Dear Automotive Clients: I found this article on Reuters today, Many interesting points--wanted to share with you!--Don

Honda set for record car sales, sees more growth
Tue Dec 19, 2006 4:39 AM ET
By Chang-Ran Kim, Asia auto correspondent (Reuters)

TOKYO (Reuters) - Japan's Honda Motor Co. <7267.t> said on Tuesday it was heading for a 5 percent rise in global car sales to a record 3.55 million units this year and predicted continued growth in most regions for 2007.

Japan's no.3 auto maker, known for building fuel-efficient vehicles and power products, is enjoying runaway demand for the remodeled Civic sedan and CR-V crossover, keeping supply chronically short of orders, particularly in North America.

To alleviate the bottleneck, Honda will begin production of the CR-V at its plant in Mexico from the fall of 2007, Chief Executive Officer Takeo Fukui told a year-end news conference, adding the auto maker would also double annual capacity at its Brazilian car plant to 100,000 units by mid-2007.

The Tokyo-based car maker has already announced a slew of new factories and expansions over the past year, including plans for a car plant in Indiana to start operations in late 2008.

In the United States, its single-biggest market, Honda aims to increase sales by 3 percent to 1.56 million units in 2007, extending its record run to 11 straight years. Part of that will be fueled by an all-new Accord, which Honda said would hit North American showrooms next fall.

"Most customers around the world want value-for-money products, and in that sense we expect to sharpen our competitive edge and boost sales," Fukui said, playing down increasing competition from lower-cost South Korean and other brands.

Honda, the world's top motorcycle maker, also estimated its motorcycle sales to rise 3 percent to a record 12.7 million units this year, and power products to surge 15 percent to 6.4 million units.

Honda did not provide a global sales forecast for 2007, but said it expected its European car sales to jump 13 percent to 350,000 units, and sales in the Asia-Pacific region excluding Japan and China to also rise 13 percent, to 360,000 units.

In China, which most global car makers consider a strategically crucial market, Honda estimated its sales grew 23 percent this year to 320,000 units, short of the 350,000-unit target due to a delay in the sales network expansion at its smaller local joint venture, Dongfeng Honda.

For 2007, Executive Vice President Satoshi Aoki said Honda would aim for sales of around 400,000 units in China, outpacing his forecast for overall market growth of 10-15 percent.

To become more competitive, Honda said its main China joint venture, Ghuangzhou Honda, is looking at establishing a local automobile research and development center.

JAPAN MARKET TOUGH
Japanese auto makers are counting on sales expansion overseas to make up for tepid demand at home, where low-tax 660cc minivehicles are stealing all the growth.

Despite integrating its three sales channels into a single network this March, Honda estimated its domestic sales would fall 2 percent to 700,000 units this year, betraying the company's expectations for a rise.

Honda said it would aim to reverse that trend by launching a new seven-seater vehicle next spring, while developing more competitive minivehicles through its beefed-up collaboration with auto parts and minivehicle maker Yachiyo Industry Co. <7298.q>. Honda on Tuesday completed its purchase of more Yachiyo shares, boosting its stake to over half from 34.5 percent.

Fukui said Honda would also consider introducing in Japan a clean-diesel engine currently under development, after promising the powertrain for the U.S. market within three years.

Honda also said it would invest 25 billion yen ($212 million) to build a new engine plant in Saitama, north of Tokyo, with an annual production capacity of 200,000 units. The factory will employ about 500 people and supply Honda's car factories both inside and outside Japan.

Further out, Honda has said it wants to boost sales to 4.5 million cars and 18 million motorcycles in 2010 globally.

Shares in Honda have gained 27 percent in the year to date, outperforming the transport sector's <.ITEQP.T> 17 percent rise.

Banc of America this month named Honda its top pick in the autos sector for 2007, ahead of Toyota Motor Corp. <7203.t>, citing its upcoming new product pipeline, volume leverage and defensive nature.

After the news on Tuesday, Honda ended down 0.9 percent at 4,320 yen, in line with the main Nikkei average <.N225>.

($1=117.92 Yen)

(Additional reporting by Edwina Gibbs)

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Again, Newspapers keep changing due to a shrinking audience. --Enjoy.. Don!

By William Spain Friday, Dec 15, 2006
Newspapers New Model Could Be PDF
Media LifeThe new model for newspapers could be a big departure from the one-size-fits-all, one edition per day, that is now standard practice. Instead, it could be a fully customized newspaper with a version for every possible need, in whatever format a reader might want. One new format is the PDF, which is emailed. While yet to catch on here, PDF editions are out in Canada, the UK and elsewhere. Publishers see real potential as the PDF is highly portable and easy to print on short notice. And at 8.5 inches x 11 inches, it fits easily into briefcases for reading during a commute. If a printout is lost, another can be done up quickly. For publishers, there's no real added cost for paper and ink and distribution, since it is delivered by email. And it offers yet another means of reaching readers and providing advertisers exposure. Read the whole story...

I found this on www.mediapost.com . Interesting Story for media folks like me... Have a great day. Don Mast...

By William Spain Friday, Dec 15, 2006
Cable Looks To Top Nets In Prime Time
MediaweekFor the fifth straight year, ad-supported cable looks to top the broadcast nets in prime time, grabbing a 55.4% household share year-to-date, way ahead of the six broadcast nets' 40.4%, according to Nielsen Media Research data crunched by Turner chief research officer Jack Wakshlag. But if cable's dominance of prime time continued in 2006, growth appears to be easing. If the 69 measured cable channels reach a projected 55.5 share by the end of this year, that represents growth of just one-tenth of 1% over 2005. But if cable's surge over the last five years--up 15.8% in the 18-49 demo as opposed to a drop of 16% for the nets--is easing back, that may be because prime time has reached saturation. Viewership in the daypart hasn't changed and is holding at an average of 7.5 hours per week per person. Read the whole story...

http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=52620

Dear Mast Report Readers, This is a growing trend in advertising and communications--using TV and Internet to reach your customers... Try It!

Media Business
December 11, 2006

Capture Customers With Triangulation
Combine TV Spots With TV Station and Company Web Sites for Added Punch

By Adam Armbruster
Special to TelevisionWeek

Looking to stretch your television advertising budget in 2007? Then consider the proven power of a mixture of several media tools. Through the linking of television media choices in this way, you will enjoy improved profits and more specific campaign measurability, plus a higher sense of satisfaction with your campaign.

It is called "triangulation" and it is the powerful concept of "linking" your television commercial message, the Web site of the television station(s) with which you are advertising and your business Web site.

When these three media are properly triangulated, your campaign can become up to 50 percent more effective. It's got the power of television, plus the trackability of direct mail. It performs like television advertising on steroids.

To understand the importance of this concept, consider the following recent statistics:
According to the National Retail Federation, half of 2006 holiday shoppers will shop online (47.1 percent) and most (88.7 percent) also say they browse online before going to stores to shop. They'll begin by using a variety of search Web sites to begin their research and to compare products, among them Google (23.6 percent), Yahoo (7.2 percent), Amazon.com (5.5 percent) and eBay (3.7 percent).

We also know that they "preview" a business's Web site before visiting across all major spending categories: furniture stores (82 percent), auto dealers (78 percent to 91 percent) and homebuilders (90 percent).

See the trend? They shop virtually every major purchase online before even considering a store visit. This poses a big problem for advertisers: How to win over a consumer who won't even come into your store.

And here's a shocker: Buying search engine keyword ads is not the answer. This will not guarantee success. In our experience, keyword searches have not been proven to make mid-size or larger businesses successful in the long term. Keyword searches are far too vulnerable to being blunted by a competitor who can, and usually will, buy the same keywords against you. Many companies spend 30-plus percent of their marketing budget buying keyword searches, when these dollars could be used more efficiently to promote their business's Web site, thereby driving more "organic" traffic to the Web site. Google works on algorithms based on the popularity of a Web site.

So clearly the goal is to make your own Web site the destination for the consumer.
We know that new customers who were brought to a company through triangulated media have been on average a higher-quality lead, and therefore a more profitable lead. This could be attributed to the fact that these new consumers sought out and found your company based on a real personal need, versus a casual click-through from a Google ad.

So if you agree that the real goal is to get more consumers directly onto your Web site before they visit your business, we must begin to build our triangle.

Here are the three easy steps:

· Write and design your TV commercial to serve as a retail-driver and a Web-driver message. To do this you need to include the key proven elements for a successful television message and then add your Web site to the end of the message as the "closer." Forget listing addresses and phone numbers, since those should be readily available on your Web site anyway. Also, make the Web address prominent; many trendy producers are placing the Web address in a smaller font and placing it in the lower left- or right-hand corner of the screen. This is a mistake, as most viewers only "see" the middle of the television screen. When done right, significant new-customer Web contacts can occur.

Case in point: Recently a homebuilder client of ours reported that it is enjoying a sales pacing that is far superior to its local weakened housing marketplace thanks to its triangulated television and Internet media plan. Notably, its Web site exploded by 338 percent in local unique visitors when its newly designed TV commercial aired, thereby driving quality traffic to its business.

· Harness the power of local television station Web sites. These highly promoted Web sites are teeming with local customers who are worth far more to you than out-of-town traffic. However, think of local station Web sites as if they were actually a local newspaper: You need to design Web ads that are similar to print ads in a newspaper and not just logo ads.

This kind of ad can send a buyer around Google and directly to your Web site, thereby creating a faster route to you without the risk of the consumer encountering competitive Web messages.

· Optimize your own Web site to receive more local organic Web traffic by including the keywords, phrases, images and terms that are most often used by consumers to search the Internet. Also, the first page of your Web site must be what we call "retail-friendly," meaning that the consumer should not have to drill down to find out the basics of your business such as product offering, locations, phone numbers and the like. If the most exciting page on your Web site is still the "About Us" section, it's clearly time for a major overhaul.

Finally, the triangulation of these media must be activated. This is the process of linking the elements electronically so that a person driven to any Web element can "click over" to the next elements.

Consumers seeing your television commercial will instantly know where to go next online. If they miss your Web site address, they can go to the TV station site and find you there. Finally, by seeing your ad on the TV station Web site, they can instantly learn more about you on your own Web site by clicking the ad.

Planning a successful retail campaign incorporating true triangulation takes a little more time, but the steps are already proven to generate additional profit by connecting the media together for the benefit of the consumer.

As my mentor, Gerry Summers, once said: "Give the consumer what she wants, and she'll beat a path to your door." And these days, the front door she'll beat a path to is really your Web site.

Adam Armbruster is a partner in the Red Bank, N.J., retail and broadcasting consulting firm Eckstein, Summers, Armbruster and Co. He can be reached at adam@esacompany.com or 941-928-7192.

Additional sources: DM News (via MarketingVox), Home Builder Magazine, Ward's Dealer Business, Furniture Today.

Dear reader, I found this article and thought it was very interest. My goal is to I find research that will assist you in making the right decisions regarding advertising and communications revenues. Enjoy.--Don.

Newspapers are finding that their Web sites, like this one for the News & Observer in North Carolina, are producing more of their ad revenue.

Troubling ’07 Forecast for the Old-Line Media but Not for the Online

By STUART ELLIOTT
Published: NEW YORK TIMES December 5, 2006

THE first Monday in October is known in legal circles as the start of the Supreme Court term. Similarly, on Madison Avenue, the first Monday in December has become familiar as the kickoff of the advertising forecast season.

And yesterday a flood of forecasts indeed flowed from analysts and agencies, all generally pointing to a challenging year ahead for the traditional media along with substantial growth for all things online.

(For those wondering why early December brings the predictions, it is because two brokerage firms, Credit Suisse and UBS, have long held their annual media conferences in the first week of the month. Other firms schedule the release of their forecasts at the same time, to ride the coattails of the competing conferences.)

Most forecasters are predicting growth in ad spending in the United States next year of 2 to 5 percent over 2006. That would represent a decline from the rate of growth in ad spending this year compared with 2005, which is expected to finish in the range of 3 to 6 percent. But it is not bad considering that 2007 will be missing two major events that help administer a hypodermic to ad budgets in even-numbered years: Olympics and national elections.

“You normally see a real drop-off in a non-Olympics, non-election year,” said Robert J. Coen, senior vice president and forecasting director at Universal McCann in New York, who opened the UBS conference.

Rather, Mr. Coen said, he believed that more marketers next year would increase ad budgets as they decide to “start turning their attention back to long-term communications” from a focus on cost-cutting.

Still, reactions to the predictions for 2007 depend upon the perch from which they are considered. Those in the traditional media like television and newspapers will no doubt frown after hearing that most forecasters expect at best flat growth in ad spending for them.
Those who sell ads on Web sites, on the other hand, are likely to be beaming at the high double-digit percentage gains being predicted for them.

“The trend that will continue to affect the media universe in 2007 is the ongoing shift in advertising dollars from traditional media into nontraditional media, most notably the Internet,” Fitch Ratings concluded in an outlook report.

Television, radio and newspapers will “experience slow growth and ongoing audience declines,” according to the report, “and ad spending continues to follow consumer patterns.”

For instance, the Newspaper Association of America is predicting that spending for ads on the Web sites of newspapers will increase a robust 22 percent next year from 2006. But ad spending in the print editions of those newspapers in 2007 will be flat, the association is forecasting, pulled down by a decline in classified advertising and no growth in demand from national advertisers.

An analyst for Credit Suisse, Debra Schwartz, questioned in a report whether even the prediction for an anemic gain of 1.2 percent was “too optimistic.”

A forecast from the Morton-Groves Newspaper Newsletter, issued last week, may be pessimistic enough for her. The publication predicted that ad spending in newspapers next year will fall 2 percent from 2006, a bigger decline than the 1.8 percent it is forecasting for this year compared with 2005.

(For ad spending on newspaper Web sites, the newsletter predicted an increase in 2007 of 23.3 percent from this year, coming after a gain of 34 percent it is forecasting for 2006.)
James Conaghan, vice president for business analysis and research at the newspaper association, offered a reason for the upbeat outlook for newspaper Web sites.

In a test recently started by Google to sell advertisements that appear in the print versions of 50 major newspapers, “the ad volume placed in the newspapers in the first three weeks has exceeded Google’s expectation for the entire three months of the test,” Mr. Conaghan said at the UBS conference.

“The advertisers and the publishers are also satisfied with the results,” he added.
Gordon Borrell, chief executive at Borrell Associates, who spoke with Mr. Conaghan, suggested that “10 years out, many newspaper Web sites could be as large as the newspapers that spawned them” in terms of ad revenue.

In another striking example of the divergence in forecasts for the traditional and new media, Mr. Coen, whose agency is part of the McCann Worldgroup unit of the Interpublic Group of Companies, predicted that ad spending on the four largest national broadcast television networks would increase just 3 percent next year from 2006.

In contrast, ad spending by national advertisers on the Internet will grow five times as fast, at 15 percent, Mr. Coen said.

Mr. Coen does not include search engine marketing in his estimates for Internet ad spending, classifying it as more promotional in nature. Another forecaster who does include it within his online totals — Steve King, worldwide chief executive at ZenithOptimedia, part of the Publicis Groupe — offered a prediction that Internet ad spending next year would grow 29 percent from 2006.

By comparison, Mr. King offered forecasts for many traditional media for percentage gains in low single digits like 1.5 percent for local radio and 2 percent for newspapers.
In fact, Mr. King said, he expected online ad revenue to grow at “seven times the rate for traditional ad growth.”

Internet ad spending as a percentage of the total for all American media will reach 7.1 percent this year, Mr. King said. He predicts that it will hit 10.4 percent in 2009.

Mr. Coen, who offers forecasts twice a year, predicted that American ad spending in 2007 would total $298.8 billion, up 4.8 percent from $285.1 billion in 2006. That is a full percentage point lower than the 5.8 percent increase he predicted last June when he gave his initial forecast for 2007.

Mr. Coen’s total for 2006 represents an increase of 5.2 percent from 2005. By contrast, last June he forecast a gain of 5.6 percent. Twice before, in June and December 2005, he predicted an increase of 5.8 percent.

Mr. Coen attributed the decline largely to “the beleaguered local sector” of ad spending, “which hasn’t done very well in traditional media,” he said, because local advertisers “continue to cut to the bone.”

Also, “consolidations are killing things” locally, Mr. Coen said, referring to combinations of local department stores, pharmacies and hardware chains, which are reducing the ranks of potential advertisers.

That was demonstrated — painfully, if you own a local newspaper — in Mr. Conaghan’s presentation. In the third quarter, when Federated Department Stores replaced a host of local retail names with the Macy’s brand, he said, the company’s ad spending in newspapers fell about 14 percent from the same period a year ago.

The declines were even more pronounced in certain Macy’s regional markets, Mr. Conaghan said, citing decreases of 34 percent in the South, 39 percent in the Midwest and 42 percent in the West.