20/03/2017 BBC Business Live


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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.


We'll keep you up-to-date with the latest details of insight


and analysis from the BBC's team of editors right around the world.


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


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