For PCs, a new lease on life.

There are some interesting results being reported so far this year in the world of “screens.” While smartphones and tablets have seen lackluster growth — even a plateauing or a decline of sales — PCs have charted their strongest growth in years.

As veteran technology reporter Dan Gallagher notes in a story published recently in The Wall Street Journal, “PCs have turned out to be a surprising bright spot in tech’s universe of late.”

In fact, Microsoft and Intel Corporation have been the brightest stars among the large-cap tech firms so far this year. Intel’s PC chip division’s sales are up ~16% year-over-year and now exceed $10 billion.

The division of Microsoft that includes licensing from its Windows® operating system plus sales of computer devices reports revenues up ~15% as well, nearing $11 billion.

The robust performance of PCs is a turnaround from the past five years or so. PC sales actually declined after 2011, which was the year when PC unit sales had achieved their highest-ever figure (~367 million).  Even now, PC unit sales are down by roughly 30% from that peak figure.

But after experiencing notable growth at the expense of PCs, tablet devices such as Apple’s iPad and various Android products have proven to be unreservedly solid replacements for PCs only at the bottom end of the scale — for people who use them mainly for tasks like media consumption and managing e-mail.

For other users — including most of the corporate world that runs on Windows® — tablets and smartphones can’t replace a PC for numerous tasks.

But what’s also contributing to the return of robust PC sales are so-called “ultra-mobile” devices — thin, lightweight laptops that provide the convenience of tablets with all of the functionality of a PC.  Those top-of-the-line models are growing at double-digit rates and are expected to continue to outstrip rates of growth in other screen segments including smartphones, tablets, and conventional-design PCs.

On top of this, the continuing adoption of Windows 10 by companies who will soon be facing the end of extended support by Microsoft for the Windows 7 platform (happening in early 2020) promises to contribute to heightened PC sales in 2019 and 2020 as well.

All of this good news is being reflected in the share prices of Intel and Microsoft stock; those shares have gone up following their most recent earnings reports, whereas all of the other biggies in the information tech sector — including Alphabet, Amazon, Apple, Facebook, IBM, Netflix and Texas Instruments — are down.

It’s interesting how these things ebb and flow …

Programmatic ad buying in the B-to-B sector: The adoption rate grinds to a halt.

Each year, Dun & Bradstreet publishes its Data-Driven Marketing & Advertising Outlook report.  The report’s findings are based on a survey of marketers in the business-to-business sector.  Among the questions asked of marketers is about the advertising tactics they utilize in support of their sales and business objectives.

A look at D&B’s annual outlook reports over the past several years, an interesting trend has emerged: The adoption rate of B-to-B companies being involved in programmatic ad buying has plateaued at somewhat below 65% of firms.

In fact, you have to go back to 2015 in D&B’s reports to find the proportion of companies involved in programmatic advertising running significantly below where it is now.

That being said, those firms that are involved in programmatic ad buying are planning on allocating additional funds to the effort. The most recent survey finds that ~60% of the respondents involved in programmatic advertising plan to increase their spending in 2019.  That includes ~20% who plan to allocate a significant dollar increase of 25% or greater.

Another interesting finding from the 2018 survey is that there appears to be slightly less interest in display and video programmatic ad placements – although display remains the most commonly run ad type.

Where heightened interest lies includes one category that should come as no surprise – mobile advertising – as well as several that might be more unexpected. Social media advertising seems like it wouldn’t be a very significant part of most B-to-B ad buyers’ bag of tricks, but two-thirds of respondents reported that programmatic advertising in that sector will be increasing.

Another interesting development is that ~17% of the respondents reported that they’re stepping up their programmatic buying for TV advertising – which may be an interesting portent of the future.

Lastly, the survey revealed little change in the types of challenges respondents face about programmatic ad buying – namely, how to target the right audiences more effectively, how to measure results, and the need for better technical and operational knowledge for those charged with overseeing programmatic ad efforts inside their companies.

More information and findings from the 2018 D&B report can be viewed here.

Rough commutes are taking a toll on employees.

I wonder how many people chafe at the long commutes they face to-and-from work each day?

In my case, the work commute is a little lengthy, but at least I’m in the car, moving.  Other people I know deal with traffic gridlock, which is as frustrating as it can be soul-crushing.

Several others brave the elements with public transportation — transferring across several bus routes in hour-long commutes that could otherwise be completed in one-third the time.

As it turns out, there’s a good deal of restiveness when it comes to work commutes. Employment and staffing firm Robert Half Associates found this out when it surveyed ~2,800 working adults earlier this year across 28 U.S. urban markets.

Robert Half discovered that nearly one in four of the workers surveyed have quit at least one job during the course of their careers because of inordinately long or difficult commuting times. And among the 28 urban markets studied, the highest incidence of changing jobs because of a problem commute were for workers residing in the Chicago, Miami, New York and San Francisco metro areas.

Interestingly, it’s younger workers (those between the ages of 18 and 35) who are the most likely to have left jobs because of a bad commute. Is it because of raising young families, or simply wanting more unfettered free time?

As for commuting trends in these urban markets, about one in five of the respondents surveyed report that their commute has become worse in the past five years. On the positive side, twice that percentage report that their commute has actually improved, while the balance report little or no change in their commuting conditions.

San Francisco and Austin residents report worsening work commutes, whereas workers in Miami, Los Angeles, New York and Charlotte are most likely to report that their commutes have improved over the past five years.

The Robert Half survey results underscore the view that rough commutes can have a major negative impact on morale – and ultimately, on employees’ decisions to stay with or leave their place of employment.

No wonder a growing number of companies are offering nontraditional employment programs — where showing up at the office daily is no longer the only way to be on the payroll.  We’ll probably see more of these arrangements in the years ahead.

When companies and brands take a stand on “issues,” here’s a quick way to weigh the potential implications.

In recent years, companies and brands have found it increasingly difficult to navigate the PR waters in a politically polarized environment.

On the one hand, companies want to be seen as progressive and inclusive organizations.  On the other, there is concern about coming off as too controversial.

The environment is about as toxic as it’s ever been. In the “good old days,” companies were able to merrily avoid controversy by supporting universally agreed-upon “benign” causes.  But whereas in the 1970s or 1980s, celebrating Christmas or financially supporting the city’s symphony orchestra or fine art gallery was never faulted, today the situation is different.

Acknowledging a religious holiday risks criticism about offending non-believers or shortchanging people of other spiritual faiths. And dishing out dollars in support of “high culture” invites barbs about the need to divert those resources to more “socially woke” initiatives and away from “high culture” pursuits that speak to only a small slice of the general public.

The recent controversy with Nike and its Colin Kaepernick-inspired “Just Do It” campaign is another case in point. It may be a bit of a coin toss, but the conventional view is that Nike’s campaign was, on balance, a modest victory for the company in that more of the public was favorably disposed to it than put off by it.  And after a momentary dip in Nike’s share price, the stock recovered and ended up higher.

Less successful was Target’s move to direct its employees to forego wishing customers “Merry Christmas,” and instead use the more generic “Happy Holidays” greeting. Target decided to be “out front” with this issue compared to competitors like Wal-Mart.  But after several years of gamely attempting to enforce this guideline in the wake of negative customer reaction and a barrage of bad press on the talk shows, Target finally relented, quietly reverting to the traditional Xmas greeting.

Simply put, in the current cultural environment there are more risk-and-reward issues for brands than ever — and what actually happens as a result is often unpredictable.

And yet … surveys show that many consumers want brands to take overt stands on hot-button issues of the day.  Sometimes brands are just as criticized for not taking a stand on those very same hot-button issues — such as whether to adopt gun-free zones in office and retail spaces or deciding what kind of gun-related merchandise will be prohibited from being sold in their stores.

To deal with this increasingly gnarly challenge, recently the marketing technology company 4C Insights developed a “decision tree” exercise that’s elegantly simple. It’s a great “back of the napkin” way for a company to weigh the potential upside and downside factors of taking a stand on a socio-political issue that could potentially impact product sales, corporate reputation, or the company’s share price.

Here’s the 4C Insights cheat-sheet:

To my mind, the 4C Insights decision tree can be applied equally well to weighing a potentially controversial social or cultural issue in addition to a political one.

Indeed, it should be a ready-reference for any PR and marketing professional to pull out whenever issues of this kind come up for discussion.

In this environment, my guess is that it would be referenced quite frequently.

Sears Holdings’ bankruptcy filing: the worst-kept secret in the business world.

Reports that Sears Holdings is filing for Chapter 11 bankruptcy have to be the least surprising news of the week.

Paralleling that announcement came the one about the pending closure of nearly 200 stores by the end of the year.

Who’s surprised? It seems as though this retail dinosaur has been on its last legs for years now.  Even when Sears merged with Kmart in the early 2000s, I recall one of my business colleagues remarking that it was “one dog of a company buying another dog of a company to create this really big bowser enterprise.”

“Most. Useless. Merger. Ever.” was how another person I know described it.

Indeed, it seems as though Sears’ biggest contributor to its financial bottom-line in recent years has been its real estate holdings. Sales of Sears commercial properties have contributed mightily to the company’s balance sheet, while retail sales seem almost like an afterthought.

Even as the National Retail Federation is forecasting holiday sales to rise nearly 4% this year – a hefty jump in comparative terms – Sears was destined to share in precious little of it.

According to MediaPost columnist Laurie Sullivan, everyone should have seen the handwriting on the wall when Adthena released its latest online retail activity reporting.  Tellingly, Amazon and Walmart collectively account for nearly 45% of all online retail clicks.

“Old school” department store firms such as Macys and Kohls do significantly worse, typically taking between 3% and 4% of clicks apiece.

But Sears has been a poor performer compared even to the weak showing of traditional department stores; Adthena reports that Sears accounts for just 0.7% of online retail clicks.

To add the final nail in the coffin, anyone looking closely at what’s been happening with Sears’ print and online display advertising expenditures can see that the company was busily rearranging the deck chairs on the Titanic. Media measurement firm Statista reports that Sears/Kmart decreased the dollar amount it spent on such advertising from ~$1.5 billion in 2013 to just ~$415 million in 2017.  That’s more than a 70% drop during a period of economic recovery.

When the numbers between market growth and advertising decline cross like that, you know exactly where things are headed …

Will Sears or Kmart even be brand names in another decade? It’s difficult to see how.

Print vs. online newspaper readership behaviors don’t look promising at all for media properties.

New York Times CEO Mark Thompson

From the New York Times on down, leading publishers are telling us that print versions of their newspapers will eventually disappear.  The only question is how soon it will happen.

But what are the implications of this pending shift to all-digital? Will online news consumers be as strongly engaged as they have been with the print newspaper product?

We now have a window into answering this question by looking at the experience of The Independent, a UK national daily paper.  Two years ago, The Independent made the shift to become an online-only publication.

And the result was … no measurable increase traffic shifting from offline to online. That finding comes from a before/after analysis of the publication’s performance as conducted by European communications industry researchers Neil Thurman and Richard Fletcher.

What they learned is that shutting down the print property didn’t drive those news consumers to print-like consumption habits on digital devices.

Instead, these customers became like other digital readers. That is to say, in the words of the researchers, “easily distracted, flitting from link to link, and a little allergic to depth.”

Let’s drill down a little deeper. At the time it ceased publishing a print edition of its newspaper, The Independent had a paid print circulation of approximately 40,000, along with ~58 million monthly unique visits on its digital platform.

That a humongous chasm … but the researchers found that the publication’s relatively small number of print readers were responsible for more than 80% of all time spent consuming all of The Independent’s news content – print and digital.

That is correct: Considering engagement on all of its digital platforms, all of that added up to fewer than 20% of the time collectively spent reading the print publication.

The chart below shows what happened to readership. All of the time The Independent’s print readers spent with the paper seems to have simply disappeared when the company ceased publishing a print version.  It didn’t transition to independent.co.uk.

Even more telling, the researchers found that half of print recipients had read the newspaper “almost every day,” whereas online visitors read a news story in The Independent, on average, a little more than twice per month.

While print readers typically spent from 40 to 50 minutes reading each daily edition of The Independent, online readers spent, on average, just 6 minutes over the entire month.

Here’s the thing: Whereas print newspapers usually have few if any competitors in their immediate space, online there are an unlimited number of competing sites to attract (and distract) the reader – all of them just a mouse-click away.

Even if we discount a measure of exaggeration on the part of respondents in terms of how much time they actually expend on their reading consumption versus what they reported to survey-takers, the print/online dynamics reveal stark differences. As researcher Thurman reports:

“By going online-only, The Independent has decimated the attention it receives. The paper is now a thing more glanced at, it seems, than gorged on.  It has sustainability but less centrality.”

There is one silver-lining of shifting to an all-digital platform, at least in the case of The Independent.  That shift has resulted in increased international reach by the publication.

But The Independent is a national newspaper, unlike most of America’s leading papers, and so that sort of positive aspect can’t be expected to apply very easily to those other media properties.  How many people outside of central Colorado can be expected to read a digital edition of the Denver Post?

The main takeaway from The Independent’s experience is that for any paper choosing to go all-digital, chances are high that the audience isn’t going to follow along – certainly not at the level of loyal, in-depth time once spent with the print product.

Sure, the very real costs of printing and delivery will now be a thing of the past. But a significant – even dramatic – decline in reach, influence and impact will be the new reality for the publishers

Baby, meet bathwater.