Creston to focus on digital marketing

http://www.ft.com/cms/s/0/af79f718-82d6-11df-b7ad-00144feabdc0.html?referrer_id=yahoofinance&ft_ref=yahoo1&segid=03058

Creston plans to focus on digital marketing and research after exiting traditional advertising with the sale of its agency DLKW.

“Eventually because of the way the market was moving I became very concerned that the above-the-line advertising industry was going to continue to be under pressure regardless of the economy,” Mr Elgie told the Financial Times.

DLKW was not performing “any worse” than other traditional agencies, he said.

The deal “puts us into a better shape for the future. We won’t have any legacy business.”

As a result of DLKW’s sale, Creston’s Health and Insight divisions, which command higher margins than traditional advertising, will increase from 46 per cent to 54 per cent of group profit.

National Envelope gets $140 mln Cenveo buyout bid

http://www.reuters.com/article/idCNN3024556820100630?rpc=44
NEC Holdings Corp, which said it is the largest U.S. envelope maker and is operating under bankruptcy protection, is the subject of a $140 million takeover bid by rival Cenveo Corp (CVO.N).

In a Wednesday filing with the U.S. bankruptcy court in Wilmington, Delaware, Cenveo said it offered to buy NEC's assets for at least $140 million in cash, a "higher and better" offer than an unnamed private equity buyer has offered.

Local.com® Acquires Local Domain Advertising Company

http://finance.yahoo.com/news/Localcom-Acquires-Local-bw-2544626187.html?x=0&.v=1
Local.com Corporation (NASDAQ:LOCM - News), a leading local search site and network, today announced the acquisition of the assets of OCTANE360 (http://www.octane360.com/), a technology startup providing domain-based local advertising solutions to small businesses, domain portfolio owners, agencies and channel partners.

Under the terms of the agreement, Local.com acquired the assets of OCTANE360 for $5 million in cash and stock with an earnout of up to $5.9 million if certain performance criteria are met in the two-year period following the closing. Founded in 2008 and based in Los Angeles, California, OCTANE360 will become a wholly-owned division of Local.com.

ComScore buys Nexius for $23.6M in cash, stock

ComScore Inc. said Thursday it has acquired Nexius Inc., which provides technology that analyzes mobile phone data.

Nexius provides technology that analyzes a wireless carrier's data, such as call volumes. ComScore measures online traffic trends.

In a regulatory filing, comScore said it paid $23.6 million in cash and stock.
http://finance.yahoo.com/news/ComScore-buys-Nexius-for-236M-apf-425855991.html?x=0&.v=1

Rewards Network shares climb as Zell explores

http://finance.yahoo.com/news/Rewards-Network-shares-climb-apf-1367484991.html?x=0&.v=1

Shares of Rewards Network Inc. soared Wednesday, after real estate mogul Sam Zell sent a letter to company executives saying his private equity firm was interested in buying out the company that provides dining rewards programs for restaurants.

Zell is chairman of media company Tribune Co., which is under federal bankruptcy court protection after faltering under debt from Zell's leveraged buyout of the company in 2007.

Aegis Launches Team Epic

'Lifestyle' marketing shop has 200 employees http://www.adweek.com/aw/content_display/news/agency/e3i691fbb5b4fe8721fd214e919590c7aaa

At the core of the operation are two existing Aegis units -- events specialist Velocity Sports & Entertainment and experiential marketing unit Vivid Marketing -- which are being integrated under the Team Epic umbrella, Aegis said.

Aegis said the new offering is designed to ensure that clients-- including AT&T, FedEx, IBM, Sports Illustrated, Charles Schwab and Mars -- are "completely responsive to the needs and desires of consumers now and into the future."

The holding company said additional Aegis units would also be incorporated into the Team Epic operation, including research firm SRi. The new entity will also have access to the digital resources of Isobar, the company said. Team Epic will be managed by a committee comprising current Velocity principals Dave Grant, Mike Reisman and Bob Wilhelmy and Vivid leaders Erik Peterson and Andy Cook.

Team Epic will house over 200 employees at offices in Norwalk, Conn., Atlanta, Charlotte, N.C., Boston, San Francisco and London.

"Team Epic has been developed with an eye on today's consumer trends," said Reisman. "We believe it is critical to provide our clients the means to get close to their consumers -- both b-to-b and b-to-c --- in the most intimate, compelling and measurable ways."

"Core to the Team Epic brand promise is the idea of 'personalization,'" said Peterson. "We believe this is a pervasive thread which runs through the fabric of this new organization."

Internet Is Set to Overtake Newspapers in Ad Revenue

http://blogs.wsj.com/digits/2010/06/15/internet-is-set-to-overtake-newspapers-in-ad-revenue/?mod=rss_WSJBlog&mod=

The online ad business, excluding mobile ads, is set to expand to $34.4 billion in 2014 from $24.2 billion in 2009, according to the report, which PwC plans to release Tuesday.

Newspapers, meanwhile, continue to suffer from a decline in advertising revenue. According to numbers released by the Newspaper Association of America earlier this year, print advertising revenue dropped 28.6% in 2009 to $24.82 billion. The PwC report estimates that print advertising in newspapers will hit $22.3 billion by 2014.

“Although the Internet did not fully escape the impact of the recession, its decline in the United States was much less severe than that of other advertising media,” the PwC report notes.

Shifts in consumer behavior, potential for inventory on the Internet, and increased broadband penetration in the U.S. are key factors in PwC’s projections, according to David Silverman, a partner at PwC.

Showing TV, and Commercials, on the Shelves and in the Aisles

http://www.nytimes.com/2010/06/16/business/media/16adco.html?_r=1&ref=media

FOR many marketers, advertising in stores is an increasingly important way to influence shoppers at the so-called moment of truth, as they finally make up their minds about which brands of soup, soap or cereal to buy — or not buy. Now, a company is hoping to bring commercials to the retail point of purchase on screens that will be attached to shelves and above aisles.

The company, Automated Media Services, known as A.M.S., has been working for years on a system that would deliver television in retail environments in a way that would allow media agencies to plan and buy commercial time in stores just as they do on the networks, channels and stations watched at home. The system, which the company calls 3GTV, also includes provisions to verify that commercials have actually run.

With Bebo a No-Go, AOL Will Unload the Social Site

http://online.wsj.com/article/SB20001424052748704198004575310782837615268.html#mod=todays_us_marketplace
Ending a failed attempt to capitalize on the social-networking craze, AOL Inc. is close to selling its social-networking site Bebo to a private investment firm at a fire-sale price, according to people familiar with the matter.

AOL is in final talks to sell Bebo for a small fraction of the $850 million it paid for the site two years ago—the latest example of a hot Internet property that faded in popularity before figuring out how to make money.

The buyer is Criterion Capital Partners LLC of Studio City, Calif., according to a person familiar with the matter. The small investment firm has been actively pursuing technology and media acquisitions, this person said. A deal could be announced as soon as Thursday.

Exact terms of the deal couldn't be learned, although one person said it was "an exceptionally uninspiring number" with almost total "value destruction."

Media CFOs optimistic about digital future, says Ernst & Young survey

http://www.marketingmag.ca/english/news/media/article.jsp?content=20100623_153346_7132

To keep up with Canada's changing media and entertainment industry, companies must embrace new digital and mobile offerings while maintaining costs on traditional operations, according to a new Ernst & Young survey.

Three-quarters of CFOs see the development of new distribution channels as an opportunity for growth, with 63% planning to create new products and services to drive revenue. The CFOs forecasted that cable operators and Internet/interactive media companies are positioned to grow the fastest in the industry.

"Consumers are becoming increasingly sophisticated and want interactive content," said Neal Clarance, leader of Ernst & Young's Media and Entertainment practice in Canada, in a release.
"The mobile phone, for example, is becoming the new Internet and home computer, so that one device enables the user to work, play and communicate. New products and technology improvements will continue to drive a shift in consumer desires and behaviour."

According to the survey, consumers are using mobile devices three times more often than they did five years ago. On the other hand, time spent with traditional media, such as TV and radio, is declining. Sixty-six percent of CFOs believe disruptive business models, such as ebooks and mobile content will have the greatest impact on the media and entertainment industry during the next two to three years.

To keep generating revenue from traditional media and entertainment sources, CFOs believe that process improvement (according to 69% of participants) and integrating with other technologies (63%) will help manage costs in the near future.

Clarance believes the advances in digital and mobile capability will create a shift in advertising, to more specific product placement and targeted advertising online.

"Marketing and advertising has traditionally been about how to get the most ‘eyes seeing your product,'" Clarence said. "But now it's more about how to attract the "right eyes."

Still, Clarance said companies have not determined the most efficient way to attract revenue from digital markets.

"The company that comes up with a winning formula is sure to become an industry leader, but in the meantime, a lot of money will need to be spent searching for a solution," he said.

Unilever CMO says company will double digital spending this year

http://www.marketingmag.ca/english/news/cannes/article.jsp?content=20100625_162635_7732

"We are in the middle of a digital revolution,” said Weed, repeating a common refrain this week, though he added: “I think it is even bigger than the most stretchy of visions.”

Sorrell asked what percentage of the Unilever marketing budget is going to digital today. Weed wouldn’t say. “What I can tell you is that this year, we will double our spending on digital.”

However, he also acknowledged there is still more talk than action online. Digital marketing is like high school sex, he said: Everyone is talking about it, fewer are doing it and those that are, aren’t doing it very well.

Sorrell suggested that while digital marketing is good for one-to-one communications, it’s mostly for promotional and tactical purposes.

“Do you think the jury is still out on the effectiveness of digital for brand-building?” he asked.
“I have quite the opposite view,” said Weed.

“The best way to get to a mass audience is through TV,” he said, and that will remain the case for years to come. “I’m going to need fabulous moving picture creative.”

But digital can build brands, he said, citing Ben & Jerry’s one million fans on Facebook. Those are people engaging, sharing comments and talking about your brand. “That is something you can’t do in mass TV.”

Turning to social media, Sorrell again seemed skeptical of some of the excitement. Social media is effectively the modern form of letter-writing, said Sorrell. And because of that users may not want it “bastardized” by marketers.

“When [social media platforms like Facebook] try to monetize it, they have fallen foul of even the most loyal users.”

The letter-writing analogy fits, agreed Weed, suggesting Unilever’s goal is not to insert itself into those conversations, but rather have those conversations include Unilever.

The goal with Axe, for example, is to get guys chatting about the brand and building buzz. “What we are doing in social media is nothing more than that,” he said. “It is word of mouth on steroids.”

Marketwire buys social media firm Sysomos

http://www.marketingmag.ca/english/news/media/article.jsp?content=20100706_170953_660

The Marketwire news release company has acquired Sysomos, a Toronto-based social media monitoring and analysis firm.

Financial details of the transaction, announced Tuesday, were not released.
Marketwire said its acquisition of Sysomos helps the company provide its customers access to and analysis of billions of social media conversations, including blogs, social networks, micro-blogging services, forums, video sites and media sources.

Sysomos, Greek for "everything together," emerged from an advanced research project led by computer science professor Nick Koudas at the University of Toronto in 2005. The company, now headed by Koudas, was incorporated in 2007.

Agencies Roll Up to Form BlueGlass

http://mediadecoder.blogs.nytimes.com/2010/06/22/agencies-roll-up-to-form-blueglass/?ref=technology

Four agencies that specialize in Internet marketing are joining forces in a roll-up to form BlueGlass Interactive.

BlueGlass, based in Tampa, Fla., is being created by the combination of 10e20, Search and Social, Infinitenine and Brent Csutoras Inc. BlueGlass will have offices in four cities and 40 employees working on accounts with billings estimated at $10 million.

Clients of BlueGlass will include Intuit, NBC Universal, Thomson Reuters and Yahoo.
Seven executives from the four agencies are coming together at BlueGlass. Chris Winfield, president at 10e20, will be managing partner and chief marketing officer at BlueGlass.

WPP Chief Says Ad Markets Improving

http://online.wsj.com/article/SB10001424052748704911704575326513992645070.html
Markets have improved across regions though, with the biggest turnaround in the U.S., where organic revenue growth has accelerated, Sir Martin said. The recovery in Western Europe is still slower though and is likely to remain slow for a while, he added.

There are some clouds on the horizon... people are starting to be nervous again," he said, adding however that there are no signs yet that such new fears are impacting WPP's business. "The caution is a good thing though because when there's caution, people do something about it."

Last month, WPP acquired the entire issued share capital of Midia Digital and I-Cherry, two digital agencies in Brazil, specializing in digital marketing and search marketing respectively. "We'll continue to do such things," he said.

Interpublic in Deal to Strengthen London Operations of Lowe

http://mediadecoder.blogs.nytimes.com/2010/06/28/interpublic-acquires-agency-to-strengthen-london-operations-of-lowe/?ref=media

Interpublic said on Monday that it had reached an agreement to buy Delaney Lund Knox Warren from the Creston Group for about $40 million (27 million pounds) in cash.

The 18 best commercials of 2009-10 as chosen by the Cannes ad festival

http://www.realtimecannes.com/2010filmwinners.html

GRAND PRIX WINNER
BRAND - Old Spice SPOT - "The Man Your Man Could Smell Like" AGENCY - Wieden + Kennedy, Portland, Ore. COUNTRY - USA

Media executives see small deals as key to future

http://www.reuters.com/article/idUSTRE6655HU20100706

Small-sized acquisitions and strategic buys rather than blockbuster multibillion dollar deals will be on the minds of the media moguls and financiers who gather at this week's Sun Valley conference.

At the top of their shopping lists will be individual media assets such as TV stations, radio companies and newspapers rather than powerhouse takeovers similar to Comcast Corp's acquisition of NBC Universal last year.

Dennis Miller, a partner a venture capital firm Spark Capital, which has stakes in Twitter and Internet TV company Boxee among others, said traditional media executives are torn between the possibilities that social media presents -- and the risk of a foolish investment.

"They're still conflicted between seeing the post-AOL/Time Warner scar tissue and the realization that 'oh my god, my consumers are in places we never expected, there are 450 million people on Facebook'," said Miller.

How hot is the space? This year, mobile media & technology transactions are up by 188 percent, according to Jordan Edmiston. That includes small acquisitions by Apple Inc Yahoo Inc, Google Inc and Twitter.

"You'll see some mid-size acquisitions of Internet businesses in the hopes that it will help them transform, that one of them will hit big. They will place bets, but they will be relatively small bets," said Jonathan Knee, an investment banker at Evercore Partners.

Goodbye Zig, hello Crispin Porter + Bogusky Canada

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20100708_110653_7260
Zig officially merged with CP+B this morning with Chuck Porter, its founder and MDC's top strategist visiting Toronto to tell staff they now work at Crispin Porter + Bogusky Canada.

The merger was discussed seriously only a few months ago when Macaulay visited CP+B and pitched senior management on the idea. While MDC speaks often of making resources available across its agency network, Zig president Shelley Brown said "nothing is quite the same as feeling like we're part of one agency where you're just calling someone down the hall."

The merger also gives Zig the chance to scale its business up to the international level–something it has struggled with to date. Zig opened in Chicago in 2006 after purchasing local agency Hadrian's Wall. It never seemed to find its stride or a foundation client to build the business around. It broke the surface in 2009 with work for Playboy TV, but projects from the recession-beleaguered bunny brand have since trickled off. The merger means the closure of the Chicago operation.

CP+B doesn't need a presence in the region, so the small office will be shuttered by summer's end. Stephen Leps, who took creative lead at the shop in February 2009, left this past April and is en route to Leo Burnett Chicago. CP+B is now trying to find homes for the remaining Chicago staff at other CP+B offices.