The Fattening of America: It’s Not All Advertising’s Fault
Posted in: UncategorizedI once interviewed at an ad agency that had a manufacturer of corn syrup on its client roster. And while it didn’t make a difference in me getting the job or not, frankly, I was really turned off by that because I’ve read countless times how the abundance of corn and corn-related products in every step of the food chain has done a number on our health. And I’m a guy who’s done my share of casino marketing.
I’d forgotten all about that agency until I started leafing through The Fattening of America: How the Economy Makes Us Fat, If It Matters, and What to Do About It by Eric A. Finkelstein and Laurie Zuckerman.
I was sure that in this book, advertising and marketing would get the blame for America’s expanding waistlines, but the truth is more complicated than that. The authors examine every aspect of the way we live our lives these days, and how even today’s schools, jobs, and government policies have affected our collective health.
If you’re looking for a good examination of one major topic in our society, read The Fattening of America. There are lessons to be learned that relate to almost any client you have, or even your own lifestyle. And remember that we in advertising play a role in it all: we advertise the food, the grocery stores, the fast-food joints, the medications, the diet plans and the hospital services.
Special thanks to Anna at FSB Associates who provided me a copy for review.
Mind The Gap
Posted in: UncategorizedEver wonder what three hundred of “the most influential and successful websites” would look like if they were graphed to the greater Tokyo-area train map? No? Well, take a look anyway. The good people of Information Architects Japan have done a great job presenting a ton of information in a visually intriguing way. Each subway line (21 in all) represents a Web trend (e.g., the social networks line, the classic design line, the file storage line). All told, the map works as a handy thought-starter and crib sheet.
West Coast Optimism
Posted in: UncategorizedStuart Elliott’s Monday morning wake up call is all about how clients and Madison Avenue saw “the recession” coming a mile away and have already adjusted accordingly.
Whatever. Let’s click over to where the action is, shall we?
LA Times Staff Writer, Alana Semuels, paid a visit to the Rubicon Project’s offices, where “dozens of twentysomethings in jeans crowd around tables in one big room, hunched over laptops, typing away. A few play a Nintendo Wii game in the corner. One sips a beer.”
Investors may be jittery about the current economy, but Rubicon — a start-up online advertising company — isn’t worried. It hired most of its 37 employees in the last few months, and today it plans to announce it has received a new round of funding, bringing its total to $21 million in eight months.
Here’s Rubicon’s pitch to web publishers:
Zooming In On Hyperlocal
Posted in: UncategorizedYesterday at the second annual BlogSavannah UnConference, social media consultant and keynote speaker, Josh Hallett, said it was interesting to see how different cities adopt hyperlocal blogging. He mentioned that Tampa and Orlando (near his home) both have lots of hyperlocal bloggers.
One of the things I look for at a conference is memes. They’re often hanging there in the air, ripe for inspection.
As it happens, today I stumbled upon EveryBlock, an aggregator play in the hyperlocal segment.
The service is available in New York, Chicago and San Francisco, so I put Lincoln Square in the search box and bingo, the site returned news and images from the old ‘hood.
Specifically, EveryBlock returns updates on everything from business and liquor license applications to street closures. One article I found right away was this one on green building practices at an 18-unit condo development in the heart of Lincoln Square.
Rupe In Switzerland, Now Wants To Keep Paid Subscribers
Posted in: UncategorizedA couple weeks ago my subscription to the online version of The Wall Street Journal expired, then seamlessly auto-renewed. I don’t like auto-renew and didn’t know it was on. Add to this, the Journal’s move to a free content model supported by ads, per Rupe, and I said to myself, I hope they give me a refund when they do go free.
But, today The New York Times reports that Rupe said not so fast on the free thing. When you think about it, why be free when you have people like me on auto-renew? It makes sense to keep paid subscribers.
Here’s a more twisted reason to keep things the way they are:
Dow Jones executives argue that the firewall not only generates revenue, it also creates an elite audience of high-income business-oriented readers whom advertisers pay a premium to reach. The Journal has a million paying online subscribers, some of whom also subscribe to the paper in print.
Pretzel Logic
Posted in: UncategorizedThe New York Times is running an article that says advertisers are sticking with their network broadcast commitments despite the lack of new television programming, because there isn’t a better alternative at the moment.
In a column on Wednesday, Wayne Friedman, the West Coast editor of MediaPost, noted that broadcast television continues to deliver a significant audience.
“Where can advertisers turn?†Mr. Friedman wrote. “Not to the Internet right now; it’s not ready. Some money may go to cable, as well as syndication, or even local TV. But the bulk of TV advertising points will still remain on network TV.â€
The internet’s not ready? Harsh.
BusinessWeek.com Steps Up
Posted in: UncategorizedMedia Shift’s Mark Glaser spoke to BusinessWeek executive editor, John Byrne, about sweeping usability changes to the venerable magazine’s website.
In response to a question about upping participation from the user base, or community, Byrne says:
We have had a very rigourous, very lively reader involvement on the site for a long time. In any given month, roughly 15,000 people participate in conversations on our site, but they are largely hidden from view. You have to either go into a blog and see how people are responding, or you have to go into a forum to see how people are exchanging views, or go to the end of a story to see the comments on it. We want to elevate those conversations and make them more apparent to everyone that these conversations are occuring.
We are rewarding our readers for making thoughtful comments on our site by going to the reader and saying, “We like what you’re saying and want to feature it in a prominent way, can you send us a digital picture of yourself so we can put it on the home page.â€
This is about elevating our conversation and giving credence to the rhetoric that everyone has, that the web is a dialogue and not a lecture. The truth is that very few people are delivering on it, having reporters actively engage with readers or elevating comments and saying, “This is as important as any story we have, any video we have, any audio we have.â€
About Time
Posted in: UncategorizedAccording to Chicago Tribune, HBO is rolling out a new service today to allow subscribers to watch HBO programs, movies and sports shows on their computers.
The service will be offered first in Milwaukee and Green Bay, Wis., through HBO’s sister company Time Warner Cable, which is also part of the Time Warner Inc. media conglomerate.
The service is only available to HBO subscribers who also use Time Warner Cable for high-speed Internet access.
HBO is in talks to expand the service to other areas and also to other cable providers.
Legal Language Carved Out of Tribune’s Employee Manual
Posted in: UncategorizedReal estate mogul, Samuel Zell, is intent on changing the culture at The Tribune Company, his latest acquisition and first media company.
Zell tapped Randy Michaels, Tribune CEO for interactive and broadcasting, to rewrite the company’s employee manual–that lovely document workers snuggle up with at night.
According to Los Angeles Times (a Tribune paper), the document–which shrunk from 11,519 words to 3,663 words–is nothing like the mind-numbing, lawyered gobbledygook in most corporate manuals. Consider the opening:
“Rule #1: Use your best judgment.”
“Rule #2: See Rule 1.”
It appears that Zell is using his best judgment. Should his employees do the same, Tribland will be, no doubt, be a happy place.
VCs Wrestle for Control of CNET
Posted in: UncategorizedAccording to The Wall Street Journal, Jana Partners LLC, which holds an 8.1% stake in CNET Networks Inc. plans to nominate seven people to the San Francisco company’s board, saying there is a need to revitalize the “underperforming company.”
In a filing with the Securities and Exchange Commission, Jana said its nominees — including a former AOL chief executive, Jon Miller — will increase shareholder value at CNET by leveraging the company’s editorial content and staff, broadening the company’s properties and by focusing on return on investment. Jana wants to increase CNET’s board size to 13 directors from eight. Jana said it believes CNET has “significantly lagged peers in value creation and performance.”
CNET said in a press release that it has considered Jana’s proposal for board seats and determined that it is improper under its bylaws.
Popularity Pays
Posted in: UncategorizedEdward Wasserman, professor of journalism ethics at Washington and Lee University, argues in the Miami Herald that journalism ought not be subject to the brutal trappings of online metrics.
Under the new rules, the commercial value of specific editorial offerings is estimated with precision, rewards and punishments doled out accordingly, and coverage cut to fit.
The problem with online Popularity Pay is it that it mistakes journalism for a consumer product, and conflates value with sales volume. Journalists don’t peddle goods, they offer a professional service, a relationship. The news audience renews that relationship to get information and insight on matters it trusts journalists to alert it to, even though the news may be disquieting or hard to grasp.
Gawker Media already operates on the Popularity Pay model. Nick Denton’s goal is to discourage “self indulgent” posts and “mind-numbing frequency” in favor of “linkworthy material.”
Niche Doesn’t Mean Small
Posted in: UncategorizedAccording to The Wall Street Journal, Liberty Media is paying more than $100 million to buy the stake of BodyBuilding.com from the site’s founding family and a private-equity firm.
Once known primarily as an investor in media companies, Liberty has taken steps in recent years to become more of an operator of its own businesses. In the past couple of years it has assembled a sizable portfolio of Internet ventures to complement its QVC home-shopping network, whose growth has slowed as retail sales shift to the Web. Last year, Liberty purchased Buyseasons Inc., which operates an online costume site, and a controlling stake in Backcountry.com, an outdoor and action-sports retailer. In 2006 Liberty paid nearly $500 million to buy Internet flower and food seller Provide Commerce Inc.
Liberty Chief Executive Gregory Maffei said the company is committed to acquiring more high-growth Internet businesses targeted at narrow customer segments, viewing them as highly attractive as audiences fragment online. “We would do as many such deals as we could get our hands on,” he said, stressing that the number of independent companies that meet those criteria is relatively small.
These are big numbers dished out by a media company for what is essentially a retail business, but online. We live in interesting times.
Consumers Want Digital Utility, Not Advertising
Posted in: UncategorizedMore than two-thirds of consumers who use the internet have used it to research package-goods products, according to a new survey by Prospectiv, a firm that provides online customer leads for marketers.
Of the consumers who use the internet to research package-goods brands (48%) do so primarily to get product information. Another 46% use the internet to seek savings or coupons, while 6% are primarily looking for tips on how to use the product.
[via Ad Age]
Karpian Wisdom Floweth
Posted in: UncategorizedScott Karp of Publishing 2.0 has some great advice, as always, for those working to understand the new advertising culturescape.
Google turned search advertising into the most profitable media business on the web by following the basic principle that advertising must create value for consumers. Search advertising is so powerful because the ads are relevant and USEFUL.
The most successful new advertising models will be those that create huge value for consumers, not those that manipulate users or violate their privacy (i.e. be like Google, not Facebook).
Spread Real Wings If You Want To Fly
Posted in: UncategorizedI thoroughly enjoyed reading about Garden & Gun’s new editor, Sid Evans, in The New York Times this morning.
Here’s the heart of the piece:
“There’s a kind of arrogance here that anybody who’s not in New York isn’t here for a reason,†Mr. Evans said last week over elk chops and bourbon at Henry’s End, a restaurant in Brooklyn Heights near his apartment. “You really do begin to believe it, that the only smart people in the media are in New York.â€
The same arrogance in media exists in advertising, despite the fact that many of the nation’s best agencies exist in Miami/Boulder, Portland, Minneapolis, Seattle, Richmond, Boston, Austin and San Francisco.
When Consumers Are At The Controls
Posted in: UncategorizedTV is a totally passive medium. The interwebs is the polar opposite. So, it’s no surprise to learn that Internet video watchers are 47 percent more engaged by the advertising they encounter than traditional TV viewers.
The same study found that viewers were 25 percent more engaged in the content on the shows, as well.
[via ars technica]
The 30-Second Spot Is Alive, Well, And Expensive
Posted in: UncategorizedYou’d think that smaller TV audiences would lead to falling ad prices, right? Not so, according to this story in the New York Post:
Although it seems counterintuitive, it’s the law of supply and demand. As the TV audience shrinks, advertisers have to buy more ads to reach their target number of viewers. But that increased demand for ad slots creates scarcity, which in turn leads to rate hikes.
In the fourth quarter, advertisers on average paid 18 percent more for primetime “scatter,” or spots purchased on the open market, compared with the year-earlier period, ac- cording to SQAD Inc., a media research firm that tracks TV ad costs.
“I think this is going to be the tipping point where advertisers will sit there and really evaluate what they’re getting for their money,” said Jason Kanefsky, a senior broadcast buyer at ad-buying firm MPG.
So advertisers just keep paying more for more ads to reach the same audience. I can’t quite figure it out. Can you?
Media Resurrection
Posted in: UncategorizedAccording to The New York Times, real estate tycoon, Samuel Zell, is shaking things up at The Tribune Company. After completing an $8.2 billion deal on Thursday that makes the media company a privately held operation, Zell made himself chief executive, announced a new set of directors and managers, and declared that the troubled company would look to raise revenue.
He disparaged the conventional wisdom that the newspaper industry — and the Tribune Company in particular — was suffering through a long, unavoidable contraction, and repeatedly stated that Tribune could increase its revenues.
“I’m sick and tired of listening to everybody talk about and commiserate about the end of newspapers,†he said. “They ain’t ended. And they’re not going to be.â€
He said of Tribune, “I think it’s a very low-risk investment, but this wouldn’t be the first time that my opinion diverged from everybody else’s.â€
“What this company needs is an owner,†he said later. “It needs someone who accepts the responsibility for what this company does.â€
With an estimated net worth of $6 billion, Zell is the 52nd richest American as ranked by Forbes. He’s also a blast from the past—a time when newspapers were run by strong leaders, not by committee.