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archived news from MarketingViews

2002, December

See also:- article:- Writing an Electronic Communications Policy
article:- What's a Good Click Rate for a Banner Ad?
Press Release FAQ's, High-Tech Marketing Agencies

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today's news etc from MarketingViews
Moreover.com - Marketing News - daily headlines from 1,500 sources
eMarketer.com - news & reports about online business
Digitrends.net - news, articles & directories for interactive marketers
EcommerceTimes.com - articles & high tech & CRM news
Nua Internet Surveys - internet & ecommerce news
SiliconValley.com - San Hose Mercury News
dmnews.com - news about direct marketing
STORAGEsearch - news
Sun SPARC - news

Editor:- December 23, 2002 - I'd like to wish all our readers a Happy Holiday and a Prosperous New Year.

EMC, IBM, and Hewlett-Packard Ranked 1, 2, and 3 in Brand Awareness and Preference in Storage Solutions Market, Says New ITSMA Study

LEXINGTON, Massachusetts - December 17, 2002 - Buyers of large-scale IT storage solutions think first of EMC, IBM, and Hewlett-Packard, according to ITSMA, a global advisor to companies that market and sell technology services. ITSMA's study of market positioning and brand knowledge in the fiercely competitive storage market showed that EMC is clearly top-of-mind for buyers interested in purchasing storage solutions. More than one-third of storage decision makers mentioned EMC without prompting, and more than one-quarter said EMC is the firm they would most likely call for storage services and solutions. IBM and Hewlett-Packard were the only other firms mentioned by more than 10% of decision makers in ITSMA's survey of 300 IT executives from large enterprises and government agencies.

"Brand recognition is a critical advantage in today's storage solutions market," according to Lori Weiner, Senior Director of Research at ITSMA and author of Storage Solutions: 2002 Market Positioning and Brand Awareness Study. "Buyers are skeptical of new technologies and extremely conservative in investing in new solutions, yet performance requirements for storage systems continue to increase. The answer is often to consider offers only from the most prominent and credible players."

In addition to the overall brand leaders, buyers gave high marks to a number of other firms for strength in specific categories. Buyers relying exclusively on network-attached storage rate Network Appliance and Dell highest. Brocade Communications received the highest overall favorability rating of any company rated in the study. Hitachi Data Systems showed strength in categories such as storage consulting and SAN solutions. CNT and Veritas received high marks for expertise in business continuity and disaster recovery.

Another finding of the study was that buyers show a modest but clear preference for bringing together best-of-breed specialists over relying on single firms that can provide one-stop-shopping for all their storage products and services. ...ITSMA profile

Editor's comments:- although the top 3 companies mentioned in this report have consistently appeared in our top 10 lists measured by storage revenue, only one of the three actually appears in our recently published list of the top 5 storage companies in 2002 measured by hundreds of thousands of reader pageviews. That's another way of measuring "brand strength". As a dotcom publisher since 1996 I've found this method gives useful predictions and insights into who's going up, and who's going down in future market share.

To be effective, advertising must be simple above all else

December 16, 2002 - an article today in the Memphis Business Journal by Mike Ogden, president of Pipeline Marketing discusses the power and utility of simplicity in advertising. There are some interesting examples in this article. From time to time I get ads from our own customers which are either too complicated:- try to pack too many ideas into the limited time and space of an animated banner ad for example. Or I get ads which are just incomprehensible:- because the words don't mean anything unless you already know all about the company - which may be true for the creator of the ad, but not for most readers on the receiving end. There are also some interesting ideas too on Mike Ogden's own website. ...the article "advertising must be simple", ...Pipeline Marketing

Top 10 Storage Software Companies 2002/3

December 12, 2002 - STORAGEsearch.com today published the new edition of the "Top 10 Storage Software Companies" list and reference article. There are four new companies on the list, which is ranked by reader pageviews during the last 6 months.

"This is the definitive list of which storage software companies our 0.5 million readers are most interested in" said Zsolt Kerekes, editor of STORAGEsearch. "After our venture capital readers have digested this article, I expect a number of companies not mentioned in this list, to be put on the block for sale. The hardening of the top slots in two successive years shows that many well funded storage startups are not going to break through the glass ceiling and that the market is maturing at the same time as adapting to important new technology trends." ...Squeak! - the Top 10 Storage Software Companies

The Official Launch of the MajorNewsWire.com Website

West Hollywood, CA - December 10, 2002 – Today was the official launch of the MajorNewsWire.com website. Major Newswire is a press release distribution service delivering news through the primary news channels of the world including wire, satellite networks, Internet and fax. Our services offer the highest levels of targeted distribution available to the world's largest wire services such as AP, CBS, Bloomberg, CNN, MSN Money, Nasdaq, NYSE, Yahoo and Reuters.

Our custom programs will help you:
  • Increase coverage
  • Save money
  • Expand distribution channels
Most of our clients save an average of $1,200 monthly when they switch to our service. Major Newswire features over 150,000 media contacts in over 1,000 unique industries, press release tracking, news and investment relations management, rapid press release deployment and sliding scale discounts. ...MajorNewsWire.com

Editor's comments:- internet based news wires made a mint during the dotcom boom as newly launched companies poured money into talking up their share prices with daily trivia. If the stock market starts to recover we may see more newswires coming into the market.

Email Spam Fear will Cause Marketing Meltdown

London, UK – December 6, 2002 – UK companies that strip e-mail addresses from their Web sites over fears spammers will harvest the contacts, could be heading for a marketing meltdown. That's the warning from Rainier PR, an agency that has analysed the number of e-mail details for press, analysts and investors removed from the Web in recent months

"Taking down your e-mail details because of concerns over spam is like leaving your shop shut because you fear a burglary. In marketing terms, companies that do so are facing a communication catastrophe," said Stephen Waddington, managing director, Rainier PR. "Companies need to wise up and take preventative measures, not bury their heads in the sand. Ultimately this issue requires Government action, but in the interim, companies should adopt intelligent software filters that stop spam from getting through," he said.

Software management tools can reject spam from an e-mail server or from an in-box. Increasingly though, users are opting to remove e-mail addresses from Web sites altogether because it is the most straightforward approach. A survey by Rainier PR of 100 corporate Web sites during November, and the six previous months, found that 9% had removed e-mail contact details from their Web sites during that time.

Rainier PR handles an average of 135 reactive media enquiries a week on behalf of its 22 clients. 42% of these enquiries are directed via the agency's Web site or clients' Web sites, with the balance by phone or face-to-face. The use of a Web contact form, rather than publishing an e-mail address is another way to counter spam. 12% of FTSE 100 companies take this approach on their Web sites for journalist contact, whilst 20% take this approach for investors.
  1. Don't post your e-mail addresses in public on a Web site or in a newsgroup. Most spammers compile lists by using automatic applications that harvest addresses from the Internet
  2. If you must post your e-mail address in public alter it, if possible before posting such as firstname_surnameATrainierpr.co.uk or firstname_SENDNOSPAM_surname@rainierpr.co.uk. Most people will know to remove any annotation whereas computer harvesting software will not
  3. Use e-mail aliases on Web sites for press, investor and customer communication such as press@rainierpr.co.uk and investor@rainierpr.co.uk, and change them as soon as you start to receive spam
  4. Use an alternative e-mail address for non-business communication
  5. Never respond to spam, even to unsubscribe. Spammers use returns to confirm that an e-mail address is in use
  6. Review all user agreements before signing up for Web based services. You may discover that you are signing away the right for your e-mail address to be circulated onwards
  7. Consider using contact forms, preferably in Java script, as an alternative to publishing e-mail addresses on your Web site
  8. Avoid posting information on how to generate your employees e-mail addresses such as firstname_surname@rainierpr.co.uk
  9. Introduce unstandardised personal e-mail addresses at your company, intial_surname@rainierpr.co.uk and first_name_surname@rainierpr.co.uk and surname_intial@rainierpr.co.uk
  10. When registering your web site, provide general e-mail addresses for domain administration, technical and billing contacts
...Rainier PR

DoubleClick's Third Quarter Ad Serving Trend Report Reveals Continued Sophistication Among Marketers Using Online Advertising

New York - December 5, 2002 - DoubleClick Inc., the leading provider of marketing tools for advertisers, direct marketers and web publishers, today announced results of its third-quarter Ad Serving Trend Report, based on more than 144 billion ads from thousands of clients. The data reveals that online advertising continues to prove its effectiveness for marketers.

The data reveals that more than 73% of all campaigns incorporated some form of targeting criteria in the third quarter. The fact that only one quarter of all ads served are run-of-network attests to a continued sophistication in the online planning process. Furthermore, keyword and key value remain the most common type of targeting used by advertisers with 82% of targeted ads. This includes both keywords on search engines served by DoubleClick and content targeting on specific sites. Marketers have used geographic targeting in 12% of all targeted ads, and targeting by time of day is now 3% of all targeted ads served.

The data reveals that the use of IAB standard sizes has held steady at nearly 70% of all ads served, which makes online advertising much easier to implement across a range of sites. Specifically, skyscrapers now account for more than 7% of total volume, a 67% increase from the first quarter. The standard 468x60 pixel banner is still the most popular, accounting for nearly 50% of all ads served.

As a result of better planning and more dynamic creative, average click-through rates remained constant at around 0.7% indicating an increasing maturation of the industry. In addition, view-through rates - which assess users who convert within 30 days of seeing an ad, but do not click on a banner - have risen from .36% in the first quarter to .51% in the third quarter. This translates to five consumers per thousand who respond to an ad that they do not click on. As a result, marketers who use click-throughs as the only response metric are missing these conversions. ...DoubleClick

Online Advertising Projected to Rebound in 2003

New York, NY - December 3, 2002 - According to eMarketer's just- released Interactive Marketing: Stats, Strategies and Trends report, after two straight years of decreasing sales, US online advertising will begin recovering next year, slowly. According to eMarketer projections, 2003 spending will rise slightly to $6.70 billion, up from $6.38 billion this year. The expected bounce-back is due to a combination of factors, including traditional marketers devoting larger slices of their ad budgets to online advertising as well as a general easing of the economic recession. By 2005, online ad expenditures will hit $8.10 billion-still less, however, than 2000's spending of $8.23 billion.

"The last two years were a disaster for online advertising," says David Hallerman, Senior Analyst at eMarketer. "The fact that 2003 is going to be a growth year, even a small one, is good news." ...eMarketer.com

ACSL Commemorates 11 Years of Publishing

December 2, 2002 - this month ACSL, publisher of MarketingViews , commemorates 11 years of IT directory publishing.. ACSL's first publication was called the "SBus Product Directory" and was aimed at buyers in the Sun Microsystems market. By the time it switched to the web in 1996, the paper edition weighed several pounds and ACSL changed its name to the "SPARC Product Directory" to reflect the fact that other busses, including PCI were also being used in SPARC systems.

Although the Sun market has shrunk from its revenue peak at the height of the dotcom boom, the installed base has continued to grow and the readership of the SPARC Product Directory has also grown as other publishers have dropped out of the market. It's now the longest surviving Sun focused publication.

ACSL's flagship publication today, is STORAGEsearch.com, the mouse site, which was first launched in the summer of 1998. Within two years it had overtaken the SPARC Directory readership, and today has a readership which is more than twice as large (significantly above 0.5 million readers).

Kerekes concludes "...We've proven that a company which is 100% web based can be profitable and survive even in the toughest market conditions." ...ACSL profile, ...SPARC Product Directory, ...STORAGEsearch

Editor's PS:
- ACSL originally launched this site, MarketingViews, in 1996, as an ezine and web site to help its customers make better use of snail mailing lists in the Sun market. However, as our own business shifted entirely to the web we stopped selling mailing lists and traditional offline marketing became increasingly irrelevant to us and our marketing readers. So we suspended MarketingViews in 1997. Another factor was there weren't any real experts in web marketing in those days, and the real experts were too busy trying to make money on the web to write any articles about it.

For a couple of years I wrote the occasional article about web marketing and co-edited a small marketing web site for my wife's marketing training business. Then in 2001, I decided to resurrect the MarketingViews publication with a different concept. The site would mainly contain reference info about PR and web advertising which might be useful to ACSL's customers, and would also include any other content about marketing that I found interesting. The new business plan was that "there wasn't going to be a business plan." As long as our computer publications were making enough money and I and some customers found MarketingViews interesting and useful, then that was enough justification. In fact MarketingViews does have a small readership approaching 20,000 readers, but we still have no plans to sell advertising.

today's news etc from MarketingViews
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Other news on this page

EMC, IBM, and Hewlett-Packard Ranked 1, 2, and 3 in Brand Awareness and Preference in Storage Solutions Market, Says New ITSMA Study

To be effective, advertising must be simple above all else

Top 10 Storage Software Companies 2002/3

The Official Launch of the MajorNewsWire.com Website

Email Spam Fear will Cause Marketing Meltdown

DoubleClick's Third Quarter Ad Serving Trend Report Reveals Continued Sophistication Among Marketers Using Online Advertising

Online Advertising Projected to Rebound in 2003

ACSL Commemorates 11 Years of Publishing

earlier news (archive)

Advertising info and pricing
Advertising
on STORAGEsearch
When Cheaperbyte's sales manager said he had to accelerate sales in 2003, he knew just the right way to do it.
Nibble: Is the External Disk Market Heading for a Crash?

T
wo recent market research reports got me questioning the validity of my own assumptions about the long term prospects for the that part of the storage industry which supplies disk based storage such as RAID, NAS, SAN etc. And I'm starting to feel a cold chill which has nothing to do with the seasonal weather.

First it was the December 6 news from IDC saying that worldwide disk storage systems factory revenue in the third quarter of 2002 was down 3% compared with the second quarter. "The failure to gain revenue momentum in Q3 is yet another indication that a rebound in the disk storage systems market is not imminent," said Charlotte Rancourt, research director of IDC's Disk Storage Systems program. "The third quarter is consistent with an emerging trend whereby growth in gigabyte per unit does not offset the unrelenting decline in dollar per gigabyte."

Then there was the December 10 report from Peripheral Research Corp saying that the demand for critical components for rigid disk drives hit a five-year low in 2002. "The industry has been on a 60-100% per year increase in areal densities, which by nature reduces the number of Magnetic Heads and Disks in each drive... The demand for Rigid Disk Drives has flattened out to about 195 million units per year for the past three years." This report went onto say that growth in demand for disk drives in consumer products would eventually lead to growth in overall disk shipments, but that doesn't affect the computer market which we're discussing here.

Let's recap on the two main reasons that so many computer companies flocked into the storage market in 2000 and 2001 during the recession in the PC and server market.

The first, was a widely held belief supported by direct experience, and codified in a widely publicised EMC sponsored research study saying that the demand for storage capacity would double every year. The second factor was the growth and profitability of EMC back in 2000. Both factors, taken together suggested to many oems, that here was a market which was ripe and growing, and in which there plenty of opportunity for efficient low cost producers to make higher profits than in the PC market by undercutting the fat dumb and happy market leaders. News travels fast in this wired world. So hundreds of companies had exactly the same idea.

But what if these assumptions are wrong? Or don't give the whole picture? What if an annual doubling in demand for disk storage doesn't actually lead to any increase in storage revenue? And what if an overcrowded market of EMC wannabes leads to the same fierce competition and pricing models seen in the PC market? That's good for users but spells ruin for many storage oems.

In the semiconductor world Moore's Law has reliably predicted the shrinking geometry of chip and the growing density of memory for 3 decades. There isn't an equivalent in the disk storage world. But looking back at the last 10 years, disk drive capacity has increased by a factor of 1,000, which means that on average it's doubled every year. So even if demand for storage is doubling, there's no compelling reason for the market to increase in value. In fact, if you take into account the new wave of intelligent archiving software from companies like Princeton Softech there are optimistic grounds for believing that users will be able to keep a lid on runaway storage growth by using more compression and faster intelligent archiving based on data usage patterns.

If disk storage technology keeps improving, users could end up paying less for their storage networks in the long term, instead of more. Now there's an interesting thing to think about as we ponder what the new year may bring.

See also:- ...EMC profile, ...IDC profile, Market research, ...Peripheral Research profile

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Marketing Views STORAGEsearch SPARC Product Directory ACSL - the publisher