April 19, 2024

Twitter Hacks Force Companies to Confront Security on Social Media

Burger King’s Twitter account had just been hacked. The company’s logo had been replaced by a McDonald’s logo, and rogue announcements began to appear. One was that Burger King had been sold to a competitor; other posts were unprintable.

“Every time this happens, our sales phone lines light up,” said Ryan Holmes, the chief executive of HootSuite, which provides management and security tools for Twitter accounts, including the ability to prevent someone from gaining access to an account. “For big brands, this is a huge liability,” he said, referring to the potential for being hacked.

What happened to Burger King — and, a day later, to Jeep — is every brand manager’s nightmare. While many social media platforms began as a way for ordinary users to share vacation photos and status updates, they have now evolved into major advertising vehicles for brands, which can set up accounts free but have to pay for more sophisticated advertising products.

Burger King and Jeep, owned by Chrysler, are not alone. Other prominent accounts have fallen victim to hacking, including those for NBC News, USA Today, Donald J. Trump, the Westboro Baptist Church and even the “hacktivist” group Anonymous.

Those episodes raised questions about the security of social media passwords and the ease of gaining access to brand-name accounts. Logging on to Twitter is the same process for a company as for a consumer, requiring just a user name and one password.

Twitter, like Facebook, has steadily introduced a number of paid advertising options, raising the stakes for advertisers. Brands that pay to advertise on Twitter are assigned a sales representative to help them manage their accounts, but they are not given any more layers of security than those for a typical user.

Ian Schafer, the founder and chief executive of Deep Focus, a digital advertising company that also fielded a few phone calls from clients concerned about the Burger King attack, argued that Twitter bore some responsibility.

“I think Twitter needs to step up its game in providing better security,” Mr. Schafer said. In a memo to his staff about such attacks, he called on social networks like Facebook, Twitter, Pinterest “and anyone else serious about having brands on their platform” to “invest time in better understanding how brands operate day to day.”

“It’s also time for these platforms to use their influence to shape security standards on the Web,” he wrote.

The risk for Twitter is in offending potential business partners as the company tries to build its advertising dollars, which make up the bulk of its revenue. In 2012, the company grew more than 100 percent, earning $288.3 million in global advertising revenue, according to eMarketer.

On Wednesday, it introduced a product that would allow advertisers to create and manage ads through third parties like HootSuite, Adobe and Salesforce.com. Advertising is estimated to account for more than 90 percent of the company’s revenue.

“This is not something we take lightly,” said Jim Prosser, a Twitter spokesman, in an interview last month. (The company declined to comment on the Burger King hacking, saying it did not discuss specific accounts.) Mr. Prosser said Twitter had manual and automatic controls in place to identify malicious content and fake accounts, but acknowledged that the practice was more art than science.

Mr. Prosser said Twitter had taken an active role in combating the biggest sources of malicious content.

Last year, the company sued those responsible for five of the most-used spamming tools on the site. “With this suit, we’re going straight to the source,” it said in a statement. “We hope the suit acts as a deterrent to other spammers, demonstrating the strength of our commitment to keep them off Twitter.”

But security experts say, and the recent hacks of Burger King, Jeep and other brands have demonstrated, that Twitter could do more.

Article source: http://www.nytimes.com/2013/02/25/technology/twitter-hacks-force-companies-to-confront-security-on-social-media.html?partner=rss&emc=rss

Asset Sales Help Quarterly Profit at Times Company

The New York Times Company reported a big jump in fourth-quarter profit on Thursday, largely because of gains from asset sales.

Net income was $176.9 million, or $1.14 a share, a 200 percent increase from $58.9 million, or 39 cents a share, in the period a year earlier.

The results were aided by a $164.6 million gain on the sale of the company’s stake in Indeed.com, a jobs search engine, and the sale of the About Group, the online resource company, which closed on the first day of the fourth quarter for $300 million. The sale of the About Group resulted in a total gain of $96.7 million, or $61.9 million after taxes.

Income from continuing operations rose to $117 million, compared with $51 million in the period a year earlier.

Total revenue for the quarter rose 5.2 percent, to $575.8 million. Over all, the company’s advertising revenue declined 3.1 percent. Print advertising at the company’s newspapers, which include The New York Times, The Boston Globe and The International Herald Tribune, shrank by 5.6 percent and digital advertising revenue across the company rose by 5.1 percent. Circulation revenue grew 16.1 percent.

For the entire year, the Times Company reported net income of $133 million, or 87 cents a share, compared with a loss of $39.7 million, or 26 cents a share, in the previous year.

Income from continuing operations rose to $159.7 million in 2012 from $51.9 million in 2011, or $1.04 per share up from 34 cents in 2011. Total revenue rose 1.9 percent, to $1.99 billion.

The past year marked the first time that circulation revenue surpassed advertising revenue. Circulation revenue grew by 10.4 percent, to $952.9 million, mainly from the growth in digital subscriptions and the rise in print circulation prices. Advertising for the year declined 5.9 percent, to $898.1 million.

The number of paid subscribers to the Web site, e-reader and other digital editions of The Times and The International Herald Tribune reached about 640,000 at the end of the fourth quarter, a 13 percent increase from the third quarter of 2012. Digital subscriptions to The Boston Globe and BostonGlobe.com also grew, by 8 percent, to about 28,000 subscribers.

“The demonstrated willingness of users here and around the world to pay for the high quality journalism for which The New York Times and the company’s other titles are renowned will be a key building block in the strategy for growth, which we are currently developing and which I will have much more to say about later in the year,” said Mark Thompson, the president and chief executive of the Times Company.

The company expects advertising revenue to remain sluggish in the first quarter of 2013 and total circulation revenue to grow by “mid-single digits.” The company said in its release that it “expects to benefit from its digital subscription initiatives as well as from the print circulation price increase at The New York Times implemented in the first quarter of 2013.” The company also said it expects its first-quarter operating costs to decline.

The results followed several difficult quarters during which the company tried to streamline operations and expand its digital and video presence. In early December, The Times said the newsroom needed to contribute to the company’s cost-cutting efforts and announced it was seeking 30 managers to accept buyout packages. The company also allowed employees represented by the Newspaper Guild to volunteer for buyout packages.

In a memo that Jill Abramson, the executive editor, wrote to the staff last week, she said that she had received enough volunteers that layoffs were kept to a handful. She also announced plans to restructure the masthead. On Wednesday, the paper also announced that it had hired Rebecca Howard from the AOL Huffington Post Media Group to become the new general manager of the video production unit.

Article source: http://www.nytimes.com/2013/02/08/business/asset-sales-help-quarterly-profit-at-times-company.html?partner=rss&emc=rss

Media Decoder Blog: New Year Begins With Flurry of Ad Industry Deals

4:25 p.m. | Updated The new year has barely begun, but it looks as if it may be a busy one for deal-making on Madison Avenue.

Several acquisitions and transactions have already been made this week, on the heels of others last week. The deals are predominantly in the faster-growing specialty areas of the business like shopper marketing, digital advertising and public relations.

Take, for instance, a deal that is to be announced on Wednesday afternoon by the Match Marketing Group, a Toronto agency that specializes in shopper marketing — that is, all the aspects of advertising related to “the path of purchase,” turning consumers to customers at a point of purchase, whether a store or, increasingly, a mobile device.

Match, which is backed by a private equity firm, Beringer Capital, also based in Toronto, is acquiring Marketing Drive, a shopper marketing agency in Norwalk, Conn., with the Weld Media division of Marketing Drive, which has a digital focus.

Match is making the acquisition from the River North Group in Chicago; financial terms are not being disclosed.

The acquisition of Marketing Drive and Weld is the fifth deal in the last 12 months for Match; others included agencies like the Action Marketing Group and Ignite Activation. Like those, Marketing Drive and Weld will be absorbed into Match, which seeks to offer marketers a so-called end-to-end solution – that is, a complete, integrated suite of services in a one-stop-shopping way.

The formation of Match and the deals it is making “came out of talking to our friends, senior clients, C.E.O.s and C.M.O.s,” said Perry Miele, chairman of Match and Beringer, who beefed about how, “when it came to shopper marketing and consumer engagement, they had to deal with five or six agencies that handle analytics, strategy, experiential marketing, events and merchandising.”

According to Michael Harris, president at Marketing Drive, being part of “an end-to-end solution was very attractive to us.”

Mr. Harris will become president of what will be known, for the time being, as Match Marketing Drive. Brett Farren, president and chief executive at Match, said the name would probably later become Match Drive, echoing how the Action Marketing Group became Match Action.

Mr. Harris and Mr. Farren said that all the 160 employees of Marketing Drive and Weld would join Match. Marketing Drive and Weld also have offices in Boston, Chicago and Bentonville, Ark.

Clients of Marketing Drive include Absolut vodka, Dunkin’ Donuts, Exxon Mobil, Philips and Welch’s. Clients of Weld include CVS, Dannon and Mars. Mars is also a client of Match, along with, among others, Adidas, Ford Motor, Progressive, Samsung and Yum Brands.

In another deal involving a digital agency, Mercury Media in Santa Monica, Calif., which specializes in direct response television media, is acquiring iMarketing in Princeton, N.J., which specializes in tasks like search marketing, online planning and buying, social media and mobile marketing. Here, too, financial terms were not disclosed.

Plans call for iMarketing and its 30 employees to be absorbed into Mercury Media, which has 130 employees, and become the Mercury iMarketing unit of Mercury Media.

Keith Kochberg, chief executive at iMarketing, becomes president at Mercury iMarketing, which is to continue to work with iMarketing clients that include eDiets, the Dow Jones Company division of News Corporation and Yahoo.

Here is a look at two additional deals that are being announced on Wednesday, for which financial terms are also not disclosed:

*Capstrat, a public relations and public affairs agency based in Raleigh, N.C., that specializes in areas like energy, healthcare and technology, is being acquired by Ketchum, a public relations and corporate communications agency that is owned by the Omnicom Group.

The deal is meant to beef up Ketchum’s presence in the Southern states, which now includes offices in cities like Atlanta, Dallas and Miami. Capstrat will operate autonomously as part of the Ketchum North American operations and Ken Eudy, chief executive at Capstrat, will remain in that post.

*Gibraltar Associates, a public relations and public affairs agency in Washington, is being acquired by McBee Strategic, also in Washington. Gibraltar, with 22 employees, becomes McBee/Gibraltar, the strategic communications business unit of McBee, which has 42 employees and is known for services to companies and investors like lobbying, research and capital formation.

Clients of Gibraltar include the Dole Food Company, Gilead Sciences and Raytheon. Clients of McBee Strategic include FedEx, Google and Oracle.

Eric Bovim, chief executive at Gibraltar, becomes managing director at McBee/Gibraltar. Thomas J. Pernice, chairman at Gibraltar, becomes senior adviser, working with Steve McBee, president and chief executive at McBee Strategic.

Article source: http://mediadecoder.blogs.nytimes.com/2013/01/09/new-year-begins-with-flurry-of-ad-industry-deals/?partner=rss&emc=rss

Advertising: The Push for Online Privacy

On Friday, the Digital Advertising Alliance, a group of digital advertising trade organizations, will unveil its first ad campaign ever explaining what the icon is and how it helps users control ads they see online. The campaign, one of the largest domestic consumer privacy campaigns to date, comes as advertisers, technology companies and privacy advocates await a final report from the Federal Trade Commission on online privacy.

“We’re on record as publicly committing to the Federal Trade Commission, to members of Congress and to consumers that education is a key component to a lot of the uses of data” online, said Stu Ingis, general counsel for the alliance.

In addition to the commission’s final report, the White House is expected to prepare its own report on digital privacy. Last year, legislators introduced a number of bills in Congress that called for tighter regulation of mobile and digital privacy, as well as more control over children’s online privacy.

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The alliance supports self-regulation of the digital advertising industry. The AdChoices icon-based system, which was introduced in October 2010, allows users who click on the turquoise triangle to opt out of having their behavior tracked online.

The alliance’s Web site receives about 100,000 visits a week, with 90 percent of that traffic coming from users clicking the icon. An average of 15 to 25 percent of the users who visit the site opt out of behavioral advertising each week.

MRM Salt Lake City, part of the McCann World Group, worked free of charge for the alliance to create the campaign, which features digital banner ads, videos and a campaign Web site. One of the videos introduces viewers to the phrase “interest-based advertising,” describing the concept as “Ads intended for you. Based on what you do online.” The video also notes the “promos, offers, coupons, brands and products” that are capable of finding users online.

What it fails to mention, however, is that users can opt out of being the target of personalized ads. A second video tackles that challenge by introducing the AdChoices icon as a stick figure and “an up and coming little star popping up everywhere on the Internet.”

That video goes on to explain that by clicking on the icon users can control and learn more about the information advertisers collect about them. Far from encouraging users to opt out, the ads emphasize how information that advertisers gather actually can improve the quality of the ads users see online.

“Wouldn’t you rather see ads, offers and discounts for that brand?” the narrator asks. “We thought so.”

Digital banner ads feature the headline “Will the right ads find you?” with one version showing a person dressed as a bookstore ad sitting next to a person reading a book.

In 2009, the Interactive Advertising Bureau introduced a similar ad campaign called Privacy Matters that had a decidedly different tone. “Advertising is Creepy” said one ad, which used words like “personally identifiable” information and “data privacy.” The alliance’s campaign takes a new approach. “We wanted this to be positive messaging,” Mr. Ingis said. “It demystifies that there’s nothing bad going on there.”

Lori Feld, the general manager of MRM, said the campaign was meant to emphasize “the positive side” of digital advertising.

“When you’re online it can be a fairly random environment,” Ms. Feld said, referring to users who get ads for dating sites when they are married or mortgage ads when they don’t own a home. “In that scenario we know that everybody loses.”

While the alliance is undertaking the campaign in an attempt to educate consumers, some critics say the banner ads and videos are meant more to fend off possible legislation.

“I don’t think these ad campaigns help Internet users protect their privacy online,” said Marc Rotenberg, executive director of the Electronic Privacy Information Center. “I think they’re made to justify certain business practices.”

Mr. Ingis said he expected that the consumer education would “provide further support for the fact that the self-regulatory framework is making great progress.” And advertisers have been duly warned about the consequences of bad privacy practices.

Nancy Hill, chief executive of the American Association of Advertising Agencies, urged advertisers attending the association’s annual conference last March to participate in the discussion about privacy “because without self-regulation, our creativity will be increasingly threatened.”

In an interview on Wednesday, Ms. Hill said that most consumers “really do understand the quid pro quo” of giving up some behavioral data in exchange for ads that are relevant to their interests.

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Digital ad companies are not alone in feeling pressure to explain their data collection practices. In December, Facebook began a campaign to educate its 800 million users on how it uses advertising to offset the costs of running the company. The message, delivered by a Facebook employee in an online video, was that the ads on the social networking site were meant to be useful and not disruptive.

This week, Google jumped on the consumer education bandwagon with its Good to Know campaign. In a blog post and related print ads, the company explains to users why it stores information like the Web sites they have visited or their Internet addresses.

But consumer awareness campaigns and federal reports may not be enough to stop the debate over privacy control. “The technologies are evolving so quickly, I don’t think the education campaign ends the dialogue,” Mr. Ingis said.

Article source: http://feeds.nytimes.com/click.phdo?i=05bb10f34a5faf5c6884731249908dd9

Media Decoder Blog: Group Says Newspapers Aren’t Dead, They’re Alluring

With more people getting their daily dose of news online through blogs and social media sites, traditional newspapers have gotten short shrift. Print is dead or dying, say media experts, and advertising can’t keep pace.

Ads by the Newspaper Association of America promote  the idea of being informed.Ads by the Newspaper Association of America promote  the idea of being informed.

A new advertising campaign from the Newspaper Association of America seeks to change those views and focus on how reading newspapers — in their digital or print incarnations — actually makes users sexy.

On Monday, the association will announce a consumer marketing campaign that extols the virtues of newspapers, and by extension the news that they provide, as being something that makes people more informed, aware and savvy.

“Smart is the new sexy” reads the tagline for the campaign, which was created by the Martin Agency, part of the Interpublic Group of Companies.

“Be able to find Iran on a map,” says one ad that shows an illustration of a woman reading a print newspaper at a table. “Know what the city council is up to behind closed doors,” it continues.

“There’s no question that newspapers are undergoing a significant transformation, and we wanted to underline some of that,” said Caroline Little, chief executive of the N.A.A. “It’s a campaign for what newspapers represent, whether they are in print, online or mobile.”

What they represent, Ms. Little said, are the ideals of an informed citizenry and democracy.

The campaign also comes at a time when newspaper newsrooms have faced devastating financial and staff cuts. A weak print advertising market and smaller profit on digital advertising have exacerbated the trend. Some newspapers, like The New York Times, are experimenting with pay models while others are finding alternative revenue streams through things like daily deal Web sites.

“We all grew up assuming that the world would have the kind of journalism that newspapers provide,” said Mike Hughes, the president of the Martin Agency. “The fact is the financing model for newspapers has radically changed over the years. We have to be thought of in new ways.”

With an election year on the horizon and a plethora of news events that include the world economy and political and social upheaval in the Middle East, newspapers are more vital than ever, Mr. Hughes said. And therein lies the sexy factor.

“Who wants to go to a cocktail party and not know what’s going on in the world?” Mr. Hughes said. “You’ll be sexier if you’re current with what’s going on in the world.”

Article source: http://feeds.nytimes.com/click.phdo?i=e3cbae40ad4edaad929274e99ae18430

You’re the Boss Blog: Small-Business Owners Respond to Obama Plan

The Agenda

How small-business issues are shaping politics and policy.

President Obama, in his speech Thursday before a joint session of Congress, promised to deploy the power of the federal government to induce small businesses to hire out-of-work Americans. But even some of the small-business owners who watched the speech live in the House chamber at the White House’s invitation said they would not be swayed by the carrots the president proposed to dangle.

David Catalano, who helped found Modea, a digital advertising agency in Blacksburg, Va., and Darlene Miller, who owns Permac Industries, a precision machining company in Burnsville, Minn., both said they planned to hire regardless of what the government does. “We’re going to hire based on our needs,” Ms. Miller said.

In his speech, the president outlined several tax incentives for businesses to prompt investment in general and to reward hiring in particular. The investment incentives, which would take effect in 2012, include cutting the employer payroll tax in half, to 3.1 percent, for the first $5 million in wages. The president would also allow companies to continue taking a full deduction for certain kinds of property purchases immediately, rather than having to amortize the expense over many years.

To reward hiring, the president proposed a full payroll tax holiday on up to $50 million in increased wages over what a company paid in 2011, regardless of whether the growth comes from new hires or salary hikes. The president also proposed a series of tax credits for companies that hire people who have been looking for work for at least six months: up to $4,000 for most employees, but up to $5,600 for veterans, and up to $9,600 for veterans injured during their service. It is unclear when the hiring incentives would expire. According to a White House spokesperson, the amount of the credit would depend on the employee’s wages and the number of hours worked.

Some economists have questioned whether such incentives really induce hiring and investment or simply reward companies for actions they would have taken anyway. But both business owners said that any extra boost would help. “This just eases the burden, to invest in their education, or do more things for them,” said Mr. Catalano. Added Ms. Miller: “It will definitely help small businesses with cash flow.”

While the proposals would benefit all businesses, not merely small ones, the White House said the payroll tax cut was directed toward “the 98 percent of firms that have payroll below” the $5 million limit. Some economists believe that the bonus depreciation, in particular, offers more help to large firms than small ones.

The president’s speech split advocates for small business along predictable lines. The National Federation of Independent Business, the conservative-leaning small-business lobbying group, panned it as “more of the same” in an e-mailed statement that cited “the threat of higher taxes and the thousands of pending federal regulations.”

“Small businesses need the government out of their way,” said Dan Danner, the group’s president and chief executive, in the statement. “Tax breaks are always a welcome help to small businesses, especially in these tough economic times. But those outlined tonight by the president are temporary, and avoid the question of meaningful business tax reform.”

The National Small Business Association, a more centrist organization, was more generous in its praise of the tax cuts. “Offering a payroll tax holiday can help all small employers — not just the profitable ones who benefit from an income tax cut — with some much-needed cash while at the same time making it a bit more affordable to bring on new employees,” said Todd McCracken, the group’s president and chief executive, in a statement. But the N.S.B.A. joined the N.F.I.B. in calling for a lighter regulatory burden for businesses and demanded a far-reaching overhaul of the whole tax code, not just for corporations.

These concerns resonated even with the president’s invited guests. Mr. Catalano said that he was wary of the president’s pledge to pay for the package by asking the “wealthiest Americans and biggest corporations to pay their fair share.” Mr. Catalano said that because his company was organized as an S Corporation, in which profits are passed through to shareholders, he would then face higher taxes. But, he said, “my partner and I have reinvested 100 percent of the profits that our agency has made over the last five years back into the company. If the government takes a bigger share of that from me, it directly impedes my ability to grow the agency.”

Ms. Miller said the president could have done more to address regulatory burdens. “There’s still a lot of work in that area to be done,” she said. “There are a lot of regulations that really just aren’t necessary.”

She also worried about the president’s call for higher taxes. But she added that even with her company’s profits, “I’m not the wealthiest, so it does not affect me directly.”

Article source: http://feeds.nytimes.com/click.phdo?i=24b119cfe852f122e6cbc68cf9511a01