Archive for March 16th, 2008

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Henry Blodget at Silicon Alley Insider offers some good in “Google Sucks Life Out of Old Media.” While we all know that, yes, Google (NASDAQ: GOOG) is a one-race pony and that its growth rates are slowing, there is no denying that Google continues to not only dominate the on the internet ad celebration, but advertising in general as its growth rates mock anything else comparable out there.

Blodget looks at a couple of things here. First, he looks at the growth of advertising in general and its split between online and offline. Next, he looks at the split between on the web players and their growth prospects. His findings won’t surprise Google bulls (this author included), but to see the actual numbers — it’s pretty staggering.

Specifically, some numbers from Blodget:

  • Total U.S. ad revenue (in 17 companies Blodget, et al., looked at) grew 9% from 2006 to 2007, from $53 billion to $58 billion.
  • On the internet ad revenue grew 28%, from $14 billion to $18 billion.

Wow. While 9% overall industry growth is interesting, though not jump-up-and-down-and-call-your-preacher numbers, on the internet ad growth is seeing tremendous gains.

So, who’s the winner in all of this?

Again, from Blodget:

  • Online ad revenue at Google grew 44%, or $2.7 billion.
  • Online ad revenue at Yahoo, Microsoft, and AOL grew only 15%, or $1.3 billion.

That’s 15% growth from leaders like Yahoo! (NASDAQ: YHOO), Microsoft (NASDAQ: MSFT) and Time Warner’s (NYSE: TWX) AOL — combined!

While none of this information may have any impact on Google’s stock price, it’s important to see things in perspective. Looking at the data differently, maybe everyone knows how extremely well-performing Google is and is betting that Google has everything to lose going forward. Truth is, I don’t know, but what I do know is that right now, Google is the go-to recipient of all that ad money flowing on the internet.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author is long GOOG stock.

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Perry Ellis, G-III shares apt to rise: Barron’s
Reuters South Africa - Last: NEW YORK (Reuters) - Shares of Perry Ellis International (PERY.O: Quote , Profile , Research ) and G-III Apparel (GIII.O: Quote , Profile , Research ) are prone to rise this year, barring a deep economic recession, fueled by good management

Gov’t to push for JD500 million budget supplement
Jordan Times - AMMAN (JT) - The say budget deficit for the current financial year will not exceed the computed figure, estimated at JD724 million by the end of 2008, despite a government plan to present to Parliament a JD500 million budget supplement, Finance

Fed Must Buy Securities to Halt Crisis, Cambiar’s Barish States
Bloomberg - The emergency funding for Bear led the company’s stock to plummet 47 percent to $30 last week as investors took a gloomy view of the prospects of a brokerage firm that can’t finance itself.

Russia’s tax reform sees VAT cut to 12-13 pct
Reuters - The proposal comes after both outgoing President Vladimir Putin and President-elect Dmitry Medvedev took the side of the industrial lobby in a tax debate that dragged on for years despite strong opposition from Finance Minister Alexei Kudrin.

Pakistan’s finance minister must fix tattered economy
Gulf News - Islamabad: Whoever gets the finance minister’s in Pakistan’s new government will have to deal with widening budget and trade deficits in an economy pressured by rising international oil prices and chronic shortages of energy and staples. The Pakistan

After Bear bailout, who’s next?
Globe and Mail - There’s a limit to how many of these entities they can bail out,” said Franklin Allen, a finance professor at the University of Pennsylvania’s Wharton School.

Clinton Apologizes to Black Voters
Associated Press - Obviously she doesn’t talk for the campaign, she doesn’t speak for any of my positions, and she has resigned from being a member of my very big finance committee.

Land sharks zero in on Noida villages
Daily Pioneer - We have identified five major property dealers who are involved in illegal land trade and action will be taken very soon,” said Shivakant Divedi, the ADM (Finance) of Gautam Budh Nagar.

Punjab opposition baffles many
Tribune - But once the Punjab government froze its annual finance support at Rs 16 crore, the Centre, too, stopped releasing additional 8 per cent incremental funds.

France’s left looks beyond poll victory
News.com.au - Dominique Strauss-Kahn, a former finance minister and party heavyweight who now heads the International Monetary Fund, has called for a “broad party able to encompass all of the left, from the centre-left to the more radical left”

Liberal Bob Rae says voters won’t punish him for his past in Monday’s
CNEWS - You’ve got (Finance Minister Jim) Flaherty knocking Ontario - saying Ontario and Toronto are lousy places to do business, lousy places to invest - and I think there’s a sense that’s just so contrary to people’s interests.

Zimbabwe screening foreign journalists
Kansas City Star - His party is being challenged by groups led by former finance minister and ruling party loyalist Simba Makoni and opposition leader Morgan Tsvangirai.

Critics have accused Zimbabwe of trying to keep out Western reporters by delaying them from

Sarkozy’s celebration lags in local elections
Miami Herald - Business Monday | National | International | Personal Finance | Technology | Small Business | Friday Business Report A woman leaves a polling booth on her way to cast her vote for the local elections, Sunday March 16, 2008 in Strasbourg

Man goes on trial for sex tourism charges
Miami Herald - Business Monday | National | International | Personal Finance | Technology | Small Business | Friday Business Report A West Palm Beach man will stand trial beginning Monday for booking what he thought was a trip to Costa Rica to visit a

Pay Cheques: Core advisers might need larger wallets
Economic Times - NEW DELHI: The government seems to be getting more receptive to market realities when it comes to hiring professionals for cutting-edge advice. It is preparing to give handsome packages to finance professionals who would advise key central ministries

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keyboardI often spend a tiny time over at Blogmaverick.com, where Mark Cuban recently sought to give the world of blogging a little of his insightful perspective. It seems that Mr. Cuban finds tiny to respect in the world of blogging, or at least in the world of slipshod ,cookie-cutter blogging. Though I found Mark’s blog entry a trifle difficult to read, which is quite uncommon coming from him, I nonetheless concur with most of the body of his post. I especially concur with his assertion that just because a blog is backed by the name of a well-known media organization does not in itself render that blog worthy of special notice.

Mark Cuban wrote, “…newspapers having ‘bloggers’ is easily one of the many bad decisions that newspapers have made over the past 10 years.” If newspapers are going in a wrong direction by producing blogs, perhaps they need to reinstall the title reporter and drop the title blogger to give a different perspective to the reader. If newspapers are using the term blog simply as a culture hook, then they’ve it all wrong and they’re just selling their reporters short. I believe that I’m in agreement with Mark Cuban when I state that true reporters should be releasing content within some format other than blogs. Blogging is what I do, and I’ll be the first to tell you that I’m no reporter. The titles are totally not interchangeable, though they might sometimes be used correctly in tandem.

Righteous blogs increasingly will become a sought-out information source for a world that still reads a little. Please don’t write us off the page. We’ve been refining this gig for only a short while. Mark Cuban stated repeatedly, “a blog is a blog is a blog.” With that position I take issue. The blogosphere has been in a say of constant metamorphosis ever since the term was coined. It’s shortsighted to condemn blogging on the whole just because the internet is littered with cut-and-paste hackers trying to wring a buck from ads by Google Inc. (NASDAQ: GOOG). I believe that Mr. Cuban does actually have respect for a few particular blogs. However, which blogs those might be, he’s not readily disclosing.

Mark Cuban also blogged that branding is essential to blogging success. He wrote, “Perception is reality. If you can leverage your existing (blog) to create the perception that yours is different from the masses in some meaningful way, then you must do everything you can to do so.” I’d like to add that each individual blogger should attempt to brand his or her own personal style. Just stamping out the verified facts may seem to be good service to the readers, but thousands of bloggers are doing that right now. In my view, if you really want to make the readership take notice of who you’re, you must give them something of yourself to grasp on to. That sometimes includes fielding rumors, stating your thoughts, speculation beyond the facts and the right to editorialize. It also occasionally involves taking the risk that some people might end up not liking you.

It might seem that the term blog itself has become a bit of a thorn in the side of Mark Cuban. He says, “If I worked for the NY Times, or any other media company with any level of brand equity, I would have done everything possible to define the section of our website that offers ongoing [content] as anything other than a blog.” I believe that Mr. Cuban might have the opinion that the concept of blogs is becoming blurred with the concept of destination websites. If that’s the case, I couldn’t concur with him more. There’s a point where the content presented differentiates itself between what is a blog post and what’s a website article. This reality isn’t, and will never be controlled simply by presentation or word count. It resides mostly in the intent of the reader who visits the content. Just calling a bunch of words a blog doesn’t make them one, and jamming snippets of scrollable content into what should be considered a destination website is something akin to sticking Post-it Notes in an encyclopedia. In my view, it just kind of muddles the overall effectiveness of the presentation. I believe you need to be producing one or the other, either a destination website or a blog.

Finally, Mark addresses his dismay with the quality of some world wide web content. Relative to reporting in the world of sports, he wrote, “There is no shortage of speculation and thoughts on the net. There’s an incredible lack of depth when it comes to game and team coverage.” Unfortunately, I feel that this is the point where Mark Cuban might be backing the vehicle over the dog. I believe if you want true depth of coverage in a blog format, then you must leave room for a bit of speculation and view. Otherwise, you’re just writing a lifeless, bland entry of biographical data. While it is true that genuine journalism does not survive long apart from factuality, objectivity and depth, we need to remember that blogging is a medium that generally must entertain it’s visitors in a way that conventional reporting has never been required to. We bloggers have learned that the list of necessary ingredients for blogging success includes sufficient amounts of verifiable factual information, insight from those involved in the subject, some background information, the writer’s individual perspective and a bit of humor. Of course this list is not all inclusive and is subject to each blogger’s individual intent and style.

I’d like to thank Mark Cuban for sharing his insight and thoughts with us on his blog. He provides much good information for entrepreneurs and media hopefuls like myself. I always find useful information when I read his project, Blogmaverick. I can only hope that he might find my blogging to be as worthwhile as his own.

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