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News on Wednesday, December 1, 2010

 TODAY'S LEADING HEADLINES . . .

 

 

  • CONSUMER PRIVACY:  FTC Issues New Report on Consumer Privacy
  • NET NEUTRALITY:  FCC Chairman to Propose Plan for Net Neutrality
  • ACQUISITIONS:  Google Gambit for Groupon Raises Concerns
  • REGULATION:  Europe Opens Antitrust Inquiry Into Google
  • ADVERTISING:  Congress is Moving Against Loud TV Ads
  • HOLIDAY:  Foot Traffic Rises, Spending Flat During First Holiday Weekend
  • RETAIL:  Strong November Sales Results Expected
  • SOCIAL MEDIA:  Black Friday, Cyber Monday Buzz Translates to Sales
  • POSTAL:  Marketers Hope New Legislators Tackle USPS
  • E-COMMERCE:  A Hot Start to the Online Holiday Season
  • M COMMERCE:  Mobile Barcode Scanning Tripled on Black Friday
  • MOBILE:  Holiday Boost for Smartphones, App Downloads

 





FTC ISSUES NEW REPORT ON CONSUMER PRIVACY. The Federal Trade Commission today issued a preliminary staff report that it says proposes a framework to balance the privacy interests of consumers with innovation that relies on consumer information to develop beneficial new products and services. The proposed report suggests implementation of a “Do Not Track” mechanism -- likely a persistent setting on consumers’ browsers -- so consumers can choose whether to allow the collection of data regarding their online searching and browsing activities. The report states that industry efforts to address privacy through self-regulation “have been too slow, and up to now have failed to provide adequate and meaningful protection.” The framework outlined in the report is designed to reduce the burdens on consumers and businesses, according to the FTC.Full story...
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National Publications


THE NEW YORK TIMES

GOOGLE GAMBIT FOR GROUPON RAISES CONCERNS. Google's $6 billion bid for Groupon, an online coupon start-up, is an aggressive move by the company to dominate local online advertising and help with its long-sought move into social networking. Google has offered Groupon $5.3 billion, with the promise of $700 million in performance bonuses for management, according to a person knowledgeable about the matter who spoke on the condition of anonymity. Several people close to the deal said Groupon, which is based in Chicago, was expected to approve the acquisition and an agreement could be signed as early as this week. The deal has worried Google's investors because of the high price and also because of doubts about how effective the company is in generating sales for merchants. On Tuesday, some Google investors wondered if the company was paying too steep a price. Shares in Google fell 4.5%, to $555.71. Full story...
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EUROPE OPENS ANTITRUST INQUIRY INTO GOOGLE. Europe opened a formal antitrust investigation on Tuesday into accusations that Google had abused its dominance in online search, exposing the company's zealously guarded technology to unwelcome scrutiny. The investigation by the European Commission follows complaints from smaller Web businesses, which claim that Google downgraded their sites in its search results to weaken potential competitors for advertising. The commission said it would also look into whether Google might have given its Web services "preferential placement" in search results. Google's dominance on the Internet has been a sore point in Europe, where it controls more than 80% of the online search market, compared with about 66% in the US, according to comScore, a research firm. Google already faces antitrust inquiries, as well as investigations of its privacy and copyright protection policies, in several European countries.
Full story...
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THE WASHINGTON POST

SENATE APPROVES BILL TO REQUIRE FOOD MAKERS TO FIND WAYS TO PREVENT CONTAMINATION. In what would be the biggest overhaul of the nation's food safety laws in seven decades, the Senate on Tuesday approved a raft of regulations that would require food manufacturers and farmers to use scientific techniques to prevent contaminated food - a shift aimed at stopping the waves of foodborne illnesses that have shaken consumer confidence in the safety of the food supply. The vote of 73 to 25 cleared the way for the legislation to be signed into law in the coming weeks, delivering a revamped safety system that would confer vast new authority on the Food and Drug Administration, accelerate the government's response to outbreaks and set the first safety standards for imported food. Sen. Jon Tester (D-MT), who is a farmer, added an amendment approved by the Senate that would exempt small farmers and those who sell directly to consumers at markets and farm stands. Full story...

FCC CHAIRMAN TO PROPOSE PLAN FOR NET NEUTRALITY. The chairman of the Federal Communications Commission plans to announce Wednesday a controversial proposal that would prohibit Internet providers from favoring or discriminating against any traffic that goes over their networks. He would do so, however, without resorting to the more drastic step of changing the way the FCC regulates broadband providers, a move that would have more clearly asserted the government's authority over Internet access. In a statement provided to reporters in advance of Wednesday's announcement, FCC Chairman Julius Genachowski said he thinks he has "a sound legal basis" to pursue so-called net-neutrality rules that would prevent companies such as Verizon, Comcast, and AT&T from blocking or serving up some websites faster and at better quality than others. Telecom lawyers and public interest groups have argued that without redefining its role over Internet service providers, the FCC's ability to carry out broadband rules is weakened. That suggests that the proposal Genachowski plans to announce Wednesday could still wind up being challenged in courts. Full story...
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THE WALL STREET JOURNAL

CONGRESS IS MOVING AGAINST LOUD TV ADS. Congress may be just days away from turning down the volume on ear-splitting TV. The Commercial Advertising Loudness Mitigation, or CALM, Act follows rules set last year by a United Nations body in Switzerland on how to measure and clip broadcast volumes. The US bill, inspired by decades of consumer complaints, should finally ban TV ads that blare louder than the programs they interrupt. California Democratic Rep. Anna Eshoo, who sponsored the bill, says it is the most popular she has pushed in her 18 years in Congress. "If I'd saved 50 million children from some malady, people would not have the interest that they have in this," she says. Full story...
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GOOGLE SET TO LAUNCH E-BOOK VENTURE. Google is in the final stages of launching its long-awaited e-book retailing venture, Google Editions, a move that could shake up the way digital books are sold. The long-delayed venture -- Google executives had said they hoped to launch this summer -- recently has cleared several technical and legal hurdles, people close to the company say. It is set to debut in the US by the end of the year and internationally in the first quarter of next year, said Scott Dougall, a Google product management director. In recent weeks, independent booksellers, which are expected to play a big role in Google Editions, began receiving contracts from their trade group. Several publishers said they were exchanging files with Google -- a sign that it is close to launch, publishers say.
Full story...


CHICAGO TRIBUNE

FOOT TRAFFIC RISES, SPENDING FLAT DURING FIRST HOLIDAY WEEKEND: SHOPPERTRAK. Foot traffic at US malls and retail outlets rose 2.8% for the three days following Thanksgiving, compared with the same period last year, according to research firm ShopperTrak. Retail sales remained unchanged from the same period a year ago at $20.49 billion. The figures, which give an initial read on the critical holiday sales season, suggest that consumers are slowly coming back to life, said Bill Martin, founder of ShopperTrak. "The holiday is going to look very much like the rest of the year has looked," Martin said. "That's a pretty good message of stability and controlled growth in the economy and of a cautious and deliberate consumer." Full story...
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STRONG NOVEMBER SALES RESULTS EXPECTED. The first sweeping look at holiday 2010 comes Thursday, when national chain stores report same-store sales for November. Retail sales at stores open at least one year, a key retail metric, are expected to rise from 2% to 4% compared with the year-earlier period, according to retail forecasters. Solid gains likely would reflect Black Friday promotions that extended through the entire month of November, which is now called Black November. The glow from a record-setting Black Friday weekend has most industry watchers feeling pretty good. But retailers have been down this path before. Typically, shoppers retreat for the most part until the weekend before Christmas.
Full story...
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LOS ANGELES TIMES

BRANSON'S IPAD-ONLY MAGAZINE NOW AVAILABLE IN APPLE'S APP STORE. Project magazine, Richard Branson's anticipated iPad-only publication, arrived in Apple's App Store yesterday. Branson's company, Virgin Group, described Project in a statement as "the first global magazine app for creative people about creative people." In its premier issue, Project incorporates many of the same slick features seen in iPad versions of Wired and Sports Illustrated -- such as video and audio embedded into the articles, interactive graphics that change images at a touch command, and of course, interactive advertisements. Links to websites of people, companies and products mentioned in articles are plentiful as well. One unique feature: The cover of Project's first issue is actually a video that turns into a still image with links to the magazine's articles. Full story...


DAILY CALLER

CHAFFETZ CALLS PMG'S RETIREMENT PACKAGE 'RIDICULOUS.' Rep. Jason Chaffetz called the $5.5 million retirement package for outgoing Postmaster General John Potter absurd and unfair in the wake of the US Postal Service's announcement that it had lost $8.5 billion this year. "That was ridiculous," Chaffetz said in a phone interview with The Daily Caller. "It doesn't seem fair to anybody." The congressman from Utah is the ranking Republican member on the Subcommittee on Federal Workforce, Postal Service, and District of Columbia. He has been working with California Rep. Darrell Issa, the ranking Republican member of the Oversight Committee, on "introducing a comprehensive postal reform bill," he said. Chaffetz called the USPS's accounting of retirement funds "part of the reason that they're so upside down financially." He also cited USPS workers' compensation as another issue. Full story...


INTERNATIONAL BUSINESS TIMES

GOOGLE TO BUY DIRECT MARKETING SKILLS RATHER THAN TECHNOLOGY OF GROUPON. Google's proposed acquisition of coupon site Groupon will bring a troop of sales people versed in the art of direct marketing from Groupon rather any specific technology. Google's own attempts at direct marketing, like its Nexus One Android phone formula, have flopped while Apple has scored over Google in marketing through its Apple Stores. Also, Google is eyeing Groupon as it currently leads the collective-buying space. Google avails an established merchant-relationship as it is key to winning in this segment. Not to mention it also gets a business with an established revenue model reported to be at $50 million every month. Thus, unlike its strategy whereby Google devises a product and then looks for a fitting revenue model, Groupon offers a set revenue model. Full story...


FEDERAL TRADE COMMISSION

FTC SETTLES WITH COMPANY THAT FAILED TO TELL PARENTS THAT CHILDREN'S INFORMATION WOULD BE DISCLOSED TO MARKETERS. EchoMetrix has settled Federal Trade Commission charges that it failed to adequately inform parents using its Web monitoring software that information collected about their children would be disclosed to third-party marketers. EchoMetrix sells its Sentry software to parents to allow them to monitor their children's online activities. According to the FTC, EchoMetrix also advertised Pulse, a web-based market research software program that it claimed would allow marketers to see "unbiased, unfiltered, anonymous" content from social media websites, blogs, forums, chats and message boards. One source of content available to Pulse users, the FTC alleged, was portions of the online activity of children recorded by the Sentry software. EchoMetrix has agreed not to use or share the information it obtained through its Sentry program -- or any similar program -- for any purpose other than allowing a registered user to access his or her account. The settlement order also requires the company to destroy the information it had transferred from the Sentry program to its Pulse database of marketing information. Full story...

SEN. KERRY PROPOSES LEGISLATION TO PROTECT CONSUMER PRIVACY. In a rapid response to the FTC's release today of its report on consumer privacy, Sen. John Kerry (D-MA) issued a statement saying the report should be "a wakeup call" for every Internet user in the country. "The report confirms that many companies -- both online and offline -- don’t do enough to protect consumer privacy," Kerry states. "Today’s technology makes it easy for companies to obtain, collect, store, and transfer unprecedented amounts of information, but industry self regulation has proven inadequate to protect consumers," he notes. "During the process of drafting legislation, I’ve concluded that consumers should have three nonnegotiable rights," Kerry continues. "First, all firms must put procedures in place to secure personally identifiable information. Second, consumers have a right to know in clear and concise terms what [information] firms intend to collect, why, and how it will be used. Third, consumers should be given a simple mechanism for opting out of the process." Full story...

 

 


 

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TRADE JOURNALS


ADVERTISING AGE

BLACK FRIDAY, CYBER MONDAY BUZZ TRANSLATES TO SALES. According to Infegy, a social-media monitoring firm, buzz surrounding Cyber Monday this year was nearly 2.5 times what it was a year ago, while Black Friday buzz was slightly higher. The buzz appears to be translating into increased sales and traffic, according to early data. The National Retail Federation said that 212 million shoppers visited stores and websites during Black Friday weekend, up from 195 million last year. Amazon was the most talked-about retailer this Black Friday and Cyber Monday, according to Infegy, which said the online giant ranked just fourth in buzz a year ago. The retailer began billing Black Friday deals weeks ago and kept up a steady stream of Facebook and Twitter updates throughout the Thanksgiving holiday. Some two dozen updates @amazondeals on Thanksgiving Day whetted consumers' appetites, while nearly 50 updates were posted on Black Friday. Target, Best Buy, Toys R Us, and Walmart rounded out the top five buzzed-about brands. Target and Best Buy switched places this year, with Target snatching the No. 2 slot. Full story...
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BtoB MARKETING

E-READER OWNERSHIP EXPLODES. About 5.9 million US adults own an e-reader, according to data collected between March and October of this year and released Monday in the "GfK MRI Survey of the American Consumer." Just 2.1 million US adults owned e-readers in the same period last year, according to GfK MRI data. GfK MRI data also indicated that almost three-quarters (74.9%) of e-reader owners interviewed in the 12 months ended Oct. 31 had read a book on their device in the previous six months. Just 17.6% had read a newspaper and 15.3% had read a magazine on their devices in the same time frame. Full story...


DIRECT

WILL CARPER HELP SAVE THE USPS? Earlier this fall, Sen. Tom Carper (D-DE) introduced the Postal Operations Sustainment and Transformation (POST) Act, which addresses the current budget issues plaguing the USPS by implementing a series of reforms including: easing postal employee pension and retiree health costs, addressing postal employee wages and benefits, allowing partnerships with state and local governments as well as giving the Postal Service more leeway to close underutilized post offices, offer certain non-postal items, and eliminate Saturday delivery. Carper, chairman of the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security has scheduled a hearing titled, Finding Solutions to the Challenges Facing the US Postal Service, for Thursday, Dec. 2, at 10:00 am. The hearing will examine postal management's plans to address ongoing budget issues, and discuss the provisions in Carper's comprehensive postal reform legislation. Full story...


DIRECT MARKETING NEWS

MARKETERS HOPE NEW LEGISLATORS TACKLE USPS. Although many direct marketers opposed the Postal Service's efforts to raise 2011 rates by a percentage beyond the inflation rate, most are supporting the USPS' push to restructure its employees' and retirees' benefits payment schedule. A range of industry groups, from the Direct Marketing Association to the Affordable Mail Alliance are supporting reforming the payment system. Sen. Thomas Carper (D-DE) also included a payment restructurng measure in the postal reform bill he authored this year. "There is going to be a thoughtful discussion about the overpayment to the postal pensions and the amount of payments that have to go to fund retiree health benefits," said Jerry Cerasale, SVP of government affairs at the Direct Marketing Association. "This is one area that everyone is behind." Full story...
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FACEBOOK MESSAGING REVAMP PROMPTS STRATEGY REVIEW. Email marketers don't expect Facebook's revamped messaging system to replace traditional email service, but they are watching the platform's rollout to see how they can use it to interact with consumers. "I agree with other marketers who've looked at this as Facebook's play to capture young consumers who haven't quite settled into using an email client for personal or professional messages," said Marc Haseltine, manager of email marketing at the National Geographic Society. "Over the years, older users have developed a comfort level with their email client, so it will require some game-changing functionality in the Facebook product to get the switch soon."
Full story...

LOCALIZED COUPON WEBSITES GAIN GROUND WITH CONSUMERS. Consumers are rushing to group coupon services like Groupon and LivingSocial, spawning imitation platforms and coupon aggregators. The popularity of such services is also prompting traditional coupon distributers, such as Valpak, to launch their own local daily deal programs. These deal services are dependent on consumers showing up in significant numbers. Group buying sites guarantee merchandising partners a certain number of coupon purchases to provide discounts of more than 50%, said Julie Mossler, consumer marketing manager at Groupon. Full story...

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DIRECT MARKETING ASSOCIATION

BECOME A DMA COMPLIANCE OFFICER IN ONE EASY STEP.  Who is responsible for ethics/compliance and environmental affairs in your organization? The DMA’s Corporate & Social Responsibility (CSR) department oversees a wide range of ethical and privacy guidelines, compliance initiatives and environmental best practices for the direct marketing community. Regulatory issues are constantly evolving.  We need to communicate with you in a direct and timely fashion regarding cutting edge developments in self-regulation and other critical compliance issues affecting your company and your bottom line.  Please complete the CSR Compliance Network Sign-Up Form by clicking here, designating the appropriate individual(s) at your company to serve as our key contact point(s) for ethics/privacy/compliance and environmental issues. In lieu of completing this form, you may also send an email with the contact information of the appropriate individuals to ethics@the-dma.org.

DMA CAREER CENTER IS LARGEST EMPLOYMENT SITE FOR MULTICHANNEL DIRECT MARKETING PROFESSIONALS.  DMA has relaunched its online job bank as the DMA Career Center.  Already the largest online career center for direct marketing professionals, this online service helps match up employers with highly qualified candidates.  Today, the DMA Career Center hosts more than 500 searchable job postings and nearly 41,000 searchable resumes.  Job seekers (including interns) may post their resumes free of charge.  To access, click here.

 




 

DIGITAL MEDIA

 


CLICKZ

MYSPACE EXTENDS ENTERTAINMENT MAKEOVER WITH MOBILE SITE, APP. MySpace is furthering its transformation from a social networking site to an entertainment hub with a new mobile website and iPhone app. Both platforms will center on music and interaction with artists. The iPhone app will access the user's iTunes library to create a news stream populated by his or her favorite bands. The app will also allow users to upload photos and videos, browse friends' profiles and generally interact with MySpace. The app will be available for iPhone before Christmas, with an Android version set for release in January. Bjorn Laurin, VP and GM of mobile with MySpace, said the company is also currently in talks with Nokia to create a version of the app compatible with its devices. The mobile site, accessible starting yesterday, also provides easy access to users' favorite artists and music, as well as the ability to browse media on MySpace such as pictures and videos. It is compatible with all iPhone, iPod touch, Android, and Palm phones, plus select Nokia and BlackBerry devices. Full story...

AOL CARVES NEW LOCAL AD SALES ROLE. AOL has added a new position to its local ad sales team, and hired former Yodle sales exec Mike DeLuca to fill it. As head of sales, AOL Local, Deluca will help AOL sell across its properties to local and regional advertisers. DeLuca will work with AOL's national ad sales team, headed by Jeff Levick, to sell AOL's local properties including Patch sites, Mapquest, City's Best, and Wow Deal of the Day, as well as geo-targeted ads across AOL and AOL Mail. AOL's Patch sites are among the more recent local content initiatives for the company. So far, sites exist in the northeast and southeast, and states including Missouri, Illinois, Michigan, California, and Washington. The sites offer display ads, coupons, and directory ads featuring video. Full story...


EMARKETER

2011 TRENDS: CONTENT MARKETING IS CRITICAL. Next year, marketers will need to rethink their approach to advertising and marketing and intensify their focus on creating magnetic content that will naturally attract consumers, rather than relying solely on the interruption model of advertising, which consumers are responding to less and less. Think pull vs. push. Magnetic content can include anything created on behalf of a brand -- be it an ad, YouTube video, online game, Facebook page, Twitter promo or mobile app -- that consumers genuinely want to engage with and pass along to others. This content entertains, amuses, informs, serves a function, or satisfies a consumer need. It's welcome instead of annoying or interruptive. Marketers, especially those working in social media, have seen the proven value of branded content, sometimes also referred to as "earned media." Nearly three-quarters of US companies with a social media strategy used such content in their campaigns this year. Full story...

GETTING BULK EMAILS TO PERFORM LIKE TARGETED CAMPAIGNS. The performance of bulk marketing email campaigns compared with various targeted mailings sent to specific recipients for specific reasons tends to be dismal. Transactional emails, for example, which offer the opportunity for personalized messaging, have higher click rates, open rates, and revenues per email than bulk mailings, according to Experian Marketing Services. Welcome messages provide another opportunity for list segmentation and targeted campaigns, and these messages also perform better across a variety of metrics than bulk mailings. June 2010 data from Experian indicates marketers can get such results while still sending campaigns to their entire mailing list. The "Spreading the Word Through Friends-and-Family Emails" report describes how friends-and-family campaigns can bring home results even when sent to a full list. Full story...


INTERNET RETAILER

A HOT START TO THE ONLINE HOLIDAY SEASON. Online sales totals for the Thursday through Monday period are still being tabulated, but Web measurement firm comScore estimates US online sales were $3.5 billion from Monday, Nov. 22 through Sunday, Nov. 28, compared with $3.2 billion during the same period last year, an increase of 9.4%. More than $1.05 billion of those sales occurred on Thanksgiving Day and the day after Thanksgiving, often called Black Friday, up from $913 million last year, or 15%. Thanksgiving Day sales tallied $407 million, up 28% from a year ago, and Black Friday sales tallied $648 million, up 9%. Dollar estimates are still being tallied for Monday's sales, but a report released today by Coremetrics says online sales on Monday, commonly referred to as Cyber Monday, increased 19.9% over the same Monday last year, and 31.1% over Black Friday this year. Full story...
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LINK:  HEIDI COHEN.COM

IS SOCIAL MEDIA TAKING OVER YOUR LIFE? HOW TO MAKE SOCIAL MEDIA PARTICIPATION ROUTINE. Since social media participation can be time-consuming, here's a daily roadmap to help you stay abreast of what's happening time-efficiently. Full story...


MEDIA POST:  MEDIA DAILY NEWS

TECH BRANDS ATTRACTING WOMEN CONSUMERS. NBC Universal new brand power index for its Women at NBCU ad sales efforts shows that major technology companies are strong brands for female media consumers. NBC Universal says seven of the top 25 brands are top of mind for women, including Verizon, AT&T, iPhone, Microsoft, Sprint, Samsung and Droid -- for the month of October. One key technology advertiser, Amazon Kindle, has a campaign that is targeted to women. NBCU says its brand index number is up to 170 from 386. During October, the biggest consumer brands for women -- in order -- were Walmart, Target, Verizon, eBay, Coca-Cola, Ford Motor, AT&T, iPhone, Pepsi, iPod, McDonald's, Honda, Bank of America, Toyota, Comcast, Sprint, Netflix, Sears, Microsoft, Tylenol, Samsung, Amazon, Dodge, Kohl's and Droid. Full story...

LOCAL TV NEWS CAPTURES VIEWERS' LOYALTY. Despite across-the-board declines in TV broadcast ratings, local TV news is more valuable in drawing viewers' advertising attention than other programming. A study by Hearst Television -- which owns TV stations -- and TV researcher Frank N. Magid Associates says local news ranked first, with a 49% score, when viewers were asked what type of program was "a major part of my daily routine." But local news was only a bit better than second-place local TV airing sitcoms, at 47%. Reality shows were at 42%; cable dramas and movies tallied a 37% number; and cable news programming was at 34%. Full story...


MEDIAPOST:  ONLINE MEDIA DAILY

HOLIDAY BOOST FOR SMARTPHONES, APP DOWNLOADS. Signs of improved holiday sales so far this year appear to extend to smartphones and app downloads, according to new data released Tuesday by mobile analytics firm Flurry. The findings show an uptick in new smartphones and downloads during the four-day Thanksgiving weekend based on tracking Flurry does via the thousands of apps that incorporate its analytics software. So the total of new devices detected by Flurry jumped 57% to about 375,000 on Black Friday from the week earlier and 31% on average from Thursday to Sunday. Full story...
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MOBILE MARKETER

MOBILE BARCODE SCANNING TRIPLED ON BLACK FRIDAY. The growing popularity of mobile barcodes has been magnified over the last week with the official start of the holiday shopping season. Scanbuy claims it saw about 30 times more scans this past weekend than it did a year ago. It is also seeing a great mix of UPC and QR code scanning, which shows that both consumers and retailers are really embracing the technology. Bar code scanning via mobile devices has grown tenfold in 2010, per Scanbuy. Thanksgiving Day saw twice the average number of daily scans by consumers. During the Black Friday shopping extravaganza, barcode scans shot up by 20 times the daily average when compared to last year. And overall for the weekend's shopping, it was three times more than a normal weekend, making it more than 30 times last year's ScanLife traffic. Full story...
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ETC., ETC., ETC. . . .

·  Small Farms That Sell Direct to Consumers Get Exemption in Food Safety Bill . . . Full story...

·  Acxiom, GM Sign Agreement for Direct Marketing in Middle East, Africa . . . Full story...

·  SEC Showed Leniency to Bailed-Out Bank of America, Report Says . . . Full story...

·  WikiLeaks Has US Scrambling to Plug Holes . . . Full story...

·  Barney's Hires Former Gucci Exec to Oversee E-Commerce . . . Full story...

·  Live Nation Debuts Ticket-Selling App . . . Full story...




 


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