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Digital advertising can tell you who's watching and when.
Are firms being conned by fake views?
Also in the programme, two of India's largest telecoms firms.
Vodafone India Idea Cellular are merging to become
We'll cross live to Mumbai for the latest.
And it's a quiet day for corporate and economic news
after the excitement of last week's Fed rate rise.
We'll look at what's moving the numbers and why.
Also in the programme, we'll be visiting the new silk road.
It spans 7,500 miles, but how will businesses capitalise
on the new train link between Asia and Europe?
It's the UN's international day of Happiness.
Norway has come out top in the World Happiness Index overtaking
Let us know What makes you happy in your job?
If people don't know you exist, or what you do, you'll
So how do firms make sure they're spending it in the right place
That's top of the agenda for the industry's big annual
Around the world, across all forms of media it's thought to be
at nearly half a trillion dollars a year.
But where companies chose to spend their ad dollars is changing.
About 38% went on traditional TV adverts last year with 36%
This year online ads are set to become the biggest slice
But the platforms which host the ads like Google and Facebook
are grappling with a big rise in advertising fraud.
This comes in the form of bots and software that tricks websites
into thinking more people have actually seen an ad which means
And this problem is growing, and some of the leading players
in the industry are now warning that 20 percent of all digital ad
spending is in danger of being wasted on fraud.
With me is Our Technology Correspondent Rory Cellan Jones.
Rory, this is something you've talked to some of the top bosses
about, it's a big deal for the advertising industry isn't it? It's
a crisis really. I think it's a subject that's dominating chat at
all sorts of advertising meetings and conferences. Don't forget, when
online advertising came along, it had huge promise, you would be able
to target people precisely, you would know more about who was seeing
your ad, then you would be able to measure the performance effectively.
Both those things have been brought massively into question by the sheer
extent of ad fraud. A survey predicted that out of the $80
billion spent worldwide on digital advertising, over $16 billion would
be completely wasted and go in fraud. They are getting increasingly
desperate about how to tackle it and they are getting very angry with the
likes of Google and Facebook. So what is likely to happen? I
you can bolt on to your ads to you can bolt on to your ads to
reduce this somehow if you are a customer wanting to advertise on
Google but actually Google and Facebook are not keen on that?
There's pre-big verification software being touted by some
agencies as being very effective in reducing fraud to virtually zilch.
They are saying make sure that you are actually getting real traffic
before you place your ads, that these aren't going to be subject to
phoney views, your ads will be viewed by people not computers. But
they're saying that Google and Facebook aren't keen on this
software. Google have told me we don't allow third party software on
our platforms but they claim that they in any case are doing all sorts
of stuff. I have a statement saying we took down 1.7 billion ads that
violated their policy last year more than double the previous year. What
should begans do who wished to advertise online effectively and not
want to pay out for ads not being looked at by real people? It's
basically a technological war, a bit like the arms race going on over
cyber security. They need the best tools available. They are uniting
now the advertising industry in a way you have not seen them do
before, saying, I heard a threat recently from the big agencies to
Google and Facebook, listen if you don't sort this because you dominate
online advertising, we are going to have a boycott. That seems unlikely
because why would you move away from the biggest platform, but they're
making that threat. Interesting. Thank you, Rory. More
on that later in the programme. Uber president Jeff Jones
is leaving the company A source at the taxi booking company
told the BBC the resignation They said Mr Jones was frustrated
that Uber was hiring a new chief operating officer
and that he was not But according to technology news
site Recode, Mr Jones left because of Uber's continued struggle
with issues around sexism South Korea has complained
to the World Trade Organisation about China, saying the world's
second largest economy put restrictions on its goods
in response to the installation Chinese authorities have closed
stores of South Korea's Lotte Group, but Beijing denies the link
between the closures China is South Korea's
largest trading partner. Brazil's President Michel Temer has
sought to reassure foreign trade partners that the corruption scandal
engulfing the country's meat industry does not
mean its products are unsafe. In a meeting with ambassadors from
Europe, the United States and China, Mr Temer said his government
is confident about the quality Top meat-packers have been accused
of selling rotten produce for years. Brazil is the world's
biggest red meat exporter. UK telecoms giant Vodafone
has merged its Indian business with Idea Cellular,
India's third-largest network, to create the country's
largest operator. Sameer Hashmi is at the company's
press conference in Mumbai. Sameer, bring us up-to-date. This is
a big deal create ago huge organisation when all the signing is
done on the dotted rhine? That is right. -- dotted line. It's
a mega-merger. There are still a lot of issues that need to be sorted out
and that's the reason why both companies have said that it will
take up to 24 months for the merger to complete. Once done, it will be
the largest Telecoms company in India with nearly 400 million users,
a huge market share in India. There is a huge price war happening. There
is a company owned by another company, offering Internet data at
dirt cheap prices which has forced big players to come together to cut
losses and make money in this highly competitive market. Remember with
over a billion phone-users, India is an attractive market but to make
money they need to consolidate the size of this market. That's what the
companies are trying to do. Thank you very much for keeping us across
that. I know you will follow the twists and turns of that as it
develops. Most Asian markets lower
at the start of a new week - following on from the rises last
week after the Fed Rate decision and easing of fears over
the election in the Netherlands. Wall Street also ended
lower on Friday. European markets look like this
right now on what's likely to be a quiet day for corporate
and economic news. Samira has the details about what's
ahead on Wall Street Today. Last week they were busy raising
interest rates, this week beneficials will be business write
speaking at events around the country. The Federal Reserve will be
giving opening remarks at a research conference and A Fed official will
also be speaking. Nike will be reporting earnings on Tuesday and
the company is struggling with increased competition from Under
Armour and Adidas in North America. Nike still holds a big part of the
footwear market but rivals are gaining strength. And finally on
Thursday, the world's biggest video game retailer, Game Stop, will be
reporting earnings. Lower sales of video game titles will likely hurt
the company's earnings. Joining us is Jessica Ground, UK
Equities Fund Manager, Schroders. Good morning, nice to see you. A new
trading week but it feels flat after the flurry of last week's activity.
We had a Fed Rate decision. Japan is closed, not much going on. Deutsche
Bank grabbing attention for the wrong reasons again. Fill us in
about Deutsche Bank? Deutsche Bank has been a long-running saga. German
industry has always been fantastic, very high returns, but banks have
always really struggled to get good returns and this has been Deutsche's
suring up of the balance sheets, selling off Asset Management. To
Europe. We heard a lot of economic data, the unemployment figures and
growth figures. Inflation this week. What are we expecting? It's not
going to be great. We have got weaker sterling and higher oil
commodity prices so that naturally is going to be inflationary. We
import a lot of things so that will be coming through in food, as well
as petrol. Interesting though that the dollar is weakening over the
weekend. We are looking today at the pound dollar, the pound buying quite
a bit of collars unusually today -- dollars. Quite unusual. The Fed yes,
an official rate rise, but then people feeling it was quite dovish,
so the Fed saying they are going to be watching, doesn't need to rise a
lot very quickly. The Bank of England though is more hawkish and
really saying it's going to be watching the inflation figures very
closely. And briefly, I'm looking at the
board there, there's not a huge amount to get excited about. Sally
touched on the fact that we had all the excitement last week. What is
the next thing to look out for? European elections. Just really
policy uncertainty in the US and UK won wondering how much uncertainty
there will be. Europe has been staging a good economic recovery,
people will be wanting that to continue.
We'll watch that closely. Nice to see you. Thank you.
Still to come on the programme: We'll be visiting the knell Silk
Road, spanning 7,500 miles, but how will businesses capitalise on the
link? Stay with us for that. You are with us now on business live news.
More now on Europe's largest gathering of
The UK's advertising market is worth around ?200 billion.
With targeted advertising coming under fire for adverts placed next
to extremist material, what are the other challenges facing
Edwina Dunn is the chief executive of Starcount
and she was co-founder of Dunnhumby, the firm behind the Tesco Clubcard.
A very good morning to you. Let's talk about what you do with the data
because clearly you are an expert in all of this and know what consumers
are doing, how and where they shop, and that is the joy of digital
advertising and marketing, you have more information about customers
than ever before? Yes, that is right. Actually, when
we started work with Tesco on Clubcard 20 years ago, people said
that targeted marketing would never be relevant because Tesco is a mass
market brand. And so no-one really could conceive the idea of sending
differentiated messages to millions of consumers. But it worked and it
propelled them from, you know, almost third place in the market to
market leader by a massive percentage. I feel where we are in
the market right now is in a similar position. People are saying, you
know, digital and being able to reach millions of people means that
there's no role for selective or targeted advertising. People get
everything. I think it's the time that it's going to shift now and
there are going to be some companies out there that are really clever in
how they actually selectively offer up content and messages.
And that, to some of us listening, might be a worry because we are
finding out that you are becoming much more clever at targeting us and
using the data that you do receive about us and we are concerned about
where that is going and how it's used? I think the fact is, consumers
have gotten used to free stuff. People, mainly getting some idea of
what they're interested in. That combination of wanting free stuff
and knowing them, that puts huge demands on companies to actually be
smarter with data. Flavoursome All of the technology
has been rear view mirror, analysing what people did. The future will
be... Sorry to interrupt. Now, you might not pay
much attention to them, but white - fridges,
washing machines and dishwashers Turkey's biggest white
goods company, Arcelik, operates in more than 100 countries
including the United States. But now they want to
expand into China. China's retail market became
the world's biggest last year, worth $4.89 trillion,
overtaking the US. It's now valued at $4.82 trillion,
but high-end home appliances Sales have fallen in the past few
years and there are worries that Arcelik is Europe's third largest
home appliances company. As the Silk Road is revived
with the new train link between Britain and East China,
does that really open Hakan Bulgurlu is Chief
Executive of Arcelik. Welcome to Business Live. Thank you.
Now, you are a Turkish company. You have been around for many years and
you've been with the company for sometime yourself. And you're very
established in many countries around the world including China, but for
your company, how big an opportunity did does this new link provide for
you? I personally firmly believe that the economic growth engine of
the world is shifting to the east together with the enlarging middle
classes I think South East Asia and the Indian subcontinent will take a
larger share of global GDP. Arcelik we're trying to position Beko our
brands. Turkey has a long-standing tradition of trading on the Silk
Road. Today with China's investment in one belt, one road policy and the
giant infrastructure projects that are going in both in South East Asia
and the Indian subcontinent I believe there will be lots of
opportunities. We have established a manufacturing base in Thailand with
sales subsidiaries in many of those countries, but also acquired a
company in Pakistan which has a very firm future with the 200 million
trong population. How difficult is to penetrate those markets? We
talked about China. I imagine there is so much competition in the Asian
economies where they're making. I mean some companies have been making
white goods for again rations and they are very well established?
Competition is very severe. Differentiating is the key
factorment we invest in innovation. We have a research facility in
Cambridge which we're proud of. The only way is to differentiate, water
efficiency, preventing food waste. In these developing economies
because are important aspects of the product. We believe we're better
than the competition and as Arcelik we're used to doing business in
difficult to do business places. We find it easier than the comp t. Talk
me through the trade flows. We are used to seeing products and services
come from west to east, but that's changing? We have 18 factories in
seven kuvenlts countries. We believe that the manufacturing footprint is
going to be important going forward. So for South East Asia, Thailand and
for the Indian subcontinent, we are in Pakistan, but other markets will
be important too. White goods are large so you need to manufacture
close to the market itself. Consumer insight is critical. Each market is
very different to the other and you have to integrate the consumer
insights into the product themselves so you have to be local. You're
local and you're global and you're diversified globally which I imagine
is very important for you as a company in terms of weathering the
economic storms that are taking place in various economies, when it
comes to the politics with the president in Turkey, how is that
affecting how you go about your business and what's going on in
Turkey with the immigration crisis. You are based, founded and you have
thousands of employees? I believe Turkey's future is very sound. The
economic growth, the demographics are very positive. There are
challenges. Chiefly immigration as you mentioned. But also, the
politics with Europe may cause temporary fluctuations, but the
partnership is so deeply rooted, Europe and Turkey both need each
other, not only for the market, but for a manufacturing base. Let's talk
about inflation because it is one of the things we're told will go up. We
have seen the fall in the value of the pound. That means stuff we
import from overseas, what effect does it have on you because we're
told white goods is something we will see a rise in? 2.5 million
appliances are sold in the UK. Brexit caused some fluctuation with
currency which will have inflationary pressure. We expect
that toe maybe temper demand for sometime going forward. However, the
UK's prospects are, if you look at the G7 economies growth, on going
growth targets. The UK is projected to grow faster than the G7 economies
so we aim to double our business here over the next five years. We're
market leaders in terms of units and value, but we believe the economy
will do just fine. Come back in five years when you've doubled the
business and we'll speak to you again. Hopefully.
Thank you for coming in. The CEO of Arcelik. Fascinating.
In a moment we'll take a look through the business pages but first
here's a quick reminder of how to get in touch with us.
The Business Live page is where you can stay
ahead of all the day's breaking business news.
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Get involved on the BBC Business Live web page
You can find us on Facebook, BBC Business News.
Business Live on TV and online, whenever you need to know.
This is in Bloomberg. It is international world happiness day
and they have got a story, but Bloomberg put the money spin on it
that money doesn't buy happiness. This research tried to quantify how
unhappy money might make you. It looked at how happy people were in
2006 in America and how much money you'd have to be earning in order to
make up for how more unhappy you were now. So basically, USDP is
$53,000. To make you happy, you need $133,000, it would have to go up
that much. People are more unhappy maybe because they're earning more
money because they perceive there is more corruption in society, all
these soft issues rather than just economic wealth.
Shall we talk about what the viewers have been saying to us about
international happiness day. We asked the question what would make
you happy at work. Ben said working with me. Anyway, Gary says,
"Fridays." Gary, I'm with you. Yohan says, "Helping others achieve their
goals." Another viewer says, "The fact that he has retired." Judith
says it is about the joy of seeing employees reach their potential and
shine. Judith sounds like a nice boss. Assuming she is a boss.
Judith, who do you work for? General Motors tries a subscription plan for
cadillacs? You buy a service from the company. A cadillac turns up at
your door, if you don't fancy that one, you call up and change it to
another one. You drive it? It is not a chauffeur. It is like a power by
the hour! You pay... It is taking it another step forward. You just
really are buying mobility services of a company and Ford and Volkswagen
have looked hard at this idea. We'll provide you with whatever you want,
a motorbike, a taxi or a car, or whatever you want just to move you
around. The car companies will just own the relationship with the
customer and get away from the messy business of making cars. This is
fascinating. In five or ten years, we'll look back and the idea of
buying a car that sits for the majority of time outside your house,
empty and unused is a waste of money. Odd. You will start paying
for what you use so paying by the hour for your car. It will work out
cheaper in the long-term. Unless you've got a rare cadillac, the car
you buy just loses value the money you park it on the drive. As soon as
it drives off the show room floor. You need fewer parking spaces and
fewer car parks in city centres. For the car insurance industry, what
does it mean? They will insure the car and they don't need to insure
you. Nice to see you. Thank you for that. Thank you for your company
today. Keep smiling! It is international happiness day. We're
very happy. We will see you soon. Bye-bye.
Hello. Good morning. Spring is going to be taking a bit of