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Mktg – A $100 billion media company?

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Scandal hits IBM, McKinsey
Earnings blitz to test market’s mettle
Google goes global with Apps
: It might well end up being the most googled book on Google. Bestselling author Ken Auletta’s book on Google’s notoriously private founders, Larry Page and Sergey Brin, is not published yet, but it promises to fly off the shelf, whenever it’s finally out. From discreet media previews, it appears that the keenly-awaited book will tell the story of how Google formed and crashed into traditional media businesses-from newspapers to books, to television, to movies, to telephones, to advertising, to Microsoft, in a massive Google wave that kept disrupting and redefined media landscape.

As per information posted on the author’s oficial website , http://www.kenauletta.com/, Auletta uses Google as a fitting case study for the unfolding digital revolution. Inviting readers inside Google’s closed-door meetings to share the “secret sauce” of Google’s success, he is purported to have shown how and why the worlds of “new” and “old” media often confusing merge as one. And the results of all this are there for everyone to see—Google is slated to generate about $20 billion in advertising revenues this year, more than the combined prime-time ad revenues of CBS, NBC, ABC, and FOX. And with its ownership of YouTube and its mobile phone and other initiatives, Google CEO Eric Schmidt tells Auletta his company is poised to become the world’s first $100 billion media company!

Stay tuned!

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Bottom-up?

The online ad market is close to bottoming out, according to new report issued by industry tracker eMarketer. The research firm, which compiles spending reports from various sources to offer its forecast for the digital industry, predicts that spending will continue to decline for the second half of 2009, but that over time, this decline should decelerate.

The assessment is based on the online ad spending figures released earlier this week by the Interactive Advertising Bureau and PricewaterhouseCoopers, which found that total revenue had slid by 5.3% over the year to $10.9 billion.

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Pizza Hut, Gap in Apple application ads

A few innovative branded applications are enjoying a cameo in Apple’s latest iPhone spots. The bad news is there isn’t some formal application process to follow in their footsteps—the marketers in question didn’t request to be in the commercial at all. But the good news is that the lucky participants think they know why they got the call: Their applications show off smart use of iPhone technology and offers great user experiences. And Apple responded in kind. Barnes & Noble, Pizza Hut, Gap, Epicurious and Zagat were among those favoured with free airtime in the new campaign from Apple’s creative agency TBWA/Chiat/Day.

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Toyota, Saatchi sued for terror marketing campaign

Toyota Motor USA and its ad agency of record, Saatchi & Saatchi, Los Angeles, engaged in a bizarre, online “terror marketing campaign” that frightened and harassed thousands of consumers via e-mails, according to a lawsuit filed September 28 in Los Angeles.

The suit claims the online effort, dreamed up by Saatchi to create buzz for the youth-targeted Toyota Matrix, involved a series of e-mails last year to plaintiff Amber Duick from the fictitious Brit Sebastian Bowler, who had moved to the US.

The final e-mail had a link to a video that showed Bowler driving into a drive-in movie where the film “Imbecile” was playing. A Toyota spokesman said the automaker doesn’t comment on pending litigation.

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The Twitter effect on movies

Can the so-called Twitter effect boost a movie’s box-office performance faster than any traditional form of word-of-mouth? Not yet, say many top movie marketers and researchers, but the social networking platform’s impact on a studio’s media mix and campaign management has already taken shape, says Ad Age.

Sony Pictures, one of the first studios to create branded Twitter pages for its films, used the medium to great effect by keeping the buzz alive on new releases such as District 9, Julie & Julia and The Ugly Truth. The result? Grosses of $113 million, $90 million and $88 million, respectively, and counting. Market research firm 360i recently tested the Twitter effect by comparing Twitter traffic for Bruno during its first weekend at the box office with three other summer films, and found Bruno to have the highest percentage of drop-off in second-day BO grosses (-39%) and negative tweets (21%).

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Branded content, the new name of the game

The newest media trend is driving revenues through exploiting intellectual property, selling related advertising and sponsorship, and securing distribution and syndication deals. Richard Pinder , COO of Publicis Worldwide has gone on record saying “the relationship between advertising and television production is changing fast: It is now a relationship of equals.”

According to a statement, Publicis Entertainment is working “on a number of major branded content projects with Publicis Worldwide clients”, and with production companies including RDF, All3Media, Fremantle and Endemol. Pinder said, “The three-minute programme is joining the 30-second spot as an industry benchmark.”

“Media barter deals and sponsorship will continue to help brands shepherd and associate themselves ‘around’great television,” he said.

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Murdoch, Chinese President Hu Jintao spar at World Media Summit

In an unprecedented exchange, Chinese President Hu Jintao and global media executives including News Corp chief executive Rupert Murdoch sparred in successive speeches recently, offering different takes on the news media’s role in society. The incident that took place at the inaugural World Media Summit at Great Hall of the People in Beijing recently got reported in The Hollywood Reporter. Top guns of the media industry, Hu, Murdoch and executives from Thomson Reuters, The Associated Press and The British Broadcasting Corp, were among those present at the meeting organised by China’s state-run Xinhua News Agency to discuss ways global media might cooperate to overcome the recession in the industry and the resulting migration to the internet medium.

Hu, adhering to the Communist Party’s mandate on state control of media said, “All media organisations should be dedicated to the lofty cause of pushing forward peace and development.”

The party controls media in China, limiting access to news from foreign organisations, besides heavily censoring domestically produced news.

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Recession inertia may get carried into 2010

PepsiCo CEO Indra Nooyi is of the opinion that the impact of recession will get carried forth to 2010. “Our consumer research shows that the age of thrift that we are seeing in consumers in the US and Western Europe will continue in 2010 and that consumers will continue to remain very careful about their spending,” Nooyi told mediapersons, recently. She believes that purchase behaviour in these markets is likely to be shaped by two key factors—price, and health. Acting on this insight, PepsiCo will seek to introduce a range of cheaper products to tap into the changing needs of its customers.

“We will continue with high levels of investment in R&D to create products that have true science based differentiation and will enable us to accelerate our health and wellness transformation,” she continued, undaunted by reports of a new “soda tax” on the manufacturers of unhealthy drinks (read cola companies).

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October 20, 2009 - Posted by | Uncategorized |

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