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September 2007 Archives

IAB's MIXX Makes the Blogs!

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blog-header-rr.gifThe Interactive Advertising Bureau's sold-out MIXX Conference & Expo was blogger-friendly this year, and "citizen journalists" had a field day, especially with the on-stage fireworks among agency and publisher executives. Herewith, a wrap up with links:

On the Ogilvy-Carat-Publicis "Showdown"
Gale Executive Recruiting: In the MIXX: The New Strategy: "The Interactive Advertising Bureau's MIXX 2.7 Conference and Expo opened with a bang, as three industry heavyweights squared off in a panel discussion about how best to organize creative and media shops for the digital age. Carat Americas CEO David Verklin came down on the side of full integration. "Digital media has to be the core of every strategy," Verklin argued, suggesting that this could not be accomplished without the top to bottom integration of digital and traditional approaches to creative and media buying..."

Agency Spy:
"Gary Leigh, Chairman and Chief Executive of Ogilvy UK, has some thoughts about the digital program over at the death star agency, which echo Ogilvy co-CEO Carla Hendra's comment during her public spat with Carat Americas CEO David Verklin on the opening panel at IAB’s Mixx Conference..."

On Interactive Industry Consolidation
Revenue Source: Yahoo Unenthused About Google, DoubleClick: Color us with the 'unsurprised' crayon, neither Yahoo nor global advertising power WPP want to see Google walk away with the queen of the ad network homecoming ball.

Insider Chatter: Google to Marketers: Give Us ALL Brand Assets, For Eternity: While Microsoft takes $6 billion aQuantive aim at Google’s ad supremacy, Mountain View is digging in its online advertising heels, eagerly creating a Google stranglehold over brand marketers. In New York City this week, from OMMA to MIXX, all levels of the Googleplex totem poll were represented and all faithfully conveyed CEO Eric Schmidt’s favored notion that the advertising “power law” is in Google’s powerful favor.

IAB's MIXX Makes News!

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blog-header-rr.gifApologies to those of you who couldn't get in to the Interactive Advertising Bureau's sold-out MIXX Conference & Expo in New York Monday and Tuesday. You missed fireworks on multiple topics, from the consolidation activity roiling the ad and media industries to the "business model wars" among agencies. Herewith, a wrap up with links:

Ogilvy, Carat CEOs Clash on IAB Panel: Carla Hendra, David Verklin Spar Over
Agency Structure at MIXX Conference
September 24, 2007
-- Sparks were flying between Ogilvy North America co-CEO Carla Hendra and Carat Americas CEO David Verklin on the opening panel at IAB's Mixx Conference. And no, they weren't those kind of sparks. (Ad Age) (Click here for video)


Single-agency strategy does not fit all, IAB panelists say
New York—In the new age of digital media, marketing strategy needs to be orchestrated, but agency executives on a panel Monday morning at the Interactive Advertising Bureau’s MIXX Conference & Expo 2.7 diverged on how to find the perfect harmony... (BtoB)

Yahoo, WPP join Microsoft in questioning Google-DoubleClick merger
Microsoft isn't the only one questioning whether a Google-DoubleClick merger would be good for advertisers and consumers. During a panel on The Changing Landscape at the MIXX 2007 Interactive Advertising Bureau (IAB) conference in New York on September... (ZDNet)

The Advantages Of Consolidation
September 24, 2007 - Just made a quick sprint from OMMA’s Ad Week conference at the Hilton New York to the MIXX 2.7 Conference at Crowne Plaza Hotel to hear the NY Times’ Saul Hansell moderate a panel consisting of participants in the past year’s interactive ad agency buyouts, including executives from DoubleClick, 24/7 Real Media, Right Media and aQuantive unit Atlas. Hansell started out asking what the benefits of their respective combinations will bring to both companies that couldn’t have been achieved separately and moved on to survey the panelists as to whether regulators should approve the pending $3.1 billion merger of Google (NSDQ: GOOG) and DoubleClick... "(Paidcontent.org)
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How are politicians using Web. 2.0? At our political marketing panel at MIXX, Arianna Huffington -- author, political candidate, and the provocative founder of the online site The Huffington Post -- reported that they are not. Many of the digital efforts the candidates announced with fanfare earlier in this campaign have disappeared, two Huffington Post reporters have found.

"The Edwards campaign started to do that -- hired somebody who was going to do webcams," Ms. Huffington told the crowd at the Crowne Plaza Hotel. "The idea was, 'We’re not only going to capture Edwards when he’s coiffed and ready.'" Now, her reporters discovered, "These weblogs can't be found anywhere. The campaigns have scrubbed them from the Internet. After tremendous effort we were able to find one of them. What happened? Were these efforts to make candidates more authentic really dangerous? Why did they take them off the Internet?"

It was but one newsworthy finding exposed by the panel, which was expertly moderated by Slate editor-in-chief Jacob Weisberg. Political marketing, for decades, used to lead product marketing. Many contemporary commercial marketing techniques, notably the mobilization of zealots at the grass roots, migrated from politics into the commercial space. That migration has reversed.

"The perspective of a lot of the folks running the campaigns is not of the Internet," said Rob Shepardson, founding partner of the SS+K ad agency in New York, and an advisor to the Obama campaign. "I'm not sure this is the Internet election. There's been nothing terribly innovative so far."

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Interviewer extraordinaire Charlie Rose interviewed Seth Godin, the first management guru of the interactive era, to open Day II of the 2007 MIXX Conference & Expo. It was the ultimate MIXX -- the video chronicler of thought leadership together with a man who says the era that allowed Charlie to thrive is over. And the crowd was enthralled for the entire hour.

One thing I'd like to say about Seth: I've known him for about eight years, and there is not a time I've gotten together with him that I haven't walked away with an actionable idea that I put into play -- and which improved my life and my business. He is a walking encouragement to try new things. And when you make the leap, you benefit.

IAB Live MIXX Blog, Day 2

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9:00 a.m.


Good morning and welcome back to the IAB MIXX Conference! Once again, my name is Chris, Marketing Manager for the IAB. Given the conference is sold out, this is an opportunity for those who couldnt make it can get a peek of MIXX from my perspective, that of a first-time attendee. The room is jam packed and theres a huge buzz as we await our second keynote — Charlie Rose performing a special interview of renowned author Seth Godin. Stay tuned for more updates and photos throughout the day. Plus don't forget to tune into www.RandallRothenberg.com for more special commentary from IAB President and CEO Randall Rothenberg.

A Consolidation MIXX-Up

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There were fireworks on stage during the second panel of the day at the IAB's MIXX Conference. For the first time ever, we brought on stage the leaders of four of the largest, recently announced acquisitions: David Moore, chairman and CEO of 24/7 Realmedia (acquired by the WPP Group); Karl Siebracht, president of Atlas (whose parent company, aQuantive, was bought by Microsoft); Mike Walrath, founder and CEO of Right Media (acquired by Yahoo); and -- pictured here -- David Rosenblatt, CEO of Doubleclick (being acquired by Google). As moderator Saul Hansell, the New York Times technology writer and blogger, noted, "That's $10 billion of market value in one place."

What does $10 billion of market value do in a conference room? Promote, attack and defend. The four leaders disagreed on whether Google's acquisition of Doubleclick is a good thing; whether automated advertising exchanges will help or hinder marketers; and whether media companies acquiring ad networks are too self-interested for their own good.

But they agreed on one thing: That consolidation -- certainly their own consolidation -- is good for everyone.

"I see more and better innovation coming faster," Mr. Rosenblatt said. To understand all these deals, the word is liquidity. If you ask advertisers about their bigger challenges in moving dollars from offline to online, its the absence of standards; it's ability to target; and it's the need for lower prices across a wider range of media products."

With consolidation, he argued, "You're ending up with four or five pools of inventory or liquidity, and that liquidity allows these problems to be solved. Like the stock exchange. That’s the problem all these companies are pointed out."

Although his co-panelists agreed, none was willing to step forward when Mr. Hansell asked how many supported Google's purchase of Doubleclick. Ever the Timesman, the moderator became more direct in his questioning. He turned to Mr. Siebrecht and asked, "The bad thing we should all be afraid of is...?"

"The quick way to answer," the Atlas president replied, "is there are implications to market concentration in any market... if one player gets too much control and has the ability to extract rents."

Mr. Rosenblatt looked at the crowd. "There's no irony in this at all."

But there was: His own.

Digital Is the Fulcrum

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blog-header-rr.gifCarat CEO David Verklin put an early exclamation point on the morning's conversation at the 2007 AB MIXX Conference & Expo. "I think for traditional media to thrive in the future, digital has to be at the core of the strategy," Mr. Verklin told the packed room at the Crowne Plaza Hotel in midtown Manhattan. "The market has shifted so much, so rapidly. We need to come to a place where we do the communications plan first. The hottest word in the advertising business today is 'media mix.' The media plan of the future will be more complicated. And digital has to be the core of the strategy. More and more, we’ll be taking things like television and driving consumers to the web site.

"I’d argue to marketers in the audience today" Mr. Verklin added, "that you’d actually want to drive them web site before you drive them retail."

MIXX Opens: Collaboration is King

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blog-header-rr.gifAmerican Express CMO John Hayes opened the IAB's third annual MIXX Conference & Expo with a message that underscored last night's post. "The key element of the framework we use at American Express is recognizing that the world is in the middle of an ongoing conversation," Mr. Hayes said... In order to enter the conversation today, you must work in an open environment, you must collaborate."

That's the theme of MIXX 2.7 -- and, indeed, the operating strategy for the Interactive Advertising Bureau. As I posted last night: In an always-on, digital, interactive communications environment, marketing value – now and forever – derives from the “mixx” of strategy plus channel plus content. And that, in turn, requires new forms of collaboration among marketers, agencies, and media companies.

The first panel of the day agreed. "We’re moving into an age of facilitation," said Rishad Tobaccowala, CEO of Denuo and Chief Innovation Officer of the Publicis Group. Clients want companies that are collaborative, iterative and always learning." (To laughter, he described DeNuo as "misfits in toyland – 15 of the wierdest people we could find." He also said its the most profitable part of Publicis, which allows them to hire the best talent.)

David Verklin, CEO of Carat Americas, told the audience that the importance of collaboration was the reason he tore down the walls in his agency and united its North American unit and its digital unit. "We saw the rise of RGA, Avenue A, others. Our two agencies, our offline agency and our online agency, collaborated really well. But at the end of the day you could only take it so far as two separate companies… Clients were saying, 'You proved it to me. Now, we want you to manage the business as one, for us.'

"Ladies and gentlemen," Mr. Verklin told the sold-out crowd, "when you have two separate agencies, its not integration, its synchronization."

Carla Hendra, co- CEO of Ogilvy North America, agreed. "At Ogilvy, we have had for a long time a business strategy called '360-degree brand stewardship.' Digital has just made that strategy more seamless and more appropriate."

IAB Live MIXX Blog, Day 1

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9:00 a.m.


MIXX Attendees

Good morning and welcome to the IAB MIXX Conference! My name is Chris, Marketing Manager for the IAB. Given the conference is sold out, this is an opportunity for those who couldnt make it can get a peek of MIXX from my perspective, that of a first-time attendee.

Right now there's a great buzz in the room. The general session room is slowly filling up in anticipation of John Hayes, CMO of American Express, taking the stage. Stay tuned for photos, updates and commentary as the day goes on. And, please post your comments, questions and observations below. Remember to hit refresh as the day goes on and for more MIXX thoughts, visit IAB President and CEO Randall Rothenberg's "clog" at www.randallrothenberg.com.

The lights are going down. Stay tuned for more!

MIXX MESSAGES

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The Interactive Advertising Bureau’s annual MIXX Conference & Expo – dedicated, with a little linguistic handiwork to Marketing Innovation and eXXcellence -- is a two-day cavalcade of 100 digital stars. But it has a single theme, which I’d like briefly to explain and explore:

In an always-on, digital, interactive communications environment, marketing value – now and forever – derives from the “mixx” of strategy plus channel plus content. And that, in turn, requires new forms of collaboration among marketers, agencies, and media companies.

Let’s parse that statement, starting with the concept of marketing value. It’s a commonplace that for much of its first century, advertising’s worth was essentially unknowable. “Does advertising increase demand for a given firm’s products?” asked Harvard Business School Professor Neil Borden in his classic 1942 text, The Economic Effects of Advertising. “Indeterminate,” he concluded. Does it preclude price competition? “In no case,” he wrote. So for all its supportive research, advertising in the 20th century was largely a “faith-based initiative,” as I and Booz Allen Hamilton consultants Chris Vollmer and John Frelinghuysen wrote a few years back:

…With ad agencies and clients alike believing it worked best when it raised awareness of brands and goods across a large swath of a target population, with success calculated using various survey-based input measures, such as page impressions; cost-per-thousand viewers or readers; and gross ratings points (GRPs), an indicator of audience size. Volume was the highest value. Rosser Reeves, head of the Ted Bates ad agency, voiced the prevailing view this way in 1960: “If 90 percent [of the audience] do not remember it, the story is not worn out.”

This center could not hold, for many reasons. As the U.S. economy matured, then fell into repeated rounds of recession and recovery, corporate owners – which came to include most of us, with our 401k’s and IRA’s – demanded greater and greater returns on invested capital; Finance Departments accordingly marched through corporate units demanding accurate calculations of return on investment. Real estate, sourcing, logistics, and human capital fell under scrutiny. It was only a matter of time before marketing expenditures were held to the same standards as all the other functions.

As this was occurring, the first round of advertising agency megamergers started taking place, exposing for the first time the enormous profit margins agencies earned from their clients’ ignorance. When in 1986 the U.K.’s Saatchi brothers bought The Ted Bates Agency – fittingly, the agency built on Rosser Reeves’s theories of repetition – Bates’s chairman and CEO, Bob Jacoby, personally pocketed $111 million. The windfall clearly exposed the entire agency business. "We may stand today looking more like hucksters than when Frederick Wakeman wrote the book more than 25 years ago," lamented the president of the American Association of Advertising Agencies, Leonard Matthews.

Into this rising demand for ROI and accountability rode the Internet, with its promise to banish advertising unknowability and waste. “The Net is accountable,” I wrote in Wired in 1999. “It is knowable. It is the highway leading marketers to their Holy Grail: single-sourcing technology that can definitively tie the information consumers perceive to the purchases they make…The new media technologies, by drastically reducing production and distribution costs and making possible almost continual and instantaneous refinements in message, promise to increase the efficiency of accountable advertising so that its widespread adoption, not as an ancillary medium but as the primary communications choice, becomes inescapable.”

There Is Too Honor Among Thieves

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blog-header-rr.gif Advertising Age publisher Scott Donaton informs me that he developed the concept of a "Clog" three weeks ago. Since the pixellated evidence is there for all to see (and since he was my overly indulgent editorial
overlord for about a decade), I give credit where credit is due.
Besides, the man is not only a creative genius -- his company is a
member of the IAB.

VCU Adcenter's Interactive Moment

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If you’re a fabulously successful interactive entrepreneur whose last six startups have made a killing in the market and you’re looking for a new place to park some cash, Mike Hughes wants your money.


Admittedly, that sounds somewhat odd, for Mr. Hughes, the longtime President and Creative Director of The Martin Agency in Richmond, Virginia, is highly successful himself. His advertising agency helped launch the ad industry’s Second Creative Revolution in the 1980’s and has been on a tear ever since. Martin’s latest triumphs include its stewardship of the renowned Geico insurance account, and its win (after a controversial and protracted review process) of the Wal-Mart retail account.

Nonetheless, Mr. Hughes wants to pick your pocket -- for your own good: He wants to establish the world’s first endowed professorship in interactive advertising at Virginia Commonwealth University’s Adcenter, the first accredited graduate program in advertising to combine academic study of business-communications strategy and brand management with a creative program for art directors and copywriters.

“We’re really trying to teach the next generation of industry leaders, and interactive is by far the fastest growing part of that,” Mr. Hughes, the chairman of VCU Adcenter’s Board of Directors, told me during a recent visit to Manhattan. “There aren’t enough people with experience in digital advertising. It feels to us there should be a program at the Adcenter built specifically to make that happen – to improve education in this area, from media to creative to strategy to brand management. And right now is the time, while the rules are still being written.”

The enthusiasm of Mr. Hughes and his Adcenter colleagues for interactive and its opportunities is of no small import to marketers, agencies, and media. The Second Creative Revolution led by agencies like Martin, Chiat/Day, Wieden + Kennedy, Fallon, Goodby Silverstein, and others transformed the ad industry by making advertising culturally relevant to a rising generation of consumers. Their rebellion regionalized -- and then globalized -- a business that theretofore had been New York-centric. That combination of decentralization and postmodern edginess, in turn, drew new creative energy into agencies at a time when maturing consumer businesses in the U.S. desperately needed to shake up the way they marketed products and services to fragmenting, jaded audiences.

But during the first decade of the interactive era, the agencies that defined this Second Creative Revolution had their sights trained largely on traditional media. That the shops that imagined their way into the signature campaigns of the 1980s and 1990s are now innovating their way into interactive promises a new creative surge in marketing – and even more intimate levels of engagement with consumers.

“Creatives today have a facility with technology -- they don’t need to think about the technology to use it, while for my generation, it doesn’t come naturally,” said Mr. Hughes. Fifty-nine years old, he is a second-generation ad man; his father was a production manager, back in the days when writers wrote copy, handed it over to art directors for a layout and an illustration, and then trafficked it to production heads who would supervise photography, typography and the other components of realization.

“What the new generation of creatives hasn’t necessarily learned,” Mr. Hughes continued, “is how to engage as deeply as we did."