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MySpace to Cut 30% of US Team

This week MySpace announced plans to cut 30% of its US workforce -- a total of 420 employees. "Simply put, our staffing levels were bloated and hindered our ability to be an efficient and nimble team-oriented company," stated CEO Owen Van Natta. comScore figures suggest Facebook had about half of MySpace's US audience this time last year. But by May 2009, MySpace's audience plummeted to 70 million and is now outpaced by Facebook, which has over 300 million users worldwide. (The US userbase  [...]
Posted: Wednesday, June 17th 2009

McAfee Pegs 'Lyrics,' Free Downloads, Economic Crisis Keywords Risky

Online security firm Mcafee has released a report about the most dangerous search terms online -- terms that, once sought, may lead users to unsafe malware websites. Of the 50 riskiest expressions to search across sites like Google, Yahoo, Live, AOL and Ask, "word unscrambler," "lyrics," "myspace" and "free music downloads" topped all others:   [...]
Posted: Wednesday, June 10th 2009

College Facebook Users Have Lower GPAs

College students who use Facebook spend less time studying and have lower grade-point averages (GPAs) than students who have not signed up for the popular social networking site, according to a study by researchers at Ohio State University. While the study of 219 OSU graduate and undergraduate students did not uncover a direct cause-and-effect link between Facebook use and lowe  [...]
Posted: Tuesday, June 9th 2009

Time Warner to Divorce Company Balance Sheet from Ailing AOL

Yesterday Time Warner announced it shall move forward with its anticipated spin-off of AOL as an independent entity with separate, publicly traded stocks. The company owns 95% of the former online subscription service giant. Google owns 5% (worth $1 billion three years ago). Time Warner shall repurchase Google's stake in Q3 to prepare for AOL's solo release on the stock exchange. AOL's ad revenue fel  [...]
Posted: Friday, May 29th 2009

Americans Choose ID Protection over Weight Loss

Though two-thirds of US adults are now considered overweight or obese, nearly 60% of Americans would rather reduce their risk of identity theft by 20% than lose 20 pounds, according to a survey from Ipsos Public Affairs and ID Analytics.   [...]
Posted: Wednesday, May 27th 2009

26% of Mobile Users Text While Driving

Despite an increasing number of state bans on driving while texting (DWT) and numerous reports of texting-related accidents, more than one-fourth (26%) of US mobile-phone users send and/or receive text messages behind the wheel, finds a study from Vlingo. Vlingo's second annual Consumer Mobile Messaging Habits Report reveals that drivers in  [...]
Posted: Friday, May 22nd 2009

B2B Media Revenue Falls; Online Offsets Some Print Losses

Business-to-business (B2B) media company revenue declined 2.2% in 2008 vs. 2007, but revenue growth in online, live events, and data products helped offset revenue declines for magazines, according to American Business Media's (ABM's) 2009 Media Financial Survey. The new survey, which attempts to accurately measure today  [...]
Posted: Tuesday, May 5th 2009

Bandwidth-Thirsty Developing World Poses Threat to Web's Bottom Line

Photo-sharing sites, social networks, and video distributors (e.g., Flickr, Facebook, YouTube) are booming in developing nations like Turkey, India, and Brazil - but struggling to turn a profit from online advertising alone. Internet entrepreneurs have always operated under the ideals of uniting everyone in a single online "village" by providing free services to   [...]
Posted: Tuesday, April 28th 2009

Yahoo Broadcasts Requiem for GeoCities

Last week Yahoo announced plans to shut down GeoCities, an old-school web hosting service, later this year. "We have decided to discontinue the process of allowing new customers to sign up for GeoCities accounts as we focus on helping our customers explore and build new relationships online in other ways," the company stated. "We'll provide more details about closing GeoCities and how to save your site data this sum  [...]
Posted: Monday, April 27th 2009

Poll: Society Too Dependent on Gadgets

Nearly two-thirds (65%) of Americans think today's society is too dependent upon electronic gadgets, and 39% do not think technology (mobile phones, Wi-Fi networks and GPS) really makes people more productive, according to (pdf) a recent Harris Poll from Harris Interactive. Surprisingly, the study found no significant age divide among those   [...]
Posted: Wednesday, April 22nd 2009

Old Navy, Chrysler, Palm among Top 12 Brands Likely to Disappear

As the recession deepens, economic forces continue to drive consolidation in the retail industry, debt comes due and increasingly discerning consumers buckle down on discretionary spending. An analysis by 24/7 Wall Street predicts that a number of well-known brands are likely to disappear before the end of 2010. To determine which brands are most likely at risk,   [...]
Posted: Monday, April 20th 2009

Court Rules Certain Keywords Potential Trademark Violations

The Second Circuit Court of Appeals has issued a ruling in a Google case that may impact the way AdWords operates nationwide. Reversing a 2006 ruling that judged advertisers could buy trademarked search terms without violating trademark law, the Court concluded that recommending and "selling" a mark to advertisers -- for the purpose of triggering a sponsored link -- could violate trademark law. It also claimed product placements could be subject to trademark law if the trademark holder ca  [...]
Posted: Wednesday, April 8th 2009

Amazon Pulls Plug on Paid Search Associates' Fees

As of May 1, 2009, web retail giant Amazon will cease paying referral fees to Associates that use pay-per-click programs on search engines to send traffic to amazon.com, amazon.ca or endless.com. The news was covered in the Amazon Associates FAQ section and is a permanent change. According to Amazon, the decision was made after an overall review of how the company invests its advertising resources. Only Associates   [...]
Posted: Monday, April 6th 2009

Google to Cut 200 in Global Marketing, Sales

Google is making plans to cut 200 sales and marketing jobs -- half of which are based in North America, reports Advertising Age, which labeled it the biggest round of layoffs in the firm's history. Early this year Google announced it would discharge a "substantial number" of temporary and contract workers. Figures were not provided, but i  [...]
Posted: Friday, March 27th 2009

YHOO Folds Up FareChase Travel Bargain Site

Yahoo is shutting down FareChase, a travel bargain website it acquired in July 2004 and relaunched in '06. After this afternoon, visitors to FareChase will be redirected to its primary travel site, travel.yahoo.com. FareChase enabled users to run price-comparison searches for flights, hotels, cruises and cars. According to TechCrunch, FareChase's technology and user base did not provide sufficiently significant enhancement  [...]
Posted: Wednesday, March 25th 2009

Ad Spend Falls Thru '09, Forecasts Slightly Better for '10

Ad spend is expected to drop 12% in 2009, but signs indicate a leveling-off in 2010, according to a recently released Media Business Report from Jack Myers.com Media Network. The Myers report predicts a double-digit drop in total ad spending in 2009, following a 4% decline last year. It also projects this decline to continue into 2010, with a 5% dip for the full year, albeit off of a smaller base, MarketingCharts   [...]
Posted: Monday, March 16th 2009

Arnold Cuts Jobs, Salaries

Havas-owned Arnold is cutting about 7% of its headquarters workforce - about 40 employees - and is trimming salaries in its three primary offices. The job cuts are taking place only at the Boston office. The pay cuts are believed to be a first for the agency business in this downturn, writes Adweek (via Medi  [...]
Posted: Friday, March 13th 2009

Apple's Wings Clipped By Recession

Apple's Mac business has slowed and is expected to shrink this quarter, reports Business Insider. Last year, Apple's March quarter Mac shipments grew 51% year-over-year. Financial analysts expects Apple's Mac unit shipments to drop 4% year-over-year this quarter to 2.2 million units. Several factors combine to stop the phenomenal growth it had last year: a huge drop in the PC   [...]
Posted: Monday, February 23rd 2009

Revised TOS Gives Facebook Perpetual Rights to User Content

This month Facebook revised its Terms of Use, a document it is legally permitted to update at any time without informing users. Users demonstrate tacit acceptance of the Terms by continuous use of the site. The revision grants Facebook complete, perpetual ownership of content up  [...]
Posted: Monday, February 16th 2009

Google to Exit Radio Ad Business, Cut 40 Staffers

Google is shutting down its Audio Ads and Adsense for Audio products. It is also making plans to sell Google Radio Automation. About 40 employees working in Google's broadcast radio advertising sector can expect to lose their jobs. The move comes a month shy of Google's decision to shut down its print ad business. In January, services like Dodgeball, Jaiku and Google Video, were either   [...]
Posted: Friday, February 13th 2009

Media Industry Layoffs Higher than Avg; 'Net Companies Add 7% More Jobs

The advertising and media industry has cut 65,100 jobs since the recession began in Dec. 2007, according to AdAge DataCenter's analysis of figures released by the Bureau of Labor Statistics (via MediaBuyerPlanner). Media companies cut 41,000 US jobs, or 4.6% of staff, since the recession began -- while advertising/marketi  [...]
Posted: Tuesday, February 10th 2009

IAC Suffers Dismal Q4, Repositions Ask (Again)

This week InterActive Corp. reported a 19% drop in Q4 media and advertising revenue -- a plummet more significant than any experienced by other publicly-traded internet search providers. (Time Warner's AOL ad unit came close, however. Its Q4 ad revenue clocked an 18% drop.) Search ad prices for IAC fell 8-12% compared to the same period last year. The company projects media and ad revenue to decline by over 20% in 1Q  [...]
Posted: Friday, February 6th 2009

Data Vulnerability Plagues 44% of Retailer Wireless Devices

44% of the wireless devices used by retailers -- including laptops, mobile computers and barcode scanners -- could be compromised by data leaks and other security problems, according to the second annual Motorola AirDefense Retail Shopping Wireless Security Survey,   [...]
Posted: Thursday, February 5th 2009

Time Warner Takes $16B Loss

Time Warner posted a loss of $16.03 billion, or $4.47/share, in 2008's Q4. The results were due mainly to a $24.2 billion write-down for its cable, publishing and AOL assets, reports MediaBuyerPlanner. Prior to this, Time Warner predicted it would report an operating loss for the fourth quar  [...]
Posted: Thursday, February 5th 2009

Consumer Confidence Index Hits Historic Lows

The Conference Board Consumer Confidence Index, which had decreased in December, inched further downward in January and remains at a historic low of 37.7 (1985=100), down from (an upwardly revised) 38.6 in December, writes RetailerDaily. The Prese  [...]
Posted: Monday, February 2nd 2009