Archive for the ‘Online Media’ Category

Article By: Joshua ‘The Red’ Russak (Red@aclion.com)

Forbes Article Reformed Hacker Looks Back, brings to light just how vulnerable Web2.0 technology is to hackers like hacker legend Kevin Mitnick.
Kevin David Mitnick is a computer security consultant who was a controversial computer hacker in the late 20th century. In 1999, Mitnick admitted to the authorities [...]. Mitnick served five years in prison, of which four and a half years were pre-trial, and eight months were in solitary confinement. He was released on January 21, 2000. During his supervised release, which ended on January 21, 2003, he was initially restricted from using any communications technology other than a landline telephone. Mitnick fought this decision in court, and the judge ruled in his favor, allowing him to access the Internet. (Wikipedia)
Where’s Kevin Now? Mitnick now runs Mitnick Security Consulting, a computer security consultancy (Wikipedia).
As for the weaknesses in Web2.0, quoted from Forbes:

What do you see as the biggest threats to cybersecurity today?
Cybersecurity used to be about the network or operating system. Now it’s more at the application layer. Companies and their contractors build their own applications hosted on a public Web site, and the people who write them aren’t trained in secure coding. The mistakes they make can be leveraged to break the system.

…and he’s right. People are pumping out web-based applications all the time and I imagine the only protection they have remain vulnerable hackers like Kevin. I imagine this will become a bigger issue as software becomes a thing of the past and everything is web-based.

Article By: Joshua ‘The Red’ Russak (Red@aclion.com)

As usual, my Friday blogging habbits seem to lead towards a selected “Viral Video”…which leads me to my 4th “VIRAL VIDEO OF THE DAY”…but at the same time I totally got sucked into Reuters YouTube Posting covering Michael Phelps and his Marketing success.

Michael Phelps is a “Marketing Dream” to companies like Speedo, AT&T, and Visa. He earns $5mm a year in endorsements, but can expect more post-Olympics. But none of this could happen without the Marketing Magic behind Phelps, Octagon.
Want a little humor? Well, according to the Video above, VISA immediately launched a commercial congratulated Phelps on the most metals in Olympic History, yet the marketing firm behind Phelps hasn’t seemed to update their own web-site: http://www.octagon.com/worldwide-overview/athletes-and-personalities. Check it out…they still have him down for “8″. Looks like VISA was a step ahead
…Now that’s some good Blogging right there! As for Phelps, have fun buddy!

Article By: Joshua ‘The Red’ Russak (Red@aclion.com)

French advertising company Publicis Group has acquired the Performics Search Marketing business from Google. Performics housed more than 200 search marketing specialists and since its 1998 inceptions has expanded from Chicago, San Francisco, New York, London, Hamburg, Sydney, to Singapore and Beijing.
According to MediaPost article, Publicis Acquires Performics From Google, Expands Search Marketing Capabilities

Terms of the deal were not disclosed, but Publicis, the parent of Starcom MediaVest Group, Zenith Optimedia Group, Digitas, Denuo, and agencies such as Leo Burnett and Saatchi & Saatchi, said Chicago-based Performics would be integrated into Publicis’ new VivaKi Nerve Center. [...] Google did not comment on the reasons for its divestiture of the unit, but in a statement, Chairman-CEO Eric Schmidt said, “We look forward to working with Performics as a partner.”

According to an AlleyInsider article, Google Sells DoubleClick’s SEM Business To Ad Conglom Publicis (GOOG)

Publicis has been “cooperating” with Google for more than a year, but we’re not exactly sure what that means — mostly because the companies didn’t reveal any details in a cryptic press conference in January. They did say that “Google would exchange its technological know-how for Publicis’s analytical and media planning expertise,” according to Reuters. We’re assuming this deal won’t have an effect on their prior relationship.

So why would a Search Company giant sell of part of their search services? After Google acquired DoubleClick, the SEM portion created a “conflict of interest” for a search company to own a search engine marketing company under a different entity. Google just took on the Affiliate Marketing division of Performics and sold the rest to to Publicis.
A great move by Google, but I think everyone is asking the same question: “At what cost?”

Article By: Joshua ‘The Red’ Russak (Red@aclion.com)

AC Lion specializes in sales and technology recruitment and in particular the nexus between the two. I recruited there for close to a year before I was promoted to Marketing/Sales Coordinator handling PM, WebDev, DBA, Social Media and other Marketing aspects. Really, it’s a high level of leg-work combined with flexible schedules and great sources of motivation and collaboration.
Over the past decade, AC Lion has developed a leading reputation in the marketplace by helping the industries’ most innovative companies maintain their competitive edge by sourcing and placing superior talent.
In our industry, knowing people delivers results. Whether building a new sales team, replacing a corporate executive, transitioning to the interactive world or augmenting the technology team – our clients come to AC Lion because we know the people that know the industry.
Our vertical (industry) specialists work with top corporate executives from a variety of firms within the media (traditional and interactive agencies, publishers, and client side), 3rd party technology/software providers, emerging technology (mobile wireless/PDA, IPTV), e-commerce, and financial industries.
In today’s fast-paced and ever-changing environments, it is critical to have a specialized recruiter with an established track record and a broad network who truly understands your needs. Here at AC Lion, our vertical specialists focus all of their efforts in your space. Because of this philosophy, we know your company, your competitors and your clients.
Check out our Areas of Expertise:

Article By: Dan Goldsmith (Dan@aclion.com)

I was initially very very concerned about yesterday’s article in AdvertisingAge by Abbey Klaassen “$80 Billion? Online Display Market Is Being Overhyped”. The last time I read a headline to an article of similar tone was July 2000 when the WSJ was reporting (well back in section B) that Visa Card was scaling back its online banner ad spend due to poor ROI. That story was a leading indicator of what eventually became the dot.Com implosion (March Madness? Maul Street? Anybody? Bueller…..Bueller……..) So to say the least my heart skipped a beat as I wondered just what had happened to inspire such an alarmist headline. The answer………NOTHING! Operative word being – alarmist.
Ms. Klassen’s initially makes dramatic statements like…

• “The exuberance isn’t so rational this time, either”. She seems to suggest that the current state of online advertising is as unfounded as it was in’00-’01.
• “Its déjà vu all over again…” as she critiques Google’s acquisition of DoubleClick which most experts seem to agree was a great acquisition for Google and MSFT’s attempt at Yahoo which is based on MSFT’s desire to compete along a different vein of online spend (search – not banner as the article would eventual try addressing).

Ms. Klassen must have a personal issue with……well…..facts as she doesn’t really use them to make her points in this article. I’m not pointing fingers saying “this is a poorly written piece”, but unless there’s evidence to support her claims, I just see her post as an attempt to gain more readers. Oh, and the “simply fabulous” quotes continue…

• “….And we know by now that measured-media growth has pretty much ground to a halt as marketers continue to increase their dollars in unmeasured disciplines such as web development, public relations, and database marketing at the expense of paid advertising.” NO SOURCE! NO FACT! NO NUMBERS. This is one’s simple opinion.
• “…and digital is faring better than its more traditional counterparts, bit its impossible to say its growing at the rate it would have were the economy booming or even normal.” I don’t quite know what her point here was. She seems to suggest that internet growth is stumbling but doesn’t care to source 1 fact behind her opinion. As well, she seems to suggest that our inability to compare current growth rates and economic factors to economic factors that don’t exist as a valid reason to be concerned about the overall value impact and sustainability of the internet advertising space.
• “And jobs in the space? They declined last month too” Sure would love to see some numbers behind that too because we are wrapping up a fantastic July!

She wraps up this article by suggesting that in 5 and 10 yrs display advertising will be only one segment of a more diversified online pie, but that’s just a basic reality that anyone in the space understands, not really a point and certainly not a conclusion that Online Display is “overhyped”

Article By: Michael Adler (Mike@aclion.com)

I am the Managing Partner at AC Lion and I bring over 12 years of investment banking, venture capital and sales experience to AC Lion. I recently received a newsletter from Rutberg & Company that so perfectly laid out a concise summary and perspective on the key digital media industry events relevant to private equity firms and companies. The newsletter implications included Rutberg & Company’s perspectives, adding their own observations, hypotheses, and investment theses. A lot of that information should be respected as exclusive Business Intelligence of which they have requested to remain confidential. Below, I’ve included some of the more relevant info to our space and leave room for you to formulate your own hypothesis:

• During the one month period from June 1 through June 30, 62 private digital media companies announced $416.7 million in venture capital financings.
• Investments were primarily in the Applications, Content Publishers, and Advertising Infrastructure sectors.
• There were also 37 M&A transactions announced during the period, including Verizon Wireless’ acquisition of Alltel, Bain Capital’s acquisition of D&M Holdings, and Microsoft’s acquisition of Navic Networks.

Here are a few graphs that depict and analyze venture capital and M&A activity for digital media during the first half of 2008….

Article By: Joshua Russak (Red@aclion.com)

I took it upon myself to get out “there” and meet influential online marketers within the online interactive space. The perfect venue presented itself: 212, New York’s Interactive Advertising Club, ran an event hosted by Undertone Networks – “Meet the Retail Marketer’s”. It took place at the Midtown Loft, and I’d say 200+ made the event.
They discussed the unique demands of retail marketing on the web for brick and mortar, brick and click and pure play initiatives.
• The Panel (left to right)

o Patti Freeman Evans, Research Director, Senior Analyst, Retail | JupiterResearch
o Jim O’Brien, Director, Customer Marketing, Barnes & Noble
o Eric Nadler, Danskin.com, VP Sales Operations/E-Commerce, Triumph Apparel Corp.
o Matt Bailey, Search Marketing Manager, Hanover Direct
o Anna Maria Virzi, Executive Editor, ClickZ Network

It was a great event, but at this point, you’re asking: “What made it so great?” and “What’s with the headline ‘Long Road To Hoe’?”
In response to Anna Virzi’s questions, “How would you approach cross-channel mixing of metrics and behavior?” (I think she was implying wrapping together both online metrics and in-store retail behavior along with other modes of advertising)….Patti Evans simply responds “It’s a Long Road To Hoe…” and continued on to explain that companies are attempting to analyze metrics in new ways.
Someone brought up the issue of in-store behavior to break out your PDA and see if the item is cheaper on the internet. In response to that, Patti explained how shipping costs, time and complexity may be a reason why people will choose the in-store option…in which Jim O’Brien quickly pointed out, “We (Barnes & Nobles) have an option to ship to store and to your home in the same day”.
Patti explained that it was necessary to “Figure out what the customer is looking to accomplish in that channel (ie: in store) and seeing if they can serve that need in another channel (ie: online)”.
QUICK HIGHLIGHTS:
- 3 of the 4 panelists were experimenting with Mobile (text based) Advertising
- 2 were interested in “Social Media” Marketing
- 1 panelist was experimenting with Video/Viral Advertising
Overall, it was informative, entertaining and worth the networking. So, in closing, what did I learn today? 2 things: Online Retail Marketers place a lot of emphasis on consumer behavior, yet most of their budgets are in Keyword Search.
So there ya go…next time, I suggest you head on over. For more information on upcoming events, check out 212 Here.

Article By: Joshua Russak (red@aclion.com)
For those of you who didn’t have a chance to review Online Ad Revenue for Q1 ’08:

This data research was conducted by the New Media Group of PricewaterhouseCoopers. The Internet Advertising Bureau (IAB) revenue report was launched in 1996 by the IAB.
What I found to be entertaining was to see how the IAB Reports this news versus other publishers/blogs:
IAB Says – Internet Advertising Revenues Up 18.2% YOY, $5.8 Billion for Q1 ’08, Second Highest Quarter Ever
Reuters Says – Online ad sales dip for first time in 3 years
AlleyInsider Says – Online Slowdown: It’s Here
…How do you see it? What do you think will happen with Q2?

Article By: Sabrina Tabarovsky (Sabrina@aclion.com)
Source:Article from the NYTimes.com. Read more here: Charging by the Byte to Curb Internet Traffic Brian Stelter
Time Warner is starting a new trial of “Internet metering” that would allow customers to select a monthly plan that imposes bandwidth limits and as expected charges you overage fees for exceeding your limit. Time Warner suggests this is fair for all users as some users known as “bandwidth hogs” can negatively affect the Internet experience for the average consumer. Yet, the internet is constantly growing and has become the place for all your entertainment needs. The technology company Cisco drives this point home by stating, “today’s ‘bandwidth hog’ is tomorrow’s average user.”
So why are media companies spooked? Even if the average user uses well below the limit the monthly cap causes users to worry about how much time they are spending online. This will lead some users to reduce their time online and this is accompanied by a reduction in trying new sites and applications. Video is the biggest hog of gigabytes and bandwidth caps will hurt online video advertising.
Mr. Leddy of Time Warner states, “media companies’ fears were overblown.” He states that Time Warner could not stop web video and that they are aware of having to increase capacity to accommodate video. Mr Leddy’s words do not reassure me and media companies should be shivering in their boots. As a dedicated Netflix user and a fan of the Office I am not too excited about this trial either. If metering is the way of the future I will feel conflicted and torn as the media companies keep pushing me to stay online as the number of television shows and games keep increasing and the internet provider is trying to hit me with overage charges for doing what I have been attracted to do. Video and video ads will probably be the most hurt by the caps, but I believe the results will be more catastrophic as this metering has the potential to reduce Internet growth.