TODAY'S COMMENTARY by Jack Myers Thursday, March 1st 2007

Alternative Media Spend Will Pass $100 Billion in 2007; Magazine Industry Digital Award Winners; Time Warner; Maven; CBS Exec Joins Backchannelmedia

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By Jack Myers
Jack@Mediavillage.com

Time Warner Never Interested in Maggio's erinMedia

Time Warner has denied published reports that it either committed to or seriously considered an investment in erinMedia, which had confirmed it was in final negotiations for a $25 million infusion of capital from Time Warner, Publicis and Boston-based Spark Capital. An executive at Publicis confirmed the media agency had been in active discussions with erinMedia CEO Frank Maggio. After Nielsen announced a comparable service to Erin's proposed set-top box based research system, Maggio is reported to have closed down the company. Jack Myers Media Business Report reported on both the initial reports of the investment and the shut-down. Initial efforts to reach Time Warner for comment were unsuccessful, but the company has advised they had received a voice mail from erinMedia exploring possible interest in an investment and briefly discussed it internally, but decided not to pursue the investment and did not return the phone call.

Maven Set to Roll Out Expanded Internet TV Platform

Next week, Maven Networks Inc, a leader in Internet video distribution, will announce partnerships with at least two leading media companies for a next generation internet TV platform. With content owners deciding whether they should work with Google and YouTube or build their own broadband video content distribution model, Maven has focused on developing a new system that enables companies to manage and profit from their own in-house service using the Maven product. Details on the new service will be released Monday.

Alternative Media Spend Leads Hyper-Transformation of Ad Models, says PQ Media

Alternative advertising and marketing spending grew approximately 20 percent to $97.5 billion for year-end 2006, with each of the 22 segments growing at double-digit rates, according to PQ Media data from its Alternative Advertising & Marketing Outlook, scheduled for release next month. The growth was "fueled by rapidly expanding segments such as satellite radio advertising, consumer-generated media, mobile marketing, online video advertising and alternative out-of-home advertising," reports PQ Media CEO Patrick Quinn. Among the largest segments of alternative advertising and marketing in 2006 were event marketing, national online advertising, event sponsorships, interactive marketing and product placement. PQ Media is forecasting similar growth for alternative advertising and marketing spending in 2007.

"We are experiencing another hyper-transformation of communications models, akin to what happened with the advent of newspapers, radio, television and the Internet," commented Quinn. "The media convergence envisioned in the 1990's with the rapid expansion of the Internet is back; it simply went on vacation for a few years while the media business worked through some economic issues. 2007 and 2008 are shaping up to be the era of alternative media strategies, with a remarkable evolution of the advertising and marketing ecosystem expected, driven by market forces in this seminal period."

Quinn singled out traditional broadcast networks, and NBC in particular, for "pretty major moves to capitalize on word of mouth, social networking, and consumer generated media to shore up their business model. They have put a focus and premium on branded entertainment marketing. Jeff Zucker and others have made it clear there will be more emphasis on program placement and event marketing and sponsorship. They are looking at changing tactics, shifting focus, management and business models. They see it as the future." Quinn believes "2007 is shaping up to be the year of alternative marketing and advertising strategies. We are already seeing alternative and traditional companies looking at branded entertainment marketing, event sponsorships, webisodes, consumer generated media, blogs, podcasts, growth into alternative out of home, and out of home video networks. In a lot of cases, traditional media is best positioned to capitalize on the hyper change transforming communications models."

"Some alternative media strategies such as product placement," Quinn adds, "that were novel marketing packets just a couple years ago, have emerged worldwide as key marketing strategies. This goes along with marketers seeking all important emotional connections*. Marketers are scrambling worldwide to find better ways to make emotional connections with consumers. As we see more media being launched and more alternative tactics being tried, people are bombarded with more messages than ever. Emotional connections with consumers are more important than ever."

For more information, contact Patrick Quinn at pquinn@pqmedia.com

CBS' O'Donoghue Joins Backchannelmedia

Backchannelmedia Inc., an advanced technology solution provider for ad response tracking, announced today thatShane O'Donoghue, former vice president of technical services and quality assurance for the CBS Television Network and current president of ODA Consulting, has joined the company as senior vice president, engineering. With more than 15 years of experience working with leading broadcast and cable companies, O'Donoghue will be responsible for developing the core Backchannelmedia technology that is being developed to bring accountability to television advertising for both viewers and advertisers.

Join the Conversation on the Conversation

Joseph Jaffe,author of Life After the 30-Second Spot, is now writing his next book, Join the Conversation: How to Engage Marketing-Weary Consumers with the Power of Community, Dialogue and Partnership. In conjunction with the book Jaffe is piloting a landmark survey on Conversational Marketing in association with the Society for New Communications Research (SNCR). The results will be released along with the book in September.

The survey is being conducted among the entire marketing communications industry, but primarily among brand marketers. Jaffe is asking them to complete a short 10-15 minute survey and to "spread the word" (that is the whole point at the end of the day!) andpass this request along to brand marketers, whether your colleagues, management or clients.

The link to the survey is: http://www.twisurveys.com/SNCR2007/. (Survey is open thru March 5).

Magazine Industry Digital Awards Announced

The winners of the first-ever Magazine Publishers of America (MPA) Digital Awards were announced yesterday by Nina Link, President and CEO, MPA, and Colin Crawford, SVP Online, International Data Group. The 2006 MPA Digital Awards honors excellence and innovation of magazine brands on all digital platforms in 11 categories. The "Website of the Year" category recognizes excellence and innovation in content, design, functionality and usability in five sub-categories: Business/News, Fashion, Entertainment/Celebrity, Sports/Enthusiast and Service/Lifestyle.

WEBSITE OF THE YEAR

Business/News

Winner:

TIME.com

2nd Place:

BusinessWeek.com

3rd Place (tie):

Forbes.com

Technology Review

Fashion

Winner:

InStyle.com

2nd Place:

Brides.com

3rd Place:

Style.com

Entertainment/Celebrity

Winner:

EW.com

2nd Place:

People.com

3rd Place:

TVGuide.com

Sports/Enthusiast

Winner:

SI.com

2nd Place:

PopSci.com

3rd Place:

1UP.com

Service/Lifestyle

Winner:

NYMag.com

2nd Place:

AARP The Magazine Online

3rd Place:

Wine Spectator Online

MAGAZINE BLOG OF THE YEAR

The "Magazine Blog of the Year Category" recognizes creativity, voice, writing style, the use ofÂ

hyperlinks and multiple voices to encourage a conversation.

Winner:

PCMag.com "Gearlog"

2nd Place (tie):

FineWoodworking.com "Glue Tube"

Newsweek.com "On Faith"

Seed Science Blogs "Frontal Cortex"

Time Out New York "The TONY Blog"

Wine Spectator "James Suckling"

BEST ONLINE VIDEO OR VIDEO SERIES

The "Best Online Video or Video Series" category recognizes creativity & content in online video.

Winner:

Concierge.com "24 Hours in..." Series

2nd Place:

Technology Review "Telescope Series"

3rd Place:

Forbes.com "Street Talk" Series

BEST PODCAST OR PODCAST SERIES

The "Best Podcast or Podcast Series" category recognizes creativity and content in online audio.

Winner:

National Geographic Traveler "Walks of a Lifetime" Series

2nd Place:

Popular Science "Contributing Troubador" Jonathan Coulton Series

3rd Place (tie):

Newsweek.com "Newsweek On Air" Series

Parents Magazine Podcast Series

BEST MOBILE STRATEGY

The "Best Mobile Strategy" category recognizes the innovative and effective use of the mobile platform.Â

Winner:

Epicurious "Epi to Go"

2nd Place:

SI Mobile Swimsuit

3rd Place:

Wine Spectator Mobile Companion

BEST ONLINE COMMUNITY

The "Best Online Community" category recognizes the best use of forums, chat rooms, user-generated

content and other interactive features that engage readers.

Winner:

1UP.com Clubs

2nd Place:

The Nest

3rd Place (tie):

Backpacker's Trail Network

Epicurious Forums and Member Recipes

BEST WEB-ONLY TOOL

The "Best Web-Only Tool" category recognizes the best web-only interactive features.

Winner:

PopSci.com Best of What's New

2nd Place (tie):

AOPA Pilot 40 Top Technologies

Runner's World Smart Coach

SI.com MySI

Wired.com Interactive Bionic Tour

The MPA Digital Awards website is www.magazine.org/digitalawards. View highlights from the Magazines 24/7 conference atwww.magazine.org/digitalconference.

* Emotional Connections is a registered trademark of Myers Publishing LLC for its research and publishing products and services.

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