=iphone_ctgr_leadgen_2016-predictions&amp;utm_campaign=iphone_ctgr_leadgen_2016-predictions">Get the Report Now »</a></strong></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/huawei-mate-8-phone-battery-life-ces-2016-1">This new phone crushes the iPhone in one key area</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="JwZWUxMDE6_HS-ONmfMPC8kiMDaJ5Rvf" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'JwZWUxMDE6_HS-ONmfMPC8kiMDaJ5Rvf',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Tim Cook basically admitted that the price of iPhones may be too high for a world that's getting poorer

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image"><img src="https://static-ssl.businessinsider.com/image/53da8eb6eab8ea4a7bc0cc6b-1200-1715/474661515 (1).jpg" border="0" alt="LinkedIn" /><p class="source"><span>Getty / Justin Sullivan</span></p></div><p></p></div></div>1. <strong><a href="http://adage.com/article/digital/linkedin-s-ad-business-rises-company-reports-growth/294427/">LinkedIn reported strong second quarter earnings and signs of a growing ad business.</a> </strong>The company reported that its "Marketing Solutions" revenue hit $106 million, a 44% increase from last year. </p>
<p>2. <strong><a href="http://digiday.com/publishers/publishers-updated-mobile-app-strategy-curation-creation/">Publishers are changing the way they plan their mobile app strategies according to Digiday.</a> </strong>BuzzFeed, for example, announced it will create a new mobile app featuring only news content. It will also include posts curated from other top news sites. <strong><br /></strong></p>
<p>3. <strong><a href="http://blogs.wsj.com/cmo/2014/07/31/most-major-us-publishers-now-sell-ads-programmatically/">The Wall Street Journal reports that most online publishers, 98.3%, now use some sort of programmatic strategy to sell ad space.</a></strong></p>
<p><span style="line-height: 1.5em;">4. </span><strong style="line-height: 1.5em;"><a href="http://www.adexchanger.com/publishers/upworthy-sees-early-success-with-its-socially-conscious-native-content/">Upworthy says native content running on its site is doing better than editorial content.</a> </strong>Content from sponsors got 3.5 times more views and three times as many shares on social media according to Ad Exchanger.  </p>
<p>5. <strong><a href="http://www.thedrum.com/news/2014/08/01/infographic-36-video-ads-are-not-viewable-worldwide-and-it-takes-just-6-seconds">Ebuzzing found that nearly one third of video ads, 36%, cannot be viewed worldwide.</a> </strong>The CEO of Ebuzzing says half of ads bought from publishers are not viewable and 60% of ads bought programmatically are not viewable, meaning that at least half of the video player is visible to the viewer for more than two seconds. </p>
<p>6. <a href="http://www.mediapost.com/publications/article/231182/kantar-media-launches-srds-programmatic-offering.html"><strong>Kantar Media, part of WPP, launched a programmatic planning and buying feature.</strong></a></p>
<p>7. <strong><a href="http://www.adexchanger.com/investment/expedia-flies-after-q2-pushed-by-ad-driven-tailwinds/">Expedia's ad revenue grew 54% this quarter, up to $123 million.</a> </strong> </p>
<p>8. <strong><a href="http://www.mediapost.com/publications/article/231199/rockyou-raises-10m-will-invest-in-programmatic-v.html?edition=74929">RockYou, an in-game ad provider, raised $10 million from FastPay.</a><a href="http://www.adexchanger.com/investment/rockyou-raises-new-funding-to-the-tune-of-10-million/"></a></strong><span> The company plans to use the funds to buy mobile and online games to add to its ad inventory.</span><a href="http://blogs.wsj.com/cmo/2014/07/31/most-major-us-publishers-now-sell-ads-programmatically/"><strong><br /></strong></a></p>
<p>9. <a href="http://www.thedrum.com/news/2014/08/01/fx-networks-hands-media-account-zenith-optimedia"><strong>Zenith Optimedia will now handle media accounts for FX Networks including FX, FXX, FXM, and FXNOW, according to The Drum.</strong></a></p>
<p>10.<strong> <a href="http://mashable.com/2014/07/31/google-ratings-shopping/">Google will add a new customer reviews feature to searches.</a> </strong>Mashable reports Google will now run these reviews when a user searches for something deemed to be a product, like toaster or vacuum. </p>

10 Things In Advertising You Need To Know Today

<p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5440c946eab8ea0b53195061-1054-790/youtube-zoella-star-1.png" alt="youtube zoella star" data-mce-source="YouTube" data-mce-caption="YouTube Creator Zoella" data-link="https://www.youtube.com/watch?v=6yQ4i9Xzj-I" /><p class="source"><span><a href="https://www.youtube.com/watch?v=6yQ4i9Xzj-I">YouTube</a></span></p><p class="caption">YouTube star Zoella.</p></div><p></p></div></div>Google is once again directly targeting TV <keyword id="35666" type="COMPANY" weightage="100" keywordseo="advertising">advertising</keyword> budgets by saying YouTube ads generate a better return on investment than TV commercials most of the time.</p><p>The company conducted a meta-analysis of 56 case studies from brands within six different types of industries, across eight countries in Europe between 2013 and 2016, as well as its own research. </p><p>Google concluded, in the study published Wednesday to coincide with Advertising Week London, that at current spend levels, "YouTube delivers a higher return on investment than TV in 77% of studies."</p><p>The studies were carried out by research companies including Kantar Worldpanel, GfK, Data2Decisions, and BrandScience. Google says it compared three different methodologies to come to its findings.</p><p>In 17 of the case studies looked at during the study (so not the majority) Google said: "In more than 80% of media mix optimizations we studied, data showed that the recommended spend on YouTube should be at least double that of current levels."</p><h2>Google says this isn't a war between YouTube and TV - its just trying to help marketers know how much to spend there</h2><p>The release of this study isn't the first time YouTube has publicly appealed for marketers' TV budgets - <a href="http://www.businessinsider.com/why-online-media-companies-are-moving-into-tv-2016-4">which is where they place the bulk of their advertising spend</a>. EMarketer <a href="http://www.emarketer.com/Article/What-Do-Marketers-Think-of-YouTube-Data-Analytics/1012903">predicted</a> last year YouTube's net ad revenues worldwide would reach $4.28 billion in 2015. In the same year, it <a href="http://www.emarketer.com/Article/Digital-Ad-Spending-Surpass-TV-Next-Year/1013671">estimated</a> global TV spend would reach $68.88 billion.</p><p>Last October, Google told advertisers that if they want to reach young audiences, <a href="http://www.businessinsider.com/at-brandcast-google-tells-advertisers-to-shift-tv-money-to-video-youtube-2015-10">they should be shifting 24% of their TV budgets over to YouTube</a>.</p><p>We asked Google's EMEA director of brand solutions Debbie Weinstein why TV is so often the focus of YouTube's appeals to advertisers, rather than other media that is less effective. It feels like there's a war going on, we said.</p><p>She responded that it's more about giving marketers guidance about the best way to allocate a percentage of their budget to YouTube as part of their overall media mix.</p><p>Weinstein said:</p><p style="padding-left: 30px;">"I don't think it's a war I do think it's about answering customers' questions which is how should I be spending my media dollars with all the advancements that have been happening in the media space. I think it's particularly been moving on video because everyone has known for decades that video is the most powerful form of storytelling and so we have video and you can sort of take your video asset and run it in a variety of places. I think that's why the comparisons are often made between YouTube versus the other places you can be placing your video assets."</p><p>YouTube's study is at odds with previous research that suggests TV is the advertising medium that provides the best return on investment. </p><p>Meta-analysis conducted by researchers at Ebiquity and commissioned by UK TV marketing body Thinkbox in 2014 found that for every £1 spent on advertising, TV is "the best profit generator."</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5712196e91058428008bd278-849-479/screen shot 2016-04-16 at 11.28.45 am.png" alt="Thinkbox" data-mce-source="Ebiquity/Thinkbox" /><p class="source"><span>Ebiquity/Thinkbox</span></p></div><p></p></div></div></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/why-you-have-to-lift-airplane-window-shades-2016-4">Here's why airlines ask you to raise the window shades for takeoffs and landings</a></h3>        <div>            <div>    <script src="http://player.ooyala.com/v3/6e12e8b3387a44daacfb73afba25a76e"></script>    <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="N5N3VsMjE6pesk0sA-a83WVtGZAI0fEa" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>    <script>    if (typeof RunFunctions === 'undefined') { var RunFunctions = []; }     RunFunctions.push(function()    {         var ooyalapopvideo = OO.Player.create('ooyalaplayer_popvideo', 'N5N3VsMjE6pesk0sA-a83WVtGZAI0fEa',{ autoplay: 'false' });     });    </script>    <noscript><div>Please enable Javascript to watch this video</div></noscript></div>        </div>        <script>(function() { function createPlayer() { OO.ready(function() { RunFunctions.forEach(function(ooyalaFunction) { ooyalaFunction(); }); RunFunctions = [];}); } createPlayer(); }()); </script>    </div>

Google attacks TV, saying YouTube ads generate a better return on investment most of the time

<p><div class="KonaFilter image-container float_right click-to-enlarge"><div class="image"><a title_source="AP" title_caption="Apple CEO Tim Cook showing off the iPad, savior of the magazine industry." class="zoomin" href="http://static5.businessinsider.com/image/52c2eab6ecad04eb5f613ad5-960/tim-cook-ipad-13.jpg"><span class="sprites click-to-enlarge-icon" title="Click to enlarge"></span><img src="http://static5.businessinsider.com/image/52c2eab6ecad04eb5f613ad5-1200-924/tim-cook-ipad-13.jpg?maxX=480" border="0" alt="Tim Cook iPad" width="480" /></a><p class="source"><span>AP</span></p><p class="caption">Apple CEO Tim Cook showing off the iPad, savior of the magazine industry.</p></div><p></p></div>The magazine industry entered 2013 on a sour note, reeling from the final print editions of newsstand mainstays <em><a href="http://www.businessinsider.com/the-best-spin-covers-of-all-time-2013-1">Spin</a> </em>and <em><a href="http://www.businessinsider.com/newsweeks-last-ever-print-edition-cover-2012-12">Newsweek</a></em>, and <a href="http://www.businessinsider.com/time-inc-layoffs-2013-1">bracing for layoffs</a> in newsrooms across the country.</p>
<p>After a slight uptick in 2010 and 2011, magazine ad revenues <a href="http://www.businessinsider.com/google-is-bigger-than-all-magazines-and-newspapers-combined-2013-11">fell once again in 2012</a>, continuing a general decline that began in 2007.</p>
<p>But as 2013 comes to a close, the glossies have something to cheer about - and the good news comes in the form of the industry's highly coveted tablet ad sales.</p>
<p>According to <a href="http://www.magazine.org/industry-news/press-releases/mpa-press-releases/mpa/2013-pivotal-year-magazine-media-advertising-6">a new report from MPA-The Association of Magazine Media</a>, U.S. magazines sold 16% more iPad ad units this year than they did a year ago. Print ad pages were essentially flat from the year before.</p>
<p>Using data from Kantar Media, the industry trade group found that the 69 magazines it analyzed sold a total of 6% more ad space across both their tablet and print editions in 2013 than they did in 2012. So tablet ad sales are driving magazine growth, not print, basically.</p>
<p>MPA-The Association of Magazine Media president and CEO Mary G. Berner cheered the news with a defiant statement castigating the media's "lemming-like" coverage of the magazine industry's demise.</p>
<p>"I put lumps of coal in the stockings of all the nay-sayers who lost their faith in magazine media," Berner said. "These numbers prove, once again, that this business is about powerful, relevant and enduring brands. Despite erroneous, lemming-like coverage of declines, magazine media, has not, in fact, ever had an audience problem, and it is gratifying to see that advertisers are increasingly realizing that."</p>
<p>In truth, the industry still has a ways to go. The Pew Research Center <a href="http://stateofthemedia.org/2013/news-magazines-embracing-their-digital-future/">reported earlier this year</a> that digital platforms made up just 6.6% of total magazine revenues in 2012. Pew expects this portion to rise to 14.5% in 2016, but it's unclear whether that will be enough to make up the print revenues the industry has lost over the years.</p>
<p>On the bright side for magazine publishers, the market for tablets is predicted to continuing growing in 2014, <a href="http://www.gartner.com/newsroom/id/2610015">with IT research firm Gartner estimating</a> that worldwide tablet shipments will jump 42.7% in the coming year.</p>

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