Google Will Stay in China, Poll Says
NEW YORK (TheStreet) -- Despite the heated battle over censorship and security breaches, Google(GOOG Quote) is not expected to leave China, according to TheStreet users
An overwhelming 66.4% said Google would stick it out, while 33.6% said the company would cease doing business in the country.
Google's fourth-quarter earnings report, which raised some concern of future growth prospects, could be one reason why voters believe Google will stay in the country.
On Thursday, the company reported earnings of $1.97 billion, or $6.13 a share, compared with $382 million, or $1.21 a share, in the year-ago period. Excluding special items, Google would have earned $6.79 a share, better than the $6.48 analysts expected.
Revenue grew 17% to $4.95 billion. While this matched Wall Street's forecast, it disappointed investors who believed the company would significantly surpass estimates.
The other red flag came from search paid clicks, which were lower than last year.
While the amount of Google's business coming out of China is minimal (analysts estimate only about 3% of its revenue will come from the country in 2010), exiting the country could have severe consequences for the future growth of the company.
China boasts one of the world's fastest growing Internet markets. In 2008, the country outpaced the United States, and now claims the most Internet users in the world.
Google did not reveal any new developments in its plans with China during its earnings call, simply stating that it would like to continue to work with China, but intends to stop censoring search results in the country within "a reasonably short time."
The battle between Google and China arose after Google reported a cyber-attack that seemed to target human rights advocates in the country.
On Friday, Beijing shot down U.S. claims that China is hindering the free flow of information over the Internet. Foreign Ministry spokesman Ma Zhaoxu said regulations are in-line with Chinese law and do not hurt the cyber operations of the rest of the world.
The Internet company also said that it will no longer adhere to China's censorship demands. Since 2006, Google has filtered its search results on its Google.cn, in compliance with the country's wishes.
Earlier this week, Google announced that it will delay the launch of two phones in China that use its Android operating system. The devices are from Samsung and Motorola(MOT Quote) and were set to launch on Wednesday.
-- Reported by Jeanine Poggi in New York.
Saturday, 23 January 2010
Newspaper ads still the most effective
Newspaper ads still the most effective
By EUGENE MAHALINGAM
eugenicz@thestar.com
ADVANCES in technology may have spurred the growth of various forms of media, but newspapers are still a staple of our society and they continue to grab the lion’s share of advertising expenditure, says Omnicom Media Group (OMG) managing director Andreas Vogiatzakis.
Andreas Vogiatzakis ... ‘Habits don’t change dramatically.’
In its latest Optimum Impression 2009 study, OMG reveals that 57% of newspaper ads got noticed – which has been the trend since 2003.
“From the study, we found that habits don’t change dramatically. Newspapers continue to dominate in the ad spend despite the decline in ad spend,” says Vogiatzakis.
OMG director of communication insights for Asia Pacific, Guy Hearn, says the fact that the majority of ads were noticed by readers was proof of the continued relevance and importance of newspapers to advertisers.
He says that ad relevance picked up especially during a global economic downturn. In the study, it was revealed that readership of print newspapers in Malaysia rose 32% in 2009.
“Last year was the recession and the trend is that people spent more time at home. With the news that was going on in the marketplace, people wanted to be more informed about what was going on,” he explains.
Held in August last year, the study covered 2,452 different ads in 15 main newspapers and 1,023 readers aged 15 to 54 in Kuala Lumpur, Petaling Jaya, Penang, Ipoh and Johor Baru. Overall, there was a total of 14,522 ad exposures.
Guy Hearn ... ‘People wanted to be more informed about what was going on.’
The newspapers surveyed comprised five English newspapers (The Star, The Sun, New Straits Times, The Malay Mail, The Edge), six Chinese dailies (Sin Chew Daily, China Press, Kwong Wah, Guang Ming, Nanyang Siang Pau, Oriental Daily) and four Malay dailies (Utusan Malaysia, Kosmo, Harian Metro and Berita Harian).
OMG research manager Yong Shel Vei, in presenting the results of the study, says that ad noting among Malay language readers was the highest.
“More than two thirds (68%) of ads were noticed by these readers and this is probably due to the lower ad clutter in Malay language titles. On average, Malay language newspaper readers are exposed to 15% less ads than the Chinese language newspaper readers,” she adds.
Vogiatzakis says it is immaterial whether an advertiser chooses to place an ad in a paid or free newspaper.
“From my professional experience in Malaysia, once the decision is made to pick up the free paper and flip through the pages, whether it’s paid or free, it doesn’t matter,” he argues.
“If your creative is strong and is of substantial importance, like targeting a housewife with a shopping coupon, I guarantee you she will pick it (the newspaper) up. The fundamentals don’t change. You have to have a great product and an idea that captures the heart and mind of the consumer.”
Yong Shel Vei says ad noting among Malay language readers was the highest.
Overall, the study revealed that ad noting on Saturdays was highest due to lower ad clutter. The study also revealed that newspaper circulation had surged to 4.8 million currently from 800,000 in 2003.
“The higher ad noting on Saturdays is also possible because people have more time to read the newspapers on that day,” says Yong. She adds that ads that are larger have a higher chance of being noticed.
“Bigger ads are not only more likely to get the reader’s attention, they also enhanced the brand recall and increase the chances of readers reading the ad and absorbing its message. A full-page ad yields 21% higher ad noting than a quarter page,” she says.
Coloured ads were also revealed to attract attention. According to the study, 59% of coloured ads were noticed compared to 53% of black and white ones. Ads placed on right-hand pages were also more likely to be noticed, especially in tabloids.
Yong also says ads that were creative were better recalled by readers. “Media creativity enhances ad noting by 15%, ad read by 30% and brand recall by 25%.”
She says sandwich ads, namely those placed in the middle of a page between news articles, could generate as much as 40% higher ad noting.
By EUGENE MAHALINGAM
eugenicz@thestar.com
ADVANCES in technology may have spurred the growth of various forms of media, but newspapers are still a staple of our society and they continue to grab the lion’s share of advertising expenditure, says Omnicom Media Group (OMG) managing director Andreas Vogiatzakis.
Andreas Vogiatzakis ... ‘Habits don’t change dramatically.’
In its latest Optimum Impression 2009 study, OMG reveals that 57% of newspaper ads got noticed – which has been the trend since 2003.
“From the study, we found that habits don’t change dramatically. Newspapers continue to dominate in the ad spend despite the decline in ad spend,” says Vogiatzakis.
OMG director of communication insights for Asia Pacific, Guy Hearn, says the fact that the majority of ads were noticed by readers was proof of the continued relevance and importance of newspapers to advertisers.
He says that ad relevance picked up especially during a global economic downturn. In the study, it was revealed that readership of print newspapers in Malaysia rose 32% in 2009.
“Last year was the recession and the trend is that people spent more time at home. With the news that was going on in the marketplace, people wanted to be more informed about what was going on,” he explains.
Held in August last year, the study covered 2,452 different ads in 15 main newspapers and 1,023 readers aged 15 to 54 in Kuala Lumpur, Petaling Jaya, Penang, Ipoh and Johor Baru. Overall, there was a total of 14,522 ad exposures.
Guy Hearn ... ‘People wanted to be more informed about what was going on.’
The newspapers surveyed comprised five English newspapers (The Star, The Sun, New Straits Times, The Malay Mail, The Edge), six Chinese dailies (Sin Chew Daily, China Press, Kwong Wah, Guang Ming, Nanyang Siang Pau, Oriental Daily) and four Malay dailies (Utusan Malaysia, Kosmo, Harian Metro and Berita Harian).
OMG research manager Yong Shel Vei, in presenting the results of the study, says that ad noting among Malay language readers was the highest.
“More than two thirds (68%) of ads were noticed by these readers and this is probably due to the lower ad clutter in Malay language titles. On average, Malay language newspaper readers are exposed to 15% less ads than the Chinese language newspaper readers,” she adds.
Vogiatzakis says it is immaterial whether an advertiser chooses to place an ad in a paid or free newspaper.
“From my professional experience in Malaysia, once the decision is made to pick up the free paper and flip through the pages, whether it’s paid or free, it doesn’t matter,” he argues.
“If your creative is strong and is of substantial importance, like targeting a housewife with a shopping coupon, I guarantee you she will pick it (the newspaper) up. The fundamentals don’t change. You have to have a great product and an idea that captures the heart and mind of the consumer.”
Yong Shel Vei says ad noting among Malay language readers was the highest.
Overall, the study revealed that ad noting on Saturdays was highest due to lower ad clutter. The study also revealed that newspaper circulation had surged to 4.8 million currently from 800,000 in 2003.
“The higher ad noting on Saturdays is also possible because people have more time to read the newspapers on that day,” says Yong. She adds that ads that are larger have a higher chance of being noticed.
“Bigger ads are not only more likely to get the reader’s attention, they also enhanced the brand recall and increase the chances of readers reading the ad and absorbing its message. A full-page ad yields 21% higher ad noting than a quarter page,” she says.
Coloured ads were also revealed to attract attention. According to the study, 59% of coloured ads were noticed compared to 53% of black and white ones. Ads placed on right-hand pages were also more likely to be noticed, especially in tabloids.
Yong also says ads that were creative were better recalled by readers. “Media creativity enhances ad noting by 15%, ad read by 30% and brand recall by 25%.”
She says sandwich ads, namely those placed in the middle of a page between news articles, could generate as much as 40% higher ad noting.
Becoming a realistic investor
Becoming a realistic investor
Review by ERROL OH
errol@thestar.com.my
Even Buffett Isn’t Perfect: What You Can – and Can’t – Learn from the World’s Greatest Investor
Author: Vahan Janjigian
Publisher: Portfolio
THE title invites an instant retort: “C’mon, nobody really thinks Warren Buffett is perfect.”
Thus is the shakiness of the book’s apparent premise; that people are so wowed by Buffett’s extraordinary track record as an investor that they are somehow blind to the fact that he has made his share of missteps and that his investment philosophy and strategy are not for everybody.
Referring to many Buffett-watchers, Vahan Janjigian writes: “They believe he has become successful by simply implementing the same basic strategies over and over again. They also like to believe that anyone can be a tremendously successful investor just by learning some of Buffett’s favourite tricks and doing what he has done in the past. If only things were that simple.”
Of course, it’s up to the author to uncover Buffett’s feet of clay and the areas of incompatibility between the Buffett way and what most investors can do, given the latter’s more slender resources.
Some of these points are patently obvious. Do we need to be reminded, for example, that unlike Berkshire Hathaway and Buffett, most investors can’t afford to buy a significant stake in a listed company, let alone entire companies?
Nevertheless, it’s an important distinction. Buffett’s deep pockets and stellar reputation mean he can typically exert influence over the businesses he has invested in, thus improving his chances of getting good returns. Other investors can only hope they have made the right bets or that fellow shareholders with the same kind of clout that Buffett has, will step in when things go wrong.
Also, Buffett doesn’t need to spend much time sniffing out potential investments. Instead, he cherry-picks from the tonnes of deal proposals that he receives regularly.
This book is actually yet another analysis of the Oracle of Omaha’s moves that doubles up as an investment manual. “By studying Buffett you can learn what works and what does not work in most circumstances,” the author writes in the introduction.
“By learning everything you can about Buffett’s strategies, you will ensure that you have the information you need to maximise the probability of success no matter what your investment horizon.
“You will also develop an understanding of and an appreciation for the risks involved in the various kinds of investment strategies that are available to you. And you will make yourself a more realistic investor.”
Even Buffett Isn’t Perfect’s unique selling proposition is that Janjigian, chief investment strategist at Forbes, tackles the job by adopting a less-than-awed stance on some of the things the Berkshire Hathaway CEO has said and done.
The author highlights inconsistencies and mistakes, debunks common misconceptions, and offers alternative opinions, often backed by research findings.
For one thing, our fondness for convenient labels – plus, the man himself cultivates a certain public image – breeds inaccurate notions about Buffett’s approach to investment. Many people see him as strictly a value investor, but he also buys growth stocks. He is famous for his insistence on long-term holdings, but he also trades.
Janjigian takes up a few chapters to pick apart Buffett’s well-known views on corporate governance, succession planning, stock options, taxes and earnings guidance.
The author provides some sturdy arguments against Buffett’s positions, but when you consider the basis of the book, the question has to be asked: Since when is it an imperfection to have opinions that are open to debate?
Again, this exposes the flimsiness of Even Buffett Isn’t Perfect’s gimmicky framing device. But if you look past that, the book is a useful addition to the library of publications about Buffett. Its main value is that it promotes critical thinking over adulation.
And mind you, the book is not meant to put a dent in the Buffett legend. In the last chapter – indeed, the book’s subtitle is already a dead giveaway – Janjigian gives a tip of the hat to Buffett, pointing out that the man has made many of the other Berkshire Hathaway shareholders rich as well.
“Perhaps no other single individual has created more millionaires. Based on the evidence, it is certainly fair to conclude that Buffett is one of the greatest investors – if not the greatest investor – of all time.”
Review by ERROL OH
errol@thestar.com.my
Even Buffett Isn’t Perfect: What You Can – and Can’t – Learn from the World’s Greatest Investor
Author: Vahan Janjigian
Publisher: Portfolio
THE title invites an instant retort: “C’mon, nobody really thinks Warren Buffett is perfect.”
Thus is the shakiness of the book’s apparent premise; that people are so wowed by Buffett’s extraordinary track record as an investor that they are somehow blind to the fact that he has made his share of missteps and that his investment philosophy and strategy are not for everybody.
Referring to many Buffett-watchers, Vahan Janjigian writes: “They believe he has become successful by simply implementing the same basic strategies over and over again. They also like to believe that anyone can be a tremendously successful investor just by learning some of Buffett’s favourite tricks and doing what he has done in the past. If only things were that simple.”
Of course, it’s up to the author to uncover Buffett’s feet of clay and the areas of incompatibility between the Buffett way and what most investors can do, given the latter’s more slender resources.
Some of these points are patently obvious. Do we need to be reminded, for example, that unlike Berkshire Hathaway and Buffett, most investors can’t afford to buy a significant stake in a listed company, let alone entire companies?
Nevertheless, it’s an important distinction. Buffett’s deep pockets and stellar reputation mean he can typically exert influence over the businesses he has invested in, thus improving his chances of getting good returns. Other investors can only hope they have made the right bets or that fellow shareholders with the same kind of clout that Buffett has, will step in when things go wrong.
Also, Buffett doesn’t need to spend much time sniffing out potential investments. Instead, he cherry-picks from the tonnes of deal proposals that he receives regularly.
This book is actually yet another analysis of the Oracle of Omaha’s moves that doubles up as an investment manual. “By studying Buffett you can learn what works and what does not work in most circumstances,” the author writes in the introduction.
“By learning everything you can about Buffett’s strategies, you will ensure that you have the information you need to maximise the probability of success no matter what your investment horizon.
“You will also develop an understanding of and an appreciation for the risks involved in the various kinds of investment strategies that are available to you. And you will make yourself a more realistic investor.”
Even Buffett Isn’t Perfect’s unique selling proposition is that Janjigian, chief investment strategist at Forbes, tackles the job by adopting a less-than-awed stance on some of the things the Berkshire Hathaway CEO has said and done.
The author highlights inconsistencies and mistakes, debunks common misconceptions, and offers alternative opinions, often backed by research findings.
For one thing, our fondness for convenient labels – plus, the man himself cultivates a certain public image – breeds inaccurate notions about Buffett’s approach to investment. Many people see him as strictly a value investor, but he also buys growth stocks. He is famous for his insistence on long-term holdings, but he also trades.
Janjigian takes up a few chapters to pick apart Buffett’s well-known views on corporate governance, succession planning, stock options, taxes and earnings guidance.
The author provides some sturdy arguments against Buffett’s positions, but when you consider the basis of the book, the question has to be asked: Since when is it an imperfection to have opinions that are open to debate?
Again, this exposes the flimsiness of Even Buffett Isn’t Perfect’s gimmicky framing device. But if you look past that, the book is a useful addition to the library of publications about Buffett. Its main value is that it promotes critical thinking over adulation.
And mind you, the book is not meant to put a dent in the Buffett legend. In the last chapter – indeed, the book’s subtitle is already a dead giveaway – Janjigian gives a tip of the hat to Buffett, pointing out that the man has made many of the other Berkshire Hathaway shareholders rich as well.
“Perhaps no other single individual has created more millionaires. Based on the evidence, it is certainly fair to conclude that Buffett is one of the greatest investors – if not the greatest investor – of all time.”
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