Daily Buzz 5-18-12
Amazon to Sell Ads on Kindle Fire Welcome Screen — If You Have $600K
The Kindle Fire is Amazon.com’s best-selling product, the company said in its first-quarter-earnings release. And it’s being treated that way by the Amazon ad sales team.
Amazon is pitching ads on the device’s welcome screen, according to an executive at an agency that Amazon has pitched. The company has been telling ad agency execs that they must spend about $600,000 for any package that includes such an ad.
The ad campaigns would run for two months and also include inventory from Amazon’s “Special Offers” product. For $1 million, advertisers would get more ad inventory and be included in Amazon’s public-relations push, according to this executive and an exec at another ad agency.”
An Amazon spokeswoman declined to comment. It’s unclear whether it is pitching the ad for the current best-selling Kindle Fire or a future ad-supported version of the device, though the price tag would seem high for an ad unit on a device that currently has no distribution. Reuters has reported that Amazon is looking to start shipping a new Kindle Fire model in July. (www.adage.com)
Fashion Destination Group (FDG) and Working Wardrobes would like to welcome Mercedes Benz of Laguna Niguel as one of the top sponsors for their June 9th Fashion Extravaganza. Mercedes will showcase luxury cars as part of the event. Luxury cars for a luxurious event!
Celebrity makeup artist Lynn Simpson will be joining the festivities as the premier makeup artist for the models that will be showcased. Simpson has been in the industry for over 10 years, working with celebrities such as Jessica and Ashlee Simpson, no relation. With a background in fashion and photography, she gives her clients the perfect look for that special occasion.
Catt Sadler, host of E! News and various E! Entertainment Specials, will be hosting the Luxury Fashion evening runway show. Sadler is an Emmy Award-winning journalist and was named by the Los Angeles Times as one of the top 10 broadcasters of our generation. Additional celebrity participants and guests will be announced shortly.
The fabulous Trina Turk will include her amazing designs in the FDG designer showcase. “Inspired by the multicultural mix, architecture, and landscape of Los Angeles and California, The Trina Turk Collection is full of the Season’s most casually sophisticated – and ‘must have’ silhouettes.” (from meet Trina at http://www.trinaturk.com/trina.aspx ) (www.sponsorship.com)
Kenseth Heads Into All-Star Weekend With New Sponsor
Roush Fenway Racing’s two-time DAYTONA 500 Champion, Matt Kenseth, is no stranger to success at Charlotte Motor Speedway. The driver of the No. 17 Ford has won every race in the portfolio at the 1.5-mile track, including an All-Star Race victory back in 2004. This weekend, Kenseth looks to add another feather to his hat at Charlotte as he premieres brand new sponsorship from Fifth Third Bank aboard his No. 17 Ford Fusion.
Kenseth will make his 12th start in this weekend’s Sprint All-Star race where he has earned four top five and eight top-ten finishes over the years. Kenseth is also one of only four drivers who have won all three Sprint Cup races at Charlotte Motor Speedway, including both Nationwide Series events. The only others to have achieved the same accolade include Jeff Gordon, Mark Martin, and Dale Earnhardt.
Earlier in the week, Kenseth helped to announce a multi-year marketing partnership with Fifth Third Bank which includes sponsorship on Kenseth’s No. 17 Ford for a total of four races this season. The announcement took place at the NASCAR Hall of Fame in uptown Charlotte Monday morning and included Kenseth, Roush Fenway owner, Jack Roush, and several executives from Fifth Third Bank.
Practice for the 2012 Sprint All-Star Race will take place on Friday, May 18 at Charlotte Motor Speedway as Kenseth will take his No. 17 Fifth Third Bank Ford Fusion for its first laps on track. The Sprint All-Star Race broadcast coverage will be aired on SPEED Sunday, May 19th with television coverage beginning at 7:00 P.M. EDT and radio coverage provided by the Motor Racing Network. (www.sponsorship.com)
Call It Berkshire Hathaway Ink.
Warren Buffett’s Berkshire Hathaway Inc. agreed to buy 63 newspapers from Media General Inc. for $142 million, significantly expanding Berkshire’s presence in the depressed newspaper market.
Media General, which has interests in newspapers, television stations and digital assets mostly in Southeastern states, said Mr. Buffett’s conglomerate would also lend it up to $400 million, enabling the Richmond, Va., company to refinance debt that would be due next March. Berkshire will also receive warrants giving it a right to purchase a 19.9% stake in Media General, whose shares jumped $1.04, or 33%, to $4.18 on Thursday following news of the deal. (www.wsj.com)
A Week With Music, a Murdoch and Frenzy
HERE is a look back at some highlights, lowlights and sidelights of the annual television upfront week, which took place from Monday through Thursday as television executives offered advertisers previews of their schedules for the 2012-13 season.
AFTER ‘BOOK’ During the NBC presentation, Jennifer Salke, president of the NBC Entertainment division, lavished praise on Josh Gad, a star of a coming sitcom, “1600 Penn.” Mr. Gad, she said, “stole the show” on Broadway in the musical “The Book of Mormon.”
It seemed an impolitic comment since Mr. Gad’s co-star in “Mormon,” Andrew Rannells, is also a star of a coming NBC sitcom, “The New Normal.” There is some solace for Mr. Rannells: NBC has scheduled his series for the fall, at 9:30 p.m. on Tuesday, while Mr. Gad’s is a midseason replacement with no firm date when it will appear. (www.nytimes.com)
Honda Indy Toronto announces new sponsors for 2012
The organisers of Toronto’s IndyCar Series event have announced the addition of four new partners for the 2012 edition of the race, which this year is schedule for the 6th to 8th July.
A new partnership with Sony – now the official television sponsor of the Honda Indy Toronto – will see all of the race’s hospitality boxes and lounges equipped with new high-resolution LED televisions.
Additionally, technology solutions company CDW Canada has acquired the naming rights to Honda Indy Toronto’s VIP Club while local craft brewers Muskoka Brewery and Amsterdam Brewery will hold track-side pouring rights across the three-day motorsport event. (www.sportspromedia.com)
Kindle Fire, Pulse App Readying Ad Programs
While advertisers have been slow to invest in a tablet platform that seems to have even fewer creative and distribution standards than the mobile market itself, both Amazon and the news aggregator Pulse are preparing to offer advertising products for their respective venues, according to separate reports.
AdAge.com reports that Amazon is pitching agencies on placing ads at the Kindle Fire welcome screen for an entry price of $600,000. That hefty price tag would cover two months of exposure as well as placement on Amazon’s ad-subsidized “Special Offers” devices. Amazon would not comment on the report, but the pitch may well involve an unannounced Kindle Fire that follows the model Amazon set forth in its “Special Offers” Kindle units, which sold at a lower price in exchange for running ad messages in the Kindle’s screensaver mode.
In another tablet-related ad initiative, the popular news aggregator Pulse for iOS and Android is advertising for a sales executive, according to TechCrunch. Based in New York, the account exec will be charged with selling innovative modes of promotion for clients. “We are building innovative and disruptive ways of empowering brands to share their content and tell their story in a way that’s natural and native to Pulse,” reads the job post. “We’re not selling standard units, we’re reinventing what marketing can be and should be on mobile devices.”
Much like Flipbook, Pulse has been cultivating more direct relationships with major media providers in order to present their feeds of content in more appealing ways. It features content from The Atlantic, Discover, The New Yorker, Huffington Post, TIME and Wall Street Journal, among others. Flipbook leveraged these content relationships into advertising partnerships where full-screen ads were placed between the pages of a specific media company’s reformatted feed. When TechCrunch inquired about the post, Pulse CEO Akshay Kothari only said that the ads in the Pulse model will resemble the content quality in the app itself. (www.mediapost.com)
New Electus Series Spotlights Asian Subculture, Targets The Masses
Sensing an opportunity in developing content around subcultures, Ben Silverman and IAC’s Electus have partnered with Tyrese Gibson’s HQ Productions and new production studio DiGa to bring the lives of a group of Asian Americans to the masses in a new online video series called “K-Town.”
Set in the heart of Koreatown, Los Angeles (which is sandwiched between downtown L.A. and the Miracle Mile), “K-Town” is an unscripted reality show a la “Jersey Shore” that will follow the lives of eight K-Town residents, who each have their own distinctive profile.
For example, there is a sexually liberated former exotic dancer, a single mother who is a bartender, blogger and all-around drama queen, a nightclub owner of the hottest club in L.A. catering to Asians, etc.
“K-Town” is the first series from Electus’ new YouTube channel LOUD, which launches July 2 along with several other niche-oriented channels as part of Google’s push to host more premium original content on its video-sharing site. (www.mediapost.com)
For Brand Extensions: Like With Like
When it comes to getting consumers to consider buying a product that constitutes an extension of the core brand, the (perceived) quality of that brand matters a lot more than the fit between the heritage products it’s known for and the extension.
That’s an important point for marketers to keep in mind when, say, a sunblock brand is mulling a line of sunglasses, according to Kelly Goldsmith, assistant professor of marketing at Northwestern University’s Kellogg School of Management.
It’s especially relevant now as licensing programs allow brands free rein to venture far from their heritage product lines, judging from things like Caterpillar-branded footwear, Speedo camping gear and Swiss Army Knife watches, for that matter.
A new study from the Kellogg School suggests that there are certain things brands must do to minimize a consumer’s potential cognitive dissonance about the fit of the extension with the core brand. With the right actions at retail, and assuming consumers hold that brand in high esteem, brands can boost consideration by doing a few simple things that take consumers’ minds off the “fit” issue and onto brand equity. (www.mediapost.com)
Why Gen Y Loves Moosejaw’s Marketing Madness
At outdoor retailer Moosejaw, marketing madness is taken pretty seriously. Callers on hold listen to a 1942 speech from Winston Churchill. Shoppers in stores may get swept up in impromptu games of hide-and-seek. Augmented-reality apps don’t really sell its outdoor gear, but do let fans look at people without their clothes on. Thanks to the success of this quirky marketing, much of it digital, the company now generates 65 percent of its sales online. And it’s extended brand awareness well beyond its nine-store Midwestern footprint.
Gary Wohlfeill, creative director, tells Marketing Daily how staying true to its irreverent brand persona has helped make it a cult favorite with Millennials.
Q. What’s the brand’s backstory?
A. The first store opened in 1992, in Keego Harbor, Mich. Pretty soon, the founder, who was 19 and had no experience in retail, opened stores in Ann Arbor and Lansing so he could meet girls. So things like starting a game of touch football in the middle of the store — that was just his personality. The idea that retail can be fun and customers can be your friends is just part of what the brand has always been.
Q. But it’s very different in your category, right? Companies tend to treat mountain-climbing like a life-and-death sport.
A. Yes, outdoor tends to take itself pretty seriously. But each brand has its voice, and we’re just all about customer engagement, and always have been. Our passion is to make this be the most fun retailer in the world. (www.mediapost.com)
Bud Light Drawing Millennial Buzz
Bud Light is generating positive social/online buzz among Millennials, according to recent data from YouGov BrandIndex.
The brand, which has had particularly high visibility of late as a result of its recent launches of Bud Light Platinum and Bud Light Lime-A-Rita, showed the largest gain in perception among adults 21 to 34 over the past two months, based on BrandIndex’s Index score. (The Index score averages perceptions of value, quality, satisfaction, general impression, reputation and willingness to recommend.)
In fact, Bud Light was the only one of the three domestic light-beer megabrands to garner more positive than negative perception feedback during the period, and since the end of April, has even been tracking higher than premium beer brands Amstel, Beck’s, Dos Equis, Foster’s, Heineken, Molson and Peroni.
As of March 19, Bud Light had a -6 Index score. By April 27, its score had reached 1, passing the premium beer sector (which hovered at about 1 between mid-March and late April, but swung down to -1 by early May). From late April through May 8, Bud Light’s daily scores remained at 1 or better, sometimes approaching 2. (www.mediapost.com)
