Generate Blog

CANNES, France — Advertising agencies and Internet companies once viewed each other as foes, but are now coming together to harness the potential for online advertising. Like many other segments, online ad spending has slowed from its previous breakneck pace during the deep recession, forcing companies to devise new ways to chase fewer dollars.

Last week, Eric E. Schmidt, the chief executive of Google, and Steven A. Ballmer, his counterpart at Microsoft, for the first time attended an annual advertising industry meeting, the Cannes Lions International Advertising Festival.

With consumers spending more and more time online, analysts say Internet companies and ad agencies have no choice but to work together to develop ways to make money from digital media.

“There was an air of inevitability about it, because of the model not really working yet, and there’s so much content that will be dependent on it working,” said Paul Kemp-Robertson, editor of Contagious, an online magazine that tracks digital marketing trends.

Microsoft and Google, along with rivals like Yahoo and AOL, are looking for growth from new kinds of ads, including online video spots. But they need advertising agencies to persuade their clients to embrace these formats. Many companies are preferring to place ads linked to search engine results, whose effectiveness can be directly measured.

Microsoft made it clear that it wanted to cooperate, announcing partnerships with two leading advertising companies, WPP Group and Publicis Groupe. Yet Mr. Ballmer expressed skepticism about the extent to which advertising could be used to finance an explosion of online content.

Advertising agencies have long been big customers of Google, Microsoft and other Internet companies, shifting an increasing portion of ad budgets online. WPP Group, the largest ad agency owner, spends $850 million a year of its clients’ money with Google, according to Martin Sorrell, WPP’s chief executive. Ninety-eight percent of Google’s revenue comes from advertising, largely from “sponsored links” that appear alongside its search results.

Mr. Sorrell once called Google a “frenemy” of the ad industry, a characterization that reflected the Internet giant’s efforts to move into businesses like media buying, which in the past have been controlled by the likes of WPP. Agency executives also complained that Google remained aloof, spending hardly anything on advertising itself.

Asked during an onstage interview with Maurice Lévy, chief executive of Publicis, whether he even liked advertising, Mr. Schmidt insisted: “We love advertising.”

Microsoft, minus its chief executive, has been a prominent participant at the ad festival for several years, bringing hundreds of employees to the event. It is also a big advertiser, spending $700 million a year, according to Mr. Ballmer. But the breadth of its ambitions — in addition to buying and selling ads, the company owns an agency that creates them — has also caused alarm in some advertising quarters.

Analysts say the rivalry between Microsoft and Google may also play into their overtures to the ad industry. While Google has dominated the search business, Microsoft introduced a new search engine, Bing, last month. It has lifted Microsoft’s share of online searches in the United States to about 12 percent, according to ComScore, a research firm, from 8 percent for Microsoft’s previous engine.

Mr. Schmidt acknowledged that Google had, in recent months, found itself in the unfamiliar position of stumbling on certain projects, including efforts to develop systems for selling newspaper and radio advertising. He said marketers were also lowering their bids for keywords on Google’s search engine, where ads are sold through online auctions.

Google has also struggled to generate significant advertising from YouTube, its online video-sharing service. Mr. Schmidt said he had high hopes for new kinds of advertising formats on YouTube — some of which, he added, were developed through a partnership with Publicis.

That agreement, which has taken shape over the last year, represented the start of a thaw in the previously frosty relations between advertising companies and Internet giants.

Since then WPP has also struck a deal with Google to examine the future of digital advertising.

Last week in Cannes, WPP, whose agencies include Ogilvy & Mather and Grey, Young & Rubicam, announced a separate research deal with Microsoft.

Publicis, whose agencies include Saatchi & Saatchi and Leo Burnett, also moved to balance its partnership portfolio, announcing a broad agreement with Microsoft. The companies said they would jointly develop new kinds of digital advertising for a range of devices, including personal computers, mobile phones and Microsoft Xbox game consoles. They said they would also work on ways to send tailored advertising to individual television viewers’ sets.

Darren Huston, corporate vice president for Microsoft’s consumer and online businesses, described the linkup as “a major step forward in the relationship between our industries.”

In addition to generating new business, he said, Mr. Ballmer intended the partnership to send a signal to Microsoft employees about the benefits of working with the ad industry.

“It’s about the tone at the top,” Mr. Huston said. “What I’m saying, and what Steve is saying, is, ‘Here are some folks we’re going to work together with to crack some code.’ ”

Analysts say there may be another reason for the new friendliness between Microsoft and companies like Publicis and WPP. Microsoft has been trying to sell a digital ad agency, called Razorfish, which it acquired two years ago when it bought the agency’s parent company, aQuantive, for $6 billion.

WPP and Publicis have reportedly been among the potential buyers; both companies declined to comment.

Topic: Bella & Edward, the new Barbie & Ken

Kristen Stewart & Robert Pattinson are two of the most buzzed about actors on our community boards.  Tweens/teens/moms are always reporting on what they’re doing, who they’re dating and of course predicting the evolution of their on-screen relationship in ‘New Moon’.  Well come October, Twilight fans can reenact Edward’s and Bella’s relationship however they want it to unfold when Mattel releases dolls of the two Twilight characters!

Some of our community members have already placed their orders at Toyrus.com but those who can’t wait till October (when the dolls will be shipped) – are already concocting ways they can get their hands on them early (eBay?!)! 

So the question was posed to the community – ‘once you get your hands on the dolls – what will you do with them’?  Out of 318 community members that weighed in, 68% said ‘they will keep them in a safe place, inside the box and just enjoy them from a far– hoping one day they can sell them for big money’.  The remaining 32% (majority of the ages ranging from 10-16) said ‘they will rip open the boxes and create their own version of Twilight’!

Toys companies have had some concern with kids getting older younger and because of this trend, girls growing out of doll-play at a much earlier age.  Could Bella and Edward bring back the activity of playing with dolls?!  If nothing else, it’s safe to say that these dolls will become collector’s items!

Topic: Justin Bieber

Move over Jo Bros, here comes Justin Bieber.  Justin began his following on Youtube, where the 15 year old made a video showing his vocal chops as he sang to Usher’s ‘U Got it Bad’ (http://www.youtube.com/watch?v=zXBAGCPvrqc).  This Canada native got the attention of Youtubers (2.2 million hits)  and the Atlanta native himself!  Fast-forward to today and Justin Bieber is making tween girls swoon…so much that Island Records signed him late last year and his debut album ‘My World’ is set for release in late July.  Our tween girl community is counting down the days till the album drops – but for now, they have his latest video “One Time” (produced by Tricky) on continuous loop.  Oh let’s not forget to mention that Usher makes a cameo in the video! 

It won’t be long before Disney comes-a-callin’!

‘One Time’ Video:

http://www.youtube.com/watch?v=SWTdh8eM_aY&feature=player_embedded

Topic: 100000Fans.com

What do you get when you combine a team of music-biz experts, unsigned artists and music fans/advocates…you get a website called 100,000 fans.  We have seen the power of the internet help bands/artists achieve success via guerilla marketing.  Sites like MySpace, Pollstar, iLike, etc. have all taken part to help fans promote their favorite artists.

100000fans.com houses a small selection of unsigned artists that the founders (music biz experts) think have the goods.  They then put the power in the hands of the fans to support and promote the band of their choice! The site’s tastemakers range from studio engineers to label owners, all who have once worked with major artists from Diana Krall to Blink 182.  Once these ‘experts’ dictate a ‘hot’ act, the band/artist’s album is made available to stream/download (for free), alongside a bio and tools for the ‘fans’ to:

1)      share the tracks (via Twitter/Facebook/email)

- and –  

      2) help the band out financially via PayPal “donations”.  The financial support can be “as little as $2”.    Once the business heads behind the site see a significant user-generated groundswell for an artist, they promise to help further advance their career via partnerships with online marketers and labels – helping expose the band to the general public.   Three artists’ are added every week, so fans come back to see which band they want to help support/promote yet!   10000fans.com is a site totally powered by the people.

Discover & support your new favorite band: http://100000fans.com/

Topic: “Pulse Perfection Vibrating Mascara” by Maybelline

When upscale beauty brands like Lancome and Estee Lauder came out with ‘vibrating mascara’ – beauty addicts every where yearned for the product!  This latest technology was said to apply mascara evenly from root to tip and extend lashes to a length women nationwide craved for!  The only problem was the cost ($30+).  Many beauty mavens couldn’t afford it, so they couldn’t engage in experiencing this new trend!  Well that was then, this is now – drugstores are seeing their first vibrating mascara fly off shelves.  Maybelline has introduced their new Pulse Perfection Vibrating Mascara - available for just $14.99.  Now budget-conscious beauty junkies can check out these “good vibrations” for themselves. The brush vibrates over 7,000 times per minute, adding volume, length and curl, and the battery should last for around 4 months from the first time of use. It’s all about conquering the ultimate lashes…and Maybelline may have just ended the quest!

Why this product is so sought-after:

-      New technology that is visible to the eye (the vibrating brush) and looks like it does something.

-      Maybelline is the brand behind the cult-favorite “Great Lash” mascara product.  So followers of that product will be more inclined to try their new launches within a category (mascara) where their reputation precedes them.

-      It’s relatively inexpensive (half the price of department store brands)
 

Topic: “Thug Life” by Taylor Swift and T-Pain

It’s nothing new to see two artists from different genres collaborate these days, but when wholesome, fun-loving country star Taylor Swift gets her ‘thug’ on with none other than T-Pain – people become perplexed.  The single, called ‘Thug Life’ is a spoof of sorts – poking fun at Swift’s wholesome character (love the ‘T-Swizzle’ references and the  line “No I aint got a gun/ no I never really been in a club/ still live with my parents/ but I’m still a thug.”).  “Thug Life” debuted opened the Country Music Awards and the buzz swelled across the internet soon thereafter. 

There were a few things that made this video buzz-worthy among our Insighter community:

-       It featured one of country music’s brightest and most authentic young stars – Taylor Swift.  When we asked our community about female role models, Taylor Swift made it to the top 5, coming in behind Michelle Obama.  Whereas she’s only 19, tween and teen girls find her well beyond her years and are inspired by her grounded-ness! 

-       T-Pain is extremely talented and popular rap/r&b artist among Millennials.  His collaborations with Kanye, Lil Wayne and Chris Brown and his ability to tap in to his comedic side on SNL and now on the CMA’s – his fans grow more and more interested in what he will do next.

-       The unusual pairing of two very popular, yet very different artists.  Taylor Swift going ‘thug’ is what really made this video so viral. 

-       The CMA mash-up – inviting hip hop to Nashville! 

Topic: Crop Tops

It’s not quite the Britney Spears belly-bearing trend we experienced a little less than a decade ago, it’s more of an 80’s Madonna crop-top trend that’s making its way in to the mainstream.  Start doing those core exercises because the midriff is presenting itself to be the body part to expose this summer. 

We have seen fashion-forward retailers already embracing this trend like Urban Outfitters and H&M – and now our Insighters are welcoming the style in to their wardrobe as well. We have seen fashion take a turn to a time where styles were bold, the economy was tight and people were living life to the fullest.  It was the decade of conspicuous consumption.  It’s not uncommon during high-stress times in society for people to become nostalgic about the past.  Re-living a time that was less challenging is their way of coping with the present. 

Our Insighters made mention to the wardrobe pieces that would pair best with a crop top:

-         Neon accessories (nail polish and jewelry)

-         Worn in jean shorts (with pockets sticking out of the leg)

-         Gladiator sandals

By Janis Guadelli (Generate) 6/25/09

To say that teens are leading the green movement is not only untrue but unrealistic as well. Even though they and their Millennial siblings are known to be the most environmentally educated generation, they’re not assertively taking action on their knowledge. When it comes to brand involvement in green issues, however, they have a nuanced view.To uncover the truth behind this generation’s eco-enthusiasm and involvement in the green movement, Generate Insight surveyed teens between the ages of 13 and 17. Our findings show that there’s a lot to be done before it can truly be said that this generation is at the forefront of the green movement, but there are ways that brands can take action both now and down the road.

Sixty-nine percent expressed genuine interest in the environment, but also admitted to a lack of personal involvement in green-related activities. It became evident this group of youngsters understood the “why” but were unsure of the “how.”

Teens are one of the most highly educated demographics when it comes to the green movement. Eco-awareness is bred online. This generation obtains most of its information from the Web. For brands targeting this demographic, there are seemingly limitless opportunities for engagement on an interactive, organic level in real time.

Indeed, 76% noted the importance of brands being involved in the green movement. This generation of consumers likes to see brands being more responsible and giving back some of their time and earnings to a cause.

But an interesting question arises out of the pockets of this generation: All things being equal, are teens willing to spend more money on a brand that supports an environmental cause? We posed that question to our Insight community members. Teens would choose the less expensive, non-green brand. Their elder siblings, those between 18 and 29, on the other hand, would be willing to pay more for a product if they knew some of their investment was going towards an environmental cause.

This is important information for brands to absorb. If brands want to attract and help younger consumers become more eco-conscious, they need to be mindful of price points. Teens are savvy shoppers and have leaner budgets these days, so “environmentally-conscious” brands/products are not necessarily going to drive purchase — the price-point will.

Beyond price, brands have room to improve how they build awareness of their environmental contributions. Asked to recall specific brands which actively support the green movement, 60% of teens could not identify a single one.

Getting the word out to younger consumers and getting them involved in ecological/environmental efforts will build eco-awareness and consumer loyalty. Brands that were recognized as environmentally friendly included, in order of preference, Greenworks (by Clorox, but “Greenworks” was mentioned more frequently as an independent brand), Seventh Generation, Toyota, Whole Foods, Kashi, Pepsi, Honda, Method and Coke.

How can brands capitalize on these findings?

1. Eco-engage consumers by advising them on how to take action in their environment. Knowing this generation is driven by instant gratification, create contests that get them involved and competing towards making their earth a greener place to live (for example: The Green Effect contest by SunChips & National Geographic)
2. Add to your green branding efforts easy, obtainable and realistic ways to make a difference. (Examples: If every family in the United States recycled their newspaper, 500,000 trees could be saved from being cut down).
3. Teens obtain their green intelligence in the classroom. Brands can adopt a school and convert it into an eco-educational environment and/or sponsor green field-trips.
4. Teens live online. Brands need to designate a section of their websites to environmental efforts (tips, events, games, collaborations, news on the brands eco-conscious efforts, etc.).

• Get involved with branded eco-apps on Facebook (Garnier created an app featuring daily beauty and eco-friendly tips to add to your profile, plus beauty vids and contests). 
• Eco-informative i-Phone apps are a great way to educate and build excitement in going green (“Green Living Guide” – Fox Mobile Distribution’s guide to all things green. Have tips sent to you about simple, eco-friendly actions that make a difference, like switching off your phone’s energy-intensive vibrate mode.)

Teens are well educated, motivated and aware of all things green — and 67% are eager to get more involved and make a difference in the environment. Brands now have an incredible opportunity to build and support the transition of this demographic from merely knowing the “why” to understanding and living the “how.”

Janis Gaudelli is senior vice president and head of Generate Insight, the Millennial-focused market research division of next generation media company Generate. Generate creates intellectual property assets by producing integrated content solutions across all the media platforms that connect the advertising, technology and entertainment communities. Janis previously ran the Teen People Trendspotter network and was an independent youth culture and trends consultant to such companies as Warner Bros., Reebok, Saatchi & Saatchi and General Mills .

By Alex Ben Block, The Hollywood Reporter
June 18, 2009, 07:25 PM ET
  

When Industry Entertainment partner Keith Addis recently went looking to add a talent manager to his company’s roster, he didn’t exactly need to hang a Help Wanted sign.

Industry, which counts as clients some of Hollywood’s top writers, directors and actors, has been flush with employment inquiries lately, especially since the merger of WMA and Endeavor resulted in the layoffs of a host of top talent agents. Addis ended up hiring former WMA motion picture literary agent Sarah Botfeld, but not before she made a clean break from her former agency.

“We’ve been specific with her about what she can and cannot say to those clients,” Addis says. “What she can say is: ‘This is what I’m going to do. I’m excited about the people I’m working with, and if I can ever be of service to you, you know where to find me.’ “

Botfeld is not alone in making the shift from agent to manager. While the industry has been abuzz during recent weeks about consolidation in the agency business, less discussed is the effect these changes are having on a management community that has grown exponentially during the past decade but faces the same industrywide slowdown in job opportunities.

“When I started in the ’90s, there were about five significant management companies,” says Brian Medavoy of the Glenn Rigberg Management Co. “Now there are probably 50 big players. With the WME shakeout, there are a lot of good pieces of manpower that did not make the cut who are now either starting management companies or joining them.”

Aaron Kaplan is one of those newly minted managers. Squeezed out of WMA during the merger, he has started a management/production company, Kapital Entertainment, bringing along many of his TV clients. Nearly all didn’t already have managers, but one, writer-producer Jeff Rake, recently left Anonymous Content to join Kaplan (Rake also departed WME for CAA).

“The business is continuing to change,” Kaplan says. “There’s still a little bit of chaos. Chaos breeds opportunity, and opportunity breeds success.”

That chaos is affecting the already tenuous relationship between agencies and management companies, and between established managers and upstarts. More managers — especially those who used to be agents — mean more competition at a time when the industry is rattled by contraction: fewer movies, lower salaries and greater anxiety about when the next job is coming.

In many ways, the management biz always has been intertwined with talent agencies. Actors, directors and writers began taking personal managers in the 1980s as agencies like CAA grew larger and more impersonal.

“No individual agent would be able to have the personal relationship or give undivided attention to the clients; it just created this opportunity,” says Alan Somers, a personal manager since he left WMA in 1979 and now a partner in Somers, Maudlin and the Rose Group.

By law, managers can offer career guidance, but only agents can “procure” work for clients. In contrast, managers may produce, which always has been a source of frustration for agencies eyeing fat producing fees and backend that managers sometimes command.

In the early years, Somers recalls, SAG franchised agents and, as part of the deal, froze out managers. “SAG had this deal with the agents where they would not favor managers,” he says. “They would say, ‘We only speak to the agents.’ “

But beginning with early companies like Brillstein-Grey during the ’80s and ’90s and newer powers including Anonymous, Untitled, Management 360, 3 Arts and Generate, managers began winning seats at the negotiation table. Having the talent’s ear helps, as does the perception that managers take the long view of a client’s career.

The relationship changed for good in 2002 when SAG was unable to renew its franchise agreement with ATA, which represented agencies. “Now SAG doesn’t police any of us,” Somers says, “and the result has been an expansion of the role played by managers as well as agents.”

Still, Erwin More, a manager before becoming a WMA agent, decided to stick with agenting when he was laid off. He says there are a lot of similarities in the work.

“At the heart of what we do is something absolutely the same,” says More, now with Paradigm. “We’re both representing actors, writers and directors, trying to do the best we can to see they succeed.”

Crucial differences in culture between the agency and management communities still exist. Poaching clients, for instance, has long been a reality for agents but remains relatively rare among managers.

Addis recalls the story of Judy Hofflund when she left agenting at UTA 14 years ago to become a manager at Hofflund/Palone.

“Judy left and called a couple clients and said, ‘I’m going to be a manager, and I’d love for you to come with me,’ ” Addis says. “She got calls that day from the heads of every single management company in town, saying: ‘Judy, you’re crossing the line. If you do it one more time, there’s going to be hell to pay.’ What that meant was we were all going to go after her clients. It made complete sense to her instantaneously.”

Says Hofflund, whose client list includes Kenneth Branagh, Sally Field and Julia Louis-Dreyfus: “That’s true. I am so happy to be away from the poaching culture; it’s a huge relief to me. It’s one of the biggest reasons I like managing better than agenting.”

The seismic shifts in the agency business provide opportunities for managers in other ways.

“As there are changes in the agency world, talent relies more and more on managers to navigate through the thicket of Hollywood,” says Jon Liebman, co-president of Brillstein Entertainment Partners, whose clients include Jennifer Aniston and Brad Pitt. “For good, established managers, the changes make them even more integral to their clients’ lives.”

Plus, clients who might have balked at paying an extra 10% to a manager are more willing to do so now that jobs are harder to come by.

“In an environment where the market is constricting, the need for more hands on deck to get the job done seems more acceptable to clients,” says Anonymous manager Michael Sugar, who reps directors Steven Soderbergh and Gavin Hood.

Managers also have grown in value to clients as deals have grown more complex. A squeeze on the salaries of midlevel actors has cut cash flow, driving clients to ask managers to pursue such new avenues as branding and the Internet.

“Dealmaking has become far more complicated,” says Suzan Bymel, a partner at Management 360, whose clients include Reese Witherspoon, Anne Hathaway and Kiefer Sutherland. “It used to be that actors had their quotes, and their raises were calculated based on the success of their last picture. It has become a much more creative and strategic process that differs with each project, depending upon your financial partners, the underlying material, its commercial viability and the other players involved.”

Managers and agents now work closely with a marketing and branding department to help the company’s talent branch out through ancillary sales, marketing deals with brands and new media.

“The new business model is you’ve got to work harder frankly to get the same things done,” says Sam Gores, chairman and CEO of Paradigm. “Representing people used to be an easier job. You’d make a deal for a client with a major buyer and move on. Today you actually have to be smarter, work harder, piece together movies, financing and elements of TV shows. You have to look at every career — whether it’s an individual or a company — as a brand and not get too distracted by areas where nobody is making huge amounts of money yet.”

Still, the subtext of every conversation in Hollywood is uncertainty about where the representation business is going.

“Everybody is like a submarine with the periscope up, looking for land,” says Joel Gotler, an agent-turned-literary manager at IPG. “If anybody can tell you what is going to happen, they really are geniuses.”

Topic: UEatCheap.com

Everyone is looking to save cash with the current state of the economy, but that doesn’t mean you still can’t go out and have fun.  This is the philosophy Millennials have embraced while living through this recession.  Whereas their disposable income has decreased significantly, they are becoming more savvy when it comes to spending.  Millennials are constantly looking for ways to save money, while continuing to live their fun, active lifestyles.  One website that is allowing Millennials the opportunity to nourish this way of life is U Eat Cheap .  To get in on your local cheap-eats all you need to do is log on to the site, type in your zip code, the search radius and what kind of food you’re craving and the site will create a Google map of restaurants near you that have entrees for $10 or less! 

Going out to eat with friends was one of the top five social activities that our community members were taking part in weekly.  Since the economic downturn, eating out with friends is one of those luxuries many of our community members had to cut back on (begrudgingly).  Not only do they miss the consumption of good food, but during these dining engagements life issues were discussed and important decisions were made.  With a site like UEatCheap.com, they can return to life as they once knew it.