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Newspaper online ads up

Online advertising spending at U.S. newspapers rose 21 percent in the third quarter but failed to offset a print ad spending decline.

While ad spending on newspaper Web sites rose to USD 773 million in the third quarter from the same period a year earlier, print ad spending fell 9 percent to USD 10.1 billion, a Newspaper Association of America study showed.

Online ad spending now accounts for 7.1 percent of total ad spending at newspapers, up from 5.4 percent a year earlier.

The third quarter’s online ad growth marked the 14th consecutive quarter of double-digit percentage growth for newspapers.

Total ad spending at newspapers fell 7.4 percent to USD 10.9 billion in the quarter.

Newspaper companies including New York Times Co, McClatchy Co, and Gannett Co Inc are grappling with profit declines from advertising shortfalls even as they increase Internet investments to offset those loses.

Last week, Gannett’s USA Today said it would cut 45 positions or 8.8 percent of its editorial staff.

But online ads remain a small percentage of overall ad spending at the papers.

The hardest-hit advertising sectors were classified ads, down 17 percent to USD 3.4 billion; retail ads, down 4.9 percent to USD 5.1 billion; and national ads, down 2.5 percent to USD 1.7 billion, in the third quarter.

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AT&T delivers 5,400 BlackBerrys to USPS

The Postal Service hopes that the updated smartphones will help make it more competitive with private shippers.

In one of the largest government mobile-device rollouts ever, AT&T is deploying 5,400 BlackBerry devices, equipped with specialized mobile applications, to United States Postal Service employees. The BlackBerry 8800 and 8820 models will go out to executives, IT staff, and high-level managers in the 800,000-person organization, replacing older devices that the USPS first purchased in 2001.

The 8800 models are being delivered now and the Wi-Fi enabled 8820s will go out in a second-phase deployment later this year, said George Wright, VP and acting CTO at the USPS.

The first is BMC Software’s Remedy help desk application, which allows IT staff to wirelessly respond to and close troubleshooting tickets. The second is an in-house “e-approver” application that enables managers to view and approve purchase orders and the like while on the go. Once the more advanced 8820 models are in the field, the USPS will field trial the delivery over Wi-Fi of brief training videos that are already being pushed out to desktops, Hill said.

The BlackBerrys are going out to 750 USPS executives plus around 5,300 operations managers and IT staff. Total cost of the deployment, including the engraving, will be around USD 200,000, says Wright. The Postal Service will likely eventually push mobile e-mail devices out to additional employees, he added, but “so far we have not identified the rationale.”

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Austrian Post acquires City Express d.o.o. in Serbia

By taking over City Express d.o.o. in Belgrade, Austrian Post has entered the Serbian and Montenegrian parcel market and extended its presence in Central and South-Eastern Europe.

City Express, founded in 2002, will distribute over two million domestic shipments in 2007 with a total turnover of about 10 Mio EUR. This is equals 4 Mio door-to-door parcels and roughly for some 50 pct market share. With a headcount of 368 employees and a fleet of 248 vehicles, City Express is operating 14 sites in Serbia as well as a branch in the Republic of Montenegro.

„The takeover of City Express is following our expansion strategy in South-Eastern Europe. This step will unlock significant potentials for us, accessing the growth markets in Serbia and Montenegro”, says Anton Wais, CEO of Austrian Post.

After acquisition of City Express Austrian Post is represented on the market of parcels with subsidiaries in the following Eastern- and South-Eastern European Countries:

Slowakia: Slovak Parcel Service, and In Time (2002)
Croatia: Overseas (2003)
Hungary: Merland Express und Road Parcel (2007)
Serbia: City Express (2007)

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Pandu Siwi plans hefty stake sale to Emirates Post

Indonesia’s Pandu Siwi Group, one of the largest logistics providers in the archipelago, said it plans to sell 40 percent of its shares to Emirates Post, a post office company owned by the government of the United Arab Emirates.

The process of acquisition, valued at least USD11.1 million according to the Dubai firm, is expected to be wrapped up January.

The Pandu Siwi group has ambitions of becoming the largest logistics company in Southeast Asia in the next five years.

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Missing Postwatch already?

Last week, the House of Lords published a Select Committee report on the UK economic regulators including Postcomm. In Chapter 5 of the report, there is a section entitled “How are consumer interests protected in the regulatory state?”

This looks at models of consumer representation and comparisons are made between the integrated model of the Ofcom Consumer Panel and the Financial Services Consumer Panel – where the consumer body sits in the regulator – and the alternative standalone model of Postwatch and Energywatch – where the consumer body sits outside the regulator.

The report concludes that:

– “Different consumer representation models operate in the regulatory state and all the regulators were vociferous in justifying their particular model. However, we believe that stand alone consumer representation bodies are more transparent and more effective.”

– “The new landscape for consumer representation has been created by the Consumers, Estate Agents and Redress Act 2007 [Consumer Voice]. We are sceptical that the proposed new arrangements will lead to improvements in consumer representation but we recognise that it is too early to judge whether our scepticism is justified. The new arrangements will need careful monitoring and this is a role that might be taken up by a sessional Committee on regulators.”

This is a reference to the fact that the CEAR Act will combine both Postwatch and Energywatch with the National Consumer Council so that, from October 2008, there will not be a sector-specific consumer body for postal services.

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Spring Global Mail welcomes decision to liberate international mail market in Canada

Spring Global Mail welcomes proposed changes by the Canadian Federal Government, which will lead to greater competition and enhanced service in the provision of international mail services for Canada. This follows the Canadian government’s recent decision to introduce legislation that will provide an exception to the Canada Post Corporation Act, whereby letters being mailed to destinations outside of Canada will be explicitly removed from Canada Post’s exclusive privilege. Under the new legislation, Spring Global Mail will be able to continue providing cost-effective, valued added services, meeting the international mailing needs of its Canadian customers.

Commenting on the decision as a matter of fairness, competition and common sense, Lou Laforet, vice president Europe and Americas at Spring Global Mail said: “Spring is extremely pleased that the government has acted in favour of the international mailing industry. We are extremely grateful to all our customers for their loyalty to Spring and their patience during this period of uncertainty. We finally have the certainty that Spring and its customers have been waiting for.”

In reaction to the Government’s new, pending legislation, Canada Post has advised Spring Global Mail that it will not continue to pursue legal proceedings against the company, relating to the its international mail activities in the Canadian market, pending the necessary formal vote in Parliament necessary to complete the legislative process.

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Armadillo Group announces opening of 3 new branches

In the framework of ongoing regional expansion program Armadillo Group (DPD brand) has opened 3 new branches in a region of strategic importance.

New branches were opened in Siberian Region (in Irkutsk, Kemerovo and Surgut). Armadillo Group (DPD brand) branch network covering all Russia’s regions, from North West to the Russian Far East, has now increased to 26 branches. Each branch represents an office and a terminal facility with operations area; equipment and IT network providing connection of all the branches. With the area from 250 to 800 sq. meters the capacity of terminals is from 2,000 to 8,000 parcels a day. All the branches provide shipment processing and distribution solutions across Russia as well as local deliveries within the region.

The new branches offer a complete range of services of Armadillo Group (DPD brand) based on express forwarding: renowned DPD BizPak service, a unique domestic just–in-time delivery solution with unmatched financial guarantees, as well as other parcel and freight delivery services including DPD Avia, DPD Economy, DPD Classic, Full Truck, Rail Container.

The major volumes come from computer and telecom equipment, office appliances, spare parts, promotional materials, cosmetics, clothing and footwear.

‘Opening of new branches in Siberian Region enables Armadillo Group (DPD brand) to further enhance Russia’s coverage of road parcel and freight deliveries with guaranteed delivery times. Our expansion means responding to the needs of our customers who develop their business in new areas and require quality logistics solutions’, commented Leonid Zondberg, Commercial Director of Armadillo Group.

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