• Ad Age, Tuesday, April 17, 2007 11:15 AM

Xerox is using viral videos, employee blogging, virtual research islands, quirky humor and offbeat sponsorships to push its marketing and brand-image boundaries. Its digital efforts are attempts to bring words such as "fun," "energetic" and even "exciting" to its stalwart brand image of quality and reliability.

Xerox's newest viral video uses three office-worker characters and oddball cost-cutting ideas, such as a downloadable digital garbage-eating goat and "everything" templates, to poke fun at the argument that color copies are too expensive. But the videos have yet to cause widespread pass-around. "It's not going to happen overnight," says Gary Peterson, an analyst with Gap Intelligence.

Petersen says the marketing changes go along with Xerox's strategy shift to reach the small- to medium-size business market. Barbara Basney, Xerox director-global advertising, cautions that while annual online spending has increased about 20%, the company still uses a "balanced approach" in its marketing.

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