June 14, 2006
Organic Starts Emerging Platforms Practice
NEW YORK Organic said it would start an emerging platforms practice to help clients determine the opportunities in social networks, video games, video on demand and other new digital channels.
The new group will bring together practice leaders Organic has developed in these areas, combined with its "persona room" to form the Organic Experience Lab, the agency said. Organic has developed persona rooms for clients like DaimlerChrysler that replicate the living and working areas of target audiences.
To lead the unit, the San Francisco-based Omnicom Group shop hired Chad Stoller, who served 13 years at The Arnell Group, most recently as director of communications solutions. At Organic, he will be executive director of emerging platforms, reporting to CEO Mark Kingdon.
"Clients really want to understand how they become integrated in the digital lifestyle," said Stoller.
With the explosion of digital media, several agencies have begun emerging platforms practice areas. Interpublic Group, for instance, has set up an emerging media lab in Los Angeles to introduce clients to new platforms.
Posted by richard ting at June 14, 2006, 03:28 PM
January 16, 2006
Create a TV Ad Campaign For $500
Headquartered in Los Angeles, Spot Runner is the first Internet-based ad agency that makes it easy and affordable for local businesses to advertise on TV. With Spot Runner's revolutionary approach to commercial production, media planning and media buying services, local businesses now have access to a powerful marketing tool that was previously out of their reach. Advertisers can choose from a comprehensive library of professionally produced ads which can be viewed, purchased and personalized in a simple process online. With its proprietary media planning engine, Spot Runner also creates customized media plans by using some basic information entered by the advertiser, such as their industry, target demographics and budget. The entire process, which can traditionally take months and hundreds of thousands of dollars, now takes just days and at a fraction of the cost. Spot Runner manages each account by securing the ad buy, placing and tracking the ads, and analyzing viewership and demographic information.
Posted by richard ting at January 16, 2006, 07:52 PM
December 08, 2004
Pondering Podvertising Possibilities
Wednesday, December 08, 2004
By Steve Rubel, CooperKatz & Company
Savvy online marketers have a whole new medium to exploit: It's called "podcasting." Could this be the next BMWFilms.com?
You can?t walk 50 feet in a major city without seeing them. You can spot them a mile away by the dual white wires that dangle from their ears. They?re young, technically savvy, loyal, enthusiastic card-carrying members of the burgeoning iPod Nation. They represent an attractive demographic of early adopter influencers that marketers covet. And, thanks to an emerging revolution in online audio content called podcasting, there are all kinds of new and exciting ways to reach them through ?podvertising.?
The iPod is white hot this holiday season. Apple shipped more than two million of the portable audio players in the most recent quarter ending in September. Analysts now estimate that the Cupertino, California-based company will sell another four million devices this quarter alone. A recent Merrill Lynch report even noted that iPod adoption is outpacing the Sony Walkman?s rapid rise during the 1980s.
As the iPod Nation swells, it is spawning a completely new online content medium called podcasting -- a play on the words broadcasting and Web-casting. A podcast is a time-shifted audio program that can be created using a simple microphone-equipped PC. It is distributed to subscribers via RSS. Users who subscribe to a program's feed receive new episodes on their Mac or PC as they are released. The audio file is then subsequently automatically synched to an iPod or equivalent MP3 digital music player, allowing the subscriber to listen to the time-shifted program at their convenience.
Podcasting was hatched last summer by former MTV VJ-turned-entrepreneur Adam Curry. Since then it has been widely evangelized and adopted by the blogging community. In just two months the number of Google results for the term ?podcasting? jumped nearly 1,000 percent, from 5,950 pages in early October to more than 500,000 pages this month. Surprisingly Google still doesn?t even recognize the term (it asks if you mean ?broadcasting?), but don?t take that lack of recognition to mean that the content and audiences aren't there yet.
Posted by richard ting at December 08, 2004, 12:22 PM
August 21, 2004
The Future of Media, MIT-Style
By David Cohen
August 18, 2004
Last week, I visited the MIT Media Laboratory in Cambridge, MA. Though Interpublic and McCann have been financial supporters of the lab throughout the years, I've never had the opportunity to visit and tour the facilities. With some clients funding research, I was given able to accompany a group of visitors to the lab for a one-day immersion session.
All I can say is, that's some very cool stuff.
Though it's impossible to grasp, in an eight-hour visit, all the work being conducted at the lab, we did get to sample many different research areas. Some of that research is direct applicable to interactive marketers.
Our guide was Dr. John Maeda, associate professor of design and computation and director of the Physical Language Workshop at the Media Lab. Maeda is spearheading research that embraces the concept of "simplicity." As reported by The New York Times (May 20, 2004), "Despite the lip service paid to 'ease of use,' 'plug and play,' and 'one-click shopping,' simplicity is an endangered quality in the digital world... and it is time to break free from technology's intimidating complexity." Think Google: simple, quick, intuitive.
Posted by richard ting at August 21, 2004, 09:57 PM
August 02, 2004
Agency Biggies Struggle To Define Role In Rapidly Evolving Interactive Market
by Ross Fadner
Interactive agency bigwigs convened Wednesday at Jupiter Media's annual Advertising Forum in New York to discuss--and quite possibly define--the changing role of ad agencies in a medium that leans heavily on technology and publisher-side solutions.
An interactive ad campaign can involve the effort of marketers, publishers, agencies, third-party technology providers, third-party consultants, campaign optimizers, the ad solutions departments of major publishers and portals such as Google, MSN, and Yahoo!, and--oh yeah--interactive ad shops.
Sarah Fay, president-CEO of Carat Interactive, says there's definitely an element of "co-opetition" going on between agencies and the varying service and solutions providers. "[Carat Interactive] believes in the agencies' role as more of a strategist/consultant," she said. "We live in a world where you need to integrate or die, and you're taken to task if you're not playing ball."
Posted by richard ting at August 02, 2004, 12:10 PM
Traditional ad agencies continue to shun online
Susie Harwood
Traditional ad agencies are still shunning online advertising, forcing media owners to go direct to clients, despite the massive increase in online ad spend. A new breakdown of ad sales figures published by the Interactive Advertising Bureau for the first time revealed that 49% of the £353.6m spent online last year was direct from clients, and only 51% through agencies. Danny Meadows-Klue, chief executive of the IAB, said that this is disproportionate when compared to traditional media channels, where the majority - somewhere between 80% and 90% - of media spend goes through agencies.
'We want online advertising to be a very easy decision for every client and to do that we need to get agencies more involved,' he said. But Greg Paine, director of strategy for interactive marketing at AOL UK, said that although he is seeing more work come through agencies than last year, it's not always easy to get access to them. 'We still have enormous problems getting to talk to strategic planners at traditional agencies who are in charge of budgets. Some of them just don't want to know.' Andrew Walmsley, COO of digital media agency i-level, agreed that traditional agencies haven't done a very good job on the digital side. 'You might think that as an online specialist we're delighted about this, as it enables us to win more work. But the reality is it makes the sector look bad.' But Nigel Gwilliam, head of digital at the Institute of Practitioners in Advertising, argued that one of the reasons that online sees a higher volume of direct work is because tools like search have a low entry threshold. This can make it much easier and cheaper for small businesses to market themselves. 'We shouldn't discredit the fact that small businesses can market themselves on the Web,' he said. 'I think it's a very positive thing.'
Posted by richard ting at August 02, 2004, 12:08 PM
Marketers Reveal Dark Side Of Search, Cast Shadow On Agencies
by Ross Fadner
Search engine marketing (SEM) is helping to put the interactive medium back on the map. But as a panel of search marketing professionals noted recently, all is not rosy in the hallowed land of search. Thursday, interactive agencies received a considerable amount of criticism from search engine marketers speaking at the Jupiter Media Advertising Forum in New York City. Kevin Ryan, director of market development and worldwide agency relations for Wahlstrom Interactive, kicked off his presentation by sharing his favorite quotes from top-level SEM executives regarding the role of interactive agencies in search engine marketing. Among them was this direct hit from the CEO of an unnamed, top five SEM firm: "Agencies don't get it. They just don't get it, and they never will." Ryan said that advertisers have three choices when starting a search marketing campaign, they can either: staff up, hire an SEM firm, or force their agency to adapt. The panel, consisting almost exclusively of search engine marketing firm executives, unanimously agreed that the second was the best of the three alternatives presented by Ryan. Ryan pointed out that the tenuous relationship between agencies and SEM firms is exacerbated by clients' overall lack of understanding of SEM. Differences and difficulties in fee structures lie at the crux of the problem. SEM firms think agencies receive too much from sales commissions, while agencies feel that SEM firms demand too much from an already limited budget. Ryan noted that the industry is in need of education and industry standards from organizations like the Interactive Advertising Bureau (IAB) and the Search Engine Marketing Professionals Organization (SEMPO) to help solve these disputes. Dana Todd, co-founder of SEM and Web development outfit SiteLab International, opined that because the search marketing landscape is so cluttered and confusing, the commission model itself might be in jeopardy because "the financial model is so tricky on both sides." Todd added that relationships between SEM firms and agencies can be fundamentally flawed. "You can't control what you can't understand," she said of interactive agencies. Todd said that agencies need to understand that SEM isn't just media buying. As Shari Thurow, Web master and marketing director for GrantasticDesigns.com said, "The hot thing is search advertising. Search engine marketing is not just search advertising," but search engine optimization as well. Thurow noted that this involves boosting clients' natural search results as well, by optimizing their Web sites for keyword crawlers. Clients are often reluctant to do this, but she said that Web development services are crucial to boosting free traffic from search engines. She also noted that agencies are often unwilling to pay for these specialized services. While the bonds tying agencies to SEM firms may be fragile, the interactive industry must not forget that it is still struggling through its recent turnaround on the shoulders of search. As Jupiter analyst Gary Stein noted, "(search marketing) is shaping up to be a marathon, but the last few meters have been treated like a 10K," meaning that SEM firms and interactive shops would do well to slow down, play nicely together, and have faith in the industry's ability to help them work out these kinks.
Posted by richard ting at August 02, 2004, 11:00 AM
April 05, 2004
Yahoo! Revs Up Brand Campaign: 'Life Engine'
Yahoo! positions itself as a "Life Engine" in a new brand campaign debuting on April 8 on television and the Web. The company's search, mail, shopping, and music services are highlighted in the first four TV spots; the trademark yodel remains.
Posted by richard ting at April 05, 2004, 10:49 AM
March 22, 2004
Time to Reinvent the Ad Agency?
Time to Reinvent the Ad Agency?
By Sean Carton
March 22, 2004
www.clickz.com/experts/ad/lead_edge/article.php/3328541
Should the ad agency be reinvented? These days, that question may seem pretty pointless. We've changed to deal with the Internet's challenges. Take a hard look at your agency (or your internal marketing department) and examine how things get done. You may realize things aren't as different as you thought. That's bad.
Most agencies now handle traditional and interactive through parallel structures. Sure, account supervisors may oversee an entire account through all channels (to some extent), but in the trenches most agencies maintain parallel structures: one runs online stuff, the other runs offline. Creative functions the same way. There are traditional creatives and interactive creatives. There's some convergence on the media end, but most agencies assign specific media to media buyers.
Where does search engine marketing (SEM) fit in? Mobile? Where does Web development (not ad production) fit? Where does database management and its links to CRM, direct e-mail, and sales force automation fit? Who handles strategy? Who directs creative? Who really understands all that's going on?
To be fair, things are much more complicated than 10 years ago. We still work in traditional media (radio, TV, print) but also have content with a host of digital (and soon-to-be digital) options. Web sites, e-mail, SEM, advergaming, product placement, and VOD. Challenges from DVR, digital satellite, and direct mail. And there's relatively esoteric online media, such as blogs, RSS, and viral marketing. Saying there's a lot of stuff to consider is an understatement.
Many traditional media are going digital, threatening the way advertising's been done for a nearly a century. Addressable cable boxes and capabilities to targeting TV advertising are on the horizon. DVRs provide new possibilities for on-demand, long-form spots. VOD is cropping up. Though it's mostly ad-free (at least on my Comcast network), that's bound to change and create new challenges. Even print isn't immune. New developments that allow customizable, high-res PDF creation on the fly offer a host of new possibilities for localized national advertising.
The list goes on. Like it or not, technology has a major impact on how advertising works. Yet advertising has been slow to respond. We still don't have an industry-accepted definition of an online impression (it's being worked on), much less a definition of a TV "impression" for addressable cable (that's being worked on, too). Meanwhile, savvy clients accustomed to the Internet's accountability are demanding the same accountability in traditional media. It just isn't there.
All in all, the traditional agency model is in trouble in at least five ways:
Niche providers: Look at your agency. Unless you're a big multinational with a whole stable of linked companies providing every service imaginable, you probably outsource many core tasks. E-mail marketing companies, SEM companies, and Web development companies do a lot of the work, and take lots income, for many agencies. Even media companies are getting in the mix. Many agencies outsource media buying to big buying companies. Many of them are adding creative to their mix, effectively competing with the agencies.
Measurability: As stated above, savvy clients are used to actually measuring how many people saw an ad, at least online. The growth in pay-for-performance online advertising habituates clients to only paying for leads they get. Expectations change and quarter-by-quarter return on investment (ROI) goals are set. Measuring services are pressured to come up with better metrics. As a result, justifying what we do is getting harder. As addressable set-top boxes come down the pike, things will only get hotter.
Data: A byproduct of all this measurement is measured data. Who owns it? You? The client? The third-party server? The cable company? Who can access it? How can it be used? Does your agency have database management capabilities to store, much less analyze, it? Can it be shared among various media systems? Will there be standardization? If you can't yet answer these questions, you'll probably soon stay up nights trying to answer them.
Technology: Keeping up with the latest media offerings and capabilities is a huge task. Even if someone in your agency is tasked with keeping up on the latest, getting that knowledge to others who need it is a huge challenge.
Because it's so tough to keep up, many agencies turn to niche companies (e-mail, SEO, CRM, Web development) to handle technological stuff. These companies can be Trojan horses when they're in front of a client who suddenly realizes she's paying an agency to be a middleman but it isn't adding much (perceived) value.
If agencies want to get back into the game, they must invest substantial time and financial resources. Along comes another technology, the cycle repeats. But resisting technology doesn't work.
Payment: Commission-based compensation has been on the way out for a while. Most work today is on a fee or project basis. Longer relationships aren't as common. Spending $50,000 to pitch a $150,000 project doesn't make sense. Outsourcing drains income (more important than bogus "billings"), yet agency structure hasn't changed. The risk factor is way up, while margins are going way down.
What's the solution? Options for agencies to study to plan future strategies:
Concentrate on creative: Losing money on outsourcing and hemorrhaging on the demand of today's media climate? Your structure makes multiple-layer account management a profit-suck? Cut back. Focus on creative. Creativity will never be a commodity.
Concentrate on strategy and outsourcing management: The flip side is to get rid of creative and become a brand strategy and marketing management company. Fire the creatives, ditch media buying, outsource everything. Focus on managing the relationship with the client and with your stable of vendors. Think of yourself as a producer (in the film/TV sense), not a one-stop shop.
Find a strategic resource who understands the new world: Only keep account leaders who fully understand new challenges. Tough, but manageable if you do what's necessary. With management that sees the big picture, other pieces could fall into place.
Define roles and boundaries, and get it in writing: Another temporary patch is to clearly define roles and responsibilities of everyone in the agency and all outsourced vendors. Don't assume vendors won't poach your clients. Don't assume everyone in your agency knows what to do. Trust, but verify.
Give up and concentrate on one channel: A risky strategy, but worth considering. Don't want to deal with traditional? Don't. Don't want to deal with the Net? Don't. It may be tough (or impossible) to land large, full-service accounts, but if you pick your clients correctly and become an expert in one thing, it could work.
Do everything: Become a multinational conglomerate. Way easier said than done, but the current climate may validate the benefits of big holding companies. However, if they can't correctly manage the whole advertising supply chain, they're in same boat as the small players.
Educate and collaborate: Probably the most achievable and immediately actionable of all strategies. Everyone, client and agency, is in the same boat. Have the courage to raise these issues with clients. Work together to come up with the best solution. You may be surprised at the response. Recognizing there's a problem is the first step to recovery.
Posted by richard ting at March 22, 2004, 03:39 PM
March 18, 2004
2003 Global Brands Scoreboard
Check it out at:
http://bwnt.businessweek.com/brand/2003/index.asp
Posted by richard ting at March 18, 2004, 03:21 PM
New Social Site: AARP for GenY
By Janis Mara | March 18, 2004
A new invitation-only social networking site hopes to profit by letting marketers reach its young, professional members.
SmallPlanet.net, billed by its CEO as a sort of online AARP for the 18-to-35 set, snapped up more than 1,500 members and seven marketing partners since its soft launch Mar.10.
Social networking sites are one of the most talked-about current trends, with a flurry of deals taking place in early March. The issue remains as to how these sites are going to make money, with different models and plans being attempted. For example, Tribe.net, a networking site with a classifieds model, partnered with CareerBuilder.com to give consumers access to job listings earlier this month.
L.A.-based SmallPlanet.net plans to address this issue by letting marketers offer its members discounts on goods and services such as gym memberships, car insurance, health insurance and other such items, according to CEO Hunter Heaney.
"The providers get business at an extremely low acquisition cost, we get a percentage and our members get a great deal," sand Heaney.
The site caters to young professionals in the 18-to-35-year-old demographic, who find themselves faced with inordinately high car insurance rates and, often, difficulty finding health insurance, Heaney said. This follows the model of organizations such as the AARP or AAA, which offer group discounts to their members.
Members vote on the site as to what goods and services they want, and the company then finds marketers interested in reaching the group and posts the relevant information on the site. The invitation-only site is free to members, who were initially seeded by friends and associates of its three founders, all of whom fit the age demographic. Heaney's partners are Diego Reyes and Gabriel Weinert.
"The idea is that if everybody's invited in by someone else you have a better-quality network. We won't grow as quickly, but it's more important to have loyal members," Heaney said.
In its first week, SmallPlanet.net has negotiated discount contracts with six L.A. gyms, including the upscale Sports Club and Bodies in Motion, for its members. The L.A. office of Andreini Insurance Company also signed a contract.
The meat and potatoes income will come from national providers such as credit card companies, insurance companies and manufacturers of the high-end, cutting edge technologies such as camera phones and music delivery systems beloved by this demographic, Heaney said.
Though ads have a strong presence on many social networking sites, including Friendster and Myspace.com, Heaney said SmallPlanet would accept no advertising.
"We want to find providers who will offer fair and honest deals. We don't want to seem like we're influenced by what companies might spend in terms of advertising dollars," Heaney said.
Nate Elliott, associate analyst with Jupiter Research, which shares a parent with this publication, says it's a creative idea. "Most social networking sites are looking to create revenue through advertising, which would be a difficult way to build a business, or dating, which won't work," he said. "They're looking at a different idea of making money and that clearly is a first step."