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A DAILY DIGEST OF ADVERTISING AND MARKETING NEWS
tember 3, 2010
New York Times
YouTube Ads Turn Videos Into Revenue
Last month, a YouTube user, TomR35, uploaded a clip from the AMC series "Mad Men" in which Don Draper makes a heartfelt speech about the importance of nostalgia in advertising.

Viewers wouldn't notice, but that clip also makes an important point about modern advertising - YouTube is an increasingly fruitful place for advertisers.

In the past, Lions Gate, which owns the rights to the "Mad Men" clip, might have requested that TomR35's version be taken down. But it has decided to leave clips like this up, and in return, YouTube runs ads with the video and splits the revenue with Lions Gate.

Remarkably, more than one-third of the two billion views of YouTube videos with ads each week are like TomR35's "Mad Men" clip - uploaded without the copyright owner's permission but left up by the owner's choice. They are automatically recognized by YouTube, using a system called Content ID that scans videos and compares them to material provided by copyright owners.

Those two billion views, a 50 percent increase over last year, according to the company, are just 14 percent of the videos viewed each week on the Google-owned site. But that's enough to turn YouTube profitable this year, analysts say. Read More
Wall Street Journal
Samsung Unveils Tablet to Compete With iPad
Galaxy Tab Has Smaller Screen, Similar Features to Apple's Device; Likely Cost Is $200-$300
Samsung Electronics Co. on Thursday unveiled the Galaxy Tab, its take on Apple Inc.'s iPad, as more technology companies trickle into the nascent tablet market.

Tablets represent a potential new source of revenue for Samsung, which is making up for lost ground in the intensely competitive smartphone business.

Rather than sell it directly to consumers, Samsung will rely on its carrier partners to sell the Galaxy Tab, which runs on Google Inc.'s Android software, comes with a cellular connection, and features a seven-inch screen. The tablet will debut in Italy, moving to other markets as Samsung locks in more carrier deals.

Vodafone Group PLC, the world's biggest mobile operator, said it would start selling the Galaxy Tab in most of its European markets and a number of its other markets worldwide in October.

It is expected to launch in the U.S. over the next few months, but the company would only say it was in talks with multiple carriers. The Galaxy Tab is essentially an enlarged version of Samsung's flagship Galaxy S smartphone, which was originally available through AT&T Inc. and Deutsche Telekom AG's T-Mobile, and more recently Sprint Nextel Corp. Read More
Adage
Good CMOs Facilitate Change, but Great CMOs Drive It
Why Persuading Internal Constituents Is as Vital as Creative Ability
Few people who have seen the self-lacerating ads from Domino's Pizza earlier this year can forget them. "Domino's pizza crust to me is like cardboard," says a focus group member in one spot. Crestfallen company executives quote customer comments like "Worst excuse for pizza I ever had," "totally devoid of flavor" and -- my favorite -- "The sauce tastes like ketchup."

A 2009 survey of consumer taste preferences, in which Domino's tied for last place, is often cited as the event that precipitated Domino's mea culpa and its determination to remake its signature product. In fact, an extensive makeover of the brand had begun long before the appearance of the survey. By the time the company's new ad campaign kicked off, Domino's had spent 18 months testing dozens of cheeses, sauces and seasonings.

And what some people may also forget is that Domino's was not performing poorly. When new CMO Russell Weiner joined the company in September 2008 and began a painstaking analysis of consumer insights, the company had posted its 58th consecutive quarter of same-store sales growth. Far from a desperate swing for the fences, the bold brand makeover appears to have been a carefully planned and executed effort that required extensive change throughout the organization. Leading change is difficult, but when there's nothing left to lose, it's relatively easy to get people to follow you in a new direction. But in more ambiguous situations, like that of Domino's, leading change can be far more difficult, especially when the change is so massive. And for a CMO new to the company, the challenge is even greater. Read More
USA Today
New Kindles reinforce e-reader's best-seller status
For all the glitz that surrounds first models of high-profile tech products, it often behooves consumers to wait awhile. Exhibit A: the new Kindle e-readers from Amazon.

Compared with previous models (which I liked), new, smaller and lighter Kindles have better battery life, superior glare-free displays and enough storage for up to 3,500 books. What's more, the new entry-level Wi-Fi-only Kindle costs $139 vs. $399 for the original reader three years ago. A step-up model with both Wi-Fi and 3G cellular wireless is also attractively priced at $189. Both models are on back-order at Amazon.com, with new orders expected to ship by Sept. 17.

Add the 670,000 e-books on sale in Amazon's U.S. Kindle Store - and the fact that you can download them in less than a minute via 3G or, now, Wi-Fi- and the latest devices reinforce why Kindle is the category leader. Most available e-books still cost $9.99 or less. Prices on others have crept up to around $13.

The new Kindles are by no means perfect. Amazon faces competition from Sony, Barnes & Noble (Nook) and others that use similar paperlike E Ink display technology. Hovering over them is the iPad and its sexy, color touch-screen. Read More
Other
AdWeek: Google, AOL Extend Search Pact
The companies have agreed to remain search partners for the next 5 years
Google and AOL have agreed to remain search partners for the next five years.

The two companies today confirmed a five-year renewal of their search ad partnership, which began in 2002. Google will continue to power AOL's natural and paid search results, with the two firms sharing the associated ad revenue.

Plus, as part of the new pact, AOL has agreed to distribute its content on YouTube, Google's massively popular video venue. In addition, Google will now power search on AOL's mobile properties.

AOL CEO Tim Armstrong, who previously ran ad sales at Google, touted the deal in a statement as a victory for the troubled Web portal. "AOL users will be getting a better search and search ads experience from the best search company in the world: Google."

While the deal would seem to provide AOL with some needed stability, the Google search renewal is a blow to Microsoft, which many expected to go hard after AOL's search business as it attempts to build its Bing brand and strengthen its adCenter ad platform. Read More
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