Economy

BigPond slammed over blog ads… Who trusts companies? Not many… Comparative ads: when you can get away with it… Strong iPhone sales in UK and Europe expected…

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BigPond slammed over blog ads

Bloggers on Telstra’s BigPond site are irritated over the company’s decision in August to run banner ads from third parties around their blogs.

Melbourne-based professional blogger Darren Rowse told The Australian newspaper that BigPond risks a mass exodus from the site. His blogging site shares revenue with bloggers.

Telstra defends the advertising as an accepted business model, similar to Gmail, MySpace and other blogging sites.

Who trusts companies? Not many

There has been a 50% decline in the number of elite business opinion leaders in Australia who trust corporations to act appropriately, according to an annual Asia-Pacific study conducted by Edelman Public Relations Worldwide and Harris Interactive.

Newspapers remain the most trusted source of news and information, rising from 49% to 53%, according a report in the Sydney Morning Herald.

The internet is becoming more credible among elite groups such as company executives, institutional investors and bureaucrats, its rating increasing from 29% to 34%.

Edelman’s Asia-Pacific president, Alan VanderMolen, said the focus on entertainment content needed to sustain advertising revenue has resulted in deteriorating credibility for radio and television.

Comparative ads: when you get away with it

A ruling by the Federal Court of Australia may make comparative advertising easier and more appealing, according to a report in Marketing magazine. The case concerned Optus’ campaign comparing its $49 Cap Plan with the $40 Phone Plan offered by Telstra. Telstra sought a temporary injunction against the ads on the basis that it had other products that were more akin to the $49 Cap Plan.

The court held that provided the comparison is truthful, advertisers can select which products they wish to compare. Because comparative ads can sway buyers significantly, the courts tend to take a critical approach.

Strong iPhone sales in the UK and Europe expected

Apple’s official introduction of the iPhone into the UK through O2 (and, unofficially, France through Orange, and Germany through T-Mobile before year’s end) was exactly the same EDGE capable iPhone with Wi-Fi at 8GB launched in the US less than three months before.

This was a surprise to many, reports ITWire, because Apple chief executive Steve Jobs has said there will be a 3G model launched next year. Despite the high price of £269 (or $US537), ITWire still thinks it will sell well.

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