• by May 24, 2002

StreamingBroadband Penetration by Ken Liebeskind, MediaPost Staff Writer The increased penetration of broadband is encouraging for streaming advertising. Figures from Nielsen//NetRatings show there are now more than 21 million at-home broadband users (that’s 20 percent of active Internet users), which represents a growth of 90 percent in one year. EMarketer reports there were 13.7 million broadband households in 2001 and that there will be 21.2 million this year.

David Riemer, chief marketing officer of The FeedRoom, the leading television news streamer, attributes recent advertising growth to increased broadband penetration. The company streams 10-second ads from Coke, Sprint PCS, Proctor & Gamble and other major advertisers before news stories, an advertising model that is having great success. Some of the advertisers who signed on earliest have already renewed, Riemer says.

Karl Spangenberg, president/ceo of Lightningcast, which streams audio and video ads for 15 webcast clients, says the larger broadband audience will enhance ad sales. “When we talk to buyers, they say 96 percent of the population listens to radio every day, while there are far fewer streamers, who stream once a month,” he says. “But if you can say [traffic is] higher, it gets their attention because they get more coverage. It overcomes the objections of agencies that feel it doesn’t have a big enough footprint.”

Besides increasing numbers, the quality of the broadband audience is another selling point. “People with broadband spend more time online and look at more content, so they are exposed to more advertising,” says eMarketer CEO Geoffrey Ramsey. Paul Palumbo, research director at AccuStream iMedia Research, believes this is more relevant to advertisers. “It’s not the number of homes, but the behavior associated with them and the ability to target messages,” he says.

The fact that major Internet providers are providing new streaming advertising opportunities is yet another selling point. Jonathan Katz, chief technology officer for Vastvideo.com, which syndicates and streams web content, says the company is partnering with Yahoo, Windows Media and Real One to stream content. New ad opportunities were offered by Windows Media and Real One late last year, with Windows inserting ads into its content for the first time and Real starting a subscription service that will provide new streaming ad opportunities. The companies insert their own ads and often allow content providers like Vastvideo to do the same. Advertising revenue is usually shared between the companies.

The ability to stream ads at major portals is the biggest opportunity for content providers. “Pushing for placement is the key to driving volume,” says Katz, who notes that a single piece of content on the Windows Media home page generates 100,000 streams.

EmailEmail Networks by Amy Corr, MediaPost Staff Writer Email networks have been around for some time now, managing opt-in email lists and executing campaigns for publishers and other clients. Agencies have recently started turning to email networks to help them reach their clients’ target audiences.

Penn Media, touted as the largest email newsletter network, has over 62 million opt-in subscribers in its 13 B2B and B2C categories. The network has worked with i-Traffic, FCB, Lot21, and others, serving the ads and tracking response data, which is then shared with clients.

Roy Weiss, EVP Marketing at Penn Media, says that agencies are realizing that email networks are an effective means of reaching a specific audience. “They’re still getting used to how to use email networks, but more and more people are recognizing them, and they continue to grow.” Another email network, EasyMailInteractive, selects a suitable list for its agency clients, manages the creative outsourcing, then tabulates and evaluates the results. Without naming his clients, Mike Holmes, President of EasyMailInteractive, said it is advantageous for the agencies to outsource the email marketing activities to companies that perform these tasks on a daily basis.

“I think our capabilities complement those of ad agencies very nicely,” he said. “Since email marketing agencies are immersed in email media planning and strategy every day, we have the knowledge, experience, and access to lists and technology. We can help ad agencies execute programs for their client much more cost effectively and with better results than they can produce themselves.”

“As email marketing becomes more prevalent, it may make sense for larger agencies to devote resources to developing these capabilities in-house,” Holmes added. “However, due to the cost and time required to develop these resources, it is likely that most agencies will find it more efficient to continue to outsource these services.”

Fattail, an email network comprising eight B2B categories, essentially reps publishers that maintain their own email lists. Fattail has a new software called AdBook, which has been embraced by agencies as well as Fattail’s other clientele. AdBook allows agencies to understand the combinations of characteristics of their email campaign, according to Jon Dwyer, VP, strategic initiatives at Fattail.

AdBook looks at trends that might not be looked at throughout an average campaign, like campaign goal and can track distinct creative (color scheme and placement of images) to see which ones work best. This software benefits the agencies by allowing them to manage data easily and saving agencies something they value very highly: time.

WirelessHandheld Hard Bodies by Adam Bernard, MediaPost Staff Writer Sports fans who want to know what players see and feel during a game may be in for a treat with new wireless technology from Swedish telecom equipment maker Ericsson. The company has come up with Event System, a technology that gives spectators at sports events a chance to follow the game more closely than ever. Cameras fixed to helmets of players and referees show a live video of what they see during the game on a spectator’s personal digital assistant (PDA) and a big overhead screen. Sensors attached to players’ bodies send information on their heart rate, showing how tired they are. Viewers may also use their terminals to be notified about goals scored in concurrent elimination hockey matches, see team rosters with player photo, age, weight, and number of goals scored, or chat on the Internet about their performance. They can also check the arena map with exits, restrooms and restaurants or replay goals or penalties.

In other news of large, hard-hitting, humans, Qualcomm is working with the World Wrestling Federation Entertainment to build content based on the WWF using Qualcomm’s BREW (binary runtime environment for wireless) platform. The BREW platform is an alternative to WAP (wireless application protocol)—a mobile Internet platform that is suitable for text but still has questions regarding how well it works for intensive mobile content.

From sports to sex, as pin-up pictures from adult entertainment company Playboy will be available to download to mobile phones this year. Wireless Entertainment Service Finland was picked to help Internet site Playboy.com, a majority owned subsidiary of Playboy Enterprises Inc., to put selected content online as mobile phone and Internet technologies converge. Belgium will be the first to start up this service, with Britain and the U.S. to follow.

iTVUpfront Presents Opportunities Jack Myers Report, MEDIA Exclusive As media planners and buyers forge their strategies for the coming upfront network television buying season, value-added services promise to be a more significant component of negotiations than ever before. As pricing variables among the major media buying organizations achieve relative parity, the differentiating factor is often the promotional and marketing assets that can be delivered along with the media buy. As the network marketplace becomes more cluttered than the cosmetics floor at Bloomingdale’s, these “gift with purchase” services can make the difference between being part of a media buy and being excluded.

Interactive television capabilities are at the forefront of buyers’ negotiations for value-added. Many networks have created viable interactive elements, most of which are synchronous online-plus-television content. The most active “two-screen” developments are in sports television, and media buyers looking to make a purchase of sports inventory on ESPN, Monday Night Football, NCAA sports programming, or other sports events will be negotiating for available synchronized online tie-ins.

More sports fans are now watching televised events while they track behind-the-scenes insights, commentary, and statistics online. They are participating in online contests, games, and trivia challenges as well as engaging in chat and instant messaging. In a soft sports marketplace, advertisers see an exceptional opportunity to gain a foothold in the emerging interactive-content arena, with virtually no risk and minimal out-of-pocket investment beyond a commitment to traditional ad spending.

Marketers and media buyers are also keeping a close eye on the interactive developments of satellite distributor DirecTV, which recently entered into an agreement to be purchased by its rival Echostar. DirecTV, Wink Communications, and NBC are launching the NBC Virtual Channel, a new interactive channel available only on the DirecTV service that offers viewers the latest news and interactive commerce from MSNBC, CNBC, and ShopNBC.

Because viewers can use their remote control to click on the channel’s commerce link to browse and purchase ShopNBC’s line of business electronic products such as computers, scanners and printers, there is an opportunity for traditional marketers to explore the potential of commerce applications in a controlled environment. Media buyers will have the opportunity to explore these opportunities with NBC salespeople as part of the upfront negotiation.

Starting in the first quarter of 2002, advertisers will have new opportunities on the NBC Virtual Channel in the form of interactive ads that will enable them to generate qualified leads. The NBC Virtual Channel joins Barnes & Noble.com, Instant Weather by The Weather Channel, ESPN Today, and the DirecTV Interactive Center as interactive virtual channels available to customers with the DirecTV service.

Most television networks have entered into agreements with Wink to enable enhanced commercials with a direct, simple interactive link requiring only household registration. More than 5 million homes are Wink-enabled, and the company plans to double that number by the end of 2002. Media buying groups will be encouraging clients and their agencies to develop Wink applications to be incorporated into commercial content, and developing more in-depth two-screen interactive relationships with key media suppliers.

Interactive capabilities and services will inevitably increase in demand and value. There will never be a better year than 2002 for expansion of interactive advertising development. The technology and content opportunities are developed. Programmers are receptive to incorporating these applications into media packages. Media buyers are seeking opportunities to enhance the creative aspects of media buys. Marketers are receptive to exploring new media opportunities that offer potential for future return-on-investment.