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July 2008

July 31, 2008

The Legacy of Casual Games

Casual games saw a large-scale shift from a paid or subscription-based model to ad-supported model over the past few years. It's influenced developers and publishers to change gears away from a try-before-you-buy strategy. Results have paid off for many casual game developers: advertising has brought in more revenue than from online consumer purchases of games. Even in-game advertising networks such as Double Fusion are getting casual, and many publisher sites readily share ad revenues with developers.

What if you're not as big as MySpace, or Yahoo? How do you bring traffic to the site or gain distribution? That's the challenge. Legacy Interactive, a developer of casual games titles such as "Lost Cases of Sherlock Holmes," "Zoo Vet," "The Apprentice," "Clueless," "Mean Girls," and "Pretty in Pink," evolved over the past few years from selling CD-rom games, to downloads, to experimenting with ads. To monetize its games sites including Legacy Games the company has entered into lead-gen relationships to subsidize games. "Customers are interested in alternatives to plunking down $20 on their credit cards," said Ariella Lehrer, CEO of Legacy Interactive. They've also explored opportunities with PaidGamePlayer and other companies.

Currently Legacy has partnered with Mochi Ads, an ad network for online Flash games. We're told that the partnership creates a distribution network and brings a great deal of traffic back to Legacy, Lehrer told me. While Legacy has gained significant site traffic, there are still ad opportunities to fill, according to Lehrer. She's been challenged to find a company to partner with for product placements on upcoming titles, and sees opportunity in pre-roll and mid-roll units in-between levels. One roadblock she's encountered is finding the balance between specialization within an ad network in the casual games category, and distribution in the form of traffic to Legacy sites, or distribution of Legacy games on other casual games sites.

Posted by Enid Burns at 2:51 PM | Permalink | Comments (0)

July 30, 2008

Local Ad Sellers Improving, Marchex Upgrades Platform

The speed with which local advertisers shift their budgets online has everything to do with how easy ad sellers (see: Certified Marketing Representatives) make the process. This can be accomplished by bundling online ad buys with traditional ones, or by offering ad giveaways and other promotions. By and large though, it's up to the principle ad vehicles -- such as yellow pages and search platforms -- to create tidy packages for the little guys.

We learned earlier this week that Yellow Pages providers are making a swift and efficient transition to the Web. Now local ad player Marchex has unveiled its own set of improvements.

The company has released Connect 2.0, a new version of its ad platform that unites its offerings to local marketers. The system integrates a number of Marchex holdings, including those of pay-per-call ad technology firm VoiceStar -- acquired by Marchex a year ago.

The new system also adds business profile page, two pricing models for performance-based campaigns (guaranteed and budget-based), and the creation of a Digital Platform Group that offers resources to Marchex's reseller partners as they seek to transition their regional business prospects to the Web medium.

Posted by Zachary Rodgers at 12:00 PM | Permalink | Comments (0)

July 29, 2008

CA Lawmaker Wants Google/Yahoo Deal Investigated

California Assemblyman Joel Anderson wants the state's Attorney General to inspect the Google/Yahoo search ad deal. It's already stalled by the U.S. Department of Justice. According to a CNET report, the San Diego Republican wrote the following to the AG: "I am writing to urge you to direct your office to take quick and decisive action by launching a formal investigation into the proposed business transaction between Google and Yahoo's search-advertising business."

Like other critics, he's worried about search data privacy as the companies combine forces for some advertising. He's also worried about competition, which is the DOJ's main concern.

Yahoo denied the notion that it will merge data with Google.

Posted by Kate Kaye at 5:10 PM | Permalink | Comments (1)

July 28, 2008

Glam Goes After LOHAS Set with Wellness Vertical

It's been a busy summer for Glam. In the past two months alone the women-focused media and ad network has unveiled a hip-hop content vertical, an e-mail newsletter channel, and new outposts in Germany and the U.K. It's also trying to get in on the platform money with the launch of a video syndication play and a system for creating vertical ad exchanges.

So when's a girl to find time for herself? Maybe that's the question Glam's secretly hoping to answer with a new vertical geared toward "balance and healthy living."

The Glam Wellness channel is made up of sites like EcoFabulous, Natural Solutions Magazine, EatingWell, Lifescript, and Spaparazzi. Soyjoy is the launch sponsor for the specialized network, which claims to reach three million uniques.

The content and services are geared toward a demographic sometimes referred to as LOHAS (Lifestyles of Health and Sustainability). The vertical is distinct from Glam's Health channel, which is more about diet and fitness. It comes along at a time when the ad buying marketplace has become somewhat saturated with ad networks -- and especially vertical ones. Nevertheless Glam is dead-set on competing with a tough set of female-centric media rivals, including NBC's iVillage, Martha Stewart Living Omnimedia and Sugar Publishing, which just ditched its repping deal with NBC and said it would hire 20 in sales.

Glam is aided by $85 million in new funding, which it scored back in February. It expects to use some of that cash to open outposts in France and Japan.

Posted by Zachary Rodgers at 1:08 PM | Permalink | Comments (0)

Make Mobile Useful

When was the last time you had a good experience at airport security?

I know, I know. But traveling through Newark on Continental yesterday bordered on the thrilling -- in a good way. Continential is now offering something I've long yearned for: a smart phone enabled boarding pass. The thing is actually invalid if you print it out.

A barcode and airline logo are displayed on the handset's screen, together with seat and gate information. It's scanned by both the security screeners and airline personnel at the boarding gate. Not only did it work, none of the personnel even blinked - new as this is.

I don't know about you, but I've always hated wasting paper printing out boarding passes, and dealing with the how to get hard copy issue whilst on the road. Really useful and convenient mobile innovations such as the boarding pass can also have a halo effect on advertising and marketing initiatives. By making mobile really useful and necessary, brands can create affinity and goodwill -- as well as make consumers look forward to their next mobile connection with the brand.

Posted by Rebecca Lieb at 10:45 AM | Permalink | Comments (0)

July 25, 2008

What the Heck Is 'Page Search'?

If you happened to catch coverage of Microsoft's extended deal with Facebook, you may have read reports suggesting that the social site will now run Microsoft's "page search" advertising. The transcript of Steve Ballmer's somewhat frenetic speech before financial analysts yesterday has him employing the term multiple times, including when describing the Facebook deal.

Shocker: The transcription is wrong.

As you may have guessed, it should have read "paid search," which is, indeed what Ballmer said.

A Reuters report seen on The Guardian site, along with others, perpetuates the error.

ClickZ's story, on the other hand, does not.

Posted by Kate Kaye at 4:23 PM | Permalink | Comments (1)

Absolut Behind Miracle Anti-Michael Jackson Drug Viral

Ever seen a spoof ad on the NYC subway?

No? That's what I thought.

Which is why my mind got bent six ways when I noticed BeKANYE yesterday on the downtown R train. Value proposition: two fizzy tablets dropped in water transform you from a white guy with receding chin and hairline into...well, Kanye West.

I couldn't find it online, but a friend did this morning. Funny thing is this afternoon, at the offices of a major publication, someone had tacked a digital printout of the subway print camapign to their monitor. This at least confirmed I had not been hallucinating of the subway (always a possiblity in +90 degree heat).

Absolut's the culprit, mocking direct and infomercials.

Posted by Rebecca Lieb at 3:46 PM | Permalink | Comments (2)

Quote of the Day: Eric Goldman on NebuAd and Phorm

"The battles over the legality of Phorm and NebuAd are a smokescreen for the real issue, which is that marketers who have only server-level data don't want to compete against someone who has a better dataset than them. So expect plenty of continued fireworks over Phorm and NebuAd, but don't kid yourself that it's only the privacy advocates beating up on them."

-Eric Goldman, expert on Internet law and professor at Santa Clara University, commenting on the legality of behavioral tracking and ad serving platforms that tie into ISP networks.

Posted by Zachary Rodgers at 10:46 AM | Permalink | Comments (0)

Obama Job Board

Who says there aren't any good summer gigs these days?

According to ePolitics, Barack Obama's campaign is looking for e-mail writers and producers who get the data and reporting side of things.

To me, this signals more super-targeted e-mails sent to a variety of constituencies.

Posted by Kate Kaye at 10:26 AM | Permalink | Comments (0)

July 24, 2008

Publicis Acquires Korean Agency Portfolio

Publicis Groupe announced recently it has acquired South-Korean full-service digital agency Portfolio, adding to the group's existing Asian operations in Beijing, Hong Kong, Kuala Lumpur, Singapore, Taiwan, and New Delhi.

The agency will be integrated with Publicis' existing digital global network, Publicis Modem, and re-branded as Publicis Modem Korea.

Portfolio currently provides services such as site development, and search and display campaigns for major international brands including Microsoft Korea, Marriott Hotels, and Nissan.

In a statement, Martin Reidy, CEO of Publicis Modem, said, "Asia is a critical market for Publicis Modem and a key part of our global expansion," citing the group's strategy of targeting high growth international markets.

Publicis has acquired two major Chinese digital players in the past year -- EmporioAsia in May, and Communication Central Group last July.

The Group also released second quarter results today, claiming it's on track to reach its aim of generating a quarter of revenues from digital by 2010. Digital constituted 18.8 percent of business in the first half of the year, up from 12.7 percent the previous year.

Posted by Jack Marshall at 11:31 AM | Permalink | Comments (0)

July 23, 2008

Quote of the Day: NYT's Nisenholtz on 'Bifurcation' of Premium and Remnant

“We’ve seen decent price increases on major display units. There has been a bifurcation between premium positions and remnant, which largely includes banner. At NYTimes.com, we don’t see any cannibalization from the remnant business. At About.com, we’ve seen softness in display, mainly due to execution issues, which current investment proposals are attempting to address.”

-Martin Nisenholtz, SVP, Digital Operations for The New York Times Company, commenting on ad prices during the company's Q2 earnings presentation. (via Paidcontent.org)

Posted by Zachary Rodgers at 3:41 PM | Permalink | Comments (0)

Sugar Scraps NBC Ad Rep Agreement, Creates In-House Sales Team

Sugar Inc., operator of PopSugar and 14 other sites aimed at women, has nixed its ad sales relationship with NBC Universal and brought those functions in-house. The company is now in the process of hiring a 20-person sales team along with a VP of sales who has yet to be identified. The move comes just a year after Sugar agreed to let NBCU package and sell its inventory alongside that of iVillage.

A blog post about the decision gives little indication as to Sugar's precise motives, though it's common for maturing publishers to create a sales team as soon as doing so becomes feasible. That's because ad network or reseller relationships typically give the seller a cut of between 20 and 40 percent of revenue. (Update: Sugar PR said yesterday NBC had a 50 percent cut)

When Sugar fell in with NBC last summer, CEO and Publisher Brian Sugar told ClickZ the firm wanted to build out its own sales staff from the beginning. However, he said, "we realized it takes a large, experienced team to really execute on that. We, as a small company, had to make some decisions early on."

NBCU brokered deals for Sugar with brands such as Neutrogena, HGTV, Red Bull, Baileys, and AT&T, according to the blog post.

NBC Universal retains an investment stake in Sugar.

Posted by Zachary Rodgers at 3:34 PM | Permalink | Comments (0)

Online Video Ads: Tools and Trends to Watch

At ClickZ's Online Video Ad Forum yesterday, a fantastic line up of two dozen speakers offered up examples of their latest creative work and some shared info on tips and tools they think are worth watching.

During the day-long program at the Millennium Broadway Hotel, participants picked up intelligence on these things:

*Deep Focus' Ian Schafer credited a subtle change in an ad-serving format with improving results for one video ad campaign he worked on. Historically when video ads ran on a site, a loader screen would appear and then the ad would start. A change in DoubleClick's technology, he said, enables the video ad to launch immediately -- without the loader screen. That change, he said, resulted in a 30 percent increase in the interaction rate for a video ad promoting "Recount," an HBO film.

* In looking to the potential for a richer future for online video ads, Dorian Sweet, a digital strategist, pointed to a cool tool called PicLens. Using this tool, a Web site visitor can view photos or videos from a site such as YouTube on a "3D wall."

* Vibrant Media, which has technology called IntelliTXT that enables advertisers to "buy" keywords in content and then serve up text ads, has extended that feature so video ads can be viewed when someone mouses over a keyword in a blog or other online content, according to one speaker.

* Making online video content optimized for search engine remains a daunting task. Even though there have been some recent technology advances, the culprit are objects in Adobe Flash multimedia technology that cannot be read by search engine bots, another speaker said.

For more in-depth coverage of online video ad campaigns and other trends, check out my column here on Friday.

Posted by Anna Maria Virzi at 10:58 AM | Permalink | Comments (3)

July 21, 2008

Mobile Demos Skew Older and Older

The most interesting thing about the IAB's mobile forum this week?

It's not just about the kids any more.

In case study after case study, advertiser and marketers spent the day demonstrating how, well....old mobile advertising demos are becoming. Mike Anderson of Live Nation's ConcertVision Program probably put it best when he said that response to SMS promotions at "dinosaur" acts (such as Cheap Trick and Voyager) was all but nil a year ago, and through the roof this season.

Parents, apparently, have learned to text from their kids.

Again and again, we saw case studies from companies such as Jaguar and RIM, which don't exactly appeal to 20-somethings, but are gettign through-the-roof responses to mobile campaigns from older, affluent demos.

Could this mean that one day soon, the oft-promised year of mobile advertising may become a reality>

Posted by Rebecca Lieb at 9:22 PM | Permalink | Comments (0)

Yahoo Compromises with Icahn, Repeats Must Buy Mantra

In anticipation of its upcoming annual meeting of stockholders, Yahoo settled with activist investor Carl Icahn after weeks of wrangling over a potential proxy battle. According to Yahoo, eight members of its current Board of Directors will stand for re-election, and Icahn agreed to withdraw his nominees for consideration at the meeting. He also said he will vote his Yahoo shares in support of the Board's nominees.

"Following the 2008 annual meeting, the Yahoo Board will be expanded to 11 members. Carl Icahn will be appointed to the Board and the remaining two seats will be filled by the Board upon the recommendation of the Board's Nominating and Governance Committee from a list of nine candidates recommended by Mr. Icahn," according to a company statement.

Yahoo CEO Jerry Yang couldn't pass up the opportunity to tout the firm's goal to be the Web's "starting point" and an advertiser "must buy."

"This agreement will not only allow Yahoo to put the distraction of the proxy contest behind us, it will allow the Company to continue pursuing its strategy of being the starting point for Internet users and a must buy for advertisers," he said in the statement.

Is anybody else getting tired of this mantra?

The thing is, Yahoo still has the Microsoft drama that started the Icahn subplot to deal with before it can truly focus on becoming the "starting point" and "must buy."

Posted by Kate Kaye at 11:30 AM | Permalink | Comments (0)

July 20, 2008

As Seen On...

... a t-shirt for sale at a boardwalk shop in Wildwood, NJ.

Posted by Anna Maria Virzi at 8:53 PM | Permalink | Comments (0)

July 18, 2008

FTC Makes Antitrust Education Easy

Ever wonder how the Federal Trade Commission arrives at its decisions regarding whether to approve acquisitions such as Google's earth-shattering DoubleClick buy? No worries: The commish has put together a resource with 25 fact sheets on stuff like antitrust and price discrimination. With some huge Yahoo deal still looming, this could come in handy.

Posted by Kate Kaye at 4:48 PM | Permalink | Comments (0)

U.K. Government's Digital Spend Balloons

The U.K. government's digital media spending increased 57 percent year-on-year in the twelve month period ending March '08, according to the Central Office of Information's (COI) annual review released this week.

According to the office, the increased digital outlay "demonstrates that government - like the private sector - is following audiences online." The growth was attributed to a number of campaigns surrounding issues such as climate change, army recruitment, road safety and tobacco control.

Of the £156.9 ($314) million the COI spent on advertising media, £35.4 ($71) million of it went on digital - almost a quarter of its total spend. What's more, overall media spend only rose by 15.4 percent year-on-year, suggesting that the budget is moving online rapidly.

"From events and direct marketing to research and digital, both COI's established and newer channels have shown growth over the year," said Alan Bishop, COI Chief Executive, in a release.

Posted by Jack Marshall at 11:11 AM | Permalink | Comments (0)

EBay U.K. Ads go Behavioral

EBay has informed users it will begin rolling out behaviorally targeted ads in the U.K. this month, presumably using technology from AOL's Tacoda, as it did in the U.S. in October.

The AdChoice system will serve ads based on previous on-site searches and items purchased, as well as "information from other companies," according to an e-mail sent to U.K. members on Tuesday. eBay did not respond to queries as to which companies this may include. Existing publishers in Tacoda's network include the likes of Conde Nast, New York Times, CBS Digital Media, and Dow Jones.

A statement from eBay, e-mailed to me today simply read, "AdChoice provides a more personalised and relevant shopping experience for our users. Participation in this programme is entirely optional and does not involve disclosure of personal information to any third parties."

Though the AdChoice system will offer users an opt-out, members that are not happy with the resulting changes to the site's privacy policy are invited to close their accounts.

Posted by Jack Marshall at 11:07 AM | Permalink | Comments (0)

July 17, 2008

A Moment of IAB Appreciation

On this, a heat-index alert day, IAB head Randall Rothenberg's blog (or "clog," as he insists on calling it), is a breath of fresh air.

Today's entry, once you get past the "join the IAB" call-to-action, elegantly and articulately enumerates the scary regulatory and legislative threats (both on the state and Federal levels) facing online publishers.

Consumers and legislators don't understand what online advertising is, or how it works. Too many Internet publishers and advertisers, meanwhile, are tuning a blind eye to the implications of their ignorance, namely, bad laws that can carry significant negative economic consequences to those making a living off interactive publishing and advertising.

Rothenberg deserves a shout-out. Under his leadership, the IAB is meeting all sorts of challenges the organization too long ignored. Bringing smaller companies into the fold is just one of these. The much bigger picture is aggressively addressing threats to the industry on the legislative level. It's a far cry from the days when the body stood idly by while other measure, such as CAN-SPAM, wended its way through the FTC and ultimately, Congress.

Take a moment today to read Randall's most recent post. The goings-on in Washington may appear distant today, but the impact on your business is going to matter tomorrow.

Posted by Rebecca Lieb at 12:12 PM | Permalink | Comments (0)

July 16, 2008

Lawmakers Press NebuAd Offensive, Lean On Another ISP

U.S. Congressmen have called out another Internet service provider for working with behavior tracking and ad serving firm NebuAd.

House Representatives Edward Markey, John Dingell, and Joe Barton this week penned a letter to Embarq, one of the behavioral targeting vendor's early ISP partners. The missive requests detailed information on early tests the company conducted with NebuAd.

Depending on how you count, it's the second or the third time lawmakers have raised questions about ISPs' recent interest in tracking their subscribers' Web meanderings for ad serving purposes. Charter Communications was the first to table its plans to work with NebuAd after Congress raised public concerns over the deal.

Right after that move, Rep. Markey urged other broadband companies considering "similar user profiling programs" to hold off while the privacy implications are addressed. In short order, DSL provider CenturyTel called off its own plans with NebuAd.

The latest move by Markey and his fellow lawmakers suggests Congress is unlikely to let the issue die down. Embarq is being asked to cough up a range of info, including how many subscribers were involved in the test, how Embarq notified them of the tests, and whether it conducted a legal analysis with regard to consumer privacy laws before flipping the switch. The Reps are also asking Embarq to provide a copy of the notifications used to inform subscribers of the test.

Embarq declined to comment, saying only that it has received and is reviewing the letter from Reps. Markey, Barton and Dingell.

In a statement on his Web site, Rep. Markey characterized the data NebuAd collects as potentially "highly personal and sensitive."

He continued, "Embarq's apparent use of this technology without directly notifying affected customers that their activity was being tracked, collected, and analyzed raises serious privacy red flags."

Posted by Zachary Rodgers at 4:47 PM | Permalink | Comments (1)

July 15, 2008

Win a Free Ticket to ClickZ's Online Video Ad Event

Give us three good reasons why you'd like to attend ClickZ's Online Video Forum, which takes place next Tuesday, July 22 in Manhattan, and we'll let you in for free.

This show is a must-attend. Our speaker line-up is a who's who of the nation's leading interactive video experts -- representing Carat, Starcom USA, Enlighten, Ogilvy, MediaVest/Publicis Media Groupe, Denuo, Saatchi & Saatchi New York, Campfire, EVB San Francisco, IQ Interactive and more. You'll also get to hear from YouTube's Brian Cusack and Hulu's Kevin McGurn. Visit the conference Web site for more information.

What are you waiting for? Send your ideas to Anna Maria Virzi, ClickZ's executive editor, by 11 PM ET Thursday. We'll let you know by 2 PM Friday whether you'll get a free pass to this one-day event.

Posted by Anna Maria Virzi at 4:54 PM | Permalink | Comments (2)

Viacom-YouTube Reach Privacy Deal over User Info

Google's YouTube won't be required, after all, to hand over user IDs to Viacom.

The measure is part of an agreement reached yesterday in U.S. District Court in New York City in connection with a Viacom copyright infringement lawsuit against YouTube. In that lawsuit, Viacom claims Google failed to stop the distribution of Viacom content on YouTube.

Earlier this month, a federal judge ordered Google to hand over to Viacom the following information: YouTube user IDs, visitor IDs, and the IP address, which is used to connect computers over the Internet. Under the new agreement, Google will be able to substitute the IDs and IP addresses for "unique values." As a result, the privacy of users should be better protected, while Viacom should still be able to establish what videos were watched.

"We are pleased to report that Viacom, MTV and other litigants have backed off their original demand for all users' viewing histories," the "YouTube Team" wrote on YouTube's blog.

Most visitors posting entries on the YouTube blog applauded the development. "thanks, Youtube. It's good to know that at least one organization is committed to our privacy," wrote arcadianraider.

Others asked when Google would reduce the amount of information it obtains from users. "Great! So when are you going to let us OPT OUT of information collection?" asked thestranger.

Posted by Anna Maria Virzi at 10:34 AM | Permalink | Comments (2)

July 14, 2008

After AdTech Transition, AOL to Stay with DoubleClick for Some Clients

AOL has begun implementing AdTech's ad platform across some of its properties, as reported by AdAge today. I confirmed this with a company spokesperson, who told me in an e-mail that AOL's properties will be fully transitioned from DoubleClick's Dart for Publishers to AdTech's platform by early to mid 2009. AOL bought the German ad management firm last year.

"DoubleClick is fully aware of the transition, and we're working with them so that everything runs smoothly," the spokesperson told me.

As for the future of the DoubleClick/AOL relationship, that won't end all together: "We'll continue to use Dart for Advertisers for some clients. However, as the relationship applies to Dart for Publishers, the transition will be complete next year."

Posted by Kate Kaye at 5:38 PM | Permalink | Comments (1)

States Join DOJ in Google/Yahoo Probe

Connecticut and Florida are among "about a dozen states" reviewing the recent Google/Yahoo search ad deal, according to a recent Washington Post story.

They're concerned that the partnership is anti-competitive.

"If their agreement is a substantial one in its impact on services or costs, it could have a huge impact on competition. It could be hugely anti-competitive," Connecticut Attorney General Richard Blumenthal told the paper. Florida's AG Office said the state is working with other AG offices in its review.

The Department of Justice has already begun its investigation of the deal

State governments would have a vested interest if companies based in their states could be affected by Google and Yahoo working together on search advertising.

Microsoft is against Yahoo and Google partnering for a number of reasons: It bolsters their share of the search market and strengthens Yahoo in Microsoft's fight for the firm. Although it's not clear that Microsoft is out there lobbying state governments to poke their noses in the Google/Yahoo deal, it wouldn't be surprising if the company has prodded states to look into it.

Posted by Kate Kaye at 12:24 PM | Permalink | Comments (0)

July 11, 2008

Double Fusion Adds Sony PS3 to Network

Now that Sony has its in-game advertising strategy up-and-running, it's wasting no time signing on with ad network partners. In June Sony signed a deal with IGA Worldwide. This week it tapped Double Fusion to support its in-game ad sales both in the U.S. and Europe.

Much remains unknown. No publishers were named in the deal, and it will be months before we start to see ads on the PlayStation 3. Also, Phil Rosenberg, Senior VP of Sony Computer Entertainment America, and the head of the in-game advertising group, was somewhat ambiguous when asked if Sony would partner with Massive or Google for in-game advertising on a Sony console in the future.

Posted by Enid Burns at 2:57 PM | Permalink | Comments (0)

Google Mobile Image Ads: MMA Compliant

When Google launched its mobile image ads in April there was some disagreement over their compliance with the Mobile Marketing Association guidelines, which were issued around the same time. It's nearly three months later, and Google has posted on its mobile blog that it's now compliant with the six sizes outlined within the MMA guidelines for banner ads.

Posted by Enid Burns at 2:25 PM | Permalink | Comments (0)

July 10, 2008

WPP Goes Hostile for TNS, With Counter-Offer from GfK

German market research group GfK is putting together a cash offer for rival firm TNS (Taylor Nelson Sofres), in response to a hostile bid from Martin Sorrell's WPP launched yesterday.

WPP has offered £1.1 billion ($2.1 billion), after previous offers were snubbed by the company's board.

In response, GfK has issued a release stating it is terminating its own proposed merger with TNS, which has been in discussion since April, and will pursue "a proposal which would involve an alternative all-cash offer being made" with anonymous financial backing.

Although talks are still in early stages, GfK says it has received "strong indications of interest in such a transaction."

WPP made a significant step into the online ad arena with its acquisition of 24/7 Real Media last year, and TNS's online media research capabilities could complement 24/7's range of digital ad offerings, which include search marketing and a display ad network.

While some have suggested that the $2.1 billion price tag overvalues TNS in such a cautious financial climate, others believe market research will remain relatively healthy in an economic slump, fuelled by the concerns of nervous advertisers looking to validate campaign decisions.

Posted by Jack Marshall at 4:58 PM | Permalink | Comments (0)

U.K.'s Telegraph Newspaper to Monetize International Audience

U.K. publisher Telegraph Media Group (TMG) is following its competitors' lead, and seeking to monetize the non-U.K. readership of its main online property, Telegraph.co.uk.

According to MAD.co.uk, the group has signed a deal with global ad sales house AdGent 007 to sell its non-U.K. inventory to international advertisers.

Measurement firm ABCe says around two thirds of Telegraph.co.uk's 18.4 million unique visitors in May came from outside of the U.K.

Brian Harrison, digital director of Telegraph Media Group is reported to have said, "This deal is about gearing up to monetize this audience and begin exploiting the opportunities of overseas markets." He added that users in the U.S. make up the majority of the sites non-U.K. readership.

Harrison also hinted the deal could lead to the creation of specific content and features tailored to overseas users.

TMG competitors Times Online and the Guardian Media Group (GMG) both made similar moves recently. Times Online opened a U.S. sales office, while GMG signed a deal with Reuters<./a>, allowing it to sell its U.S.-aimed online inventory.

Posted by Jack Marshall at 11:24 AM | Permalink | Comments (0)

July 9, 2008

Waxler Veers off TheStreet.com's MainStreet

Caroline Waxler, managing editor of TheStreet.com-offshoot, MainStreet.com, is leaving that position, according to Portfolio by way of PaidContent.

ClickZ News profiled MainStreet in a feature a few months ago that, I have to say, was super fun to report and write, in part because of Caroline. If you haven't checked out the site, I described it as "a pop culture-inspired personal finance site." That's pretty much what it is. It's the kind of place you'll stumble upon doing searches on Alex Rodriguez's divorce. But instead of just providing the rundown on his doomed marriage and Madonna's rumored involvement, you'll get a healthy dose of information about pre-nup agreements.

According to Portfolio, Waxler is leaving the site, but "may stay on in some contributing capacity." Portfolio refers to mediocre site traffic, and notes, "Lately, it has shown signs of shifting away from celebrity-inspired stories and towards more meat-and-potatoes wealth coverage -- a shift that's likely to accelerate once Waxler departs."

The focus of my piece on MainStreet was its obvious SEO-driven content focus and the site's high caliber video promo effort, in part enabled by last winter's writer's strike. (Essentially, Waxler was able to gather a lot of her old comedy writer and actor buddies to put together some truly funny and unique spots that promoted the site and were intended to encapsulate its attitude.)

As Portfolio's Jeff Bercovici noted in his post about the departure, the future of the site and its direction hang in the balance.

Of all the promo videos created under Caroline's stewardship, this is my favorite (and of all blasts from the past, it features Joe Franklin):

Posted by Kate Kaye at 4:36 PM | Permalink | Comments (2)

BBC Reports Digital Growth, but Net Loss

BBC Worldwide, the British broadcaster's commercial arm, has reported a 57 percent year-on-year increase in digital media revenues, generating £21.9 million ($43 million) in sales in 2007/2008 compared with £13.9 million ($27.4 million) the previous year, according to its annual review.

However, net losses for the digital side of the business rose from £3.9 million ($7.7 million), to £10.9 million ($21.5 million) over the same period.

David Moody, BBC Worldwide's digital Director, credited the revenue growth to the syndication of content to partners such as YouTube and Apple iTunes, and the launch of an ad-funded international website – bbc.com – in November last year.

He attributed the loss to product investment, specifically BBC.com and a new Video On Demand service, dubbed "Kangaroo," which is due to launch later this year. The U.K.'s Competition Commission is currently investigating the project, which would see three of the U.K.'s biggest broadcasters; BBC, Channel 4, and ITV, join forces to offer video content online, presumably through an ad-supported or pay-per-view model.

According to Moody, BBCWW will enhance its digital media offering significantly in 2008/2009, generating revenue through Kangaroo, increased advertising across the BBC.com site, and perhaps through an international commercial version of its iPlayer, which offers BBC video content online.

Other than that, the organization's two-part online strategy will persist, aiming firstly to "build a network of strong BBC-branded sites," and secondly, "to distribute BBC content widely across the Web to reach potential users who are unlikely to come directly to BBC Worldwide's own sites."

Overall, BBC Worldwide's profit grew 17 percent year-on-year to a total of £118 million ($233 million). Digital represented 2.7 percent of total sales, almost doubling from 1.5 percent the previous year.

Posted by Jack Marshall at 12:49 PM | Permalink | Comments (0)

No ISPs at Senate Hearing Today Despite Invites

NebuAd is there. Google's there. Microsoft showed up, as did the privacy advocates. The Federal Trade Commission came, too. But the ISPs are nowhere to be found at this morning's Senate Committee on Commerce, Science and Transportation hearing on the Privacy Implications of Online Advertising. Democratic Senator Byron Dorgan of North Dakota isn't happy about it either. In his opening remarks, he lamented, "I had invited Internet Service Providers today, and they had declined the invitation."

Tsk, tsk. The Senator isn't giving up, though. He told attendees he will hold another hearing for ISPs alone because he thinks the committee needs to hear from them, when it comes to recent behavioral targeting trials with firms like NebuAd.

Posted by Kate Kaye at 10:29 AM | Permalink | Comments (0)

July 8, 2008

MerchantCircle Gets Paid

Months ago I had a status-report type chat with MerchantCircle, which is essentially a service for small and local businesses that helps them establish a Web presence, get optimized for search, and connect with other complementary companies. At the time I asked them how many paid customers they had. Thousands of "members" didn't mean much to me if they weren't generating revenue.

Recently, the company announced it's built its paid membership ranks to 5,000, and has around 525,000 members. The firm claims its paying customers have increased ten times over since December 2007.

The company also recently hooked up with Yahoo to promote Yahoo's products to its members, starting at the end of the summer. It's not clear what that will involve exactly.

Whether those paying members will renew or upgrade to a more premium offering, of course, will really determine the company's growth and sustainability. MerchantCircle is also up against countless offers from all sorts of services, including ones from well-known brands with entrenched local sales teams.

Posted by Kate Kaye at 5:45 PM | Permalink | Comments (10)

ClickZ Events: Coming to Your Neighborhood

This summer, ClickZ is pleased to partner with event producer Online Marketing Summit on its regional digital marketing conference series. In the coming weeks, ClickZ and OMS will put on one-day events in 11 cities across the U.S. These intimate experiences are geared toward providing best practices, education and networking for digital marketing pros of all stripes -- all with no vendors, so you won't go home with that nasty over-pitched feeling.

The summer tour begins next week in Milwaukee and ends two months later in San Diego. Stops along the way include Chicago, Boston, Atlanta and Seattle, among other cities. Get full schedules and pricing info at the ClickZ Events site.

Also on the menu this month: ClickZ's Video Advertising Summit in New York. On July 22 we'll host a series of panels on all aspects of video-based marketing, including media buying strategies, measurement, creative and bleeding edge platforms. Our top-notch panelists will include execs from Hulu, YouTube, Denuo and Ogilvy, among many others.

Posted by Zachary Rodgers at 11:05 AM | Permalink | Comments (0)

July 7, 2008

Google Swallows Privacy Pill, Adds Policy Link to Homepage

After being called out many times for its allegedly uncompromising views on user privacy, Google has finally made the ultimate concession. It's added a privacy link to that holy of holies: the homepage.

Marissa Mayer, VP of search products and user experience, takes the scenic route in a post about the move on the official Google blog. In a write-up that clocks in at 613 words, she manages to assemble a reasonably pithy history of the company's struggle to limit the number of words on its home page. The punch line: She managed to keep the homepage word count at 28 by replacing the word "Google" in the copyright notice with the word privacy, realizing the company name "was implied."

What she doesn't quite muster is a description of the company's reasons for accepting the homepage incursion. Those motives likely include a California law, surfaced by Saul Hansell of the Times last month, requiring all commercial Web sites to do something Google doesn't: prominently link to their privacy policies. According to The California Online Privacy Protection Act of 2003, that link must be “on the homepage or first significant page after entering the Web site.”

Posted by Zachary Rodgers at 1:25 PM | Permalink | Comments (1)

Micro-hoo Head Games: Next 24 Days are All-Important

The two most important dates in Yahoo's immediate future are July 22 and August 1.

On the first date Yahoo will announce its second quarter earnings, which should help clarify its (and the Web's) vulnerability to U.S. economic woes -- as well as to continued oversupply caused by a glut of social network ad inventory. Any pain would likely emanate from the financial, automotive & travel sectors, which have steadily reduced spending over the past year.

Poor results will put the company on weak footing with investors, who will meet on the second date above to decide on -- among other things -- Carl Icahn's proposal to oust its management and board of directors. Icahn intends to replace the company's CEO and board with a leadership team, including himself, that would be more open to a sale of part or all of Yahoo to Microsoft. Indeed, should Icahn succeed, whatever crew takes over would be explicitly appointed to orchestrate a deal with Microsoft.

No shocker: Microsoft supports that outcome. Microsoft stated this morning that it has "concluded it cannot" reach an agreement with the current leadership (very careful language that does not preclude new talks with Yang at some later date), but would reconsider a complete acquisition of Yahoo if Yang & company are yanked. Yahoo quickly retorted: "If Microsoft and Mr. Ballmer really want to purchase Yahoo, we again invite them to make a proposal immediately."

Meanwhile, Yahoo may be working furiously to consummate an agreement with Time Warner to purchase or otherwise combine its operations with those of AOL. The Times Online describes re-ignited talks between the Web company, Goldman Sachs and Time Warner's leadership in an effort to "re-heat" negotiations ahead of that all-important shareholder meeting.

A merger announcement within 24 days could overshadow weak earnings, and convince shareholders to give Yahoo's current leadership some more time to improve performance.

Posted by Zachary Rodgers at 12:21 PM | Permalink | Comments (0)

July 4, 2008

Wacky (or Wonky) Ad for "The Wackness"

Can't figure out whether this is an ad serving problem, or an issue with Firefox 3.0. But every time I visit a page in the film section of The Village Voice, two ads for current film "The Wackness" display.

Well, make that 2 1/2 ads. An upside-down, partial ad also appears, spilling down into the lower frame of the browser.

If it's an ad serving issue, it's easy to straighten out. But if the new version of Firefox, which is setting download records, is messing with ad serving, the industry is going to have to sit up and take notice.

Anyone else out there getting wacky, wonky ads on their new Firefox browser?

Posted by Rebecca Lieb at 1:15 PM | Permalink | Comments (0)

July 3, 2008

Google Ordered to Hand Over YouTube User Info, But Not Ad Records

A federal judge yesterday ordered Google to hand over to Viacom information about YouTube users' viewing habits.

U.S. District Judge Louis L. Stanton's order set off a firestorm among privacy advocates, including the Electronic Frontier Foundation. The group contends the disclosure of the information would violate a federal privacy law and could potentially expose private information about YouTube users.

"The Court's erroneous ruling is a set-back to privacy rights, and will allow Viacom to see what you are watching on YouTube," Kurt Opsahl, EFF senior staff attorney, wrote on the EFF blog.

Viacom filed suit against Google's YouTube in March 2007, claiming the online video sharing Web site had failed to sufficiently stop users from posting and watching copyrighted material. The judge's order came Wednesday in response to that lawsuit, according to published reports.

Google was ordered to release: a user's log-in ID, the video ID, and the IP address that locates computers on the Internet, though doesn't necessarily identify them by owner.

While Viacom also asked for records involving advertising transactions for Google's AdWords and AdSense programs, the judge rejected that request. Viacom reportedly had sought an electronic index that shows how data in a database are organized by listing the database’s fields and tables, though not its underlying data.

Viacom had contended this information would have shown that Google could or should have known that its advertising revenues were associated with the pirated videos.

Google also will not be required to disclose its computer source code for the YouTube.com search function and the Google.com search engine.

Google doesn't disclose how much revenue it generates from advertising or branded video on YouTube. But Forbes estimates it at $200 million this year and $350 million in 2009.

Posted by Anna Maria Virzi at 7:08 PM | Permalink | Comments (0)

Google, Microsoft and Yahoo Collaborate for IAB U.K. Search Help Site

The Interactive Advertising Bureau U.K. has launched its dedicated Search Help Centre, offering advice to marketers on best practices, policy and legal regulation regarding search marketing.

Content for the site is supplied by Google, Microsoft and Yahoo, alongside a panel of agencies and advertisers from the IAB U.K.'s Search Council.

The free resource is intended to provide regularly updated information on issues surrounding trademarks, copyright, invalid clicks, click fraud, user privacy, and intellectual property. It will also include help and advice for advertisers on how to go about hiring a search agency.

Intellectual property will form a key focus for the center. An IAB U.K. release issued today read, "Protecting intellectual property is a growing area of concern because it has become extremely valuable, therefore marketers need to understand what campaign property they own and how to protect it.”

Jack Wallington, chair of the IAB Search Council told me, “For advertisers this is important because they may not be aware of the increasing value of [intellectual property] in search marketing and how to handle and protect it. For agencies it will become a larger issue because they need to decide exactly what they are willing to share with each other and their clients – what is and isn’t competitive information for instance.”

He added that the IAB now recommends making intellectual property a key consideration when starting a relationship with an agency.

The Help Centre resource goes live today.

Posted by Jack Marshall at 12:12 PM | Permalink | Comments (0)

July 2, 2008

Hulu and YouTube, Together at ClickZ’s Video Ad Forum

Can't decide whether to advertise on Google's YouTube or NBC and Fox's Hulu? Edgy vs. mainstream? Eminem's "Sing For The Moment," or "Nutty Professor II: The Klumps?"

Want to learn about the latest innovations in online and interactive video creative for advertising and marketing?

Probe these questions and more with the nation's leading interactive video experts at the ClickZ Online Video Advertising Forum on July 22 in New York City.

Come to see:

*YouTube's Brian Cusack, Hulu's Kevin McGurn, and others debate best practices for targeting and buying online video media.

*Creative leaders from Deep Focus, Digitas, and Organic review video ad formats.

*What's new in video ad creative from the likes of AKQA, Campfire, EVB San Francisco, and IQ Interactive.

And there's more. Hear from online video ad experts at Carat, Geary Interactive, Starcom USA, Enlighten, Ogilvy, MediaVest/Publicis Media Groupe, Denuo, idfive, Saatchi & Saatchi New York, and others.

Register here.

On the fence? Check out the full agenda here.

Posted by Anna Maria Virzi at 3:51 PM | Permalink | Comments (0)

Charlene Li to Leave Forrester

Forrester just lost some serious mojo in the all-important digital ad space. Charlene Li, among the most recognized analysts covering digital technology and a special advocate for social media marketing, just announced on her blog that she'd soon move on from the firm to spend more time with her family and consider her next move. July 18th will be her last day on the job.

Along with fellow analyst Jeff Bernoff, Li penned the recent book Groundswell (tagline: "winning in a world transformed by social technologies"), which is currently ranked #6 on Amazon's business books list. She's been frequently interviewed and quoted by reporters here at ClickZ, and we wish her the best.

Posted by Zachary Rodgers at 3:10 PM | Permalink | Comments (0)

Quote of the Day: Filling Ballmer's "Internet hole"

"Yahoo executives were unimpressed with Mr. Ballmer's vision. If anything, they regarded the Yahoo pursuit as a crude solution to quell his obsession with Google. They would later refer to Mr. Ballmer's plan as 'filling his Internet hole.'"

-From The Journal's detailed report on the ins and outs of Microsoft's negotiations with Yahoo. Most recently, Microsoft has approached media giants including News Corp and Time Warner to join it in a new offer that would likely result in the breakup of Yahoo. The story suggests those discussions have so far come to naught.

Posted by Zachary Rodgers at 11:06 AM | Permalink | Comments (0)

July 1, 2008

McCain Taking Cue from Clinton Camp?

John McCain wants you to "Invest in Victory." According to information gathered by Media Trust, the McCain camp is running ads with a call-to-action reminiscent of the ones Clinton relied on during her run for the presidency. Ads spotted on sites based in swing states including New Hampshire and North Carolina, among other sites, urge supporters to "Invest in Victory, Donate $25."

Display ads from Hillary Clinton's shuttered campaign were almost entirely fundraising-based, suggesting people "Donate $5" or "Donate $50."

Until recently, John McCain for President hasn't taken a blatant fundraising approach in online display ads; rather, the campaign has pushed for people to sign petitions against pork-barrel spending, or sign up to join the campaign. (Using those sign-ups, he then hits up those registrants for donations. Barack Obama's campaign has taken a similar tack.

Check out our Campaign '08 display ad galleries:
Clinton ad gallery
McCain ad gallery
Obama ad gallery

Posted by Kate Kaye at 5:29 PM | Permalink | Comments (0)

AOL, Microsoft, WPP: Top Wheeler Dealers

Marketing executives working with digital media vendors might need a scorecard handy to track who owns who these days.

AOL, Microsoft, and WPP each acquired five marketing, advertising, or digital media companies during the first six months of 2008, according to a report on mergers and acquisitions released today by investment bankers Petsky Prunier.

According to Petsky Prunier's research, the companies making the most acquisitions -- and some of their purchases -- include:

AOL: Bebo, a social networking site; Goowy Media, a widget development platform, and Perfiliate Technologies, an affiliate network.

Microsoft: Farecast.com, an online travel search engine, and Rapt, advertisement management software.

WPP Group: Integrated Media Measurement, which has a media measurement system that links media exposure to consumer action, and Yankelovich, a consumer research company.

Aegis Group: AdWatch, a Russian Internet advertising agency, and Globlet, a Thailand search marketing agency.

Havas Advertising: Kadium, a San Francisco digital ad agency, and Shake, a promotion marketing agency based in Chatham, NJ.

A look at the marketing, advertising, and digital media sectors shows the most money was exchanged for digital media companies. There were 78 transactions involving digital media companies totaling $6.3 billion, the firm reported.

Of those deals involving digital media companies, more than one-half involved user-generated or social media businesses. Those deals included AOL's acquisition of Bebo and Goowy Media, and Buzznet's purchase of Idolator.

In all, the Wall Street firm identified 398 deals valued at $19.7 billion involved marketing, advertising, and digital media companies for the first half of this year. Compared to the same period in 2007, the number of deals was up this year by 21 percent but the total transaction dollar volume was down by 26 percent. It said the drop in the value of transactions was due to two factors: this year's soft economy and two large deals last year with Microsoft's acquisition of aQuantive and Google's purchase of DoubleClick for $3.1 billion. (The Google-DoubleClick deal closed earlier this year, but was included by Petsky Prunier in the 2007 tally.)

As expected, no mention of the deal that didn't happen: Microsoft-Yahoo.

Or who's next.

Posted by Anna Maria Virzi at 4:24 PM | Permalink | Comments (0)

Google and Seth MacFarlane: YouTube-Plus, Banner Ad Band-Aid or What?

Google's deal to distribute a new series from "Family Guy" creator Seth MacFarlane on its AdSense network is nothing new. The company has pushed YouTube videos with text and overlay ads to AdSense publisher partners since at least last October, and as far back as a year ago had a specific deal with MTV networks to distribute MTVN video clips and in-stream video ads to some sites.

The MacFarlane link-up is the same. The videos live on a YouTube brand channel, not inside the ad units. But it's still noteworthy for three specific reasons.

First is the big name talent involved. Seth MacFarlane is super bankable and his “Cavalcade of Cartoon Comedy" is a good get for YouTube.

Second, the sponsorships Google and its partner Media Rights Council are trying to sell alongside the clips will be a cut above what it's tried before. Whereas last Fall Google was focused on text, pre-roll and display units, it's now moving into closer pairings of advertiser and content. Google has stated very clearly that it plans to treat advertising in "Cavalcade" as branded entertainment. (Those are Google's own words, though I would argue they shouldn't apply in situations where advertiser content is hitched up to pure unbranded content. When the two are connected, that's traditional advertising, even if the ads happen to be really good. Branded entertainment is standalone.)

Lastly, Google may be trying -- in its oblique way -- to apply a salve to the world's chronic and worsening case of banner blindness. Industry-reported click-through rates, brand impact research from Dynamic Logic, and eye tracking studies from Pew and others have all found the effectiveness of display advertising is in decline. Some are speculating that by moving to distribute quality video content in ad space, Google could help re-sensitize Internet users to banner ads.

I agree with that up to a point. Yet there's only so much Google can do given its low ranking on the display ad totem pole. While ComScore pinpoints it as the third largest ad network in terms of reach, behind Yahoo and Platform A, the vast majority of Google's inventory is text ads. Even so, it's nice to see an ad network operator do something -- anything! -- to aid the humble banner, which continues to be favored by marginal advertisers and neglected by blue chips.

Posted by Zachary Rodgers at 1:05 PM | Permalink | Comments (0)

Redrum Returns!

Y'all have been asking for it, but it just didn't seem right to throw another Redrum Tuesday with co-foundress Dana Todd in Left Coast exile.

Problem solved. Dana's back in New York (it's her Newsforce roadshow), so we're doing it again. Our next Redrum is on Tuesday, July 8, 5:30 – 8:00 pm ET at the usual place, Nolita House ( 47 E. Houston, between Mulberry & Mott).

Newbie? Here are the rules:

You show up.
You buy your own drinks.
You talk with other people who work in interactive marketing.

Here are the other rules:

No schwag.
No speeches.
Yes, you can bring a friend.
Please don't RSVP.
No, there isn't a guest or mailing list you can get on.

We're busy. You are, too. This is our hyper-informal, non-structured, friendly way of getting together with our colleagues and meeting new friends at a safe remove from the world of trade shows in hotel ballrooms.

Hope you can make it if you're in NYC next Tuesday!

Posted by Rebecca Lieb at 10:36 AM | Permalink | Comments (2)

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