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Domestic Security • Selling • The Economy

Domestic security: Video surveillance will soon be everywhere.
Selling: Put a client-review section on your Web site.
The Economy: The housing slump is affecting everything.

Domestic Security
Video surveillance will soon become ubiquitous in the U.S., despite most Americans’ innate dislike of being watched. Many more cameras will be mounted in airports, train stations, stores of all types, as well as on streets and highways across the nation. NYC, for example, plans to increase street cameras from 120 to 3,000.
Privacy concerns are being trumped by security needs...taking a cue from Europe, where cameras have long been pervasive and often play key roles in thwarting and capturing terrorists.

New technology is helping to allay Big Brother fears. Today’s surveillance cameras don’t necessarily have to always be on. They can be triggered when a sensor is tripped in a sensitive area, or only during large public gatherings or at other specific times.
Web-based systems make footage more useful than in the past, allowing security officials all over the world to share information in real time. Past events also can be quickly recalled and shared. Many firms are joining police agencies in buying surveillance gear ... even smalls can get a camera and computer setup for $2,000 to $3,000.
All this spells a boom for surveillance camera manufacturers. The industry is the fastest-growing segment of the security business, with sales expected to soar up to 15% a year through at least 2010. Players include GE Security, Panasonic, and ADT Security Services.

Selling
As more businesses see advantages in advertising on the Web ...
National Internet ad sales will grow another 15% next year, exceeding $12 billion, still well below other media ad revenue. But ...
The gains are coming at the expense of broadcast and print media, which will keep struggling to sell ads.
TV and radio will see a 4% hike vs. a 3% gain this year, thanks to the presidential election campaign and the summer Olympics.
Newspapers ... a 1% to 2% bump, same as this year.

Cultivating "brand sirens" online can help your bottom line. Sirens are satisfied customers who sing a product’s praises in blogs, your own Web site’s comment section and other Internet locations.
Up to 75% of consumers check to see what others are saying about products before buying big- and small-ticket goods and services.
Product review sections on a company Web site are a must-have. They’re proven to boost sales. For example, after Petco set one up, conversion of its Web site surfers to buyers jumped nearly 50%.
Need product buzz? Offer discounts on social networking sites. Among popular ones: MySpace, Facebook, LiveJournal, and Buzznet.

Reputable firms want no part of text spam sent to cell phones. Not only does it violate telecommunications and business practice laws, it’s a turnoff for consumers, who must pay for the unsolicited messages.
But rogue spammers are on the rise, hoping for the quick score.
Are you getting such messages? Tell your mobile service provider, which can easily track down the sender. And though they’re not obligated, providers are likely to take the charge off your bill to build goodwill.

The Economy
Ongoing housing woes spell a more sluggish second half of 2007. Growth isn’t as peppy as the second-quarter GDP seems to show. The healthy 3.4% increase is mostly due to a reversal of three elements that were unusually weak in the first quarter: Inventory volume, exports, and federal spending. Growth in consumer spending ... the largest chunk of the economy ... actually slowed from the first quarter to the second.

Look for the economy to grow at about a 2% clip in the second half. With sales of existing homes as well as new ones still falling, it’s clear that the stress from housing isn’t easing.
The housing downturn is doing even more damage, as recent stock market volatility indicates. Housing woes are beginning to pummel the markets as well as crimp the home building industry.

We don’t see much economic recovery until 2008. Then as the housing slump finally levels out and no longer subtracts from the GDP and as overseas growth continues to provide a lift to U.S. exports, GDP should pick up a bit, increasing to a pace closer to 3%.

A shakeout of casual dining restaurants is inevitable.
IHOP’s planned purchase of Applebee’s is just the start, given the large number of casual eateries with slumping sales. However, similar mergers are likely to take longer to develop. None is imminent.

Pubs are catching a wave. Yard House, Elephant & Castle, Firkin pubs, and similar destinations are enjoying strong revenue growth.
Fast-food chains also show solid gains, helped by a move to healthier selections and improved quality. One successful promotion: "Snack time," between 3 p.m. and 5 p.m. Longer hours are also popular.
High-end, fine dining establishments have no worries. A large percentage of their business comes courtesy of expense accounts.
Fastest growing? Places serving snacks and nonalcoholic drinks: Starbucks, of course, plus Baskin-Robbins, Dunkin’ Donuts, and others.

In the wake of all of the shocking sports scandals recently ...
How will corporate sponsors react? Most will watch and wait to see how things play out. If the betting/organized crime scandal involving the NBA is limited to one referee, sponsors won’t run away. But if it’s just the tip of the iceberg, all bets are off. Pro football will keep its hold on sponsors, despite the problems of name players. Professional cycling faces the largest number of defections. Adidas and T-Mobile may lead the breakaway because of widespread cheating.