Microsoft’s $26.2B LinkedIn Deal, Intel’s Instant Articles Launch, Media Ad Spend Returns, Potential Trump Media Platform, Women in Media, TFP’s Infographic Pick of the Week
This week people around the world mourned and paid tribute to the victims of Sunday’s Pulse nightclub attack in Orlando, Fla., the deadliest mass shooting in U.S. history. Today we join others in expressing our deepest sympathies to the families and friends of those lost.
Our weekly roundup of industry news and tips for media pros covers Microsoft’s $26.2 billion deal to purchase LinkedIn, Intel’s debut as the first brand to post content on Facebook Instant Articles, the surprising results of a multiyear study on media ad spending returns, rumors of a Trump media empire, and more.
- Microsoft announced it’s buying LinkedIn for $26.2 billion, the largest acquisition in the software company’s history, according to The Wall Street Journal. Microsoft CEO Satya Nadella explained the deal aims to integrate two of the main tools today’s workers use to get their jobs done: productivity suites such as Office and social networks. The report added that Microsoft also has plans to mesh training videos from Lynda.com, a company LinkedIn bought for $1.5 billion last year, with programs such as Excel. Following the announcement, reaction was mixed, with some saying the companies have good synergies. Others, though, were left scratching their heads. They maintain that while there are some benefits for both companies, the price isn’t justified given Microsoft’s track record on big acquisitions (i.e., Nokia, Skype, Yammer) and the fact that LinkedIn doesn’t make a profit, among other factors.
- In another sign that the line between publishers and marketers is blurring, tech company Intel became the first brand to publish on Facebook Instant Articles under existing rules that allow organizations that regularly produce content to use the tool, Digiday reported. The articles are from iQ, a digital tech publication Intel distributes primarily through paid social, making the move “a natural fit,” the article said. Currently available in 17 languages worldwide, with the U.S. edition alone reaching 1 to 5 million readers per month, iQ was launched in 2012 to shift Intel’s brand recognition from PC company to provider of cloud-based and connected device technology. Unlike traditional publishers, however, its goals aren’t to monetize its content and drive traffic to its own site. Rather, the company is hoping Instant Articles will help it build its readership and promote subscriptions to its email newsletter. If the tool proves successful, leading to higher engagement, it might make sense for Intel to simply increase its Instant Articles volume and decrease its paid social budget, the report noted.
- A multiyear Nielsen Catalina study found—surprisingly—that magazines by far bring higher returns on CPG ad spending than other media, including TV, digital display and video, mobile, and cross-media. Ad Age said the findings are significant given the category that showed the lowest return, digital video, is one of the most popular across the marketing industry. While magazines brought returns of $3.94 per dollar of media spend, digital video stood at only $1.53, the study showed. TV, digital display, mobile, and cross-media fell in the midrange with returns of about $2.50 per dollar of media spending. Chief research officer Leslie Wood noted, however, that pricing is what drove the differences: “Everybody wants to be in digital video. There is very little inventory, so the price is high. It’s the reverse in magazines, which are undervalued in the marketplace.” Magazine results were also boosted by secondary audiences, or pass-along readership, the report said.
- Now here’s something to ponder: a Trump News media empire. A Vanity Fair exclusive reported sources believe Republican candidate Donald Trump—hands down this election cycle’s “breakout media star”—may be considering options to create a new media platform and cable channel. Although a spokesperson denied such discussions, a person close to the matter said Trump is “irked” by the fact that media outlets are making money off all things Trump and he isn’t seeing a dime of it. The source added that the situation has Trump concluding that “he has the business acumen and the ratings for his own network. So now he wants to figure out if he can monetize it.” Noting the idea isn’t entirely out of the question, the report concluded, “Love him or despise him, Trump indisputably has the finger on the pulse of his audience. And this connection could certainly facilitate such a hypothetical mini-media conglomerate.”
On the Technology for Publishing Blog
- Women in Media: Our latest installment looks at young achievers transforming digital operations, honorees of Folio’s Top Women in Media celebration, progress for women entrepreneurs in Silicon Valley, Ellen DeGeneres’ new digital network, a list to put an end to all-male industry event panels, and more.
- TFP Infographic Pick: When it comes to social media, people like to share a good laugh, with funny videos and news stories topping the charts among Facebook’s billion-plus daily users. And inspirational content is up there as well, especially among women. See our Infographic Pick of the Week to learn more!
- Adobe Experience Manager Mobile: In case you missed it, Monica Murphy’s latest tip explains how the Bulk Add Fonts option lets you easily open a drag-and-drop window to add multiple fonts to a project.
Photo: Microsoft/Ars Technica
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Posted by: Monica Sambataro
