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(Mis)Uses of Technology

(Mis)Uses of Technology

by Mike Masnick


Filed Under:
mobile ads, pull, push, spam

Companies:
clear channel



Mobile Advertisers Can't Resist Thinking That A Single Call To Action Means Universal Rights To Bug People

from the pull,-not-push dept

For years, we've been trying to convince advertisers that mobile advertising needs to be about "pull" rather than "push" advertising. Since mobile users are "on the go" and often busy with something else, interrupting them with their mobile phone is going to be seen as a tremendous intrusion, often pissing off most recipients. Instead, the focus should be on setting up situations where the ads are effectively "called" by the user who is specifically looking for something (think Google ads, rather than pop up ads). For example, having a billboard that offers someone something if they punch in a code on their phone. Or, perhaps, making it easy for someone to proactively check if there are discounts at nearby coffee shops -- rather than simply bombarding them with offers as they pass-by coffee shops.

Unfortunately, it looks like some advertisers are only getting half of the message. While they understand the importance of there being some kind of "call to action" by the user to initiate any kind of advertising relationship, many seem to think that after that initial call to action, users are more open to receiving ongoing communications. That's unlikely to be true -- as many users may want a particular type of communication at one time, but will not be in the mood to get something similar the next day when they're in a rush to get somewhere. The companies pay lip service to not bothering people by saying things like: "If there is no response after several times, the phone will stop sending alerts." However, by that point, you've already annoyed the person "several times" after they only opted-in to hear what you had to say once. It's hard to see how that's beneficial at all.

8 Comments | Leave a Comment..

 
Deals

Deals

by Joseph Weisenthal


Filed Under:
credit, private equity

Companies:
clear channel



Clear Channel Facing Multiple Hurdles In Attempt To Go Private

from the the-sale-before-the-sale dept

Last November, radio broadcaster Clear Channel announced that it would be taken private by a group of private equity firms for $19 billion. But the deal is just one of many such deals whose status is currently in doubt, as financing and credit have significantly dried up of late. As part of the preconditions for the sale, Clear Channel agreed to dump nearly 400 local stations across the country. Now, however, that's proving to be a significant snag, as buyers of the stations are now going back on their agreements (via Deal Journal), due to the same financing issues affecting everyone else. Assuming that agreements can't be worked out, the company may be forced to slash the prices on these stations or risk imperiling its own plan to go private.

4 Comments | Leave a Comment..

 
Deals

Deals

by Joseph Weisenthal


Filed Under:
m&a, private equity

Companies:
alltel, clear channel



Market Not Buying Recent Buyout Deals

from the about-that-offer... dept

It's easy to forget that just because a buyout has been announced, there's no guarantee that it will actually go through. Pending private equity deals are particularly vulnerable at the moment, because they're all debt financed. One good way to get a sense of whether the market is expecting a given to go through is to look at the current market price of a stock compared to the buyout price. The wider the gap, the less likely it'll actually happen. These gaps are getting pretty wide on a number of deals, including a few discussed here. The purchase of Clear Channel was announced last November, but today the stock trades at 37% below the offering price. Alltel is in a similar boat, trading 22% below the buyout price, which was just announced in May. It's still possible, of course, that both of these deals will get done. But if current conditions persist, we may see them hang around in their current form for a bit longer.

4 Comments | Leave a Comment..

 
News You Could Do Without

News You Could Do Without

by Carlo Longino


Filed Under:
broadcasting, fcc, mergers, radio

Companies:
clear channel, sirius, xm



Clear Channel Says XM-Sirius Merger's Fine -- As Long As It Can Buy More Terrestrial Stations

from the the-more-things-change... dept

Matthew Lasar writes in to let us know that terrestrial radio behemoth Clear Channel says that if the XM/Sirius merger is allowed to proceed, restrictions on terrestrial radio station ownership should be lifted. Once again, by tying the two issues together, Clear Channel is making it clear that terrestrial broadcasters do compete with the satellite radio companies. It's hardly surprising to see Clear Channel take this stance, though, as it's consistently lobbied for the ownership limits (which state that a company can own no more than eight stations per market) to be lifted. The details from a Clear Channel exec's letter to the FCC are slightly amusing. The guy says "With poorer content, local radio stations will lose listeners, and, consequently, advertisers, not because local radio would face a better competitor after the merger, but because it would be able to offer only an inferior product to listeners and advertisers." His comments came in the context of saying that a merged XM-Sirius would lock up all kinds of content through exclusive deals, making it unavailable to terrestrial stations. But taken more broadly, you have to say that the guy knows what he's talking about, given Clear Channel's experience in churning out inferior products with little success.

10 Comments | Leave a Comment..

 
Ramblings

Ramblings

by Carlo Longino


Companies:
clear channel



Clear Channel Shows RIAA A Non-Infringing Use Of File-Sharing Networks

from the maybe-they'll-destroy-each-other dept

A few years back, while the RIAA was trying to shut down file-sharing networks, it regularly claimed that there were no non-infringing uses of them -- though that claim was undermined by the fact that the music industry regularly uses data from such networks for market research purposes. Perhaps because of this, the RIAA's quieted down a bit on this front, and shifted its legal strategy to sue its customers instead. Now, in a move that will probably raise the ire of the RIAA, a unit of radio giant Clear Channel is now selling file-sharing data to radio stations to help them shape their playlists. Clear Channel's Premiere Radio Networks Mediabase unit is marketing the data from BigChampagne, the company that's been tracking file-sharing for some time. The RIAA, despite its general distaste for file-sharing, seems to have been largely content to let BigChampagne operate quietly and make a business on the back of the P2P networks the group has tried to shut down; it's not clear if Clear Channel getting involved will change that. What's interesting to note, though, is that Clear Channel and the RIAA might be heading for a collision course, should this development rub it the wrong way. While the two camps are seen by many people to share an anti-consumer ideology, the two are increasingly at odds as their financial concerns butt heads. First was Clear Channel's unhappiness with new webcasting royalty rates, then the RIAA's demand that radio stations pay royalties for promoting its members' music. Could profiting from a non-infringing use of P2P networks represent further escalation between the two?

14 Comments | Leave a Comment..

 
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