Dos and don’ts when leaving for a new job

 EVERYONE has heard of Greg Smith. After all, it's not every day that a top executive at Goldman Sachs resigned in such a public and high-profile way. He told the whole world, via an op-ed piece in The New York Times, that he could no longer stomach the company culture which he described “as toxic and destructive as I have ever seen it”.

Hailed as a hero by many, especially on the social media sites, Smith was nevertheless also castigated by commentators who questioned his real motive. “The reason he's been at Goldman Sachs for 12 years is that he liked the name and probably liked the money,” one wrote.

We all learn, from day one, that we should never burn our bridges when we part ways with our employers. After all, we no longer live in an era where we serve only one employer throughout our working life.

Rolling stones do gather a lot of moss these days.

So while employers do understand when we move to greener pastures, they are unlikely to be sympathetic to you if you decide to badmouth them on your way out.

And bosses do talk to other bosses, more so if you work in a niche industry where everyone knows, well, everyone.

A Goldman Sachs sign is seen above their booth on the floor of the New York Stock Exchange, in this January 19, 2011 file photo. A Goldman Sachs executive director published a withering resignation letter in the New York Times, saying the investment bank is a "toxic and destructive" place where managing directors referred to their own clients as "muppets." - REUTERS

 

As much as I salute Greg Smith for his courage to place his resignation letter in the public domain, I think the rest of us mortal souls will prefer more down-to-earth advice on how to quit a job.

I am no expert on this but here is a short list of dos and don'ts which may be useful.

1. Don't bash your boss, or your company, on social media or anywhere else

It is amazing how people on FaceBook share so openly about the goings-on in the office, including all the nasty stuff about the bosses. Hello there! If stupidity is an acceptable reason for you to lose your job, the boss will show you the door straight away. Sometimes, even private conversations in public places, like restaurants, can have ramifications beyond your control.

Someone who intends to hire you may have second thoughts as chances are if you say bad things about your previous boss, you are more likely to say the same about him. A good principle to follow is: Don't say anything about anyone in private what you would not say in public.

2. Don't play poker with your offers

After you get an offer, you may be tempted to check if your boss would make you a counter-offer. The people who play poker with their offer letters are those with huge egos who think that the office cannot run without them.

Although some employers may play along and give you the raise you demand, you can be sure that the relationship will never be the same again.

3. Do keep your options open

It has been said that no one leaves a company but a boss. So, while a situation may arise where you no longer find it easy to work with your immediate boss, always remember that circumstances may change which may make it possible for you to return to the company in the future.

So you may have to eat humble pie if your exit remarks are vicious and harmful to the reputation of the company. I can't imagine Greg Smith getting a job at Goldman Sachs again, unless he buys the company.

4. Do be professional to the last day of employment

All of us have to give notice before quitting. It's not as dramatic as what we see in the movies when you are immediately told to pack up and go. So from the time you give your notice until the official last day, conduct yourself with full professionalism. If there are things to pass on, do so in an orderly manner. Say your goodbyes without being too emotional about it.

5. Do stay away from your old office

I got this advice from a friend many years ago. He said it is natural, when you move into a new job, that you will actually regret having made the move. In a new environment, you suddenly yearn for the old job where you are comfortable with friends.

Many make the mistake of going back to hang out with their former colleagues and this only adds to their frustrations. His advice: Make a conscious effort to keep away from your former colleagues for at least six months. Concentrate on your new job and build up new relationships first. Then hanging out with old friends after that won't be so traumatic.

Deputy executive editor Soo Ewe Jin is glad that a new column, Talking HR, is now available on StarBiz every Tuesday. All of us in the working world will benefit from the good advice given by the professionals. 

CYBER bullying, a worldwide big problem

CYBER bullying has become more widespread among people today, especially with the emergence of social networking sites like Facebook and Twitter (“Vengeance via the Net” – The Star, March 21).

Social networking sites offer people the chance to jot down the happenings in their daily lives, express opinions and share ideas, besides venting their frustrations.



However, cyber bullies take it a step too far when posting nasty and derogatory comments about others. The reason for their action is that they are prejudiced towards others.

Their prejudice stems from the fact that they think that the other person is not sociable and less outspoken. Due to jealousy, cyber bullies also target those who are popular.

Their methods of bullying include stealing other’s pictures or writing unpleasant remarks in order to attract attention.

Some work in groups so that they seem powerful, and the victims have no chance to turn the tables on them.

Cyber bullies will even use electronic means to superimpose the targeted victim’s face on a nude photo to destroy that person’s reputation.

The main motive is to hurt the other party, and cyber bullies are aware of their actions.

Cyber bullies are actually craving for attention. They lack confidence and they boost their pride and ego by destroying other people’s image. They enjoy the thrill of publicly shaming others in the mistaken idea that it will make them look good.

In actual fact, they are cowards hiding behind technology and using it as a weapon to humiliate others. They do not realise that their actions can have serious consequences.

The person they hurt may be harmed emotionally and psychologically. The victims suffer in silence because they do not know where to turn to for help. It will affect their daily routine.

It is advisable that victims of cyber bullying do not retaliate but instead inform their parents or the authorities.

Cyber bullies may say they are doing it for fun, but their actions will backfire should they be caught.

They are actually the ones who are in need of help. They may even take their bullying ways to the extreme, such as physical violence, if they are not stopped.
Counselling is the proper way to handle cyber bullies. Social networking sites are good outlets to voice opinions but one should not abuse the privilege. Use it right and one can eventually lead a fulfilling life.

By YANG CHIEN FEI, -Use social media right
Ampang, Selangor.

Are antibiotics an end to modern medicine?

A warning by the head of WHO that antibiotic resistance is so serious that it may lead to an end to modern medicine should alert health authorities to contain this most serious health crisis.

A schematic representation of how antibiotic resistance is enhanced by natural selection (Photo credit: Wikipedia)

LAST week, the head of the World Health Organisation (WHO) sounded a large alarm bell on how antibiotics may in future not work anymore, due to resistance of bacteria to the medicines.

Antibiotic resistance has been a growing problem for some time now. From time to time, there will be news reports of the outbreak of diseases, old and new, that cannot be treated because the bacteria have grown more powerful than the antibiotics used against them.

And experts have been warning about how the wrong use of antibiotics has given the bacteria the opportunity to develop resistance, enabling them to become immune to the medicines.

What is needed, of course, is a multi-prong strategy to prevent the abuse and wrongful use of antibiotics. Drug companies should not over-market their products. Doctors should not over-prescribe. And antibiotics should not be used on animals that are not sick but to fatten them and thus enable higher profits.

Now, the Director-General of the WHO has given a big warning that the growing threat of resistance may mean an end to modern medicine, and the entry of the post-antibiotic era.

Speaking at a meeting of infectious disease experts in Copenhagen last week, Dr Margaret Chan said there was a global crisis in antibiotics caused by rapidly evolving resistance among microbes responsible for common infections that threaten to turn them into untreatable diseases.

Every antibiotic ever developed was at risk of becoming useless.

“A post-antibiotic era means, in effect, an end to modern medicine as we know it. Things as common as strep throat or a child’s scratched knee could once again kill. For patients infected with some drug resistant pathogens, mortality has increased by around 50%,” she said.

“Some sophisticated interventions, like hip replacement, organ transplants, cancer chemotherapy and care of pre-term infants, would become far more difficult or even too dangerous to undertake.”

Dr Chan called for action to restrict the use of antibiotics in food production. “Worldwide, the fact that greater quantities of antibiotics are used in healthy animals than in unhealthy humans, is a cause for great concern,” she said.

She called for measures — doctors prescribing antibiotics appropriately, patients following their treatments — and restrictions on the use of antibiotics in animals.

These actions have, in fact, been suggested for many years, including by the health group REACT, based in Sweden, by health networks such as Health Action International, and locally, by the Consumers’ Association of Penang.

The WHO itself has the scope to do much more in alerting health authorities and in building the capacity, especially of developing countries, to act.

There are forms of TB that have become untreatable because of multi-drug resistance. The TB pathogen has become immune to many antibiotics. This has resulted in a resurgence of the deadly disease. The story is the same for many other pathogens causing other diseases.

As Global Trends reported in June 2011, a worrying development is the discovery of a gene, known as NDM-1, that has the ability to alter bacteria and make them highly resistant to all known drugs, including the most potent antibiotics.

In 2010, there were reports of many such cases in India and Pakistan and in European countries. At the time, only two types of bacteria were found to be hosting the NDM-1 gene – E coli and Klebsiella pneumonia.

But it was then feared that the gene would transfer to other bacteria as well, since it was found to easily jump from one type of bacteria to another. If this happened, antibiotic resistance would spread rapidly, making it difficult to treat many diseases.

These concerns have been proven to be justified. In May 2011, the Times of India published an article based on interviews with British scientists from Cardiff University who had first reported on NDM-1’s existence.

The scientists found that the NDM-1 gene has been jumping among various species of bacteria at “superfast speed” and that it “has a special quality to jump between species without much of a problem”.

While the gene was found only in E coli when it was initially detected in 2006, now the scientists have found NDM-1 in more than 20 different species of bacteria. NDM-1 can move at an unprecedented speed, making more and more species of bacteria drug-resistant.

Since there are very few new antibiotics in the pipeline, when the resistance grows among the whole range of bacteria to the existing drugs, human beings will be more and more at the mercy of the increasingly deadly bacteria.

In May 2011, there was an outbreak of a deadly disease caused by a new strain of the E coli bacteria that killed more than 20 people and affected another 2,000 in Germany.

They were affected by a new strain of the already rare 0104 type of E coli. There are other common types of E coli which normally cause only a mild ailment. The WHO said the variant had “never been seen in an outbreak situation before”.

Although the “normal” E coli usually produces mild sickness in the stomach, the new strain of E coli 0104 causes bloody diarrhoea and severe stomach cramps, while in some of the more serious cases so far, it also causes haemolytic-uraemic syndrome (HUS), which damages blood cells and the kidneys.

A major problem is that the bacterium is resistant to antibiotics. Eradication of these kinds of bacteria is impractical partly because they are able to evolve so rapidly, according to medical experts.

Now that the WHO chief has sounded the alarm bell, health authorities should redouble their efforts to contain the crisis. An “end to modern medicine” and a “post-antibiotic era” are predictions too horrible to imagine.

By  GLOBAL TRENDS By MARTIN KHOR

Related articles

• Antibiotic resistance is a fight we will never win (bio230fall2010.wordpress.com)
• New Delhi NDM-1 superbug: Indian scientists nail British hoax (quicktake.wordpress.com)
• Compound May Help In Fight Against Antibiotic-Resistant Superbugs (medicalnewstoday.com)
• Team discovers how bacteria resist a 'Trojan horse' antibiotic (eurekalert.org)
• Antibiotic Resistance (and other falling skies) Part One (huntgathermedicine.com)

Cyber-attacks on China

  By Phil Muncaster

China is claiming attacks on public and private organisations from outside of its borders have rocketed in the past year - from five million computers affected in 2010 to 8.9m in 2011.

Attacks on Chinese websites are on the rise, according to a government report >>

State-run newspaper China Daily reported the figures from (deep breath) the government’s National Computer Network Emergency Response Technical Team and Coordination Center.

They revealed that machines behind 11,851 IP addresses from overseas took control of 10,593 Chinese websites during 2011. Other attacks involved the destruction of servers and stealing of personal data from web users in the People’s Republic.

Some 1,116 sites were defaced by overseas attackers, and just under half of those government sites, Wang Minghua, deputy director at the centre, told a news conference on Monday.

“This shows that Chinese websites still face a serious problem from being maliciously attacked by foreign hackers or IP addresses," he is quoted as saying.

Surprisingly, Japan is alleged to be the source of most attacks on China, supposedly landing 22.8 per cent, followed by the US with 20.4 per cent and then the Republic of Korea with 7.1 per cent.

The attacks were both financially motivated and targeted at stealing sensitive information from government departments, according to the report, although tellingly there is no breakdown for each.

China has swung from being a country frequently accused of launching cyber-attacks on Western nations to one finding itself on the business end of hackers' keyboards. Although it has been frustratingly difficult for investigators and politicians to prove, everyone from Hillary Clinton to William Hague and Google’s Eric Schmidt has pointed accusing fingers at the Asian nation as a source of malicious net traffic.

Most recently, a detailed report from US defence contractor Northrop Grumman revealed that the People’s Liberation Army is tooling up with advanced information warfare capabilities, and warned that academia and commercial technology firms are helping to provide it with significant R&D resources.

However, despite the threat that Western governments believe Chinese hackers pose, it’s also likely that as China increasingly becomes an affluent web-connected nation, international cyber-criminals will look to target its web users. There are after all more than 500m users online in the People’s Republic, and almost one billion mobile subscribers, while a growing middle class is spending increasing amounts of cash online - China’s internet GDP will grow at a CAGR of over 17 per cent through to 2016, according to new research.

It would be naïve to think that the US, UK and other nations are snoozing while China-sponsored attackers target their data. The UK’s Cyber Security Strategy announced in November explained that a Cyber Defence Operations Group will be installed at the Ministry of Defence next month, for example.

Overseen by Air Marshal Sir Stuart Peach, the group will have a mission to develop "new tactics, techniques and plans to develop military cyber capabilities”.

The latest stats from the Chinese government may be slightly exaggerated but shouldn’t be dismissed out of hand. ®

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India, Asia #1 world's top weapons importer!

 A study has found India to be the biggest weapons importer.

STOCKHOLM AFP— Asia leads the world when it comes to weapon imports, according to a study released Monday by the Stockholm International Peace Research Institute (SIPRI).

 World arms trade (AFP Graphic)

Globally the volume of international transfers of major conventional weapons was 24 percent higher in the period 2007-11 compared to the 2002-06 period, the report said.

Over the past five years, Asia and Oceania accounted for 44 percent in volume of conventional arms imports, the institute said.

That compared with 19 percent for Europe, 17 percent for the Middle East, 11 percent for North and South America, and 9 percent for Africa, said the report.

India was the biggest arms importer in the period covered, 2007-11, accounting for 10 percent in weapons volume.

 India is the world's largest arms importer (AFP/File, Raveendran)

File photo shows Indian soldiers firing a Bofors gun 

It was followed by South Korea (6 percent), China and Pakistan (both 5 percent), and Singapore (4 percent), according to the independent institute which specialises in arms control and disarmament matters.

These five countries accounted for almost a third, 30 percent, of the volume of international arms imports, said SIPRI.

"India's imports of major weapons increased by 38 percent between 2002-06 and 2007-11," SIPRI said.

"Notable deliveries of combat aircraft during 2007-11 included 120 Su-30MKs and 16 MiG-29Ks from Russia and 20 Jaguar Ss from the United Kingdom," it said.

While India was the world's largest importer, its neighbour and sometime foe Pakistan was the third largest.

Pakistan took delivery of "a significant quantity of combat aircraft during this period: 50 JF-17s from China and 30 F-16s," the report added.

Both countries "have taken and will continue to take delivery of large quantities of tanks," it also noted.

"Major Asian importing states are seeking to develop their own arms industries and decrease their reliance on external sources of supply," said Pieter Wezeman, senior researcher with the SIPRI Arms Transfers Programme.

China, which in 2006 and 2007 was the world's top arms importer, has now dropped to fourth place.

"The decline in the volume of Chinese imports coincides with the improvements in China's arms industry and rising arms exports," according to the report.

 File photo shows Chinese People's Liberation Army (PLA) …

But "while the volume of China's arms exports is increasing, this is largely a result of Pakistan importing more arms from China," it added.

"China has not yet achieved a major breakthrough in any other significant market."

China is however the sixth largest world exporter of weapons behind the United States, Russia, Germany, France and Britain.

In Europe, Greece was the largest importer between 2007 and 2011, the institute said.

Between 2002 and 2011, Syria increased its imports of weapons by 580 percent -- the bulk supplied by Russia -- while Venezuela boosted its imports over the same period by 555 percent, it reported.

Throughout the Middle East as a whole, weapons imports decreased by eight percent over the period of the survey.

However SIPRI warned "this trend will soon be reversed."

Tunisia, where mass protests ousted strongman Zine El Abidine Ben Ali early last year, launched the so-called Arab Spring and inspired similar movements in Egypt, Libya and elsewhere.

"During 2011, the governments of Bahrain, Egypt, Libya, Tunisia and Syria used imported weapons in the suppression of peaceful demonstrations among other alleged violations of human rights and international humanitarian law.

"The transfer of arms to states affected by the Arab Spring has provoked public and parliamentary debate in a number of supplier states," the report said.

The volume of deliveries of "major conventional weapons" to African nations increased by a massive 110 percent in 2007-2011 over the previous five-year period, with deliveries to North Africa up by 273 percent.

Morocco saw its own imports increase by 443 percent, the report added.

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Malaysia's household debt rise a concern

PETALING JAYA: While not an imminent danger, the level of household debt is of concern and warrants close monitoring, RAM Ratings head of financial institution ratings Wong Yin Ching said,

The nation’s household debt as a percentage of gross domestic product (GDP) had risen to 77% as at end-2011 compared with 69% at end-2006, and its household debt-to-GDP ratio was considered high when compared with other countries in the region, especially in relation to GDP per capita.

Wong was speaking to StarBiz after the release of the rating agency’s Banking Bulletin 2012. Home loans remained the largest component, contributing about 45% of the total household debt, she added.

However, unsecured financing in the form of personal loans and credit-cards had been growing rapidly, accounting for about 15% and 5% of total household debt, respectively.

Development financial institutions, cooperatives and building societies that offer personal financing facilities to civil servants under salary-deduction schemes contributed to the bulk of the growth, she noted.

“We view positively Bank Negara’s various pre-emptive measures implemented since late 2010 to rein in growth in household debt and safeguard the soundness of the financial system.

“On top of the tighter measures on residential property financing, stricter guidelines have also been implemented on credit cards, such as increasing the income eligibility criteria.

“We do not discount additional prudential regulations to be imposed in future,” Wong said.

Effective Jan 1, banks are required to use net income calculation method instead of gross income when computing debt-service ratio.

Wong added that unemployment rate was still relatively low at 3% and the credit quality of household sector was also healthy, with a low gross impaired-loan ratio of 1.8% as at end-January 2012 (end-2010:2.3%).

Nevertheless, she said the debt-servicing ability of households in the lower-income segment might be more vulnerable to economic down-cycles, greater variability in income and inflationary pressures.

On loan growth, RAM Ratings expects the overall banking system’s loan growth to taper to about 8% to 9% this year, after clocking in a strong 14% expansion in 2011. This is supported by a projected 4.6% real GDP growth this year, which is slightly lower than the 5% in 2011.

Private investments, she said were expected to remain strong, although a weakening in global demand would have some bearing on export performance.

Wong anticipates the central bank to remain accommodative in its monetary policy by maintaining the overnight policy rate at 3% with a downside bias in 2012, as preserving growth momentum would take precedence over curbing inflationary pressures.

While a more moderate household loan growth was anticipated due to the prudential regulations introduced, she added this would be balanced by stronger financing demand from the commercial and corporate sector from the rollout of projects under the Economic Transformation Programme and 10th Malaysia Plan.

For non-performing loans this year, she said the industry’s gross impaired-loan ratio was expected to be kept healthy this year, with a slight uptick to about 3% from the current all time low level of 2.7%.

“In terms of capitalisation, all the domestic, all the domestic banks were well poised to meet the new capital requirements under Basel III, of which the implementation would be phased in from 2013,” she added.

Although these new capital measures would elevate banks’ funding costs, which may in turn be passed on to consumers, it would ensure the banking sector was safeguarded against unexpected shocks, Wong said.

As at end-January, the banking system’s capitalisation was strong with a tier-1 risk-weighted capital adequacy ratio of 12.9%.

Banks’ profitability, she said had been on a steady rise over the last couple of years on the back of strong loan growth, benign loan impairment charges and growing fee income. However, net interest margins (NIMs) had been under pressure due to stiff price competition, particularly in certain loan segments such as residential mortgages.

NIM is a measure of the difference between interest income generated by banks and interest paid out to depositors.

Source: By DALJIT DHESI  daljit@thestar.com.my

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Politician Integrity the order of the day

Ceritalah By Karim Raslan

Aspiring leaders have to learn that to be elected into office is to be dutybound to one’s constituents — to be honest, scrupulous and morally good. 

WOMEN, Family and Community Develop­ment Minister Datuk Seri Shahrizat Abdul Jalil has been a dynamic and forward-looking leader – a stand-out among the Umno line-up – and they will sorely miss her talents.

However, it would be incorrect to think that what she has gone through is an isolated or a one-off case. Nor is her fall wholly attributable to PKR’s director of strategies Rafizi Ramli. The young former chartered accountant is merely an agent of change in the National Feedlot Centre (NFC) saga.

In reality, the unravelling of the NFC debacle reflects deeper, global trends brought about by technology and social media – most notably the fact that we have entered the Age of Full Disclosure.

Dynamic leader: It would be incorrect to think that what Shahrizat has gone through is an isolated or one-off case.

 

In this respect, Julian Assange and WikiLeaks are emblematic of these changes.

The Age of Full Disclosure has been a rude shock for Malaysia’s political elite.

In the past, Malay bangsawan culture – the deference and respect for figures of authority – emboldened our leaders to say one thing and do another. This is no longer acceptable or sustainable.

From now on, the Malaysian public expects leaders to do as they say. The unquestioning trust and adoration that once existed have disappeared. Technology has also freed up the mind.

Moreover, Malaysians are no longer fearful of the leaders as the last vestiges of the kerajaan ethos are swept away.

Of course, as Assange has discovered, being a whistle-blower is a very lonely business. Everyone is afraid of the man (or woman) who insists on telling the truth, especially when it’s highly compromising and/or embarrassing.

The point is that surviving in “the new political landscape” and “engaging the social media” doesn’t just mean setting up Facebook and Twitter accounts as well as hiring cyber troopers to blog for you.

It also means realising that information can no longer be controlled, and modifying your behaviour accordingly.

Malaysian politicians have to realise that nothing is sacred and nothing can be hidden anymore. The most seemingly innocuous comment or odd scrap of paper can, and will, be dredged up against you.

I’ve already said that it’s no longer possible for our leaders to present one message to another community and then say something else to the next.

So what is the solution for politicians?

It’s quite simple: Don’t run for office if your affairs (and those of your family and close associates) are not in order. Probity is the order of the day. Aspiring leaders have to learn that elected office is to be dutybound to one’s constituents, not a means to enrich themselves or their families.

This in effect forces politicos to be what we’ve always wanted them to be: Honest, scrupulous and moral in the public sphere. The only difference is that we, the people, now have the power to enforce this.

Indeed, the NFC scandal heralds a long-awaited power shift in Malaysia, whereby our elite families no longer monopolise the power to set agendas or deflect issues. Technology has inverted our social pyramid.

As I said, the double standards that Malaysia’s rich and powerful once enjoyed is no longer as pervasive as before. If they abuse the public trust and misuse the country’s money, the people can now turn on them with a vengeance.

It’s no longer enough for our leaders to say: “Trust me; I know what I’m doing and what’s best for you all”.

The continued fallout over the UK phone-hacking scandals and Rupert Murdoch’s travails should also be a warning to media practitioners that they will be subject to the same scrutiny as the politicians.

They too will be called to account if their ethics are not up to scratch or if they toy with the truth. At this rate, this tukang cerita would be better off as a rice farmer! We have been served a severe, but very timely, warning.

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Tech companies 'control the future of news'

Jon Dube, Forbes Contributor Digital Media Executive & Advisor 

Technology companies such as Google, Amazon, Facebook, Apple “now control the future of news.”

That’s one of the take-aways from the 2012 State of the News Media report, released today by the Pew Research Center’s Project for Excellence in Journalism. The news industry, the report says, “finds itself more a follower than leader shaping its business.”

But I think there’s hope. The report touches on a number of opportunities for traditional media in the digital space – areas that are growing rapidly and still up for grabs. Those include targeted advertising, the mobile/tablet space, and digital video.

Winning in these areas will be tough, given the traditional media’s historical inability to rapidly evolve and the head start other companies have on them.

TARGETED ADVERTISING

A good example is the fast-growing opportunity of targeted advertising, where Google and Facebook dominate and news organizations lag far behind.

The Project for Excellence in Journalism (PEJ) report points out that even though targeted advertising is one of the forms of online advertising expected to grow most rapidly, only a few of the top news sites use it.  Meanwhile, the report says, tech companies like Facebook and Google “are using personal data collected over the internet to direct ads to specific consumers to a far greater degree than ever before – and to a far greater degree than most news organizations are capable of.”

While Facebook and Google have taken the lead, news organizations could catch up, if they try. Most have the ability, and at least some data, that would enable them to engage in targeting. A PEJ study of digital advertising at 22 top news sites found that few of them do, however. Of the 22 sites, most did not contain any ads targeted to consumers based on their online behavior, according to the January study. Only three – CNN, The New York Times and Yahoo! News – employed high levels of targeting based on a user’s recent online activity. A handful of others employed limited targeting. (For more, see “Who Advertises on News Sites and How Much Those Ads Are Targeted.”)

While targeted display ads account for just 10% of local online ads, or $1.5 billion, right now, by 2016, they are expected to grow to $14.6 billion and make up more than half the market, according to Borrell Associates.

MOBILE

One of the bright spots in the PEJ report is the research on mobile and tablet usage. Readers spend far more time with news apps on the smartphone and tablet, visit more pages at a time, and return more frequently than they do on conventional computers, according to data from Localytics, a client-based mobile analytics firm. And most importantly, there are signs that mobile news consumption is actually increasing total news consumption – one report from comScore indicates mobile devices increase news site traffic by between 7 and 11 percent.

The good news is mobile and tablet usage are expected to continue skyrocketing. And the ad dollars will shift there as well. Mobile ad spending grew 89% in 2011, to $1.45 billion – and is expected to grow to $10.83 billion by 2016.

News organizations know this is an opportunity, and are investing resources in developing mobile and tablet apps and sites. Still, it’s not clear whether news organizations can capture these dollars. Google already earns more than half of mobile ad dollars in the U.S. and Facebook is expected to move aggressively into the mobile ad market after its IPO.

“Our analysis suggests that news is becoming a more important and pervasive part of people’s lives,” PEJ Director Tom Rosenstiel said, referring to the findings about mobile and tablet usage in particular. “But it remains unclear who will benefit economically from this growing appetite for news.”

RELATED: Mobile, tablet devices increase news consumption

DIGITAL VIDEO

Another big opportunity for news organizations is digital video, because video advertising earns much higher rates – and digital video viewing and advertising is expected to skyrocket in the next few years. While video advertising spend is only $2.02 billion now, it is projected to grow to $7.11 billion by 2015 — which would make it the most lucrative type of online ad after search and banner ads, according to eMarketer.

Despite that, video news and advertising still represents a small fraction of the content on most news sites, aside from those of major broadcasters. In a February PEJ study, none of the top stories on major news sites were in a video format — even on the sites of broadcast news organizations. Stand-alone video ads were also rare, making up only 1.3% of ads on the news websites studied.

The good news is we are starting to see increasing signs of life in digital news video. A few months ago Reuters launched a YouTube channel, dubbed Reuters TV, featuring 10 news shows. The Wall Street Journal has been one of the most aggressive newspapers in the video space, and is now producing more than four hours of video a day.  (Check out WSJ’s fantastic video app for the iPhone and iPad)

One of the more interesting experiments to watch will be The Huffington Post Streaming Network, an online news channel AOL plans to launch later this year that will live-stream news video 12 hours a day. (Disclaimer: I used to be the SVP/GM of News & Information at AOL but left last year).

THE FUTURE

As the digital world becomes more mobile, social and targeted, media companies still have plenty of opportunity. They will have the chance to to attract new audiences and dollars. The question is whether news organizations can move nimbly enough to survive, and thrive.

RELATED: How Facebook, Twitter differ for news consumption

For the latest news from SXSW and general insights on digital media, please follow me on Twitter at @cyberjournalist and visit CyberJournalist.net for the latest digital media headlines.

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