Pepsi Wakes Up NYC Commuters

Provides Diet Max Shots -- and Whack-A-Yawn -- at Grand Central

By Emily Tan

Published: August 06, 2007

Event: Diet Pepsi Max Wake Up Station
Date: Aug. 1-2
Marketer: Diet Pepsi Max
Venue: Grand Central's Vanderbilt Hall

Feeling sleepy this Monday, or maybe by midweek you just get rundown in your stuffy cubicle? Pepsi hopes to cure your yawns, as you've probably seen in its latest ads for Diet Pepsi Max.

A Diet Pepsi Max Sample Girl pouring out a shot of the ginseng and caffeine soft drink.

Photo Credit: Gregory Palmer

But an ad is one thing, so Pepsi set up shop at Grand Central's Vanderbilt Hall with its newest soft drink to see if it could rouse sleepy-eyed New Yorkers and out-of-towners last week.

Extending campaign
Extending its "Wake Up People" campaign, those passing the Diet Pepsi Max Wake Up Station were treated to the drink, served in plastic Pepsi shot cups, to discover what ginseng and more caffeine than a cup of coffee could do.

The station looked more like a mini club bar, equipped with bright white and blue lights, a large flat screen showcasing its new TV spot and endless bottles of Diet Pepsi Max. It also had a number of misters (that couldn't be used indoors) that sprayed people with water (not Pepsi) to wake up their senses.

One passer-by tries her luck at Whack-A-Yawn.

Photo Credit: Gregory Palmer

After sampling the drink, people could test their hitting skills at a Whack-A-Yawn game (think old-school Whack-A-Mole). For those who enjoyed gaming, there was Squirt the Yawn, in which players shoot Diet Pepsi Max into people's mouths while they yawn using a Pepsi-bottle-shaped control. Those who scored high in either of the games were rewarded with a "Wake Up People" T-shirt, which all the brand reps wore at the event. Coupons and magnets were also handed out at the event.

Planning for the event started in April with Boulder, Colo.-based Action Marketing Group. The event, which started in July and lasts eight weeks, has been traveling to the six major markets -- Boston, Chicago, Denver, Detroit, Los Angeles and New York.

Drawing the curious
Although Grand Central is normally a hub for travel, people couldn't resist stopping by the station to play the games and, of course, try the drink. "This is the first in touch I've been with Diet Pepsi Max," said Constanze Sand, 28, of New York. "A lot of people are moving by here. It's a great location and the drink is good."

Taking a shot at the Squirt-a-Yawn game.

Photo Credit: Gregory Palmer

Feedback about the event has been positive so far, said Erica Pergament, associate brand manager, Diet Pepsi Max. "Consumers have been telling us how excellent Diet Pepsi Max tastes and how much fun they have been having at the sampling events," she said. "The events have been a huge success and a great way to kick off the launch of Diet Pepsi Max."

But there were still others who said they were loyal to other soft-drink brands. "I don't normally drink Pepsi, but it's good," said Caroline Vandenberg of Canada. "But I'm a Coke drinker, and I'll never switch."

Link to AdAge Article

Crown Royal Asks Consumers to Make Stuff From its Purple Bag

Crown Royal has launched a promotion to get people to make quilts, reupholster chairs or create any other variety of crafty fare out of the iconic purple bags the whisky is packaged in.

Partakers submit pictures of their creations via mail or an online entry at CrownRoyal.com through Dec. 31.

The name of the promotion, the Legends of the Purple Bag, plays into the grand prize termed a “legendary” trip to both Los Angeles and New York. The weekend in Los Angeles includes a movie night with Hugh Hefner and a private tour of the mansion with a Playboy bunny. The weekend in New York features a day of VIP treatment at the ESPN Zone and a tour of ESPN headquarters in Bristol, CT.

“For years, Crown Royal consumers have been showcasing their passion and style via thoughtful creations featuring the iconic purple bag,” said David Tapscott, brand director for Crown Royal, in a statement. “Whether it’s creating wedding gowns, golf club heads, or a suit comprised of the purple velvet, this promotion offers a forum to celebrate and showcase the unique creativity and skill of some of the most enthusiastic consumers out there.”

Past creations ranging from winter hats and sport jackets woven entirely from the purple bags, to the lining of car interiors and sofa covers prompted the idea for the contest.

Submissions will be judged on creativity, originality, relevance to Crown Royal product, appeal, clarity and appropriateness for use in publicity and advertising.

Print ads, P-O-P, online banners and e-mails are supporting the contest.

For every submission received, Crown Royal said it would make a donation to RADD, the entertainment industry’s voice for road safety.

Former NFL football player Jerry Rice wore a suit designed out of Crown Royal purple bags to this year¹s ESPY Awards. The suit will be auctioned off with its proceeds getting donated to RADD.

Link to Promo Article

Marketer Betting That For Women, Tequila Is The New Vodka

by Sarah Mahoney, Tuesday, Aug 7, 2007 5:00 AM ET

IN THE BLACK BEVERAGE CORP. (ITBBC) is betting it can help young women shake off all the unfortunate tequila moments of their past and embrace the agave-based beverage as the other white liquor. With the $3 million launch of inocente, the company plans to position tequila as an upscale alternative to vodka for women ages 21 to 34. "Tequila has always been marketed as this bastion of maleness," says Bruce Rekant, president of ITBBC. "But our research found that 49% of tequila drinkers are women, who are totally ignored by tequila marketers." So inocente, sold in a "sexy bottle that looks like a vase," will be marketed like an upscale fashion or fragrance brand, he says, using out-of-home ads located outside strategic stores, such as Dolce & Gabbana. He estimates that women probably consume between 75 and 80% of their tequila in mixed, margarita-like drinks, "but there are plenty of young, affluent women out there doing tequila shots, too. It's just a fun, celebratory drink." Inocente is all natural--hence the name--and triple-distilled, which makes it smoother. Tequila consumption has more than doubled in the last five years, with sales topping 9 million cases in 2006, he says; the high end of the market is growing more quickly. If you're wondering just how many upscale club gals will warm up to a beverage famous for its association with dead worms and the frat boys who eat them, relax. Turns out the worm is only in bottles of mescal, a much stronger drink, also made from the agave plant. While there are many beverages made from agave plants (which is actually a lily, Rekant says, and not a cactus), tequila may only be made from blue agave plants grown in a certain area of Mexico. Depending on whose story you believe, Rekant says, the worm idea was either invented by a clever marketer or as a demonstration of quality--the idea is that the high proof of mescal should be enough to kill and preserve the worm. "We think we can win back the women who swore off the stuff back in college, and I believe tequila can grow as fast as vodka," he says. Depending on the success of inocente, Rekant isn't ruling out a ladies' mescal, either; he says the company is also considering introducing special gins and flavored sake. Link to MediaPost Article

Survey: Americans Love Mobile Email

The word "crackberry" may never go out of style. A new survey reveals that Americans are checking email on their mobile devices round the clock.

AOL and Opinion Research Corporation polled 4,025 people 13 and older in 20 cities around the country, according to Brighthand. 15 percent consider themselves "addicted to email."

The average user checks mobile email around five times a day, while 59 percent check it every time a new message arrives.

Meanwhile, 43 percent keep their mobile device nearby when they are sleeping in case important email arrives.

No place is sacred when checking email: 83 percent check email once a day while on vacation, another 53 percent in the bathroom, and 12 percent read email while in church.

Link to Marketing VOX Article

Google Pushes Tailored Phones

By AMOL SHARMA and KEVIN J. DELANEY
August 2, 2007; Page A1

Google Inc. is searching for growth in cellphones.

The company, which has made billions of dollars in Web advertising on computers, is courting wireless operators to carry handsets customized to Google products, including its search engine, email and a new mobile Web browser, say people familiar with the plans. It wants to capture a big chunk of the fast-growing market for ads on cellphones.

Google has invested hundreds of millions of dollars in the cellphone project, say people who have been briefed on it. It has developed prototype handsets, made overtures to operators such as T-Mobile USA and Verizon Wireless, and talked over technical specifications with phone manufacturers. It hopes multiple manufacturers will make devices based on its specs and multiple carriers will offer them.

For wireless operators, the plans are a double-edged sword. Google's powerful brand and its popular Web services could help operators sign up more subscribers to data packages, on which they increasingly rely as voice revenue declines. However, operators have been wary about losing control over the mobile-ad market.

The long-rumored Google phones are still in the planning stages, and wouldn't be available to consumers until next year at the earliest, say people familiar with the idea. Some details are likely to shift as the plans develop.

The Mountain View, Calif., company has made clear it is serious about developing advanced software and services for cellphones. "What's interesting about the ads in the mobile phone is that they are twice as profitable or more than the nonmobile phone ads because they're more personal," said Google Chief Executive Eric Schmidt at the D: All Things Digital conference in May.

A Google spokesman yesterday declined to comment on a Google phone project, but noted: "We are partnering with almost all of the carriers and manufacturers to get Google search and other Google applications onto their devices and networks."

The Google phone project goes far beyond Google's existing deals to include its search engine or applications such as Maps on select handsets, say the people familiar with the matter.

The company's past efforts to get its software on cellphones have raised some concerns in the industry. Verizon Wireless Chief Executive Lowell McAdam said the carrier has chosen not to integrate Google's Web search engine tightly into its phones because of Google's demands to get a large share of search-based ad revenue.

"What this really boils down to is a battle for the mobile ad dollar," Mr. McAdam said in a recent interview. "They want a disproportionate share of the revenue." Mr. McAdam declined to comment specifically on any Google phones.

Google has announced that it may bid for wireless-spectrum licenses at a coming government auction. The Federal Communications Commission on Tuesday approved rules addressing some of Google's concerns about the sale.

If it owned spectrum, Google might turn into a phone operator itself. However, such a project would take years to come to fruition and cost billions of dollars. For now, Google has to work with existing cellphone operators to get its mobile products to consumers.

In recent months Google has rolled out mobile versions of products such as the YouTube video-sharing site. It has made deals to include its search engine or applications such as Google Maps and Gmail on select handsets. But the company has sometimes been frustrated at the limited distribution it has achieved. In some cases, Google has managed to get around operators. Its 411 location search service can be accessed by dialing an 800 number from any handset.

Now it is drafting specifications for phones that can display all of Google's mobile applications at their best, and it is developing new software to run on them. The company is conducting much of the development work at a facility in Boston, and is working on a sophisticated new Web browser for cellphones, people familiar with the plans say.

The prize for Google: the potential to broker ads on the mobile phones, complementing the huge ad business it has built online. Google even envisions a phone service one day that is free of monthly subscription charges and supported entirely through ad revenue, people familiar with the matter say.

Last year, global spending on mobile-phone advertising, including placement of ads in text messages, Web pages, video and all other content, was only $1.5 billion, according to eMarketer. But that figure is projected to grow to nearly $14 billion by 2011, the market research firm says.

The proposed Google phone, Apple Inc.'s iPhone and efforts by other technology companies are aimed at making Web and computer functions easier for consumers to use on cellphones. Today, surfing the Web, listening to music and watching video on cellphones are often clunky experiences.

Unlike Apple, whose cellphone is available exclusively through AT&T, Google is hoping that multiple operators will offer its phone. And Google is ready to relinquish some control over design, allowing manufacturers to create devices based on a common set of specifications.

Google has approached several wireless operators in the U.S. and Europe in recent months, including AT&T, T-Mobile USA and Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, people familiar with the situation say. T-Mobile USA, a unit of Deutsche Telekom AG, appears to be the furthest along in considering it, these people say. Andy Rubin, who helped design T-Mobile's popular Sidekick phone, now works at Google and is involved in its handset project.

Google recently struck a deal with Sprint Nextel Corp. to have a wide array of its services bundled into devices for that carrier's high-speed wireless network based on the nascent WiMax technology. Both companies declined to comment on whether that relationship would extend to offering Google-customized phones on Sprint's existing cellular network.

The specifications Google has laid out for devices suggest that manufacturers include cameras for photo and video, and built-in Wi-Fi technology to access the Web at hot spots such as airports, coffee shops and hotels. It also is recommending that the phones be designed to work on carriers' fastest networks, known as 3G, to ensure that Web pages can be downloaded quickly. Google suggests the phones could include Global Positioning System technology that identifies where people are.

People who have seen Google's prototype devices say they aren't as revolutionary as the iPhone. One was likened to a slim Nokia Corp. phone with a keyboard that slides out. Another phone format presented by Google looked more like a Treo or a BlackBerry. It's not clear which manufacturers might build Google wireless devices, though people familiar with the project say LG Electronics Co. of South Korea is one company that has held talks with Google. Google has already lined up a series of hardware component and software partners and signaled to carriers that it's open to various degrees of cooperation on their part, the people say.

Google doesn't plan to charge a licensing fee to hardware makers or operators, people familiar with the matter say. The company has suggested the phones could carry the Google brand alongside the brand of the operator, or they could be distributed without the Google name. The Google brand has yet to appear on a significant piece of consumer hardware.

Some executives at cellphone operators were skeptical about Google's efforts. They noted the case of Walt Disney Co.'s ESPN, which introduced a sports-centric handset but was forced to shut down the venture last year amid soft demand.

Apple's iPhone could be a formidable competitor among consumers -- and also present strategic complications. Four of Apple's eight directors also serve as directors or advisers to Google. Mr. Schmidt, the Google CEO, is on Apple's board. Those with ties to both companies might find it difficult to avoid conflicts of interest.

Google has generally had better luck in Europe than in the U.S. in getting its software on cellphones. It has forged a relationship with the United Kingdom's Vodafone Group PLC to provide the search bar on the carrier's branded Internet homepage, with results customized for cellphone users. T-Mobile in Europe integrates Google's search bar into its welcome screen for users who have a data plan designed for heavy Web browsing. It's unclear which carriers in Europe Google is working with on its handset plans.

Link to WSJ Article

Not one, but many "gPhones" in the works: report

We've known for some time that Google has research and development resources dedicated to mobile phone technology, but the question has always been: will Google strike out on its own, or will it embrace partners in its quest to tackle the mobile world? Will it make its own phone, or just a set of applications and recommendations?

Citing "people familiar with the plans," the Wall Street Journal has a write-up today exploring the rumors of Google's mobile ambitions. Google is believed to have spent "hundreds of millions of dollars" on its mobile phone project and has courted Verizon Wireless, T-Mobile, and others as possible partners for carrying a Google-designed phone. According to anonymous sources, Google has multiple phone prototypes and envisions a day in which mobile phones will be ad-supported thanks to services such as those Google provides.

As you would expect, Google is not ready to become a cellular provider just yet. Even if the company succeeds at the 700MHz spectrum auction, it will be a long time before it can compete with the likes of Verizon or AT&T as a carrier. Infrastructure can't be built overnight.

Instead, Google's approach is two-pronged, in that the company is working on its own devices, but is also working on a set of technical specifications and applications to be shared by multiple mobile devices. Google will allow manufacturers to use their prototype designs or make their own. Google's chief interest, clearly, is getting its applications on phones. Mobile device versions of Google Maps, Google Talk, and even Gmail are already popular, and the company is working on a web browser as well.

Of course, as we have reported previously, mobile ad platforms make the wireless carriers nervous, especially when they are built around search services that are ultimately poised to eat the carriers' lunch. If you're a Verizon or a T-Mobile, you have the option of running your own search engines, which would allow you to keep a bigger chunk of the revenues generated from advertisers. Of course, if users sidestep your services for something offered by Google, then you'll ultimately lose out.

However, ad revenue sharing is not the only issue. Third-party search results can't be manipulated by wireless carriers to promote their own offerings by privileging them in searches and other search-based services. The wireless industry thrives on monetizing what many would consider typical behavior on any IP network, and handing over the keys to Google makes them understandably nervous about their own futures. They might also be a bit bitter when Google turns around and uses its own services to cross-promote its other offerings, which it can do for free.

For now, interest among carriers appears to be mild, but of course, no one is talking on the record, and Google is still deep in R&D. Stay tuned.

Link to ars technica Article

Web networking boom blasts into the workplace

LOS ANGELES (Reuters) - After years of socializing, Facebook and MySpace mean business. The sites, which started as a way to help people stay connected with friends, in the past year have begun catering to professionals, offering networking and advertising opportunities.

Some companies are embracing the trend, while others are trying to shut the Internet's virtual doors as firmly as possible.

Barbershop owners Erin Portman and her husband, Michael, of Austin, Texas, created a page on MySpace.com, the site owned by News Corp and especially popular with teens.

MySpace "friends" of Bird's Barbershop often post photos and comments about their haircuts on the music-filled MySpace page, with links back to their own personalized MySpace pages.

"We started collecting 'friends' before we were even open," Portman said. "I definitely think it has boosted our business." The shop now has more than 2,100 MySpace 'friends,' many of them customers.

MySpace rival Facebook.com, started up in 2004 and in 2006 opened registration to people with corporate e-mail addresses. Thousands of business networks and communities exist on the site among 32 million users, with much of the recent growth attributed to professionals.

Facebook says its fastest-growing demographic is people older than 25. It's chief executive is 23-year-old Mark Zuckerberg, who is also one of the founders.

While many businesses are using the sites, employees taking advantage of them during work hours are stirring up controversy.

More than two-thirds of London businesses have banned or limited employee access to the sites, says a straw poll commissioned by Britain's Evening Standard newspaper in July. The United States, the United Kingdom and Canada have the largest number of online networking users, according to Facebook.

Toronto prohibited its 40,000 municipal workers from using such Web pages three months ago, saying it distracts them.

"We want to ensure that city workers who are paid by the taxpayers are not wasting undue time on non work-related activities," said City of Toronto spokesman Brad Ross.

"NOT SAFE FOR WORK"

Many companies block inappropriate Web sites such as pornography from their computer servers. Some even monitor their employees' online activity.

Some networking sites allow users to post photos and videos, which may be deemed "NSFW" -- not safe for work -- on the Web.

But Jerald Jellison, a professor at the University of Southern California in Los Angeles, and an expert in change management and social relations, said companies should embrace networking.

"People who lead businesses are reluctant to acknowledge the extent to which hard-working professionals do other things besides strictly working," he said. "We're human beings. We socialize. It's going to go on whether you allow it or not."

People often meet other employees of their own firms through the sites, said Jellison, who argued that such connections could be used to share resources and increase productivity.

"If there is somebody who has experience dealing with clients in a particular company and I find someone else who has done business with this company, I could get information from him, which could help in terms of making a sale," he said.

International Business Machines Corp. has developed networking software designed for business clients to do just that.

"We tailor it to specifically help people organize their own activities," said IBM's Vice President of Emerging Technologies, Rod Smith. "The more you're isolated and not in the loop, it makes it tremendously hard to really define your work".

Link to Reuters Article

Yahoo to Revamp Video Site After Losing to YouTube

Aug. 2 (Bloomberg) -- Yahoo! Inc., after losing out to Google Inc.'s YouTube, is revamping its video site by the end of the year to include more content from media companies and Internet users.

Music videos, movie trailers, television shows and sports highlights are among the features that will be available on the new site, Mike Folgner, Yahoo's general manager for video, said in an interview. Yahoo's Flickr photo-sharing site will also be adding video, he said.

``One of our strategies is to put video everywhere you are on the Internet,'' said Folgner, who joined the Sunnyvale, California-based company last year through Yahoo's acquisition of video site Jumpcut. ``We're going to build a much better destination for you to access all this different content.''

Yahoo wants to attract more visitors to its site at a time when more than 130 million Americans are viewing online video, based on ComScore Inc.'s May figures. Of the 8.36 billion streams viewed that month, Google, which acquired YouTube last year, accounted for 22 percent, Reston, Virginia-based ComScore said. Yahoo was third at 4.6 percent, behind News Corp.'s Fox pages, which includes social-networking site MySpace.

Shares of Yahoo, owner of the most-visited U.S. Web site, rose 11 cents to $23.36 at 4 p.m. New York time on the Nasdaq Stock Market and have dropped 8.5 percent this year. Shares of Mountain View, California-based Google slipped $1.93 to $511.01.

Yahoo has deals in place to use music videos from record companies including Universal Music Group, owned by Vivendi SA, and EMI Group Plc, whose artists include Norah Jones and Radiohead, Folgner said. News services including the Associated Press and CNN will provide content along with sports leagues such as the National Football League and Major League Baseball.

``We already have a lot of these deals,'' Folgner said. ``We just don't service them in one place so you don't see them. We'll be able to drive a lot of traffic at this.''

Link to Bloomberg Article

Major Social Networking Sites Expand Their Global Visitor Base

Several major social networking sites - those with at least 10 million monthly visitors - have undergone dramatic global growth during the past year, according to a comScore study on the expansion of social networking across the globe, writes MarketingCharts.

Among comScore's data on select sites' year-over-year growth and visitation numbers:

• Social networking behemoth MySpace.com attracted more than 114 million global visitors age 15 and older in June 2007 - a 72 percent increase from a year ago.
• Facebook.com experienced even stronger growth during that same time frame, jumping 270 percent to 52.2 million visitors.
• Bebo.com (up 172 percent to 18.2 million visitors) and Tagged.com (up 774 percent to 13.2 million visitors) also increased by orders of magnitude.

• MySpace averaged 28.8 million visitors daily in June 2007 - 72 percent more than a year earlier
• Facebook's average of daily visitors exploded 299 percent, reaching 14.9 million in June 2007 from 3.7 million a year earlier.

"Literally hundreds of millions of people around the world are visiting social networking sites each month and many are doing so on a daily basis. It would appear that social networking is not a fad but rather an activity that is being woven into the very fabric of the global internet," said Bob Ivins, executive vice president of international markets.

While attracting global users, specific social networks have a tendency to skew in popularity in different regions, comScore found: For example, both MySpace.com (with 62%) and Facebook.com (with 68%) attract approximately two-thirds of their audiences from North America.

Nevertheless, each has already amassed a large international visitor base and both appear poised to continue their global expansion, comScore said.

Bebo.com has a particularly strong grasp on Europe, attracting nearly 63% of its visitors from that region, while Orkut is firmly entrenched in Latin America (49%) and Asia-Pacific (43%), according to the data.

Friendster also attracts a significant proportion of its visitors (89%) from Asia-Pacific, and both Hi5.com and Tagged.com exhibit more balance, drawing at least 8% from each of the five regions.

“A fundamental aspect of the success of social networking sites is cultural relevance. Those doing well in certain regions are likely doing an effective job of communicating appropriately with those regions’ specific populations,” said Ivins. “As social networking continues to evolve, it will be exciting to see if networks are able to cross cultural barriers and bring people from different corners of the globe together in fulfilling the truest ideals of social networking.”

McDonald's Invites Snacking via Avatars

McDonald's is hoping to harness word-of-mouth with a new campaign in support of the launch of its new Chipotle BBQ Snack Wrap.

The campaign, which includes TV, radio, and print, in addition to its online elements, encourages consumers to send emails featuring Oddcast's talking avatars, writes MediaPost.

In the viral component of the campaign, a visitor to MySnackTime.com answers a series of questions and creates an avatar who then can be sent to friends. All the possible scenarios focus on the theme of inviting friends to join in a Micky D's snack time.

McDonald's also sent Snack Teams to hand out cards good for a free wrap to pedestrians on the streets of New York, L.A., San Francisco, Chicago and Miami.

Link to MediaBuyerPlanner Article

KateModern

Hot on the heels of Michael Eisner’s successful short form episodic web series Prom Queen is a new online video series called KateModern. Created by the producers of LonelyGirl15 and hosted exclusively by social networking site Bebo (the top site in the category in the UK), KateModern is the next evolution of web video.

Similar in ways to ARGs, KateModern is an interactive storytelling platform. Making the webisode genre more experiential, the series is intended to engage the Bebo community beyond just watching a video. KateModern’s characters and plotlines have already been extended outside of the video medium and have been injected into quizzes, polls and comments within the Bebo site. Going forward, site visitors may see “Kate” upload a photo from her mobile phone relating to the story, and will be able to give feedback and clues, thus becoming involved in the story themselves---almost like a real time Choose Your Own Adventure.

With this interactive component, marketers are clamoring to get on board (six brands have signed on thus far). Bebo has two other shows debuting in the next few months, and if KateModern proves to be a hit, you can bet the competition for ad real estate will become fierce.
Link to TrendCentral Article

Universal Music Proclaims OTA Download Record

Universal Music Group is now hoisting a full-track, over-the-air (OTA) download record, one that unsurprisingly comes from Asia. The accomplishment, reached last week, was delivered by an anonymous group of Japanese medical students known as GreeeeN. The act, signed to Universal Music Japan, sold one million OTA copies of their third single, "Aiuta," which roughly translates into "Love Song". According to Universal, the track is also available in a number of other mobile configurations, including ringtones, ringback tones, and video ringtones. In total, the collection has drawn three million sales.

The development highlights the extreme geographical differences found in the mobile music market. The sales performance of GreeeeN comes alongside a whole-hearty embrace of mobile music formats in Japan and throughout Asia. That has enriched providers like KDDI, NTT DoCoMo, and a number of well-planted mobile operators. Elsewhere, Europe has also experienced success, though the sales story is far more subdued than its Asian counterpart. And reactions in the United States have been mostly soft, prompting carriers like Sprint to lower pricing dramatically.

Link to Digital Media News Article

Yahoo to Add Video Component to Photo Site Flickr

In an effort to broaden the range of media available to internet users, Yahoo announced it would be adding a video component to its photo-sharing site Flickr.

GM Mike Folgner of Yahoo Video said the company is committed to building "a much better destination for you to access all this different content.''

A means to this end is to "put video everywhere you are on the Internet," with emphasis on Flickr, reports Bloomberg.

The move puts the photo-sharing site in the arena of Google's video-sharing offering Youtube. And while it is not expected to overtake Youtube, video remains a savory market, with 3/4 of US internet users streaming at least least 2.5 hours worth of video in May.

As of July, Flickr ranked the #2 photo site behind MySpace's PhotoBucket.

Link to Marketing VOX 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

Samsung Beats Motorola for Number Two Cellphone Ranking Spot

For the first time ever, Samsung has kicked Motorola out of the second position in the worldwide cellphone manufacturers ranking. Dropping its market share from 22.1% to 13%, this ends four years of Motorola being #2 behind Nokia. Comparing their handsets, the only thing that surprises us is that they didn't overtake them at least a year ago. How was it for the rest, including Apple?

On a total of 272.7 million cellphones shipped worldwide during the second quarter ending June 30 2007, the breakdown goes as follows:

• Nokia: 37% (33.4% Q2 2006)
• Samsung: 13.7% (10.7% Q2 2006)
• Motorola: 13% (22.1% Q2 2006)
• Sony Ericsson: 9.1% (6.7% Q2 2006)
• LG: 7% (6.4% Q2 2006)

Apple scored a 0.1% in the last weekend of Q2, so apparently everyone went up except Motorola.

Link to Gizmodo Article

A Traveling Photo Booth Sells a Cellphone

Sony Ericsson Touts BestPic Function on the Road

Published: August 02, 2007

Brand: Sony Ericsson
Brand Owner: Sony Ericsson
Category: Telecoms/mobile
Region: Europe
Date: August 2006 - November 2006
Media Agency: Mediaedge:cia
Other Agencies: Digit
Media Channels: Outdoor

The Sony Ericsson K800i mobile handset had a USP (unique selling proposition) that enabled it to stand out from a raft of me-too mobiles. Its BestPic function lets it take nine pictures at a single press of a button, thereby allowing users to scroll through all the shots and pick the best.

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Although this function was part of the traditional campaign launch that encompassed TV, print, out of home and online, the thinking was that making a broad European target audience aware of the functionality might take something a little bit more.

Research showed that consumers regarded the brand as niche and cold. Moreover the creative line, "Never miss a shot," was not successfully conveying the power of the BestPic function.

The solution was a fun brand experience that turned the humble photo booth into a nine-shot wonder. A branded unit traveled to high-traffic locations such as shopping centers and train stations.

The booth had nine 6-foot digital screens in a row and people were asked to jump, dance of just move in front of a high-speed camera that captured nine frames in a second. The results were shown on the screens, printed out on high quality paper and placed online.

Sony Ericsson teams were also on hand to demonstrate the phone and answer questions. Units were set up for a week at a time at each of the 10 destinations.

In total nearly 14,000 people participated in the BestPic demonstration. Each participant spent an average of two to three minutes interacting with the unit and nearly 18,000 people voted for the "BestPic of the day" at the microsite.

~ ~ ~
Cream is a U.K.-based magazine owned by C Squared Communications aimed at highlighting the best in creative media worldwide. All media ideas are part of C Squared's Creative Media Database. csquared.cc

Link to AdAge Article

Disney Buys Ad-Free Club Penguin for $350 Million

Kid-Focused Virtual World Key to Video Games, Media Networks

By Abbey Klaassen and Andrew Hampp

Published: August 01, 2007

NEW YORK (AdAge.com) -- Move over, Donald, there's a new favorite bird at Disney. Walt Disney has snapped up the snow-covered virtual world/social-networking portal Club Penguin for $350 million -- and promises to pay another $350 million through 2009, depending on the growth of Club Penguin's earnings. The acquisition will be part of Disney Internet Group.

Club Penguin is an online portal whose young members assume the identities of penguin avatars living in a frozen penguin world where they can even furnish virtual igloos.

New name
Geared toward children aged 6 to 14, the site lets users adopt penguin avatars, talk to each other, play games and furnish virtual igloos. Although the URL will remain the same, the company will be renamed Disney Club Penguin and will be expanded internationally, Disney execs said on the earnings call just minutes after announcing the acquisition. The company will also use Disney Channel, Radio Disney and Disney.com to help promote the site.

The company said the price was based on the economics of growing the site's subscribers domestically and expanding outside the U.S., but "we'll see opportunities to exploit Club Penguin on other properties," said Disney CEO Bob Iger, citing video games, consumer products, possible presences in theme parks and opportunities on media networks.

"Our vision has been to create online destination where kids around the world can interact with each other and play games alongside their favorite Disney characters," he said. Disney already has ventured into the virtual world with Disney Fairies, where children can create fairy avatars. Disney Fairies will relaunch in 2008 as a more robust virtual world based around the Tinker Bell character. Later this year, Disney will release Pirates of the Caribbean Online, a project that has been in development for several years.

Dominating the under-12 set
Disney's acquisition of Club Penguin should help the company aggregate its dominance of the under-12 set online. But the tween-focused Disney brands have bought space on other popular virtual sites. Cartoon Doll Emporium, a year-old site targeting girls 6 to 16, has partnered with Disney's "Hannah Montana" and "High School Musical," with tie-ins to each show's respective musical extensions as well. The site averaged 4 million unique visitors last month.

Club Penguin earns revenue through paid subscriptions. It has 12 million activated users with access to a more limited version of the world and 700,000 paid members who have access to the full world and can increase their status. Earlier acquisition rumors reported by TechCrunch said Sony was looking at Club Penguin for a $500 million-plus price tag. Disney said the margins at Club Penguin are "significant."

So far Club Penguin has shunned advertising -- its three co-founders call that a safety decision and have said they're tired of marketing aimed at young children. (Cue irony here.)

Club Penguin competitors include Webkinz, Stardoll, Gaia, Habbo Hotel and Viacom-owned Neopets.

Link to AdAge Article

Food For Bought: Will Restaurants, Bars Be Your Next Digital Media Buy

ADVANCES IN DIGITAL VIDEO TECHNOLOGIES are putting ads in front of consumers in places many marketers would not have previously imagined - everywhere from gas station pumps to the elevators of high-rise office buildings. Now they're going to begin popping up where people go to dine and drink. In a new digital advertising network being rolled out nationwide, out-of-home media company Zoom Media & Marketing is installing Internet-connected, digital video screens in fine restaurants and bars in major media markets with a goal of creating the first media network of its kind. The rollout is the first of several targeted, vertical, place-based video networks planned by Zoom and is the latest in what is proving to be the greatest land grab in U.S. advertising history, as developers seek to turn every conceivable venue into an opportunity for an advertising exposure.

Zoom's rollout comes as the burgeoning digital out-of-hone market has formed a new trade association - the Out-of-Home Video Advertising Bureau - to set standards for advertising formats and help define audience metrics for what is fast becoming the most explosive medium since the early Internet.

"We've been watching the digital space for a few years and we think the time is right for this," says Dennis Roche, president-COO of Zoom, citing improvements in technology and better economics associated with installing deploying high-definition video screens and digital ad insertion technologies in public places. How consumers and advertisers will react to the new medium remains to be seen, but Zoom already is installing the new screens - 36" x 22" LCD panel displays that are networked by a broadband Internet connection to a central advertising server - in restaurants and bars in New York, Los Angeles and Chicago, and if the initial rollout is successful, it plans to be in two dozen establishments this month and about 50 by November. They include places like Jack Demsey's and P. Diddy's Justin's in New York, the Lava Lounge and The Spot in Chicago, and Sonny McClean's and the Westwood Brewing Company in Los Angeles.

The boards, which are capable of digitally inserting static ad messages, rich media or full-motion video such as movie trailers or conventional TV commercials, represent a new frontier for advertisers.

And it won't just be digital video ads showing up in the new locations. Zoom also specializes in so-called "experiential media" - a catchphrase covering everything from "street teams" to venue-based sampling opportunities - and Roche says restaurant and bar network advertisers are likely to combine a mix of media in the new locations.

Zoom initially is charging a flat monthly fee of $500 per month per digital screen, and the buy includes one 30-second ad per five-minute programming loop, repeated throughout the day.

Link to MediaPost Article

Google Lawyer: Copyright Protection For YouTube Video Almost Ready

GOOGLE WILL HAVE "UP, RUNNING, and effective"--hopefully in September--a new content-fingerprinting technology for YouTube that would resolve the entire copyright issue at the core of the Viacom copyright infringement lawsuit, attorney Philip Beck told the judge overseeing the case in New York on Friday.

"We believe it goes beyond any legal disputes," said Beck of the technology, during a preliminary hearing before U.S. District Judge Louis L. Stanton in Manhattan.

Viacom attorney Donald Verrilli, who characterized the lawsuit as "plain old-fashioned infringement," applauded the initiative but said it wouldn't be appeased by this promised cure-all. "We'd have been a lot happier if they'd put this in place when they launched," he said.

Verrilli said of Google's YouTube, "they have built a business on this infringement." It was YouTube's responsibility to track copyrighted material on its site from the beginning because they profit from the exchange.

Viacom acknowledged that it did not grasp--and had no feasible way of finding out--just how many of its copyrighted clips are stored within YouTube member's "private" areas, which are not accessible to the general public.

During Friday's scheduling conference, Beck stuck to Google's key argument that the Digital Millennium Copyright Act's "fair harbor" provisions protect it from copyright infringement.

Viacom is attempting to frame the case as a simple issue of infringement, Beck said, adding: "We think it's a little more complicated."

Along with Phil Beck of Bartlit Beck, Google also has on its team David Kramer of Wilson Sonsini. Beck is considered one of the nation's top trial lawyers, having represented now-President Bush in Florida during the 2000 election and pharmaceutical giant Merck during its Vioxx litigation.

In March, Viacom sued Google--which acquired YouTube last year--for copyright infringement "on a massive scale." The company had then asked YouTube to take down 100,000 of its clips.

Suits by music publisher Bourne and the Premier League, England's top soccer league, have been combined with the Viacom suit for trial purposes before Judge Stanton.

Case watchers can expect, according to Viacom's Verrilli: technical expert testimony; expert testimony with regard to business models; the availability of copyrighted work and copyrighted content filtering systems; and an exploration of the true scope of the alleged copyright infringement.

Link to MediaPost Article

Dailymotion Gains Ground In U.S.; Enters Deal With RDF

LOOKING MORE LIKE A MEDIA company than a video-sharing site, Dailymotion late last week reached a deal to license programming from reality TV producer RDF USA.

RDF USA is best known for producing prime-time reality shows like "Wife Swap" and most recently "Shaq's Big Challenge." Per the new non-exclusive first-look agreement, RDF will present Dailymotion with eight program concepts for short-form video programming over the next 12 months. The content, which could range from comedic to dramatic, will likely be heavily branded.

It's been a busy month for the Paris-based video-sharing hub, which just made its official U.S. debut with a tailored portal and a team of top media executives to lead the way.

Joy Marcus, former senior vice president of global marketing at Time Warner, is presently leading Dailymotion's U.S. expansion. Also new to the company is a specialized creative and programming team--including Danny Passman, formerly of MTV Networks and a development executive at fuse and VH1, and now Dailymotion's U.S. senior creative director.

Dailymotion.com already does particularly well with U.S. viewers--drawing more than 4.7 million video streams in April, according to comScore Video Metrix. The average video streamer at the site viewed more than 10 videos and nearly one hour of video content during the month. Also, 18- to-34-year-olds represented a significant 37% of Dailymotion's views, according to comScore.

Dailymotion recently worked with Jim Biederman on "The Great Sketch Comedy Showdown," and the Weinstein Co. on a contest for "The Ultimate Star Wars Fanboy (or Girl!)."

Dailymotion is not the first video-sharing startup to tap Hollywood for original content production. Rival Metacafe earlier this year launched a video confessions channel created by Hollywood producer Steven Bochco, which features short videos of twenty-something non-actors sharing highly personal experiences. In addition, Break.com recently entered into a similar first-look deal with NBC Universal Digital Studios.

The company's U.S. launch is being accompanied by standard monetization strategies, including contextual banner and in-stream video advertising.

Revenue-sharing agreements are available to media companies as well as to individual content creators through Dailymotion's MotionMaker program, which is designed to identify and reward popular video contributors.

Link to MediaPost Article

Ford's Film Deal Puts Company In The Driver's Seat

FORD MOTOR HAS INKED A multi-year product-integration and promotional deal with Robert L. Johnson, founder of BET, and Harvey and Bob Weinstein, founders of Miramax.

The effort gives Ford exclusive automotive product integration in Our Stories Films, a joint venture between Johnson and the Weinstein brothers. Ford will use the venture to promote Ford, Lincoln and Mercury, and its Jaguar and Land Rover brands to African-American and urban consumers via product placement and cross-promotions with the studio's film releases.

The first Our Stories Films project to feature a Ford vehicle is "Who's Your Caddy?" starring rapper Big Boi, which premiered Saturday and features Ford-brand Land Rover's Range Rover.

The association between Ford and Our Stories was brokered by Ford's urban-market agency, UniWorld, Detroit. But the agency did broker the appearance of Range Rover in "Who's Your Caddy?" which pre-dates the new alliance.

Ford says that the deal goes beyond one-off product placement, in which a studio needs a vehicle for a scene and acquires one through a Hollywood vehicle-placement agency. In this, the integration of Ford vehicles into story lines early on means Ford reviews scripts well before production to decide which vehicles match a story and then negotiates Ford vehicles into movie story lines.

UniWorld Group will collaborate with Ford and Our Stories Films to place the vehicles and develop the Ford marketing strategy around each featured film.

The arrangement between Ford and Our Stories Films also includes the kind of sponsorships, advertising that uses film assets, consumer and dealer promotional opportunities, merchandising and other media options that are typical of such deals.

The strategy is not new to Ford or to other automakers--Volkswagen's multi-year relationship with Universal is one example. Several have moved toward multi-year relations with studios in an effort--often risky--to ride the coat-tails of a film's (hoped-for) success by assuring their cars will be more than just set props. Ford, which has had several of its Aston Martin, Jaguar and other vehicles in recent films, has pursued that strategy since it founded its Global Brand Entertainment Group in 2005.

The group became a Tinseltown entity that year when Henry Ford's great-great-grandson and independent movie producer, Al Uzielli, opened a product-placement office for Ford in Beverly Hills. Uzielli now serves as senior advisor to the group. Others in the L.A. office are Bob Witter, Ford Global Brand Entertainment Manager; Brian Daly, senior partner at J. Walter Thompson, Ford's agency of record; and Ross Mackenzie, also of JWT.

Myles Romero, former director of Ford Global Brand Entertainment, who oversaw Ford's brand-integration efforts from Dearborn, Mich., left the company last week to become vice president of strategic marketing and entertainment alliances at Borders Group.

Among other deals, the group inked a multi-year deal between Ford and Revolution Studios that got a Lincoln Navigator a central role "Are We There Yet," and "Are We Done Yet," starring Ice Cube, and in "Johnson Family Vacation," starring Cedric the Entertainer. The Aston Martin DB 9, Land Rover Range Rover, and a Jaguar S TYPE, were in the NBC show "Studio 60." Ford's Fusion car was in "Evan Almighty," starring Steve Carell, and "Man of the Year," starring Robin Williams. Ford's Edge, as well as Expedition SUV and Shelby Mustang, will have major roles in the forthcoming Will Smith vehicle, "I Am Legend."

Wes Brown, automotive marketing analyst at Iceology, Los Angeles, says that product integration, at least of the old-school kind, is problematic because it is difficult to track and gives marketers little control. "To have some product placement in a movie, and expect immediate gain is obviously not realistic, beyond boosting awareness," he says. "It is useful in helping image management in some regard, whether maintaining or supporting the brand or vehicle's image."

He says the long-term deals that automakers ink with studios reduce at least some of the variables associated with putting one's product in someone else's creative hands.

"With long-term deals, arguably, I should be able to have some control over how the product and brands are presented and used," he says. "Product placement is fine and dandy, but if it's not integrated right it comes off as worse than an ad. Long-term deals allow more seamless integration with regard to product placement. That will enhance consumers' feelings regarding that brand, because they will recognize it, but won't think of it as a sales job."

Link to MediaPost Article

WaMu Offers Music Exclusives To Build Brand Loyalty

WASHINGTON MUTUAL HAS STAKED OUT an identity in the financial services market as a youthful, slightly rakish and customer-indulging "un-bank." The latest effort by the bank to build loyalty and woo new customers aims to give bank customers an exclusive experience at music, sports and culture events.

The grassroots effort--WaMu Live!--launching this summer features special access for WaMu customers to everything from parking to concession stands, and even a WaMu Lounge, at WaMu-branded venues.

The effort, in New York, Los Angeles, Seattle and San Francisco, features at-venue amenities for customer attendees, online access to tickets for events at wamulive.com, and entree to "WaMu Lounge" at WaMu Theatre at Qwest Field, WaMu Theater at Madison Square Garden, the Hollywood Bowl, Greek Theatres in L.A., Verizon Wireless Amphitheater in Irvine, Calif., and Shoreline Amphitheater in San Francisco. Customers have to show their WaMu debit, credit, ATM or home-equity card to get special access and benefits.

The company says the lounges, stocked with food and beverages, are available before the shows and at intermission. WaMu customers also get parking access, special entrances and speed-lanes at concessions.

In addition, WaMu will have kiosks where ticket holders at participating theaters--whether or not they are bank customers--can have digital photos taken and downloaded at wamulive.com.

WaMu is promoting via in-bank signage and at wamulive.com, which has events listed, sweepstakes and a "Tell Your Entourage" viral marketing component. Posters have headlines like "I'm With the Bank" and "Bank Minded. Wild at Heart."

Jane Zalutsky, first vice president of experiential marketing, says WaMu Live is new, but that the bank has been involved with various music sponsorships driven by WaMu's acquisition of naming rights to theaters in Seattle, Los Angeles and New York. "It all ties together into a grander scheme. We think the entertainment space is a good place for the brand because of the passion around entertainment and around music from a broad perspective."

In 2005, the company took on sponsorship of the Jones Beach Summer Concert Series in New York City and last year got naming rights for the theater at Qwest Field in Seattle.

"It's about a great experience that's fun and a little quirky and a little different; it's about not being your standard bank," Zalutsky says--adding that although the effort is ostensibly aimed at customer loyalty, it is intended, by extension, to appeal to non-customers. "I believe that people will see others having a great time simply because they are with WaMu, so it will function as a customer acquisition, about spreading the brand message."

She adds that WaMu banks in WaMu-venue markets will have merchandise as well as promotional material, and that the bank is hoping to expand the program to other markets as it increases the number of properties at which it has naming rights. "There are lots of extensions that we have discussed, but we want to see the reaction to the program; we are right out of the gate on this."

She said the target is not restricted to young pop-music fans but includes classical music events, and--at two of the venues--happenings like Cirque du Soleil, and sporting events such as the NBA draft. "It's primarily music, but we are talking about the whole entertainment experience," she says.

"I think our brand appeals to the mass middle market--we have all kinds of customers, and we think this program will appeal broadly. It ranges from Marilyn Manson to the L.A. Philharmonic to B.B. King. The range is varied, so we will have something for everyone."

Link to MediaPost Article

CW Shatters the TV-Ad-as-Usual Mold

Ten-Second 'Cwickies' Give Marketers Realistic Option Beyond the Standard Spot

By Brian Steinberg

Published: July 30, 2007

NEW YORK (AdAge.com) -- It doesn't seem like such a radical idea, letting marketers buy 10-second TV commercials. But the ones set to roll out Aug. 10 on the CW signal that a sea change is taking place in one of Madison Avenue's favorite -- but most inflexible -- ad channels.

During an airing of "Friday Night Smackdown," Electronic Arts will run three 10-second ads CW has dubbed "cwickies," each of which will appear as the first ad in their respective commercial breaks. But that's not all. The cwickies will be sandwiched by "isolated" ad breaks -- each containing only one EA commercial. One, near the wrestling program's start, contains only a 60-second EA spot. The last, near the end, consists solely of a 90-second EA trailer. Everything leading up to the trailer points to that end piece, where video-game junkies can see never-before-viewed footage from "Madden NFL 08." Thanks to the innovative use of ad lengths and positions, EA can be well assured its commercials will stand apart from the rest of the 30-second pack that evening.

On network TV, where commercials for the most part have been sold in 30-second increments, this type of placement is hard to obtain. Networks are "not always so flexible," said Amber Mayo, media strategist at EA.

More equal than others
CW, however, is fast becoming a petri dish for radical experiments in TV advertising. Broadcast networks reach the biggest and broadest audiences, and use that fact to resist pressure from media buyers and marketers to dump their old 30-second ways and try something new. But model-busting ad ideas, such as the cwickies and "content wraps" -- CW's series of long ads placed over the course of a single night -- do something that gives network executives the willies. They make one marketer's commercials more memorable than others airing in the same program, threatening to ruin a decades-old ad system. In the past, one TV ad had as good a chance as any to get noticed. Now, as the old saying goes, some ads are becoming more equal than others. And that's fine by EA.

EA's goal is "to make sure that our message is paid attention to," said Tom Winner, global director of broadcast buying at Wieden & Kennedy, which crafted the ads. "We'll let the other advertisers figure out what to do to keep their message front and center."

Talk of ads that make one marketer more memorable while diminishing another's ability to stand out has long frightened broadcast networks away from trying radical ideas pushed by Madison Avenue. MediaVest, a Publicis Groupe ad-buying firm that counts Procter & Gamble Co. among its clients, has tried for years to get broadcast networks to consider new formats. MediaVest has talked to various broadcast networks about running advertiser logos at the bottom of the screen during a program, said Pam Zucker, a MediaVest senior VP. Another of the firm's ideas: running a commercial in half a TV screen while characters from a program go about their business in the other half.

Forcing the issue
"The conversations never went very far," Ms. Zucker said. Networks turned down all these ideas "because they really weren't concerned about the effectiveness of commercials."

These days, advertisers are forcing the issue. They are crafting ad deals that carry viewership guarantees for commercials instead of programs, which means ad performance will come under more scrutiny. Meanwhile, competing media have already begun to break their rules and offer ads that are more difficult to ignore. Cable has embraced commercial-free season premieres and themed ad breaks. Radio has tested ads that are mere seconds in length. And magazines have begun to stuff CDs and hard-to-fold inserts into their bindings. All of these concepts aim at one thing: making these ads, which often involve more complex production and higher prices, stand out.

Broadcasters have tested some of these approaches on a limited basis, but history has burdened them with lots of obstacles that get in the way. Networks are duty-bound to give some of their ad time to local affiliates, making it hard to sell out a show to a single advertiser. They also try to keep one rival from gaining an edge over the other. Coke and Pepsi ads appearing in the same break, so the thinking goes, would cancel each other out. So imagine the hand-wringing that must be going on over more complex advertising executions that would help a single marketer dominate an entire program.

Getting attention
Even so, CW's ideas are attracting notice. "Ads and promotions are going to have to sell the product in a much more interesting way," said Leslie Moonves, CBS Corp.'s CEO, at a recent event, subsequently pointing to CW's content wraps. There is also good reason for CW to try these methods.

"The landscape is changing very quickly and we have a young audience that's hard to reach," said Alison Tarrant, CW's senior VP-integrated sales and marketing. The network must be "distinct and creative," she said.

One problem with these new ideas: They can be extremely labor-intensive. For one thing, they are designed to work with a particular program, not run again and again. So each flight of ads may have to be specially crafted, adding expense to production.

Ms. Tarrant said she has had some worrisome moments. When the idea of doing a "wrap" for a brand of mouthwash came up, she wondered, "How am I going to come up with a story that's entertaining enough for an audience that includes someone swishing a product around in their mouth?" The result: a series of two-minute pieces for Pfizer's Listerine Whitening Pre-Brush Rinse featuring Beverley Mitchell, a starlet from the CW program "7th Heaven" talking about the importance of white teeth in giving her confidence to consider a country-music career.

Link to AdAge Article

FACEBOOK BLINKS ON MUSIC APP

August 1, 2007 -- Red-hot social networking service Facebook has pulled the plug on a popular music application in a bid to avoid legal problems with the recording industry.

The third-party feature, called Audio, allowed users to upload music playlists that other users could listen to on a streaming basis, but not download. It wasn't licensed by labels and publishers.

Analysts called it a looming litigation and cost headache for the company.

Facebook did not return calls seeking comment.

While no lawsuits had been filed by the recording industry against the service, playlist swapping on Facebook didn't go unnoticed by the major labels. A source at one label alleged the company was engaging in "massive infringement."

Facebook's move comes as labels are moving aggressively to force Web 2.0 companies to share revenues from music-related audio and video offerings. MySpace, Grouper, Bolt and Imeem have all been sued or threatened with litigation by the major labels for not seeking proper licenses for ad-supported music and video services.

Whether or not Facebook brings back a similar music offering remains to be seen. With more than 26 million unique visitors in the U.S., according to ComScore, analysts said yesterday that the company is likely to come back with a music feature that ensures payment to record companies.

Link to New York Post Article

Google, Others Mull Next Steps In Race For 700 MHz

The rules, which are expected to be published within a few weeks, immediately drew praise from some quarters and scorn from others.

By W. David Gardner
InformationWeek
July 31, 2007 07:42 PM

In approving rules for the upcoming 700 MHz spectrum auction Tuesday, the FCC made major strides towards opening the auction in a way that could lead to more consumer choice, but stopped short of guaranteeing the key provision of wholesale open access.

The rules, which are expected to be published within a few weeks, immediately drew praise from some quarters and scorn from others.

Google, which had captured much of the attention going into the meeting, was disappointed that just two of the four conditions it had set to participate in the auction were approved by the FCC.

Richard Whitt, Google's Washington Telecom and Media Counsel, said in a press conference immediately following the FCC meeting that there were some "real benefits" in the new rules, but he noted that only two its conditions were met by the FCC. He said the search engine firm needs "time to study" the rules when they are published before it will make a decision on whether it will bid $4.6 billion in the auction.

He cited what he called an "incumbent blocking premium" in which incumbent firms could pay more than the value of spectrum. In such cases, new entries into a market can be blocked by incumbents.

Also following the vote, Meg Whitman, president and CEO of eBay, hailed "openness" provisions and said the firm is encouraged by the FCC vote. The firm's Skype VoIP (voice over Internet protocol) provider has a stake in the outcome of the auction.

"We believe that ensuring greater choice for wireless devices and applications is a very positive development and we are very pleased that 'Carterphone' principles are now part of the Commission's spectrum policy. We will continue to work with the Commission to make openness a guiding principle throughout the broadband Internet access marketplace," Whitman said. The landmark Carterphone decision of 1968 set the precedent for the use of foreign devices on AT&T's network.

Skype and Google have supported the so-called "openness" principle in the 700 MHz auction. The major mobile phone providers, AT&T and Verizon Wireless, have cautiously moved toward supporting some open features of the auction in recent weeks.

Network equipment supplier Cisco Systems(CSCO) hailed the FCC action including provisions calling for the establishment of a nationwide allocation of spectrum for public safety use.

FCC chairman Kevin Martin broke the logjam on the auction a few weeks ago when he proposed some degree of openness. At the FCC meeting Tuesday, his proposals were essentially followed, although individual commissioners voiced some strong alternate opinions of their own on the auction rules.

For instance, commissioner Robert M. McDowell dissented partially from the commission decision. "I am disappointed that the majority didn't try to work with industry to forge a consensus solution rather than rushing to regulate without thinking through possible unintended consequences," he said

He worried that smaller players -- especially rural companies -- wouldn't have the resources to match the "higher bids of the well-funded giants." McDowell added: "Depriving the nascent 700 MHz market place of smaller new entrants will result in less innovation and competition, not more."

Consumer groups expressed reservations after the FCC meeting, particularly over the lack of approval over the failure to guarantee wholesale open access, which would have required licensees to sell access to the network to alternate providers on a wholesale basis. The Open Internet Coalition said it was disappointed that wholesale open access hadn't been approved. Approval of the measure would likely have paved the way to a third broadband pipe for consumers.

Gene Kimmelman, vice president for federal affairs for Consumers Union, said of the FCC action: "It's a small benefit way off in the future that conceals a really blown opportunity to bring prices dramatically down and increase broadband speeds enormously through competition."

The auction, scheduled to be held in January, won't likely have any impact on the marketplace until 2010 after winning bidders complete their network infrastructure and consumer devices.

Link to Information Week Article

Facebook Rate Card Leaked To Blog: $10 CPM +

WANT TO SPONSOR A FACEBOOK page? It will cost you $10 a CPM plus $2 to $5 extra for targeting costs, according to a February rate card leaked to industry blog Valleywag this week.

According to the rate card, which Facebook refused to authenticate, marketers have to shell out a minimum of $50,000 for the prized sponsorships.

A "Homepage Sponsored Story" on Facebook draws a click-through rate "10-20x higher than banners," according to the rate card obtained by Valleywag.

Buying into a "Facebook Sponsored Group" requires marketers to commit at least $150,000 over three months. That would bank Facebook roughly $90 million dollars a year in sponsorships alone.

In accordance with those numbers, Jim Breyer, managing partner of Facebook investor Accel Partners, recently told attendees of Fortune's iMeme conference that the social network would take in well over $100 million this year.

(Breyer, a Facebook board member as well, also said the company is profitable and will post a positive EBITDA this year, according to press reports.)

Existing Facebook sponsors include Victoria's Secret, Dave Matthews Band, Apple, eBay, MTV, and Red Bull.

Facebook has grown three times as fast as MySpace in the past year, according to Nielsen//NetRatings. Seeing a massive influx of first-timers, Facebook U.S. visitor numbers reached 26.6 million in May--up a full 89% year-over-year and 3.6 million more than in April, according to comScore.

Worldwide, comScore reported, Facebook reached 47.2 million visitors in May--8.4 million more than in April, and with an average of 20.6 visits per user.

Last August, Facebook did a deal with Microsoft to place all banner ads and paid links on the site, follows closely on the heels of a similar partnership struck between MySpace and Google.

According to major research companies, Facebook's fortunes will only improve as inventory on social sites switches from remnant ads provided by ad networks to more lucrative rich media and video ads.

"Today, inventory on social sites is fulfilled largely through ad networks and contextual advertising, but as they mature, they will begin to use tactics such as behavioral targeting that allow for better monetization of their inventory," Jupiter Media analyst Emily Riley said in a recent report.

Industrywide, eMarketer estimated earlier this year that social ad spending will reach $865 million this year, and grow to $2.2 billion in 2010.

Link to MediaPost Article

iTunes Store Tops Three Billion Songs

CUPERTINO, California—July 31, 2007—Apple® today announced that more than three billion songs have been purchased and downloaded from the iTunes® Store (www.itunes.com). iTunes is the world’s most popular online music, TV and movie store featuring a catalog of over five million songs, 550 television shows and 500 movies. iTunes recently surpassed Amazon and Target to become the third largest music retailer in the US.*

“We’d like to thank all of our customers who have contributed to this incredible milestone,” said Eddy Cue, Apple’s vice president of iTunes.

With Apple’s legendary ease of use, pioneering features such as Cover Flow™, integrated podcasting support, iMix playlist sharing, seamless integration with iPod® and iPhone™, and the ability to turn previously purchased songs into completed albums at reduced prices, the iTunes Store is the best way for PC and Mac® users to legally discover, purchase and download music and video online.

*Based on data from market research firm the NPD Group’s MusicWatch survey, which captures consumer reported past week unit purchases equivalized so that one CD equals 12 tracks, excluding wireless transactions.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

Link to Apple Press Release

Eyespot Brings Professional Veneer to Grassroots Video Efforts

At ad:tech Chicago this week, Eyespot announced the launch of Media Campaign Platform, which assists brand managers and ad firms build interactive video with a professional veneer.

Reporting and analysis tools are included in the offering, which was demonstrated on the exhibit floor yesterday. The system boasts a drag-and-drop-style interface and grants administrators multi-tiered access control, as well as other safeguards.

Brands like Lucas Films' Star Wars, Sony BMG and the NBA have utilized Eyespot technology, according to Co-President Marcus Peterzell of Eyespot's agency of record, AWE of Omnicom Group.

The topic of "doing video right," and disseminating ads across the medium properly, is one that strikes frenzied interest among ad:tech attendees this year.

Link to MarketingVox Article