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Wikipedia Kills MSN Encarta

msn_encartaMicrosoft announced this week that it is shutting down its MSN Encarta websites around the world (except Japan).  Why?  Wikipedia.

Remember not so long ago when MSN Encarta was so often bundled in with other software and hardware purchases (think tax software in the U.S.)?  There was a time when getting MSN Encarta for free was a big perk.  Today, not so much.

According to a report by HitWise, MSN Encarta websites get less than 2% of all online encyclopedia searches while Wikipedia gets 97% (Encyclopedia.com gets the rest).  Not even Microsoft can compete with Wikipedia.

It’s interesting to me that Wikipedia, which is so often criticized for inaccuracies, bias, and so on, can be so dominant.  Even Google has tried to compete with Google Knol, but alas, Wikipedia remains strong.  Can you think of another brand that retains so much power despite its highly publicized faults?  One could argue that U.S. auto manufacturers would be an example, but recent events in that industry show sub-par performance will only get your brand so far. [Read more…] about Wikipedia Kills MSN Encarta

Miller Introduces the 1-Second Ad

miller_high_life1Who would have thought that a one-second beer commercial during the Super Bowl would get noticed?  Miller.

At a time when brands are competing harder than ever to get noticed between the clutter of messages consumers receive each day, Miller decided to break the television advertising mold with a one-second commercial. 

If you didn’t see the ad, check it out below.

 

What I love about this ad is its simplicity.  It reminds me of the Budweiser “Wassup?” commercials.  Of course, Budweiser had intended to push the word “true” in those ads, but “wassup?” became a term that permeated U.S. culture as fast as any Seinfeld quote like Frank Costanza’s classic “Serenity now!” 

You can see two Budweiser “Wassup?” commercials in the video below.

 

And for fun, here’s a “Serenity now” clip from Seinfeld.

 

So what does this tell us as marketers?  First, a well-placed ad with a simple message can work.  According to AC Nielsen, the one-second Miller ad moved the rating meter the same as the average 30-second commercial did during the 2009 Super Bowl, and sales for Miller High Life jumped the week after the commercial aired.  In other words, it really does pay to think out of the box and break the mold.  The question is whether or not your company is ready to be the next trendsetter.  In today’s economy, it could be what sets the winners apart from the losers (or at least the companies that will be here this time next year and those that will have to shut their doors).

What do you think?

Hat tip to Brand New Day for this post topic.

Image: Flickr

Corporate Governance Issues in 2009

(image from Hera Grupo Italy a good website)

Recent developments in the world economy and the financial markets are placing a sharper focus on Corporate Governance in 2009. I see headlines such as “Corporate Governance Hot Topic in 2009”,  “Poor corporate governance makes business headlines” and “Time to kill Sarbanes-Oxley”. Then there is Directorship magazine that says in “A New Era–From the NACD”

Never before has the need for vigilance and attention to corporate governance been so imperative.

Indeed!

Well I thought it might be useful to look a some surveys and forecasts about what are the top issues for Corporate Governance. First,  The 2008 What Directors Think study (PDF), cosponsored by PricewaterhouseCoopers LLP and Corporate Board Member, and available on the CFODirect network, indicates that Boards are focusing on

  • Risk management
  • Strategic planning
  • Succession planning
  • Recruiting of new members to enhance board strength and skills.

Next, Directorship magazine in the “Pre-empting Future Shock: How Boards Can Address the Economic Crisis Now” article, December 18, 2008, indicates five critical areas–

  • Strategy Boards should …consider whether their companies’ foundational assumptions regarding the nature of their markets, customers, and business economics are changing and, if so, the implications for strategy.
  • Operations/Organization Boards can make sure that scenarios have been tested under several different assumptions of sharp volume and pricing changes of, for example, 10, 15, and 20 percent drops in volume and a pricing decrease of 5 percent.
  • Balance sheet/liquidity The consideration of various operational scenarios should also look at whether the liquidity of the company is sufficient under each set of assumptions.
  • Compensation Because the current environment presents compensation committees with unique problems and will continue to do so for some time, they will have to consider whether and how to modify the compensation system.
  • Enterprise Risk Management (ERM) Now is certainly the time for boards and management teams to think about how to integrate ERM into the short- and long-term planning processes.

Then I found an interesting article “Ten Areas For Enhanced Board Focus In 2009” on a less well known but informative website —The Metropolitan Corporate Counsel. The areas are —

  • Apply judgment in tailoring governance structures and processes to the current needs of the company.
  • Take a fresh look at board composition and director competency.
  • Consider implementing some form of independent board leadership..
  • Ensure that risk oversight is on the board’s agenda, as a matter of substance and process.
  • Understand the impact of risk on strategic aspects of operations.
  • Reemphasize (and review) disclosure controls and procedures to ensure timely and accurate disclosures, as well as effective internal controls, compliance and ethics systems generally.
  • Scrutinize compensation incentives through a risk-focused lens.
  • Build risk management into CEO and senior executive evaluations.
  • Exercise caution in adjusting previous equity compensation grants (for example, repricings or exchanges) or in otherwise adjusting compensation with respect to missed performance goals.
  • Ensure the vitality of the tone at the top and its alignment with risk profile, strategic direction, compensation incentives and financial reporting and controls.

Now let’s see what Corporate Governance experts are saying.

Writing in Compliance Week on January 21st, Rick Steinberg, founder and principal of Steinberg Governance Advisors and the author of Corporate Governance and the Board — What Works Best and Audit Committee Effectiveness — What Works Best indicates–

Risk management and corporate culture — are two of the areas that Steinberg believes need to be focused on by boards to help reverse the frightening trend that as manifested itself recently. Additionally, strategy and implementation need to be monitored by boards, as well as an analysis of whether performance measures are in alignment with strategy and compensation.

Common themes seem to be Risk Management, Compensation, Succession Planning and Strategy. Boards are beginning to learn that they must not abnegate this vital function to management. Strategic Planning touches all corporate areas and requires the active involvement of the Board.

Strategy will be covered in more depth in future posts.

Google, Keywords, and Trademarks – French Companies Cry Foul

gavelNews is making its way across the Internet today about two French companies that are suing Google because their trademarked names were purchased as search ad keywords through the Google AdWords program by the companies’ competitors, and ads were served by those competitors when people typed the trademarked names into Google. 

The two companies, Voyageurs du Monde and Terres d’Aventure, are suing for significant sums of money according to The Register, despite the fact that a judge has already determined that the loss of business to both companies as a result of the served ads based on those trademarked keywords was very marginal.  Apparently, two other companies have won similar suits against Google in France the past, Louis Vuitton Moet Hennessy and Meridien Hotels. [Read more…] about Google, Keywords, and Trademarks – French Companies Cry Foul

Brands that Made Headlines in 2008

Which brands were in the news in 2008?  I thought I’d put together a review of newsworthy brands (good and bad) by writing down the first 10 brands that popped into my head that made headlines in 2008.  Here we go…

1. Apple

Apple could do no wrong in 2008.  The iPhone, iPod, iTunes, new Macbooks, a laptop that fits in a manilla envelope – you name it, Apple has been hot in recent years, and 2008 was not an exception.  If there is an easier way to do something (and a prettier way), Apple will find it.  Apple is the perfect example of a thriving relationship brand that moved from cult status to actually steal some market share from the market leader, Microsoft, who has actually stooped to trying to counterattack Apple with ads that leave much to be desired.  Will Apple remain as popular in 2009?  We’ll have to wait and see, but I can’t imagine the love story will end anytime soon. [Read more…] about Brands that Made Headlines in 2008