Representatives from The NBC Agency, Scripps and Universal Studios opened up about their digital advertising investments at 360i's "Search in the Media Ecosystem" Summit--and the numbers echo the increased spending industry-wide. At NBC, the interactive spend for some news/cable properties is about 25-35% of the overall budget, up from 15% last year. While it is not uncommon for niche content smaller budgets to have 100% of ad dollars spent in the digital space, most major properties are plugged through a mix of on- and offline channels. NBC has seen its most tangible multi-platform success with "Heroes"--from a peak of 14.3 million viewers on air to 7 million unique visitors to its Heroes 360 microsite. The show was featured on social networks, in blogs, and even in an online game, and remains a prime example of traditional media leveraging digital channels for excellent results. Chris Meador, director of media planning at The NBC Agency, says there has been a shift from "viewing digital targeting in terms of being a tool for mass reach, to a tool for building a core audience around properties that people really want to engage with." At HGTV, Scripps Networks' home and garden lifestyle channel, digital spending averages 16% of the spend for some shows--up from 11% last year. Although the actual allocation differs by show or "brand," the budget typically includes a mix of search and display advertising, as well as initiatives on emerging channels. With "Living with Ed," a reality show centered around Ed Begley, Jr. and his attempts to live an environmentally friendly life, the goals were to generate a quick buzz that would inspire users to tune in, and to reinforce perceptions of HGTV as a network with high entertainment value--not just "how-to" shows. The challenge? "Living with Ed" only had a six-episode run and less than 10% of the budget of a priority launch campaign. Another major obstacle the HGTV interactive team faced was that searching for the phrase "living with ed" continuously resulted in Web sites related to living with "erectile dysfunction." But through a carefully targeted search engine marketing and optimization campaign, as well as display advertising, and even an AOL-based avatar initiative, the team was able to boost "Living with Ed" to 90% of the primary page results for that phrase on Google and Yahoo. "The entire shelf space in search was filled with positive info about the show," said Mike Boyd, senior vice president of marketing, HGTV. More tangible proof was in the ratings, however, as "Living with Ed" came in with 14% more viewers than the show in the same time slot the previous year. A second season of the show debuts August 26. At Universal Studios, digital spending overall is now about 7% of the ad budget, up from 5% last year. Because so much of a movie's earnings potential stems from opening-day success, "film is still an industry that's driven mainly by broadcast and in theaters," said Doug Neil, senior vice president of digital marketing, Universal Studios. Still, for specific titles, such as "300" and the soon-to-be released "Transformers," interactive campaigns make up almost 10-15% of the ad budget. For many of Universal's films, the goal of digital ad initiatives is to generate online behavior that reinforces offline behavior, so search engine marketing and optimization are the favored tools. With "Knocked Up," a critically acclaimed, modestly budgeted hit that grabbed $8.9 million on its opening night, Universal used search to generate early buzz. Google's content network brought in relevant placements in categories like young men and comedy, and Universal also optimized its knockedupmovie.com site for search, as well as purchasing relatable keywords such as pregnancy and "one night stand."
Yahoo, MTV Online, Live365, Rhapsody, Accuradio, Pandora and thousands of other Internet radio sites will go silent this coming Tuesday, June 26, according to an announcement late yesterday afternoon by the SaveNetRadio coalition, which was formed to fight upcoming rate increases set by the Copyright Royalty Board. The "National Day of Silence," by emulating what coalition members warn will happen if the rates actually take effect next month, is seen as a way to mobilize supporters to urge Congressional passage of the corrective Internet Radio Equality Act. The coalition said many webcasters will shut off their streams entirely on Tuesday, while others will broadcast occasional announcements about the impending rate increase. The day of reckoning is July 15th, when 17 months of higher retroactive royalty payments are due to the SoundExchange collection organization.
With Internet-sourced music on the rise, the Consumer Electronics Association (CEA), which has traditionally served the manufacturers and retailers of such products as TV sets, CD players and DVD players, released a study showing that 72%, or nearly three quarters, of U.S. online adults now listen to audio on their home computers instead of through those other devices. The study, titled "Computer-Sourced Audio Consumption in the Home," found that 77% of these PC audio users listen to music on their PC an average of nine hours per week. Of course, there were upsides for mainstream consumer electronics companies: While acknowledging that Internet and digital files represent "significant sources of content," the CEA noted that "physical media remains the primary source of audio content among overall home PC audio users." While 86% of home PC audio users are satisfied with the audio on their computers, more than one-third cited the need for better sound quality. And, when forced to choose between owning a large number of audio files and having a quality audio experience, almost half (47 percent) chose quality over quantity. Only 9 percent of home PC audio users currently connect their PC to their home audio systems. "In the span of a few years, the PC has risen from an enigmatic beige box to what some consumers today might call the epicenter of infotainment in the home," said Steve Koenig, CEA's senior manager of industry analysis. "The next step is to allow consumers to see the benefits of connecting their PC to their existing home audio system for a more enjoyable home audio experience."
With a team of 1,400 people worldwide, London-based Aegis Group--and its Isobar network--is the ad industry's biggest interactive media services organization, according to estimates released Thursday by Paris-based agency billings researcher RECMA. Based on data published in RECMA's first-ever digital agency report, Aegis accounts for 28% of all the digital media personnel across the six holding companies (see below) and eight nations (RECMA measured eight countries for the worldwide figures--the U.S., U.K., France, Germany, Spain, Italy, Australia and India.) surveyed. WPP's GroupM Interaction is the second-largest digital network holding company--with 1,224 digital staffers globally, or 25% of the total, RECMA said. In the U.S., however, GroupM has a larger presence, with 619 staffers versus Isobar's 595, followed by Publicis (453), Interpublic (365), Omnicom (320) and Havas (79). Aegis' digital edge over WPP is all the more impressive when considering the two agencies' total staffs: 2,175 worldwide for Aegis compared to 5,977 for WPP. Rounding out the top six holding companies are: Publicis Groupe Media with 897 digital staffers (18% of the total)--453 of whom reside in the states; Omnicom Media Group with 590 (12%) worldwide and 320 state-side; Interpublic, with 542 (11%) worldwide and 365 state-side; and Havas Media, with 344 (7%) worldwide, and 79 in the U.S. In terms of individual digital media networks, Aegis' Isobar is again tops worldwide (903 staffers), followed by Publicis' Zenith Optimedia (581), Aegis' Carat (497), WPP's MediaCom (421) and WPP's MEC Interaction (406). In the U.S., Carat is the top digital employer, with 304 staffers, followed by Isobar and Zenith Optimedia tied at 291, and then Interpublic's Initiative at 220. (See complete chart of 15 agencies below.) Overall, RECMA reported that 4,997 people work for digital agencies around the world, with about half of them--2,431, or 49%--in the U.S. RECMA--the "Research Company evaluating the Media Agency industry"--is a Paris-based independent research company established in 1991 with offices in France, the U.S., and Hong Kong. In January 2006, it met with the top managers of global interactive media agency networks. Information collected during these meetings and interviews formed the core of its new "Profiles of the Major Interactive MEDIA Agencies." In December 2006 and January 2007, RECMA met managers of several U.S. global media agency networks and presented a preliminary report. Interactive Media Agencies Ranked By Size Worldwide U.S. Ranked By Parent Company Aegis (Isobar) 1,400 595 WPP (GroupM Interaction) 1,224 619 Publicis Groupe Media 897 453 Omnicom Media Group 590 320 Interpublic (Media Units) 542 365 Havas Media 344 79 Ranked By Media Network Isobar 903 291 Zenith Optimedia 581 291 Carat 497 304 MediaCom 421 200 MEC Interaction 406 200 Media Contacts (MPG, Havas) 344 79 OMD Digital 323 150 Starcom 316 162 Initiative 273 220 MindShare Interaction 262 124 Universal McCann 200 90 Omnicom (OMG Direct, etc.) 185 135 GroupM (Outrider, M80, etc.) 135 95 PHD 82 35 Interpublic (Reprise, IDP, etc.) 69 55 *Total 4,997 2,431 Source: RECMA Major Interactive Media Agencies report. *Based on digital media staffing in eight countries: U.S., U.K., France, Germany, Spain, Italy, Australia, India.
Miami's Crispin Porter & Bogusky garnered Interactive Agency of the Year kudos at the 54th Annual Interactive Advertising Festival in Cannes, while Ogilvy & Mather's time-lapse "ordinary girl to model" Dove video picked up one of three top Cyber Lions Grand Prix honors. Africa Propaganda, based in Sao Paulo, Brazil, came in second place behind Crispin Porter, with Forsman & Bodenfors, Gothenburg, Sweden, taking third spot. Crispin Porter's honor was based on obtaining the highest score for its entries in the Cyber Lions competition, where it picked up one Gold Lion, one Silver Lion, and two Bronze Lions. Crispin's Gold Lion was won for its Volkswagen "____ Like a Rabbit" campaign, in which users filled in the blank in the display ad, with different result car actions then displayed on the screen. It received the Silver Lion for Slim Jim meat sticks' "Snapalope" banner, which invited users to click on a string to try to catch an elusive moving creature, the "snapalope." The agency pointed out that the banner drove 60% of the traffic at shaa.com, home of the Slim Jims-sponsored Snapalope Hunting Association of America. Both Bronze Lions also went to Volkswagen campaigns. Despite its overall win, Crispin Porter did not pick up any of the three Cyber Grand Prix awards, which went to: " Ogilvy & Mather, Toronto, for its viral video on behalf of Unilever's Dove Self Esteem Fund--a 1-minute-plus time-lapse film of a young woman's transformation from pretty but ordinary girl to strikingly beautiful billboard model. " Unilever's R/GA, New York, for its Nike+ project, which linked running shoes with Apple iPods and iTunes. " Stockholm 's Farfar, for Diesel Underwear's "Heidie's 15 Mb Of Fame," a microsite in which, to quote the entry synopsis, "two girls, The Heidies, steal the new and unreleased Diesel Intimate collection, kidnap a guy from Diesel, and lock themselves (and him) into a hotel room for five days....The Heidies interacted and chatted with their growing audience, uploading their shenanigans to the site as well as a chunk load of other popular sites." "I asked the jury to look beyond good and great--and they certainly did," said Tom Eslinger, jury president and creative director, interactive and emerging technologies, Saatchi & Saatchi, Auckland, New Zealand. Eslinger, quoted in the official "Lions Daily News," added: "Elements of these three campaigns will undoubtedly be widely copied, because they are all true originals." Ideas played a bigger role in this year's competition than previously, jurors said, since technological innovations have slowed down. The "Lions Daily News" quoted Juror Fernanda Romano, executive creative director at Interpublic Group's Lowe in New York, as saying: "The leap from dial-up to broadband was obviously a big factor, as has been every new version of Flash. But not this year--and I believe that will become the norm from now on." Finally, the Cyber winners in the Young Creatives competition spanned the globe, with the Gold going to Felipe Lima, art director of Brazil's AlmapBBDO, and Diego Oliveira Art Director, Africa Propaganda; the Silver to Hiroki Nakamura Technical Director, Dentsu, Japan, and Takashi Kamada, Web designer at SPFDESIGN; and the Bronze to Adam Smereczynski and Konrad Grzegorzewicz, Web designers at Leo Burnett Group's ARC Warsaw.
Does Nintendo have its sights set on expanding its gaming devices into increasingly broad media platforms? The company has declared its intention to enter the social networking and content-sharing realm. It plans to launch a Mii channel where Wii users can share their Mii avatars and engage in popularity contests--along with existing Wii channels offering news, weather reports and photo sharing. Some have predicted that Nintendo will try to monetize these channels. Then there's Konami's intriguing Nintendo DS "beauty navigation software," set to launch in Japan this fall, which could signal a movement into non-game marketing territory. Interesting speculation, but Nintendo's initiatives continue to be primarily about enhancing its position in the games business, not indicators that it has media platform aspirations akin to those of Microsoft and Sony, say digital media analysts interviewed by Online Media Daily. "Nintendo has been adamant about viewing itself as a game company, not an entertainment company," points out Michael Goodman, director of digital entertainment for the technology research and consulting firm Yankee Group. "Yes, they're building a social network, but it's more a gaming social network than a whole networking system like Microsoft's Marketplace," and most of the channels being offered through Wii are not unique in function, he says. In short, Goodman doesn't buy predictions that young people will "drop MySpace" in favor of Mii. Furthermore, while the Wii's applications may expand somewhat, it was designed first and foremost as a game console, whereas the PlayStation 3 and Xbox 360 were designed to function as entertainment systems, Goodman says. David Cole, game analyst for DFC Intelligence, agrees that Nintendo is closely focused on games and its established business model. "This is a very conservative company," Cole says. "The Mii channel will help build buzz, and they're also doing things like offering digital downloads of classic game products. But these are designed to add value for the core game consumers, and get them to buy more robust software." "At the end of the day, it's all about games--the rest is secondary," concurs Michael Gartenberg, vice president, research director for JupiterResearch. Of course, Nintendo's dramatic shift in strategy and much-hailed comeback have amply demonstrated its nimbleness within its core business. And marketing savvy has been as much a part of that success as hardware. Nintendo used the handheld DS, launched in 2004, as a testing ground for the hardware concept behind its plan to reach well beyond the core gamer audience of young males--emphasizing user-friendliness, fun and lower price over mind-blowing graphics requiring ever-more-powerful chips. When DS sales failed to take off, Nintendo responded with Nintendogs, the virtual puppy-nurturing game that proved irresistible to many demographics, and women in particular. "Brain Age" and other adult-oriented games soon followed, drawing in Boomers and even their parents. With the Wii, launched late last year, Nintendo set out to capture a broad demographic from the outset--not only with the console's intuitive wireless controller, attractive price point and compact, décor-friendly design, but with a suite of games that offer something for everyone. That required moving away from its traditional preference for making its own software, to collaborate with independent software partners. The results: Wii racked up 2.5 million units in U.S. sales between January and April, compared to PlayStation's 1.3 million and Xbox 360's 5.4 million. "Nintendo learned from the lessons of the DS, and has made the Wii's appeal more all-encompassing from Day One," sums up Goodman. An application like Konami's "Dream Skincare" DS software--which will enable women to input daily body temperature, weight, and other information and receive tailored regimens for healthier skin--may not fit with traditional concepts of "games," but it's all part of Nintendo's game plan. "Nintendo is continuing to extend its base by opening up new market segments," Goodman says. "They're focused on providing fun game platforms--but what constitutes a 'game' may depend on the segment." "They may be expanding the definition of games, but these titles are all intended to be fun game products," agrees Cole, who also points out that the particularly voracious Japanese game-playing market is in many ways unique. (It's not yet clear whether the skincare software will be sold outside of Japan.) And while Nintendo might consider models for trying to monetize its new channels, these experts say it's extremely unlikely that the company would risk alienating its customer base by introducing advertising. "Nothing's inconceivable, but they would face serious challenges"--including the growing legal barriers surrounding advertising to children, observes Goodman. "That would require a big change in the company's basic philosophy," adds Cole. "It took years and years before they would even consider taking advertising in their own Nintendo consumer magazine, because they wanted to preserve its purity. And when they finally started accepting it, it was on a very limited basis."
As our world continues to shrink thanks to digital communications (and Al Gore's hot air melting the polar ice caps) everything seems to happen in the blink of an eye. For example, it used to take years for the garment industry to translate those bad-acid-trip fashions that stagger down the runways of Paris and Milan into something a normal human being weighing in excess of 91 pounds would buy in Saks--or, well, just to rub it in--Wal-Mart. Now, it takes weeks at best. And just how long did it take Hillary Clinton to produce a parody of the final episode of "The Sopranos," not only starring one of the normal cast members, but asking for a campaign donation in order to see the money shot? Ten days? (The highlight for me was just seeing the Clintons sitting across a coffee shop table pretending to be a married couple.) The result was a torrent of publicity which may have either helped or hurt Clinton's campaign--you be the judge. But the online video effort sets a dangerous precedent for politicos (and others) who may think that this peculiar kind of "social media" is a cool way to show the electorate just how au courant they are and how well they "get" Web 2.0. I suspect if Clinton gets even a modest lift in the polls that can be traced back to the parody, it will unleash a spasm of imitations that could turn the 56-candidate race into one long "Amateur Hour." Will Obama make an appearance as a character in "Medellin" on "Entourage"? "All I have in this world are my balls and my word, and I don't break either for no man." Or maybe "Say hello to my little friend..." Will Romney drop into an episode of "Big Love" to denounce polygamy? (Or maybe see if Jeanne Tripplehorn might not consider jumping ship and becoming Mrs. Romney II on the DL?) I can see McCain doing a YouTube video send-up of "Hogan's Heroes," but set in Hanoi showing how he pulled the wool over some Vietnamese Hans George Schultz's eyes to get out of camp--just in case there are three people left in America who don't recall he was a POW. I think Kucinich can appear on any Fox sitcom and not a soul in American will know that he is a candidate. They'll think it's just another routinely unfunny episode. Giuliani is camped out in front of FEMA waiting for a disaster of some kind, so he can be on the first truck in (and that night, on the first truck back out). Brownback, Gilmore, Huckabee, Thompson, and Gravel could appear in "Britney's Secret Porn Tape" and they still would be invisible to the public (but might keep the tape from going viral). It is ironic that in the last couple of presidential races, the campaigns had to be dragged kicking and screaming into the online space while still spending the majority of their advertising dollars on local spot TV. No amount of talk from smart online consultants could convince the campaign directors that online they could use a variety of targeting technologies and methodologies to send messages that would resonate with particular subsets of voters who cared more about one issue than another. They could do their usual policy reversals in real time and not have to wait for the evening news. Or they could test reactions to positions before they set them in concrete. But now that they all have video cameras, who knows what other crap they will dump online. The story you have just read is an attempt to blend fact and fiction in a manner that provokes thought, and on a good day, merriment. It would be ill-advised to take any of it literally. Take it, rather, with the same humor with which it is intended. Cut and paste or link to it at your own peril.