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Advertising & Marketing Recent Headlines  Murdoch: The 'Hot Ticket' at Cannes Ad Fest Australian The 55th annual Cannes International Advertising Festival is attracting thousands of top ad-industry execs from around the world to the south of France. The week's "hot ticket" will be an appearance by News Corp. chief Rupert Murdoch, who is expected to address the future of media. Publicis CEO Sees Web Goal Ahead of Target Reuters Publicis, the global advertising group, expects to hit its goal of making 25% of sales from the Web and the same proportion from emerging markets ahead of its target date of 2010, according to CEO Maurice Levy. Also, Publicis' cooperation deal with Google has "strong potential." Ad Spending Still Sluggish for Most U.S. Media Crain's New York U.S. advertising expenditures rose just 0.6% for the first quarter of 2008, with newspapers taking the biggest hit, says a new report from TNS Media Intelligence. Even the healthiest sectors of the media industry showed signs of slowing. Advertisers are "hesitant about the overall economy." TV's Upfront Sales Suggest Ratings May Fall Bloomberg Advance advertising sales at the four major U.S. television networks suggest prime-time ratings will decline next season, according to UBS Securities analyst Michael Morris. Broadcast networks are "guaranteeing lower ratings than they did last year," he says. Federated Media Launches Tools for Analytics VentureBeat Blog ad network Federated Media is announcing an analytics service to help advertisers better manage the growing perplexity of online branding efforts. The new service aims to allow advertisers to track ad performance and reader engagement across social media sites. WPP Mulls Higher Offer, Hostile Bid for Researcher Bloomberg WPP, the world's second-largest advertising company, is considering raising its unsolicited offer or making a hostile bid for Taylor Nelson, the U.K. market researcher. WPP may also walk away "or stay as we are" with its latest offer for Taylor Nelson, says WPP CEO Martin Sorrell. Google Allows 'You' to Sell Ads on YouTube AdAge Google, which has struggled to find the best way to monetize YouTube, is now allowing content creators to sell advertising on their YouTube channels. The revenue is split between the content creator and YouTube, just as it would be if YouTube sold the ads. MySpace's Tech Attraction May Lure More Ads Chicago Tribune MySpace's recent move to allow software developers to make money from their viral creations is beginning to pay off. About 1,000 new applications created for MySpace in the last two months have helped keep the site's 117 million users online longer, which could boost advertising. Yahoo Personalizes Online Newspaper Circulars BtoB Yahoo is launching a circular program for retailers, enabling them to deliver personalized online newspaper circulars directly to customers across the Yahoo network based on their interests. The program is powered by ShopLocal, a multichannel shopping and ad services company. Nielsen Preps Service for Downloadable Media Beet.TV Nielsen Online is preparing a platform to monitor the number of downloaded media served through Apple iTunes and other systems. While Nielsen and others track the views of streaming video, third party monitoring of downloaded video are understood to not currently exist. WPP Chief: Google Could Make Media Redundant Guardian Global advertising giant WPP expects the U.S. presidential race, the Beijing Olympics and the European football championships to help the industry for now. But Google remains the biggest challenge going forward, says CEO Martin Sorrell. "They do keep me awake at night." Google Lets Marketers Track Impact of TV Ads ClickZ News In its latest attempt to be the one-stop shop for all things advertising, Google is integrating Google Analytics with its Google TV Ads program, allowing marketers to track the impact their TV ads are having on site traffic. Google says it aims to provide ad accountability "on- and offline." Vuitton, Google to Face Off Over Trademarks Ars Technica Google is appealing Louis Vuitton's lawsuit win after the search giant's AdWords allowed firms selling counterfeit wares to buy keywords like "Louis Vuitton fakes." The luxury retailer claims Google doesn't have the right to sell such keywords. The case is now before Europe's highest court. Facebook Tests Letting Users Vote Against Ads VentureBeat Facebook is experimenting with allowing a portion of its users to vote for or against the small "social" ads that appear on the online social network's sidebar. A spokesperson says: "We are evaluating the response to the tool and considering whether to make it more broadly available." AOL to Expand Platform-A Ad Effort to Europe Dow Jones Time Warner's AOL will provide access of its Platform-A advertising effort to European customers. Difficulty in integrating Platform-A led the ad-revenue growth at AOL to slow to 1% in the first quarter. AOL has said that the success of Platform-A is critical to its future. Sony's New In-Games Ads 'More Like TV' Financial Times Sony is introducing dynamic in-game advertising on its PlayStation 3 console that allows billboards and ad displays in games to be refreshed, rather than remain fixed. The move makes gaming more like television and could open up a significant new revenue stream. Slide Eyes Ads, Opens Madison Ave Office Washington Post As advertising grows on MySpace and Facebook, San Francisco-based widget maker Slide is opening a New York office to be closer to Madison Avenue. "We went to where the brand advertising dollars are," says Slide ad exec Sonya Chawla, "and that's New York." Apple iPhone Has Advertisers 'Drooling' New York Post Madison Avenue is eagerly awaiting Apple's new iPhone, which is expected to be unveiled next week. The device's expected high-speed upgrade will allow it to download music and videos much faster. A GPS addition will make it possible to pinpoint where the device is being used. YouTube: The New Advertising Hot Spot ET / LAT With viewers migrating online -- and YouTube accounting for roughly a third of all online-video watching -- the Google-owned video-sharing site is perceived as "the new advertising hot spot." Also: YouTube provides advertisers with immediate user demographic data. Google Sued for Failing to Police Ads InformationWeek A lawsuit filed against Google alleges that the search company puts profits ahead of user protection by refusing to ban online advertising for fraudulent mobile services, despite evident ad policy violations. Google is "driven by financial motivations," the complaint says. NBC Suffering Its Own Olympic Trials New York Post With just two months until the Beijing Olympics, NBC is scrambling to sell out advertising time for its broadcast of the games. The network is said to be up to $300 million shy of its sales target. NBC needs to bring in about $1 billion in ad sales to break even on the games. Study: Traditional Media to Lose Ads to Internet vnunet U.S. Internet advertising will continue to "grow fast" in the face of an economic downturn, says a forecast by analyst firm IDC. The transfer of marketing budgets from traditional to new media will accelerate, with the Internet surpassing newspapers and television "in just five years." World Health Org Urges Global Tobacco-Ad Ban BBC News The World Health Organization is calling on all governments worldwide to ban tobacco advertising. The United Nations agency says current restrictions are not enough to protect the world's 1.8 billion young people, who are targeted through the Internet, magazines and other media. Wal-Mart Launches Free Online Classified Ads TechCrunch Wal-Mart is adding free classified advertising to its Web site, Walmart.com. Silicon Valley startup Oodle is powering the new service. The U.S. retail giant now competes with both Craigslist and eBay-owned Kijiji. Walmart.com attracts 26 million U.S. visitors per month. Coupons.com to Distribute Coupons Across Web Associated Press Silicon Valley firm CouponsInc.com is unveiling Brandcaster, a new service that will distribute coupons from 200 top brands to some 3,000 Web sites. Brandcaster, overseen by former Google AdSense exec Gokul Rajaram, could drain more revenue away from beleaguered newspapers. Turner Forms Online Ad Network with Partners Mediaweek Turner is pasting together its Web properties -- CNN.com, TNT.com, TBS.com and others -- to form a sizable, brand-friendly advertising network. The cable-centric company will begin packaging ad inventory from 19 different Web sites, including partner sites NBA.com and PGA.com. TiVo CEO Rogers Fast-Forwards Through Ads Barron's / MW Fast-forwarding of television commercials is here to stay, says TiVo CEO Tom Rogers. The advertising world needs to "figure out an ad model that works." Also: Disney's new partnership with TiVo is said to portend the possibility that the media giant will acquire the DVR pioneer. ComScore Acquires Mobile Stat Firm M:Metrics CNET News.com Online number-cruncher ComScore is acquiring M:Metrics, a mobile usage statistics company, for $44.3 million in cash and common stock options. As mobile phones make up a bigger and bigger chunk of digital consumption, ComScore wants to be able to provide the relevant data. Online Ad Growth May Slow Over Privacy Issues WebProNews Companies that track users online behavior could see their Internet advertising growth slow because of consumer uneasiness with such practices, predicts the Stanford Group. Many Internet users would choose to opt out of online tracking if they were able, says the research firm. News Corp, CBS Most at Risk to Ad Weakness Hollywood Reporter News Corp. and CBS are more at risk than their peers to advertising weakness because of their higher exposure to auto and financial ads amid a sluggish economy, says a new UBS analysis. Viacom is "best positioned," due to its mix of "more economically resilient advertising." Yahoo to Text-Message Ads to Consumers Wall Street Journal 4INFO.net, a Silicon Valley text-message advertising firm, plans to announce a new trial partnership with Yahoo. 4INFO will provide the technology for Yahoo to publish news updates, sports scores and other content via text messages that also contain a small ad. ABC, NBC Develop Services to Rival TiVo New York Post Both ABC and NBC are teaming up with cable operator Cox on a video-on-demand service that allows viewers to watch shows such as "Desperate Housewives" and "30 Rock" any time they choose without fast-forwarding through ads. The "MyPrimetime" test is rolling out in several states. Carl's Jr. Mulls Developing Its Own Webisodes Hollywood Reporter Fast-food chain Carl's Jr. is considering a foray into online branded entertainment, meeting with digital-minded production companies with help from ad-buying firm Initiative Media. Carl's Jr. wants to target young males with edgy comedic webisodes with "some degree" of brand integration. Sorrell: Traditional Media Are Under Pressure Reuters Traditional media are under pressure in developed markets but still growing in newer markets like India, according to Martin Sorrell, CEO of advertising giant WPP Group. Also: Google plans to grow its business in television, radio and print, "and I am sure they will do that." Social Networking Sites: No Effective Ad Model Guardian / Reuters Facebook and MySpace aren't translating their popularity into advertising revenue, "in spite of the media hype," says eMarketer. The research firm is downgrading its ad-spend forecasts for the sector. Also: Valuations on social networks "are pure speculation," says Barry Diller. Mobile Ads 'Years Away' from Breakthrough Reuters Advertising on mobile phones has enormous potential, but any breakthrough is years away, say execs from ad and telecoms groups. Hamid Akhavan, the head of Germany's T-Mobile, observes: "There are people who will never have a TV or a laptop but they will have a mobile phone." William Morris to Open Digital 'Agency 3.0' Los Angeles Times Wireless industry exec Peter Adderton is joining with William Morris Agency to create a hybrid firm, dubbed Agency 3.0, to help content providers and advertisers navigate the digital landscape and develop new products. William Morris is taking an undisclosed stake in Agency 3.0. Verklin Hired to Lead Cable TV Ad Effort New York Post The cable industry is tapping veteran adman David Verklin to lead an effort to develop a system for delivering targeted TV ads. The major cable companies are pouring $150 million into the initiative, code-named Project Canoe, aiming to boost ad sales and compete with Google. Google Adding Display Ads to Image Search CNET / Times Google is beginning an "experiment" that incorporates graphical ads with image search results. The Internet giant declines to comment on the revenue implications of the move. Also: Google execs are convening to discuss the implications of a possible revived deal between Yahoo and Microsoft. Web Publishers to See 'Significant Ad Growth' Reuters Online publishers are doing well despite an economic downturn, says Pam Horan, the head of the Online Publishers Association. Web sites have an edge over traditional media because they target consumers in a highly focused way. However, the jury is still out on monetizing social networks. News Corp Launches Ad Network for Finance Reuters News Corp's .Fox Networks is launching an international online advertising network focused on financial news and advice. About 30 web site publishers are part of the network, called Worthnet.Fox, including Dow Jones's Wall Street Journal, Barron's and MarketWatch. Yahoo, WPP to Unveil Web Ad Partnership New York Post Yahoo and WPP will announce a partnership that the companies say will make it easier and more effective for WPP and its agencies to buy and target advertising across the Web. WPP agencies will develop a proprietary trading system for placing display ads on Web sites. Google, Yahoo Ad Deal May Come Next Week Reuters Yahoo and Google are said to be continuing to talk about a search advertising partnership, but an announcement is not imminent. Talks have "not cooled" after Microsoft withdrew its offer for Yahoo. Although talks remain fluid, a deal could come "as early as next week." YouTube to Offer Demographic Data on Visitors InformationWeek Google is adding visitor demographic information for advertisers on YouTube. A new demographics tab will display statistics on the total views of all the videos uploaded by a person or organization. Viewership is broken down by age group, gender or a combination of the two. Turner System to Match Programs With Ads TV Week Turner Broadcasting is introducing an advertising system, "TVinContext," designed to match commercial messages with program content. For example, a movie running on Turner featuring a wedding scene could air an ad for wedding rings during the next commercial break. Social Network Ad Biz Improving, Brin Says Reuters Advertising on social networking sites like Facebook and MySpace is getting better, but is still not perfect, says Google co-founder Sergey Brin. "People are expecting overnight to wake up to a miracle. But these things take time. It's hard to predict where social networking will come out." Broadcasters May Struggle in Upfront Sales USA Today A decline in upfront adverting sales is probable, "given ratings declines, the disruption in the development cycle due to the writers' strike and economic woes," says Merrill Lynch analyst Jessica Reif Cohen. Broadcast networks could see spending drop 14% from 2007 to $7.73 billion. YouTube to Offer Ads With Buzz Targeting ClickZ News YouTube is offering advertisers the ability to pair their in-video ads with clips the site believes are on their way to becoming viral hits. A new algorithm identifies videos that are on the up-and-up in terms of audience. YouTube describes buzz targeting as "a strong marketing opportunity." Online Ads Showing Signs of Economic Wear CNET News.com Online advertising is starting to feel the effects of a tepid economy, according to industry analysis firm PubMatic. Based on data from "billions of ad impressions" and several thousand online publishers, PubMatic asserts that clicks per thousand monetization rates are dropping. Social Networks Lack Successful Ad Model BtoB eMarketer is revising its U.S. social network ad spending forecast, projecting that advertisers will spend $1.4 billion to place ads on online social networks this year, down from a previous projection of $1.6 billion. The change is due in part to a lack of successful ad models. Disney Opens Lab to Test Ads for ABC, ESPN Associated Press Disney is opening a laboratory in Austin, Texas, to test the biometric reactions of consumers to advertising over the Internet, mobile devices and other new media. Disney aims to learn whether consumers are more engaged by such new ads and ultimately if it can charge more for them. Hulu Touts Growth to Lure 'Upfront' Ad Dollars New York Times The broadcast networks are not the only companies trolling for advertising dollars during the upfronts this week. The new video Web site Hulu, from NBC Universal and News Corp., is throwing itself a party to highlight its stable of television content and entice advertisers. 'Upfront' Ad Spending Expected to Soften Wall Street Journal Starting this week, U.S. broadcast networks will host their annual presentations to advertisers and reveal their fall schedules. Media buyers say major ad-spending categories are likely to be down. Procter & Gamble is considering cutting its ad budget as much as 10%. Murdoch Sees Economy Hurting Advertising Reuters Stress in the U.S. economy is squeezing advertising budgets, says chief Rupert Murdoch, adding that News Corp.'s Fox Interactive Media will miss its $1 billion annual revenue goal by 10%. News Corp. is nonetheless seeing strong ad sales at the Fox TV network and Fox News Channel. Google May Run Display Ads With Searches Bloomberg Google is considering running display advertisements alongside the results of Web queries for pictures, moving beyond text-based ads. "There's lot of potential for advertising revenue there," says VP Marissa Mayer. Google is seeking new revenue sources as its growth slows. Spot Runner Web Ad Firm Attracts $51M ClickZ News SpotRunner.com, an Internet-based advertising network that puts local business pitches on television and radio, is reeling in another $51 million from investors including Grupo Televisa. Previous backers include CBS. The outfit may use the new financing to move into print. NBC's Super Bowl Ads to Cost $3 Million Wall Street Journal NBC Universal plans to announce that $3 million will be the entry price for a commercial at the 2009 Super Bowl. While individual slots have sold at that level before, it has never been the starting point for negotiations for the dozens of 30-second ads sold for the game. IAB Introduces Online Video Ad Guidelines Mediaweek The Interactive Advertising Bureau is introducing a set of guidelines aimed at bringing more standards to online video advertising -- and ultimately to make the still burgeoning medium easier for advertisers to buy. "This is a historic day," proclaims IAB CEO Randall Rothenberg. Tom Cruise Stocks Up on Google AdWords Hollywood Newsroom Tom Cruise and his publicity handlers are said to be buying up advertisements on Google AdWords. When users type in "Tom Cruise" in a Google search, ads for the Scientologist's new TomCruise.com appear. The move may coincide with Cruise's recent "Oprah" appearance. CBS Pitching Sticky Videos to Advertisers TV Week When selling marketers on digital deals at this year's upfront advertising market, CBS plans to claim that it engages audiences better than its competitors. The network is preparing research on how many video streams it serves and how audiences use streaming of its TV shows. Fox to Reinforce That TV Is Still King Mediaweek While rivals NBC and CBS are approaching the upfront marketplace with sales presentations that include hefty pitches for their digital platforms, Fox is concentrating its efforts on selling television. Compared to online and print, TV advertising "proved the most effective." Media Execs: Ad-Supported Content Is King Hollywood Reporter Advertising-supported content will remain the No. 1 business model and digital advertising will eclipse traditional advertising during the next five years, says a survey of media execs by Accenture. Companies "need to implement new digital technologies or be left behind." Advertisers Urged to Embrace Digital Media New York Times Advertising execs need to embrace the changes in media, says Google CEO Eric Schmidt, speaking at the American Association of Advertising Agencies conference. Another speaker, TBWA chief Lee Clow, advises the 380 attendees to "stop whining" and "start hiring young people." YouTube to Launch New Form of Advertising CNET News.com Google CEO Eric Schmidt admits that his company hasn't "figured out the perfect solution of how to make money" from its video-sharing powerhouse YouTube. He indicates that the company is developing new modes of advertising. New products "are coming out this year." Google TV Ads Emerges from Beta Testing Google AdWords Google is introducing Google TV Ads, which the company describes as a "flexible, all-digital system for easily and efficiently buying more accountable and measurable TV advertising." The program, which has been in beta since June 2007, is now available to all U.S.-based advertisers. New York City to Ad 'Brand' Subway Cars New York Post New York City Transit is starting to place advertisements on the exterior of subway cars. The 42nd Street Shuttle, the system's test line for ad media, is running with Continental Airlines posters on the side of some trains much like the posters on city buses. Edelman to Open Virtual Content Studio Ad Age PR giant Edelman is readying the launch of Edelman Studios, at Edelman.com/Studios, which will solicit and develop content -- from TV shows to webisodes -- from screenwriters, producers and directors who will have a shot at competing for assignments from heavy-hitting marketers. Verklin May Resurface at Project Canoe Ad Age Media guru David Verklin, who resigned last week as CEO of Carat North America, is believed to be heading to Project Canoe, a consortium of cable multisystem operators including Comcast, Time Warner Cable, Cox and Cablevision that is seeking universal metrics for video on demand. CollegeHumor Finds Ad Niche in Sponsorships Reuters IAC's CollegeHumor.com wants to help its readers fulfill "their stupidest wish ever" -- maybe a machine to dress them in the morning or a chute from their bedroom to the front door. The new advertising strategy lets sponsors build stronger ties with young men by catering to their tamer dreams. WPP Describes U.S. Ad Market as Resilient Times of London WPP, the London-based advertising giant, is reporting that its growth during March was slower than expected despite strong sales from a resilient U.S. ad market. North America continues to "grow faster than commentators might expect," in spite of the economic slowdown. CBS to Buy South American Outdoor Ad Firm MarketWatch CBS is acquiring International Outdoor Advertising for $110 million in cash. International Outdoor is an out-of-home advertising company in South America with more than 17,000 advertising faces in Argentina, Brazil, Chile and Uruguay. CEO Jack Sabaj will continue to manage the business. Justice Dept to Probe Google-Yahoo Ad Test Reuters The U.S. Justice Department is investigating possible antitrust implications of Google's two-week test with Yahoo to combine some of their Web search and advertising business. The Justice Department is concerned that the test, which ends this week, may violate antitrust law. Google Brings Display Ads to Mobile Devices CNET News.com Google is expanding its advertising business into a new domain: graphical ads that appear on mobile devices. As with the company's text-based mobile ads, the Google image ads are displayed on the basis of keywords that appear on Web sites that people visit with their mobile phones. Google Sued For Alleged AdWords Deception InformationWeek A lawsuit filed against Google alleges that the search giant defrauds its AdWords customers by charging them for ads they don't want. Google doesn't make it clear that to avoid running AdSense ads, one must enter a zero in the input box, claims plaintiff David Almeida. Verklin, CEO of Aegis Americas, to Step Down Adweek David Verklin, CEO of Aegis Media Americas and one of the advertising industry's most visible figures, is stepping down from his role later this year. Verklin plans to take time off to consider his next move. "I don't see myself coming back to the agency business," he says. Trade Publishers Ally For Online Ad Network Adweek Four trade publishers are joining forces on an online advertising network that promises to reach 10 million users per month on trade publication Web sites. Cygnus Business Media, Nielsen Business Media, Reed Elsevier and McGraw-Hill are providing inventory to BBN, which will package it together. MySpace to Give Advertisers More Control Brand Republic MySpace is launching an advertising platform called Community Builder that gives advertisers more control over their presence on the social-networking site, allowing them to build, maintain and customize brand profiles. New analytics will help advertisers gauge campaign performance. Six Apart Launches Ad Network For Bloggers Fortune Six Apart, the San Francisco-based blogging software company, is acquiring creative agency Apperceptive and launching its own advertising network. The revamp positions Six Apart to compete with blogging agencies like Federated Media, which sells ad campaigns for its member blogs. AOL Moves Closer to Ad Center in NYC Associated Press AOL began occupying new headquarters in New York this week to bring itself closer to the media and advertising industries. AOL is occupying two floors of 770 Broadway, a couple of miles from the headquarters of parent Time Warner (and two blocks from the home of I Want Media). Google Faces Slowing Consumer Ad Market Bloomberg Google faces a deteriorating market for consumer advertising after incurring a drop in business from financial firms. The Internet giant, whose shares plunged 36% in the first quarter, is expected to report profit below analysts' estimates for a second straight period today. Yahoo-Google Search Ad Deal Advances Wall Street Journal Yahoo is said to have moved closer to outsourcing its search advertising to Google after an initial test of the system yielded positive results. A partnership could give Yahoo some leverage as it tries to ward off Microsoft's unwelcome $42 billion bid. Disney to Join Ranks of Online Ad Networks Wall Street Journal Disney's soap-opera hub SOAPnet.com plans to announce that it has struck agreements with 45 Web sites that will allow it to distribute content on them and sell advertising on their behalf. However, the glut of online "ad networks" may lead to an inevitable shakeout. 'Fox Fusion' Offers Ad Buys on WSJ, Fox News Mediaweek Fox News is launching an initiative called Fox Fusion that will offer advertisers a streamlined system for buying space on the flagship channel and newcomer Fox Business News, as well as the Wall Street Journal and News Corp.’s various digital properties. ABC 'Kimmel' Show to Run Live Commercials Adweek ABC is set to announce shortly that its late-night "Jimmy Kimmel Live" broadcast will integrate live commercials into each episode of the program subject to interest on the part of advertisers. The first live commercials are expected to begin in May. Google Expands TV Advertising Service on Dish Bloomberg Google, seeking to reduce its dependence on advertising tied to Internet search results, will expand a television ad service with Dish Network, the second-largest U.S. satellite broadcaster. Google's U.S. AdWords customers will be able to bid for spots in the coming weeks. AOL Starts Do-It-Yourself System For Ads Dow Jones AOL's Advertising.com is launching self-service tool, located at PubAccess.com, allowing small Web publishers to sell and manage ads on their sites. AOL is under pressure to improve its lackluster performance, as Time Warner mulls a possible sale or spinoff of the unit. Ad Business Model Outdated, Publicis Says Reuters The advertising industry's business model "is no longer valid, no longer relevant," says Maurice Levy, CEO of global ad giant Publicis Groupe. Ad agencies need to develop a deeper understanding of technology, he adds, noting rising competition from Google, Microsoft and Yahoo. Yahoo to Test Ad Partnership With Google Associated Press Yahoo is turning over some of its advertising space to Google in a two-week experiment that could lead to a broader partnership. Google will place ads alongside about 3% of the U.S. search queries on Yahoo. The tie-up appears designed to frustrate Yahoo's unsolicited suitor, Microsoft. Oprah Tapped by P&G For Global Promotion Crain's Chicago Procter & Gamble's Pampers is harnessing the star power of both Oprah Winfrey and Salma Hayek for a global giveaway that also benefits Unicef. The pair is part of a promo in which the brand will donate one tetanus shot to an expectant mom for every pack of diapers sold through August. Online Ad Spend Set to Overtake TV in Britain Reuters The Internet will usurp television as the biggest advertising medium in Britain by the end of 2009, according to a new report by the Internet Advertising Bureau, PricewaterhouseCoopers and the World Advertising Research Center. The outlook for online advertising is described as "rosy." Nielsen to Buy TV, Web Audience Research Firm Reuters Nielsen plans to acquire IAG Research, a New York-based television and Internet audience research firm, for $225 million to strengthen its media business. Nielsen, a provider of market research and media services, expects to complete the acquisition in the second quarter. Yahoo Previews New Ad Management Platform InfoWorld Yahoo says it will have a Web-based system in place to buy online advertising space across some 600 newspapers and other online sites as soon as July. The system will let publishers find available ad space on their own sites for advertisers, and when none is available, on other sites. 'Google Slap' Hits Some Advertisers Wired A major change Google made last month to its AdWords algorithm is resulting in a double whammy for some advertisers: The rates they are paying for ads are skyrocketing while conversion rates for those ads are dropping. Disgruntled advertisers dub the move the "Google slap." DoubleClick to Cut 300 Jobs, Sell Unit Bloomberg / Reuters Google is reporting the biggest workforce reduction in its nine-year history, cutting 300 jobs at DoubleClick, the online advertising company it bought last month for $3.24 billion. Also: DoubleClick plans to sell off its search marketing arm, Performics, which employs 200 staffers. YouTube Ads 'as Effective' as TV Ads TV Week / Bloomberg Thirty-second commercials on YouTube perform just as well as ads on television, says a study commissioned by Google. Online ads are better at "communicating the brand." Also: YouTube's video-to-shirt promo with Hewlett-Packard may "open up the brand awareness advertising bucket." NBC to Put Advertisers' Names on Shows New York Times NBC is borrowing a page from the past in asking advertisers to become sponsors of shows. One example is a new deal with the Liberty Mutual insurance company that is centered on a pair of TV movies to be broadcast under the banner of the company -- "Liberty Mutual Presents." Old Media Drag Ad Spending, Nielsen Says B&C Nielsen says that U.S. advertising spending was up only .6% in 2007 over the year before, with Internet ads showing the biggest percentage increase at 18.9%. Seven of the top 10 advertisers cut their ad budgets. The biggest decrease came from Time Warner cutting its budget by 14%. Myers: Media Stronger Than TNS Report Jack Myers Last year's advertising spending was much better than was reported last week by media researcher TNS Media Intelligence, claims media economist Jack Myers. Ad growth for 2007 was at least 1.9%, he says. "While not exactly robust, the doom and gloom scenario is not quite as serious." Google, DoubleClick Rule In Online Ads Adotas According to a new study released by Attributor, Google and DoubleClick control a whopping 69% of the interactive advertising market. Google, which recently acquired online ad service DoubleClick, controlled 34% of the market in January and DoubleClick snagged about 35% of the share. ZenithOptimedia Lowers U.S. Ad Forecast TV Week Media buyer ZenithOptimedia is lowering its forecast for U.S. advertising spending for 2008 as the effects of the housing crisis seep into the economy. Zenith sees newspaper advertising taking a bigger hit while Internet spending grows even faster than previously expected. Traditional Media Team With Niche Sites USA Today Looking to snare a larger share of Internet advertising dollars, traditional media companies ranging from Forbes to Martha Stewart are launching "vertical ad networks." Media companies are expected to "continue to invest in this space" as they attempt to compete with Yahoo and Google. Old Media Ad Spending Stuck in the Mud Bloomberg U.S. advertising spending was little changed in the fourth quarter as a weakening economy prompted marketers to cut newspaper and radio ads, according to TNS Media Intelligence. The ad market is "stuck in the mud," says TNS exec Jon Swallen. Internet spending, however, jumped 13%. New Media Ad Spending Forecast to Surge USA Today Advertisers and marketers, struggling to keep up with changing consumer habits, are about to make massive investments in new digital and out-of-home media platforms, according to a forecast by PQ Media. Companies will spend $160.8 billion in 2012 -- up 82% from 2008. Big Media to Lure Advertisers in Soft Market Jack Myers Media companies that invest in multi-platform capabilities will attract the lion's share of advertising growth, writes analyst Jack Myers, while those that play "the wait-and-see game" before investing in new media "will suffer." Big media will be pressured to "integrate cross-media assets." ESPN Turns Off Ad Networks to Protect Brand Mediaweek ESPN.com is cutting ties with Specific Media and other advertising networks, taking the stand that ad selling that relies on arbitrage and algorithms is not for them. "There is a concern about commoditization of brand inventory," says Martha Stewart exec Wenda Harris Millard. Internet to Clobber Old Media in Recession Fortune / MediaPost As the United States slips into recession, advertising spending is set to fall -- spelling trouble for broadcasters, magazine publishers, newspapers and cable operators. Also: The Internet is expected to win big during a recession, due to superior targeting and metrics. Google's DoubleClick Doesn't Spell Doom Folio Google's $3.1 billion acquisition of DoubleClick shouldn't spell doom for smaller advertising networks, according to a report by DeSilva + Phillips. A "long tail" of revenue, profit and scale for the smaller ad networks remains. "There is still a lot of ungathered and unsold inventory." Media Eclipsed by Google in Ad Growth SAI Google's advertising growth is exceeding most media companies' by a wide margin, according to an analysis by former Internet analyst Henry Blodget. Google grew by some $2 billion last year, while 17 companies -- Time Warner, Disney, CBS and others -- grew by about $1 billion combined. Pepsi Starts the Buzz Online for New Brand New York Times Pepsi-Cola is launching a line of beverages called Tava with a marketing campaign that bypasses traditional media like television and print. Instead, Tava will get a send-off with Tava.com, sampling events and the delivery of free samples to employees of companies like Google and MTV. Microsoft to Buy Web Ad Analysis Firm Rapt Industry Standard Microsoft hasn't yet snagged Yahoo, but it plans to acquire another company it hopes will boost its online advertising yields. Rapt, of San Francisco, sells tools for online media companies designed to predict demand for ads and optimize price and placement. Hulu to Test Tolerance for Web Video Ads Washington Post Hulu, the video site from NBC Universal and News Corp., debuts Wednesday with a vast array of online television shows and movies -- along with commercials that can't be fast-forwarded. "If you're desperate to watch something specific you'll put up with more ads," says one ad exec. Google Buys DoubleClick, Lays Off Staff Google Blog Shortly after Google completed its $3.1 billion acquisition of the online advertising firm DoubleClick on Tuesday, CEO Eric Schmidt announced that layoffs are to be expected. "As with most mergers, there may be reductions in headcount," he says. "We'll strive to minimize the impact." Google to Unveil Ad Management Service Wall Street Journal Google plans to announce a new service that Web publishers can use to manage their online advertising sales and serve up ads each time a consumer pulls up a Web page. The new Ad Manager, which a limited number of Web sites are testing, will provide the ad serving free. Nielsen Will Get Data From New Channel Wall Street Journal Nielsen will offer a new service that uses cable set-top boxes to shed light on people's television-viewing habits. Nielsen expects to merge its second-by-second data with information from its panels and other Nielsen data, such as consumer-purchasing information. Google: Display Ads to Be 'Very Significant' Dow Jones Google expects to have a "very significant position" in the online display advertising market by 2008-09, says Tim Armstrong, the Internet giant's top ad exec. He also says Google sees its video-sharing site YouTube as the "brightest light" for the company's display-advertising potential. Google Adjusts Ads for 'Bloated' Web Pages InformationWeek Google plans to begin weighing Web page load time as a factor in assigning search keyword quality scores, which influence ad placement on the search giant's network pages. Ads leading to landing pages that take a long time to load will perform worse than ads linked to svelte pages. NBC: Online Ads Are Better Than TV Ads TVWeek Advertising in programs streamed online is better liked and more recalled than advertising in programs on conventional television, according to a survey by NBC. Viewers say that ads streamed online are "less disruptive." Viewers also have a "strong desire" to interact with them. Forecast: Internet to Halt Global Ad Slide Media Life The Internet is expected to continue its robust growth and will keep the world's media economy afloat over the next several years, according to Screen Digest in London, which just released a forecast for global advertising spending. Most of the growth will be from online. TV Execs Claim Strong 'Upfront' Sales Wall Street Journal Network execs and media buyers say the annual advertising-buying ritual known as the "upfront" is likely to be stronger this year than last. Some TV ad-sales execs admit that there is likely to be a lag before any recession will begin to take its toll on ad budgets. WPP Expects Slowdown to Hit in 2009 Telegraph Advertising giant WPP predict that the real global slowdown will arrive in 2009, not 2008, as China "pauses" after the stimulation of the Beijing Olympics and the new U.S. president "kitchen-sinks" budgets ahead of a possible eight-year double-term. The year 2010 will "be strong." Technorati to Launch Ad Network for Blogs TechCrunch Technorati, the search engine for blogs, is said to be shifting its focus to become an anchor in a new blog advertising network. Technorati, under new CEO Richard Jalichandra, is also said to be hiring investment bank Montgomery & Co. to shop the company to buyers. On the Web, Signs of a Click Recession Wall Street Journal Internet advertising may be vulnerable to a consumer slowdown after all, suggests a new report from comScore that shows a decline in clicks on Google ads. A bleaker Internet-ad outlook could increase pressure from shareholders of Yahoo to accept Microsoft's takeover offer. Google Tries to Get More Clicks on Ads New York Post Facing concerns about slowing growth, Google is quietly testing a new feature that will use up search marketers' unspent advertising budgets. The feature, called Automatic Matching, expands participating advertisers' list of keywords to include terms Google deems relevant. Nielsen Media Study to Watch Every Step You Take Adweek A new $3.5 million study, funded by the Nielsen Co., will track the media habits of some 450 U.S. consumers throughout 2008. The report, to be released in stages later this year, aims to provide a blueprint of consumers' access to media "across all screens, platforms and locations." Internet Ad Revenue Exceeds $21 Billion in 2007 Associated Press Online advertising revenues exceeded $21 billion for the first time in 2007, according to data compiled by the Interactive Advertising Bureau. By most accounts, however, the Internet still represents less than 10% of all U.S. ad spending, meaning there is room for more growth. Microsoft to Test New Measure of Web Ads Reuters Microsoft plans to test a new way to measure the effectiveness of Internet advertising in a challenge to the industry standard used by Google and others. The software giant's "Engagement Mapping" attempts to take into account all Internet interactions that lead a consumer to buy a product. TV Ads Are Less Effective, Survey Says Adweek A majority of marketers believe that television advertising has become less effective, says a survey from the National Association of Advertisers and Forrester Research. Over 50% of marketers report that when half of all TV households use DVRs, they will cut spending on TV advertising. Nielsen Strives for Digital Age Relevance Fortune Nielsen's new CEO David Calhoun is working to recast the ratings company as a customer-focused, tech-savvy enterprise that is vital in the world of Google, Slingbox and the iPhone. "Nielsen is in a fight for its relevant life," says one advertising industry exec. GoFish to Take On Disney, Nickelodeon ClickZ News Video site GoFish.com aims to capitalize on its knowledge of youth advertising with the launch of an online ad network aimed at children and teens, thereby competing with giants Disney and Nickelodeon. GoFish represents leading kids' sites "you've never heard of." Media Advertising on a Downswing Crain's / AdAge Media companies that depend on advertising are looking with trepidation at 2008. Newspapers are seen as the most vulnerable; radio, local television are also expected to be hit hard. Also: Digital is regarded as the least vulnerable because it is inherently more measurable than other media. ABC's Oscar Night Looks Like Super Bowl New York Times Advertisers will spend some $1.6 million for each 30 seconds of commercial time during the ABC broadcast of the Academy Awards on Feb. 24. Marketers appear to be treating the Oscar show as if it were the Super Bowl, when viewers pay more attention to the ads. Google Tests Video Ads in Search Results New York Times Google is starting to test video advertising on some pages of its search results. Ads with accompanying videos will have a small button with a plus sign. Users that click the button on an ad will see a small video player that shows a commercial, movie trailer or other clip. YouTube Tells Advertisers of New Features IanSchafer.com Google held an event called "Videocracy" in New York on Wednesday, where advertisers were informed of new features for the Internet giant's video-sharing site YouTube. A new "active sharing" feature will display which users have recently watched a video clip. Google's U.S. Ad Share Drops for First Time InfoWorld Google lost ground in the U.S. Internet advertising market for the first time in two years during 2007 due to slower growth in the fourth quarter, according to IDC. The decline, despite continued strong growth in Internet advertising, could spell opportunity for rivals such as Microsoft. Microsoft Unveils Next-Generation Ads InformationWeek Microsoft is unveiling a series of next-generation advertising concepts designed to "anticipate behavior faster than the speed of thought." One algorithm collects data from an image on a video screen, so a consumer can choose a product "like this one," without having to key in any data. Google May Be Shut Out of Display Ads Bloomberg A Microsoft link-up with Yahoo may slam a door in Google's attempt to expand beyond the four-line text advertisements that run alongside Internet search results. That is because Microsoft and Yahoo would control more than a quarter of the market for animated ads and display banners. CBS Mobile to Test Ads for Cellphones New York Times CBS plans to try an experiment with cellphone advertising that is customized for a person's location. CBS Mobile will use the GPS-based technology of the social networking service Loopt to serve advertisements as consumers walk by particular stores and restaurants. AOL Buys Buy.at, Another Ad Platform TheDeal Time Warner's AOL is making its second online advertising acquisition in the past three months by acquiring Buy.at, a British-based affiliate marketing network. The ongoing build-up of AOL could make the Internet unit more attractive should Time Warner decide to separate it. YouTube: Most Valuable Player for Marketing New York Times The Internet and other new technologies are giving a strong postgame presence to Super Bowl commercials. Visitors to YouTube are being offered an incentive to vote for their favorite spot: The commercial attracting the most votes will be featured on YouTube's home page next Tuesday. Social Network Users Build Up Ad Immunity BusinessWeek While News Corp. is thrilled about the ad-revenue growth of MySpace, many marketers are frustrated about plummeting click-through rates. "There's too much [advertising] when you sign on," says one 32-year-old user who likes the site, though he ignores the ads. "They don't interest me." Super Bowl Commercials Play Overtime Online Los Angeles Times How do you make sure that millions of Americans will pay attention to your multimillion-dollar Super Bowl ad? Advertisers are posting them online, unveiling them at news conferences and screening them at cocktail parties. "They want to get more bang out of it," says one observer. Google, Facebook: The New Content Distributors AdAge New-media ad guru Rishad Tobaccowala, speaking at NATPE, describes Apple, Facebook and Google as among today's new distributors of content. The Web is making consumers much more voyeuristic, he says. "The future does not fit into the containers of the past." Break: New Ad Network Targets Young Men Red Herring Break.com, a popular Web site for young men, is launching three related sites and forming an advertising network with other Web publishers aimed at 18- to 34-year-old males, a highly-sought-after demo. Break, backed by Lions Gate, offers games and hosts user-posted videos and photos. Google: Social Networks 'The Next Big Thing' CNET News.com Google sales head Tim Castelli describes the likes of Facebook and MySpace as the "next big thing" in advertising, during a New York Ad Club meetup Monday at Google's New York offices. "The social community aspect of the Web is something that's not going anywhere." Movie Biz Losing Product Tie-Ins to Internet Variety An increasing number of marketers are spending their product promotion money on the Internet and television, rather than motion pictures. The growing interest in original programming on the Internet is encouraging brands to produce their own Web series. Super Bowl Ad Blitz Expands in Online Arena Wall Street Journal The Super Bowl is still the ultimate traditional television event, but some marketers are starting to turn to Web video and profiles on social-networking sites. Companies that aren't buying a TV spot during the big game hope to tap the Super Bowl's following online on the cheap. Viacom's Top Priority: Product Placement Los Angeles Times Integrated marketing is a high enough priority at Viacom for chief Philippe Dauman to have mentioned it more than once in recent talks with Wall Street analysts as a vital source of revenue growth. MTV, with its savvy young audience, is seen as a pioneer in blurring advertising and content. Will Marketing Change After Star's Death? Wall Street Journal Heath Ledger's death is raising questions about Warner Bros.'s elaborate online campaign for his new Batman film. The Joker, Ledger's character, is the central focus of multiple Web sites -- from IBelieveinHarveyDent.com to TheGothamTimes.com -- which have been hyping the movie for months. Candidates Still Favoring Old to New Media Mediaweek Traditional media are still the preferred channels of U.S. political candidates. Online political advertising will total only $20 million in 2008, according to a forecast from Borrell Associates. Online political advertising represents less than 0.5% of 1% of all political ads. WPP to Make Digital Ad Acquisition This Week New York Post WPP boss Martin Sorrell says he is close to making a significant acquisition in digital advertising. Industry insiders believe one potential target is Spot Runner, a Web-based agency that aims to make television ads inexpensive for small businesses. Publicis, Google Reveal Digital Ad Partnership Reuters Internet giant Google and global advertising group Publicis are combining their expertise to expand in the fast-growing digital ad market. The two companies are not giving details just yet. Google is not a "long-term enemy," says Publicis chief Maurice Levy. "It's a real partner." Coors Punts TV, Takes Super Bowl Ad Online Click Z News With the cost of Super Bowl commercials nearing $3 million per spot, Coors Brewing Co. is inviting its consumers to submit user generated content videos online to win tickets to the big game. The contest allows consumers to "interact with our brand," says a Coors rep. NBC Store Sells 150,000 Dwight Bobbleheads UPI The NBC Universal Store has sold 150,000 bobblehead figures modeled after Dwight Shrute, a character on the hit sitcom "The Office." The figures first went on sale in April 2006. In honor of the milestone, two bobbleheads autographed by Wilson will be available online for fans to win. Traditional Advertising Is 'Less Effective' BusinessWeek A McKinsey report predicts that traditional television advertising will be "one-third as effective in 2010 as it was in 1990." Also, not as many people are dialing 800 numbers and clicking on banner ads as they once did. Thanks to the Internet's interactivity, one-way messages "no longer work." Hyundai May Pull Super Bowl Ads Over Economy AdAge Hyundai Motor America, which booked two spots in the Super Bowl, is considering pulling out of its advertising commitment on the Fox broadcast because of concerns about the U.S. economy. A Hyundai rep asks: "Is this the best thing to do with our advertising funds?" NBC Ramps Up Out-of-Home TV Ad Sales Reuters NBC Universal is making its first ever pitch to top marketers on alternative "out-of-home" locations. As television networks face more competition for advertising dollars, NBC is showcasing opportunities in venues such as taxis, hospitals, stadiums and gas stations. Microsoft, Edgar Online in Ad Partnership CNET News.com In its latest ad-serving deal, Microsoft has landed Edgar Online, the Web site best known for providing businesses with access to U.S. Securities and Exchange Commission documents. Edgar Online will provide content, including SEC filings, to Microsoft's MSN Money. Bloggers to Benefit from New Ad Services Wall Street Journal New services and tools, some of which include audio and video, are helping bloggers earn advertising dollars on their sites. Nielsen Online exec Pete Blackshaw says: "There's going to be a lot of new business models in 2008 that are geared toward more monetization." Timberlake Returns to Super Bowl (Without Janet) UPI Justin Timberlake will perform "wild stunts" in a new commercial for Pepsi Stuff, set to air during this year's Super Bowl. The pop star previously appeared at the Super Bowl in 2004, performing on CBS live with Janet Jackson during the infamous half-time show "wardrobe malfunction." EMI Music Albums May Sell Sponsorships Financial Times The next Coldplay album could be "brought to you by Sudafed," under a plan being unveiled by Guy Hands, the head of Terra Firma, the private equity firm that owns floundering music company EMI. "Football teams have corporate sponsorship," he says. "Why shouldn't the leading bands?" Microsoft Brings Video Ads to Grocery Carts Associated Press Microsoft is working with Plano, Texas-based MediaCart Holdings on a grocery cart-mounted video console that will help shoppers find products in the store, then scan and pay for their items. Microsoft's aQuantive will serve video ads onto these grocery cart screens. News Corp Set to Sell Out Super Bowl Ads New York Times News Corp.'s Fox Broadcasting is said to have sold all but one of the 63 30-second commercials that it plans to run during the Super Bowl on Feb. 3. The Super Bowl is described as the "last bastion of mass marketing, with incredible reach." NBC May Return $15 Million to Advertisers AdAge NBC is offering some Golden Globes advertisers the option of getting cash back because the broadcast has been scuttled, and could end up returning up to $15 million. Meanwhile, ABC is reaching out to ad buyers to discuss what to do in case its Oscar broadcast is canceled. Ad Spending Expected to Rise in 2008 Forbes.com U.S. advertising spending is expected to rise 4.2% to some $156 billion in 2008, according to the annual report released by TNS. The Internet, cable television and spot TV are forecast to exceed the market average; business-to-business magazines and newspapers face "gloomier outlooks." Google in New Push for Local Ad Dollars Official Google Blog Google is working on getting the word out about AdWords to local businesses. The search giant recently gathered 150 AdWords partners at the Googleplex for a local markets symposium, which featured guest speaker Craig Newmark of Craigslist fame. Yahoo Spruces Up Mobile Platform for Ads Associated Press Yahoo plans to open up its mobile platform so outside programmers can develop new applications that can be planted on its pages accessed on mobile handsets. Yahoo hopes the mini-applications will help attract more users so it can make more money from advertising. Viacom's BET Launches Online Ad Network WebProNews BET Networks is launching a vertical advertising network in an effort to give advertisers more exposure to African-American Internet users. The ad network features 30 Web sites focusing on music, entertainment and lifestyle content aimed at the urban and African-American communities. UK Web Ad Spend to Exceed TV in 2009 Guardian The U.K. in 2009 will become the first major economy to see advertisers spend more on the Internet than on television advertising, according to media buying agency Group M. But this will not mean the demise of TV as a major ad medium: "Most of the growth is coming from search ads." Online Ads Come of Age, or Maybe Not Washington Post The rise of social networks such as Facebook and wireless gadgets such as the iPhone is setting off a small stampede of companies hoping to replicate their success. Many are counting on advertising to pay the bills. But many venture capitalists, still mindful of the dot-com bust, are skeptical. Nielsen: Ad Spending on Internet to Soar Hollywood Reporter Advertising spending for the first three quarters of 2007 dipped 0.1%, but spending on the Internet continued to soar, with a 15.9% increase over the same period last year, according to Nielsen Monitor-Plus. Spending declines were noted in media such as spot TV and newspapers. Google's Advertising Reach May Be Unrivaled Washington Post Google's planned acquisition of online advertising giant DoubleClick may create an ad powerhouse of unrivaled knowledge of Internet users' lives. Google is set to become "the world's private ministry of information," says Jeff Chester, head of the Center for Digital Democracy. Execs: Web Ad Spending Should be Higher Associated Press Online advertising raked in $20 billion this year, but Internet execs say that figure could have been higher if advertisers had reliable and consistent ways to measure online audiences. Says Disney Internet group head Steve Wadsworth: "This industry looks like it can't get out of its own way." Social Networks to Reach $4 Billion in Ads Red Herring / CNET Social-networking sites are forecast to haul in billions of advertising dollars in the next few years, according to a report from eMarketer. Worldwide spending is expected to top $4 billion by 2011. However, analysts at Gartner are warning companies not to rush into social networking. TV Ad Buyers Rethink Mass-Market Model New York Post The steady erosion of primetime television is about to change the fundamental structure and financial clout of broadcast TV's perennial cash cow, warn advertisers. The three-hour primetime window could shrink to just two hours a night; the standard TV season may "disappear." Media Ad Spending Drying Up Quickly Crain's New York Total measured advertising expenditures grew just 0.2% to $108.2 billion in the first nine months of the year, according to TNS Media Intelligence. Television, radio and print media all took a hit. Increased spending on "untracked digital alternatives" contributed to the slowdown. Murdoch to Address Cannes Ad Festival Australian / Observer Rupert Murdoch plans to discuss the changing media landscape at the Cannes International Advertising Festival next June. He is expected to discuss his plans for the Wall Street Journal, MySpace and other company assets. Also: Murdoch is to take control of the Journal on Thursday. Facebook Members Sell Their Own Ads New York Times More than 1,500 Facebook users are starting to place advertisements on their own profile pages, despite the social networking site's rule against such ads. They are posting them with the help of a firm called Weblo that sells ads onto people's blogs and social networking profile pages. Old Media to Benefit from Political Ad Spend USA Today U.S. political campaigns likely will spend more than $4.5 billion on advertising and marketing in the 2008 election season, a 64% leap from the last presidential race in 2004, according to a report by PQ Media. More than 51% of political spending will go for local TV ads. Super Bowl Ad Slots Filling Up Fast at Fox USA Today Super Bowl XLII is nearly two months off, but only two of 63 30-second slots remain available, says broadcaster Fox. "You used to have choices for mass audiences," says Jim Nail of brand tracker Cymfony. Now, the choices are few. "This is the one event" for reaching a mass audience. Internet to Pass Radio, Magazines in Ads AdAge Internet advertising will overtake radio advertising in 2008, and surpass magazine advertising in 2010, according to a forthcoming ad-spending forecast from ZenithOptimedia. Television, still the biggest way to reach customers, is projected to "essentially hold its ground." Vanity Fair: Tobacco Ad Loss Won't Hurt Us Folio: R.J. Reynolds' plan to pull all print advertising in 2008 "will not have a significant impact," says a Vanity Fair spokesperson. In fact, Reynolds' pullout isn't expected to have much impact on the magazine industry. Tobacco represented only .4% of the industry's advertising in 2006. Advertisers Spend $1 Billion on Word of Mouth Ars Technica Some 80% of surveyed consumers trust recommendations offered by friends and family, says a report by PQ Media. PQ believes that advertisers will drop more than a billion dollars on WoM in 2007. A natural place for such campaigns is social networking sites like Facebook. Facebook Revamps New Advertising System AP / WSJ Facebook is overhauling its new advertising system that sparked privacy complaints; users will now have to give explicit consent before any personal data is passed along. Also: Facebook is filing legal motions to force 02138 magazine to remove lawsuit documents from its Web site. Fox Rejects 'Poor Taste' Web-Registrar Ads Arizona Republic U.S. domain-name registrar Go Daddy, known for its racy ads, plans to advertise during the 2008 Super Bowl. However, the Fox network has already shot down two proposed commercials, deeming them "in poor taste." Go Daddy says it still plans to buy "at least one" game spot. TV Networks Set for $120M from Web Ads Financial Times ABC, CBS, NBC and Fox, which are in a pay dispute with Hollywood television writers over online video advertising, will generate $120 million of revenues in 2007 from free Web streaming, according to media buyer Starcom. "Desperate Housewives" and "Heroes" are "big Web hits." RJ Reynolds to Yank Ads from Print Media Associated Press R.J. Reynolds, under pressure from anti-smoking groups and members of Congress over print ads for its cigarettes, says it will not advertise its brands in newspapers or consumer magazines in 2008. The company is still engaging in direct-mail advertising and promotion at retail outlets. Hearst-Argyle Teams with Google for Ads Reuters Hearst-Argyle Television is entering a deal with Google to become the first television industry reseller of Google AdWords. The TV-station group owner will use its Web sales force to provide marketers in its 26 local markets access to Google's online ad platform. Yahoo, Adobe to Put Online Ads in PDFs InfoWorld Yahoo and Adobe are partnering to allow publishers to run ads on PDF files posted on the Web or distributed via e-mail, opening up a new frontier in online advertising. Adobe declines to comment on whether the program will later be open to other ad providers like Google. Diller Leads in Online Holiday Shopping NYP / Newsday Barry Diller's online shopping empire, InterActiveCorp, which includes the HSN shopping channel and TicketMaster, was the top retail destination on Black Friday, followed by Amazon.com and WalMart.com. Also: Americans spent $700 million on Cyber Monday. News Corp to Build Online Ad Network Reuters News Corp.'s Internet division plans to launch an online network to sell advertising across Rupert Murdoch's sprawling empire and even to other media companies. The launch of a broader ad network follows a buying spree of ad networks by Microsoft, AOL and Google. TV Networks Surprised by Web Ad Action TVWeek Advertising time in television episodes streamed online was a hot property during the upfront, say ad buyers. While a tight ad market means it's next to impossible to buy ads in "Desperate Housewives" or "Heroes" on TV, spots in episodes of those shows are available online. NBC to Use TiVo's TV Viewership Data Wall Street Journal NBC Universal is entering an agreement with TiVo to become the first major broadcaster with the right to use the digital recorder company's research and interactive advertising products. The deal reflects rising demand in the TV industry for detailed audience viewing information. Media Sites See Keyword Ads Growing Fast BusinessWeek Major marketers are increasingly attaching advertising to selected words on newspaper and other media Web sites. So-called in-text ads pop up in small windows when a reader moves a cursor over highlighted, double-underlined words in a story. Up to 10% of Web users click on in-text ads. Facebook Users Gripe About New Ad Program Associated Press Facebook is facing complaints from some users who are surprised to find data about their online purchases added to their personal news feeds. The 2-week-old program lets marketers alert users about friends' activities. "People should be given much more of a notice," says one user. AT&T Buys Online Ad Firm Ingenio InfoWorld AT&T plans to buy online advertising company Ingenio, in a move that puts the telephone giant in competition with Google and other online ad leaders. Ingenio's technology measures the effectiveness of ads by tracking phone calls made to businesses based on phone numbers used in ads. Google/DoubleClick Scrutiny Urged Reuters Google's proposed acquisition of online advertising firm DoubleClick could harm competition on the Web, according to U.S. Sen. Herb Kohl, a Wisconsin Democrat, and Sen. Orrin Hatch, a Utah Republican. The possible deal needs "serious scrutiny." The Web Starts Gunning for TV Commercials Times of London Internet video services -- including Heavy, Joost, Blinkx and Babelgum -- have started or are planning television-like offerings. But so far, most leading advertisers remain wary about the Internet, partially for fear of undermining their brand image by associating with edgy Web fare. Online Video Threatens Traditional TV Spots MediaPost Online advertising is poised to disrupt the traditional television ad business, say participants in a panel discussion on video production during the OMMA Video conference. The production cost of an online video ad is about "one-eighth or even one-tenth" of a traditional TV spot. Online Ad Revenues Continue to Set Records InformationWeek Online advertising revenues in the third quarter of 2007 are up more than 25% to a record $5.2 billion, says the Interactive Advertising Bureau. Revenues are surpassing the third quarter of 2006 by $1.1 billion and are nearly 3% higher than this year's second quarter. Ad Execs Question Value of Web Video Ads Reuters Pre-roll commercials on online video sites are "annoying" and often send consumers off to other sites, say panelists at the ad:tech conference. And subscriptions "won't work," opines Huffington Post cofounder Arianna Huffington. YouTube is testing "less invasive" models. Forecasts: Online Advertising on a 'Rocket Ride' eMarketer / CNET U.S. spending on Internet advertising will skyrocket to $42 billion by 2011, as more money moves away from traditional media, predicts eMarketer. Also: Advertisers plan to spend more money on blogs and podcasts, according to the Society for New Communications Research. TiVo to Offer Advertisers Viewer Demos Reuters Digital video recorder company TiVo is offering a new service giving advertisers detailed profiles of its users. TiVo already sells advertisers second-by-second ratings of programs and commercials based on viewing habits. The new data will include age, income, marital status and ethnicity. TV's Move to Digital Perplexes Advertisers Reuters Americans can watch television shows on anything from a computer to an iPod these days, but advertisers have yet to figure out how best to take advantage of all the new ways to reach audiences. So suggests a panel of media experts at the AdTech conference in New York. AOL Buys Internet Ad Tech Firm Quigo Reuters Time Warner's AOL is buying Internet advertising technology company Quigo to bolster its ad force. The purchase price is said to be about $340 million. Quigo signed a deal with Time Warner's magazine division in June. Facebook Launches Ad Program for Brand 'Fans' CNET News Blog Facebook is announcing a new advertising initiative that will allow users of the social-networking site to sign up as "fans" of an advertiser's brand and refer friends, creating a "trusted referral," says founder Mark Zuckerberg. Launch partners include the New York Times and CondeNet. Google to Launch Game-Focused Ad Initiative GigaOM Google's long-rumored, game-focused advertising initiative is expected to launch later this month. The Internet giant, which bought in-gaming advertising company AdScape earlier this year, is believed to be planning to unveil its game-focused strategy in two steps. Martha Unveils Online Ad-Sales Network Advertising Age Martha Stewart Living Omnimedia is unveiling Martha's Circle, an ad-sales network that includes non-company sites and blogs, such as Apartment Therapy, 101 Cookbooks and Style Me Pretty. MSLO estimates the network will generate almost 20 million ad views per month. Newspapers in Talks to Create Online Ad Network Chicago Tribune Gannett, Tribune, Hearst, Media News and Cox are in talks to form an advertising sales force that could offer national advertisers "one-stop shopping" for ad space on big-market Web sites. The group would both overlap with and compete against a network set up last year by Yahoo. Writers Strike May Prompt TV Advertisers to Flee Bloomberg The Hollywood writers strike may prompt television advertisers to cancel purchases or demand additional spots to compensate for declining ratings, says Standard & Poor's. A prolonged strike is likely to damage ratings as networks substitute reruns and reality programs for popular shows. Google Denies Ranking Search Results by Ads PCWorld Google is dismissing rumors that commercial considerations play a role in how it ranks Web sites, as a screenshot of a Google search results list with dollar values for each link circulates in the blogosphere. Search results are "completely independent from our paid advertisements," Google insists. TV Spots Are Alive and Well at Hulu.com Advertising Age Hulu.com, the new NBC-News Corp. online video venture, will pair traditional 30-second ads with long-form video, such as an airing of the NBC comedy "The Office" -- but with only 25% of the ads one might have to sit through while watching television. Super Bowl Ads 90% Sold Out Thanks to TiVo Wall Street Journal Advertisers have already snapped up almost all the commercial spots for next year's Super Bowl, airing Feb. 3 on Fox. Media buyers say the ad-skipping epidemic has caused marketers to place a bigger emphasis on big television events that consumers tend to watch live. Google Confident DoubleClick Bid Will Clear Associated Press Google is confident that its $3.1 billion bid for online advertising firm DoubleClick will win over European and U.S. regulators, according to the Internet giant's chief economist, Hal Varian. Google and DoubleClick together will help expand the booming Internet ad market, he claims. Google in Deal for Nielsen TV Viewer Data New York Times Google is entering a partnership with Nielsen to give advertisers a better snapshot of how many people are viewing television commercials on a second-by-second basis. Information Google collects from EchoStar set-top boxes will be overlayed with demographic data from Nielsen. Google Offers Remedies to Win DoubleClick Bloomberg Google is offering to preserve some business practices at DoubleClick in a bid to win European Union antitrust approval for its proposed purchase of the advertising firm. Google will face additional scrutiny in the United States, where consumer groups are seeking to delay the acquisition. WPP: Ad Market Could Slowdown in 2009 Wall Street Journal The advertising market could be in for a slowdown in 2009 as a new U.S. presidential administration takes steps to right economic imbalances, warns WPP chief Martin Sorrell. "The issue that I'm more concerned about is what happens after the elections in America in 2008." Online Ad Growth Stunted by Inconsistent Data New York Times Big media companies are frustrated that their counts of Web visitors keep coming in vastly higher than those of the tracking companies. The growth of online advertising is being stunted, media industry execs say, because nobody can get the basic visitor counts straight. WPP Sees Weaker Results, Especially for Media MediaPost WPP Group, the world's largest buyer of advertising-supported media, is reporting modest third-quarter results, reflecting the impact of weakening U.S. dollar currency exchanges, and lagging performance for its media buying and advertising operations. Screen Digest Acquires Adams Media Research BtoB Screen Digest, a global media intelligence provider, plans to acquire Adams Media Research, a Carmel, Calif.-based supplier of market analyses. "Media players are experiencing changes of seismic proportions," says Screen Digest head Allan Hardy. "We now offer more expertise." Nielsen: Traditional TV 'Remains Strong' New York Daily News The average American television home last year had a set on for 8 hours and 14 minutes a day, according to Nielsen Media Research. "Television clearly remains a very important part of daily life in the United States," says Nielsen exec Patricia McDonough. Traditional TV "remains strong." ESPN, Nielsen Form Measurement Partnership WebProNews Nielsen and ESPN are partnering to create a model to measure people's use of media on platforms including television, the Internet and mobile devices. The panel will also examine how TV promotions bring people online and how online promotions direct people to watch ESPN programming. TV Networks Learn Who's Not Watching Ads Wall Street Journal As much as one-fifth of the audience for television's most popular shows are skipping the commercials, according to the first round of data for the new fall season, released by Nielsen Media Research. The figures underscore concerns about the effectiveness of TV advertising. Are Kids Ready for Ads in Virtual Worlds? CNET News.com Virtual worlds for youngsters are enjoying a growth spurt in interest and advertising. "This is a very powerful medium for marketing because it involves huge engagement," says Bob Bowers, CEO of virtual-world designer Numedeon. "It's more powerful than a cereal commercial." Adrants Blog Stake Sold to Trade Publisher AdFreak Steve Hall, the founder of Adrants.com, is selling a minority stake in his advertising blog to Watershed Publishing, a business-to-business online trade publisher. The deal is a combination of cash, equity and sales commission concessions, and values Adrants at $750,000. Old Media, Dot-coms Chase Finite Ad Dollars Reuters / NYT Television networks are now competing with Google and blogs for advertising dollars. Even with the boom in online advertising, there may "not be enough ad dollars in the marketplace." Nike exec Trevor Edwards says: "We're not in the business of keeping the media companies alive." Critic: Media Content 'Losing Its Value' Adweek Media content is losing its value, thanks to sites such as YouTube, MySpace and Craigslist, according to Web 2.0 critic Andrew Keen, author of "The Cult of the Amateur." "Advertising can only be saved if we can re-create media scarcity," he writes. "That means less user-generated content." GM's Internet Ad Spend to Rival TV Buy New York Post General Motors is buying up online advertising space on AOL, Yahoo, MSN and other top Web destinations for a full day, creating a massive "digital roadblock" to tout its 2008 Chevy Malibu. GM is spending as much on Internet ads as on the television portion of the campaign. Media is the 'New Creative,' Study Says Adweek Marketing is becoming less about sending a message to consumers and more about conversing and co-creating experiences, according to a new study from the Association of National Advertisers. "New media is changing the way marketers interact," says ANA head Bob Liodice. Sony's Video Game Unit Creates Ad Business Reuters Sony Corp's U.S. video games operation is creating an advertising unit that will promote brands and products inside games such as its upcoming "Home" virtual world. Sony will depict brands in various forms within the game, such as "on billboards and images of TV screens." MySpace: Marketers Boost Spending in Social Media USA Today Fox Interactive, which oversees News Corp.'s MySpace social-networking site, says the unit's revenue will top $1 billion for the fiscal year. Advertisers are making bigger investments, according to revenue head Michael Barrett. "Marketers are saying, 'Social media is on my budget.'" Google: Future is Ads on Phones, Not Older People NYT / CNET Google reportedly hopes to persuade wireless carriers and mobile phone makers to offer phones based on its new software. The cost of those phones may be subsidized by advertising. Also: Former Google staffer Brian Reid, 54, claims he was fired for being "too old to matter." Old Media Lose More Advertisers to Internet Bloomberg U.S. online advertising spending topped a record $10 billion in the first half of the year, according to a new study by the Interactive Advertising Bureau and PricewaterhouseCoopers. Google, MySpace and Facebook "are benefiting" as more advertisers abandon newspapers and television. Ads Less Trusted Than Consumer Opinion TV Week Consumers worldwide trust other consumers more than they trust messages from paid media advertising, according to a survey from Nielsen. Faith in recommendations from consumers tops newspapers, which came in second, followed by television, then magazines. Facebook to Allow Marketers to Tailor Ads USA Today Facebook, the red-hot social-networking site, is preparing a major new advertising plan for later this year that will let marketers tailor ads. The new format may display more prominent ads on the news feed -- a list of updates on the activities of a user's Facebook friends. Internet: Strongest Revenue Growth in Media Advertising Age The 100 leading U.S. media companies over the past year concocted more than a dozen major mergers, acquisitions and spinoffs, according to Advertising Age's annual "Media 100" report. Internet revenue rocketed 22.7%, ensuring its place as the fastest-growing revenue source. Nielsen to Expand TV Sample 'Out of Home' Los Angeles Times Nielsen Media Research plans to triple the size of its television ratings sample audience by 2011 to provide more accurate measurement. The move is "an acknowledgment that people watch television in different ways, and this is where television is headed." Hollywood PR Guru Kingsley Steps Down Los Angeles Times Pat Kingsley, the grande dame of Hollywood spin, is stepping down as CEO of PMK/HBH, the public relations firm she led for nearly three decades. Kingsley, 75, plans to devote more time to her clients, including Jodie Foster. Cindi Berger and Simon Halls will take over as co-CEOs of PMK. Ad Execs: 'All Hell Breaks Loose' on Internet Atlanta Journal-Constitution With Web campaigns, YouTube and social networking sites offering new opportunities and pitfalls, the feelings of many advertising execs attending this week's Advertising Week events in New York are summed up by the conference's title: "When Worlds Collide – All Hell Breaks Loose." Political Ad Dollars Stick to Old Media Adweek Political candidates are demonstrating a "stubborn devotion" to traditional media, along with a cautious streak that is holding them back from embracing the Web as an outlet for political advertising, say panelists at a Mixx Conference session. Candidates are "about seven years behind." DoubleClick Launches Mobile Ad Service BtoBOnline DoubleClick is launching DoubleClick Mobile, a new service for mobile advertising. The service integrates operational processes for scheduling, targeting, selecting and delivering ads on mobile Web pages with publishers' existing digital channels. WPP Ups Stake in Social Media Tracker Adweek WPP Group is joining in a $12 million round of funding for blog and social network tracking service Visible Technologies, which allows clients to monitor their online reputations -- and get a read on how they are perceived by consumers -- on search engines, blogs and social networks. Armani Opens Store in Virtual World Reuters Fashion designer Giorgio Armani is opening up shop in virtual world Second Life, with a store modeled on his flagship location in Milan. Armani will send an avatar of himself to celebrate the opening of the store. "Finally, I can really be in two places at once," he says. Google Stirs Fear Among Ad, Media Execs New York Post The witness list for the U.S. Senate hearing on Google's proposed $3.1 billion acquisition of advertising firm DoubleClick doesn't include any critics of the deal from among advertising and media companies. People are said to be "afraid of going against Google." Microsoft to Battle Google in Advertising New York Times Brian McAndrews, the head of Microsoft's recently acquired Internet advertising company aQuantive, says he intends to beat Google's DoubleClick. Microsoft aims to provide advertisers with a log of all the online locations where people see ads before going to advertisers' Web sites. Poll: Few Americans Respect Ad Professionals DM News The American view of the advertising profession could use repair, according to a new J. Walter Thompson study. When asked about respect for the profession, only 14% of those surveyed say their fellow Americans respect ad people: "I get tired of people trying to sell me stuff." Google: Advertising Types Will 'Converge' Bloomberg Eileen Naughton, Google's director of media platforms, spoke at the Online Media, Marketing and Advertising Conference in New York on Monday. "The velocity of change is absolutely accelerating," she says. New advertising media such as mobile and video "have real utility." ValueClick Shares Rise on Takeover Talk Bloomberg ValueClick, the second-biggest U.S. Internet advertising broker, is being seen as a potential takeover target. Recent acquisitions of online ad companies by Microsoft, Google, Yahoo and AOL are stirring speculation that ValueClick could be next, analysts say. Advertising Week to Study 'Empowered Consumers' New York Times / AW Famous brand characters like Mr. Peanut and Tony the Tiger will be downplayed during Advertising Week 2007, kicking off Monday in New York. More "substantive" aspects of this year's industry event include panel discussions with reps from Yahoo, Facebook and Craigslist. Online Advertisers May Gain from Downturn Financial Times Online advertising spending is predicted to continue its strong growth even if a U.S. economic downturn squeezes the ad sector as a whole. "If marketing budgets shrink, digital will still continue to grow," says Eric Bader, managing director of digital at MediaVest. Media Helped Drug Firms Fight Ad Restraints Wall Street Journal A new Food and Drug Administration bill, which passed the U.S. House and Senate this week, largely spared pharmaceutical advertising. One major reason: the drug industry found powerful lobbying allies among media companies determined to protect one of their biggest categories. Google Debuts Tool to Design Newspaper Ads InformationWeek Google is releasing a free software tool that allows Google AdWords advertisers to create their own Google Print Ads for display in newspapers. The company released Google Print Ads in July, a service that enables advertisers to buy traditional print newspape |