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Issue #12, July 20, 2010Top
The Digital Front  
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DigitalAdSavvy
An Intelligent Look at Interactive Advertising and Media
In This Issue
Consumer Co-Creation
The Digital Front
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Bucking the Campaign
FeatureA Trend to Watch: Consumer Co-Creation
By Kendall Allen
We talk daily about the greatly changed role of the consumer in marketing and media. In a sense, there's no turning back ­ as marketers embrace strategies, executions and innovation that puts the consumer in the driver's seat from here on out. Search hinges on consumer demand; Social perpetuates consumer influence. Marketers are harnessing this dynamic to drive brand advocacy, engage interactive story-telling, handle customer service and even inform product development.
HeadlineBulletinBoardFrom the Frontlines of Digital
In every newsletter, we will share links to articles and headlines of note across the following areas we consider essential coverage, with our thoughts on why they are required reading.
consumerConsumer Insights
The news has looked good for some time, as we've kept our eyes on resurging ad spends. Now, we just may be getting on to great. eMarketer reports a return to double-digit increases, with the clip expected to maintain at over 10%, as the next several years progress. Take a look at the details, including online's rates of increase being much more interesting than what we expect out of other media.
Double-Digit Growth Again for Online Ad Spend - eMarketer
MilestonesMedia Milestones
Turner is turning up its game, getting more into the thick of it, as it takes over large areas of key operations within Time Inc. Optimal monetization is serious business, so we feel it's essential to keep an eye on how entities are dividing and conquering within partnerships and deploying their sales forces against any given property. This piece provides a close look at some of the strategic shifting of resources in the Turner and Time Inc. combination.
Turner Sports Aims to Rev Up Sports Illustrated's Lackluster Online Ad Sales - ClickZ
DigitalDigital Creative
As we more fully embrace our multi-screen world, both as consumers and media creatives - we recognize that there's a lot that goes into getting it right from a user-interface standpoint. We've talked about this a lot when it comes to the mobile landscape UI and creative specifications. Now, here, we share an interesting read on those challenges and how they manifest in the Digital out of home (DOOH) space. The medium is making headway but creative standards are still struggling. The medium's capacity for impact, brand presentation, stopping power and re-call are high, so it's worth keeping an eye on creative progress in this area. Creative will need to catch up to the promise in order for the medium to truly deliver.
DealsDeals of Note
Significant deal-making in a space we continue to watch for break-away action is always worth a read. Mobile continues to heat up with new market entrant inMobi just closing its second round of funding at $8 million. We like this deal, as it indicates traction on two important paths: networks and mobile. With a global footprint and Kleiner Perkins --behind it, inMobi is worth our attention as a player, as we watch the space.
MobileState of Mobile
With stats like those indicated in this article ­- 4X increases in mobile ad spending paired with smartphone penetration figures ­- we can assume the coast is clearing for mobile marketing. As marketers have waited for the mobile infrastructure to mature, creative specifications to emerge and campaign management options to become more readily available and reliable - ­these trends have been some time in coming. With advancement in all these key areas, and scalable mobile simply becoming more attainable to marketers ­we like to think the market is hitting its stride.
Mobile Display Ads To Hit $1.2 Billion By 2015 - MediaPost
VideoVideo Evolution
Because we are media executives and also avid media consumers ­- it's easy to fall into "focus group of one" when it comes to popular opinion on ads in video. So, it's good to keep honest by keeping an eye on the stats. As it happens, eMarketer reports that a majority of consumers find in-video ads on par with television ads and don't find them objectionable. Whether they're compelled by them to purchase is another topic entirely. But, these are key stats.
55% of Online Video Viewers OK with Web Ads - eMarketer
PublisherPublisher News
Yahoo and Zillow have firmed up their partnership and together will essentially be forming the largest real estate network. Talk about harnessing assets. From an audience opportunity and robust monetization standpoint this is a big development worth understanding. This is a quick look at what this property will entail that is a must-read for anyone on the sell side.
Yahoo and Zillow Solidify Partnership, Creating Large Real Estate Ad Net - ClickZ
SocialSocial Media
We always like to throw in a little reality check. While we continue to marvel social media for its ability to cultivate audience and drive impressions volume ­- we remind ourselves that the sphere is still behind on monetization and the pricing of inventory. The question remains on whether the lower valued CPMs we see in the social media space will adversely impact the ad economy at-large. This article implies that this will happen ­- that it's just that dire. See what you think.
Social Networks Sink Online-Ad Pricing - Advertising Age
OtherArticlesOther Articles
This week's focus is on Augmented Reality. All three articles below are worth reading. Be sure to check out the YouTube link in the FastCompany article!
 
PointRoll, Oddcast Let Consumers' Faces Unleash AR Experiences - MediaBuyerPlanner
FeatureContinuedBucking the Campaign
A Trend to Watch: Consumer Co-Creation
By Kendall Allen (continued from above)
 
On the product front, a newly watched trend caught our eye this week that reflects major traction on consumer involvement ­ essentially a trend within a trend. The trend is customer co-creation. Venture Beat recently did a detailed round-up of these initiatives and some of the numbers behind them ­- nicely framing a space to watch. Major brands are seeing increasing portions of their revenue generated by co-created products. For example, Nike has been doing it for a long time with their "build your own shoe" web-based application. But, now that business is now reportedly over $100 million.
Nike no longer stands alone on this type of initiative.
 
In essence, numerous enterprise brands and e-commerce market leaders have begun combining customer co-creation with social media tools so that customers can share creations within their social media environments. Dell.com and Glaceau are also among them. Earlier this year Glaceau launched an endeavor to have consumers help define a new flavor. Companies like Blue Nile are leading the market on allowing consumers to design their own diamond rings. 
 
Taking a look at additional activity, including those players highlighted in the Venture Beat piece, we see co-creation marketplaces for designers that offer tools and e-commerce infrastructure; jewelry and car companies getting into the space; and the cropping up of co-creation startups. Facebook is even getting into the action. Now that our commerce infrastructure is at a certain point of maturity, now that there's greater awareness of what kinds of tools sets and applications are required, and with social media at its hilt ­- the possibilities are almost infinite for this space. The continuation of this trend expands the conversation about how content, social and shopping play together within the marketing plan. It's a conversation that we consider critical to well-monetized, consumer-led marketing and media.
 
 
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