Microsoft Inks Deal For Advertising Watermarking Method

by Laurie Sullivan, Wednesday, Aug 15, 2007 5:01 AM ET

ACTIVATED CONTENT HAS DEVELOPED AUDIO watermarking technology through a new license agreement with Microsoft announced Wednesday. The technology lets advertisers connect with consumers on a variety of mobile devices and Internet protocol television (IPTV). Audio watermarking plays an important role in tracking digital content or protecting media files from piracy, but Activated Content will offer the technology to advertisers that want to connect with consumers through broadcast, streaming or downloadable media. The watermarking technology developed by Microsoft's research lab lets Activated Content insert advertisements and promotions in digital audio content. Software tools embedded in portable devices, such as Apple's iPhone or Palm's Treo, encode and extract the data embedded in audio files that run either on open source or Windows operating systems. "It's like attaching metadata to a picture taken with a digital camera," says Louis Carbonneau, general manager for the Intellectual Property Licensing Group at Microsoft. "You can send the picture to your friends, and they can open and view it whether they have a Mac or PC." The technology listens to the audio, recognizes the encoded watermark and directs the listener through a link to an advertisement or promotional offering without interrupting or disrupting the audio or video content in movies, videos or high-definition radio on mobile devices, laptops or IPTV. "The technology works on any device with a smart chip in it," says Eric Silberstein, CEO at Activated Content, which supports companies like Sony Music and Universal. Technology advancements made possible by a joint effort between Microsoft and Activated Content required developing a method to insert digital advertising links into audio files without affecting the size or the quality, or drawing too much juice from the battery as the file encodes and decodes. But it's going to take more than technology to make this advertising model work. It could mean a cultural change that requires consumers to seek out the advertisement for more information or to buy a product or a service. Consumers in Japan would likely accept the technology today, while the U.S. lags about six months behind. Evan Hill, Activated Content chief technology officer, says it's difficult to predict consumer behavior and timing on adoption, but there are some customers trying the technology. An early advertising model might let consumers purchase a song heard on the radio with a click of a button. Many of the details surrounding these advertising models are still being worked out. Successful online and mobile advertising requires a disruptive technology--but not at the risk of creating consumer backlash, says Marissa Gluck, managing partner at Radar Research in Los Angeles. "The problem with mobile ads is no one knows how to effectively deliver, price and measure it," she says. "There's high demand, and advertisers are willing to experiment because they've been using 30-second spots for about 50 years, but it's fraught with logistical complexities, such as the buying, the measuring and the optimization processes." Link to MediaPost Article

Nokia adds Microsoft's PlayReady DRM to upcoming devices

Nokia appears to be making some interesting moves as of late. Following rumors that the company will hazard a foray into the world of digital music sales, the Finnish mobile manufacturer has signed a deal with Microsoft to utilize its PlayReady DRM scheme. The technology, which is file-format-independent, is specifically targeted for use with mobile devices, and is intended to strengthen "security" on a wide variety of content such as music, videos, games, ringtones, and images. The DRM is backwards compatible with the existing Windows Media 10 file management, and will be implemented on upcoming S60 and Series 40 Nokia devices beginning in 2008. It seems at least somewhat possible that this arrangement could be related to the recent whisperings of Nokia's iTunes-esque plans, as DRM has already been hinted at for the supposed forthcoming service. Perhaps on August 29th all will be revealed -- but only Olli-Pekka Kallasvuo knows for sure.

Link to Engadget Article

Google Again Leads List of World’s Top Web Properties

Google continues to lead as the most popular web property worldwide, reaching almost 70% of internet users, according to the worldwide rankings of top web properties from comScore’s World Metrix service.

Overall, some 772 million people age 15 or older, or 16% of the worldwide population of that age group, were online worldwide in May (accessing the internet from a home or work location in the previous 30 days) - up from 766 million in April, comScore reported.

According to the comScore study:

• Both Google and the second-leading property, Microsoft, increased their number of unique visitors 2% from April to May.
• The top three properties each boasted more than 20 average visits per visitor in May: Google with 27, Microsoft with 23, and Yahoo with 22.
• The fastest-growing property in the top 10 most-visited sites was Apple Inc.; its total worldwide visitation grew 5%. That increase precedes the recent US release of the Apple iPhone.
• eBay and Amazon - ranked as the sixth and eighth top internet properties. respectively - both experienced gains of 4% from April to May.
• Online retail sites also benefited from an upsurge in online shopping in May, in large part due to Mother’s Day and the onset of the summer holiday season:
  • Price-comparison group Ciao Sites was the fastest-growing property, increasing 31%, to 29.6 million visitors.
  • Priceline.com Inc. grew 15%, to 23.1 million visitors.
  • Online cataloging property Karstadt-Quelle grew its worldwide traffic 15%

• Social-networking site Facebook.com grew to become the largest of the Top 10 gaining properties in terms of monthly unique visitors: The site was the second fastest-growing site in May, increasing its total worldwide traffic 22%.

Facebook’s growth is especially significant because of its already-large visitor base: It garners at least five times more visits per visitor than any of the other top 10 fastest-growing sites.

Link to Marketing Charts Article

Microsoft Triggers Zune-Focused Hip Hop Shows

Microsoft is now broadening its Zune marketing campaign with a collection of hip hop shows. The "Zune Live at the BBQ" concerts are being held in Los Angeles, Chicago, and New York starting this month. The events will feature music, games, and food, as well as a number of Zune-related tie-ins. The action begins in Los Angeles on the 12th, followed by Chicago on the 22nd and New York on August 4th. Participating artists include Common, David Banner, UGK, Mos Def, Bilal, Clipse, Collie Budz, E-40, Cham, and Large Professor, among others. "Live at the BBQ is helping to bring hip-hop back to a golden age where records were produced and iconic artists rose directly out of their local communities," said UGK member Bun B. Microsoft promised a viral invitation process, one that includes an online registration component. More information - including details of shows in other cities - may emerge over the coming weeks.

Link to Digital Music News Article