CAN DINOSAURS DANCE? DDS VS MEDIABANK

Backroom operations are battling it out. The stakes are high.

Agencies seeking out software systems for the management of an enterprise wide management suite are pitting Donovan Data Systems (DDS) to defend against Mediabank as smaller contenders including Strata and Harris sit it out in the bleachers. All the while, entrepreneurial entries in the form of MediaX begin nipping at all their heels.

Starcom’s move from Donovan to Mediabank likely cost them a small fortune and a major migraine, sparking rumors of a return to Donovan, while driving part of its account to nimble entrepreneurs ala MediaX.

IPG’s Mediabrands is on the fence and about to fall one way or the other as Mediabank pushes for a move to unseat Donovan. Mediabank toppled Donovan when it won the DraftFCB account, jamming its foot in the Mediabrands door.

But eating Donovan’s lunch will not be an easy feat as it represents the majority share of agency business, driving close to $200 million in revenue.

Donovan’s Achilles Heel: It’s the system of choice that everyone loves to hate and a dinosaur that cannot easily innovate.

Mediabank’s underbelly exposes hubris that allows them to believe they have sufficient resources to manage a large win.

Among the underdogs, Harris seems not to have been invited to the party while Strata was simply glossed over.

And …. An honorary mention to the new entries that seem to “get it” and are willing to match their resources to agency visions.

An upset may be close at hand, before year’s end.

WATCHING FACEBOOK

That I have been casting a watchful eye on the ever expanding Facebook tentacles, often cautioning users on privacy issues, is no secret. The exponential, albeit unaudited, growth of its user base closing in on one half billion and the questionable collection and use of the data it collects from its users continues to pop up like a bad penny.

This week's gaff, exposing tens of millions of its users' personal identity to advertisers, should be a wake up call for Facebook to finally clean up their act.

But it won't.

If we were to trace the "gaffs" back to revenue produced for Facebook, the picture could morph from Pollyanna to the greed of big business. No doubt the overzealous digerati would come up with blinded observations and poorly manufactured statistics, never losing site of self centered and self serving arguments .... drinking the Koolaid they mixed themselves.

The Internet provides us with a treasure trove of new and exciting options for entertainment, information and productivity platforms to enhance the world around our personal space. However social networks, moving in the direction of Facebook with total abandon and disregard for the sake of "advertising" revenue may, in the end, do more harm than good for the future of the Internet.

Simply, Facebook cannot seem to come up with a business model that does not deal with the discreet (and seemingly illegal) distribution of, or access to, personal data. The conversations and arguments center around "a better Internet experience", serving ads and content that THEY THINK .... make that THEY KNOW.... you want to see.

Give me a break!

It's about time we put the cards on the table and re-think the social network models before the house of cards collapses on itself. Let's begin the challenge by removing "advertising" from the equation.

And to those individuals that "don't care about their personal data being collected" ... please keep those empty arguments to yourselves .... you just don't get it.

FACEBOOK "NOSE" BEST

As Facebook grows to a reported 500 million users globally, its privacy policies and the management of information their users post is coming under more intense scrutiny. On the heels of the movie release, Social Network, Facebook announced new tools for its users to manage that information across personal groups of people they "trust".

But things may not be what they seem.

What follows are excerpts from Facebook's commentary ... what they are saying, followed by our interpretation of what they may be thinking.

"We use your information to make your experience better"
Interpretation: We want to know what you've been up to so that we can direct more relevant ads and search results .... so that we can sell you stuff.

"When a group member posts to a group, everyone in that group will receive a notification about that post"
Interpretation: But what your friends do with it we can't control. It's your problem.

"The whole experience is organized around spaces of the people you care most about"
Interpretation: We want to confuse you to the point of exasperation and give up control of your information.

"You can quickly download everything you ever posted on Facebook"
Interpretation: Because we don't want to be responsible for your garbage.

Most comments post on the Huffington Post review were overwhelmingly negative which leads one to assume that there are many more users abandoning the social network than meets the eye.

IPG'S MEDIABRANDS ON THE FENCE?

At the tail end of 2008, IPG's media management unit, Mediabrands, inked a multi-year deal with Donovan Data Systems (DDS). While it is unclear how much of the IPG spending flows through DDS (IPG agencies place upwards of $25 billion in media annually) it is nonetheless the lion's share.

DDS's competitor, Mediabank, quietly shored up its digital offering and in six short months following the DDS/Mediabrands deal Mediabank signed DraftFCB for digital services. A small but key foothold at IPG.

It was a whoops! for DDS as they struggled to keep the business.

After several starts and stops in 2009, Mediabank hired former Yahoo! and Right Media exec Bill Wise as CEO this past June 2010. It proved to be a wise move as Bill's vision and ability to chart and navigate digital waters was on spot for Mediabank.

Significant strides and development of their offerings over the last eight months, folding in Audience On Demand services in DSP fashion, places Mediabank at the nexus of what is coming next.

And .... it may have panned out as rumors have surfaced concerning a move by Mediabrands to DDS's rival Mediabank. In light of DDS's reluctance to move nimbly into the digital landscape it would not, however, come as a surprise and a severe blow to DDS.

If the Mediabank/DDS contract is up at the end of this year, we may just see a new face at Mediabrands.

BILLION DOLLAR FLASH IN THE PAN

With revenues approaching $500 million and having been in business just under two years its valuation is estimated to be $1 billion.

Groupon is a phenomenon that needs to slow down fast.

An article in this week’s BrandWeek covers two years of marketing efforts for the company that shuns traditional methods and relies on viral impact and PR efforts to push the envelope.

But can this business sustain itself in a fickle world of web “loyalists”? There is no doubt that Groupon is a success today. What it will become tomorrow is anyone’s guess …. if it survives.

I took the plunge about a year ago and purchased several restaurant chits that gave me an average 30% savings at three establishments (the restaurants pony up as much as 75% to the customer and Groupon). One chit introduced me to a new Chinese sandwich shop I would have tried again but, it went out of business. One was mediocre and a third was below sub-par.

Since the chits were good for several months I decided to wait a few months to avoid crowds. And I wanted to ask if they would “do it again”. No, no and NO!

Apparently it was good business for Groupon but not nearly a first base hit for the restaurants that need repeat, full-paying customers. Groupon is the leaking bucket that will eventually run out of water as it tries to refill itself with compelling offers.

Dismissing my preferences only for restaurants, I have since been deluged with offers for nail salons, spas and women’s apparel. According to Groupon’s SVP, marketing, Aaron Cooper …”When you deeply understand your customer and product, you’re going to be better …. no need to hire traditional marketers ….you’re going to be better”.

Pride before a fall …. hubris. I recently unsubscribed from the service and am a happy, “spam” free camper.

TOP TEN AD SECRETS

As much as and as quickly as media options change they stay pretty much the same. And as the force-winds of technology push us forward we quickly adapt.

Or do we?

It's a riddle. And we keep searching for the answer that is just under our very nose.

A recent blog post by Bob Hoffman, CEO of Hoffman Lewis in San Francisco and St. Louis, uncovers Top Ten Double-Secret Unknown Facts About Advertising. The list follows in its entirety .... with thanks to Bob for his investigative and inquiring mind.

An do drop by his insightful blog, The Ad Contrarian.

Top 10 Double-Secret Unknown Facts About Advertising

1) 99.9% of people who are served an online display ad do not click on it.

2) TV viewership is now at its highest point ever.

3) 96% of all retail activity is done in a store. 4% is done on line.

4) DVR owners watch live TV 95% of the time. 5% of the time they watch recorded material.

5) 99% percent of all video viewing is done on a television. 1% is done on line.

6) The difference in purchasing behavior between people who use DVRs to skip ads and those who don’t: None.

7) Since the 1990s, click-through rates for banner ads have dropped 97.5%.

8) Since the introduction of TiVo, real time TV viewing has increased over 20%.

9) Baby boomers dominate 94% of all consumer packaged goods categories. 5% of advertising is aimed at them.

10) TV viewers are no more likely to leave the room during a commercial break than they are before or after the break.

If you would like to print a nice, clean copy of this list and pin it up on your boss's wall, you can find it here.

Here are my sources:
1. DoubleClick, Benchmark Report, 2009
2. Nielsen Three Screen Report, Q1 2010
3. U.S. Department of Commerce, Q2 2010; Nielsen Three Screen Report, Q1 2010
4. Duke University, Do DVRs Influence Sales?
5. Nielsen Three Screen Report, Q1 2010
6. Duke University, Do DVRs Influence Sales?
7. Li, Hairong; Leckenby, John D. (2004). "Internet Advertising Formats and Effectiveness". Center for Interactive Advertising. And DoubleClick, Benchmark Report, 2009
8. NielsenWire, Nov. 10, 2009
9. Marketing Daily, July 22, 2010
10. Council for Research Excellence, May 10, 2010

DON'T MESS WITH THE PICKLE

First it was the pickle. Now it's the tomato. It was subtle, but timely.

Since 1876, the Heinz Ketchup bottle pictured a pickle on their label. In 2009 the pickle was dropped and replaced by a vine tomato. Makes sense, right? After all, Heinz is the largest user of tomatoes in the world and there is no hint of pickles in their ketchup.

Ketchup lovers all over were disturbed by this move .... from an iconic label to an average, inconsistent marketing gimmick!

But now Heinz crossed the line. Catchy phrases on the labels like "Can't Help Broccoli" and, OMG!, an in-your-face call to action to fan them on Facebook!

This cannot be happening! But it is.


From Hefty Trash Bags to Ticonderoga Pencils, marketers are driven to find "friends" on Facebook.

When was the last time you were passionate about trash bags or pencils and who are these so called marketers that have no clue? In many cases, Facebook can be leveraged to the benefit of some brands. In many many more cases it is a huge waste of time, effort and money.

"You like tomatoes and I like tomatoes .... let's call the whole thing off."

REFLECTIONS

In keeping with a the tradition to keep holiday posts a bit more personal, I wanted to highlight a non-profit organization you may have heard about.... Story Corps.

Their mission is to provide Americans with an outlet to record and preserve life's precious moments in story fashion. Since 2003, StoryCorps has collected and archived more than 30,000 interviews from more than 60,000 participants. Each conversation is recorded on a free CD to share, and is preserved at the American Folklife Center at the Library of Congress. StoryCorps is one of the largest oral history projects of its kind.

The video that follows is just one of thousands in their archives that I encourage you to visit. Click the enlarge button for the full effect. And if, by chance, it moves you, click on the sidebar link to make a donation.

Danny Perasa and his wife, Annie, came to StoryCorps to recount their twenty-seven-year romance. As they remember their life together from their first date to Danny’s final days with terminal cancer, these remarkable Brooklynites personify the eloquence, grace, and poetry that can be found in the voices of everyday people when we take the time to listen.”

Danny & Annie from StoryCorps on Vimeo.

“By listening closely to one another, we can help illuminate the true character of this nation reminding us all just how precious each day can be and how truly great it is to be alive."

Dave Isay,
Founder, StoryCorps

Happy Labor Day .....

WHO'S WATCHING YOU?

I found Tom Cunniff on the OT List, a group of industry professionals that have been working in advertising for a while ... ergo "Old Timers" or OT. But don't let the name fool you ... these pros are on the bleeding edge of new media channels and have the unique power to bring both "old" media and new media together.

Tom is VP Digital Director at Combe Inc and has an infrequent blog here.

In a recent letter to the OT group, Tom shared with us a "typical" dinner date with his wife. The evening follows .....

My wife and I have been going to the same sushi place in our NYC
neighborhood for years.

Everybody on the wait-staff knows us by name. When we sit down, we chat
and catch up a bit on each others' lives. Then the waiter asks if we
want the usual, which we usually do.

We love this. It's personal. It's about making us feel comfortable and
well-served. It's about a business relationship between us and that
restaurant.

But imagine how we'd feel if we knew that as we talked, our waiter was
recording everything we said and did and then contacting every
business in our neighborhood to tell them about our behavior.

"Here's what Tom ate, what new Barbara tried, and what they both
spilled on their clothes. I overheard them saying they're going to
Paris for 9 days. Barbara said she's exhausted. Tom said he needs to
get back to the gym -- and I could see he has sure packed on some
pounds lately! -- but that didn't stop him from ordering dessert. They
had a pretty heated discussion about some business thing Tom wants to
do..."

Now imagine us being pitched by every liquor store in our neighborhood
to try other sakes. By every dry cleaner for a discount on soy sauce
stain removal. By every car service for a trip to the airport, and by
every French restaurant. By every deli trying to sell Red Bull or
coffee to my exhausted wife. By every gym in the neighborhood AND
every bakery in the neighborhood about my weight gain. And by every
local marriage counselor, on top of all that.

It's completely impersonal. It's about telling strangers our
vulnerabilities. It's clearly much more about the restaurant serving
itself instead of serving us.

Can business educate me to feel good about that?

Can business educate me that my wife and I have never really had any
privacy in the first place, and that all of these are a natural
by-product of going anywhere in public and having a quiet
conversation?

Can business educate me to believe that business won't someday
redefine "public" to include the lobby of our apartment building, the
garbage that has been collected outside of it, and anything that can
be seen in the "public" areas of our apartment by a UPS delivery guy?

Here's the best defense I can muster.

===

Dear Public,

You have no reason to worry. In your heart, you know you can trust all
of our institutions -- especially big business like Enron, Bear
Stearns and BP -- to do the right thing. Just look at their track
record and you will be instantly reassured.

And besides, everything they do is completely transparent: it's
disclosed in multiple 900 page privacy policies strewn across multiple
websites written in multiple dialects of impenetrable legalese.

How wonderful it is to have this issue settled. Here, have a cookie!

HEALTHY HENS AND CHICKS

Late last year a couple of chicks got together and decided to break away from the mother hen. As they matured into adulthood, they recognized their health needs were different from the older hens. And so they set off to establish a community of chicks that had common health questions.... ChickRx.com was the result.

Born from one of the WebMd ribs, ChickRx is a new start-up focusing on everyday health issues, but not intended to offer up serious medical advice (see your doctor for that).

The founders, two twenty-something "chicks" felt a need for a health website targeting their demographic. Founders Stacey Borden and Meghan Muntean (both 26) describe ChickRx as Daily Candy-meets-WebMd.

No traffic stats yet for this newly launched site but we would like your opinion.

Is there a real need for another health site catering to twenty-somethings? Visit the site here and let us know below.