March 23, 2005 A PRIMEDIA Property
CONTENTS
Welcome to PROMO's Special Report on Interactive Marketing

Busy Signals: Brands put Internet, cell phone campaigns on speed-dial

American Idol Hits All the Right Notes; Growing its Interactive Fan Base

U.S. Shows Flat Growth in Internet User's Time Forcing Innovation: Global Study

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Welcome to PROMO's Special Report on Interactive Marketing
In this report, PROMO editors take a look at how marketers are using interactive platforms—cell phones and the Web—to extend their brands, even capturing fresh demographics. Big brands are executing big campaigns to generate buzz and bucks.
—Patricia Odell, managing editor, PROMO


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Busy Signals: Brands put Internet, cell phone campaigns on speed-dial
Media keeps migrating to smaller and smaller screens as marketers step up their Internet and mobile-phone promotions.

Sixty-one percent of marketers have earmarked up to 10% of their 2005 marketing budgets for interactive programs (including Internet and text messaging), per PROMO's January survey of marketing execs. Most marketers (55%) spent less than 5% of their 2004 marketing budgets on interactive efforts.

Cutting-edge campaigns feel like exclusive, private conversations between consumers and brands—often with intriguing messages or inside jokes.

Revving up Response

Pontiac challenged camera
phone users to catch a G6
for a chance at $1 million
General Motors' Pontiac just finished a phone-photo sweepstakes that had consumers on the prowl for a G6 sedan. Entrants to the Catch a G6 sweeps snapped a photo of a G6 with their camera phones, then sent it to win@catchaG6.com for a chance to win $1 million. Pontiac staged cars in 15 cities and hosted radio live remote broadcasts at auto shows and other events to give photo bugs access to the G6. Vigilante, New York, and Digitas, Boston, were among the agencies that handled for GM.

Players could also e-mail a G6 image, but Pontiac targeted camera-phone owners (there are an estimated 215 million worldwide) in an effort to reach younger, tech-savvy drivers. Pontiac felt this format better suits that audience than its past promos, including the giveaway of hundreds of G6s on Oprah and online voting for the NCAA's top weekly football and basketball performers through its Game Changing Performance partnership with the NCAA, which awards scholarship dollars to universities, said spokesman Rick Crooks.

"Our objective was to utilize nontraditional media as a promotional tool," said Pontiac brand manager Mary Kubitskey. "Picture phones are becoming common-place, especially among the young, educated and affluent, although they're not heavily used in marketing. We attempted to tap into the culture by using traditional advertising to boost this more nontraditional means of promotion."

Potential Mercedes M-Class
owners can get info directly
from a DISH Network channel
Meanwhile, Mercedes-Benz USA this month gives a sneak preview of its 2006 M-Class SUV to the 10 million TV subscribers of EchoStar Communications Corp.'s DISH Network satellite TV. An online demo can be viewed at Turnermediagroup.com/mercedes.

A 30-second TV spot includes a pop-up message that lets viewers use their TV remotes to link to an interactive environment to preview an expanded version of the TV spot "Test Track," access a photo gallery and order brochures. Those requesting information will get a direct mail invite about an upcoming 35-city ride-and-drive road rally. DISH Network and Denver-based Turner Media Group created the campaign with an assist from OpenTV Corp., San Francisco.

"Mercedes-Benz is taking advantage of emerging platforms to reach the right people with the right messages," said Mercedes VP-marketing Michelle Cervantez in a statement.

Then there's the underwear. Unilever recruited student "ambassadors" for its AXE personal-care brand by cruising laundromats near college campuses and tossing a black thong printed with the come-on "Do you have what it takes to be the next AXE Ambassador?" into the dryers of likely candidates. A URL on the thongs let wannabe ambassadors submit their resumes online. Those hired get a stipend for throwing AXE parties, giving out samples and building buzz for the brand. GMR Marketing, New Berlin, WI, handles.

Calling All Ads

Jane readers snapped photos of an
Armani ad and got information in return
Print publishers, too, are making their ads interactive. For example, teenage girls, who cherish the texting and photo snapping capabilities of their cell phones, will soon be able to leaf through an issue of ELLEgirl Magazine, take a photo of an ad for a pair of must-have shoes and with a few keystrokes send it off to Mobot, a provider of mobile visual search technology, which responds via text with store locations.

Through the technology, dubbed "mobotized," readers can also purchase products, get free samples or discounts or product information. They can participate in games, like scavenger hunts, and sweepstakes, all sponsored by the brands in the ads. The 12-month partnership is in the soft-launch phase with an initial ad coming in the May issue that tells readers about the new technology. A sweepstakes awarding a trip to London encourages readers to register online to get search capability. A roll out is expected with the August or September issue.

"Print has always taken a look at making the medium more interactive," said Deborah Burns, VP-publisher of ELLEgirl. "Everything before this was cumbersome and difficult. What appealed to us was this interactive technology had found a way to take something ubiquitous, the cell phone, and make the magazine come to life in a new way."

ELLEgirl, a Hachette Filipacchi publication, has 500,000 subscribers and 1.4 million readers—average age 17—per issue.

Other titles testing the technology include Vibe, Vibe Vixon and Fairchild Publications' Jane, which pulled a 1%-plus response rate from readers when it mobotized last September.

The ads used promotions and giveaways to trigger action: Calvin Klein gave away jean jackets; Maybelline gave away mascara; Oakley offered an autographed poster of snowboarder Bleiler; and Samsung dangled a cell phone.

"The advertiser does not need to alter their ad in anyway," said Lauren Bigelow, VP-product management and marketing for Mobot, Lexington, MA. "The picture can launch a thousand different options. That's the beauty of the whole thing."

The technology goes beyond print ads. For example, consumers could snap a photo of a CD cover to get ring tones or music samples via cell phone.

Tuning In

Network TV execs are extending their on-air content with text messaging, Web logs and Internet-only video story lines. Fans of NBC crime drama Crossing Jordan
An actress poses as a
"vicitim" in NBC's fictitous
murder mystery
extension on Nigelblog.com
can help one of the medical examiners, Nigel Townsend, solve the Beacon Hill murders on Nigelblog.com. An online diary posted by Crossing Jordan writers asks viewers to review fictitious police reports, crime-scene photos and autopsy results to help solve the case and vie for rewards. (Viewers also tune in to episodes on NBC to get clues.) A sweepstakes awards weekly prize packages worth $300. The grand-prize winner, announced on March 25, gets the prize package and a phone call from actor Steve Valentine, who plays Townsend on the show.

The blog "is just another way to engage people in the world of the show. It's like a big game of Clue," said executive producer Tim Kring. "We wanted to have somewhat of a cool factor."

The blog—and sweeps—helps build buzz for a mature show (now in its fourth season) by making fans part of the action. Since the blog appeared, NBC reported more than 269,300 page views on Nigelblog.com and expects that number to grow, officials said. Kring acknowledged NBC's difficulty generating new buzz about the show that is entering its fifth season. The answer? Let fans be a "part" of the show through an online experience, he said.

"It's a very competitive time," Kring said. "Everybody is trying to squeeze as much as they can out of this limited pie of viewers, which is getting sliced up into smaller and smaller [pieces]. "We're looking for any and all resources we can to entice new viewers. People love the whole idea of being inside the experience."

Food Network invited viewers
to send text and online messages
to their sweethearts
The Food Network tested Internet and text messaging during a March 13 two-hour special, The Food Network Caters Your Wedding, detailing the story of a couple who won a contest to have their wedding broadcast and catered. Viewers submitted love notes (online or via cell phone) to air during the show in a ticker on-screen. The campaign targeted 18- to 34-year-olds via GoldPocket Interactive, Los Angeles. The network fielded 8,593 messages (6,495 online, 2,098 via text message) and ran roughly 540 messages during the two-hour show. Texters were invited to sign up for the network's new SMS newsletter; 377 did.

"People have the misconception that the only thing we do is cooking shows," said Beth Higbee, VP-online at The Food Network. "We're trying to let people know there are other things going on."

The network also wants to help new advertisers integrate their messages online, she added.

One of the goals behind the initiative is to allow new advertisers to integrate online, Higbee said. "This is all a test," Higbee added. "It's research as well. We try a little bit of everything and see what sticks."

Gamers Get Fed

Now picture this: It's evening time, a group of young males are playing Everquest II, a huge online world where thousands of players come together for adventure. The epic storyline gives players the power to be the hero or villain by
Hungry Everquest II
players can link
directly to Pizza Hut's
online ordering system
creating their own unique character. Players encounter hundreds of creatures as they travel across landscapes of rolling hills, barren deserts, dense forests and bustling cities. The players get hungry and want, what else? A pizza. Well, thanks to a test Pizza Hut is conducting with Everquest II, all the players need to do is type the command "/pizza" as they play and they are redirected to the online ordering section of Pizzahut.com where they can place a delivery order and then return to the game.

By building that new functionality into the game, Sony Online Entertainment, the maker of the game, demonstrated a deep understanding of the wants and needs of its target—predominately males ages 18-34 and Pizza Hut is capitalizing on that with a test phase that began in February.

This allows us "to explore the potential of a previously untapped customer demographic," said Pizza Hut spokesperson Patty Sullivan.

Sullivan described the response to the test so far as "favorable." Pizza Hut started its online ordering system in 2001.

Players "seem to like the convenience," she said.

Messaging at the start of the game alerts players to the pizza ordering option.

Eventually, Sony hopes to enhance the feature so players can charge the pizza to their subscription bill. There are about 350,000 subscribers. A monthly subscription costs $14.99.

"These players play at night and ordering pizza was just a natural fit," said Louis Figueroa, director of business development for Sony Online Entertainment, San Diego, CA. "It's a non-intrusive service that we offer to our player base."

A banner at Pizza Hut's home page touts the program and a promotion at Everquest2.station.sony.com reads: Hunger pains interrupting your game? Order Pizza Hut pizza while playing.

Calculating Calories

Consumers can track calories and
cholesterol via McDonald's
interactive Bag a McMeal
At another QSR, it's all about adding and subtracting.

In the wake of childhood obesity, the McDonald's Corp. is giving consumers nutritional facts behind its fast food meals via an interactive meal tracker. Consumers who visit the Bag a McMeal feature at App.mcdonalds.com/bagamcmeal can choose from eight menu topics—sandwiches, French fries, salads, Chicken McNuggets, salad dressing, breakfast, dessert/shakes and beverages—to create a meal that fits their personal nutritional needs. The interactive component was launched in 2002.

Consumers simply select a product online and add it to a bag to calculate the contents' total number of calories, fat, cholesterol, sodium, carbohydrates, dietary fiber and protein. For example, a cheeseburger, medium fries and a small coke yields 810 calories, according to the meal tracker. Likewise, a meal consisting of a Big Mac, small fries with three ketchup packets and a hot fudge sundae would yield 590 calories, according to the site.

"It's just one of the many ways we help our customers make informed decisions," said Tara McLaren, manager-corp. communications for McDonald's. "We provided nutrition information on our trayliners, through in-store brochures and a toll-free number."

To further extend the brand, McDonald's recently launched a new balanced, active lifestyles campaign designed to inspire McDonald's customers to improve their overall well being, "it's what I eat and what I do...i'm lovin' it."

McDonald's "it's what I eat and what I do...i'm lovin' it" campaign includes new advertising initiatives with fresh packaging, TV ads, print ads, educational brochures and an updated Web with tips on how to maintain an active lifestyle.

—By Amy Johannes, Patricia Odell, Tim Parry and Betsy Spethmann


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American Idol Hits All the Right Notes; Growing its Interactive Fan Base
Base by Huge Numbers; By Amy Johannes
Season after season, the hit show American Idol shatters its own record of fans texting and calling in to vote for their favorite contestants. In the third season, the show received 360 million votes. And in the first three weeks of the current season, the votes have already surpassed 120 million. A chorus of in-your-face marketing, online brand extensions and plenty of enthusiasm from fans all combine for star-studded success.

"The magic behind this is that fans are involved in the show," said Jason Turner, director of interactive at FremantleMedia North America, Inc., the show's co-producer. "They are not a passive audience. The fans choose the ending of the show, which is why it is a success year after year. They are the show."

To keep viewers engaged, American Idol continues to enhance Idolonfox.com. There, viewers can access show recaps, see video clips and obtain everything American Idol. The site is one of the most visited in the world, according to the number of hits, Turner said. It has received more than 130 million page views and more than 8 million unique visitors this season, he added.

According to Nielsen//NetRatings, the American Idol Web site captured its largest at-home audience during the sixth week of competition of the fourth season since 2002, with 463,000 unique visitors for the week ending Feb. 27. At the same period in 2004, Nielsen//NetRatings reported 398,000 unique visitors.

Text messaging continues to play a major factor in the show's popularity.

"One can make the argument that American Idol launched text messaging to America," Turner said. "Now people use it to communicate. They use it in their daily lives. It's a huge part of why we are successful."

Fans can vote for America's next superstar via a toll-free number or sending a text message through Cingular Wireless. The cell phone operator now has 50 million subscribers—a result of its merger with AT&T Wireless last year.

Viewers are using their cell phone for more than just voting, Cingular Wireless offers subscribers a chance to join the Idol Wireless Fan Club. Through the club, fans receive weekly show updates, ringtones, trivia and behind-the-scenes pictures sent to their phone.

In addition, Cingular subscribers can get closer to their favorite contestants by participating in American Idol text groups and chats sessions with the show's contestants, Turner said.

"It's a like community sharing the same interests," he said.

The show targets viewers ages 13 to 54.

Fans can extend their
American Idol experience
via the American Idol
online messenger
To further extend the brand, viewers can connect with their friends with the American Idol experience messenger, just launched last month at American-IdolMessenger.com. The messenger gives fans licensed photos, videos and contests in an exclusive American Idol community.

"The object is to extend the brand off air to the captive audience," Turner said. "Our brand is consistently in front of the consumer's face."

American Idol's online popularity jumped 16% in the sixth week this season, compared to the sixth week in 2004. The Web site soared 75% compared to the same week from the first season in 2002, according to Nielsen//NetRatings.

Sponsors of the show are furthering the brand with a sweepstakes touting American Idol-related prizes. Cingular Wireless is sponsoring a sweepstakes, offering fans a chance to win $50,000 in cash or a trip to see the American Idol finale in Los Angeles in May. Every text, picture or instant message sent counts as an entry. The sweepstakes runs through May 31.

Ford is sponsoring a video casting call, inviting consumers to make their own music video for a chance to win a Ford Focus, a trip to see the season finale and a walk-on role in a music video featuring American Idol contestants and $500 in cash. The sweepstakes runs through March 28.

When American Idol first hit the airwaves in 2002, the show's producers thought they'd be lucky to draw 20 million votes from viewers. The FOX reality show not only exceeded expectations but also drew just under 100 million text messaging and call in votes in its first season.

What will the future hold for American Idol? Turner is hoping for increasing popularity.

"If it ain't broke, don't fix it," Turner said. "This year, we thought it would start to slow down, but this year it is even more popular than last year. It's an American phenomenon. This could go on for years."



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U.S. Shows Flat Growth in Internet User's Time Forcing Innovation: Global Study
Promotion marketers are way ahead of the game when it comes to driving consumers to the Web and using the interactive medium to build sales, disseminate information or to just create some plain 'ol fun.

That's a big advantage considering that a new study suggests that mature Internet markets, including the U.S., have shown minimal to flat growth in Internet user's time online at home, forcing online companies to evolve their business to stimulate additional Web growth.

"As the Internet has officially become an important part of our lives, the U.S. is primed for the next 'big thing' to spike Internet usage," said Kaizad Gotla, senior Internet analyst, Nielson//NetRatings, in a statement. "There are many opportunities ahead for companies online, but if they just continue to do what they're doing today, they're only going to move sideways."

In addition to the U.S., flat growth was seen in other mature Internet markets including Brazil, Germany, Spain, Switzerland, Sweden and the U.K., according to Nielsen//NetRatings Gloal NetView Analysis. The study said that growth opportunities exist in several emerging markets including Australia, France, Hong Kong, Italy and Japan, which showed double-digit increases in time spent online at home.

"Acquiring users in markets that are currently in their growth stages will lead to a loyal user base that will pay dividends for Internet companies in the future," Gotla said.

Americans spend an average of nearly 14 hours online each month, which is close to the worldwide average. Hong Kong surfers spend the longest time, averaging nearly 22 hours. Italians ranked on the lower end of the scale with about eight hours, Nielsen//NetRatings said.

The majority of usage growth has come from an increased frequency of access or user session growth, the study found.

"Shifts in media consumption, steadily improving online offerings and growing broadband penetration are likely factors in growing the number of online user sessions on a global basis," Gotla said.

The study tracks the Web usage behavior of 12 countries worldwide, which accounts for 70% of the world's Internet usage.


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