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Home loans by value fell in October and remained flat over the year, suggesting the housing sector remains stagnant.

The Australian Bureau of Statistics (ABS) said on Monday that total housing finance by value fell 2.5 per cent in October, seasonally adjusted, to $20.458 billion.

The ABS data also showed that the value of home loans was largely unchanged from October 2010, when it was reported at $20.593 billion.

The number of home loans approved in October 2011 rose 0.7 per cent.

National Australia Bank chief economist Robert Henderson said Monday’s data showed the housing market was still deteriorating.

Mr Henderson said it was a fairly dismal report on the housing market, with falling lending in value terms and construction and investment lending both weak.

Recent data, including the national accounts figures released last week, have highlighted the weakness of the housing sector.

"It is clear that over the foreseeable future Australia will fall well short of building the number of new homes required for both owner-occupiers and renters," Housing Industry Association chief economist Harley Dale said.

"Amidst the growing risks to our economy from the situation in Europe, now is the time to be providing stimulus to the new home building sector while at the same time reinvigorating the housing supply reform process, which currently lies dormant."

Commonwealth Bank of Australia senior economist Michael Workman said Monday’s ABS figures were a little softer than he expected.

"If you go back and look at the data over the last 15 years or so, housing credit growth still remains exceptionally weak.

"So, for the housing market, it’s strongly biased towards the buyers rather than sellers and it looks like it’s going to stay that way."

Mr Workman said the Australian dollar and local bond futures were largely unaffected by the data.

RBC Capital Markets fixed income and currency strategist Michael Turner said the October housing figures were a little dated.

"China has already reported trade data for November, and the finance data do not reflect the November and December (monetary) policy easing (in Australia)," he said.

"As such, there are limited implications for markets.

"We expect more timely domestic data to better reflect the softening in global growth in coming months, which should justify further easing (of interest rates) and a move to accommodative territory in 2012."

ICAP senior economist Adam Carr said the housing data showed the Australian lending market was recovering even before the Reserve Bank of Australia (RBA) cut interest rates.

The cash rate is now at 4.25 per cent after two consecutive 25-basis point cuts in November and December.

"The 50-basis points worth of cuts we’ve seen will likely see lending growth accelerate over coming months, which will start to add to the strong private demand numbers we’ve seen to date," Mr Carr said.

Story source: www.ninemsn.com.au

B2B Marketers Struggle With Compelling Content

41% of B2B marketers say that producing the kind of content that engages prospects and customers is their biggest content marketing challenge, representing a 14% increase from 36% of respondents in 2010, according to [download page] a December 2011 study by MarketingProfs and the Content Marketing Institute. Data from “B2B Content Marketing: 2012 Benchmarks, Budgets & Trends” indicates that respondents are also grappling with two challenges that go hand in hand: producing enough content (20%), and having the budget to produce enough content (18%). A lack of buy-in from higher-ups in the company (12%), producing a variety of content (7%), and having the budget to license content (1%) are primary challenges to relatively fewer B2B marketers.

Budgets Are a Challenge, But Spending to Increase

Although 1 in 5 B2B marketers cite having sufficient content marketing budgets as their primary challenge, data from the study indicates that content marketing spending is on the rise. Although roughly 26% of marketers’ total budgets are allocated to content marketing efforts this year, the same as in 2010, this year 60% of respondents indicate they will increase spending on content marketing in 2012, compared to just 3% that say they will decrease their spending levels.

The average amount of budget spent on content marketing appears to vary significantly by company size, with a negative correlation between size and budget share. For example, companies with fewer than 10 employees spend 34% of their budgets on content marketing, whereas companies with more than 1000 employees allocate 20% of their budgets.

Meanwhile, outsourcing also appears to be on the rise: whereas in 2010 only 55% of marketers used outsourcing in some capacity, this year that proportion has risen to 62%. When seeking out the right vendors to support content marketing, marketers use a variety of resources, with the biggest increase from last year seen in the use of consultants (32% vs. 27%) and the biggest decrease found in the use of trade shows as a venue to find support (20% vs. 26%).

Brand Awareness, Customer Acquisition Lead All Goals

Brand awareness and customer acquisition are content marketers’ top goals, cited by 68% of survey respondents. Lead generation (66%) and customer retention/loyalty (61%) follow closely, with website traffic (56%), engagement (55%), and thought leadership (55%) also goals for a majority of marketers. Almost half cite sales as a goal, while just 39% report using content marketing for lead management/nurturing.

Content marketing goals appear to be fairly unrelated to overall digital marketing goals: according to a November report from Webmarketing 123, lead generation (46.4%) is by far the most important objective of digital programs for B2B marketers, outstripping sales generation (22.2%), brand awareness development (15.3%), and site traffic generation (11.1%).

Web Traffic Top Success Indicator

Although web traffic is not a top goal among content marketers, it is the leading indicator of success, cited by 58% of respondents. Sales lead quality (49%) follows, while direct sales, sales lead quantity, qualitative feedback from customers, and SEO ranking are measurement criteria to roughly 4 in 10. The least popular indicator of success is inbound links, cited by 30% of marketers.

According to the November Webmarketing123 study, the vast majority (73.9%) of B2B digital marketers use web traffic as a measurement of campaign success, ahead of lead generation (69.2%) website click-through rate (64.7%), and sales (62.5%).

Mobile Marketers Most Interested in Apps, Barcodes

Mobile apps (43%) and mobile barcodes (41%) rank highest as mobile marketing strategies companies would be interested in deploying in the next 12 months, according to [pdf] a December 2011 survey from AT&T. Data from the survey indicates that banner ads (40%) follow closely as a potential strategy, with mobile web (35%) and SMS messages (34%) not far behind and digital signage (17%) appearing the least desired.

According to a November 2011 study from the e-tailing group, sponsored by Bronto, SMS marketing tactics are far less likely to be used by marketers than other mobile capabilities such as mobile commerce sites and mobile applications. Just 14% of marketers currently collect SMS opt-in from customers in all channels, while only 7% text to send out marketing messages, and 6% text to send out transactional support messages such as confirmations and order status. Between one-quarter and one-third of respondents plan to employ these capabilities in the next 12 months.

By contrast, 29% of respondents said they currently use a mobile commerce site, with a further 42% planning to employ one in the next year. 19% reported currently employing a mobile application, with 27% more planning use in the next year.

Mobile Programs To Increase

88% of respondents to the AT&T survey expect their mobile marketing program to increase in the next 12 months, while 52% reporting use of mobile marketing as part of their overall marketing strategy. Of those who do not currently have a mobile marketing strategy, more than half plan to implement one in 2012. Meanwhile, of those who do use a strategy, 51% say they are still trialing mobile marketing, while 46% say it is an integral aspect of select marketing initiatives.

Consumer Demand Will Determine Barcode Adoption

87% of marketers say that consumer demand is an important or very important criterion for them to increase their use of mobile barcodes, followed closely by the proportion who cite cost structure (84%) and security (83%). Perhaps marketers should look to mothers first for demand: according to a November 2011 joint study between BabyCenter and comScore, just 4% of mothers say they would not use a QR code, compared to 19% of the general population.

Overall, two-thirds of marketers responding to the AT&T survey agree that mobile barcodes will drive innovation in mobile marketing in the next year. 44% of respondents believe barcodes can help brands engage with customers, while one-third believe they can increase awareness of products and services.

Facebook has officially started rolling out its new Timeline feature that will enable users to show off the most important moments of their lives on their profile page.

The new feature, which was unveiled in early September, will first be introduced in New Zealand before it is rolled out to other countries, the company revealed on its Facebook blog today.

Facebook said Timeline would keep important life events on profile pages while less-important posts would drop off .

"Now you can share photos of what you did last weekend, and updates about how you feel today," the company said in a previous blog post.

"But since the focus is on the most recent things you posted, more important stuff slips off the page. The photos of your graduation get replaced by updates about what you had for breakfast."

The new feature will allow users to choose which life events, such as birthdays or weddings, are permanently illustrated on their profile.

Timeline raised privacy concerns in its development stage, after it was revealed it would be visible on the Timeline when you "unfriended" certain people, social media website Mashable reports.

Facebook said this was a glitch that had since been corrected.

Story: www.ninemsn.com.au

The Reserve Bank of Australia board has cut the official interest rate by 25 basis points to 4.25 per cent, giving mortgage holders and borrowers a pre-Christmas reprieve.

The RBA announced the rate cut at 2.30pm AEDT today following the board’s final meeting for the year.

It’s the second interest rate cut in as many months after the RBA lowered the cash rate on Melbourne Cup day in November.

In a statement issued with the announcement, RBA Governor Glenn Stevens said there had been "considerable turbulence" in financial markets and said financing conditions had become more difficult.

"This, together with precautionary behaviour by firms and households, means that the likelihood of a further material slowing in global growth has increased," Mr Stevens said in a statement accompanying the decision on Tuesday.

Economics analyst Ross Greenwood said Europe’s debt crisis would have been a significant factor in the RBA’s decision.

"The Reserve Bank indicated that it is still concerned about the European economic situation and the prospects of a global slowdown hurting Australia and its export markets," Greenwood told ninemsn.

While it’s good news for mortgage holders and borrowers, Greenwood cautioned consumers not to expect the banks to pass on the full interest rate.

Analysts were divided about whether the RBA would cut the rate today, with a survey of 14 economists conducted by AAP revealing seven tipping a cut, and seven predicting rates would stay on hold for another month.

Story source: www.ninemsn.com.au

Economists are divided on whether borrowers will get a second interest rate cut in as many months on Tuesday.

Seven of the 14 economists surveyed by AAP say the RBA will cut the cash rate to 4.25 per cent from 4.5 per cent on December 6.

On Melbourne Cup day, the Reserve Bank of Australia (RBA) cut the cash rate from 4.75 per cent, saying that recent information suggested inflation had been contained.

With inflation no longer a problem, the bias for the RBA is now firmly leaning towards rate cuts, with 10 of the 14 economists forecasting rate cuts by the middle of 2012.

Citigroup head of economics Paul Brennan is expecting the RBA to cut rates on Tuesday, despite expectations of strong economic growth in the September quarter.

"We see this as a policy of least regret given that the outlook for global growth has continued to weaken in the past month to well below trend," Mr Brennan said.

"We see scope to lower the cash rate to the bottom of the neutral range over the next few months, which would imply a cash rate of four per cent over the next three months."

The biggest risk to economic growth comes from Europe, which may well go into recession, or start another financial crisis, as several members of the euro struggle to meet debt repayments.

There are also local risks to economic growth.

In the past month the RBA, Treasury and the Organisation for Economic Co-operation and Development (OECD) have cut economic growth forecasts for 2012.

In addition to that, official figures for October showed a 10.7 per cent fall in building approvals and retail spending only rising 0.2 per cent.

On the other hand Australia’s mining boom is still going strong, with the sector making its biggest ever contribution to economic growth.

Nomura Australia chief economist Stephen Roberts said he doesn’t expect the cash rate to move for the foreseeable future unless something bad happens overseas.

"My forecast is that they are going to leave it at 4.5 per cent," he said.

"I’m assuming they will hold it neutral all the way through to the end of 2012 but my proviso is if Europe generally does go to hell in a handbasket, then they can drop interest rates a long way."

NAB senior economist Spiros Papadopoulos said the RBA won’t cut on Tuesday but by early next year the pressure will build for another rate cut.

"Obviously there’s a risk that they might cut interest rates next week, given everything that’s been happening offshore in the last couple of weeks," he said.

"On balance, given the fact that the domestic economy has been holding up okay we don’t think they need to rush in to cutting rates."

Story source: www.ninemsn.com.au