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What's inside: Today's Online News 1. IAB Preps Anti-Regulatory Campaign by Wendy Davis 2. Google, WPP Team To Research Ad Effect by Joe Mandese 3. Yahoo, AOL Execs Talk Local by Laurie Sullivan 4. Apple Touts iPhone 3.0 by Mark Walsh 5. Google's Woodside Succeeds Armstrong by Tanya Irwin 6. Athletes' Endorsements A Hit For Online Advertisers by Gavin O'Malley 7. Search Engine LeapFish To Launch Ad Keyword Resale Site by Laurie Sullivan 8. Tennessee Ruling Protects Anonymity Of Bloggers by Wendy Davis 9. Burst Media Product Helps Build Reach by Gavin O'Malley 10. Borrell: SMB 'Non-Ad' Spending To Triple By 2013 by Mark Walsh Commentary 11. Cadbury: Viral Video Done Right by Tyler Willis News Briefs 12. IVillage Names Chief Content Officer 13. Major League Gaming Announces Sponsors 14. TheWB, MySpace Partner On Rockville CA Today's News 1. IAB Preps Anti-Regulatory Campaign
The slick, seven-minute clip, "I am the Long Tail," shows more than a dozen online publishers and editors talking about their ad-supported sites. "Thanks to advertising, we've been able to take our hobby and make it into a business," said a host of the cooking site ShowMeTheCurry.com. Other entrepreneurs made similar comments. "If I didn't have the online advertising revenue stream, Ask The Builder probably would have folded a long time ago," said AskTheBuilder.com founder Tim Carter. "Advertising plays a central role in keeping my business alive," added Kevin Savetz, owner of Savetz Publishing. The publisher of FamilyTravelForum volunteered that the site allowed her to spend more time with her children. "I was tired of getting this message," she said while holding up a handwritten note stating: "We miss you mommy." She added: "I can stay home and do the Web site now. It's totally cool." No one mentions the current controversy surrounding whether some ad techniques violate Web users' privacy. The clip was available on the IAB's Web site last week, but had been removed by Tuesday. (A copy was still available Tuesday through Google's cache.) A rough cut was shown at the IAB's annual meeting last month. An IAB representative refused to elaborate on the organization's plans for the clip, other than to say the group was "working towards an important announcement" about the video. But in January, IAB chief Randall Rothenberg posted a video to YouTube asking small publishers to participate in the clip, which he said would be used for lobbying. "We ... want policymakers and regulators in Washington and our state capitols to recognize that small digital publishers are critical to economic growth," he said. "Politicians are expressing a deep and disconcerting interest in regulating the Internet. We want them to know that this would be a threat to the diversity of speech and communications in the United States." In the last year, federal and state lawmakers have increasingly expressed concern about whether behavioral targeting, or tracking users across a variety of sites and serving them ads based on their Web history, infringes on people's privacy. Recently, Rep. Rick Boucher (D-Va.) told Reuters he was prepping a bill to regulate online behavioral targeting. In addition, legislation regulating online privacy was introduced in New York, Connecticut and Massachusetts, although none of those states have enacted new laws yet. Privacy advocate Jeff Chester, executive director of the Center for Digital Democracy, called the clip an "extremely disingenuous piece of work." "No one's going to fall for a one-dimensional argument," he said, adding that he alerted other advocates to the video. "Clearly we're going to have to respond with counter-programming." 2. Google, WPP Team To Research Ad Effect Google is teaming with the world's largest buyer of media, Martin Sorrell's WPP Group, to conduct new primary research to understand how advertising works on both digital and traditional media outlets. Details of the initiative, first reported in today's edition of The Wall Street Journal, is expected to be released today, and will include an investment of $4.6 million to fund three years of research including projects with such prestigious think tanks as the Harvard Business School, MIT, and Stanford University, and will leverage data from some of WPP's biggest clients, including Ford and Unilever, the paper reported. The deal is interesting for two reasons. First it comes amid an economic downturn, when R&D capital might seem to be an especially precious premium, and indicates the long-term commitment both Google and WPP have to understanding how advertising works. Secondly, it is part of a broader trend of collaborative industry alliances designed to advance research, and apply it to make advertising even more effective in a digital world. Other recent industry collaborations include the Nielsen Co.-funded Council for Research Excellence, which has begun releasing the findings of a massive ethnographic study conducted with Ball State University's Center for Media Research; Havas' MPG unit's so-called Collaborative Alliance, which has been trying to advance the industry's knowledge of what works, and doesn't work in interactive and advanced TV ad platforms; and "The Pool," an alliance organized by Publicis' VivaKi unit, which is working with leading online publishers such as Hulu, Microsoft and Yahoo, but not Google, to develop a superior alternative online video advertising unit to the pre-roll. Publicis and Google, however, have been operating an ongoing collaboration sharing organizational, cultural and business practices in an effort to learn more from each other. It's all part of Google's befriending of Madison Avenue, and designed to offset the fear, and anger agency executives feel about Google's increasing encroachment on their turf, and which once led WPP's Sorrell to describe the search giant as a "frenemy." The new WPP/Google research alliance is the first funding grant in a call Google put out for research proposals last fall, which has generated more than 120 applications to date, the Journal reported. 3. Yahoo, AOL Execs Talk Local
Portals AOL and Yahoo have local strategies that focus on specific industry segments to increase traffic, loyalty and advertising opportunities. AOL has MapQuest, City Guide, AOL Autos, as well as careers, travel, and events sites. Yahoo took a different approach, focusing on social network services supported by its local division. "Yahoo plans to leverage existing properties to build out local search," Rafiq told Online Media Daily. Time Warner's AOL division last week announced the appointment of former Google executive Tim Armstrong as chairman and CEO. Yahoo named Carol Bartz CEO and a member of the board of directors in January. "It's our understanding that Tim is a big fan of local, so we're pretty excited about it," Spanos said. "We expect to have a focus on local and have more stories to tell about our success and partnerships." Yahoo on Monday released three search marketing tools geared toward targeting consumers. The tools--demographic targeting, ad scheduling, and enhanced ZIP-level geo-targeting--aim to give marketers more control of sponsored search campaigns. Rafiq didn't have specific plans to share about future local online services, but said there's a lot of excitement about Bartz leading Yahoo. "The local opportunity remains one we haven't tapped into as much as we can," he said. "From what we hear at the highest level, they also share that opinion. We expect a commitment to local could play more broadly." 4. Apple Touts iPhone 3.0
Apple will offer the new iPhone OS 3.0 to current iPhone customers as a free update, while selling it for $9.95 for the iPod Touch. The company provided a preview of the forthcoming iPhone software during a presentation at its Cupertino, Calif. headquarters. Underscoring the continued demand for iPhone applications, Apple executives said more than 800 million had been downloaded to date from its App Store, with more than 25,000 available. More than 17 million iPhones have been sold so far in 80 countries. Many of the new features and initiatives announced Tuesday addressed long-standing criticisms from iPhone users and developers. Apple, for instance, last year had promised developers it would deliver push notification--the ability to alert iPhone users running one application when new data, like an IM message, pops up in another app not in use. Scott Forstal, Apple's senior vice president of iPhone software, described the new software as a major upgrade, with more than 1,000 new APIs for developers. They include new tools for streaming video and audio and in-game voice capability, and the ability to add Google Maps to apps (including turn-by-turn directions). Developers will also now be able to sell subscriptions for their apps--and other content from within them--through a new In-App Purchase feature linked to the iTunes Store for authentication and transactions. As with applications sales, Apple will take a 30% cut of these purchases. Apple released the developer beta for the iPhone 3.0 OS Tuesday. Other new iPhone features highlighted include Bluetooth wireless connectivity to find other iPhones or iPod Touches running the same app, Bluetooth stereo, voice memos, and Auto Fill. Search will be available across all Apple applications including Mail and Calendar and a new Spotlight page that will let user search all of them simultaneously. Despite all the new iPhone frills in the works, competition in the fiercely contested smartphone space is far from over, according to at least one analyst. "Apple delivered no 'knock-out' blows to competitors with this release," said Avi Greengart, research director for consumer devices at Current Analysis. "Many of the features announced today are just catching up with what Windows Mobile, Symbian, and RIM have provided for years." Putting aside the features checklist, the real impact of the iPhone 3.0 is that it will only enhance Apple's advantage in mobile applications. "Consumers are increasingly looking at smartphones as a platform investment that increases in value over time as applications are added," said Greengart. "By providing developers with an even richer set of API's in the iPhone 3.0 release, tying new types of hardware to the iPhone, and enabling the App Store to support in-application purchases or subscriptions, Apple is extending its lead in the application space." Research in Motion, Nokia, Google and Microsoft are among Apple competitors that have already launched--or plan to soon launch--rival mobile application stores. Microsoft last week announced details of its forthcoming Windows Marketplace for Mobile, promising developers a speedy and open application submissions process in an effort to woo those who may have grown frustrated with Apple. iPhone developers have complained for months that the approval process for apps is too slow and opaque. Part of the problem has been the sheer volume of submissions that Apple has to deal with, according to one iPhone and iPod-focused blogger. 5. Google's Woodside Succeeds Armstrong Google sales exec Dennis Woodside has been named VP, Americas Operations, replacing outgoing exec Tim Armstrong, who was named chairman and CEO of AOL last week.
Woodside, who has been with Yahoo for five and a half years, will start in the next few weeks, Google told employees Tuesday. Omid Kordestani, Google's SVP, global sales & business development, to whom Woodside will report, said in an internal memo that Woodside has "brought incredible integrity and entrepreneurialism to everything he's done," according to Kara Swisher of D: All Things Digital, who obtained the memo. "Ever since I met Dennis in 2003, I have been impressed by his combination of entrepreneurialism and operational excellence," Kordestani wrote. "He's never afraid to try new things and always ready to roll up his sleeves and pitch in--whether it means moving his desk to sit with the UK DSO team to see the operations first hand, or being the customers' advocate internally to help product and engineering better understand market trends." "While we are all sorry to see Tim move on, change always brings new opportunities," Kordestani wrote. "We believe it's now time not just to roll-out globally the best practices from the different regional sales teams--the Americas, EMEA and Asia Pacific--but also to tailor our business strategies more closely to the different situations we face in different countries (more mature versus less mature markets)." Armstrong is already embroiled in his new job at AOL. He led an employee rally today at AOL's former Dulles, Va. headquarters, and will hold a similar meeting at AOL's New York office Wednesday. 6. Athletes' Endorsements A Hit For Online Advertisers
Indeed, when banner ads featuring video and still images of pro athletes were tested against the same ads with no endorsement, the study found a 180% increase in unaided brand awareness, along with a 56% improvement in message association, where participants correctly absorbed the attributes of tested products and services. The study, conducted on behalf of Brand Affinity Technologies--which is itself in the business of matching mostly pro athletes with online advertisers--indicated that online endorsements perform strongly on both branding and direct-response levels. "Across all channels, it's obvious that targeted endorsements naturally register with consumers," said Allie Savarino, vice president of marketing at Brand Affinity Technologies. In addition, the study found a 39% improvement in brand favorability and a 27% increase in purchase intent. Launched in beta late last year, BAT has already assembled a network of about 1,400 pro athletes available to advertisers for far less than typical celebrity endorsers. "Endorsement marketing has traditionally been more gut instinct than science," said Savarino. "Our data-supported method removes much of the risk and guesswork involved." Clients include Web-based ticket seller StubHub, which works with BAT to run display ads for local events, and LegalZoom. According to BAT, campaigns with pro athlete endorsers are delivering 13.5 times average conversion rates and 3.5 times average click-through rates. 7. Search Engine LeapFish To Launch Ad Keyword Resale Site
Brands pay an annual registration and renewal fee to purchase advertising keywords on LeapFish.com, similar to Web site domain names, rather than use a cost-per-click (CPC) advertising model on the Web. If a marketer pays $10,000 for the keyword, they pay $500 yearly to renew it. Behrouzi said the model lets companies register keywords in one of the three positions available on the site. "Imagine a cross between eBay and Sedo where folks can bid or place a buy now price for resell," Behrouzi said, noting that keyword terms have been resold on eBay. LeapFish.com, which relaunched in late 2008 as an "information aggregator," allows searchers to type in keyword terms, returning the most relevant results for news, blogs, photos and videos with each character the searcher types without a click. Through APIs, the engine's relationships with Google, Yahoo, MSN and others allow searchers to simultaneously search multiple portals at once. Some of the sold-out keywords on LeapFish.com include diet, automotive, annuity, Montana real estate, Maui wedding, refinance, Viagra, and Web traffic. The keyword "diet" sold for nearly $8,000 while "Viagra" sold for $7,000 and "annuity" for $2,000. Keyword prices are set by combining traffic data, number mentions across the Web, and the amount that companies pay for words based on the cost per click (CPC) model. The data, combined with algorithms, spits out the value. LeapFish.com, a division of DotNext, a startup incubator headquartered in Pleasanton, Calif. Acting as an information aggregator could help boost the advertising model--but as Kevin Lee, chairman and CEO at Didit, points out, a similar model has been tried before by DesRealNames and AOL. And despite Behrouzi's continued success in numerous Internet startups, getting the resale site up and running might not prove as easy as some think. Behrouzi, who started his first Internet business at age 15, also co-founded Reply.com at age 20. The company produced more than 20 multimillion-dollar profitable service provider products and services, growing to more than $30 million in revenue within five years. 8. Tennessee Ruling Protects Anonymity Of Bloggers
The judge ruled that people who seek to learn the identities of anonymous authors must first make a showing that they would be able to prove a libel case. With the ruling, the judge joined courts in Arizona, California, Delaware, New Jersey, New York, Texas and the District of Columbia, which have held that plaintiffs in a lawsuit can't simply demand to know a blogger's identity without first establishing that they stand a chance of prevailing in a libel lawsuit. The dispute centered around the blog Stop Swartz, which launched in September 2007 and carped on Donald and Terry Keller Swartz, a married couple in Davidson County, Tennessee who manage real estate. The Swartzes sued the bloggers behind the site for libel and invasion of privacy based on posts made shortly after the site's launch. Those posts are offline now, but the Swartz's complaint spells out some of the details. In October, 2007, the blog alleged that the Swartzes committed arson by setting fires throughout the village of Old Hickory, according to the complaint. Another post said that the Swartzes "toss out their renters 'without a moments notice,'" according to the complaint. The invasion of privacy count stemmed from a blog post that allegedly republished a Cragislist post disclosing that Terry Keller Swartz was an ex-addict." The case isn't over yet. The Citizen Media Law Project reports that the judge intends to hold a hearing in the future, at which he will balance the likelihood that the Swartzes can make out a defamation case against he blogger's First Amendment right to remain anonymous. 9. Burst Media Product Helps Build Reach
The product is designed to help Web publishers, ad networks, and ad exchanges build reach without having to acquire site-partners or recruit affiliates. "The ability to offer advertisers the scale to deliver campaigns and budgets is vital," said Sean Keaveny, SVP of sales at Burst's adConductor unit. The Inventory Exchange also offers demographic and geographic targeting capabilities, along with additional audiences for remarketing and retargeting. The new platform has a team of "campaign experts" to help clients forecast inventory, traffic and test creative, optimize campaign performance and pay publishers. Founded in 1995, the Burlington, Mass.-based Burst helps advertisers to reach finely segmented consumers as they visit its various interest-based sub-channels. Burst's vertical audience networks include Auto, Entertainment, Moms, Early Adopters, Family Builders, Baby Boomers, Family Travelers, Green, Trendsetters, Gamers, Thought Leaders and Wellness. Burst also offers publisher-led networks including the CDKitchen Cooking Network, the RealGM Sports Network, the Daily Jolt College Network and the Kiwibox Teen Network. 10. Borrell: SMB 'Non-Ad' Spending To Triple By 2013
That forecast by Borrell Associates, in a new report titled "Main Street Goes Interactive," predicts that interactive ad spending--across segments including display, search and email--will grow more slowly, by only 10% in the next five years to $7.5 billion. While non-ad spending has been only a small fraction of SMB interactive marketing budgets to date, Borrell expects that to change as the Internet increasingly erases the distinction between advertising and marketing. "The blurring borders between what is advertising in the interactive world and what is not added to the shift of 'non-ad' marketing dollars," states the report. "Businesses large and smaller--but especially smaller ones--don't even try to make the distinction. To them, whatever they spend or do on the Web is advertising, whether it goes through an intermediary or not." That mindset will help non-ad spending on things like Web sites or online promotions or public relations efforts increase from 7.9% to 18.1% of interactive marketing budgets from 2008 to 2013. On the advertising side, Borrell anticipates that paid search will continue to be a key part of SMB spending while banner ads give way to video. "By 2013, the spending habits of SMBs are likely to be very different than today, when their interactive buys consist mainly of paid search (accounting for 85% of online advertising)," according to the study. "In five years, 68% of their spending will be on paid search and video." Meanwhile, standard format advertising, which today accounts for 47% of all SMB interactive spending, will make up less than 19% by the end of 2013. Citing a B@B Magazine survey, Borrell noted that only one-third of marketers interviewed planned to increase spending on banners in 2009, while more than two-thirds expected to boost spending on email marketing. Along with other studies, "these surveys and other research indicate that media planners from businesses of all sizes do not believe the classic 'standard format' interactive ad format performs as strongly as other formats--specifically email marketing and paid search," stated the Borrell report. Commentary 11. Cadbury: Viral Video Done Right
According to a recent survey, online video will be a digital marketing focus for 66.8% of senior level decision makers in 2009. Online video's breakneck ascendancy is something to celebrate. Over the course of this year, we're sure to see some exciting creative coming out of the powerhouse digital agencies. It's also inevitable that we'll encounter some duds. If you're a marketer looking to add viral video to your media plan, you should keep in mind the following tips for creating effective viral video content. While these principles can't substitute for a demographic-sensitive and trend-sensitive video marketing plan, they can help you (and your production partners) avoid some pitfalls that have undercut more than a few online video campaigns. For the purposes of this article, we'll be focusing on one company's experience developing sterling video content. It all starts with the story of a gorilla and Phil Collins. Three Principles in "Gorilla" Marketing In September 2007, marquee chocolate brand Cadbury (using the name "A glass and a half full productions") released an extremely odd video. The clip featured a very emotional (and highly skilled!) gorilla playing drums over a soundtrack of Phil Collins' 1981 hit "In the Air Tonight." This combination of primal primate thumping and Collins' atmospheric voice could have made for much confusion. But instead the video ad quickly became a massive viral hit. At the time of this writing, 12 million viewers have submitted almost 16,000 online comments and 1,700 blog posts about the clip. What can we learn from Cadbury's "Gorilla" campaign? Arguably, three things: 1. Your video needs to be short. Think 30-90 seconds. Cadbury's was about 90 seconds long. 2. You need to capture a viewer's initial attention within the first 15 seconds. 3. You need to motivate users to spread your content by ending your clip while they are still most engaged (shortly after the "payoff" of the video). We can scrutinize "Gorilla" more closely in order to flesh out the above guidelines. First, it's obvious that the video was created to be a visceral attention-grabber. For the countless many who hold onto sad or else sensual connotations of Phil Collins' dark, drum-heavy song (remember its role in the movie "Risky Business"?), the image-versus-sound clash is immediately startling: A gorilla emoting to this song? Why? What's the purpose of this? However, such cognitive dissonance appears to be entirely the point: by virtue of your confusion, you are lured in. And you have an incentive to watch until the very end of the clip, if only because you want to find out whether or not there's some method to -- some larger reason for -- this madness. Note that there is also a larger timing issue here. For online video marketers, the format precedent and analogue on which they can rely is not the reality TV show or the sitcom or the infomercial, but rather the 25- or 30-second commercial. You've got to present your main point(s) right away. Yes, your video is short. But make sure to end on the right note. For many of us, "Gorilla" delivered its payoff when the camera pulled back from the primate's face and revealed that said primate musician was, indeed, sitting on some random soundstage, banging on the drums. Our emotional feeling might be verbalized like this: this is something completely new; it has no neat explanation or glaring selling point; and it's funny in a smart way. What's the aftermath of this emotional reaction? Well, after having captured its audiences ... the "Gorilla" video simply ends. It's sudden, but the clip ends on a psychological high point, both in terms of the final visual frame presented and the final sound made. In other words, Gorilla ends at its most actionable moment, when viewers are most engaged: having being left with such a vivid last memory, many were compelled to pass on the video immediately. This "end-on-a-high-note" principle is useful for revealing what digital marketers need to avoid. For instance, what if the video ended with a stodgy narrator talking over shiny shots of happy people eating Cadbury bars? It seems obvious that this wouldn't be the way to go, but in fact many companies do end up stumbling over the video finish line. Ultimately, Cadbury is one example of viral video success. Your mileage in copying the production style and tone of "Gorilla" will vary, and for certain organizations (e.g., most nonprofits), it's not advisable to follow Cadbury's humor-driven tack. For savvy brand marketers and digital agencies, however, the above-mentioned principles will put you on the right road. They'll provide the right framework for a blank storyboard. A well-executed viral video campaign can be among the best generators of ROI. In this economy -- in this time of tightening budgets and single-chance test-runs -- we all need to do our best to take the guesswork out of video marketing News Briefs 12. IVillage Names Chief Content Officer Angela Matusik has been appointed chief content executive for iVillage Networks. Matusik, who starts on March 30, is tasked with revitalizing the editorial vision for each of the brands within the Network -- including iVillage.com, Astrology.com and iVillage.co.uk. Most recently, Matusik was the development editor at People.com. There, she was charged with developing and overseeing the website's celebrity style channel, StyleWatch. Matusik also led the editorial on People Digital's acquisition of Celebrity Baby Blog and oversaw the launch of People's new People Pets site. Matusik was one of the founding editors of In Style magazine. In 2000, Matusik developed and launched instyle.com, the magazine's Web site.--Tanya Irwin 13. Major League Gaming Announces Sponsors Major League Gaming, the professional video game league, today announces an expanded sponsor lineup for 2009. The sponsor roster includes Dr Pepper, Old Spice, Stride, Ballpark, BIC Comfort 3 Advance, Bungie, Castrol, Gamestop, HP, Ubisoft and Xbox 360. "We're thrilled to see the enthusiastic return and expansion of our league sponsor partners for 2009," said Matthew Bromberg, president and CEO of MLG. "The economy may be difficult, but when a partnership moves the needle, marketers respond." MLG's 2009 Pro Circuit Season Opener will be held April 3-5 at the Meadowlands and fans can come to see their favorite players live and in person the entire weekend. Sponsor activities, amateur free-for-all tournaments, and MLG's exciting live programming will be happening all weekend long.--Tanya Irwin 14. TheWB, MySpace Partner On Rockville CA TheWB.com and MySpace on Tuesday announced a content partnership to bring the new original digital series "Rockville CA" from TheWB.com to MySpace Video. The scripted program, set at a fictional Los Angeles rock club and featuring live performances by 20 indie music artists, was created by Josh Schwartz -- of "Gossip Girl" fame -- who serves as executive producer alongside music supervisor Alexandra Patsavas. At launch, the first four episodes of "Rockville CA" will be available to view online. Two additional original episodes will be posted on each Tuesday thereafter, continuing through to May 12. Along with offering the complete episodes -- each running between four and six minutes -- the "Rockville CA" MySpace page will boast additional content, including behind-the-scenes photos from the set, links to the MySpace profile pages for the featured musical performers, and a "Rockville CA" widget that can be downloaded and shared.--Gavin O'Malley |
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Wednesday, Mar 18, 2009 http://www.mediapost.com/publications/ |