The New York Times
Nike spent just 33% of its $678 million United States advertising budget on ads with television networks and other traditional media companies last year. That's down from 55% 10 years ago. And Nike executives say that much of the company's future advertising spending will take the form of services for consumers, like workout advice, online communities and local sports competitions. Nike calls the third floor of its New York store the "Nike Running Club." There, runners can map out running routes, receive training advice and attend an evening speaker series--all for free, even if they trot in …
The Boston Globe
Amid a broad reorganization begun by Fidelity Investments new president, Rodger Lawson, executive vice president of marketing Claire Huang plans to leave the company at the end of the year. Lawson says the company's future advertising will put more focus on specific funds and other products. Huang spearheaded major initiatives, like the 2005 television campaign featuring former Beatle Paul McCartney that targeted baby boomers. The campaign was a critical hit, and Fidelity still uses bits of McCartney's music in TV spots that began running this year. But in other print advertising recently, Fidelity has more often touted the …
Brandweek
Jamba Juice--best known for its healthy drink offerings like Tahiti Green Tea and Razzmataz fruit smoothies--is testing its first breakfast offerings in Los Angeles and New York, with a fast-track toward going national in March 2008. The breakfast menu features items that blend organic granolas and low-fat yogurts alongside fruit, juices and blends. They come with names such as "Rise & Berry" and "Bright Eyed & Blueberry." The effort targets consumers who can't find healthy morning options at fast-feeders, as well as the growing number of people in the "deskfast" category who eat breakfast at their desk. …
The Wall Street Journal
Johnson & Johnson has promised to reimburse Britain's National Health Service when patients don't respond to its blood-cancer drug Velcade, and France's health-care service says it has discussed pay-for-performance contracts with GlaxoSmithKline. Drug companies are considering these deals instead of lowering prices, in part because they are fearful of setting precedents that would cause insurance payers worldwide to demand price cuts. Health-care payers in the U.S.--which include employers and insurance companies--have traditionally been more generous than European health-care services in paying for new drugs. Even so, insurer Aetna Inc. is exploring pay-for-performance deals with drugmakers, says Ed Pezalla, national medical …
BusinessWeek
Universal Music chief Doug Morris aims to join forces with other record companies to launch an industry-owned subscription service that would compete head-on with Apple's iTunes Music Store. He has already enlisted Sony BMG Music Entertainment as a potential partner, and is talking to Warner Music Group. Together, the three would control about 75% of the music sold in the U.S. Morris and his allies hope to move digital music beyond the iPod-iTunes universe by nurturing the likes of Microsoft's Zune and Sony's PlayStation and by working with the wireless carriers. The service, which is one of several initiatives the …
Detroit Free Press
A misdirected ad campaign is a major factor in the bungled relaunch of the Taurus brand, according to industry experts and dealers. The poor sales performance of the Taurus--a competitive vehicle embraced by CEO Alan Mulally--helps illustrate why Ford yesterday hired Toyota's Jim Farley to be its chief marketing and communications officer. Hopes for the Taurus were high when the first models of the redesigned Five Hundred rolled off the assembly line in June. The new Taurus was getting top safety awards, and trusted auto sources were recommending it as a good buy. But sales were down 30% in September …
Seattle Post-Intelligencer
Microsoft is launching a service called Windows Live Events that lets people send online invitations directing recipients to a related Web page. The service is similar to the popular Evite.com, but Microsoft is placing major emphasis on connecting attendees after the event takes place. They can reminisce by posting photos, video and text about the event on the same page. The service--which will be at events.live.com--is expected to roll out gradually over the next few days. It's part of a broader attempt by Microsoft to fill out its lineup of Windows Live online services. The new service faces a challenge, …
Brandweek
Beyoncé Knowles is relaunching her House of Deréon apparel collection, and is partnering with Samsung to market the B'Phone, a version of its UpStage unit that includes video and music functionality. The maroon-and-gold phone will be sold exclusively at Wal-Mart for $99, bound with a Sprint service contract. House of Deréon--founded in 2004 by Knowles and her mother, Tina, as a denim and sportswear line--failed at retail and was soon shuttered. Another collection, just dubbed Deréon and targeted at the junior market, bowed at retail for holiday 2006, and according to Women's Wear Daily, continues to perform well. The relaunched …
The Wall Street Journal
Protean pop icon Madonna is close to signing a $120-million, 10-year, cash-and-stock deal with Live Nation, of Beverly Hills, Calif. in exchange for the rights to sell three studio albums, promote concert tours, sell merchandise and license her name. Madonna, 49, is currently signed with Warner Bros. Records, which would retain the rights to sell her catalog of albums dating back 20 years. Her last album for the label will likely arrive next year. The fact that a concert promoter such as Live Nation is set to land the deal rather than a traditional record label is a sign of …
USA Today
Frito-Lay will devote 60 seconds of Super Bowl advertising time in February--worth more than $5 million--to a consumer's original song that is the winner in an online contest. But unlike a similar contest last season where the video had to be a do-it-yourself Doritos commercial, the tunes don't have to be about any Frito-Lay brand. Frito-Lay's "Crash the Super Bowl" contest goes live online starting Oct. 25. Entrants must submit an audio-video clip of their original song in the "Crash" area at snackstrongproductions.com--a "Second Life"-inspired Web environment where consumers also can suggest new Doritos flavors, play games and other activities. …