Media Buying Efficiencies Found

Publicis on Wednesday unveiled a new digital-advertising system that links together technologies from Google Inc., AOL, Microsoft Corp. and Yahoo Inc.

The system connects Publicis’s media-buying agencies with the ad space sold by the Web giants, according to The Wall Street Journal.

“We are putting the four competitors around the same table,” and “that will drive prices down so that we are using the money of our clients in the best possible way,” says Publicis Chief Executive Maurice Levy.

“We are not doing the deals only to do a deal,” Mr. Levy says. Digital revenue should represent more than 25% of the group’s total revenue by 2010 compared with 18% in the first quarter of this year, he says.

Ad Age has a more detailed account.

Here, Let Me Shorten That For You

Writer and scholar, Nicholas Carr, is having trouble concentrating.

So am I. Perhaps you are too.

As the media theorist Marshall McLuhan pointed out in the 1960s, media are not just passive channels of information. They supply the stuff of thought, but they also shape the process of thought. And what the Net seems to be doing is chipping away my capacity for concentration and contemplation. My mind now expects to take in information the way the Net distributes it: in a swiftly moving stream of particles. Once I was a scuba diver in the sea of words. Now I zip along the surface like a guy on a Jet Ski.

I made myself read every word of Carr’s piece in The Atlantic. It wasn’t too difficult. However, knowing what to do with his argument is.

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There are times when I want to close this machine and walk away. But that seems extreme. Even if I were to curtail all content production, would I not want to read several newspapers and magazine and maybe a few blogs online?

One obvious answer is to turn all disruptive applications off while reading. Although that’s far from perfect, given the cluttered, blinking, overly commercial nature of the sites I visit.

TV Bites Digital’s Hand. Stitches Needed.

TBS isn’t afraid to interrupt your flow. Not at all.

According to Ad Age, TBS is using an “overlay” during episodes of “Family Guy” meant to promote “The Bill Engvall Show.”

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Ad Age blames internet advertising for this development.

TBS’s chatty come-on offers yet another illustration of how consumers’ growing comfort with the way content is designed and displayed in digital venues is starting to affect the flow of advertising in more-traditional areas, particularly TV.

“I almost wonder if the ad overlays, which are becoming more and more ubiquitous on the digital video screen, are almost laying the groundwork for TV,” said John Moore, senior VP-director of ideas and innovation at Interpublic Group of Cos.’ Mullen.

Anchors Away

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According to The Wall Street Journal, square pegs don’t fit into round holes.

Walt Disney Co.’s ABC News is close to scrapping the current format of its daily “World News” Webcast, an online version of the evening news anchored by Charles Gibson, which the network trumpeted as a major step into its digital future when it launched two years ago.

Network executives and media buyers say that broadcast news suffers online when it is based on the old news model of a strong and authoritative anchor, like Mr. Gibson, escorting viewers through the day’s news. Online news consumers want to click around, reading and watching only the stories that interest them.

Social Media Is Counter-Intuitive And Other Neat Slides

[via Neil Perkin]

Ch-ch-ch-ch-Changes

In an animated discussion with Washington Post editors and reporters yesterday, Microsoft chief executive Steve Ballmer offered his far-ranging views of upcoming changes in technology and the media. Here’s a slice:

Q. What is your outlook for the future of media?

A. In the next 10 years, the whole world of media, communications and advertising are going to be turned upside down — my opinion.

Here are the premises I have. Number one, there will be no media consumption left in 10 years that is not delivered over an IP network. There will be no newspapers, no magazines that are delivered in paper form. Everything gets delivered in an electronic form.

Focus On Community

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According to The Wall Street Journal, Washington Post’s hyperlocal play, Loudoun Extra, has failed to attract its desired audience.

One reason: the team of outsiders didn’t do enough to familiarize itself with Loudoun County or engage its 270,000 residents.

This marks the first stain on Rob Curley’s resume. Curley is the newspaper industry’s nerd wonder. We took note of his progressive doings a year ago, after Fast Company profiled him.

He now decamps with five colleagues to take on an Internet venture for the Las Vegas Sun. “I was the one who was supposed to know we should be talking to Rotary Club meetings every day,” Mr. Curley said. “I dropped the ball. I won’t drop it in Vegas, dude.”

I’m interested in this story because “hyperlocal” is important to the future of marketing and media. As mass marketing fractures into a million pieces, hyperlocal marketing, enabled by the internet, is here to replace it.

Your Turn To Talk

From the head of Zues Jones comes some thought provoking material regarding the web as a less than perfect storytelling medium.

There’s no doubt that online advertising is generally pretty dire, but then the Web isn’t really a great medium for delivering traditional advertising. But even more importantly it’s absolutely the wrong medium if all you want to do is tell stories.

The web isn’t just a communications medium, it is a medium for interacting with people. Storytelling is inherently one-way, in fact, the main use for stories in the history of humans has been to teach. Using the Web for teaching and one-way dissemination of information are a waste its talents.

As a writer who is attracted to the web like a moth to flame, I find this insightful and useful. In this format, I think of myself as a writer first and a conversationalist second. And that may be limiting what AdPulp can become, so I need to pause and consider what it all means.

Last week, Rob Walker puzzled what is so special about a service that gets people “talking” in micro-bursts.

I just can’t get worked up about Twitter either way. Why do people have such extreme reactions to it?

According to the theory above, people come to the web to talk, not read, view or listen passively. People want to engage by creating stories with others, as they would in real life. When one tells a story in real life, other people add to it in real time (which can be annoying to the storyteller). Twitter mirrors this, whereas a blog is more traditional in its storytelling structure. On a blog a writer offers something, then comments come in, but it’s not a conversation just like email is not a conversation. IM and Twitter are conversations; thus, the excitement around them.

Wireless Leashes All the Rage

The other day we looked at the digital dive from an economic angle. In his latest column for Talent Zoo, Danny G. looks at the offline crowd through a different lens.

I recently became acquainted with a new couple. They’re upscale, college-educated folks, both in their early 40’s. She’s a nurse and he’s a home remodeler. Successful folks by any measure. Except for one major, tragic flaw: They’re not wired.

We need to keep in mind that there are still some jobs that don’t keep people chained to a desk and a computer all day. And they’re not all bricklayers or short-order cooks.

The same things we find so engaging about the web and other new technologies are the things others find so constricting–complexity, cost, incessancy, and the feeling of enslavement it all induces. Sometimes it gets to me, too. How did my wireless Internet connection become a leash?

Great fucking question. How did it?

And why aren’t we chewing through it?

Major Disconnect

Steve Rubel reminds us that there are millions of Americans missing out completely on the internet boom.

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The Non-RSS Subscription Model

My dad’s a retired dairy exec. He used to read The Milkweed, a dairy industry trade rag that’s been in continuos operation for 27 years. He relates to AdPulp through that lens. So, it was neat to see Peter Hardin, The Milkweed’s editor and publisher in this morning’s New York Times.

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The Milkweed has over 7500 subscribers and accepts no advertising. Which, of course, is a wonderful way of building trust with one’s audience.

I can’t help but wonder, would you trust us more if we stopped running ads? Would it make for a better pub?

A Billion Here, A Billion There

According to Ad Age, internet-ad revenue notched $21.2 billion in 2007, an annual growth rate of 26%.

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That was good enough for the medium to top radio, which was expected, but the figure also puts internet ahead of cable’s $20.9 billion take.

“We’ve learned not to be surprised by the vitality and vibrancy of internet advertising,” said David Doty, senior VP-thought leadership and marketing at the IAB.

For some perspective, let’s compare these numbers not to other media channels, but to spending on the Iraq War. We spend $12 billion a month on that effort. The internet is big, but it’s not that big.

Internet Gains Critical Mass

[via Armano’s Twitter stream]

Banner Blindness Leads To Lowballing

According to Valleywag, “prices in the online advertising’s world bargain bin are cratering.”

Owen Thomas of Valleywag writes:

The business of brokering ads is failing advertisers and publishers. Advertisers don’t want to spray their ads across the Web; they want to target them to the right audiences. Publishers, meanwhile, would like to see their products earning uninsulting rates. But what is sold cheaply is valued little.

Valleywag cites this PubMatic report, which claims that Web site monetization dropped by 23 percent in April.

Among the verticals, Social Networking led the plunge with monetization dropping 47 percent. Entertainment monetization dropped 17 percent. Gaming and Sports were down marginally (4 percent and 5 percent, respectively). Technology remained relatively flat, but is still off January highs.

Media Entities Rockin’ The Gold Tooth

Two of the nation’s most prominent African-American media organizations–Radio One (a division of Interactive One) and AllHipHop.com–today announced a five year deal to create the largest and most scaleable online advertising network targeting African-American consumers.

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The combined traffic of both entities will give advertisers access to more than 4 million monthly unique visitors and over 500 million page views.

“Our relationship with AllHipHop.com is another example of our ability to enable blue chip advertisers to reach African-Americans online, whether it is across social networks, online news outlets, or digital content providers,” said Alfred Liggins III, CEO of Radio One, Inc.

Content-Creator Buys Sunday Night Block

Media Rights Capitol, a content company backed by WPP, Goldman Sachs and AT&T has purchased the Sunday night slot from ailing CW network, which is jointly owned by CBS Corp. and Time Warner.

The Wall Street Journal says, it’s “unusual” to sell a stake in a block of prime-time programming to an outside entity.

Prime-time viewership on major English-language broadcast networks is down 9.6%, to an average of 8.3 million viewers this season, according to Nielsen Media Research. The CW is having a particularly hard time. The network’s season-to-date viewership is down 22%. It has attracted an average of only 1.1 million prime-time viewers on Sunday nights, according to Nielsen.

By buying into the broadcast-TV business, MRC is betting it can profit in a world where two-thirds of new shows don’t survive. MRC and the CW are planning to book two comedies and two dramas in the Sunday slot but declined to say what they would be. MRC says it plans to shift the CW’s target audience on that night from 18-to-34-year-olds to an 18-to-49 focus.

For more on MRC, see this New York Times article from over a year ago.

Online Display Space Heating Up

Microsoft wasn’t willing to pay a premium for Yahoo, a company that would have helped them compete against Google, but the Redmond software titan still intends to move aggressively into online advertising.

BusinessWeek has the story :

It may be impossible to catch Google in search advertising. The company dominates the market, taking in 77% of the revenues from those little text ads that show up alongside the results for Internet search queries. Microsoft, after years of trying, is at 5% of U.S. search revenue, according to search marketing firm Efficient Frontier.

But Microsoft has a fighting chance on several other fronts. Perhaps most important is display advertising, the colorful banner and video ads that run at the top or along the side of Web pages. Microsoft is among the leaders in the fragmented field, while Google is a bit player. Although the display market is smaller than search, it’s expected to grow faster over the next few years because of a surge in video ads. Market research firm IDC (IDC) figures that by 2012 the display market will double, to $15.1 billion; revenue from search will reach $17.6 billion.

“We’re very persistent,” said Ballmer at a wireless conference last year, “If we don’t get it right, we’ll keep coming and coming and coming.”

Engagement Mapping is one of the better tools in Microsoft’s shed.

The technology anonymously tracks cookies, those digital footprints left on PCs by Web sites, to see if a consumer saw display or video ads within a month of making that ultimate click. Then it places values on each related online ad, weighting things like videos more heavily, since they’re likely to have more impact.

Ben Winkler is a believer. He’s director of interactive media at the Ingenuity Media Group, part of ad firm The Martin Agency. He’s been testing the Microsoft technology for one of his clients, wireless provider Alltel. The technology, he says, shows that display ads have an impact that had never been clear before. As a result, he plans to advise clients to spend a greater share of their ad dollars on display vs. search ads.

The Bloatosphere Has Lots of Room for Real Reporting

Journalists Marc Glaser and William Bastone discuss Barstone’s site, The Smoking Gun and topics related, on NPR’s MediaShift site.

The Smoking Gun started 11 years ago as a side project for Village Voice organized-crime reporter William Bastone. It has since been sold to Time Warner, but its core mission and staff size hasn’t changed; it’s still three folks running the show, hunting down incriminating documents and digging up dirt.

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One of the reasons I’m pointing to this interview is Bastone’s call for original reporting.

There are a lot of people commenting on stuff and riffing on things and blogging, but actually reporters breaking stories on the Net — there are a lot fewer than I would expect.

I get a kick out of the Gawkers and Defamers of the world, but how much of that is a news story, they broke a news story. It really isn’t. It’s a high profile site, but can you identify a story that they broke? If you had asked me 10 years ago, I would have thought there would be a huge scrum for [breaking news online], and it may get to that point, but I don’t really see it.

This is something I think about regularly. I’d love to move to an original reporting format on AdPulp. The thing that prevents it (for now), is the fact that I already have an all consuming day job.

Wired Reaches For The Moon

Wired Editor Chris Anderson spoke to Jon Friedman from MarketWatch. His words have meaning for anyone directly involved with managing a brand today.

“The mission of this magazine is the same as it was in 1993 when it was founded,” he told me. “We’re NOT about technology — we’re about how technology is changing the world.”

He explained that Wired has two objectives for all of its stories: “Amaze us, and tell us something we’ve never seen before, in a way we’ve never seen before.”

Anderson bluntly shot down Wired’s reputation as the smartest magazine on the coffee table. “Being smart? That’s not in our mission,” he said. “Blowing minds is.”

In other words, stop selling me and start amazing me.

Journey to the Deepest Reaches of Internet Land

According to The New York Times marketers are looking increasingly to ad networks, which sell display advertising across groups of Web sites. Some networks offer targeted advertising; others, called vertical ad networks, include sites that focus on one subject, like travel or sports.

Imran Khan, an Internet analyst at JPMorgan Chase, estimates the top 20 ad networks earned $2 billion in 2007, or 14 percent of the $21.1 billion display market.

The reasons ad networks are thriving are price and improved technology. Ad networks charge much lower cost per thousand ads served (known as CPMs), as low as $4 on an ad network with some targeting, compared with $40 and up for some ads on premium sites like MSN or Yahoo.