The Changing Digital Landscape

2008 has shaped up to be a crazy year for online advertising – the writers’ strike drove people online and the presidential election and the Olympics are causing advertisers to boost spending in a down market. The timing of these factors has altered media behavior – making the business of online media anything but typical for the year.

How the advertising dollars that moved online in 2008 will be spent is a matter of much debate. Reports indicate that because the digital landscape is changing, advertisers are finding that the tried and true initiatives that performed well a few years ago are now considered passe.

As more and more individuals become their own tastemakers, advertisers need to take into account how users consume information. The days of pushing content have given way to users pulling the content that they want – making it tricky for companies to get a hold of their potential consumers.

At the end of 2007, AdTech and MarketingSherpa surveyed 421 Internet marketers about the tactics they would try out this year and where they plan to spend their budget in 2008.

In terms of the initiatives that marketers plan to increase more than 5 percent of the budget on in 2008, 32 percent of marketers cited PPC, 27 percent of marketers said they’ll increase their spend on behavioral targeting and 26 percent will spend it on rich media.

The survey found that viral marketing and advertising on online video sites, mobile phones and virtual worlds are among the emerging trends that marketers plan to check out this year. Marketers say they are encouraged to try out those tactics for the first time by their agencies.

Ninety-three percent say agencies suggested an increase in spending or begin spending on viral video; 87 percent were urged to spend on viral marketing using networking sites; 60 percent were asked to try wireless ads on mobile networks; and 62 percent said agencies advised advertising in games and virtual worlds.

In March, PQ Media reported that total spending on alternative media – including expenditures on online/mobile, lead generation advertising and consumer-generated media – is predicted to grow 20.2 percent to $88.24 billion in 2008.

Clearly, how companies approach their ad budgeting is going through a major metamorphosis. Of course, online marketing plans and their budgets depend on several factors – including the type of company, product, audience and goals.

The Big Trends

In terms of how advertisers budget their marketing plans, three trends have been shaking up the status quo in 2008 – paid search, social media and ad networks.

The biggest change in the last couple of years is that search ad spending continues to increase – it is expected to rise 32 percent this year to $15.5 billion in the U.S, according to J.P. Morgan Chase.

Some industry watchers call search the greatest advertising medium of all time and many marketers agree. However, Jake Fields, president and creative director of Treeline Interactive, warns that marketers need to be careful because it is easy to waste budgets buying keywords. Fields recommends Spyfu.com, a tool for finding competitors’ keywords.

The rise of social media is one of the dramatic differences between 2007 and 2008. Although a recent Forrester Research report indicates that spending is still relatively small, companies are benefiting from what it offers: consumers contribute brand messaging as opposed to only passively receiving communication from marketers.

There are many ways for new publishers as well as established brands to leverage social media. They could create buzz on a social network before the site launches or do some ad buys on social networks sites, which are cheaper than buys on traditional content like CNN because traditional advertisers are weary of social networks.

The Northern California ski resort, Northstar at Tahoe, has a campaign that encourages customers and staff to post videos and photos with the tags “Northstar, Tahoe” on social media sites such as YouTube and Flickr – with the prospect of being featured on the Northstar site or even the possibility of winning complimentary services. Fields explains that this initiative enabled Northstar at Tahoe to quickly expand its presence within these social media sites from a couple hundred entries to thousands of social media posts that positively represent their brand.

Also gaining traction in 2008 are advertising exchanges, which allow advertisers to bid for impressions on a CPM basis. Cam Balzer, vice president of emerging media at DoubleClick Performics, explains that ad exchanges bring the benefits of search marketing to display advertising – namely, the ability to test a large number of placements (an ad of a particular size on a particular site or even site section) dynamically (no minimum or locked-in budget), to bid more for placements that are driving strong ROI and less for placements that aren’t working.

More and more display inventory of an increasingly high quality is becoming available via advertising exchanges, and this trend should continue as publishers get comfortable with selling inventory in this way.

Balzer says that for a minimal investment, companies can test various approaches to building awareness of their brand. They can secure a large number of impressions at a low CPM to increase reach. If they are also selling advertising on their site, they could sell ad inventory via an exchange to improve the CPM yield of their site.

Regardless of whether companies attempt to leverage one or all of the big online marketing trends for 2008, the ever-evolving interactive space is moving away from cookie cutter campaigns that seem too inflexible to yield results.

To rise above the clutter, companies need to aggressively try the latest tactics like product placement in games and paid ads on networking sites. Mixed approaches are required – recent research finds that when search and display advertising are combined, clicks increase after people see the display ads.

Because there is no silver bullet, marketers need to constantly analyze and optimize their mix. Fields says that campaigns are all a matter of trial and error – it is important to try, pull back, measure, analyze, and then try again.

Lights, Cameras, Action!

Raise your hand if you’ve heard of Blendtec. I bet you are familiar with Blendtec and I bet I know how you first heard of their blenders – from their viral video series called “Will it blend?” That series, showing iPods and other unusual items being reduced to powder by a powerful blender, serves a strong branding message: If it can annihilate an iPod, it will make quick work of your smoothie.

Whatever people conclude, the videos are certainly working. Blendtec’s sales have quintupled since the start of the campaign. Total cost of all this marketing: a few thousand dollars for video equipment plus the cost of the objects destroyed. Every video viewed was the result of people passing them to their friends or finding them through search.

Videos provide the richest way to send a message to your customers, and they might cost less than you expect. Online videos can be targeted at far smaller audiences than TV commercials and cost nothing to distribute, unlike mailed DVDs. Online video is especially important to marketers targeting younger audiences – 42 percent of individuals between 18 and 34 watch video online at least once a week.

So how do you go about making your own online video? Here are five tips for making great online videos.

Keep it short. The shortest videos seem to be the most watched, with the highest viewership for clips between one and three minutes. Some popular video podcasts are five minutes long, and many are ten. Don’t make yours 30. Better to do a weekly 10-minute show than a monthly hour.

Use tight shots. Some people will watch your clips on iPods and other small screens, and even those that watch on their computers generally do it in a small window. So, when you shoot your video, use close-ups with your subjects. And forget widescreen mode – stick with standard mode.

Don’t move. Talking heads work best. Many fast-motion sequences will be lost on an iPod’s small screen.

Write big. When you add on-screen titles to your video, remember that text that looks fine while editing your video on your computer could be unreadable on the tiny iPod screen and small computer windows. Use text judiciously and in a large point size.

Watermark it. If your video is well done, people will share it, which is great. But if you don’t identify the site it’s from, people won’t know where to go for more.

You can’t expect to reach people with online video as easily as you would with a TV commercial. With TV, you merely choose the show that matches your target market, plunk down your cash, and your commercial runs. On the Web, customers usually find your video through search, so search marketing is crucial to getting your message seen.

The best way to do that is to optimize your videos for search. Google’s Universal Search and other blended search result pages have made it more important then ever to optimize your video clips for search.

The good news is that if you know how to optimize Web pages, you already know a lot about optimizing videos, because search engines don’t see the actual video images and can’t hear the audio soundtrack. So the page containing the video carries a lot of weight with search engines.

Place each video on a separate webpage, so that you can optimize that page with the keywords that best match the clip. As always, use those keywords in the title, the description, and the body (especially in headings). Include a short summary of the video’s contents within the body, or, even better, post a transcript of all the words spoken.

But there’s more. You must get the videos themselves indexed by search engines.Some search engines crawl videos, so place all your videos in the same directory, as close to the root directory as possible. If you’re producing a steady stream of videos, set up a Web feed for them, pinging the search engines each time you add a new clip. You can also use a Video Sitemap (sitemap.org) to get the same treatment for your videos that you get for your Web pages.

And don’t stop there. You can improve your search results further by following these four tips:

Use keyword-rich file names. Name your video files to show the search engine what they are about. If it is a demonstration of a product, name the file after that product, such as ipod-nano-demo.mpg. Don’t drone on with keyword after keyword in the name – keep it short, with just a couple of keywords.

Optimize your metadata. Videos can be encoded with metadata keywords within the “properties” of the video file itself, by tools such as Autodesk Cleaner (www.autodesk.com). Video search engines frequently rely on this information when deciding which videos to show in the search results (and in what order).

Submit your videos. Video sharing sites, such as Google’s YouTube (www.youtube.com), allow you to post your videos right on their site. But you should reach farther than YouTube. Use TubeMogul (www.tubemogul.com) to submit your clips to over a dozen sites simultaneously and to track their viewership. Use keyword-rich titles and descriptions on those sites – they’re just as important as on your Web pages-and tag them with keywords, also. Some video sharing sites allow a linkback to your Web site, so take advantage of that, too.

Publicize your video. If your clip is noteworthy, submit it to social bookmarking sites, email people who would be interested, and link to it from your blog or another Web page.

If you follow this advice, you’re sure to improve the visibility of your online videos.

But it’s not enough to optimize your videos for search, however. Just as getting a #1 ranking for a Web page does not get that page clicked, your video must be watched, not just found. How do you get people to watch what you’ve created? Learn to share. Ensure that videos posted, especially to social networking sites, are marked “public” rather than private.

Give your videos “curb appeal.” Some video sharing sites allow you some control over the image selected as its thumbnail image – the picture shown before the video is played. Select an attractive thumbnail. Emphasize what works. Pay attention to viewership metrics, so you can repeat techniques and themes that have succeeded with your customers in the past.

Video has become a force in Internet marketing. If you produce compelling videos, optimize them for search, and get them watched, the force will be with you.

Video Goes Viral

Thanks to social networking sites such as YouTube, online video has quickly become an everyday part of the online experience. While marketers have been slow to capitalize on video so far, the low cost of producing content and potential for increasing reach will make it essential to performance marketing.

The audience that watches Web video skews younger, but nearly everyone online is doing it. According to market research firm comScore, nearly 75 percent of U.S. Internet users watched video during the month of May, viewing more than 8.3 billion video streams. Consumers are interacting with video more frequently in a wide variety of destinations, from “newspaper” websites to social networking to blogs. The most popular viral videos can garner millions of views, and video ads have proven to be more effective than their static counterparts in prompting user actions.

In 2008, more than half of the total U.S. population will be watching video online, according to eMarketer, and advertisers will spend more than $775 million in 2007 on video ads, up 89 percent over the previous year.

Since interactive video will catch and hold viewers’ attention longer, marketers are beginning to use the technology in four ways: on their primary websites; on microsites designed for specific campaigns; syndicating them through advertising networks; and releasing them to video search engines in the hopes that they go viral. The first step is to create professional and compelling content.

The Medium and the Message

Video starts with a camera, and MiniDV (digital video) is the industry-standard format for recording video on tape. MiniDV or hard-drive-based cameras are the best match for transferring video to a PC. To make it easy to transfer the video to a computer for editing, the camera should be able to record in MPEG 2 or 4 format and pass it through a FireWire (also known as IEEE 1394) or USB 2.0 (universal serial bus) connection.

These cameras range in cost from a few hundred to several thousand dollars depending on the features, including optical zoom; size of the LCD panel to preview the video; and the technology used to steady the image. Sony, Panasonic and Canon offer high-quality digital video cameras at a variety of price points and options.

For companies that want to tell a personal story in a vlog style, Jim Kukral, who blogs about using video at HowToDoVideo.com, recommends purchasing a set of lights that cost between $150 and $400 and a photo background (or green screen) that sells for approximately $50. Kukral, who produces videos and distributes them via YouTube, also recommends buying a tripod to provide a steadier image than with handheld shooting.

Kukral says videos about a company provide a more personal experience than blogs, and posting them on YouTube can drive traffic to your website. Publishers can “engage customers and illustrate things with video as opposed to [relying on] bullet points,” he says. Kukral posted videos on YouTube with tips on creating videos that generated new clients, several of whom commented that from his videos they “got the feeling that I knew you.”

Editing software ranges from free to more than $1,000, depending on the sophistication of the special effects. Macs include the intuitive iMovie, which provides basic functions for cutting and splicing together clips, adding titles and controlling sound. Similarly, Windows Vista PCs include a drag-and-drop video-editing application, Windows Movie Maker 6.

QuickTime 7 Pro ($29.99) is available for Mac OS X and for Windows, and includes more sound- and video- editing features, including the ability to export videos to iPhones. SimpleMovieX ($30) from Aero Quartet is a QuickTime competitor for Macs that works with more formats and larger files.

Marketers willing to learn more sophisticated programs so that they can add effects such as modifying the lighting, integrating multiple audio tracks and working with more file formats have several not-so-inexpensive options (see sidebar on page 048). Adobe Flash is becoming ubiquitous as a browser-friendly application that enables publishers to integrate interactive elements into their videos.

Kukral says the biggest mistake companies make in creating videos is insufficient branding. Videos should introduce the company at the beginning and reinforce the brand within the content.

For videos that are distributed outside of a corporate website, adding the URL in a title card at the end of the video is recommended. The videos should also be tagged with the URL and contact information, and keywords should be added to optimize the videos for search engines.

Marketing videos can range from a few seconds to several minutes in length depending on the type of content and target audience. Keeping the message short is essential to retaining the viewer, according to Michael Hines, the U.S. manager for network Zanox. Videos that are to be distributed as ads “can’t be 30 seconds long,” Hines says. He recommends that video ads be no longer than 10-15 seconds in length, while videos that introduce a company or illustrate a technology can be longer.

Publishers looking to create video marketing content without investing in editing software or expertise can refine their videos with a drag-and-drop online tool. Launched in August, Digital Canvas is a Flash-based service from Flimp Media that integrates interactive elements into a marketing microsite, according to company CEO Wayne Wall. These customized pages, also called flimps, can be shared as viral content, and built-in tracking mechanisms enable measuring their effectiveness, Wall says. The videos can tell the story of a company, or be used as an interactive component of marketing collateral, he adds.

Companies that lack video expertise or desire the highest-quality production values should consider using a video production service familiar with the optimizing content for the Web. Many of the companies that produce corporate training videos or video news releases are adding online services, with costs ranging from a few hundred to a few thousand dollars depending on the complexity of the shoot.

Putting Videos Online

Putting videos online that have been created on a website is not difficult, but finding an audience for them often requires manually uploading them to other sites or hiring someone to do so for you. Videos in the most common formats (MPEG, QuickTime and Windows Media) can be embedded on Web pages with a minimum of coding. As a more sophisticated alternative, embedding a Flash player on a site provides access to multiple videos and enables publishers to link to other interactive components or Web content.

For publishers with substantial traffic, adding videos provides an opportunity to retain visitors and to satisfy those who would rather watch than read content. If the videos become a runaway success, however, you may need to purchase additional bandwidth from your Internet service provider. Although the video quality can be compromised, uploading videos to YouTube and embedding their video on your site can reduce Web-hosting costs, according to video guru Kukral.

If you want videos to drive traffic to your website, they need to be optimized for search engines and syndicated through a growing number of video-hosting and search sites. As part of the upload process for submitting videos to search sites such as You- Tube, Revver, DailyMotion and Blip.tv, and syndication sites including Veoh, Brightcove and Maven, publishers fi ll out forms on each site and enter tags, descriptions and keywords. This painstaking process can take hours to reach just the most highly trafficked sites.

Companies such as TurnHere and Medialink work with networks of local video production companies to create the content and will also take care of the upload and submission process to sites including Google, AOL, MSN and Yahoo.

Through a partnership with RSS distribution company Pheedo, Turn- Here distributes content to sites looking to add video, including blogs such as BlogCritics and AlarmClock, and publishers including Slashdot, Red Herring, InformationWeek and ABCNews, according to CEO Brad Inman. Inman says travel, automotive companies and book publishers are among the early adopters marketing through online videos. TurnHere client Simon & Schuster has created hundreds of videos with authors talking about their latest books, and Inman says the top authors’ videos are viewed 50,000 times per month.

Local publishers are beginning to experiment with using video to tell their stories directly to customers. Superpages and CitySearch have recently introduced videos into their local listings. Marketing videos are “… really about long tail – not about a million streams, but [marketers] want 100 relevant streams,” Inman says. He recommends local business owners get in front of the camera because “no one can tell their story better.”

Getting the media and bloggers to write about or incorporate your videos can create signifi cant brand awareness and drive traffic to your website. Medialink, which has more than 20 years of experience in connecting companies with print and broadcast media, has video distribution services that start at $2,500. Medialink will host and present a video online and distribute it to local and national media including bloggers, and will also distribute the videos to aggregation and syndication sites, according to COO Larry Thomas.

In the fall of 2007, Medialink is launching Mediaseed, a Web platform that hosts and optimizes corporate marketing and communications materials for distribution. The platform contains tracking features for measuring a video marketing initiative’s reach online as well as on broadcast TV.

While accurately labeling videos will increase exposure on YouTube and the other top video sites, how to optimize content for video or general search engines remains largely a mystery. Google’s incorporation of video results into its universal search will increase the exposure of videos, but search engine marketers are still catching up.

Browsing videos and referrals from other users remain the most common methods by which people discover new videos. Being found on video search engines is not that easy, according to TurnHere’s Inman. People had a “false sense several months ago that ‘I can create a video and have it go viral on YouTube and it will go big,'” according to Inman. The reality is that most videos submitted to video sites will languish in obscurity. “The key is to start creating and experimenting,” he says. Search engines will take 18 months to catch on to the importance of video and properly index the content, according to Zanox’s Hines.

This fall Zanox will launch Zanox.tv, where publishers can post videos that will be used to attract partners. “The intent is to allow publishers to do an alternative to a text ad to encourage people to join as an affiliate,” says Hines. The video ads will likely pay on a cost-per-action basis, with Zanox and publishers sharing the revenue, according to Hines.

Ad Networks Monetize Video

Advertising networks are matching content companies with publishers large and small who are looking to use video to increase their audience. Startup video ad network Affliated.net is betting on a new video advertisement form opening a door into affiliate marketing. The borderless videos hover next to content and feature an actor or actress pitching a product or service. Since the video ads reside in the pixels along the edges of a Web page, publishers don’t have to give up their existing ads, according to Affiliated.net president Chris Skretvedt.

The videos, which range in length from 30 seconds to 5 minutes and will be paid for by Affiliated.net, are created to prompt user action such as generating leads or making a purchase, Skretvedt says. The ads launched in August and are to be sold on a CPA basis. The company is pursuing relationships with the major affiliate networks.

Tremor Media has combined forces with video distribution company ClipSyndicate to match content with relevant advertising. Tremor Media inserts in-stream ads with videos from sites such as DrPhil.com and making the content available to publishers, according to vice president of publisher relations Daniel Scherer.

Scherer says online video is hampered by a lack of technical standards in how to publish content. De facto standards for formats exist, but there is “no standard that supports integration of in-stream dynamic advertising,” he says. Content owners today are stuck in the struggle between controlling the advertising and monetizing their videos, according to Scherer. “The big puzzle is the upside-down reliance on You- Tube,” he says. If you want a video to be popular, put it on YouTube, but then you can’t monetize it; and if you want to control the ads, then you can’t put it on YouTube, says Scherer. Within the next year, You- Tube parent Google is expected to roll out a new video advertising service to address this problem.

Another opportunity for monetizing videos is to make them interactive so that the products featured within can be highlighted and sold via performance marketing. VideoClix provides technology that makes areas of a video clickable, according to Brent Stafford, the vice president of business development. “If you don’t make [your ads] interactive, you are underutilizing the medium,” he says. VideoClix has created ads for Levi’s and Honda, and shares revenue through CPA, CPC or CPM campaigns.

Once the science of increasing the search rankings of video has been significantly refined, publishers will rapidly increase their efforts to acquire or produce videos to place on their website. This strategy will be similar to how images of celebrities or top search terms are currently used to attract an audience, and will assure video’s place in the spotlight.

John Gartner is a Portland, Ore.-based freelance writer who contributes to Wired News, Inc., MarketingShift and is the editor of Matter-mag.com.

Getting Into the Mashup Mix

It’s become a new art form to combine various existing elements to create something totally new. However, it can also be dangerous creative and legal territory to navigate when particular items are protected by copyright laws.

Some online marketers, eager to leverage new technologies for promotional purposes, are uploading and sharing video creations with copyrighted materials despite concern about potential copyright infringement, because they want to beat others to the punch.

Founder of the site HowToDoVideo.com Jim Kukral explains there is a belief in the first-move advantage – those who get their videos up on YouTube first are the people who will win. Kukral adds, “online video is the wild, wild West ” it is how search engines were in 2000.”

The first mashup to garner significant attention was not a video, but “A Stroke of Genius,” by Freelance Hellraiser in 2001. It combined the vocals of Christina Aguilera’s “Genie in a Bottle” with The Strokes’ “Hard to Explain.” In the next few years, a deluge of similar attempts followed. Freelance Hellraiser went on to record a single for Sony, while artist and producer Danger Mouse famously teamed up with musician Cee-Lo to form the group Gnarls Barkley, whose song “Crazy” was one of 2006’s biggest hits.

Mashup is a loose term that means to remix more than one source of data to form a new combination of information. But music is not the only type of mashup – there are also video and Web mashups. John Musser, founder of the website ProgrammableWeb, which catalogs mashups, says that the goal is “to create something new that is unique and greater than the sum of its parts.”

The mashup movement has exploded over the past three years, taking many by surprise. Many industry watchers consider the emergence of mashups as a proof point of Web 2.0 – because it involves widespread sharing and mixing of online content, many of the basic Web 2.0 tenants.

Video mashups also are becoming increasingly popular – users are mixing their amateur video with copyrighted video or audio and adding these new creations to their own sites, uploading them to video-sharing sites, or sharing them through social networks.

Affiliate Summit co-founder Shawn Collins says that when he creates a mashup, he makes sure the sources of data are not copyrighted. He uses royalty-free music from sites such as Stock20.com and royalty-free video from sites like iStockPhoto. com and FreeStockFootage.com. For a recent mashup Collins made, he grabbed a laugh sound effect that comes with the Sony Vegas video-editing software program. He got the audio from a podcast that he understood to be open for use, as he didn’t see any claims to the contrary.

Beth Kanter, a trainer, coach and consultant to nonprofits regarding technology, uses Web tools such as video blogging, screencasting and virtual worlds. When Kanter creates a mashup, if she finds something she thinks is absolutely perfect and it is all rights reserved, she asks for permission. She also looks for materials that have been resourced under Creative Commons – its tagline is “some rights reserved.” Creative Commons’ licenses enable copyright holders to grant some or all of their rights to the public while retaining others through various licensing and contract schemes, including dedication to the public domain. Creative Commons is a nonprofit founded in 2001 by a group of U.S. copyright experts who became concerned that the default copyright laws were restricting creativity in the digital environment by preventing people from accessing, remixing and distributing copyright material online.

The ease by which any song or film can be pirated onto the Internet caused an intellectual property rights debate that picked up momentum with music-sharing site Napster eight years ago. As sampling and sharing online becomes more widespread, intellectual property and technology lawyer Denise Howell wonders if copyright rules are out of sync with the values of the day – she calls current copyright law “quite Draconian concerning infringing and sampling.”

The DMCA

In 1998, Congress passed The Digital Millennium Copyright Act (DMCA), which made major changes to copyright law and attempts to address copyright in the digitally networked environment. The DMCA Act shields Internet companies from liability for copyright infringements if they act promptly to remove the clips.

YouTube.com constantly receives DMCA Takedown Notices from copyright owners – asking it to take down videos that claim to infringe copyrights. In March, Viacom sued YouTube for $1 billion, accusing the video-sharing site of “massive intentional copyright infringement” based on 160,000 unauthorized Viacom clips that were uploaded onto YouTube.

In August, eight more parties, including the Rugby Football League, charged that YouTube encourages copyright infringement to generate public attention and boost traffic to its site.

This fall, YouTube plans to deploy a system to filter out copyrighted content by using digital fingerprinting technology to compare user-submitted videos to copyrighted materials, but critics say that this technology has not come fast enough.

The DMCA has been criticized for making it too easy for copyright owners to demand that website owners take down infringing content when it may not in fact be infringing. Electronic Frontier Foundation (EFF) senior intellectual property attorney Fred von Lohmann claims the DMCA is unfair because some copyright users are misusing it for censorship purposes.

Copyright holders have to consider the provisions of Fair Use, which is a doctrine in the U.S. copyright law that allows limited use of copyrighted material without requiring permission from the rights holders. It can be invoked when the value to the public outweighs the cost to the owner of the copyright. Under Fair Use, copyrighted material can be sampled – it is what allows short clips of copyrighted material to be included in documentaries under the name of scholarship and parody.

So the big question many are asking is, can mashup creators sample from copyrighted material and be protected under the provisions of Fair Use? Howell says that if a sample is used noncommercially and has a strong parody or commentary component, “the Fair Use odds improve but there are no guarantees.”

Von Lohmann says the consequences of sampling copyrighted materials for mashups is unpredictable. He calls it a “gray area” because there has never been a court case about mashups. Von Lohmann explains that sampling under the protection of Fair Use depends on the creation’s purpose, how much copyrighted material the user took, the nature of the work (factual or creative) and the effect it has on the original. “Most mashups are creative and noncommercial, so those things favor Fair Use,” von Lohmann says.

But if a marketer were sampling copyrighted material to promote her own product, it could be argued that it is not covered under Fair Use. “If the work is commercial and promotional, then it will be harder to defend,” von Lohmann says, adding the warning that if marketers are going to be using other people’s copyrighted materials, they need to understand the pitfalls and they should consult an attorney.

Legal Changes Afoot

There is evidence that the way copyright law is enforced on the Internet could change eventually. At a session on copyright and social media at June’s SuperNova conference in San Francisco, one of the panelists, Viacom lawyer Mark Morrill, said that Viacom is only interested in pursuing infringement of Viacom material on YouTube for nontransformative, verbatim use. Viacom is not pursuing transformative uses – which is the description that mashups and remixing fall under. That means if you are using copyrighted material without altering it, you may be in legal trouble. However, if you are transforming that copyrighted material (adding other elements, etc.), Viacom is not coming after you.

Regarding all of the amateur videos using various clips of The Rolling Stones songs that have been uploaded to YouTube, attorney Howell explains that YouTube has had great success convincing the major record labels to adopt strategies for approving works for this kind of use, “thus hopefully making the takedown issue for mashups and sampling irrelevant,” she says. YouTube has deals with Warner, Sony BMG, EMI and Universal Music Group that enable people to legitimately incorporate works from these record labels’ artists into their user-generated content on YouTube.

And in August, online video-sharing site, Veoh Networks, preemptively sued Universal Music Group, asking a judge to prevent the music company from filing its own copyright infringement action – even if users upload videos to the Veoh site that contain unauthorized music from Universal artists. Veoh argues that it is protected under the safe harbors provisions of copyright law because it does not encourage its users to infringe copyrights and actively investigates and takes down infringing material.

Creating these mashups is getting easier with the tools that let users overlay images and text on top of copyrighted video. This can be useful to marketers and affiliates who want to add their own promotional content (see sidebar above).

Yoni Silberberg, CEO of PLYmedia, claims his company is not worried about infringing copyrights because its services are overlays – the original content is always kept intact. Experts agree that because services from Cuts, PLYmedia and others like AffiliateVideoBrander don’t host or store the video, they are not liable for copyright infringement.

Howell says PLYmedia’s BubblePLY gets around copyright infringement issues because they rely on the commentary component of fair use, and the fact that it does not copy or host the commented-upon works. Howell says it’s the same for Cuts – it’s a commentary addon, with no copying or redistribution of the original work.

Mapping Out a Course for Mashups

The most common type of mashup is a Web one. ProgrammableWeb’s Musser says that in the past, mashups were only accessible to programmers because they involved writing some code, but that has changed due to the advent of new tools. To date, ProgrammableWeb. com lists 2,100 Web mashups, “but that’s only a fraction of the mashups out there,” says Programmable Web’s Musser.

Types of Web mashups include mixing data from different sites like one that shows data about the musician Beck and combines that with audio snippets from a music site, videos from YouTube and Beck’s album covers from Amazon.com. But the most common type of Web mashup is mixing data with a map. As of July 2007, 42 percent of Web mashups were maps.

There are thousands of personal map mashups that plot text, links and data over the digital globe. In the past two years, map providers like Google, Yahoo and Microsoft have created tools that let users layer their own geographic interests on top of maps and satellite images. With certain restrictions, map providers offer mapping software to users through feeds, called APIs (application programming interface), which can be combined with data from other sources.

In April, Google launched its own mashup software, My Maps, which allows users to personalize their Google maps by attaching images, text and video without writing any code. Greg Sterling, founder of Sterling Market Intelligence, says that currently Google is giving the maps away – users just have to have the Google logo on the map in the lower-left corner.

Musser says Google is investing in maps because half of all ad dollars are local – it leads to contextually based local advertising and it can run AdSense as well. It is also a way for Google to build its brand.

U.S. general manager for Clicks2Customers Sam Harrelson says that mapping is one of the areas of tremendous opportunity for affiliate marketing because it is relationship- based and reliant on the element of trust. When deciding on an entertainment venue, people rely on recommendations. With reviews of particular places introduced into Google Maps, Harrelson sees further growth potential for affiliates looking to monetize their communities in a relationship- based paradigm.

Visualization tools developer IDELIX Software offers Lat49, a map-based advertising model targeted at online, Ajax-based map applications. In addition to using the map APIs from Google, Yahoo and others, publishers can use a JavaScript API from Lat49 to drive contextually relevant ads – as users drag maps around, the ads can dynamically change based upon their zoom level.

Experts say that today’s media companies seem to understand that the times are a changin’ when it comes to enforcing copyrights on the Internet.

Mary Hodder, founder of Dabble, a video search site, predicts that media companies are going to be more flexible about their copyrights than the record companies were in the 20th century. “These music companies are keen to believe that they own everything forever ” but I don’t think the rest of the entertainment business will do that,” she says.

Demonstrated by the popularity of Creative Common licenses, the current zeitgeist is that users don’t agree with restrictive copyright laws, and believe in the benefits of sharing, repurposing and remixing. Like the repealing of prohibition in the ’30s, laws change when they no longer are in step with the ideals of the people.

Attorney Howell says that for media companies, enforcing copyrights is a question of business reality. In terms of sampling for commercial use, media companies will continue to take a hard line because the courts have said they can and there’s a sufficient financial payoff. When it comes to pursing a similar strategy for noncommercial mashups and sampling, Howell says the math doesn’t add up. “What makes sense instead is adopting fine-grained ways to both authorize and benefit from creative reuses of copyrighted works.”

Sweet Charity

If you think getting people to shop online is tough, consider the plight of nonprofit organizations. They ask people for their time and/or money, but instead of receiving goods, these donors simply get the satisfaction of doing good.

Although nonprofit organizations may have a different agenda from the for-profit online marketers, many of the goals (building relationships, income, brand awareness, etc.) are the same.

During the early part of the Internet era, many charitable organizations limited their Web activities to maintaining a website that accepted donations and member registrations, but over the past few years these groups have expanded to leverage many of the leading marketing tools.

Donations to nonprofit organizations are growing but remain only a small part of overall giving. Online donations in the U.S. doubled between 2003 and 2005 to $4.5 billion, but that is just 1.7 percent of the $260 billion in total donations, according to the GivingUSA Foundation.

Most people prefer to give off-line, so organizations establish different objectives for online activities and combine their direct marketing initiatives. In addition to getting people to donate, nonprofit online marketing goals also include increasing membership, encouraging activism, making resources available to those in need, issue awareness, building community and promoting word of mouth marketing. However, nonprofits typically operate under tight budgets where success is measured in lives affected and their experiences can offer useful lessons to all marketers.

Tools of the Trade

Employing search engine marketing and banner ads may be critical for many businesses, but nonprofits are selective if they choose to participate at all. Todd Whitley, vice president of e-marketing for the Leukemia & Lymphoma Society, is a proponent of SEM and display ads if the right audience segment is targeted. Whitley focuses his group’s search marketing plans on reaching caregivers who might need the organization’s services and “to find people who have relevancy to your mission.” Purchased keywords should be as specific to the target audience (such as “treatment”) as possible, Whitley says.

Joel Bartlett, marketing manager for People for the Ethical Treatment of Animals, bought banner ads on social networking sites such as MySpace but wasn’t satisfied with the traffic generated. However, when the group made its display available for posting on individuals’ personal pages and encouraged members to share them with their friends, traffic greatly increased. “The value of word of mouth goes further than any banner ad we could afford,” Bartlett says. As with commercial enterprises, customers (in this case organization members) are the best salespeople, and giving them the tools to increase brand awareness online can be very successful.

PETA is selective in its search marketing spending, limiting the scope to the related terms that have proven to be cost-effective. The PETA website has high natural search rankings for many of the terms related to protecting animals because of the abundance of links to the site, so Bartlett doesn’t see a need to participate in SEM for obvious keywords. “We’re already the No. 1 search term [for animal rights] so we don’t need to buy ads.”

Bartlett says that instead of using contextual or display ads on general interest sites, PETA advertises with advertising service Blogads.com to reach influential Web participants. Blogads works with bloggers who have loyal readership and are more likely to get involved and to spread the message to others, enabling PETA to reach a smaller but more receptive audience than mass media sites.

While search is not a major component of many nonprofits’ online marketing strategy, another performance marketing staple has proven successful – email marketing. Through newsletters and issue-specific alerts, PETA encourages people to forward the information from its website (including images of animal abuse) to their friends that will prompt action.

When it’s an email from a trusted friend, “people get outraged” about how animals are treated, Bartlett says. During PETA’s offline events, the organization collects email addresses to expand the audience of its newsletter and outreach activities.

Habitat for Humanity purchased Google AdWords for a time but cut back on online advertising recently, according to Senior Director of Direct Marketing Timothy Daugherty. The best-performing words were derivations of the organization’s name, and since the website could be found with natural search, search marketing was deemed unnecessary.

The group, which builds affordable housing for lower-income families, now focuses on increasing communications with people who have previously donated to maximize their marketing dollars, Daugherty says. Habitat for Humanity received about 10 percent ($8 million of the $80 million) of its total 2006 donations online, according to Daugherty.

The group has been successful in increasing awareness by getting list appends (email addresses for previous donors) for their direct marketing databases to reduce costs and open another line of communications, says Daugherty. Contacting donors via email is also effective in stimulating activism online and off-line, and is part of the organization’s effort to integrate marketing efforts, he notes. For issue-oriented campaigns, email works well in getting people to write letters and emails to public officials, he adds.

The National Council of Churches has collected more than 100,000 email addresses by getting members to forward information to friends and by requesting addresses on donation forms. “We ask people to share our email blasts with their friends,” and those who respond to forwarded emails are automatically added to the distribution list, says Daniel Webster, the organization’s director of media relations. The frequent communications about issues in the news help to build a virtual community and enable two-way communication, according to Webster.

In addition to most donations being made off-line, most word of mouth marketing occurs off-line as well, but email can be effective in spurring people to talk off-line with friends about an organization or contributions. Nearly 90 percent of people who have donated to a charity say they have urged others to give in person, but just 19 percent had done so by email, according to a 2005 Donor Trends survey by Craver, Mathews, Smith & Company and The Prime Group. Email has proven successful in promoting off-line activism that inspires people to attend and volunteer at events that are an important component of nonprofit activities.

Creativity Key for Tight Budgets

Operating within tight marketing budgets forces many nonprofits to be creative in their programs and partnerships, according to the Leukemia & Lymphoma Society’s Whitley.

While working for the American Lung Association, his group created a significant revenue stream by connecting for-profits to its members who voluntarily participate, according to Whitley. The organization created a campaign that asked members with asthma to provide input about how they managed their illness. Glaxo-Smith-Kline offered information about its related pharmaceutical products and gained valuable information by collecting data from the campaign, Whitley says. “[For-profit companies] don’t have access to live communities, so we provided a benefit to them.”

Whitley says nonprofits can also maximize their resources by collaborating with peer organizations with related goals. The American Lung Association joined with the Centers for Disease Control on an online campaign to publicize public flu clinics. By sharing the costs and their collective memberships, the two groups were able to reach a wider audience more quickly than acting individually. Companies with complementary products or services can likewise team up for their mutual benefit in marketing efforts.

The American Red Cross is using online communications tools and commerce to help replace its aging membership with a younger demographic, according to Darren Irby, the group’s vice president of communications. Irby says the base of its donors is over 65 and since “those people are dying off” and are less likely to be online, the Red Cross is targeting a younger generation with its online marketing efforts.

Since the under-40 crowd spends ample time chatting online, the group is generating revenue by piggybacking on advertising delivered via instant messaging (IM) software. The Red Cross teamed up with Microsoft’s Windows Live Messenger advertising program. To encourage people to use the IM software, Microsoft is donating part of the revenue from the ads that appear during an IM conversation to the charity of the participants’ choice. Red Cross members feel good about encouraging others to use the software, and the organization gets exposure and extra income.

The Red Cross is increasing brand awareness by going retro with the branded merchandise on sale at its online store. To celebrate the 125th anniversary of the group last year, the Red Cross began selling T-shirts, coffee mugs and hats emblazoned with a vintage World War II logo. The garb, which has sold well beyond expectations, “is a way to link the older and younger generations,” Irby says.

Instead of buying banners on social networking sites, the Red Cross makes tools available so that members can provide free exposure by promoting the organization on their personal pages. The Red Cross has set up groups on MySpace and LinkedIn, and has created banners, logos and promotional widgets to spread the word.

Irby recognizes that younger people like the immediacy of being able to support the Red Cross’ response efforts to a national disaster, but so far the group has not produced any viral videos for sites such as YouTube. He says workers in the field are too busy helping to film their activities, and he doesn’t encourage people to film relief efforts for fear of “losing control of the messaging,” he says. Instead, the Red Cross has created videos and posted them on an FTP site that is accessible by the media.

The Red Cross is also reaching out to bloggers to make the blood donation process less intimidating. The organization is requesting that bloggers write about the music that they listen to while giving blood. “Charities need to engage in two-way communication” if they want to develop a meaningful relationship with members and volunteers, says Irby.

Most nonprofits do not utilize formal affiliate programs, but PETA provides merchandise as incentives for people to promote its organization online and off-line, according to Bartlett. Through the “PETA2 Street Team” initiative, the group gives volunteers missions to accomplish, such as contacting people via email, adding links to PETA on their websites, or off-line activities, and volunteers earn points that can be redeemed for merchandise from the group’s online store. By offering “posters, CDs and autographed stuff from a band,” PETA is connecting with the young volunteers’ interests through relevant rewards, Bartlett says.

PETA also employs viral marketing to increase awareness online. The group has set up a website protesting Kentucky Fried Chicken’s animal handling and created an automatic sign generator that enables people to create virtual billboards about the restaurant chain and post them on personal websites. The group created an area on the photo-sharing website Flickr for volunteers to post images. Creating tools for people to generate their own content around the group’s messaging is “part of the strategy of empowering users and encouraging word of mouth” that is highly effective marketing, says Bartlett.

Coordinating the online activities of the groups within a national organization can maximize resources and create a more cohesive strategy, according to the Leukemia & Lymphoma Society’s Whitley. Nonprofit departments (like their commercial counterparts) can be territorial at times, but sharing the online successes and collaborating on projects will unify the organization. Whitley says the Web group can break down barriers and it “is critical [for the online group] to become a leader for interfacing cross-divisionally within an organization.” Similarly, online marketing initiatives can unify the divisions within a company by sharing their experiences and using the collective intelligence to optimize campaigns.

John Gartner is a Portland, Ore.-based freelance writer who contributes to Wired News, Inc., MarketingShift and is the Editor of Matter-mag.com.

Online Is Sweet

Food has recently been called everything from the new theater to the new porn. Regardless of how you think about food, you certainly can’t avoid it.

Food has become America’s No. 1 obsession and food companies – from providers of high-end gourmet goodies to those feeding the fast-food nation – are battling to get on the dinner plates of today’s consumers.

And because everybody has to eat, the opportunities are enormous. Consider this: Americans spend 10 percent of their disposable income on food. The typical American household spent an average of $2,434 on food purchases away from home.

The channels for reaching this lucrative marketplace are just as vast. Recent buzz suggests that food companies are spending or planning to spend less of their advertising budget on traditional forms of media in favor of the Internet. But just how much of food companies’ advertising budget will be allocated to online initiatives and how quickly that will take place varies depending on the brand, the brand’s audience and who’s responding to the question.

Tom Vierhile, executive editor of Datamonitor’s Productscan Online, which covers the release of new merchandise, thinks that the CPG (consumer product goods) industry, which includes food, is getting away from traditional advertising because of rampant media fragmentation, something it considers to be a major problem.

Gene Dillard, president of FoodWise, a marketing communications agency that has worked with clients such as Borden Milk and Tyson Foods, agrees that traditional forms of advertising like print are declining because “there are too many different publications that have divided the market so much.” He says advertisers are using the Web because it is more targeted and cost efficient and says there is a trend of moving more ad dollars online. He recommends his clients should “spend 15 percent of their budget online at the minimum.”

Joseph Jaffe, creator of the popular new marketing blog, Jaffe Juice, and previous director of interactive media at TBWA/Chiat/Day, says that food companies are using the Internet more but not leveraging it to its full potential.

“Food companies and CPGs have always prided themselves on their analytical marketing mix modeling and want to be able to look to what has worked for them in the past and repeat it,” Jaffe says. “But this will not work anymore because the industry is changing so quickly and exponentially and there is much that is not predicable.”

New Recipe For Success

Although food companies lag a bit behind other industries, Jaffe says he believes they are increasing their online advertising spending based on two main reasons. One is that Internet display advertising rose 18.9 percent for the first half of 2006 over the first half of 2005 according to TNS Media Intelligence (this does not include paid search advertising.) Jaffe says he believes that spending by food companies accounts for part of this substantial increase.

Reason number two: Many food companies have increased their overall advertising budgets in the last year and Jaffe believes this includes online spending. October’s Advertising Age’s Top 200 Brands found that for the first half of 2006, Campbell’s advertising spending was up 63.8 percent, Kellogg’s increased by 17.8 percent and M&M’s spent 11 percent more than in 2005.

Lisa Phillips, an analyst who covers the CPG space for eMarketer, says food companies are spending more online recently but not at the same pace as other industries such as cosmetics or pharmaceuticals.

“When it comes to product launches for food, companies are still using television.” For example, according to Nielsen//NetRatings AdRelevance AdAcross, for the period of August 2005 to July 2006, Sara Lee spent 52.3 percent of its advertising budget on network and cable television (see chart below).

Nielsen//NetRatings AdRelevance found that large food companies spent relatively small percentages on Internet display advertising (in this case, image-based impressions, which include popups, banners that scroll by, etc., but do not include sponsored search link ads or other types of Internet marketing). Altria, the parent company of Kraft, allocated 1.1 percent; Sara Lee spent 1.5 percent; while Heinz’s ketchup allocated 2.2 percent and McDonald’s spent 22.7 percent.

It’s hard to get specific numbers as analysts don’t break out food advertising separately from CPG advertising. JupiterResearch defines CPGs as food, beverages, alcohol, household products, cosmetics and beauty aids, and personal care products. Analyst Emily Riley of JupiterResearch says “CPG spending makes up only 5 percent of total online spending. Currently about 90 percent of it is display advertising such as banners, sweepstakes and sponsorships.”

However, JupiterResearch predicts that CPG spending will increase substantially in the next three years and that compound annual growth will be at 10.5 percent between 2005 and 2010 for display advertising, from $385 million to $632 million.

Aside from display advertising, what else are food-related companies doing online? Phillips says, “Food companies are still figuring out how to use the Web ” and they are definitely spending a lot of money trying to do it.” Online initiatives that attract, engage and retain users such as coupon and recipe downloads, features that foster community and sites that position themselves as information resources are among the most popular.

These bells and whistles seem to be effective ways to drive traffic. According to comScore Media Metrix, approximately 38.2 million Web users visited food sites in September – up 15 percent from last year. Comparing July 2005 with July 2006, Food Network.com had a traffic increase of 21 percent; AllRecipes.com is up 51 percent; and About Food increased by 44 percent. Many of these websites are e-tailers and are leveraging the Web with good results.

One of them is Omaha Steaks, which has been online since 1990 with CompuServe, then with its own site since 1995. Omaha Steaks’ communication director, Beth Weiss, says the online part of their business is the fastest growing and credits their aggressive affiliate campaign, which is run by LinkShare and had 2,800 active affiliates for the month of August 2006.

Weiss explains that as a direct marketing company, 97 to 98 percent of its budget is spent on things that go directly to the consumer, like sending catalogs and emails to their 2.2 million active customers who buy regularly.

“We do very little newspaper or television – only a small amount to promote for the holidays and we do no radio because historically it has not worked for us,” Weiss says. “Our target demographics are differently structured depending on where the customer shops. If they mail order or use the 1-800 number, they tend to be older; younger customers tend to be online. The thing that crosses over all the marketing channels is that because our products are high end, we market to affluent people ” they travel and read, and most are in their late 40s and above.”

What the Big Kids Are Eating

It seems that affluent people in their late 40s or older are the sweet spot for many high-end online food purveyors.

Richard Gore, president of Culinary Entertainment Group (CEG), says “food entertainment space” is driven by boomers who go to three-hour restaurant meals as an evening’s entertainment. “Boomers don’t want to stay out late to go to a concert; they have the money to spend, and they are much more interested in food than earlier generations.”

CEG’s March 2007 introduction of Food University – high-end cooking events with an accompanying website – is targeted at boomers. To reach boomers with an estimated split of approximately 60 percent female and 40 percent male in regions such as Chicago, Jacksonville, and Houston, Gore says they are using a mix of print, local radio and local cable, with “events like celebrity chef tours, where the public can mix with their favorite chefs, and provide companies involved with a huge array of experiential marketing opportunities. People see a product and how it’s being used, sample it and they’re hooked,” he says.

Food University, through a partnership with Wyndham Resorts, will engage the American public in learning how to cook more adventurous fare by providing access to celebrity chefs like Martin Yan and Sara Moulton.

Benefiting from this exposure to celebrity chefs are many high-end food purveyors, including two e-tailers, Cooking.com and igourmet.com. Both have realized revenue increases in the past year; igourmet.com’s by 50 percent. Marketing manager of Cooking.com Kari Taylor explains that “the popularity of celebrity chefs and food television has driven awareness and increased demand of cooking products”; some of their more popular products include high-dollar items like Zojirushi bread machines, Calphalon cookware and Capresso coffee machines.

Tracy Chesman, vice president of sales at igourmet.com, a purveyor of 700 cheeses and hard-to-find specialty foods such as Douwe Egberts coffee, says there has been an increased interest in gourmet foods due to the accessibility that consumers have to cooking media such as cable television and the Internet.

“We got a lot of increased traffic when Emeril was on the Food Network and talked about Maytag cheese,” Chesman says.

She adds that igourmet.com saw an increase in sales of a specific type of walnut oil when a magazine article recommended it, which showed the company there was a direct reaction from communication in the media.

The Search For Food

Both companies – igourmet and Cooking.com – credit affiliate marketing and search marketing as key drivers of their business. Cooking.com has an affiliate program run by Commission Junction and their top affiliates include eBates and Upromise.

igourmet.com has outsourced its affiliate program to outsourced program management company Pepperjam.com since 2000 and says that since its launch, sales have increased every single year.

“A huge part of igourmet.com’s success is due to the affiliates – who are essential,” says Michael Jones, COO of Pepperjam. Through igourmet.com’s LinkShare program, they can see that the amount of producing affiliates is increasing. Pepperjam says igourmet.com’s top “affiliates are loyalty programs like Upromise, Ebates, MyPoints and American Airlines AAdvantage, as well as the niche gourmet site, BacchusSellers.”

Jones adds that igourmet.com has very active and aggressive campaigns on Google, Yahoo and MSN and that search generates a large part of their business. Jones claims igourmet.com is the No. 1 listing for “gourmet cheese” and they “maximize campaigns organically on the natural listing through search engine optimization as well as through pay per click.”

Women In the Kitchen and Online

Both igourmet.com and Cooking.com say women make up the majority of their customers. For Cooking.com, their target audience is 35-to-65-year-old women with an interest in cooking, or empty nesters or mothers with younger children. The bulk of igourmet.com’s customers are mostly middle to upper class and clustered in metropolitan areas on the East Coast with a higher percentage of females (55 percent).

The 55 percent figure is in step with findings from comScore Media Metrix. They found that in July 2006, affluent females were the most popular demographic segment among food site visitors, with a 54.4 percent share.

However, vice president of research for BIGresearch, Joe Pilotta, warns that food companies should not jump to conclusions about who uses the Internet to shop for food. He said that in August 2006, BIGresearch did a survey of 15,000 people about the media influences for purchasing food and found that “the normal kind of intuitive thinking is not correct.”

Pilotta says that people who have a lower income use the Web a lot to comparison shop online before they go shopping. For example, a budget-oriented mother of young children will go online to check the food prices for items such as chicken and crackers at Safeway versus Albertson’s while preparing her shopping list before she gets in the car.

Many food sites are targeting Gen-Xers including CNET’s Chow.com, which is aimed at 25-to-45-year-olds, whom they believe are passionate about food but possibly not very skilled at preparing it. Chow.com, which launched in September 2006, includes the popular discussion boards of Chowhound.com and video tutorials on subjects like how to dice an onion, as well as recipes, restaurant reviews, party tips and coverage of food marketing.

SlashFood, a blog that is part of Weblogs.com, is another food site whose audience is primarily 25-to-45-year-olds. Sarah Gim, editor of SlashFood, says the site has easily built up traffic month-over-month since it launched in August of 2005. She says that their team of paid bloggers covers a gamut of topics, from food news to restaurant reviews to food culture, and credits the site’s popularity to the fact that “food in general is more popular than 10 years ago and many readers are motivated by issues concerning health.”

The Food Network is the most exhaustive example of a television and Web channel that has experimented with targeting everyone from foodies to newbies. The Food Network reaches 90 million homes in the United States and the core audience is 25 to 54, more female than male.

However, male viewers increase and the average age of viewers falls in the evenings, which is why shows that are similar to competitive sports, such as “Throwdown with Bobby Flay,” succeed. “Iron Chef” is one of Food Network’s most popular, attracting many from outside its normal demographic – in particular, the core 18-to-49-year-old male demographic.

In October 2006, a 20-part series and accompanying website called “Gourmet’s Diary of a Foodie” kicked off on PBS. It introduces viewers to exotic ingredients and in-the-know chefs on an international level. According to an August 2006 Nielsen Media Research poll, 38.7 percent of PBS viewers make more than $60,000 per household and 30.8 percent have a four-year college education.

So how can food marketers reach such a wide swath of users online – who range in age, gender, education and geographic location? Because of the abundance of websites, Jupiter’s Riley says “food companies typically use interactive agencies to plan their media spending for them. The agencies will often partner with well-known content sites using demographic targeting information.” While many food companies want to drive potential customers to their websites, Riley says the ultimate goal is to provide an engaging brand experience. Food companies seek to do this through a variety of interactive components.

Interactive Is On the Front Burner

One effective component that Sara Lee used for its “Soft & Smooth Whole Grain Wheat Bread” campaign was word of mouth, which was created by AllRecipes.com to reach mothers of school-age children.

AllRecipes.com, which also provided the campaign’s recipe feature, created a custom consumer panel where qualified home cooks were invited to try their new product for free. AllRecipe.com’s vice president of marketing and partner affairs, Esmee Williams, explains that “an invitation was advertised in areas of the site where influencers were most likely to spend time.” Influencers (members who submit content and share opinions) were asked to fill out a short survey; those who fit the defined target profile were provided with online coupons good for 70 to 100 percent off a loaf of the bread.

More than 15,000 people participated, most of them in the target market. Seventy percent of the audience downloaded the coupon, and 40 percent redeemed it.

“Those who agreed to participate in the ‘taste test’ panel were also provided exclusive access to a co-branded microsite where they could share their feedback, submit recipes utilizing the product as an ingredient or forward product recommendations accompanied by a product coupon to friends,” Williams says.

Many food companies have microsites, which create environments that foster a relationship between a specific brand and audience. Among the most successful is KraftFoods.com, which frequently has been the No. 1 branded food domain during the past five years. According to Jupiter’s Riley, it has become a full-fledged destination site with recipes that incorporate Kraft products to appeal to busy moms as well as community message boards where users can swap ideas, and which Kraft can respond to and monitor.

Paula Sneed, Kraft’s executive vice president of global marketing resources, said in her keynote speech at the DMA conference in October that interaction with customers is imperative.

“We need to talk to consumers to find out their underlying motivations ” to succeed, it’s all about customer insights,” Sneed says.

eMarketer’s Phillips says food companies read user-generated content in blogs and message boards “to see which way the wind is blowing before they launch a product – it is an online focus group that offers feedback.”

In October 2006, Kraft partnered with MSN to launch Chef to the Rescue segments, which are four-to-five-minute videos that can be downloaded on demand, so users watch them at their convenience. They feature celebrity chef Cat Cora creating meals based on recipes from KraftFoods.com and are a way that Kraft serves its target audience of time-crunched mothers. Sneed explains that this is “the type of next-generation advertising that adds value to its core customer.”

Kraft Foods, along with Masterfoods USA and Sheraton Hotels & Resorts are among the initial sponsors of Yahoo Food, a section that Yahoo launched in November that offers visitors recipes, food-related articles, blog posts, celebrity interviews and video.

Intended for sophisticates as well as casual cooks, Yahoo Food offers original and syndicated content including articles from the magazine Every Day with Rachel Ray, recipes from Epicurious, original posts from 13 food bloggers like The New York Times writer Ed Levine and video from Martha Stewart Living Omnimedia. The site also will include a Yahoo video show, “Cheap and Easy,” with clips advising users how to make dishes for not more than $5 in less than five minutes.

Diners Eat Up Video

Videos and webisodes are now de rigueur components of many food-related websites with the hopes that these elements will become viral. eMarketer’s Phillips explains that the goal is to have users find it authentic and pass it to each other, and says that today it is easy for companies “to post something on YouTube and see if it goes viral.” She says a great example that was sent to her is Smirnoff’s Tea Partay video, which is a send-up of a gangster rap song, set in Greenwich, Conn.

Another viral marketing campaign, “Long John Silver’s Shrimp Buddy,” is about a guy going on a road trip with a man in a shrimp suit. It has received good and bad critiques from online users, which exemplifies the dangers of viral marketing campaigns that lack credibility. One blogger wrote, “It’s the weakest viral campaign I have seen” and another criticized that “It’s about as genuine as Coke’s summer road trip commercials with a bunch of teenagers encountering spontaneous poetry reads and magic shows.”

Perhaps the most well-known viral campaign for a food company is Burger King’s Subservient Chicken site, which had a million hits within a day after being released, and received 20 million hits within a week. Users could control the movement of a man dressed up like a chicken by typing commands such as “do jumping jacks,” “dance” or “watch TV.” Joseph Jaffe explains that this type of engaging interaction with customers is incredibly valuable because it is more of an opt-in media versus TV, which is mass media that everybody sees. Jaffe says the average user of the Subservient Chicken site spent 7.5 voluntary minutes there. “That’s 15 30-second spots and I bet that’s worth 50 30-second spots because the viewer is engaged the whole time, he says.”

A Web campaign that includes a podcast or user-generated content requires the person to register and therefore guarantees interactivity. And by engaging with users, companies are building awareness and keeping their brand top of mind. Food companies like Burger King and Campbell’s Soup are not trying to sell Whoppers or cans of tomato soup over the Internet – they are trying to build online relationships with users with the hope that the brand experience will follow them off-line and make them brand loyalists. eMarketer’s Phillips says companies will use every interactive angle possible to engage with customers – from word-of-mouth campaigns, to ringtones, to sweepstakes, to advergames.

eMarketer’s James Belcher predicts that advergames and in-game advertising are “small but growing and important” and points to Microsoft’s 2006 purchase of Massive, a maker of in-game advertising, as proof of the momentum.

In-game advertising places targeted ads inside video games – such as on billboards as a player skateboards down a street – and serves different billboards to different users depending on their geography and age. The technology is now attracting deep-pocketed corporate sponsors who see video games as a great way to reach desirable audiences such as young males.

Sara Lee, department store Kohl’s and chip maker AMD are experimenting with in-game advertising with the sponsorship of a series of online games called “The Flushed Away Underground Adventure” that launched on AOL in October. The game called on players of all ages to solve a series of challenges that feature characters from the movie “Flushed Away.” Sponsors have an online presence in the games as well as plug their products in customized pre-roll video ads and banners.

Marketers will be interested to know that according to October’s comScore Media Metrix’s Game Metrix, a study that analyzes gamers’ cross-platform behaviors, 37 percent of heavy gamers agreed that featuring actual products or companies in games makes them feel more realistic, and half of heavy gamers believe that it is inevitable and will be in all or most games in the future. The study also found that video games appeal to not just teenage males or children – on average, gamers are 41 and have an annual income of $55,000; females account for 52 percent of the gaming audience.

A July 2006 report by the Kaiser Family Foundation, based on analysis of 77 branded food websites that are targeted at kids, found that 73 percent of the sites contained advergames, ranging from one to more than 60 games per site. McDonald’s Ronald.com has pages for kids to color, and Capncrunch.com, which promotes the Quaker Oats cereal, offers screen savers.

M&M’s has launched advergames designed for all ages. In October, they introduced the advergame “50 Dark Movies Hidden in a Painting,” which features a Brueghel-style painting with a series of visual riddles where players move around the screen and find the 50 movie titles represented by the characters in the painting.

Another advergame, the M&M’s Trivia Game, asks questions like, “Who drives the NASCAR M&M race car?” which for most users require them to search for the answers. Kevin Ryan, CEO of multichannel advertising agency Kinetic Results, explains that CPG companies like M&M’s are incentivizing users to search on their brand for the answers. “It is all about building an experience,” Ryan says. “It is not likely people are going to buy M&M’s online – they just want people to interact with the brand. It is a prototypical experience.”

The Search For Sustenance

Ryan believes, “There is a tremendous amount of opportunity in using search as a brand conduit ” it is the foundation for growth in the next couple of years,” he says. “There is a big value for search beyond direct response.”

Search is a very effective way of valuing and measuring the impact of investments in other types of media; for example, marketers can use search as a way of monitoring the effectiveness of a TV campaign, as they will see spikes in search activity immediately after the campaign launches.

Cam Balzer, vice president of strategy planning for Performics, agrees that search is helpful for branding efforts. He says that initially some food marketers and CPGs did not see the value in buying keywords if they did not convert, but marketers are starting to understand that consumers are not always looking for immediate gratification. “Marketers are realizing there is value in buying a keyword like ‘turkey’ because although a user might not be ready to buy a turkey at that moment, they might be searching on the word while they think about the kind of turkey to prepare for the holidays.”

Of course, some keyword buys do convert well. “Some of our clients are in the food-gifting business so they buy terms like ‘holiday pears’ and ‘holiday popcorn basket.’ Those words get costly but they convert very well and the high costs pay off. It is the direct market companies that leverage those,” Balzer says.

For the most part, it seems that food companies are just starting to realize the potential of search to engage their audiences. Balzer says, “A lot of food companies are strictly promoting their brand online and they need to reach beyond people who know about them to engage new consumers. For example, there are not many players for search terms like ‘healthy snacks’ or ‘healthy meats.’ Those words are not used by the household brand names like you would think and that is where the opportunity lies.”

Performics has worked with a meat-related food company and says that contextual targeting has performed well for building awareness of its product. Balzer says, “We have seen success with what they call ‘flavor conquesting,’ which means that one brand buys another brand’s keywords. For one client – if we were buying for a turkey product, we would buy ham in the content-targeting network so if someone is reading an article about ham sandwiches, the turkey ad pops up. We know the reader is interested in a similar food product [in this case a deli meat sandwich].”

Jupiter’s Riley says over the next few years, CPG spending on search “will grow a lot,” from $40 million in 2005 to $128 million in 2010, a compound annual growth rate of 26 percent. Search is by far the most lucrative area, accounting for 40 percent of the total online ad spending in the U.S., according to JupiterResearch.

For food companies to take advantage of search, they need to have good search engine marketing programs that are concerned with both paid and organic listings. Gary Angel, CEO of SEMphonic, a search engine marketing analytics consultancy, says, “Organic listings are an incredible value since they are essentially uncharged exposure. In addition, more clicks come from organic listings than paid; so organic listings are the No. 1 potential traffic source.”

Angel claims that paid listings provide coverage across a breadth of terms that can’t possibly be highly rated organically, scale programs to drive traffic beyond organic levels as well as allow companies to control the landing page and message given to consumers.

He says many companies have shifted significant resources into organic optimization in the last year – since this was an area that was significantly underutilized. He says that paid advertising really skyrocketed two years ago and has remained very strong – but many companies have essentially reached a plateau.

Online Offers Steak and Sizzle

Search is one of the channels through which Niman Ranch, a premium brand of meat, is acquiring new customers on a pay-for-performance basis. Niman Ranch pays its online marketing agency, LSF Interactive, only when new Web visitors buy – not for visitors that browse but don’t buy (leads) and not for existing customers that purchase again (repeat customers).

The comprehensive campaign includes search, email, banner advertising and comparison shopping engines such as Shopzilla and Yahoo’s shopping comparison tool.

Daniel Laury, CEO of LSF Interactive, explains that because they are compensated on a pay-for-performance basis, their job is to get the best conversion rates, which they do by tweaking the ad copy and landing pages and by fine-tuning their targeting. He says that recruitment through email and banners enables them to target users better.

According to Kinetic Results’ Ryan, companies have to foray into advertising on multichannels in order to reach audiences who are increasingly not only online but multitasking while they are online. Today people are on their computers instant messaging, while emailing and playing a video game. They have the television on in the background while they talk on their mobile phones. While they flip through the newspaper on the bus, they are listening to the radio or to their iPods. To reach these multitaskers, food companies have to develop campaigns that integrate several components.

An example of this is “Sara Lee’s Joy of Eating” campaign, which is being promoted on Sirius Satellite Radio’s Martha Stewart Living Radio channel and with an interactive presence on the Sirius website. The campaign also includes television ads, a Sara Lee microsite, online advertising, point-of-sale and visuals on packaging and bakery delivery trucks.

Some think that the Internet will never be a main channel for major food brands to reach customers. Datamonitor’s Productscan Online’s Vierhile believes that “There is no real compelling reason for consumers to visit food company sites except for recipes, which are really a one-off.” He believes that if anything has changed over the last 20 years, it is that food companies “have to get the products on the shelf.” To accomplish this, Vierhile thinks that food companies are focusing more on product packaging and in-store promotion.

In-store promotion includes free samples, shelf-edge talkers, in-store coupons, advertisements on conveyor belts, messages on the floor as well as in-store media on TV monitors. According to an August 2006 BIGresearch Simultaneous Media Survey of over 15,000 people, the top media influences for purchasers include in-store promotion – with the most significant influencer being coupons (see chart below).

A Mobile Feast

BIGResearch’s Pilotta says that “Coupons are still very effective even though approximately 1 percent are redeemed.” According to a Prospectiv October 2005 study, approximately 10.5 percent of consumers get their coupons from online sources, about 30 percent of consumers said they would like to receive coupons through online channels and more than half would like to receive coupons online if they were tailored to their interests.

A growing alternative to sending coupons inserted in newspapers is to send them in email newsletters. Email Data Source says that supermarkets that send email newsletters are successful in driving traffic to their Web properties. Supermarkets’ weekly newsletters offer specific targeting, can be personalized and include recipes, online specials and links to weekly ads.

Another innovative way for food merchants to deliver coupons and offers is through mobile marketing platforms including ipsh, VeriSign’s m-Qube, Motricity’s GoldPocket Wireless and MobileLime’s Mobile Rewards.

“Mobile advertising is better than online advertising – it is much more targeted,” says Bob Wesley, president and CEO of MobileLime. “The merchant can communicate with their customers before, during and after each purchase transaction, directly influencing buying behaviors at the point of sale. It is the ultimate in one-to-one communication because a person’s cell phone is a unique ID that is portable.”

For example, Chevy Chase Supermarket is using MobileLime’s Mobile Rewards platform to offer its patrons information-based alerts and instant savings on items store-wide through their mobile phones. Chevy Chase Supermarket was able to tell its customers that they were having a limited- time offer on Edie’s ice cream. This drove a large crowd of customers to stop by the store for the ice cream and also helped to increase loyalty sales on other items for which Chevy Chase sent alerts while shoppers were in the store.

In September 2006, Go-Tan, an Asian food brand, ran a marketing experiment in a supermarket in the Netherlands. Customers shopping in the supermarket (and anyone walking within a 100-meter distance) who had an open Bluetooth connection were reached by a contact request from the Go-Tan device about discounted Go-Tan products available in the store. More than 25 percent of Dutch mobile users leave their Bluetooth with an open connection, which means that Bluetooth could prove to be an appealing channel to establish direct and immediate communication with end users.

Food seems to be a natural match for the Internet. People love to talk about food and share food with others – and foodrelated sites are capitalizing on this social nature by offering various social media tools. It is predicted that food-related sites will continue to grow as interest continues – Yahoo indicated that they launched Yahoo Food because they saw it as a big opportunity and anticipate that CPG companies as well as health and diet companies will buy inventory in the section.

While the Internet is not the No. 1 channel for reaching consumers, most everyone agrees that it is vital for food companies to have an online presence. The KraftFoods.com URL is featured along with the 1-800 number on Kraft’s brand packaging, in their advertising and in Kraft’s Food and Family magazine. If food companies want to reach consumers with a multichannel campaign, Kraft Foods’ Sneed points out that all of the disciplines have to be integrated to maximize the potential for effectiveness.

For example, in 2006, Kraft Foods employed many marketing channels when they wanted to target Easy Mac macaroni and cheese cups to college kids instead of mothers. Kraft Foods used print ads, television spots and built a youthful and innovative website called Scam Some Mac, which includes short videos, an advergame and a viral element that lets you ask others to send you some mac & cheese.

Consumers can expect to see more pioneering online campaigns as food companies increase their spending on Internet initiatives in hopes of engaging users. With the growing amount of traffic to food-related sites, food companies will throw money at their online efforts although some will wonder if online exposure leads to off-line conversion.

Jaffe points out that people can tune out a television commercial with a remote control and ignore a magazine ad by turning the page, but to watch a video or participate in a sweepstakes online, users are required to register. Jaffe says that, “People are always trying to measure the value of an online campaign but maybe people should be trying to validate the value of an off-line campaign.”

In the end, it is finding an optimal mix of media, including Internet initiatives, which will move a company forward. Kraft Foods’ Sneed says, “Companies should not be afraid of trying new and innovation online campaigns – they need to be leaders, not followers.”

Have You Heard the Word?

Tell a friend: Word of mouth rocks. It’s how many people find a dentist, a plumber, a pediatrician and a realtor, even a shrink. You tend to trust your friends. So when one of your close pals swears by her hairstylist, raving about what a “shear” delight he is, you are apt to give him a shot rather than thumbing through the phone book and blindly calling random barbers. Then you’ll tell your friends. “

Small wonder this type of hype is highly coveted.

Now countless companies are trying to glean lessons from the phenomenon of friend-given recommendations. It’s increasingly difficult to cut through the advertising clutter, as consumers gain more and more control over the messages they receive in this world of DVRs and video on demand. Thus, companies invest an estimated $100 million to $150 million a year on word-of-mouth or buzz marketing.

Intelliseek’s “2005 Consumer-Generated Media and Engagement Study” polled 660 online consumers and explored attitudes and opinions across key consumer-generated media venues – including Internet message boards, forums, blogs, direct company feedback and offline conversation. The study found that, compared to traditional advertising, word-of-mouth behavior continues to grow in importance in consumer awareness, trial and purchase of new products.

Consumers are 50 percent more likely to be influenced by recommendations from peers than by radio or TV ads, which is a slightly higher level of influence and trust than found in a 2004 study coauthored by Intelliseek and Forrester.

Yes, everyone knows that good word of mouth can do wonders for a company’s reputation and its bottom line. Of course, the flip side is that the masses can also bad-mouth you and ruin your chances at future fame and fortune. The reality is that, while everyone wants to get good word-of-mouth buzz, not many companies understand how to garner that much sought-after street cred and high regard.

If you’re an affiliate, buzz marketing is an affordable way to generate interest and develop traffic. Even the smallest of affiliate sites can engage customers in this way. It takes strategic thinking but not an ad budget to rival Coke or Pepsi. What is required, however, is some dedication to spreading an idea, a few passionate people and a willingness to talk. A lot. The payoff is that you’ll encourage some folks to check you out online. And you might even earn better commissions as a result.

But currently, word-of-mouth marketing appears to be a fickle business, but if marketers apply some strategy, they are sure to be singing its praises. Whether you tell your friends your secrets or not is up to you.

Take a Bite From Apple’s Book

Apple Computer is one of the best-loved brands around. Even though it claims less than 5 percent of the PC market, fans are rabid about its products. And take a look down the street – see any white ear buds? The prolific iPod phenomenon is proof of how Apple is transforming the music business through good buzz.

One reason Apple got to be so popular in the first place can be traced to Guy Kawasaki, best known for his former role as chief evangelist at Apple; he helped spread the company’s Macintosh operating system through word of mouth. Soon after, other tech firms like Microsoft hired their own evangelists. Kawasaki has authored eight books on marketing, and he thinks that today’s high tech changes will make it easier to spread the word.

“The ubiquity and freedom of broadband are absolutely changing the world, making it easier to build brands, not harder. You used to have to have $3 million to buy a Super Bowl ad,” Kawasaki says. “MySpace and Facebook have been able to build great products and use word-of-mouth and guerrilla marketing to build amazing brands. Nowadays, blogging and podcasting are considerably more powerful means of word of mouth than people simply spreading the word by, well, word of mouth.”

Kawasaki’s advice to marketers hoping to build buzz is to first create a great product and then let customers try it out, let them test-drive. And maybe, just maybe, they’ll spread the good word.

G’head, Squeeze the Charmin

A couple of marketers are taking Kawasaki’s advice and letting the public experience their products in a very hands-on way in the form of “pop up” stores. It’s tough to cut through the clutter, so some brands are renting space on a short-term basis to let consumers experience their goods and generate buzz.

Kodak and Illy Caffè both wanted to let consumers see and experience their products in a hands-on environment. So each opened brief “art exhibits” at their self-created temporary galleries. Kodak’s galleries, which were open during the month of November in New York City and San Francisco, didn’t have merchandise for sale, just photos on the walls and new cameras for gallery-goers to check out.

“The vision behind the Kodak Gallery is to invite consumers in to experience photography and to feel and touch the products. It is much more about the learning experience and getting immersed in the digital experience,” says Kate Imwalle, who helped put together the Kodak Gallery in San Francisco’s Cow Hollow neighborhood. “This gallery is about the power of photographs and celebrating community.”

Kodak promoted the gallery and encouraged foot traffic, but a key component of the experiment was the lack of outright product-pushing. That way, gallery-goers could relax and enjoy the environment.

Galleria Illy at 382 West Broadway in New York had a coffeehouse vibe and tons of art events – acclaimed painter Julian Schnabel created coffee mugs, and NYU film students shot a series of films – to get American consumers hip to its brand. The rental was short term in the high-priced SoHo neighborhood; it opened Sept. 15 and closed Dec. 15. The idea was to give people a chance to experience the brand in the artsy milieu of a coffeehouse/art gallery.

“The galleria was a physical manifestation of our brand. It was like our business card,” says Greg Fea, president and CEO of Illy Caffè North America. “People got to experience Illy and education and culture. They had a full immersion experience with the brand. It was received really well. We’ve been extremely pleased. We had events around art and culture, because culture is a big part of coffee. ” People in New York got to know us better. We served 20,000 coffees, like 300 to 400 on weekend days, and 200 a day during the week.”

Kodak and Illy both advertised without being overt about it. Instead, they created places where people gather and could talk about photographs or coffee. They created communities.

Create Community

Communities happen online, too. A perfect example of how rock bands have used word of mouth to gain recognition for their songs and gigs is found at MySpace.com. Basically, MySpace combined the Internet Underground Music Archive’s song-posting service with Friendster.com’s meet-your-buddies’-buddies community model while ditching that site’s control-freakish attitude on how members can and can’t use the service.

More than 42 million members have joined MySpace.com since its inception in 2003. Rupert Murdoch’s News Corp. bought the website for $583 million last summer.

“Our band has been a part of MySpace since 2003, and we have like a million friends now,” say Pete Wentz, lyricist and bassist of Fall Out Boy, a punk/pop band that will be featured on a MySpace record compilation. “There’s a whole group of kids who are disenfranchised. So you’ve got to go to sites like MySpace.com to reach those people.”

MySpace.com founder Chris DeWolfe says that his company will remain true to user-generated, not corporate-dictated content. “Music labels now understand word of mouth. It happens in an organic manner on MySpace.”

Viral Videos

Now that broadband is a reality, videos can get passed around virally. Spending on online video advertising is anticipated to triple in the next two years, according to research firm eMarketer. Spending will reach $640 million in 2007, up from $225 million 2005. Advertisers will spend at least $1.5 billion or more by the end of the decade.

Coffee company Illy has video podcasts to immerse people in the brand. And Nike has a stealth video campaign out, too. In it, Brazilian soccer sensation Ronaldinho sits on the grass. Someone hands him a metal box. He takes out new cleats, laces them up, then juggles a ball and kicks it into the crossbar four times in succession. A swoosh is subtle but clearly visible through the 2-minute, 44- second commercial. And no, this isn’t a Nike spot on TV.

This “Touch of Gold” video was viewed at a nascent website called YouTube.com an astonishing 1.9 million times after being up on the site for only a month. Nike, a pro at underground publicity, creates under-the-radar campaigns that spread like wildfire – and doesn’t shell out millions to do so.

Nike’s latest play-for-no-pay stunt also includes “Dance with the Ball” and “Don’t Tread on Me: Manifesto.”

“If you want to talk to U.S. soccer fans, you have to go online,” says Nike spokesperson Dean Stoyer. “Soccer is a huge initiative for Nike, and the soccer community lives online. We’re always looking for new ways to be on the cutting edge.”

A few weeks ago, YouTube.com was just two guys – Chad Hurley and Steve Chen, CEO and CTO, respectively (both early employees of PayPal). Currently, YouTube uploads 10,000 videos per day, moving 12 terabytes of video daily – an entire Blockbuster store and a half worth of footage.

The site highlights the most-viewed videos and who’s linking to each clip. MySpace, BlogSpot.com and Friendster all helped steer traffic to Touch of Gold. The best part: YouTube is like photo-hosting site Flickr.com, only for videos – and it’s free. People can upload and share clips with the world.

Beware the Backlash

A word of caution to any would-be word-of-mouth marketers: Be careful what you wish for. For example, take Sony, which recently hired graffiti artists in various cities to paint comics on outdoor surfaces (it paid local merchants for the right to do so). The artwork showed kids playing with various toys with dazed, expressionless faces and hypnotized eyes. Upon closer inspection, the toys they are playing with aren’t rocking horses, marionettes or skateboards, but Sony PSP (PlayStation Portable) game devices.

The ads never mention the company or the product. The concept behind the campaign was that people would see the graffiti, recognize the PSP, think they were cool and tell others to check it out.

The only problem was that in locations like San Francisco, real artists tagged the work “Fony” and wrote scathing manifestos telling the electronics giant to leave city sidewalks alone. This is a perfect example of attempted word of mouth gone terribly wrong. Sony got plenty of buzz, but it also branded itself a poseur in the indie art community.

Likewise, the Intelliseek study found strong negative reaction to shill marketing or artificial buzz, in which consumers are paid or offered incentives to recommend products or brands. One-third of respondents said they would be disappointed if a trusted contact did not fully disclose a paid or incentive-based relationship; 26 percent said they would never trust the opinion of that friend again; and 30 percent said they would be less likely to buy a product or service.

“Trust is the currency of effective advertising,” says Pete Blackshaw, Intelliseek’s chief marketing officer who oversaw the study. “But it’s highly fragile.”

Boston-based BzzAgent has clients like Lee Jeans, Penguin Books and Ralph Lauren. Its “agents” are regular people who volunteer to receive products and plug them. Technically, disclosure is encouraged, but it’s left up to the individual. Tremor, Procter & Gamble’s four-year-old word-of-mouth division, has a group of selected “cool” teens to help hype products. Both firms have gotten a lot of buzz for the buzz they create for clients. But not all the buzz is bueno.

In October, nonprofit advocacy group Commercial Alert sent a letter to the Federal Trade Commission urging a thorough investigation of P&G’s Tremor, which has enlisted about 250,000 teenagers in its buzz marketing salesforce. Commercial Alert charges that Tremor targets teens with deceptive advertising.

“The Commission should carefully examine the targeting of minors by buzz marketing, because children and teenagers tend to be more impressionable and easy to deceive,” says Gary Ruskin, Commercial Alert’s executive director. “The Commission should do this, at a minimum, by issuing subpoenas to executives at Procter & Gamble’s Tremor and other buzz marketers that target children and teenagers, to determine whether their endorsers are disclosing that they are paid marketers.”

DIANE ANDERSON is an editor at Brandweek. She previously worked for the Industry Standard, HotWired and Wired News.

Traveling and Treasure Hunting

Every time you go on the road, you should position yourself to market like a guerrilla and earn money like a king named Midas.

Keep in mind that the road leads in both directions. You can promote your site when you’re away from your town and you can promote it to travelers who come to your town. It’s a double-edged golden opportunity.

When you’re a traveler, don’t forget that the copy shops of the world are the allies of affiliates. Taking a trip to Houston? Print up your marketing weapons before you leave, then take them to the closest copy shop to your hotel in Houston.

Ask them to print a quantity of circulars, posters, stickers, mini-brochures, gift certificates, coupons and/or postcards, then distribute them at hotels, airports, trade shows, ballgames, concerts and bulletin boards. For example, there are 800 free community bulletin boards in the San Francisco Bay Area, and there are hundreds of others in most major cities. Post your flier on any or all of them. And you thought that visibility and awareness cost a lot of money? Wrong!

Whatever you print, copy, post or distribute, be sure it is exceptionally easy to read and lists your Web site. That, too, should be a paragon of clarity.

You’ve heard of viral marketing. It only happens if people want to talk about your product, service or marketing. If you’ve got the goods, your marketing weapons can be your virus. Word-of-mouth advertising is often generated by a “blitz” or “total immersion campaign” such as this. Your job is to overcome inertia and create momentum. Using a combination of guerrilla marketing tools does this.

You’re not going anywhere? No problem. Canny affiliates also use this kind of 360 degree marketing at home. They generously distribute their marketing materials in venues visited by travelers. We’re talking restaurants, hotels, convention halls, theaters, night clubs, sporting events, concerts, tourist attractions, train stations and all the rest that draw crowds of tourists.

Give those people a dose of your marketing message coupled with information that will help them while they’re in town. Some of those folks will actually take that information home with them, possibly use it on their sites, and if you’ve done a good job of marketing, evangelize about your “biz” to their friends and co-workers. Don’t laugh. It happens all the time.

It’s always a good idea to see if any trade shows are being held where you’re visiting. You don’t have to exhibit at a trade show to earn a lot of money. At any show, you can learn, you can make contacts and you can get good ideas. Your take-homes from a show should be new relationships and profit-producing ideas. Fill your suitcase.

If I had to pick a list of things all traveling affiliates should do while they’re accomplishing the primary mission of the trip, they would be these seven guerrilla marketing tactics:

1. Start viral marketing. It’s still the most power-packed method of marketing because people trust their friends as credible sources. You get it when you are a first-rate listener, when you ask questions and when you pay attention to the details spoken by the person to whom you’re listening. You also get it in spades when you follow up by phone, email or surface mail. And you can speed it up when you institute a power-packed referral plan, tapping current customers and prospects for the names of prospective customers.

2. Influence people who can influence other people. That’s exactly what Nike is doing when it gives free shoes to athletes and coaches. You may meet some serious movers and shakers while you’re away from home. Some of them can motivate hundreds of others to do things you want them to do. As all customers are not created equal, all prospects are just as unequal. Your “A” list may be worth more to you than your “B” through “Z” list combined. The road is a great place to meet the influencers.

3. Focus on what’s most important to your target audience. After all, they don’t pay attention to marketing, but they pay rapt attention to whatever interests them, and that can be marketing. They pay especially rapt attention to people who pay attention to them, who use their names, who look them directly in the eye and who smile. When you’re a traveling guerrilla, often your handshake is a more important marketing weapon than your computer.

4. Expand your potential for getting free publicity. You can do it by making it a point to develop at least one new media contact each time you visit a city. Whether you have a meeting, a lunch, a conversation or a cocktail with them, media contacts are your key to dynamite public relations. There is no substitute for knowing a media contact on a first name basis. Guerrillas never assume that PR kits and press releases can do the job. No way. Media contacts do the job.

5. Enrich your travels with brochures and newsletters. These make exceptional conversation starters, serve as potent follow-up weapons and allow you to intensify your relationships. They also allow you to prove your expertise, to help your prospects and customers and to sell the dickens out of your offering. No longer are they expensive to produce. You can offer your free brochure or no-cost newsletter to all the prospects you meet while traveling and while at your destination. You can and should even offer them at home, sweet home.

6. Utilize guerrilla media. By the time consumers figure out that the message you’ve stenciled in chalk on the sidewalk is actually an ad, you’ve already hit home with them. Look into all sign-posting opportunities. They are all over the place. You’ll learn to love them. Become aware of the countless opportunities to run free and low-cost classified ads prior to your trip.

7. Make yourself the recognized expert by speaking before groups while your travel. If you offer to speak for free, you’ll be dazzling at the speaking invitations you’ll get. You should speak for about 30 minutes and provide information of worth and value, delivered with passion and insight. At the end, it’s cool to distribute brochures or give your elevator pitch (that means you should be able to describe your business in the amount of time it takes to ride an elevator).

You do have an elevator pitch, don’t you? As a strong recommendation to travelers, I caution you, as Karl Malden did a couple of decades ago, “Don’t leave home without it.”

Jay Conrad Levinson is the author of the Guerrilla Marketing series of books, the most popular marketing series in history with 14 million sold in 39 languages. He also publishes the Web site GuerrillaMarketingAssociation.com.