Nothing But Net: TheWB.com

A little more than two years ago, Warner Bros. Television Group (WBTVG) announced it would make hundreds of movies and television shows available for purchase over the Internet. They’ve come a long way since then.

Today, WBTVG announced digital distribution deals with Dailymotion, Joost, Sling Media, TiVo and Veoh. It already has a channel on AOL and a surprisingly dynamic Facebook application, with a trailer that ends “the next great network will not be televised.”

“The launch of TheWB.com [beta] represents a natural progression of the Warner Bros. Television Group’s digital strategy and complements our core business, which is based upon episodic storytelling, first-class distribution and providing value to partners through advertising in a premium environment,” said Bruce Rosenblum, president of WBTVG.

The move also solidifies the continued shift toward total broadcast-Internet convergence, especially since Warner Bros. will be adding original short form content. Currently, the WB beta site is offering full episodes of All Of Us, Blue Water High, Buffy the Vampire Slayer, Dangerous, Friends, Gilmore Girls, One Tree Hill, Smallville, The OC, and Veronica Mars.

What will be especially interesting is if the new site might even provide viewers another opportunity to resurrect some shows that did not perform well according to Nielsen ratings. Several had developed strong Internet fan bases, including Veronica Mars, Moonlight, and Supernatural.

Moonlight fans found out their show was cancelled in May while Veronica Mars fans are still working hard to see their favorite detective move from the small screen to the big screen. (Supernatural has at least one more season left on The CW; we hope many more.) According to fans, all of these shows have a following that is not well represented by Nielsen.

For WBTVG, the move toward an all-digital network might also provide marketers and advertisers with more options than investing exclusively in their own original content to reach an audience that is already outpacing traditional media. The primary advantage for WBTVG over other networks seems to be that they are unencumbered by any attachments to traditional media. For them, it’s simply full steam ahead.

Inking Deals: News Corporation / NBC Universal

While CBS seeems to have slowed under the sheer weight of nuts sent by fans over the cancellation of Jericho, News Corporation and NBC Universal are speeding ahead with the addition of FUEL TV, Oxygen, SPEED, Sundance Channel, and TV Guide as content partners committed to bring programming to Web video consumers. The new deal was announced last Wednesday.

"Each of our new content partners have a reputation for creating premium entertainment experiences designed to fulfill television viewers' more eclectic needs," said George Kliavkoff, chief digital officer, NBC Universal and interim CEO of the joint venture. "We are delighted they have all agreed to contribute their compelling content to our venture, which will help ensure our ability to satisfy the more personalized demands of the growing number of Web video consumers."

Their plans are smart, very smart. FUEL TV and SPEED will distribute both partners' short-form content across the distribution network and host their programming on its destination site. The venture's distribution network currently consists of AOL, MSN, MySpace, Yahoo, Comcast, and CNET. The strategy seems a stark contrast to Joost, which looks great, but has come under increasing criticism that it is the slow road to developing Web television.

According to ReportOnBusiness.com, Joost has been further slowed by Viacom Inc.'s billion-dollar lawsuit with Google Inc. for "not doing enough to prevent copyright-protected content."

The slowdown was also made apparent a few weeks ago, when the new chief Internet strategist at CBS Corp. quipped to the Wall Street Journal that the network's ambitious Innertube project launched in 2006 should be renamed "CBS.com/nobodycomeshere." (Ironically, one of Innertube's most watched shows was Jericho and those fans aren't likely to come back until CBS gives the series another shot.)

The lesson to be learned practically flies out of the pages of Laurence Haughton's book, as recently summed at Recruiting Bloggers, "speed is the ultimate customer turn on." Don't obsess about perfection. Good enough is good enough.

Speed seems to be on the side of News Corporation and NBC Universal with their plans to feature thousands of hours of full-length TV programming, clips and movies, representing premium content from close to 20 networks and television and film studios. With the addition of CNET and Comcast, the new venture will include E!, Style, G4, Versus, and Golf Channel. The joint venture, NBCU/News Corp., will have offices in Los Angeles and New York.

We first alluded to some major changes in television back in August 2006. Now, in a little less than a year, the entire entertainment landscape is gearing up for major changes. When you add better content to the new technology due out this year, devices that allow people to watch programming whenever and wherever they want, it seems to me that TV will never be the same.

As NBC Universal's Beth Comstock said in April: “If you have great content … you’re always going to find distribution platforms.“ Of course, that assumes you don't cancel content people want.

Digital Media Moving Forward: Motorola

According to ADWEEK, Motorola has signed on to sponsor "The Burg," a Web comedy series of nine four-minute episodes that explore the hipster haven of Williamsburg, Brooklyn. Motorola products will be featured in the programming, which will NOT include pre-roll spots. The show has the potential to reach 5 million viewers.

While a few steps shy of fully capitalizing on social media, it does represent what will become a reoccurring theme in how companies view digital media and advertising. The product placement deal with with VideoEgg, which will syndicate "The Burg" through its network of social networking sites, was brokered by Motorola and DraftFCB.

If successful, this could represent another boon for DraftFCB, proving that there is life after Wal-Mart. The product placement deal comes on the heels of winning Kmart's $200 million account. It also suggests that DraftFCB is taking integrated social media seriously whereas some think other large agencies might not be.

Matt Heinz, senior director of marketing for HouseValues, Inc., recently began his article "Why Agencies Should Be Terrified" for iMediaConnection by speculating: “Ad agencies are in big trouble and may very well become just a memory five to 10 years from now. That's a bold prediction, for sure, but the marketing world is offering far more support for that suggestion than proof against it."

"The best, most brilliant, most effective marketing ideas of the past of couple years have not come from big ad agencies. They've come from small shops, and more often from individual consumers," he wrote. "Part of the problem lies in what big ad agencies have traditionally done well, vs. what works in marketing today. Even 10 years ago, traditional media was king. Great creative, placed correctly in the right media channels, could build mindshare and drive consumers to action."

There is almost an irony in that one of the most peer criticized ad agencies seems to be testing the waters for what might be next. No matter what you have to say about Howard Draft and DraftFCB, you have to respect them if the guess it is true. There is little doubt that more agencies and companies need to expand their horizons. If you listen closely enough, the argument isn't just being made by small shops like mine, it's starting to be made by companies like NBC Universal, Viacom (through Joost), and MTV.

The bottom line is that as distribution platforms change so will the face of advertising. Sure, we don't really know if these changes will take place in the form of VideoEgg's idea to show a small ad window on the bottom of the video player that viewers can click on to find product information ... or something more robust like we (Copywrite, Ink.) have in mind. But either way, there is no doubt that times are changing.

"There's a trend to media consumption in social networks," Troy Young, VideoEgg's chief marketing officer, told ADWEEK. "They haven't had as much success building destinations, so they're looking at hitting users wherever they're spending their time."

Hmmm... no wonder Harris Interactive's research into mobile advertising seems appealing. While not perfect (what is, really?), it certainly provides a well thought out glimpse into the future.

Advertising Research: Harris Interactive

Harris Interactive, a full-service market research firm with more than 40 years' experience, provided a free webinar on
Apr. 26 that treated participants to the future of integrated media, especially as it applies to mobile advertising (cellular phones).

Led by Judith Ricker, (president, marketing communications research) and Joseph Porus (chief architect, technology research practice), the webinar presented preliminary data that suggests when consumers are educated, mobile advertising will work in some exciting (perhaps spooky) ways. The research is solid, and with some minor modifications in my opinion, some of their ideas have a potential that exceeds current consumer imagination.

Ricker and Porus are spot on in recognizing that the Internet is capturing a higher viewership than traditional media (no wonder Viacom is ready to invest a half billion dollars in digital media); that continued breakthroughs in mobile technology (such as the Apple iPhone) will change the way we perceive integrated digital communication (innovation); and that the time has come for companies who view their communication as decentralized to rethink that old model (I'm big on integrated communication).

According to Harris Interactive, mobile advertising is particularly adept at strengthening the bond between the brand and the consumer, communicating messages, and changing behavior. I agree, absolutely. One question that remains is: are consumers ready?

From Harris Interactive's research, only 10 percent of consumers are open to the idea of mobile advertising. However, when paired with incentives, this number jumps to 36 percent. When I first wrote about this subject, I wasn't impressed with these numbers. However, when applied with the Revised Technology Adoption Life Cycle, 36 percent is enough momentum to break into the mainstream.

That is not to say adoption is not without potential pitfalls. Of those who expressed interest in mobile advertising, 66 percent said that consumer choice (the ability to opt in or out) is paramount to ensuring public acceptance. Ricker and Porus reinforced the point several times, saying that as soon as consumers begin to feel like the advertising messages they receive are spam, every potential outcome could be limited by legislation. I hope not because Harris Interactive has some stellar ideas. Here are four subject area highlights (though there are much more worth consideration):

Test Message Ads. Harris Interactive places weight on text messaging because 56 percent of those surveyed said they would prefer it over other forms. I differ here, but only because the consumer's opinion seems attached to how they perceive cell phones right now. Text message ads also have the potential to be the most intrusive. Where I see them best applied is as opt-in sale announcements to remind consumers when Macy's is having a white sale or Borders has a book signing.

Locational Advertising. Harris Interactive suggests consumers can be pointed to a sales rack with the exact dress they are looking for (though the concept does not have to be this precise). I find it spooky that advertisers will know where I am all the time with new GPS features in our phones. However, when I asked my wife, she thought that was a great idea!!! So who I am to say?

Content Advertising. Harris Interactive broke it out differently, but I see it as all the same: entertainment, news, games, social media, downloads, ring tones, and Web browsing. If the foundation is built right, content developers — blogs, digital media, etc. — could receive a real financial boost provided content distribution remains open. Consumers would, in my opinion, have no problem with content advertising if that meant their options could be provided for free (Joost is playing with several ideas right now; Revver has a great one in place).

However, as Harris Interactive pointed out, everyone wants a piece of the action: content developers, content distributors, and service providers. At the end of the day, who knows what it will look like. I have some hunches, but at the moment, they are only that. Despite these hunches, I'm hoping content developers come up on top.

Consumer Profiling. This is perhaps my least favorite trend, but consumers see it differently. Overwhelmingly, as Harris Interactive presented, consumers embrace profiling because they can limit their own advertising exposure based on preferences. They already accept it at ITunes, Amazon.com, and with Internet cookies. So, I'm in the minority. Personal preferences aside, writing individually specific ad messages would benefit someone in advertising like me.

Certainly, there is no way everything presented could be confined to a single post. However, the topic is important and something that I'm certain I'll be revisiting time and time again. Sure, I have some concerns, especially about advertising becoming more pervasive and losing its effectiveness as a result. But as an ad guy, it's part of my job to figure out the best way to solve that problem.

In sum, kudos to Harris Interactive and its work in the field. I intentionally entered as a skeptic to see how difficult it would be to come out a believer. While I could discuss some finer differences, the net result is that it was not difficult at all. Harris Interactive is an excellent research resource in subject matter and my compliments on seeing them take the lead.

Surfing TV: Revver, Joost, And Everybody

Revver was one of the very first video-sharing platforms to track and monetize videos as they spread virally across the web. As such, we've noticed some interesting concept ideas that are already popping up there, including viewer-driven content like this video from itsallinyourhands.com. The audience votes on the outcome.



At the the same time, Viacom Inc., a leading global entertainment company, and Joost, the world's first broadcast-quality Internet television service, are gearing up for a professional distribution channel with Viacom being a key content partner. MTV Networks, BET Networks, and Paramount Pictures are all part of the partnership to provide television and theatrical programming on demand. (The latest buzz is all about beta invites, by the way.)

Wow. It seems like only yesterday that we were talking about Beth Comstock, president of Integrated Media, NBC Universal, and her company's partnerships with Fox/Newscorp, MSN Video, and SoapBox. Well, not yesterday. More like ten days ago. (And we haven't even had time to talk about Apple TV.)

Look, nobody really knows what the future broadcast-Internet industry (the term digital media has stuck) will really look like in the months ahead. But one one thing is certain. Shorter segments, greater diversity, and an initial shortage of quality content providers will all play a major factor in the foundation of digital entertainment.

Meanwhile, most companies are still thinking of all these trends in terms of "advertising reach" as opposed to "company-driven content development." Hmmm... I'll give them some more time. The writing already seems to be on the, er, wide screen … what, with The Coke Show just one step away, as they ask for visitor-generated characters, songs, skits, and more. Its first challenge ends in just 15 days.