Wednesday, April 18, 2007

Beyond the Buzz

Currently, Web 2.0 is the big buzz when it comes to Internet marketing. Simply put, it’s empowering users to select the media they want, influencing how consumers affect advertising, and allowing consumers to generate the next news event or popular culture phenomenon. It is a change that is exerting tremendous influence – and creating endless opportunities – the world over. The following is a look at how various media are employing Web 2.0, and some key issues that are being brought to light by their efforts.

One example of how the print world is reflecting the influence of Web 2.0 is a current promotion by Xerox and Wired Magazine. It’s called “Make Wired Your Own”. The drive of the promotion is to get current subscribers, 5,000 total, to upload their image so it can appear on their very own copy of the magazine cover. This is a perfect example of print and online converging. This is not only exciting for a current subscriber of Wired, but almost an envy to others that can’t participate. It’s creating yet another way to get a consumer excited about their brand.

If you’re a brand like Splenda - your image is everything. Brands worry about image so much that it practically consumes them.
In order to control bad PR, Tate & Lyle, manufacturer of Splenda, along with its US based co-developer Johnson & Johnson, bought up potentially negative domain names by the hundreds (such as splendasucks.com and splendakills.com). Why? They fear the online consumer. But chances are if someone has something bad to say about a brand, they will find a place online no matter how hard that brand may try to stop them. This is the power of Web 2.0 for better or worse. Consumers can almost make or break a brand merely on how they react to it.

" The Internet video
download business is
expected to be worth
$3.7 billion in annual
revenue in 2010."

MTV, on the other hand, has developed a counter-strategy which embraces the new Web 2.0 strategy. Their approach: if you can’t beat them, join them. Kenneth Li from Reuters writes that, “MTV Networks, owner of the MTV and Comedy Central channels, is pushing a risky new Web strategy to win back young viewers from the likes of YouTube and MySpace. The network, which already has 150 Web sites in 162 countries, plans to build literally thousands more, hoping to draw viewers by letting them watch, contribute and even re-edit its television shows.” This is an established brand name almost re-branding themselves in order to keep pace with the Web 2.0 world. As the article further states, “MTV Networks” new strategy is part of an effort by Viacom to reach a wider audience that is spending as much time on the Internet and on video games as watching television, and no longer cares when or where programming is shown.” A Pricewaterhouse spokesperson points out the Internet video download business is expected to be worth $3.7 billion in annual revenue in 2010. Why wouldn’t MTV embrace this strategy?

The next big challenge a recent Reuters article points out is: “(finding) new ways to court viewers who split their time between viewing traditional media, surfing the Internet and playing video games. One such solution vying for consumers’ attention will be Joost. Joost’s primary focus is on network-quality programs – an entire network of global programming without the problems we have with today’s streaming video. Compared to Apple’s iTunes, which sells TV shows and movies, Joost is free, though its content is peppered with one to three minutes of ads an hour. It’s bringing the traditional broadcast model full-circle. A recent Time.com article explains: “Joost is lean-back from a content point of view, but its attractiveness to advertisers is in getting you involved”. Ad execs love Internet TV because its audience is measurable, targetable and interactive. “If you spend 10 minutes learning about a new car you’re interested in,” Ozguc says, “that’s worth gold to advertisers.” By 2010, Parks Associates estimates, the online-video market will grow fivefold, to more than $7 billion. So far Wrigley, T-Mobile and Maybelline have signed on, and others may customize ads not just by location, but also by viewing style. Watching Lassie, Benji and other dog flicks? Purina might have a message for you. “There’s no reason why a real estate company couldn’t put an ad up linking to a video walk-through of properties in your neighborhood,” says David Clark, Joost’s advertising director. Jeremy Allaire, the CEO of Web video provider Brightcove adds: “Unlike traditional entertainment media, however, end-user participation should be a big part of any online media strategy.”

In the midst of all this lies the question: Who owns content? With users seamlessly able to upload anything to the web they feel catches their eye, then how much control do you truly have over your own product? To quote Mark Cuban, regarding usage rights for content on the web: “HBO charges a monthly fee to subscribers. If someone can watch an HBO show on Google Video or YouTube, even if it’s divided into 1, 3 or 6 partsand reassembled into a playlist, they have far less incentive to subscribe or retain their subscription(s). HBO in turn, syndicates those shows to cable networks. As an example, A&E paid a reported $2.2 million per episode of the Sopranos. If the content is available online, do you think maybe it might reduce the value to A&E and HBO of the Sopranos? And that’s before we even get to overseas syndication. YouTube and Google Video have a great deal of popularity overseas because in many cases US shows are not as readily available. Online international viewing reduces the international revenue opportunity. Then of course there are DVD sales. YouTube downloads every video right to your PC. Google Video not only downloads to your PC, it provides the option to convert it into a PDA format including the iPod. So tell me why it makes good business sense for HBO to let users post the content they sell for a ton of money?”

" By 2010, the online-video
market will grow fivefold,
to mor than $7 billion."

Essentially, the Internet is the new antenna. Where content is free, and integration of products is crucial to connecting with the consumer. How brands engage the consumer is still key, both from a delivery standpoint to a product standpoint. With the web terrain already cluttered with sites that want to deliver us entertainment, it is even more important that those delivering the content become “household names.” Established brands like Yahoo and Google would be wise to create their own concepts of Joost. Why? Because they’re established brands and already have a built-in consumer base. They are not starting from scratch. We already see brands that are stepping into this entertainment sphere. Apple TV is a perfect example of an established brand that has already had success in delivering music, trying its best to take another piece of the pie by creating a delivery system that is practical and engaging. Its sole purpose is to take all the entertainment you have already downloaded from Apple, and enjoy it on a TV anywhere in your home. Apple is not the first to come up with a delivery system like this, but they are perceived as a brand that delivers technology that is easy and simple to use. An established brand that already has a loyal consumer base will inevitably increase with this incredibly approachable technology.

" The Internet is the
new antenna."

So what does Web 3.0 look like? Well, the web doesn’t consist solely of websites anymore. Take Sony and Xbox’s online gaming platforms and Second Life, an online “metaverse.” These are massive global networks made up of communities of online users. Brands integrating into these environments are one of the fastest growing trends. Second Life will soon integrate voice as well as web-content. What will happen once it can support content such as Joost’s online broadcast model? Total convergence seems inevitable. Imagine logging on at night and sitting in your virtual home, watching the playoffs on a virtual Samsung TV with your brother from Detroit sitting next to you on your virtual couch. The trash talk is brutal since you’re rooting for opposing teams. One of you’re virtual neighbors from the UK wanders in to sit and watch the game with you. The scary truth is that we aren’t far off from this now. By the time you read this, it may have already happened.

Ann Marie Mathis
Creative Director, Interactive
Cheil Communications New Jersey

Advertising 2.0

As an abstract idea, Web 2.0 is simple: there has been a change in the direction of traffic on the Information Superhighway. What used to be a top-down flow of communication on the Internet is now bottom-up. Downloading content has been replaced by uploading. Viewers are calling the shots when it comes to media content. Consumers are crafting advertising messages. The sun and moon have switched places. Snowflakes are falling up. Got it.

For those of us in the advertising community, however, Web 2.0 is much more than a simple abstraction. It is a living, breathing organism whose vital signs are visible throughout the vast media-scape. Here are some Web 2.0 Advertising success stories:

:: You make the ad: The Doritos story
Instead of spending millions on producing a Super Bowl commercial like everyone else, the folks at BBDO only spent $20,000 to sponsor a 'create your own Doritos ad’ competition among its consumers. The idea resulted in thousands of entries and a lot of buzz in the press including five minutes of airtime for free on the Today show. Not to mention a pretty good Super Bowl ad.


:: Dove: Spinning the “Word-of-Mouth” mill
Another great spot this year wasn’t even technically a TV commercial. It was the Dove “Evolution” viral video that showed a normal woman being transformed into a supermodel using both cosmetic and digital techniques. Instead of running on traditional TV, it ran on the “Word-of-Mouth” network – the Internet – letting the Web work its inter-connective magic.

:: Haägen Dazs and “Crowdsourcing”
The Haägen-Dazs site “Scoop” uses a Web 2.0 technique called “crowdsourcing” which relies on its users to help with research and development. The users not only generate the content of the web site, they generate the product itself.

:: Old Spice’s “Mashup”
Another interesting Web 2.0 tactic is the use of multiple sites to create content using a technique called “Mashup”. For the web, Old Spice merged with the web site College Humor to create a “Keep it Clean” contest. Visitors were asked to upload amusing pictures – of nature, architecture, accidental double entendres, etc – that look sexual in nature but, upon closer inspection, are completely innocuous.


:: Mini’s big idea
Web 2.0 insights can also be applied to outdoor. Mini came up with an outdoor idea that communicates with drivers via Radio Frequency Identification. The drivers opt into an email blast. After answering the email, a keychain with a FOB arrives in the mail. Now, whenever the driver goes by the outdoor board, the display will post personalized messages for the drivers as they pass.


Web 2.0 may have become an overused buzzword lately. That’s inevitable; all good ideas get abused in our culture. But good marketing works because it captures something true. Web 2.0 is on everyone’s tongue these days because its basic aim – to give a greater, more participatory role to the consumer – is creating a lot of new avenues of opportunity for consumers and advertisers alike. We would all be wise to master this new Web upgrade – and apply its insights.

Tom McManus
North American Creative Director
Cheil Communications New Jersey

Ad Icon to Sitcom Star

Geico is known for their quirky spots featuring characters and actors that don’t fit into the normal mold of advertising. For example, the gecko, which at first was mad that people would call him looking for Geico, but in recent years has become the “spokes-gecko” for the brand. The gecko is perhaps the most notable character, but coming up quickly on the gecko is the Geico Cavemen. The popularity of the Cavemen has spurred a deal with ABC to create a sitcom based on the characters from the commercial.

:: Geico Cavemen: The Beginning



Three years ago, the first cavemen spot broke featuring “real” cavemen (played by Jeff Daniel Phillips, Ben Weber, and Jon Lehr) acting in a commercial for Geico. The tagline of “so easy a caveman can do it” insults the cavemen actors and they storm out. A follow up commercial was released with the two insulted cavemen, dressed in collard shirts and blazers sitting in a restaurant with the Geico announcer as he apologizes for the commercial— “We had no idea you guys were still around.” The apology was not enough, one caveman has “lost his appetite” and the other orders the now famous “roast duck with the mango salsa”; one more way of sticking it to the man.

Some advertising critics thought that this was a “one-note joke”, but the cavemen have become a phenomenon. Each new commercial takes the viewer deeper in to the life and world of this “hyper-sensitive and hyper self-involved caveman” (Ad Week). The ads are smart and quick witted with snarky dialogue and smart acting. Much of the time, the funniest part of the commercial is the caveman’s silent reaction to a new Geico ad.


In an interview with Forbes magazine, Warren Buffet said that the company spent $631 million on ads last year and the Wall Street Journal says that for 2007 that amount will rise by 20%. With this kind of money backing the ads and consumers creating a stir with their own content, the cavemen have achieved celebrity status.


:: The Move to Sitcom

The big news for the cavemen is a new sitcom that will be based on the characters from the Geico commercials. The new project titled “Cavemen” will “focus on a trio of prehistoric characters who battle prejudice in modern-day Atlanta” (Wall Street Journal). The show was shopped around to the various networks, and ABC picked it up and will be paying for the pilot episode. This decision highlights the “blurring line between advertising and entertainment” and also shows ABC’s desperation at launching a winning sitcom. At the moment, there is no script and no cast ready for the show, but it has been noted that Geico will have no creative input or control on the project. Ted Ward, Geico’s VP of marketing is fine with this decision saying, “We sell car insurance; we don’t make TV shows” but Geico looks forward to have this opportunity for a brand extension (Wall Street Journal). In the event that the sitcom does take off, it is unclear at this time whether Geico will continue the cavemen commercials, which could be good news for the gecko.

" The risk is having the
sitcom come off as an
extended commercial."
-Ad Age


:: Been There, Done That
This move of the caveman character out of the commercial and into a sitcom is not a new endeavor. In the late 90s, Baby Bob, “a precocious talking infant who shilled for dot-coms” got his own sitcom on CBS in 2002, but was killed after only nine episodes (Ad Age). The potential for this sitcom to become popular and mainstream is up in the air. Because its roots are in advertising “the upside is that the character gets
well-known and resonates more” says Robert Passikoff, president of Brand Keys. But the fact that the character is already known as being from a commercial, the risk is pushing an “advertising icon” into the public and having the sitcom come off as an extended commercial (Ad Age).

:: In Love and Backlash
Response to the news of the cavemen getting their own show has been mixed. Most advertising editors and bloggers do not love the idea of the spots getting more time on air:


"At first I found the commercials
entertaining (though not very informative), but I don’t think I could handle a television show rooted in something developed by an advertising agency."
—Blogger by the name of Flexo from ConsumerismCommentary.com

“[Geico] could wear out the advertising idea due to oversaturation…Like anything, ads eventually lose their surprise ... Doing a TV show will accelerate that process and shave life off the campaign so it might not be worth it.”
—John Bond of Kirshenbaum Bond and Partners quoted on
CNNmoney.com

“There is no way to really predict how the new ’Cavemen’ series will turn out. It absolutely represents a shift in the advertising for Geico, for if the series does not do well, the gecko could soon be the reigning Geico spokesman once again. Seeing this trend of the “advertising icon” becoming enough of a character to support their own program, it has led some others to think, who’s next? Check out AdWeek’s ’Just Asking’ and see what commercial characters advertisers and marketers think should be the next big TV idea.” —Just Asking from AdWeek

Melanie Moser, Information Coordinator

Cheil Communications New Jersey

What other commercial characters should get their own show?

John Hodgman and Justin Long of the Apple commercials in a roommate show. PC guy clueless on everything, hip Apple guy with patience sorely tested everyday. Hilarity ensues.
—Susan Quirk, principal Quirk Design & Advertising, Simsbury, CT

Serta Sheep. If people liked the show, great. If they don’t and found it so
boring that they fell asleep, voila! The sheep finally got to do their job. It’s a win-win.
—Steve O’Connell, President/CD Stick & Move, Philadelphia

The Pillsbury Doughboy. He’s cute and lovable and it’s a natural progression from there to recipes. I can see him
taking on the Martha Stewart set.
—Debra Bluman, VP, product marketing, Crisp Wireless, New York


from Adweek.com
Just Asking March 19, 2007

Thinking Outside the Home

Out of Home has surpassed people’s wildest dreams. The industry has taken advertising from traditional to non-traditional and now it is presenting itself on buildings and in windows. Its presence is still considered more traditional in nature with billboards, walls, posters, malls and transit, but guerilla marketers are playing a huge part in the medium’s next generation. Some of these types of OOH options include sidewalk art, removable imprints on currency, street teams and interactive sites plus anything else that an advertiser can conceive creatively. Out of Home vendors are very adept at creating niche advertising opportunities to achieve the presence desired in any market or at any venue.

For the third year in a row, Out of Home growth is more than 8% and advertisers spend approximately $7 billion annually in this medium. New business continues to grow in double digits with new advertising partners putting dollars into the many new forms. This year alone has over 3 dozen new vendors and technologies some of which will lead the way for advertiser superiority in a variety of venues. AAAA (American Association of Advertising Agencies) anticipates new entries on a regular basis, but the type of entries this year has provided advertisers new dimensions to work within.

High fashion, retail, investment banking and automotive continues to outspend most other entries in Out of Home. Calvin Klein, Versace, Dolce and Gabbana, and Bulgari have become top airport advertisers as well as using the newer and more outlandish types of guerilla advertising to gain attention. Merrill Lynch, Chase, Citibank (just to name a few) also find airports, wall wraps, and street art to their benefit and buy within the top markets to build their name and image. Auto makers continue to direct their agencies to buy up stadium and arena advertising and create 3-dimesional executions to promote new vehicles and line extensions and to reach the consumer. It becomes a very competitive world when advertisers like these are buying OOH in yearly increments (annual contracts) to lock in the most superior locations. They outspend the other categories by more than $3M and look for the truly spectacular. Hotels and the entertainment categories have put tremendous demands on the OOH industry to provide venues that cater to many different audiences such as teens, alternate lifestyles, African-Americans, Asians and high lifestyle seekers. Competition in every area of business makes advertisers want more “bang for their buck” and OOH does not disappoint.

" Out of Home lets
imagination take the lead.
"

Continuing to forge relationships with the suppliers to provide as much detail on the target ability of venues, and to be able to measure and embrace the new options is every advertiser’s desire. The Traffic Audit Bureau and OAAA (Outdoor Advertising Association of America) forge ahead and measure the new forms of Outdoor. They continue to develop new measurement models to factor in the pedestrian value so they can properly define impressions. Outdoor measures the number of vehicles viewing the advertising, but with so many new options for the pedestrian, we continue to struggle with providing accurate numbers to report the huge viewership of these great new alternatives. Out of Home continues to be a media form that allows imagination to take the lead. The reach and deliverables for OOH continue to be far below what other media delivers as the measurements are based on vehicles, not “eyeballs”. We, the Out of Home leaders are working diligently with vendors, and committees to bring the OOH circulation numbers into line with other measured media.

Options continue to grow as targets expand and there is virtually nothing that cannot be conceptualized by most Out of Home specialists. Some new trends include:

:: Branding money with removable and usable stickers
::
Vehicle wrapping
::
Interactive mall and street kiosks with Bluetooth technology
::
3-dimensional holographic window displays
::
Steam cleaning sidewalks as part of a public service with branded stenciled messages
::
Wrapping buildings, airplanes, blimps and vehicles with a variety of materials


Targeting is infinite, even right down to
a certain street or zip code. Billboards, walls, buses, trains, malls, and stadiums continue to be the standards that drive traditional Out of Home. Demographic groups can be targeted by location, not by type of medium. Lead time for Out of Home is longer so that creative can be specifically designed to meet the form. It is a balancing act to work with so many variables in order to create the perfect message. Out of Home creative is sharper and more defined, and new technologies are factored in to create a unique message.

There is a new twist on using vacant store windows for large-scale poster ads with the additional use of video projection and audio. Now passerby’s can watch full motion video and listen to a product jingle while running errands or just window shopping. This urban signage program has taken a step beyond plastering posters on empty window to create giant, street level billboards with the capability of making them 3-dimensional with full audio.
Ads are printed on vinyl film that covers the windows and facades of vacant, permitted store fronts. These are called Storescapes, a window dressing application which takes advantage of the architecture, and builds an interactive campaign. It gives the appearance that creative is painted on the windows with logo and contact information included. Billboards at eye level create an interactive impact as people stop and actually inspect creative and read the message. Creative can be changed throughout the campaign to tie into other types of OOH that are being used in a variety of markets. The programs are designed for single advertisers to brand a message or promote a product. This technology is available in NYC, San Francisco, Chicago and Los Angeles. This window technology can be used on its own, or be used as a backdrop for street promotions. It is also an incredibly effective way to introduce a new product or event.

The dressing up of buildings and wrapping their facades has also taken on a designer-like image. Selected buildings are bathed in material or in light to create any image possible. The projection media process has taken on cinema quality, and the ability to transform a building has proven breathtaking. Buildings are morphed into illusive pieces of art for special events or for sheer advertising presence.

The use of these types of building wraps has grown by over 33% from 2005 as
corporations are using them to gain media exposure from television and radio. Building wraps are more than just Out of Home; they are a public relations spectacle that CBS, NBC, ABC and Fox use for their new television seasons and sweeps. They have continuously used wraps to enhance their awards shows and events in the top markets. The creative is usually tied into the television advertising in order to fully brand all mediums. Movie studios also use these building wraps in the Los Angeles markets on a regular basis to draw attention to their latest upcoming summer and holiday movies. We have come a very long way from just draping columns on buildings with traditional vinyl, and are hoping that technology and advancements can keep up with our imaginations.

Vicky Frank, Out-of-Home Supervisor

Cheil Communications New Jersey

The Rise of Interactive TV

Interactive TV is an overarching term describing any service allowing viewers to interact with television content. The new technology allows the user to select content and control playback features. Interactive TV has evolved to include video on demand, VCR-like pause, rewind, fast forward, and DVR usage. The consumers control their content viewing by the use of the remote control. According to Forrester research, by 2010, over 45 million households (40% of the US) will have Interactive TV in their households.

Advertisers can utilize Interactive television several ways. A few examples include:

Air traditional :30 spots enhanced with triggers which would transport viewers to a full screen Microsite. Run traditional :30 spots enhanced with triggers which transport viewers to long form content regarding information about products. Use Interactive TV as a call to action and collect the viewer’s contact information when the consumer clicks on a screen where they request more information regarding a specific product or a free sample.

What does this all mean for the future of television? The typical television viewing experience will soon resemble the current web surfing experience of today. Advertisers will selectively target ad messages to specific groups and interests, weeding out the ad for a product or service not of interest to the viewer.

This also means that the commercials will become scripted programs, and will have to offer more information on the products.
The spots will have to intrigue customers to select and watch when they want. This could weed out advertisers where long form will not work for their products or where budgets will not allow for the production of these scripted spots.

Lastly, scheduled programming may become a thing of the past. The importance of the time of the show and broadcast will shift to an emphasis on what the show has to offer.

Although Interactive TV is currently deployed in around 30 million US households in one form or another, it has yet to reach viability as a stand-alone service. Part of the reason is that it is a new product, and will require testing, integration, maintenance and updating. Once this service becomes more widely adopted by advertisers, it will become a more efficient and recommended opportunity. Consumers will watch Interactive TV with more attention, and will not bore them because they are actively involved. The right creative can engage consumers and stop viewers in their tracks and keep them there. The medium is measurable, as you can acquire information on the viewers, analyze and evaluate who is interacting with the brand, and make relevant decisions on target marketing.

It is a rapidly changing world and wherever consumers go over the coming years to find their favorite TV content, smart advertisers will follow.

Natalie Suesser
Media Investment Supervisor

Cheil Communications New Jersey

DM Spending Continues to Trend Upward

We recently came across survey results conducted by Tivoli Partners* looking at the trends associated with Direct Marketing. As companies continue to push their marketing partners to more quantifiable results and ROI, direct initiatives continue to play a critical role in their communication vehicles.

A national survey among direct marketing professionals to identify key industry trends recently found that 69% of the respondents indicated that direct marketing spending has increased since 2004. They collected responses online from a statistically valid sample of 130 participants, mostly in the financial, retail, and services industries. Respondents’ company size ranged from 11 to 5,000+ employees. 55% spend $1 million or less on direct marketing each year, and 29% spend $5 million +.

" The bottom line is, we
all want the same thing."

The findings indicate that reasons for the upward trend included clients’ need for more accountable communications, and the ability to reach customers and prospects in more targeted fashions, including direct mail, e-mail, telemarketing, and other one-to-one communications methods. Advanced technology and enhanced data-mining techniques have brought even more science to the art of direct marketing.

Begin a dialogue with your target to gain a better understanding of their needs and how better to tailor your message and offers to them. When given a laundry list, respondents gave high marks to reminder mailings (83% used these somewhat/very successfully) and newsletters (65% used these somewhat/very successfully).

And, finally, it’s interesting to note that direct marketers identify lifetime customers as their most valuable (38%), yet do not allocate customer retention a bigger slice of the budget pie.

While communications budgets should reflect that there are different jobs to be accomplished and prioritize accordingly, the bottom line is we all want the same thing – to sell more product, gain market share and loyalty, leading to more sales and up-sell opportunities.

Key findings:

1. Direct marketing budgets have increased. 69%of respondents indicated an increase in spending when asked whether their total direct marketing budget had increased, decreased, or stayed the same during the past two years. 16% indicated their budgets had stayed the same.

2. Acquisition and retention are just about equally important. 52% of respondents use direct marketing for customer acquisition, while 47% use it for customer retention.

3. Spending for customer retention lags. More than one-third (39%) spend 25% or less on customer retention, while those who commit more than 75% of their budgets comprised less than 12%.

4. Reminder mailings and newsletters are preferred tactics. When given a laundry list including points-based frequent buyer programs and membership clubs, respondents gave the highest marks (83%) to reminder mailings and newsletters (65%).

5. There’s no substitute for great customer service. 79% feel that they are somewhat/very successful
in delivering exemplary customer service, while 8% indicated they are not even trying.

6. Marketers are quick to react if something’s not working. 68% agreed with the statement, “We quickly shift dollars during a campaign if we think it’s not working.” The remaining respondents wait until the end of
the campaign to evaluate results.

7. Telemarketing users have increased their spending. 42% of respondents do not use telemarketing at all; but of the 58% that do, 43% have increased their spending in the past two years.

8. Direct mail delivers. More than half (54%) have increased their use of direct mail in the past two years — indicating that predictions that the Internet would replace print have not come to fruition.

9. e-Mail rules. 72% have increased their use of e-mail marketing during the past two years. And 63% of those marketers using online banners or sponsorships have increased their spending.

10. Cross-selling is king. When we asked respondents to rate certain topics of interest from customer retention to innovative tactics, 52% indicated that they were very interested in techniques to deepen their relationship with current customers.

11. Lifetime value ranks highest. When asked to identify their most valuable customers, 38% chose lifetime value above all other indicators.

The bottom line is, we all want the same thing.

Chris Georgieff, Account Director
Cheil Communications Irvine


*Tivoli Partners commissioned Interactive Marketing and Research of North Carolina to conduct this survey of select subscribers to direct marketing publications. Tivoli Partners is a Charlotte, NC based agency specializing in direct response marketing.

The Facts of Second Life

Cheil Communications North America recently constructed a lavish 5-floor office on the corner of 43rd and 7th in the heart of Times Square. Times Square in Second Life, that is – a vast, virtual world.

According to Adweek, “the most surprising innovation in 2006 was the rush to advertise in the Second Life virtual community….” Unfortunately, over 70% of Second Lifers have been disappointed with the old school attitude these brands have brought with them.

That’s why Cheil has approached Second Life with a goal of establishing a full-time and permanent presence that embraces every aspect of this new world. Like what? Below you’ll find our top ten rules for brand building in Second Life as preached by our Brand Wizard in the virtual Cheil lobby.


1. To become a player one must forfeit the notion that Second Life is a game.
There is no finish line in Second Life. Nobody is keeping score, although it is possible to score a pimped out pad. There is no ’end boss’ to beat. In fact, beating of any kind is generally frowned upon in Second Life.

2. Being in Second Life is not the same as being a part of Second Life.
Second Life is a world of things to do, places to see, and avatars to meet. That’s why it’s important to be inventive, imaginative, and unique. Give them a reason to stop by and stay awhile. If not, they’ll just teleport the heck out of there.

3. There’s a fine line between creating a buzz and being told to buzz-off.
The cost of overselling in Second Life is steep. Instead of brand loyalty, you risk developing a degree of brand lameness. Be subtle instead of sublime. Respect their savvy and avoid the cynicism. Because remember, word spreads quickly in Second Life and there are a few choice words you don’t want
to be called.


4. Keeping it real in Second Life is really, really boring.
In the real world, your brand would never be able to offer promotional free rides on a purple dragon. PETA would probably protest, not to mention the fact that it would be illogical. But this is Second Life, a world where anything is possible. It’s also a world where traditional marketing and real life brand experiences rank up there with a trip to the Second Life DMV.

5. Remember, it’s not considered a bribe in Second Life. It’s an incentive.
If you build it, they still might not come in Second Life. On the other hand, if you offer the residents ways to make Linden (moolah) then you’re bound to get more visitors. Pay them to camp at your place. Give them jobs as DJs, Greeters, or Mimes. Actually, it’s probably not a good idea to have a mime. They’re just as annoying in Second Life.


6. Scratch their backs and the Second Life community will scratch yours.
Second Life is all about community. In that community, a cooperative company is more likely to succeed than a corporate company. That’s why it’s important to support the local mom and pop shops. Not to mention the shops owned by elves, showgirls and Cyclops. Employ their services and they’ll be more likely to send people your way.

7. Give away too many freebies and it could cost you your reputation.
Sure, you could set up shop and give away everything for free for promotional purposes, but that would hurt the indigenous businesses that don’t have your resources. Check the local economy and price your goods and services accordingly. If you don’t, be prepared to experience the wrath of Griefers.

8. Build on a deserted island, and it might just stay deserted.
Even if you have a skipper, movie star, millionaire and his wife on your island, it still probably won’t be enough to get people to come. Instead of buying your own island, try being a rock and a pillar to an already existing community. Your presence will only add to its vibrancy.

9. Even if you’re not ’into’ leather chaps that doesn’t mean Bubba won’t be wearing them.
Part of the fun of Second Life is that you’re free to create and do virtually anything you want. It also means that everything from convents to strip joints exist in the community. Be aware that it’s not all “PC” in Second Life. Plan for the unlikely and occasional compromising situation as best you can.

10. Keep them coming back for more.
Once your brand is in Second Life, it’s important to do things to keep the residents’ interest. Get creative
and host big events. Throw parties or promote concerts. Add new features to your location that will warrant repeat visits. Whatever you do, don’t rest on your laurels or your spot might end up a ghost town. Unless that’s what you’re going for, then make sure you build a saloon and stage a mid-day train heist.

Brian Gield
Senior Copywriter, Interactive
Cheil Communications New Jersey

Campaign Spotlight: BlackJack

The Samsung BlackJack phone offers a compelling and technologically advanced smart device, however we wanted to show that this phone could be used for more than just smart features and we utilized celebrities to bring this message to life.

Rachel Zoe – a high profile celebrity stylist was the face of “Style”. She brought to life the beautiful, sleek style and design of the BlackJack.

“Work” was showcased by Derek Lam – the world renowned fashion designer who is able to keep up to the minute with the help of this multi-functional device.

Mark Cuban was the face of “Play”
working hard and playing hard is a mantra this businessman lives by. We felt he captured the essence of the enhanced music and video features the BlackJack offers.

Finally there was “You” – Katherine Heigl, the popular TV actress embodied the perfect combination of style, work and play.

Media placement for this campaign consisted of: National and Local Newspapers, Online Media, and National (Business, Entertainment, Men’s, Music, Travel and Women’s Fashion) Magazines.

Kristen Benavitch
Business Development Manager
Cheil Communications New Jersey