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NewsInc • May 9, 2005 • internet advertising revenue forecasts, Hollinger International Inc. settles suit against directors for illegal payments, Philadelphia Daily News starts podcasting
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* Internet ad predictions revised upward: The on-line commerce analysis firm eMarketer Inc. said last week that it expects that on-line advertising revenue will rise almost 34 percent in 2005, to about $13 billion. Earlier it had predicted that on-line ad revenue growth would go up 21 percent. The organization's 2005 forecast predicts that advertising on search engines will increase 40 percent, year-over-year, to $5.4 billion. "The reported results from Yahoo and Google showed that I was being a little too conservative about the Web search advertising those companies have popularized," said David Hallerman, a senior analyst with the New York City-based eMarketer. In addition, it expects classifieds will represent 17 percent of 2005 on-line ad spending, coming in at about $2.2 billion.

* Hollinger directors settle suit: Without admitting any wrongdoing, liability or admission of guilt, a group of current and former directors of Hollinger International Inc., said last week that they had agreed to a $50-million settlement with shareholders represented by Cardinal Value Equity Partners LP. The Chicago-based Hollinger, publisher of the Chicago Sun-Times, has been embroiled in lawsuits and boardroom intrigue for almost 18 months, since an independent committee of directors determined that Lord Conrad Black and other executives had taken at least $32 million in payments not authorized by the board. Current and former directors involved in the settlement include former Secretary of State Henry Kissinger, former Illinois Governor James Thompson, former Democratic National Committee Chairman Robert Strauss and former Archer-Midland-Daniels Co. Chairman and Chief Executive Dwayne Andreas. The settlement will be paid by executive and organizational liability insurance.

* Philadelphia paper promotes podcasting: The Philadelphia Daily News released on Friday its first "podcast" -- a radio show transmitted on the Web. Called Phillyfeed.com, the weekly series of programs will feature news, on-the-street interviews, original music, sports talk and other original material. "This is stuff we could never print in the paper," said Frank Burgos, editorial page editor of the Daily News. Called podcasts because many listen to them on Apple's popular portable digital music player, the iPod, it is estimated that about 22 percent of adult Americans have some sort of hand-held music device and that about one-third of those have actually downloaded a podcast. Friday's show -- which was identified as "nectar for your ears" -- was sponsored by a local computer store that sells iPods.

* No. One reason people buy a new car: It's not a mechanical problem that motivates them; it's not that there's a new driver in the family; it's not because of low interest rates or low price. No, the primary reason people buy new cars is because -- they just want a new car. That's the result of a propriety consumer survey commissioned by Vertis Inc., the Baltimore, Md.-based supplier of direct mail and pre-prints. "The large number of adults looking to purchase a new car gives marketers an opportunity to communicate with their consumers when it's timely and relevant," said Janice Mayo, Vertis' senior vice president for marketing. The "just want a new car" category was selected by 36 percent of those surveys, far and away the largest pick. Other excuses -- er, reasons -- included "need a vehicle for work," 11 percent; "current auto has mechanical problems," eight percent; both "current lease is expiring" and "another driver in the family," four percent; "can afford a better vehicle," three percent, and "prices are lower now," two percent.


COPYRIGHT 2005 The Cole Group Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


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