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.

THE 3D JACKPOT

The warning signals are out and they do not bode well for 3D TV or 3D film makers.

Having already invested billions, electronics manufacturers, production companies and Hollywood are bracing for a win or lose jackpot.

But what’s at the end of the rainbow may very likely turn out to be fools gold.

A report by the Financial Times yesterday pointed to a nervous set at Hollywood as many of the 3D releases simply flopped. The hype of Avatar, Alice in Wonderland and Clash of the Titans did not spill over to releases like Cats and Dogs which was panned by critics.

Overlooking the constraints of consumer spending in an economic downturn, 3D movie releases demand a 50% premium over 2D ticket prices. What are they thinking?

Short term vision has blurred reality as greed set in. 3D is a dimension looking for an audience that exists for the short term ….. until the novelty wears off.

And while Hollywood sits on the edge of their theater seat, companies the likes of LG, Sony and Samsung dove into the third dimension with huge investments in hardware.

Gizmodo reports that the sale of 3D TV units in Japan are not up to par. One year into marketing the units, prices are down by 20% and sales are not nearly predictive of a viable market. Yet the manufacturers are blindly predicting "millions of sets" will be sold in the coming year.

Say it often enough and you might come to believe it's true!

IDo believe in 3D, I DO believe in 3D, I DO believe in 3D ......

DID YOU KNOW?

Running late for a meeting in Connecticut, I pulled up to a drive through window at McDonald's and ordered an Egg McMuffin and a cup of coffee. Nothing extraordinary about it except for a declaration printed on the bag ....

"Great Breakfast Taste. We make sure of it. Every single egg we use throughout the year is individually inspected - all 3 billion of them."

Now that's quite a statement that got me to thinking. How long does it take to inspect an egg? And how many people does it take to do so?

Here's the math with the assumption that an egg can be inspected in one second.

To inspect three billion eggs in one year would take three billion seconds. A quick search at WolframAlpha converts that number to a bit over 95 years. Assume the average worker puts in 250 days a year, it would take 138.7 man years to inspect that many eggs.

Does McDonald's really employ almost 139 "egg inspectors"? I put a call into their corporate office. Their response follows.

"All of the fresh Grade A eggs used for the Egg McMuffin sandwiches are inspected at the farm. Eggs are washed with warm water before being inspected both visually and electronically for any cracks and flaws. Checked eggs are then packed for shipment to the McDonald’s restaurants. So yes, every single egg is inspected before it makes the Egg McMuffin grade!"

So the promise that every egg is individually inspected is stretching the truth. And your average consumer would assume that the eggs are inspected by hand before they hit the griddle.

Can we please get back to Harry McCann's search for "Truth Well Told'?

AOL: AMERICA OFF LINE

Once the focal point of social networking and a former stepchild of Time Warner, AOL may be writing its final chapter as a viable business. Spun off buy Time Warner in the fourth quarter of last year and declaring it's IPO status the same day, AOL (NYSE) is facing a tenuous future.

The chart that follows illustrates its revenue declines over the past few years. As subscribers leave (who needs a middleman to connect with the net?), ad dollars are sure to decline as well.

Click on the chart to enlarge.

What went wrong?

Is Time Warner to blame? Since its merger with the company in 2001, a decline of the value of the company was set in motion. Controversy concerning operations, billing disputes, account cancellation "scams" and subsequent investigations did not help its cause.

AOL was becoming a company in search of a purpose.

AOL is a matured company in a failed marriage that has not been able to keep pace with the shifting dynamics of a digital landscape. Its management is likely to blame, taking their eyes off the real prize ..... people.

Building a huge following with little regard for the followers (are you listening Facebook?) is a perfect recipe for failure.

It was fun while it lasted ....

AOL's stock graph since its IPO follows ....

Click image to enlarge