Is the Ad a Success? The Brain Waves Tell All

New York Times, March 31, 2008 — NEVER mind brainstorms. These days, Madison Avenue is all about brain waves.

That may be overstated, but it is no exaggeration that agencies and advertisers are growing more interested in neuroscience in their never-ending efforts to improve effectiveness.

The ardor of the ad business to adopt the technical tools of biometrics — measuring brain waves, galvanic skin response, eye movements, pulse rates and the like — is increasing as consumer spending, the engine of the American economy, slows.

Online Chat, as Inspired by Real Chat

A new wave of Silicon Valley companies is bringing live socializing into online social networking Web sites.

New York Times, March 31, 2008 — Compared with other forms of human interaction, online social networking is really not all that social.

People visit each other’s MySpace pages and Facebook profiles at various hours of the day, posting messages and sending e-mail back and forth across the digital void. It’s like an endless party where everybody shows up at a different time and slaps a yellow Post-it note on the refrigerator.

Now a new wave of Silicon Valley companies is bringing live socializing back into a medium that has, in the parlance of the technologists, grown overly asynchronous

Why '08 Isn't Mobile's Year -- Again†

Here Are Five Reasons, and Five Fixes That Could Make '09 the One (Really)

Advertising Age, March 31, 2008 — Each year since about 2000 — and maybe even before — has been wrongly touted as the year of mobile marketing. And this year won't be it either, despite the we're-not-kidding-this-time rhetoric being spouted by mobile-marketing boosters converging for telecom's big powwow in Las Vegas this week. Here are five reasons why — and five fixes that could make 2009 the year the channel becomes really, truly, we're-not-joking meaningful.

Yahoo Launches Shine, Site for Women†

Teams With Magazines for Content

Advertising Age, March 31, 2008 — Yahoo launched its women-focused property today. Coined Shine, the site is helmed by former Jane editor in chief Brandon Holley and includes licensed content as well as original content from many magazine industry refugees, such as Jennifer Romolini (formerly of Lucky), Erin Flaherty (ex-Jane), Valerie Rains (ex-Blueprint) and Anne Ichikawa (ex-Flip.com).

The launch of the site might seem to stray from Yahoo's previously announced strategy to focus on its "starting points," such as Yahoo's e-mail, search and personalized home pages, or established verticals such as Yahoo Finance or Yahoo Sports. But Amy Iorio, general manager of Yahoo Lifestyles, said it supports the starting point strategy because "Yahoo is a starting point for 40 million women." She said... continue reading

American Airlines Flies With Facebook Widget

MediaPost Publications, March 26, 2008 — HOPING TO COZY UP TO consumers, American Airlines has launched a new marketing tool disguised as a Facebook widget. The Dallas-based carrier is looking to learn more about consumer preferences and buying habits.

The widget, dubbed Travel Bag, offers features that let Facebook friends share personal tips and experiences through tools like Favorites, Travelogue, and Trip-O-Vent. American Airlines hopes that by learning more about consumers, it will be able to provide relevant information about services and destinations, rather than deliver a bunch of postal junk mail or email spam.

Clorox Courts Sierra Club, and a Product Is Endorsed

New York Times, March 26, 2008 — SHOPPERS in the household cleansers aisle of a Wal-Mart here one recent morning glanced at Clorox’s new Green Works products with disinterest, enthusiasm and skepticism. Their comments neatly summarized the pros and cons of Clorox’s bid to appeal to customers who buy with the environment in mind.

For Clorox, a company that built its name on chlorine bleach, the products are another foray into green marketing, after its purchases of Burt’s Bees, the cosmetics company, and Brita water filters. More important, the Green Works products are about to be paired with a name — the Sierra Club — normally associated with fighting toxic waste.

Social Site’s New Friends Are Athletes

Creative Artists Agency is expected to launch WePlay.com, a social networking site for youth sports — something like Facebook for young athletes — in April.

New York Times, March 26, 2008 — Late last year, Pamela Firestone, the mother of Tony Parker, the San Antonio Spurs point guard, went rooting through her home in Paris and dug up a VHS tape of a 9-year-old Tony on a Parisian basketball court with his two brothers.

O.K., let’s start,” the future N.B.A. star says in French. “It’s going to be the Chicago Bulls versus the San Antonio Spurs.”

In most families such artifacts are merely heirlooms, their value measured in memories. For the Hollywood talent agency Creative Artists Agency and the hedge fund Pequot Capital, these are assets to be exploited.

Spending on Alternative Media Jumps 22%†

Marketers Follow as Consumers' Broadband Use Surges

Advertising Age, March 26, 2008 — Spending on alternative media hit $73.43 billion in 2007, a 22% increase over the previous year, and will continue to grow, according to PQ Media's Alternative Media Forecast: 2008-2012, released today. The research firm tracked 18 digital and nontraditional segments, with a combined 16.1% of total advertising and marketing dollars in 2007, up from 7.9% in 2002, yielding a compound annual growth rate of 21.7%.

The forecast predicts a 20.2% increase over the next year, to a total of $88.24 billion, and a compounded annual growth rate of 17% for 2007-2012, reaching $160.82 billion. By then, alternative media will represent 26.6% of all advertising and marketing dollars.

Girl Scouts Seek an Image Makeover†

Green Skirts Are Out as Organization Faces a 'Nonjoiner' Society

Wall Street Journal, March 25, 2008 — The cookies will stay, but the green skirts are history.

The Girl Scouts, seeking to reverse declining troop numbers, is shaking up its image. On Tuesday, the organization is expected to announce the appointment of its first chief marketing officer, a former senior partner and executive group director at WPP Group's Ogilvy & Mather.

Laurel Richie will be in charge of modernizing the image of the Girl Scouts, which is viewed by many as a rigid, old-fashioned organization focused on cookie fund-raisers and campouts. "Girls think of us as outdated," says Kathy Cloninger, chief executive of Girl Scouts of the USA. "They have stereotypes of who we are that are not right."

Recession Can Be a Marketer's Friend†

From Soap Operas to IPods: History Suggests Slumps Spawn Innovation

Advertising Age, March 25, 2008 — The massive bailout of Bear Stearns from the brink of bankruptcy could be the first of many financial rescues needed. Despite double-digit plunges, U.S. housing is still overpriced by historical yardsticks. Retail sales have gone from slow to declining, and the consumer-spending binge that propped up the U.S. economy for years may not return for a long time.

In short, it's a great time to be in marketing.

Chrysler Ready to 'Listen' on New Site†

Automaker to Recruit Online Consumer Advisory Panel

Advertising Age, March 24, 2008 — Chrysler will begin recruiting U.S. residents in the next few weeks to participate in closed, online dialogues to gather insights for the automaker's marketing, product development, vehicle features and engineering.

Starbucks Gets Web 2.0 Religion, but Can It Convert Nonbelievers?†

New Blog, Social Networks Will Likely Reignite Debate If Move Is an Attempt to Empower Consumers or Advocate for the Brand

Advertising Age, March 24, 2008 — How many ways can its legion of latte-sipping loafers ask for free Wi-Fi? Starbucks is finding out.

Last week at its annual meeting, Starbucks announced the launch of My Starbucks Idea, a social network where consumers can post ideas for how the company can improve its service and products or comment and vote on others' ideas. Voting will be tallied online, with each idea assigned a point value.

Consumers will be kept up to speed on what Starbucks is doing with the proposed suggestions on a new blog, Ideas in Action.

Though the program sounds like a smart Web 2.0 move, it has already drawn a dart or two from observers of the company, and is likely to reignite debate over whether brand-created blogs or social networks are a smart attempt to empower... continue reading

TV Makes Strides While Marketers Experiment Widely†

Media Fragmentation, Measurement, Scale and Interactivity Are Just a Few Topics Debated at Our Latest CMO Roundtable

Advertising Age, March 24, 2008 — Is the scale that TV delivers anywhere close to being replaced for marketers? Ad Age Editor Jonah Bloom and CMO Strategy Editor Jennifer Rooney recently sat down with Association of National Advertisers President Bob Liodice; Jeff Bell, corporate VP-global marketing for Microsoft's Interactive ntertainment Business; Bob Stohrer, CMO of Virgin Mobile; and Steve Sullivan, senior VP-communications at Liberty Mutual, to answer that and several other critical questions

Using Customer Service as a Branding Opportunity†

Thanks to Web, Advertiser Can Engage in 'Conversational' Marketing With Customers

Advertising Age, March 21, 2008 — Conversing with consumers and finding out what they think about their brands has become a whole lot easier for marketers because of the web. And whether it's an actual customer-service call or inquiry or responding to a comment on the corporate blog, marketers need to start looking at each interaction as a marketing opportunity. That was one of the main themes that emerged during the "Listenomics: So you want to be a conversational marketer?" panel at the Ad Age Digital Conference.

MLB's Digital Dominance

As the world scrambles to master online video, crusty old baseball already has it figured out.

Fast Company, March 20, 2008 — For decades, the prevailing wisdom has been that professional baseball is behind the times. Its ownership rejects new voices like Mark Cuban. The game doesn't have the electric action of, say, curling. Like newspapers in a digital age, baseball is a relic that can't distract the kids from Facebook and Wii, no matter how many players pump human growth hormone.

And yet, step inside the offices of MLB Advanced Media, the digital arm of Major League Baseball, and the first thing you notice is not a beaming photo of 74-year-old commissioner Bud Selig, or black-and-whites of Joe DiMaggio. Next to a row of cubicles full of people writing code sits what appears to be a complete television studio, in which, on this day, former player Billy Sample is discussing... continue reading

Starbucks Unveils New Strategic Initiatives To Transform and Innovate the Customer Experience

Also Announces Acquisition of The Coffee Equipment Company and its State of the Art Clover® Brewing System

Starbucks Corporate Site, March 20, 2008 — With more than 6,000 shareholders in attendance, Starbucks Coffee Company (NASDAQ: SBUX) today unveiled a series of innovative customer-facing initiatives at its Annual Meeting of Shareholders. Howard Schultz, chairman, president and ceo, shared his vision for transforming the Starbucks customer experience and reinforcing a strong foundation from which to grow. The announcements marked the next stage of Starbucks transformation following nearly three months of passionate work that began with Schultz’s return as ceo on January 7.

A Ripe Time for Open Innovation

Recessions present a good opportunity to collaborate with others on finding, developing, and marketing new ideas

BusinessWeek, March 19, 2008 — With the economy softening, it's tempting for companies to turn off the lights and shut the door on innovation efforts until things pick up. But while this might look like a smart move, the impact—lost momentum, team dispersion, and wasted investments—is less than desirable.

It doesn't have to be this way. One of the best options for recessionary times, and, some would argue, even in expansive times, is to join forces with another entity with complementary innovation goals. Open innovation is about connecting with others to find new ideas and, often, to co-develop and co-market them.

Retailers Harness Digital Media for In-Store Experiences, Product Sampling†

Also Re-evaluating How to Deliver the Sunday Circular Through Mobile, Web

Advertising Age, March 19, 2008 — When it comes to retail spaces, marketers have perhaps the best opportunity to tie digital-marketing experiences to physical-marketing experiences. And marketers are experimenting with morphing circulars into mobile formats, implementing social media into in-store experiences and using technology to promote product sampling. In some cases, these technologies can be considered media in their own right.

The Brand Called Obama

Win or lose, Barack Obama's rise changes business as usual for everyone. Here's why.

Fast Company, March 19, 2008 — The fact that Obama has taken what we thought we knew about politics and turned it into a different game for a different generation is no longer news. What has hardly been examined is the degree to which his success indicates a seismic shift on the business horizon as well. Politics, after all, is about marketing — about projecting and selling an image, stoking aspirations, moving people to identify, evangelize, and consume. The promotion of the brand called Obama is a case study of where the American marketplace — and, potentially, the global one — is moving. His openness to the way consumers today communicate with one another, his recognition of their desire for authentic "products," and his understanding of the need for a new global image — all are... continue reading

Web vs. TV: Research Aims to Gauge Ads†

Goals Include Finding Optimal Mix of Media and Long-Term Results

Wall Street Journal, March 19, 2008 — When marketers buy ads on the Web, they can track everything from the number of clicks an ad receives from a certain ZIP Code to how long a person watches a video clip on a specific site.

But while those metrics help marketers gauge how successfully online ads lead to purchases in the short term, they don't reveal how the ads affect a brand's image over longer periods. And they don't help marketers compare an online ad's impact with that of a television ad.

At Starbucks, Low Key Vet Plots Course†

Wall Street Journal, March 18, 2008 — For the past two months, Howard Schultz has been the public face of Starbucks Corp.'s effort to turn around its coffee empire.

But the person crafting many of the strategies is a 40-year-old chemical-engineering graduate who was behind the success of Starbucks's Frappuccino line.

Tomorrow , Michelle Gass will sit in one of the front rows at Starbucks's annual shareholders meeting in Seattle while Mr. Schultz stands on stage and unveils fresh details of plans to revive the company. Mr. Schultz is expected to address how Starbucks will reassert its position as the world's coffee authority, reignite what the company calls its emotional attachment with customers and carve out new areas for growth.

Ms. Gass has been Mr. Schultz's right-hand person in... continue reading

Madonna and Unilever's Good Hair Day†

Star Breaks New Single Globally Through Appearance in Hair-Care Commercial

Advertising Age, March 18, 2008 — Madonna debuts her new single "4 Minutes (to Save the World)" in a new Sunsilk commercial that hits the screens around the world today. The song, produced by Timbaland and featuring Justin Timberlake, is from the singer's forthcoming album, "Hard Candy," due April 29...This is the first time that a music-brand partnership of this magnitude has been seen with a world-class megastar teaming up with a major marketer for a global launch.

Target's inner circle

They're brilliantly creative. They're enviably down-to-earth. They're universally imitated. And they're entering one of the most challenging periods the company has faced in 46 years.

FORTUNE, March 18, 2008 — You'd think Robert Ulrich would be warming up for his victory lap right about now. The soon-to-retire CEO of Target Corp. should be easing into a lavish farewell tour filled with teary thank-yous, champagne-soaked sendoffs, and a book of leadership secrets.

Attention, Bloggers†

For small businesses that can't afford a lot of marketing, the blogosphere offers a cheaper alternative

Wall Street Journal, March 17, 2008 — Andrew Milligan was stuck. He had spent $60,000 on trade-show exhibitions and magazine advertising for the bean-bag chairs made by his company, Los Angeles-based Sumo Lounge International, and sales were still languishing at a couple of bean bags a day.

So Mr. Milligan, like many small businesses looking to gain exposure and boost sales, turned to the blogosphere. He sent an email to the popular technology blog Engadget.com, asking the editors to review his product. While they declined that request, they agreed to trade three months of advertising on their site for 20 Sumo bean bags to outfit their new office.

Just in Case My Boss Asks Me During a Meeting, What Exactly Does 'Widget' Mean?†

Your Questions Answered: Widgets

Advertising Age, March 17, 2008 — We're talking about small, fairly straightforward applications that can run on your desktop or online: floating clock faces, scoreboards, weather monitors and so on. Think of them as miniature, portable web experiences that can be installed on your computer or — increasingly — embedded in MySpace or Facebook pages, in personalized home pages such as iGoogle, or on blogs.

Name That Firm†

What should you call your business? It's More Important Than You Think

Wall Street Journal, March 17, 2008 — Selecting a name is one of the most important decisions a company will ever make. But a lot of small businesses don't give it nearly enough thought.

Push in Online Car Shopping†

NBCU Is Hoping Stake in DriverTV Snags Ad Dollars

Wall Street Journal, March 17, 2008 — In an effort to snare more of the automotive advertising dollars migrating online, NBC Universal is buying a sizable stake in DriverTV, a Web site and video-on-demand channel that specializes in videos aimed at car shoppers.

NBCU is paying about $6 million for a 35% stake in DriverTV, which has about $8 million in annual revenue, according to people familiar with the matter. Currently all DriverTV's ad revenue comes from car makers, but the company, which is partly owned by the TV- and ad-production firm Radical Media, is hoping eventually to attract advertisers from other auto-related industries such as insurance.

Sex and the City’ and Its Lasting Female Appeal

New York Times, March 17, 2008 — WHEN it comes to products helping to promote the coming film based on the popular TV series “Sex and the City,” it seems the sky is the limit.

Better make that the Skyy is the limit, as in Skyy vodka, which is being named the “official spirits sponsor” for the movie. Among the tie-ins are drinks made with Skyy to be served at Houlihan’s restaurants and named after characters like Carrie, Samantha and Mr. Big.

So Just What Is Mobile Marketing?†

Your Questions Answered: Mobile

Advertising Age, March 17, 2008 — Let's begin with what mobile marketing is not: It is not billboards driven around town on the back of a truck. Mobile marketing is, well, marketing that makes use of the cellphone, and it could potentially take many forms.

Sponsors' Olympic Balancing Act†

Tibet Unrest Could Devalue Investments, but Firms Fear Riling China's Government

Wall Street Journal, March 17, 2008 — The violent clashes in Tibet and western China are causing Olympic sponsors to evaluate how they can protect their investment in the coming Games here, without appearing to undermine China's government.

Lenovo Group Ltd., Coca-Cola Co., McDonald's Corp., Volkswagen AG and others have paid record sums — as much as $120 million, according to some estimates — to sponsor Beijing's Olympics. To them, the Games are a unique opportunity to tap China's vast and burgeoning markets, and build vital relationships with the country's decision makers.

But there is growing concern among corporate sponsors that the rising tide of protests over Tibet and China's support of the Sudanese government will detract from the Games' commercial success, say some executives,... continue reading

Video Is Video. I Can Just Put Our Expensive TV Ads on the Web, Right?†

Your Questions Answered: Video

Advertising Age, March 17, 2008 — Not so fast, moneybags. People don't interact with the web the same way they do with TV. Consumers tend to be more active online and are ready to click away to another enticing locale as soon as the idea strikes them. They may not want to sit through a 30-second video ad, and definitely not a 60-second one.

Wait ... Isn't This the Same as Social Networks?†

Your Questions Answered: Social Media

Advertising Age, March 17, 2008 — Social networks are just one kind of social media. There are lots of others, such as blogs, wikis, video sharing and peer-to-peer networks, ratings systems, consumer reviews and micro-blogging tools. Some of this stuff is rather important, so we figured it needed its own entry.

What Is Marketers' Biggest Challenge When It Comes to Social Networks?†

Your Questions Answered: Social Networks

Advertising Age, March 17, 2008 — Marketers still haven't figured out that the interaction between people on social networks is unscripted. And like the people interacting within these networks, marketers have to learn to just react to what's going on.

For a New Brand, Pepsi Starts the Buzz Online

New York Times, March 14, 2008 — A BEVERAGE marketer known for pouring money into splashy ads in the traditional media is taking an unconventional approach with a new product. The decision by the North American division of Pepsi-Cola, part of PepsiCo, is another sign of the growing use of new media to introduce brands in mainstream categories like packaged goods. Such shifts in media-planning habits by companies like PepsiCo, Coca-Cola, Kraft Foods, Procter & Gamble and Unilever are the reason that spending for ads online is increasing far faster than for any other medium.

How Hulu's Design Gets It Right

Hulu, a major coup for Hollywood's Web aspirations, is the latest offering successfully designed for the elusive Gen-Y youth market

BusinessWeek, March 14, 2008 — It's a sleek-looking, fun-to-use media service—and, no, it isn't from Apple (AAPL). Hulu.com, which launched to the public Mar. 13, is Hollywood's long-awaited entry into free, on-demand Web video. The joint venture between News Corp. (NWS) and General Electric's (GE) NBC Universal division allows users to stream full-length episodes of some 250 television series online, such as NBC's The Office and Fox's 24, as well as films from Warner Bros. and Lionsgate (LGF), and content from major sports leagues.

In addition to heralding a sea change in media distribution—the ambitious project seems to have reconciled two once-vicious competitors, NBC and Fox, into working cooperatively online—the new Hulu is "also a prime example of Gen Y-oriented design,"

Online, Measures of Success Are a Moving Target†

Advertising Age, March 14, 2008 — As media agencies continue their transition toward integrating digital media planning and buying with traditional media such as TV and print, MediaWorks is making the rounds to talk to the people charged with making it happen. This week, Publicis Groupe's Starcom announced it was promoting Kelly Twohig to senior VP-digital activation director of the agency. She will oversee the agency's digital spending, reporting to Chris Boothe, Starcom's chief activation officer.

AOL to acquire Bebo social network for $850m

Brand Republic, March 13, 2008 — NEW YORK - AOL is to buy the teen social networking site Bebo in a $850m (£417m) cash deal, a move it said would give it a leading position in social media.

The surprise deal will create a network of around 80m users, AOL said. Bebo has a total membership of more than 40m worldwide, and claims status as the biggest

Children's Hospital in Hot Water Over Corporate Sponsorships†

Critics Dismayed by Association With Racy Retailer Abercrombie & Fitch

Advertising Age, March 13, 2008 — What's in a name? If you're a Columbus, Ohio-area children's hospital, plenty of donations

The Nationwide Children's Hospital, so called in recognition of the insurance company's $50 million donation, is drawing fire from advocacy groups for its embrace of corporate sponsors. The facility is preparing to break ground on the Abercrombie & Fitch Emergency Department and Trauma Center. Another retailer, Limited Too, will be recognized for its $5 million donation with the Limited Too & Justice Main Lobby.

But it is the affiliation with Abercrombie, known for its not-exactly-child-friendly advertising, that is drawing the most criticism. Abercrombie donated $10 million to the hospital in 2006 for the construction of the center.

Facebook application pays users for helping sell goods to friends

Associated Press, March 13, 2008 — Facebook Inc.'s popular online hangout so far has proven to be a better place for promoting fun and games than peddling products. But a new application aims to inject more commerce into the social playground by paying Facebook members who help merchants sell to their friends.

New Safety Setback Grounds Southwest Planes†

Wall Street Journal, March 13, 2008 — In another blow to Southwest Airlines Co.'s once-stellar reputation for safety and maintenance, the airline temporarily grounded 38 of its older jetliners yesterday after discovering that it was unable to determine whether an important safety inspection had been done properly.

Panel: Mad Avenue Must Cross-Train Across Platforms

MediaPost Publications, March 13, 2008 — FACED WITH AN INCREASINGLY DIFFUSE media landscape, advertisers and agencies must become more nimble and flexible in how they plan and execute campaigns, according to a group of top agency and brand marketing executives speaking at an industry conference Wednesday

Revlon's Makeup Test†

After a Painful Flop, Company Focuses on Its Core Brand

Wall Street Journal, March 13, 2008 — Revlon's new cosmetics have to do more than create just another pretty face.

Starting this week, TV ads starring longtime spokeswoman Halle Berry will introduce a line of Revlon makeup infused with minerals. Print ads launched in magazines last month featured Jessica Alba touting new Revlon foundation in a bottle that lets consumers' customize their shade, and this month she is featured in lipstick ads.

The blitz marks the first major initiatives since the company's Vital Radiance cosmetics line aimed at older women flopped 18 months ago, leading to the ouster of its chief executive, more than $70 million in losses, the dismissal of about 10% of its U.S. work force and a new strategy for Revlon.

YouTube Coming to TV, With TiVo the Gateway

New York Times, March 13, 2008 — Pick up the remote, turn on the television and watch YouTube.

The blurring of the television and the computer, envisioned by technology enthusiasts for years, advanced another step on Wednesday when TiVo, the popular maker of digital video recorders, announced an agreement with YouTube that will deliver millions of Web videos directly to users’ TV screens.

“TiVo’s strategy is to bridge the gap between Web video and television and make as much content available as possible for our subscribers,” said Tara Maitra, TiVo’s vice president and general manager for content services.

CMOs Make the Switch to CEOs†

Brandweek, March 12, 2008 — More CMOs are becoming CEOs. When Uli Becker was promoted from CMO to president and CEO of Reebok last week, he entered adomain that had been typically occupied by executives with strong backgrounds in finance and operations, but not necessarily marketing.

Hulu's Ads Aim to Engage, Not Annoy, Web Viewers†

OMD Signs as Agency Partner Through End of '08

Advertising Age, March 12, 2008 — Watching "Family Guy" on online video site Hulu.com isn't like watching it on TV. You can pause the show, even take a break from it and come back to it later. As more consumers look to the web for entertainment they would normally watch on their flat screens, however, Hulu offers a map for how boob-tube advertising might develop.

Efforts to Centralize, Integrate Marketing Function Falling Short

Marketing Charts, March 11, 2008 — Despite a growing trend to centralize the marketing function and integrate its disciplines, only 13% of senior marketers are very satisfied with their company’s marketing structure, according to new research by the Association of National Advertisers.

Moreover, though 37% of executives surveyed report that their marketing department interacts and advises their company at a higher level now than two years ago, only 21% say marketing interacts at the C-level of the company:

'The consumer is boss'

Back in 2000, P&G was stumbling; earnings, execution, and morale were all poor. Now this historic company, founded in 1837, is on a roll. How did it regain its footing? One key: getting to know its co

FORTUNE, March 10, 2008 — In this adaptation from their forthcoming book, The Game-Changer, A.G. Lafley and management consultant Ram Charan describe the principles of innovation and give a grass-roots example of how listening to the bosses in this instance, Mexican housewives - can pay off. The first section describes, in Lafley's own words, the difficult circumstances he faced on becoming CEO of Procter & Gamble (PG, Fortune 500) in 2000.

Going to the Company Elders for Help

New York Times, March 10, 2008 — On a recent Saturday afternoon, John Toppel, a retired Hewlett-Packard sales manager, did not spend his leisure time golfing or mowing the lawn. He spent it at a local electronics store extolling the virtues of H.P. laptop computers to customers. He was not paid by the store or by Hewlett-Packard, for that matter. Mr. Toppel, 62, left the technology company four years ago, but he remains a volunteer cheerleader for H.P., one of thousands of its retirees whom the company is trying to galvanize into an auxiliary army of senior marketers, good-will ambassadors and volunteer sales people. None of them get paid; they do it, they say, because of their affection for the company.

How Much Choice Do Consumers Want?

It depends on the consumer.

eMarketer, March 10, 2008 — Product line extensions. New and improved flavors. Mass customization. Sometimes it seems like giving consumers choices is what marketing is all about. It's part of why manufacturers and service providers put so much information online for consumers. Yet researchers at the University of Iowa recently found that people who have only a little information about a product are happier with that product than people who have more information.

Point and Click—at Your TV

Backchannel takes a remote shot at that elusive prize: profitable interactive television

BusinessWeek, March 10, 2008 — Michael Kokernak has been unhealthily gripped by a very specific obsession for more than 10 years. Fortunately, his fixed stare is trained on something socially acceptable, even though it may not make for scintillating party chat.

Since 1997, Kokernak has immersed himself in the arcana of making advertising accountable, and, more recently, in how to fuse TV ads with the measurable, click-here-now aspects of the Web. Kokernak is the founder and co-CEO of Boston-based Backchannelmedia. The company peddles technology that, to oversimplify somewhat, flashes on TV ads and programs small onscreen tokens that are "clickable" with a standard remote control, à la Web ads.

Serving Up Television Without the TV Set

Watching television online is now a common activity for millions, with one in four Internet users watching a full-length show online in the last three months.

New York Times, March 10, 2008 — The “stupid computer” is a repeated target of the dimwitted office manager Michael Scott on “The Office.” But the show itself may be motivating viewers to put down their remote controls and pick up their laptops.

When the fourth season of “The Office,” an NBC comedy, had its premiere in September, one in five viewings was on a computer screen instead of a television. The episode attracted a broadcast audience of 9.7 million people, according to Nielsen Media Research. It was also streamed from the Web 2.7 million times in one week, the executive producer, Greg Daniels, said.

“The Office” is on the leading edge of a sharp shift in entertainment viewing that was thought to be years away: watching television episodes on a computer screen... continue reading

Southwest Goes South, Turns to CRM for Salvation†

Airline's Recent PR Turbulence May Have Also Exposed Some Brand Issues

Advertising Age, March 10, 2008 — Want to get away? Southwest Airlines is probably asking itself that after experiencing one of the most embarrassing moments in its history.

The airline had a major PR crisis on its hands last week when the Federal Aviation Administration issued it a $10.2 million fine, saying the carrier misled the agency about the inspection of planes for fuselage cracks. The airline, which has recorded 35 consecutive years of profitability, said the problem boiled down to a computer error and at no time was passenger safety compromised.

Choosing not to take the advice of its popular ads, the company dealt with the problem head on by speaking with the media; issuing a statement on its site; addressing the issue on its corporate blog; and letting CEO Gary Kelly, who... continue reading

Study: Kids Are Master Multitaskers On TV, Web, Mobile

MediaPost Publications, March 10, 2008 — TELEVISION IS NO LONGER GETTING the undivided attention of kids, according to a study released today on social networking by Grunwald Associates LLC, an independent research firm that specializes in new media market intelligence.

About 64% of kids go online while watching television, and nearly half of U.S. teens (49%) report that they do so frequently--anywhere from three times a week to several times a day.

To Aim Ads, Web Is Keeping Closer Eye on You

A new analysis of online consumer data shows that large Web companies are learning more about people than ever from what they search for and do on the Internet.

New York Times, March 10, 2008 — A famous New Yorker cartoon from 1993 showed two dogs at a computer, with one saying to the other, “On the Internet, nobody knows you’re a dog.”

That may no longer be true.

A new analysis of online consumer data shows that large Web companies are learning more about people than ever from what they search for and do on the Internet, gathering clues about the tastes and preferences of a typical user several hundred times a month.

These companies use that information to predict what content and advertisements people most likely want to see. They can charge steep prices for carefully tailored ads because of their high response rates.

What Will Media Buying Look Like in 10 Years?†

Hundreds of Consumer Segments, Marketers Making Media and No More Upfront

Adweek, March 10, 2008 — In a fragmented media landscape, content matters more than ever, said Jim Poh, VP-director of creative content distribution for Crispin, Porter & Bogusky. "We are figuring out how to create content that will appeal to people first and then worry about delivery mechanisms later," he said last week at a 4A's Media Conference Panel called "It's 10 Years Later: Have Agencies Survived Digital Convergence?"

Big Names in Retail Fashion Are Trading Teams

New York Times, March 8, 2008 — It’s free-agency season in American fashion.

Isaac Mizrahi, the everyman’s fashion oracle, is about to leave behind his wildly popular cheap-chic clothing collections at Target to be the creative director for Liz Claiborne, the stalwart shopping-mall label.

Dana Buchman, a longtime favorite of customers at upscale stores like Saks Fifth Avenue and Neiman Marcus, is decamping this fall to the budget-conscious Kohl’s.

And Tommy Hilfiger, a constant in department stores like Dillard’s and Bon-Ton for two decades, now says he will sell his clothes only at Macy’s.

Over the next year, an unusually large group of famous clothing designers, motivated by lucrative deals, plan to shift their retail allegiances, in many cases abandoning stores... continue reading

Building an Online Community of Loyal and Vocal Users†

Internet Marketplace Etsy Embraces Forums, Blogs, Social Sites to Get People to Spread the Word

Wall Street Journal, March 6, 2008 — Etsy Inc., an online marketplace for handmade goods, offers a host of ways for its customers to connect with the company and each other.

These include user profiles, forums, blogs and a rating-and-feedback system for the site's 800,000 registered users, including crafters and artisans who sell their wares on the site.

But Etsy also has embraced ways that its customers interact with one another outside of the company's domain — mainly a handful of social-networking sites created by Etsy.com fans.

Can New Quiksilver Line Reach Beyond the Beach?†

Wall Street Journal, March 6, 2008 — Quiksilver Inc., a brand long favored by sun-baked surfers, is banking on a clothing line aimed at 20-something women to help the company branch out.

The new line, which starting this summer will be sold by retailer Nordstrom Inc. and Quiksilver's 669 stores, among other outlets, will keep the brand's name and wave-and-mountain logo. But it marks a change in tack for the company with headquarters in Orange County's "Surf City," Huntington Beach, Calif.

NBC: Digital TV Viewers Watching More Shows, Ads

MediaPost Publications, March 6, 2008 — NBC DIGITAL ENTERTAINMENT SAYS IT has good news for Internet TV advertisers on several fronts.

From a regular quarterly consumer-research study, NBC says more viewers are watching entire online episodes than ever before--some 92% of viewers that start an NBC video watch it all.

Media agency executives have been concerned that viewers are sampling shows online--just viewing for a couple of minutes, rather than staying for the entire episode. That means they are also missing out on commercial messages.

The study also notes that online viewers--via the NBC Rewind video player--have higher brand recall and increased satisfaction now than in previous periods: 86% brand recall versus 70% previously.

Online Pitches Made Just for You

New York Times, March 6, 2008 — IT’S an offer you can’t resist: fly to Honolulu for $200 round trip.

Alaska Airlines, which is tailoring online advertising to specific Web users, recently tested ads with and without Mount Rainier. But what you might not know is that the offer was designed especially for you.

Alaska Airlines is introducing a system on the Internet to create unique advertisements for people as they surf the Web.

Upwardly Mobile Stationery

It's a brutal market, so why does Staples think it's a good time to go upscale with office supplies?

BusinessWeek, March 6, 2008 — On one side of the Staples in Needham, Mass is the office supply chain's past. Plain manila folders, stacked in generic blue boxes, are $6.29 for 100. Six aisles away, on the other side of the store, lies what Staples (SPLS) hopes is its future: A dozen file folders, made of thicker stock and decorated with black-and-yellow stripes, are displayed on a faux mahogany table, like sweaters at J. Crew (JCG). They don't have price tags. Instead, a discreet sign on the table reads $6.99 for a dozen.

Staples is trying to take mundane office supplies upscale. Inspired by high-end stationery chains such as Crane & Co. and Papyrus, a new private-label brand, dubbed "M by Staples," features spiffy leather journals, several lines of stationery, business card... continue reading

Building Expertise Through Collective Innovation

The Raymond open-innovation conference gathered design managers from companies such as Heineken and Lego to share best practices and improve the bottom line

BusinessWeek, March 5, 2008 — Open innovation has been a hot management phrase for the past five years. So far, though, these collaborations have generally been focused on small-scale research and development, or technology ventures between giant global brands and smaller partners. Think Proctor & Gamble's (PG) collaborations with universities and suppliers or IBM's (IBM) embrace of an open-source software language which both saves the company money and provides it with a new revenue stream.

But what if you brought together design heads from some of the world's biggest global brands with the aim of stimulating innovation? That was the premise of the fifth annual Raymond conference on Feb. 28 and 29 in Rotterdam attended by 17 design managers from companies as diverse as Heineken,... continue reading

Customers Disappointed By Web Sites, Online Customer Service

MediaPost Publications, March 5, 2008 — WHEN IT COMES TO WEB recourses, consumer-centric companies are still failing to meet expectations, according to a new study of nearly 1,000 such companies and online shoppers.

Just 44% of consumers believe the information available on most company's Web sites meets their needs, found the study conducted by InQuira, a developer of automated self-service applications for Web-based sales and services, and research firm ServiceXRG.

And it's not for lack of trying, as a full 74.5% of consumers indicate that they use company sites to get information about products or services.

Eight-Brand Pileup Dents GM's Turnaround Efforts†

Wall Street Journal, March 4, 2008 — Michael Maguire has mixed feelings about General Motors Corp.'s coming launch of the Chevrolet Traverse, a seven-passenger crossover wagon that promises to boost sales at his family's Chevy dealership along Route 206 in Bordentown, N.J. The trouble is, the Maguire Automotive Group also owns a Saturn store a mile up the road, and the Traverse will crimp demand for the Outlook, a nearly identical crossover GM's Saturn brand began selling about a year ago. The arrival of the Traverse will mean "the window has completely shut for Saturn," Mr. Maguire said.

Reorganization Doesn't Do It for Marketers†

ANA Survey Reveals Little Satisfaction With Company Marketing Structures

Advertising Age, March 4, 2008 — Marketers apparently can't get enough of reorganization, but they aren't getting much satisfaction from it either.

Despite widespread and growing reorganization within their marketing ranks, highlighted by trends toward centralization and integration, only 13% of senior marketers say they're "very satisfied" with their companies' marketing structures, according to a survey released today by the Association of National Advertisers.

Fix the Actual Process of Developing New Products†

Get Going: There Is Much That Can Be Done Very Early in the Game

Advertising Age, March 3, 2008 — An article published Oct. 1, 2007, in Advertising Age sported the provocative headline, "Want New Products That Get Noticed? Change the Process." The article offered data regarding marketers' views of product introductions.

And it's a dismal picture: Even marketers believe most new products have little innovation or reason for being. And they don't expect to be doing genuine innovation in the near term.

Author Barry Curewitz did a great job of laying out the many ways creativity is not a core value, is not rewarded and is not invited into typical marketing management. My belief is that beyond introducing more creative content, the process of product development can be improved as well. In fact, there is much that can be done to improve the... continue reading

How to Make the Move Up to General Manager†

Four Things to Consider Before Taking the Next Step

Advertising Age, March 3, 2008 — For all the arguments calling for longer tenure, a majority of marketing leaders aren't intent on being career CMOs. Most aspire to trade their functional experience and take a chance on general management.

In a recent Spencer Stuart study of 500 marketing executives across industries, only 30% want to be a CMO, while 70% of respondents have long-term aspirations of becoming general managers.

It's not an outlandish goal. Broad cross-functional complexity, tied directly back to P&L results, often makes a marketing career a natural route to general management.

After years of planning, implementing and evaluating marketing programs, should general management be your next step?

Move Past Stereotypes and Connect With CIOs†

Hook Up: Why the IT Organization Doesn't Have to Be a Marketing Obstacle

Advertising Age, March 3, 2008 — Chief marketing officers work tirelessly to meet the needs of their customers, who are demanding a higher level of personalization as they interact with marketers. CMOs want to implement better websites, more-effective customer-relationship-management systems to boost customer service and e-mail-message relevance, and self-service options in stores and online. Unfortunately, they commonly face a major obstacle: the chief information officer and IT organization, who often respond to requests for projects with the same answer: no.

But with technology playing an even greater role in marketing activities and the importance of the customer experience, CMOs need to put an end to this pattern and form strategic relationships with their CIOs.

Putting Innovation in the Hands of a Crowd

New York Times, March 3, 2008 — IF executives are going to rely on the wisdom of the masses for business help, it’s probably time the masses get a little compensation for it.

That’s the theory behind Kluster, the newest in a lineup of companies using the Web to channel the collective wisdom of strangers into meaningful business strategies. With a cash reward system for contributors and a big beginning at the TED conference last week in Monterey, Calif., Kluster hopes to attract just enough visitors with just enough business smarts to gain early momentum.

Six Tips for a First-Time or Newly Appointed CMO

Marketing Profs, March 3, 2008 — I've been at this CMO role for a really long time: seven months, to be exact. Which, depending on what industry report you happen to read, is one-half to one-third of the average CMO's tenure. So in some ways, I already feel like a dinosaur.

Not to mention that I'm a CMO at a company that didn't have to, or didn't need to, market itself previously; nor had it ever had a traditional marketing "budget" for things like public relations, media buying, trade marketing and sponsorships, or professional organization alignment and participation.

Oh, I almost forgot: When I was hired, I had a staff of one. Me.

Wal-Mart Tastemakers Write Unfiltered Blog

New York Times, March 3, 2008 — Microsoft is one of Wal-Mart’s biggest suppliers. But that did not stop the Wal-Mart employee in charge of buying computers from panning Microsoft’s newest operating system, Vista. “Is it really all that and a bag of chips?” he wrote on his blog. “My life has not changed dramatically — well, for that matter, it hasn’t changed at all.”

What All That Chatter Is Really Saying†

Text Analytics Can Turn Customer Feedback Into More-Meaningful Insight

Advertising Age, March 3, 2008 — When Rebecca Gillan walks through the lobby of a Starwood hotel, she doesn't want to hear the guests talking about "good" or even "very good" service. That's because she knows "good" is only worth a six or seven when a guest fills out a customer service survey. She'd rather hear superlatives such as "excellent," "outstanding" or even "cool," because that's where the nines and 10s are.

What's on McDonald's Olympic-Marketing Menu†

Q&A: Fast Feeder's 'Biggest Activation Ever' Includes Sending 200 Kids to Event

Advertising Age, March 3, 2008 — One message, 118 countries.

Since Mary Dillon took over as global chief marketing officer at McDonald's in October 2005, she's been working to strengthen and interpret the company's "I'm lovin' it" ad message — which she describes as having "the highest level of consumer awareness in words and five notes that you can almost get in a global campaign" — to consumers around the world.

As part of that effort, she's captaining the marketing team for the Summer Olympics in Beijing, which she says will be the company's "biggest activation ever." The plan involves global spots to showcase the chain's history of feeding athletes — with local twists — and competitions in 30 countries to select 200 children for trips to the games.

A C.E.O. Sells the Store

New York Times, March 1, 2008 — Women’s suits. Mickey Drexler has women’s suits on the brain.

It’s a Tuesday afternoon in SoHo in Manhattan, and Millard S. Drexler — Mickey, as he is universally known — is in a Madewell store looking for customers he can talk to. Mr. Drexler, as you may know, is the chief executive of J. Crew — a job he took in 2003 after being summarily bounced from the Gap, the company he had led for 16 years, transforming it in that time from an $800 million midsize retailer into a $14 billion Goliath. Madewell, which he’s visiting today, is a brand-new J. Crew offshoot that sells hip, casual clothes. It’s a little like the way Mr. Drexler started up Old Navy to offer clothes that were less expensive than the Gap’s.

This visit is not some stunt... continue reading

Made to measure

CEO David Calhoun has a simple plan for Nielsen: Make gobs of money and reshape the future of marketing and media.

FORTUNE, March 1, 2008 — Under big blue letters declaring WE ARE NIELSEN, executives of the world's largest measuring company gathered in the ballroom of a resort near Fort Lauderdale for their second annual leadership retreat. Over two days in early January they trumpeted accounts won and targets achieved, and plotted Nielsen's plans for the year ahead, such as expanding its Internet ratings service into China. But a recurring theme was the company's need to improve - and fast - its spotty reputation with the clients that pay millions for its TV ratings data and retail market-share rankings.

Searching for the next Dubai

An inside look at how a huge Middle Eastern company wants to remake the developing world in its hometown's image.

FORTUNE, March 1, 2008 — It's always tough driving in the wilds of East Africa. But in the tiny country of Djibouti, our driver explains, it's tougher than usual. "Djiboutian goats don't scare," he says, holding down the horn and swerving. We're driving 100 mph the wrong way down a winding road through terrain so apocalyptic that British soldiers, back when they ruled the world, nicknamed this parched earth the Furthest Shag of the Never-Never Land.

Sultan Ahmed bin Sulayem, a slight man of 53 with rugged features and a serious face, rides shotgun. He is the founder and chairman of Dubai World, a holding company that, he says, has $100 billion in assets, including one of the world's largest port operators, a mammoth private equity house, retailer Barneys New York, and the... continue reading

The Pepsi challenge

Can this snack and soda giant go healthy? CEO Indra Nooyi says yes, but cola wars and corn prices will test her leadership.

FORTUNE, March 1, 2008 — Pepsi can have a strange effect on people. The company, that is, not the beverage. No sooner had PepsiCo president Indra Nooyi gotten word 18 months ago that she was to become the next CEO than she hopped on a plane to Cape Cod, where Mike White, her main challenger for the job, was vacationing. The two had worked together for years. Both had been CFOs and rising stars. Both loved music. When they'd been kicked out of a board meeting the previous month while their fates were being discussed, they went to the Jersey Boys musical on Broadway and sang along to all the Frankie Valli songs.

As Nooyi's plane landed on Cape Cod, there was White waiting for her at the airport with a card he'd written to congratulate her. They took a long walk on the beach. Back... continue reading