Daily Buzz 8-16-11
Why Google Bought Motorola, and What It Means for Advertisers
- Search titan Google agreed to buy Motorola Mobility for $12.5 billion, it’s largest acquisition to date, giving the it a wide-ranging portfolio of patents that allow it to compete more directly against Apple and Microsoft.
- Here, we break down what this deal means:
- What does this mean for media and marketing? Nothing immediately. This is largely a deal to acquire software patents and has no near-term implications for advertising. Google insists Motorola will operate as a separate unit and will continue to make mobile phones and tablets under the Motorola badge. In other words, don’t expect Google phones and tablets — for now.
- So why did Google spend so much money on Motorola? At stake is nothing less than the fast-growing mobile industry that runs on various patents held by major companies such as Microsoft and Apple for which they charge mobile phone makers. Earlier this year, Microsoft demanded Samsung pay a $15 surcharge for every Android handset it made, what Google CEO Larry Page called an “Android tax.” Microsoft owns mobile patents and charges phone makers that make use of its technology, and Google alleges that Microsoft (and Apple) are being anti-competitive by charging phone makers for using Android and not their own mobile operating systems. Patents have therefore become an important part of a company’s negotiating arsenal in the mobile phone market, and last month a consortium of companies including Apple and Microsoft collectively won a bid to buy out patents from bankrupt Novell, which Google lost. (www.adage.com)
Diet Coke Gets New Look for Fall
- Coca-Cola turns 125 this year, and while that’s good news for employees, shareholders, and fans of Coke, it’s likely rather a bitch for the design team. After all, how is anyone supposed to keep a brand portfolio that’s sold in 200 countries and consumed 1.7 billion times each day looking fresh? In the case of Diet Coke—introduced in 1982 and the first product extension of the Coke name—it means (for now, at least) a limited-edition can slated to hit stores in early September.
- Retaining the can’s familiar bare-aluminum background, the new design super-magnifies a segment of the existing logo right where the “D” of Diet rests atop the “k” of Coke. The result is a modish and (for a global brand) even daring design that refuses to reveal the brand’s complete name. Which is the beauty of having a brand that’s already the best-selling diet soft drink in the world: You don’t have to worry about stuff like that.
- The revamped Diet Coke cans—the work of San Francisco-based design firm Turner Duckworth—will remain on store shelves for an undisclosed period. In fact, just about everything about these 12 fluid ounces of design flair is undisclosed. The usually press-release-happy folks at Atlanta headquarters are playing this one surprisingly close to the vest, sending out cases of the new Diet Coke to “trendsetter[s] in the fashion and design world,” according to the accompanying card, but saying little else publicly. However, William White, group brand director for Diet Coke and Coke Zero, Coca-Cola North America told Adweek in an email: “Fall is all about new looks and new energy, making this a great opportunity to give the Diet Coke can design a refreshing uplift that celebrates the season.” He added that “this new concept will only be around for a short time.” (www.adweek.com)
ACCEL GEL Named Official Sponsor of the 2011 SunTrust Richmond Marathon for the Second Year
- The SunTrust Richmond Marathon and PacificHealth Laboratories, Inc., a leading sports nutrition company and manufacturer of the patented 4:1 carbohydrate to protein formula in ACCELERADE, ENDUROX R4, and ACCEL GEL, announced that ACCEL GEL has been named the official gel sponsor of the 2011 SunTrust Richmond Marathon.
- This is the second year in a row that the SunTrust Richmond Marathon and PacificHealth Laboratories have teamed up for the event. It will provide extensive sampling and selling exposure for ACCEL GEL, the only gel with the 4:1 carb to ratio protein. On race day, November 12, 2011, assorted gels (vanilla, chocolate, and citrus orange) will be available at Miles 14 and 21 to the over 7,500 participants on course to help them cross the finish line. PacificHealth Labs’ recovery drink, ENDUROX R4, is also the official recovery drink and will be available to runners when they complete the course. ENDUROX R4 contains the patented 4:1 ratio of carbs to protein that helps increase glycogen replenishment and decrease muscle damage, and ultimately helps runners recover faster.
- “We are very pleased with the continued association with the SunTrust Richmond Marathon,” stated Fred Duffner, President and CEO of PacificHealth Labs. “This venue is one of the top draws in the fall season and supports our focus on our core business and expanding the awareness of the benefits of PacificHealth products on performance and recovery.” (www.sponsorship.com)
Fidelity Investments and The National Football Foundation Announce New Sponsorship
- The National Football Foundation (NFF) & College Football Hall of Fame and Fidelity Investments, a leading provider of not-for-profit workplace retirement savings plans in higher education1, today announced an expanded initiative between the two organizations to celebrate the scholar-athlete ideal and a commitment to higher education.
- As part of the agreement, Fidelity will serve as the first presenting sponsor of the NFF National Scholar-Athlete Awards in the 53-year history of the prestigious program, which honors outstanding student athletes with scholarships to continue their post-graduate education. The firm will also sponsor the NFF Scholar-Athlete Reception and additional activities associated with the NFF Annual Awards Dinner honoring the annual NFF National Scholar-Athlete Class in New York City in early December.
- To promote the achievements of the recipients, Fidelity will work with ESPN to produce a series of short television segments about the 2011 NFF National Scholar-Athlete Class, which annually recognizes the top 15 individuals in the country for their academic success, football performance and exemplary community leadership. The segments will also include a special feature on the recipient of the William V. Campbell Trophy winner, who is recognized by the NFF as the top football scholar-athlete in the nation. All of the segments will air on ESPN’s College Football Live on Thursdays from September through early December. (www.sponsorship.com)
Wyndham Takes PGA Tour Event On Vacation
- While companies title PGA Tour events for a myriad of reasons, the marketing rational behind most deals typically can be boiled down to two main objectives: building visibility and customer engagement. Demonstrating that a golf tournament can be leveraged well beyond media exposure and client hospitality, Wyndham Worldwide Corp. is activating this week’s Wyndham Championship presented by BB&T to engage multiple stakeholders ranging from employees to B2B and B2C customers. (www.sponsorship.com)
Partnerships Drive New Marketing Strategy For Microsoft Video Game
- The rollout of motion-sensing devices and other new product introductions continues to spur new sponsorship activity in the video game category. Indeed, Microsoft Corp.; Nintendo of America, Inc.; and Sony Computer Entertainment America Inc. have all signed new deals over the past several years to promote their latest-and-greatest game-playing platforms. Those include Microsoft’s Kinect and Sony’s PlayStation Move. (www.sponsorship.com)
MedjetAssist Named Official Medical Evacuation Program of the LPGA
- The LPGA (Ladies Professional Golf Association) announced today that MedjetAssist, the premier emergency medical evacuation membership program for travelers, will be a new partner, serving as “Official Medical Evacuation Program of the LPGA.” As part of the agreement, MedjetAssist will protect LPGA Tour players and staff.
- “The services that MedjetAssist offers to our players align very well with the global nature of the LPGA business,” said Jon Podany, LPGA chief marketing officer. “As Golf’s Global Tour, LPGA players and staff are constantly away from home and, through this partnership with Medjet, will have efficient access to medical transfers when necessary.”
- “We are honored that the LPGA has chosen MedjetAssist as a partner,” said Roy Berger, President and CEO of MedjetAssist. “The LPGA brand is synonymous with athletic excellence and we are proud to be affiliated with such an outstanding organization.” (www.sponsorship.com)
Agricultural Trade Associations Sprout New Sponsorships
- Sponsorship activity on behalf of agricultural trade associations is starting to show some signs of life. Recent deals include the Idaho Potato Commission, which this month announced six-year naming rights for the Humanitarian Bowl in Boise, Idaho; and the American Pistachio Growers, which inked a new partnership with USA Water Polo. Agricultural trade associations largely use sponsorship to accomplish three objectives: promote the healthy attributes of their products, gain sampling rights. (www.sponsorship.com)
A Foot Care Company Shifts to Sell a New Line of Shoes
- In an effort to reimagine Dr. Scholl’s as a shoe brand and expand its reach, Dr. Scholl’s Shoes, the shoe division of Dr. Scholl’s, which is licensed by the Brown Shoe Company under Merck Consumer Care, has started an advertising campaign to promote its new line of about 80 shoe designs for women and men. The shoes include boots, sneakers and even an updated version of its Original Exercise Sandal, now with a lighter heel made of plastic instead of wood. The shoes cost $50 to $90.
- “What really distinguishes us is that this brand has over a 100-year heritage of making products that are good for our customers’ feet,” said Maureen McCann, the vice president of wholesale marketing at Brown Shoe.
- To help create the campaign strategy, the company conducted market research and found that while people were familiar with the brand — more than 90 percent said they knew and had an “emotional connection” to the Original Exercise Sandal — many people did not know that Dr. Scholl’s made other types of shoes.
- “Insights from our consumer research told us that we needed to reinforce the footwear element of the brand,” Ms. McCann said in an e-mail. To do that, they added the word “shoes” to the brand name and began changing to the new name this spring. (www.nytimes.com)
Barneys Teams With Lady Gaga For Holidays
- Luxury department store Barneys New York is enlisting music superstar Lady Gaga to reinterpret Santa’s workshop as part of its holiday campaign.
- The retailer has worked closely with Lady Gaga to design a range of exclusive, limited-edition, small gift items, which will be available for a limited time only at Gaga’s Workshop. In addition to Gaga’s Workshop in New York, a selection of items from the collection will also be available at Barneys New York locations nationwide and online at Barneys.com.
- The retailer will donate 25% of sales from all items featured in the workshop to a charity of Lady Gaga’s choice.
- For the first time ever, Barneys New York will convert an entire floor of its Madison Avenue flagship for the holiday initiative. Starting in mid-November, Gaga’s Workshop will be brought to life throughout the fifth floor of the Men’s Store and the store’s Madison Avenue windows. Barneys New York CEO Mark Lee said it would be the largest and most encompassing holiday theme ever mounted by the upscale fashion retailer. (www.mediapost.com)
- Sara Lee Deli is launching its first integrated multimedia ad campaign.
- Taglined “Meat Brought to Perfection,” the campaign seeks to build trial of the pre-sliced and sliced-to-order meats by emphasizing their premium quality and driving people to their location in grocery deli sections.
- The campaign, by TBWAChiatDay, includes 30-second radio ads, two digital ads (launching on iVillage, Centro, MyWebGrocer, AllRecipes and SpecificMedia), billboards, public relations, FSI’s and in-store promotions.
- The markets for the campaign are Boston, Charleston, S.C., Chicago, Cincinnati, Columbia, S.C., Dallas, Grand Rapids, Mich., Greenville, S.C., Indianapolis and Norfolk and Richmond, Va. (www.mediapost.com)
Office Depot Uses Mobile, Roker For Back-To-School
- Office Depot is launching a nationwide mobile back-to-school promotion aimed at enticing people to come into the stores for a chance to win a $100 gift card.
- The promotion runs through Sept. 11 and will award a total of $500,000 in instant gift cards. Ads feature TV personality Al Roker as the spokesperson. The campaign includes TV, in-store and out-of-home print advertising, email, and online advertising on Facebook, Twitter and OfficeDepot.com.
- Momentum Worldwide created the promotion with SpyderLynk, a marketing technology company and creator of the SnapTag, a logo-centric QR Code alternative.
- To participate, Office Depot customers snap and send a picture of the SnapTag, featured on in-store displays, with a standard mobile camera phone to find out if they have won a $100 Office Depot mobile gift card, which is redeemable instantly in-store. Winners will then take their mobile phones to the checkout to redeem their prize. Participants will also receive mobile coupons to save on back-to-school products. (www.mediapost.com)

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