16 Apr 2010

Digital developments . . . .

Addressable advertising has hit the news again.   The launch of BSkyB’s AdSmart service around their on-demand service Sky Player will provide the blueprint for integration on its satellite platform next year.   It marks the debut of a mass-market targeted substitutional advertising (TSA) model on linear TV in the UK.   It's aim?   To deliver more relevant messages to TV viewers plus the accountability and personalisation common to digital media, enabling TV ads being tailored to specific households, even individuals.  

That said, addressable TV advertising will take time to build up to a meaningful critical mass.   It certainly has the potential to bring new revenues into TV, an industry desperate to revive its ailing fortunes.   As ever, media agencies will need to build up their understanding of the technology . . . and frankly with many still struggling to grasp digital, it may take some time!   TV measurement needs to shift from outputs to outcomes in orer to match the sophisticated targeting and accountability of online - there is a long way to go yet.

Spotify is in the news again with reports that Lady GaGa earned a paltry $167 from Spotify's million plus streams of her hit Poker Face.   Whoops!   Below is a graphical representation of what music creatives earn from the various distribution methods (click image to see it larger).

Google’s UK earnings have reached yet another record high of $842 million between January and March 2010.   This equates to a nine percent rise from the last Quarter of 2009 and 15 percent from the same period a year ago.   Google execs were delighted with this on the recent analyst's call.

The Hut Group, which rescued Zavvi.co.uk last year, is making a £14 million ($21.7 million) investment for acquisition prior to a float on the stock market. This is the first major digital flotation we've seen in the UK for many years and indicates that there is life in digital yet . . . . it's not all about the ads or paywalls.

The Hut powers the online retailing of physical goods on a white-label basis for diverse clients including WH Smith, Tesco.com, Lovefilm and Argos and also operates its own fulfillment service and own-brand digital retailer, theHut.com.

An interesting example of how social media can create awareness and foster green themed developments came by recently.   Myoo is a community for environmental and social innovation and brngs to the fore creative solutions to environmental challenges.   It's a far cry from making chairs out of old coke bottles!

Apple are delaying the launch of the iPad outside the USA . . . . where they have, incidentally experienced massive problems with meeting demand.   In the meantime here in the UK, digital publishers have been falling over themselves to show off apps designed for the iPad.   Bizarrely, the Daily Express are in the vanguard!

That's all for now, more later.   But before I go, if you want a free subscription to Marketing Week delivered to your door sign up here - don't say I don't give you anything!

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