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There will be no blog postings until Mid Agust July 31, 2008

I’ll return from vacation august 11th and resume posting then.

Mark

Tweens’ Favorite Media Online, Search Integral to Shopping July 30, 2008

The vast majority (83%) of tweens (those age 10-14), spend at least an hour online per day, compared with 68% reporting they watch an hour of TV per day, according to an ROI research study commissioned by DoubleClick Performics, writes Chief Marketer.

Radio (29%), magazines (10%) and newspapers (5%) were less popular among tweens, writes DoubleClick SVP of search operations Stuart Larkins.

The research studied the online search and purchase behavior of various demographic segments across 10 product categories. Some 1,000 panelists from eReward’s active members responded to the survey.

Search

• A minimum of 40% of tweens reported using search to gather more info about products/services about which they’d seen an ad.
• Some 78% said they use Google most often; 14% cited Yahoo instead.
• More than a third of tweens said search results have had “extreme impact” on their decision to purchase apparel.

Product Categories

The top product category of interest to tweens is apparel; they report shopping for apparel on average 8.2 times over the previous six months, for electronics 4.5 times, home furnishings 4.4 times.

Among the apparel and electronics categories, the following are the items that tweens primarily recommend or purchase:

• Apparel: Everyday/casual clothes, footwear and accessories
• Electronics: MP3 players, videogaming systems and digital cameras

Search is an integral of the online and offline shopping process, according to DoubleClick. Fore example:

• More than half said they use search to determine where to purchase apparel offline
• 80% typically search for apparel brand names
• Two-thirds use search to find the best price for electronics
• Though 71% of tweens’ home-furnishing purchase take place offline, 52% of those purchases involved search.

Online Behavior

• 87% of those who go online more than three times a day (nearly half of tweens do) spend at a minimum half an hour online each time. Six in 10 visit social-network sites at least once a day.
• Seven in 10 have a social-networking profile, more than 5 in 10 have a profile on MySpace, more than 3 in 10 have a profile on Facebook.
• Less than 4 in 10 reported reading blogs frequently or occasionally.

FOR MORE GREAT MARKETINGCHARTS CONTENT CLICK HERE

AOL Belt-Tightening Forces Bloggers to Post for Free July 30, 2008

Bloggers working for AOL have been asked to cut back on postings or to stop posting altogether, while others are being asked to post for free, as the Time Warner company conducts some belt-tightening.

AOL has pulled back on posts at most of its 40-odd blogs for the month of July in the hopes of containing costs. Things are expected to go back to normal in August, writes Silicon Alley Insider.

As one AOL blogger told TechCrunch, most sites are working on a 5 posts/day deal, as long as those posts are written by U.S. writers. Anything above and beyond five posts a day is unpaid, and will be written under a staff account. The blogger said that nearly everyone had agreed to post for free in the hopes they will still have jobs come August.

Yahoo Music Does The Right Thing: Issues Refunds to Customers July 30, 2008

Senator Ted Stevens Indicted: MediaBytes with Shelly Palmer July 30, 2008 July 30, 2008

If you are having trouble viewing our video player, check out MediaBytes on YouTube.

Watch Shelly’s commentary on Alaskan Senator Ted Steven’s indictment and his famous Internet tubes speech.

Page Six is reporting that NBC’s (NYSE: GE) summer ratings are so bad, co-chairman Ben Silverman’s could be out of a job if his Fall lineup doesn’t catch on. One insider was quoted as saying “It the fall is as bad as the summer, someone will have to take the blame, and it won’t be Jeff Zucker.” This is a classic example of why managing for margins is lethal to the entertainment industry.

LIVE NATION (NYSE: LYV) may be outsourcing the distribution of its 360-deal artists back to the record labels. The New York Post is reporting that CEO Michael Rapino wants to license artists back to labels to cut down on overhead. If true, Live Nation could license marketing, promotion and distribution of records to the WARNER MUSIC GROUP, where 360-signees Madonna and Nickelback defected from.

YAHOO (NASD: YHOO), INTEL (NASD: INTC) and HEWLETT-PACKARD (NYSE: HPQ) announced plans for a cloud computing research initiative. The plan is to open 6 data centers across the world, each with 1,400 to 4,000 processors. The deal caters to written applications but will also focus on distributed management, networking and operating systems.

AMAZON (NASD: AMZN) will now offer its payment plan to other online retailers. Checkout by Amazon will work like OpenId, allowing the 81 million customers who’ve given their shipping and credit card info to Amazon, to access it on third party sites. Amazon also introduced Amazon Simple Pay, which is similar to PayPal.

Online Advertising Effectiveness Gets Significant Boost from Branded Content July 30, 2008

Online Publishers Association Analysis of Independent Data Shows that Branded Content Sites Consistently Provide Greater Impact than Industry Norms, Portals and Ad Networks NEW YORK, July 30

NEW YORK, July 30 /PRNewswire/ — Across a wide range of advertising metrics, branded content sites outscored Internet industry norms for the Internet 41 out of 43 times according to a new research report released today by the Online Publishers Association (OPA). Additionally, “beyond-the-banner”

forms of online advertising such as video, sponsorships and rich media also
outpaced industry norms when placed on branded content sites.

The OPA report, "Improving Ad Performance Online: The Impact of
Advertising on Branded Content Sites," leverages Dynamic Logic's
MarketNorms(R) database, an industry standard for measuring online
advertising's effectiveness and branding impact.  The OPA study provides an
extensive analysis of ad effectiveness scores for branded content sites, as
represented by OPA members, compared with those for overall MarketNorms,
portals and ad networks.

A copy of the report is available at http://www.online-publishers.org.

"It's an absolute fact with online advertising: environment matters," said
OPA president Pam Horan.  "In nearly every category measured, ad effectiveness
scores on branded content sites were numerically higher than on the Web in
general, on portals or on ad networks.  Whether it's the trust they engender
or the audiences they attract, branded content sites deliver better
advertising results."

Branded content sites are particularly effective at improving two of the
most difficult metrics to impact: brand favorability and purchase intent.
When it comes to brand favorability, branded content sites provide a 29%
improvement over average online advertising performance in MarketNorms.  For
purchase intent, branded content sites provide a 20% improvement.  With both
measures, there is an even greater bounce among affluent audiences.  Branded
content sites are 24% more effective than overall MarketNorms at impacting
purchase intent among those with household incomes of $75,000 or greater.

"Nearly all forms of online media have an important role to play
throughout the purchase 'funnel,'" Horan continued.  "But branded content
sites have a notably greater impact at the points where consumers are
establishing brand preference and making purchase decisions.  Simply
delivering better results is good, but being able to break-through at those
critical moments when consumers are making their decisions is a tremendous
advantage."

When it comes to beyond-the-banner advertising such as video or
sponsorships, branded content sites also provide advertising advantages.  The
OPA analysis shows that video advertising on these sites provides an 82% brand
awareness boost over MarketNorms' overall online video advertising averages
and a 67% boost for improving brand favorability.  Rich media ads on branded
content sites provide a 28% brand awareness improvement over MarketNorms.

"Branded content sites are doing a particularly effective job of
delivering results with developing advertising formats, including video
advertising and rich media," Horan continued.  "Just as we have seen with
offline media, the value of context cannot be underestimated -- a point that
is clearly reaffirmed in this study.  A sponsorship on a 'name' site delivers
the power of that media brand to the advertiser associated with that content."

The full report is available at http://www.online-publishers.org, and
includes more extensive comparisons.  Among the key additional points in the
research:

-- Sponsorships on branded content sites are 42% more effective than the
overall MarketNorms average and 36% more effective than on portals.

-- 18-34 year olds are more responsive to ads on branded content sites:
they are 33% more likely to form favorable opinions about advertised brands
than when viewing ads on portals.

-- The overall findings are consistent across advertising categories.  For
example, consumer packaged goods advertising on branded content sites gets a
26% lift in purchase intent over MarketNorms.

MarketNorms data benchmarks online ad campaigns from 3,900+ AdIndex
surveys among more than 6 million people, evaluating over 163,000 creatives
across more than a dozen industries and hundreds of sites.

Dynamic Logic's MarketNorms(R) is a marketing effectiveness database.  The
results cited have not been adjusted for exposure frequency, demographics, ad
size, websites, advertiser industry and other factors that may contribute to
brand lift.  These findings are aggregate in nature, reflect past results and
are not a guarantee of future results for individual campaigns. The data in
this report listed under overall MarketNorms refers to the average performance
of all online campaigns measured by Dynamic Logic in the last 3 years,
including those on branded content sites, portals and ad networks.

The data in this release has been tested for statistical significance at a
90% confidence level and is sourced accordingly.

About the OPA

Founded in June 2001, the Online Publishers Association is an industry
trade organization whose mission is to advance the interests of high-quality
online publishers before the advertising community, the press, the government
and the public. Members of OPA represent the standards in Internet publishing
with respect to editorial quality and integrity, credibility and
accountability. OPA member sites have a combined, unduplicated reach of 131.7
million visitors, or 73% percent of the total U.S. Internet audience (Source:
comScore Media Metrix, July 2007 combined home/work/university data). For more
information, go to http://www.online-publishers.org.

SOURCE  Online Publishers Association

Verizon’s FiOS Growth Slowed: MediaBytes with Shelly Palmer July 29, 2008 July 29, 2008

If you are having trouble viewing our video player, check out MediaBytes on YouTube.

Watch Shelly’s commentary on VERIZON’s (NYSE: VZ) slowed FiOS growth and how it may be a reflection of the struggling economy.

AT&T (NYSE: T) has banned subscribers from using file sharing programs on their mobile devices. Subscribers caught using P2P applications by AT&T will have their service terminated. Like Comcast who was caught throttling broadband traffic, AT&T claims that “a small number of users of P2P file sharing applications served by a particular cell site could severely degrade the service quality enjoyed by all customers.”

ALCATEL – LUCENT (NYSE: ALU) posted a net lose of $1.7 billion. The enormous lose is nearly double what Alcatel-Lucent posted for the second quarter of 2007, a $586 million euro lose. As a result, CEO Patricia Russo and Chairman Serge Tchuruk will both step down by the end of the year, in order to make room for a new management model.

SONY’s (NYSE: SNE) profit is down 39% for the quarter. Sony has been greatly affected by rising production costs and a failing deal with mobile phone manufacturer ERICSSON. As of Monday, SONY’s stock was down almost 30% since the start of 2008.

NBC NEWS (NYSE: GE) has named Mark Whitaker the new D.C. Bureau Chief. Whitaker, a Senior VP at the Peacock and former journalist, will take over Tim Russert’s former job effective immediately. NBC News head Steve Capus noted that Whitaker was an “ideal candidate for the

Industry Buzz & Snippets: 7/29/08 July 29, 2008

GET MORE GREAT MARKETINGVOX CONTENT INCLUDING NEWSLETTERS HERE

When is it time
to tell your secrets?

Ad Networks and Analytics:

• Collective Media launched the Collective Video Network, which gives advertisers access to “premium video content for in-stream ad formats.”

Agencies and Marketing Execs:

• Embassy Suites Hotels made BBDO Atlanta its creative agency of record. The account is worth $15 million.
• Imc2 named April Weeks its VP of Media Services. She was formerly VP/Director of Digital Media for TM Advertising.

Biz Buzz:

• Unilever sold its detergent brands to Vestar Capital Partners, which already owns Huish Detergents. The new body is still only second-largest to Procter & Gamble.
• Mogulus drew a $10 million minority investment from Gannett Co.
• Concerns over Steve Jobs’ health are making investors nervous and providing gossip hounds with a unique opportunity to poke at Apple’s culture of secrecy. Ad Age describes why Apple must tell its story.

Gaming:

• Nickelodeon is launching a massive multiplayer online game called Avatar: Legends of the Arena to promote its show Avatar: The Last Airbender. It goes live across 81 markets and in 10 languages. Exclusive in-game content will appear in certain episodes of the show.

How-To:

• Downloadable webcast: five considerations to protect against email outages and data lost during an upgrade or migration.
• 12 best practices for online customer communities. (Scroll down until you see emboldened text.)

Social Networks:

• Seth Godin is launching a members-only social network for marketers. Users get a discount for his new book.
• Fujifilm tries promoting the FinePix Z camera with a dedicated social networking site called ZSpotNow. Reviews are mixed.
• Katz and Clear Channel launched what they are calling the “broadest, most diverse” online audio network.

User Experience:

• 90 percent of dollars ad dollars are spent to reach six million four-year college/university students, according to a new survey by Mr. Youth.
• Some people — a woman in particular — are tired of the romanticist bubble surrounding Mad Men.

People On The Move July 29, 2008

Leftover Ad Space? Exchanges Handle the Remnants ( Via New York Times) July 29, 2008

Joe Zawadzki’s traders spend their days in front of two computer screens, feeding their systems with data and trying to perfect their trading algorithms.

But they are not analyzing stocks. They are analyzing advertising.

What they are measuring is activity on advertising exchanges, where companies bid to place their online ads on space provided by publishers. As advertising exchanges gain popularity — Yahoo, Google and Microsoft have all moved into this arena recently — Madison Avenue is borrowing tactics from Wall Street.

It is reminding some observers of what happened when technology came to the stock exchange, including the arrival of trading advisers like Mr. Zawadzki’s firm, MediaMath, that are running numbers and promising to offer sophisticated financial instruments.

For now, Mr. Zawadzki is using the exchanges to buy and sell ads instantaneously as opportunities arise — a spot market, in Wall Street lingo — but he is working on more complex trading strategies.

“Right now it’s more the in-the-moment, taking advantage of the spot market with aggressive bid management,” said Mr. Zawadzki, whose firm is based in New York. “But we’re certainly thinking about where that goes later in terms of secondary markets, derivatives, options, hedges, all the rest.”

Big publishers try to sell Web site advertising space through their sales forces at high prices. Most cannot sell all their inventory, so they send the leftover, or “remnant,” space to an ad network or to an ad exchange. These deliver an ad, but at lower prices than the publishers’ sales forces fetch — usually around $1 per thousand impressions, versus the $20 and up that top sites’ sales forces ask for.

Ad networks and ad exchanges are both in the business of selling remnant inventory, but they do it in slightly different ways. The networks, which function as middlemen, sell chunks of inventory through their sales forces, which can simplify the buying process for advertisers.

Exchanges, on the other hand, let advertisers buy ads directly, and place them one by one. Because there are usually lower fees, buying off exchanges tends to be cheaper — though more labor-intensive — than buying through networks.

In 2007, exchanges sold about 15 percent of the remnant inventory, and about 5 percent of online display advertising overall, according to ThinkPanmure, a research and financial services company. Most of the other 85 percent was sold through networks.

The major appeal of exchanges is that with some analysis, advertisers can buy ads one by one, and track the performance of each ad. This contrasts with ad networks, which roll up broad audiences for advertisers (often using the exchanges) through their own sales forces.

Ad exchanges have gotten a few big boosts lately. In 2007, three major portals announced they were buying exchanges. Yahoo bought the Right Media exchange for $650 million; Google announced it was buying DoubleClick in April, which had announced weeks earlier it was setting up what is now called the DoubleClick Advertising Exchange, for $3.1 billion; and Microsoft acquired the exchange AdECN.

Last month, the advertising holding company Publicis Groupe said it would start working with DoubleClick and Right Media’s exchange to buy advertisements. The advertising companies Havas Digital and WPP have announced similar deals with Right Media in recent months.

But it is not so much the exchanges themselves that is interesting the advertising world — it is what can be done with them.

“The exchanges are just a platform to buy and sell media, but you have to layer the measurement and data on top, which could come from different areas: some agencies will build it, some agencies will partner,” said Darren Herman, head of digital media at the Media Kitchen agency.

“We use the analogy of, anybody can trade on the financial markets, anyone can get an eTrade account, but it’s how you’re smart about how you use your eTrade account that determines how well you’re going to do trading,” Mr. Herman said.

With some Wall Street-like analysis, advertisers can find individual Web surfers, figure out how much to pay to show them an ad, and analyze how those ads have performed. Firms like Mr. Zawadzki’s are analyzing which of those users might be attractive, then tracking whether people click on the ads they see. If an advertiser wanted to reach a very specific group — say, people in Atlanta who have already visited its home page — it might bid more to get that audience.

The growth of exchanges has a clear benefit to advertisers, allowing them to test multiple ads quickly with specific groups, potentially minimizing expensive campaign testing and focus-group work.

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