22 year old billionaire

Mark Zuckerberg never graduated from Havard University. In fact, in 2001 he created quite a ruckus there by hacking into the database mainframe to retrieve student information. He reposted this information on a website he designed in a type of "Hot or Not" grading experience. This underground site aggregated 450 visitors in 4 hours. Havard found out about his hacking and yanked Zuckerberg's internet connection.

Mark Zuckerberg is the owner and creator of an internet company valued at 1 Billion dollars. At 22 years old. Zuckerberg left Havard and created Facebook. You know Facebook, right? Social Networking site that owns 1% of all internet time? Number 1 Photo Sharing website with 6 million pictures uploaded daily?

Yeah. You Do.

What few people know though, is that Mark Zuckerberg is no ordinary internet mogul. Zuckerberg isn't in it for the money, at least not solely. This fact was proved when Zuckerberg turned down a buyout deal from Yahoo! rumored to be valued at 1 Billion dollars. That's almost double what MySpace accepted from NewsCorp last year.

Zuckerberg, it seems, is working for a dream: the free exchange of information over the internet. Facebook first goal is not to make money- it's to create a new type of media.

Zuckerberg is hardly greedy; benefits for Facebook employees include 3 catered meals per day, free laundry/dry cleaning service, 401k medical & dental, and a $600 stipend for housing. Needless to say, his employees are extremely satisfied in their surroundings.

Since beginning Facebook, Zuckerberg has faced one huge challenge- making it relevant to age groups outside the 18-22 year old college bound. Zuckerberg has since opened facebook to everyone- first only to High School networks, then to corporations, and now the general public. Facebook is still different in that it groups people into their specific networks rather than one giant "6 million person" network.

The road to glory has been paved with a few thorns, though, mainly in the form of the News Feed. In September 2006, a new feature revolutionized Facebook forever. Permanently and irrevocably installed on your home page, the news feed alerted you to any and all profile changes made by any of your friends. For instance, one receives a message every time "Billy Smith is single" or "Kate Lynch has added puppies to her interests". The new feature was met with an uproar from students and over 700,000 students joined the "Official Petition Against the Facebook Newsfeed" Facebook group. Suddenly, the students displeasure at the invasion of privacy was a national story with coverage by the New York Times and CNN.com. While the feed was not removed, privacy controls were soon put into place by an apologetic Zuckerberg. In an open letter to the Facebook community posted on the Facebook blog, Zuckerberg said "We really messed this one up".

This is the tale of the newest Web 2.0 rock star. From Harvard drop-out to billionaire, Zuckerberg has chosen to remain with his initial intentions rather than monetary needs.

Intel+Google= An Unstoppable Force

Intel and Google have joined forces to create "virtual storefronts" for small-medium sized businesses. The storefront opens May 1 and will help the chip maker's reseller partners coordinate with it and buy online advertising from Google. The marketing tools allow for simple marketing buys. The program allows the resellers to dip into co-op money from Intel, eliminating out-of-pocket, often reimbursed, expenses.

One of Google, Inc. 's goals for 2007 was to increase its ad base and this type of merger allows for it. This month has been great for Google ad buying. In the past month, Google announced its intent to acquire ad-placement giant DoubleClick; struck a deal with Clear Channel Radio to sell ads on its radio stations; and partnered with EchoStar to sell TV commercials over the satellite broadcaster's Dish Network.

Here is some more information about Google's recent actions:

DoubleClick
DoubleClick is a powerful ad-server, responsible for placing millions of ads online. If Google does purchase it- Yahoo and AT&T are filing petitions against on grounds of monopoly- it will only add to Google's size, and diminish any possible competitor.

Clear Channel Radio
Clear Channel and Google signed a multi-year deal that will allow Google to air 30 second ads from its purchased Audio Ads on 675 Clear Channel Radio stations throughout the country. This move will make Google's Audio Ads that much more valuable to advertisers.

EchoStar
Google will monitor, analyze and report on advertisements for EchoStar, and using the data gathered, will determine how and where advertisements are placed. This will change the ad-buying system to one of specific target markets using Google and EchoStar's differing technology.

Adscape
Google purchased video game advertising agency Adscape and has announced plans to include purchased advertising in video games. The purchasing amount was rumored to be around $23 million. This follows Microsoft's purchase of another video gaming ad firm, Massive, Inc., earlier this year.

Maintaining Self-Righteousness while still making Money

Nine Inch Nails. A band who has built their name on fighting the establishment. They don't care if you like them or their music. On the other hand, they still want to make a living.

NIN new record, "Year Zero" is a concept album centered around the end of the world. Trent Reznor, lead singer, has utilized cross-media integration, social networking and Internet media to create buzz and generate excitement for a record that most people will never hear and slightly fewer people will even enjoy

"It all started with a concert T-shirt that came out in February. The T-shirt featured a hidden code driving fans to a Web site called "I am trying to believe." Following the launch of the Web site, USB drives with "leaked" songs were found at bathrooms in concert venues. Encoded digitally in some of the leaked songs as a spectrogram were images and phone numbers, all of which detailed a mysterious hand or wiretapped phone calls and other secret phone numbers revolving around the topic, as well as leaked bits of the first single, "Survivalism.""

Following these "leaks," a trailer for the record emerged online, followed by leaked songs being played on radio stations in the middle of the night, and the beginnings of a press junket for Reznor, where he described the artistic elements surrounding this next release.

The integration of this promotion is the most intriging. It's beyond integration- fans have been experiencing NIN since before the record was even released. The most interesting aspect being that NIN was able to remain true to its fans- no Myspace banner ads required. NIN truly understands what its fans will respond to as shown with this marketing.

Media Post Article
Wikipedia Entry


-AdvertisingLHath

New Blog

This Blog will now serve the purposes of a second class: Marketing on the Internet. I will again be posting interesting articles and resources for the rest of the global society to pilfer at will.

PS- It's REALLY cold in Ithaca. Like asking God for forgiveness while you walk to class cold!

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A Manifesto

As a requirement of our assignment, we are to write a summation of what we have learned for the past (10) weeks.
Unfortunately, I'm not sure if I can draw conclusions from only what I've written here in my blog- mostly because a majority was written in one night. Try to think of my lapse in homework duties more as a nostalgia for the days of college.
I will however tie in what I've written with articles I've read and did not comment on. When I first came to Ithaca, I was one of the second class of incoming Integrated Marketing Communications majors. At my orientation, there were three of us. I honestly had no idea what I was doing and I even questioned if the college hadn't brought me here for an illegitimate purpose.
In the past two years, I have not only developed a personal understanding of the meaning of integrated marketing, but a passion for it. The selection of classes I have been exposed to, though sometimes frustrating, have given me new perspective on what I want to do when I leave the school.

As you can probably see, my first post is about TiVo and is mostly opinion. There is no hard data involved and I would like to prove my theory with some numbers. In February 2005, TiVo Inc. announced that it had hit it's 3 million mark of cumulative subscribers. With almost 300 million Americans owning televisions, it's astounding to believe that anyone thinks it's a threat. The real threat to advertising effectiveness is clutter and the development of human immunity to ads. That's right- a human immunity to ads created after seeing millions in a lifetime.
We also talked about sports sponsorships- in the Olympics and in International Tennis. While Wimbledon touches on an important feature of advertising- globalization- I would like to focus on one of the original advertising geniuses of our time: Nascar.
Imagine, 50 drivers racing around a track at a sport that brings millions to watch both live and at home. Thats hundreds of sponsors- from major players like Budweiser to the local sponsors that are usually small, 6 x 3 inch stickers on the side of the car. This is a sports sponsors' dream that has been largely ignored by the greater advertising community.

Thirdly, I think it is important to question why some have stayed far away from the profitable trend of product placement. Product Placement is quickly becoming the only viable option of getting brands on television. Toys for example, must walk a very fine line. A few years ago, there were major lawsuits against toy companies for creating advertising that made their products appear lifelike and gave them powers they didn't actually have. Using product placement too heavily could lead to more misunderstandings among children about what their favorite toy can actually do. The Childrens Advertising Review Unit (CARU) was set up to keep tabs and take complaints about unethical advertising.

Spending the past two years reading and learning about these issues has caused me to create a new belief about my major. I am studying marketing in an effort to make it more creative, more effective, and ethical.

Product Placement is HUGE! -except for toys...

Interestingly enough the industry which has gotten the most flack for absurd childrens marketing, the toy industry, has largely been left out of the product placement phenomenon.

According to Nielsen Product Placement, there were 69 occurences of toy product placement from September to March 12th of that year. In comparison, as I mentioned earlier- Apple had over 250 in one 4 month period.

Sara Rosales, Mattel's VP of communications offers an explanation. "There aren't that many shows focused on families. You can't place a product where it doesn't belong".

Another reason mentioned in the article calls upon the ethical dilemma in marketing in such a way to impressionable children. It's possible that companies are gun shy after being targeted so harshly in the past two decades for their tactics.

In Product Placement Game, Toys Largely on the Sidelines- Jim Edwards- Brandweek- Apr. 3rd, 2006.

Cape Cod meet Wimbledon

The sports equivalent of product placement is often termed a sponsorship. A few weeks ago, Polo Ralph Lauren signed a contract to design a set of court clothes for officials, ball boys and girls, as well as linesmen at the British tennis tournament.

This is the first time in 129 years that there has been designer clothes created for the ball handlers and frankly, it leaves a few wondering why such a quintessentially American designer was chosen.

As the official outfitter for Wimbledon, Polo is also releasing a limited edition line in its stores entitled The Polo Ralph Lauren Wimbledon Collection. The clothing designer is to be the outfitter for all future Wimbledon events through 2010.

Pontifical Product Placement

Apparently, the Pope Benedict XVI likes his nice things. And advertisers are eating it up.

Whatever he's wearing, be it shiny shoes or designer sunglasses- marketers feel that being seen with the Pope scored more points than Britney Spears. Of course, it's not really possible to sign million dollar contracts with the leader of the Roman Catholic Church, so companies are playing it cool- sending samples of their product. Should it end up on CNN, all the better.

The Wall Street Journal wrote an article which inspired the above blog post, stating a few more items from the holy closet. The Pope has been seen wearing Serengeti-branded sunglasses, red loafers from Prada, and an Ipod Nano engraved with "To His Holiness, Benedict XVI". The pope is unable to solicit donations and brands are exceedingly careful in their attempts to benefit from his fashion choices- it could appear opportunistic.

And again- the more important question: What kind of music is on his ipod?

Not Just for Texting Anymore

In an industry thats constantly looking for the next big thing, a small but influential group of insiders are demanding that the next wave of product placement is already in the hands of millions of people as we speak.

Cell Phones. Ipods.

They're everywhere and are being used for more purposes. I personally cannot live without my calender and alarm features without which- I would never go to meetings.

These two pieces of equipment are already becoming more advanced, including video and picture capabilities. It isn't inconceivable that eventually Apple will begin to attach product placement specially to their downloadable shows. Advertising is also making its way to Cell Phones and will be aided by the new trend of downloading ringtones.

Another bonus for marketers- because mobile technology is unknown at this point- chances are the price to advertise on phones and ipods will be cheaper than the standard 4 million buy on The Apprentice.

Apple Rejects Notion that They Pay for Placement

5% of computers in America are Apple brand.

Someone from a foreign country would probably put that percentage much higher if they got their information from watching Hollywood. It seems that Apple is featured as product placement at a much higher frequency than exists in real life. 24, Sex and the City, The Office, CSI, CSI:NY, and Las Vegas all featured Apple brand products in their shows. A recent Nielsen Media Research report found that Apple was used an astronmical 25o times in the past four months on prime time television.

The only discrepency in all this? That Apple denies paying for placement. According to insider Tim Bajarin at Creative Strategies, Apple was one of the first technology firms using paid product placement and hired a firm to find opportunities for them. Apples usually create notions that the characters using them are creative. In some shows, there are different brands used for the good and the bad guys.

The fact is, Apple is becoming more linked to Hollywood since owner Steve Jobs joined the board of the Walt Disney Corp. and iTunes began featuring ABC shows. The real question is: How far can one push the envelope into advertising before it becomes advertising?

Product Placement is invading the Earth! Or maybe just Comic Books

With the recent surge in popularity of comics, it comes as little surprise that companies are becoming more interesting in advertising with them. In the past few years, several comic books have had movies produced to blockbuster results. The Hulk, Spiderman, and X-men are three examples, the latter releasing its third film this memorial day.
Comic Books are expanding their market, shifting focus from children to teen males. With this shift comes an increase in disposible income and a way to reach them. According to the article, DC and Marvel comics have signed partnership deals that will lead to certain brands featured prominently in their stories. For example, Dc is creating a new hero named "The Rush" who will exclusively drive Pontiac cars. Marvel is set to feature the Nike logo throughout their comics. These placement deals also include print ad buys in the comics.

Product Placement in Reality TV Removes the Reality

"Hey Guys! We just got a message on our T-Mobile Sidekicks!"
flash product shot
"You'll win a one year design contract with Banana Republic"
flash brand logo

Sound like 30-second spot in primetime?

It's the sad reality that is reality tv. MTV's The Gauntlet 2 is a competition between former cast members of their formerly popular "Road Rules" and "The Real World", both reality shows themselves. The Gauntlet 2 is also a master at product placement. Whether it's the t-mobile sidekicks they use to get competition info on, or the $1000 Best Buy Gift Certificates the winning team wins after each challenge- product placement is everywhere. In fact, the entire competition itself is taking place in Trinidad and Tobago- a fact the tourism council does not let you forget, by way of the host announcements in the beginning of every episode. It's marketing genius.

MTV isn't the only cable channel using product placement extensively. Bravo has a hit on it's hands with "Project Runway" and competition show to find the best unknown designers in America and give them the chance to show their stuff. And to show off Banana Republic as much as possible. The contestants workroom is located in the basement of the banana republic design studio, and the BR logo is everywhere. In one challenge, which was used again the second season, is to design a window display in a major New York City Store. Which Store? Banana Republic of course!

It's surprising that Donald Trump even needs to sell ads to be able to produce "The Apprentice", every team mission revolves around another brand,product, or service. In a recent episode, the two teams were to design a guerilla marketing campaign for Gilette Fusion razors in an attempt to attract the most text messages. And the list ,unfortunately, for this show continues onward.

Why is it that reality shows in particular feel the need to use product placement more blatantly than fictional programming? Perhaps it's the need to draw attention to one brand in particular when compared to the shoes, shampoo, and t-shirts that the contestants are already innocently wearing.

UK bans product placement : Relief? or Economic Hardship

Long Ago, The United Kingdom (England to the unenlightened) enacted laws that have effectively cut product placement from their original shows. In-program advertising is still available in television shows that are imported- including Desperate Housewives and 24, two huge standards of brand placements here in the United States.
Unfortunately, not having this marketing opportunity has hurt the country economically according to the European Comission. The UK is at a disadvantage when compared to the United States counterparts.

Presently, it may all be about to change. Soon after the Europen Commission made this announcement, Ofcam, a telecommunications regulator began a series of discussions to discover if there was a direct hit to their economy because of the lack of product placement. "According to Ofcom, developments in the television market, audience fragmentation and video on demand have challenged the value of traditional spot-advertising." Programming funding in the future could be at risk if advertisers aren't assured that television is a viable medium.

Obviously, there is a huge outcry from the National Consumer Commission who claim that product placement would detract from the original creativity that the shows currently posses. It would interfere with the entertainment prospects by becoming blatant marketing efforts. (wonder where they got that idea- 24!)

We Don't Want Shaun White to look like a Formula-1 Car

The Olympics are here and despite any commentary to the contrary- all is not lost with the world's most historic sporting event. The organizers have taken a different route from normal media displays and have chosen not to allow a ferocious amount of product placement in their events.

Say what you will about the olympics- and we won't delve into the debate about the low ratings- but one thing you will notice while watching the men's halfpipe is that Shaun White, despite all his sponsorship duties, does not appear to be a walking billboard for any company. And chances are it's because olympic organizers have strict rules as to the amount of advertising allowed on the athletes clothing. The Austrian Ski Team actually had to tape over the Spyder logo which was prominently and illegally displayed on their outfits.

Under Olympic committee rules:
"Sponsor logos are allowed, but only in certain places; Non-sponsors are out, no matter where;
Venues must be kept free of advertising."
Coca-Cola is one of the largest sponsors of the Olympic Games, and the bottles are being ordered out of camera view point during filming.

Product sponsorship is also restricted in non camera areas. In the press box, dell computers logos are covered. Samsung cannot display the logos in their own VIP lounge.

The director of brand protection, Cecilia Gandini, patrols the olympic venues regularly to fish out illegal displays.

The Olympics are a unifying time for the world. A majority of countries, even Switzerland, let down their guard and compete against eachother for the sake of winning a medal for themselves and their country. The history that supports these games is phenomenal and I applaud anyone who is working tirelessly for the sanctity of the games.