Monday, June 20, 2016

Money Matters: Vodacom CEO Shameel Joosub was paid almost R21.8 million in the past financial year




Vodacom CEO Shameel Joosub was paid almost R21.8 million in the past financial year, doubling his remuneration package from the previous year.

This is according to Vodacom's integrated report for the year ended 31 March 2016, released today. Joosub's remuneration package is twice his total of R10.9 million in the previous financial year.

The report shows that for the year ended 31 March 2016, Joosub received almost R14 million in short-term incentives, compared to just R3.7 million in short-term incentives the previous year. His total 2016 package of close to R21.8 million excludes long-term benefits, but includes short-term incentives, a salary of R7.8 million, as well as R3 600 listed as "other".

The "other" category can include mobile phone benefits, resignation/termination benefits as well as allowances for accommodation, medical insurance and education benefits for children.

The CEO's considerable pay jump comes after a strong set of full-year results from Vodacom, which saw group revenue rise 7.5% to R80 billion in the past financial year. Headline earnings per share grew 2.7% to R8.83 per share and group data revenue rose 28.5%.

At the end of March, the Vodacom group had 61.3 million subscribers, with 34.2 million of those customers in South Africa. Vodacom has operations in SA, Tanzania, Mozambique, Lesotho and the DRC.
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What Marketers Can Learn From the Latest Data About Voter Behavior Online



Voters make decisions before they're in the booth—by going online. To understand the influence of digital media and online video in the 2016 elections, Google partnered with two leading political consultants to survey primary voters. Here, they discuss what the results mean for marketers.
Put Google research and insight behind your thinking SUBSCRIBE This election cycle, people are increasingly going online before going to the polls. In the first two months of the year, the average registered voter gearing up for Super Tuesday researched the primary election online 85 times.1 And in just the last year, people have watched over 110M hours of candidate- and issues-related video on YouTube. To learn more about how registered voters educate themselves on the facts, candidates, and issues before the primaries, Google partnered with political consultants Julie Hootkin and Dr. Frank Luntz. As executive vice president at Global Strategy Group (GSG), Julie has been a consultant to members of Congress, governors, and mayors across the United States, and leads her firm's corporate impact practice, which helps businesses navigate the issues of the day. A preeminent pollster, Frank has been featured on major broadcast networks and is the founder of Luntz Global Partners, which consults Fortune 500 companies and political campaigns alike.
Recently, I spoke with Julie and Frank about key findings from this research and the implications for both political and brand marketers. How is voter behavior in this election cycle different from four years ago? Frank: As of this year, people are spending 40% more time online than on TV.3 Think about that. They know that digital platforms, whether desktop or mobile—from news websites to Google Search to YouTube—deliver far more convenience than traditional media. In political campaigns, television is still powerful, but voters believe it provides too much spin, too many half-truths, and too little detail. Digital empowers voters to find the precise information and facts they're seeking. They decide the search terms, the content, the time, the length, and well, everything else. As one Iowa Republican voter in our focus group said, "We're more informed than we've ever been because of the internet."4 We also see this in campaigns for consumer products, financial services, and every other category brand marketers care about. Today's voters are spending more time online, almost two hours for every hour spent watching TV. Julie: We're living in an on-demand world. With just the touch of a button, we can watch a movie, order groceries, and hail a cab. Just as easily, we can visit a candidate's website, watch a campaign video on YouTube, and fact-check a candidate's position on Google. People are "on" 24/7, thanks in large part to their smartphones. For political campaigns, this means today's voters are more connected than ever before. They are spending more time online, almost two hours for every hour spent watching TV,5 and they are increasingly relying on their mobile devices to provide them with answers to their questions in real-time. Almost 60% of elections-related searches are now coming from mobile devices, representing nearly 3X growth since the last presidential election cycle.6 As a result, campaigns—and brands—have an unprecedented number of opportunities to inform, engage, and persuade voters through digital communications. How are voters engaging online vs. with traditional media? Julie: Sometimes it feels like we are trapped in a debate that pits traditional against digital, but the truth of the matter is, it's not a zero-sum game. This goes for both political campaigns and brand marketing: TV is good for some things, and digital is good for others. TV continues to play an important role in introducing candidates to voters, particularly early on in the campaign cycle. But as voters move through the decision-making process and Election Day approaches, digital plays an increasingly important role. Why? We heard from a lot of voters that they don't feel like they get the full story from TV—anyone who's ever written an ad script can tell you, you can only fit about 76 words in a 30-second spot. Voters want more, and they find it online. People will watch content that matters to them—regardless of length. Frank: Voters generally dislike and distrust the over-the-top negative political ads they see on television. Don't get me wrong—they still make an impact. But the 30-second or 60-second spot is not as persuasive and informative as it once was. As an Iowa Democratic voter in our focus group put it, "TV ads don't tell you enough. They're a good starting point, but they're not a good way to make a decision."4 That's why voters turn to search, news sites, candidate sites, and YouTube to find the full, unedited story and unbiased facts for themselves. What kinds of videos resonate with voters—and with viewers in general? Julie: On the internet, viewers give you license to ignore the traditional guidelines that are often associated with campaign content. It's not just the 15-second, the 30-second, or the 60-second ad. It could be a two-minute, a six-minute, or even an eight-minute video. When it comes to content, authenticity is paramount for all types of campaigns, for both brands and candidates. Voters in particular really want to see the behind-the-scenes stuff that ended up on the cutting room floor.
Frank: The most engaged voters are seeking out more information, not less. But campaigns must capture voters' attention within the first 5-10 seconds—or, like viewers do with television advertising for any type of brand—they'll move on. But if it's credible, if it's interesting, people will watch content that matters to them—regardless of length. Any other important takeaways for marketers? Frank: Whether you're pitching a candidate or company, a politician or a product, you have to engage people where they are. Traditional platforms are on the decline, but digital is thriving. That's where consumers spend most of their time. It's where they turn to for facts, reviews, and information. Marketers must meet their consumers where they actually are at those critical campaign moments—not where they hope they'll be. Julie: The marriage of business and politics has given marketers an opportunity to expand their communication channels, connect with consumers on new terrain, and get credit for it. According to our study, 78% of Americans say corporations should take action to address issues facing society, and 88% believe that corporations have the power to influence social change. So brand marketers, get online and join the conversation. Your customers will thank you for it. For more of Julie's and Frank's perspectives, especially about the similarities between brand marketing and political campaigns, check out "Letter From the Guest Editors: Julie Hootkin and Frank Luntz."
Sources
1 Google/Greenberg Strategy, "Presidential Politics — Understanding the Primaries," U.S., base: registered voters in early primary states, n=1,229, Jan.–Mar. 2016.
2 Google Data, U.S., classification as election "candidates" and "issues" was based on public data such as headlines and tags, and may not account for every such video available on YouTube, Apr. 2015–Feb. 2016.
3 eMarketer, "Average Time Spent per Day with Major Media by U.S. Adults, 2013–2018," Apr. 2016.
4 Google/Frank Luntz Global and Global Strategy Group, focus group at Des Moines, Iowa, U.S., base: 27 Democrats and 27 Republicans intending to vote in the Iowa caucus possessing varying comfort levels with technology and a mix of political ideologies, Jan. 2016.
5 Google/Greenberg Strategy, "Presidential Politics — Understanding the Primaries," U.S., base: national sample of likely registered voters, n=3,118, Dec. 2015–Jan. 2016.
6 Google Data, U.S., searches from Politics and Elections category, Jan.–Apr. 2016 vs. 2012.

Tuesday, June 14, 2016

Microsoft agrees to buy LinkedIn for $26.2bn



Microsoft will buy LinkedIn for $26.2 billion in its biggest deal, combining the software giant's business-productivity tools with an online network of 433 million professionals.

For Microsoft, the deal will help it in its mission of trying to keep services like Outlook e-mail relevant enough that customers won't want to leave it for competitors such as Google's Gmail.
For LinkedIn, the opportunity to tap Microsoft's customers, including the 1.2 billion users of its Office suite of business software, could help it jumpstart growth, which has slowed in recent quarters.

"The professionals of the world can benefit in terms of getting their work done," said Microsoft CEO Satya Nadella, who has been trying to reinvigorate the once-lumbering company since taking over in February 2014, in a phone call.

"The Venn diagram is pretty big," he said, meaning the overlap of customers of both companies, although he didn't give a precise number.

He gave an example of a customer walking into a meeting scheduled on a Microsoft Outlook calendar integrated with LinkedIn, receiving notification that one of the people in the meeting went to college with a colleague.

"The future of productivity is around people, identity and data and the relationships between the them," said Matt McIllwain, a portfolio manager at Madrona Ventures. "Microsoft is buying LinkedIn for the opportunity to leverage these capabilities and combine them with Microsoft's strong but complementary assets in those three areas."

The offer of $196 per share represents a premium of 49.5% to LinkedIn's Friday closing price.
LinkedIn's shares soared 48% to $194 in early New York Stock Exchange trading and Microsoft's shares were down 4%.
Reid Hoffman, chairman of LinkedIn's board and the company's controlling shareholder, said the deal has his full support.

"I have always had a great admiration for LinkedIn," Nadella said in a video on Microsoft's Web site. "I have been talking with Reid and Jeff for a while ... I have been thinking about this for a long time."
Jeff Weiner will remain chief executive of LinkedIn, reporting to Nadella. In a phone call, Weiner said LinkedIn would remain its own entity in the way that YouTube is relatively independent from parent Alphabet or Instagram from parent Facebook.

Microsoft plans to speed-up monetisation of LinkedIn by growing individual and organisation subscriptions as well as targeted advertising, it said.

Despite the rich premium paid by Microsoft, LinkedIn is selling for well below its peak of more than $270 per share in 2015, but a weak forecast earlier this year sent its shares tumbling amid slowing online ad revenue. LinkedIn went public in 2011 at $45.

"[LinkedIn] is a great business, even though the company stubbed their toe back in February," said Ivan Feinseth, analyst at Tigress Financial Partners. "It's a premium company and it deserves a premium valuation."

The deal, which won the unanimous support of both boards, is expected to close this year, the companies said.
Microsoft said it would issue new debt to fund its acquisition.

After the deal, which will require approval from regulators in the United States, the EU, Canada and Brazil, LinkedIn will become part of Microsoft's productivity and business processes unit, the companies said.

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Google is world's most valuable brand



Google has overtaken Apple as the most valuable global brand. This is according to a report from Millward Brown and WPP that saw Google's brand grow 32% to take first place on the 2016 BrandZ Top 100 Most Valuable Global Brands list.

Apple's brand worth dropped 8% in the past year, to $228.5 billion, seeing it lose the top spot to Google, which had a brand worth of $229.2 billion. In 2014, Google overtook Apple as the top valued brand on the BrandZ list but in 2015 the rankings reversed again. In 2016, Google has once again reclaimed the top spot.
Microsoft remains in third place with a valuation of $121.8 billion. Facebook rose seven places in the rankings to fifth place as its brand value grew 44% in the past year, to $102.6 billion.

Out of the top 10, five brands were technology companies, two were telecoms providers, and e-commerce giant Amazon shot up seven places to take seventh position. Telecoms providers AT&T and Verizon came in fourth and eighth place respectively.

Visa came in sixth place with a worth $100.8 billion. Fast food chain McDonald's was the ninth most valuable global brand at $88.7 billion. Tech giant IBM rounded up the top 10 with a brand value of $86.2 billion.
Millward Brown's report found Google's creation of holding company Alphabet revealed its growth plans and clarified its priorities, which reassured stockholders and helped boost its value.

"Google signalled a future in new businesses, including healthcare, life sciences and augmented reality. Along with new ventures, Alphabet includes a Google subsidiary that holds its core products, such as Android, Chrome, Gmail, Maps and Search," the report says.
Facebook's brand was also boosted by an increase in mobile advertising sales and the release of its first virtual reality headset from Oculus Rift.

Amazon leads the list's "Top 20 Risers", with its brand value rising 59% over the year compared with an 8% increase for the retail category. Chinese brand Huawei was also one of the fastest risers, gaining 20 places to come in 50th place out of the 100 brands listed.

PayPal rose 23 places to 65th place and Accenture rose 13 places to 38th place. Naspers-owned Tencent remained steady in 11th place with a brand worth of $84.9 billion.

Millward Brown has been conducting the BrandZ report for 11 years. It says over that time, it has surveyed more than three million consumers in over 50 markets, with over 100 000 brands researched and valuated.
The value of the BrandZ top 100 has also increased steadily over the past 11 years, rising 133% between 2006 and 2016, despite fluctuations during and immediately after the global financial crisis.

Top 10 most valuable global brands:

1. Google: $229.2 billion
2. Apple: $228.5 billion
3. Microsoft: $121.8 billion
4. AT&T: $107.4 billion
5. Facebook: $102.6 billion
6. Visa: $100.8 billion
7. Amazon: $99 billion
8. Verizon: $93.2 billion
9. McDonald's: $88.7 billion
10. IBM: $86.2 billion

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FNB invests big in MVNO move



First National Bank (FNB) spent big money and time to get its mobile virtual network operator (MVNO) off the ground.
This is the word from FNB CEO Jacques Celliers, speaking at the bank's innovators media briefing this morning. He noted the bank "paid a fortune" to launch FNB Connect.
Although Celliers would not disclose the exact amount spent to rollout the bank's mobile offering, he said: "This was a big-scale project which included big teams, big infrastructure to build what we have built inside the FNB ecosystem – this cost a lot of money.
"Our competition is not the telecoms industry; our competition remains the other banks. We're not trying to beat the telcos but just add value proposition for our customers," said Celliers about the mobile operator-like product.
FNB will continue to invest in the mobile offering, Celliers added.   
Last year, FNB became the first South African bank to launch a mobile offering available to its customers. Since its launch, the service has attracted more than 200 000 customers, according to the bank.

The service, which was first piloted to include prepaid, contract and top-up offerings, now allows FNB customers with a Connect SIM to access electronic banking platforms, such as online banking, the FNB app, cellphone banking and eWallet without incurring any data charges.
According to FNB, LTE has also been enabled on all Connect SIMs. Customers with LTE devices can access the fast network in Gauteng, Western Cape and KwaZulu-Natal.
Driving innovation
To re-energise and continue on the path of being a disruptive bank in SA, FNB has appointed Yolande Steyn to head up the bank's innovators programme. Steyn previously led FNB's mobile money solution, eWallet.
According to Steyn, there is a lot of rapid disruptive change in the world and the financial industry is constantly challenged to keep up. "Mobile telephony is changing and in turn driving the change we see all around us. The mobile story is driving a lot of the disruption."
She added: "…radical or disruptive innovation needs to have a significant impact on the market and on the economic activity of organisations within that market.
"Radical innovation serves as a guide for us to become and remain top of mind to our customers when it comes to any financial services value propositions or solutions."
Meanwhile, a recent survey conducted by insights agency Columinate named FNB as SA's best digital bank.
Now in its fifth year, the Internet Banking SITEisfaction survey measures customer satisfaction with digital banking services in the country. The report focuses exclusively on Internet and mobile banking, and reveals the behaviours and experiences of online customers.
The study posed questions to some 10 000 Internet banking users, focusing on the trends that shape SA's digital banking industry. This year, Columinate created a new category called ‘best digital bank' and FNB emerged as the winner in the category, scoring 81 out of a possible 100.
Henk Pretorius, chief executive of Columinate, says: "FNB's dominance is clear across all areas of the digital banking experience. FNB delivers a better experience compared to other banks in almost all of the key drivers of satisfaction in online banking. FNB also consistently had the highest feature usage among its customer base."
Tap away
FNB's eWallet service, which is available in five of the seven African countries where the bank operates, is regarded as one of the largest bank-led mobile money solutions on the continent.
The bank says 6.7 million people have received money via eWallets, with R1.4 billion being sent to recipients via the mobile money solution on a monthly basis.
Since launch, R33 billion has been sent to eWallets, according to the banking institution.
Following the rollout of the tap-and-go function at Engen stores last year, FNB says it is working on rolling out the service at various merchant stores this year.
Last June, FNB converted 20% of its credit card customer base to contactless – or near-field communication technology – and introduced new cards with tap-and-go payment functionality.
At the time, FNB said 400 000 credit cards that have the tap-and-go payment functionality are being used in the market.
According to Celliers, so far the bank is impressed with the progress of the tap-and-go capability. "We are chuffed with the progress. We are hoping to have two or three or even 10 of the big local retailers use this service." 
Consumers want it; the merchants have to get on board, stated Celliers.

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