The Digital Lookout

From Jan 1st 2009 the current Google Best Practice Funding programme will be no more.  The programme aimed at rewarding agencies who show growth of both clients and revenues by rewarding a % rebate on all spend with Google is being scrapped.  This move has been coming for a few years with Google gradually changing the programme and its conditions to slowly reduce the amount returned to agencies.  Originally set at the market rate of 15% for agency purchases Google has tweeked and changed their model to bring it down to a level where the bigger agencies are currently on receiving 6-8% commission on their sizeable Google budgets through the current Best Practice Funding Scheme.

This obviously as cause agencies to rethink their current commercial agreements with clients and could see some major shake-ups in the search marketing agency world as existing contracts become unmanageable without the commission in place.

What has become clear in the last couple of weeks however is what Google now plans to do with agency commission, they are going to use it to grow their non-search products.  It has been clear to see recently for those who deal with Google on a regular basis, that Google is desperate to expand their product mix outside of paid search.  They have launched media planning tools, display ad creation tools and have used every given opportunity to push the Google Placement Network.  Similarly with Youtube and their video advertising options, there has been national roadshows to agencies broadcasting the availability of their video advertising options.

And now this week Google has announced that they will be introducing agency commissions on all YouTube advertising (nma article here) and it is thought that the rebate amount is going to be back up to the 15% agencies enjoy on other media channels.  There are also rumours in the industry that a commission is set to be introduced on advertising across the Google Placement Network, although only for the largest players.

So it appears Google no longer feels it needs to compete in pay per click advertising due to its dominance, and that it is better placed rewarding advertisers in the areas it wishes to grow in.  You cant really fault them on that logic.  The removal of Best Practice Funding is unlikely to see agencies pulling spend from their Google Adwords campaigns, as it remains the best performing search engine around.  But by offering an incentive to broaden the products utilised they can begin to make headway in other areas.

The battle to become arguably the most powerful man on earth has entered the digital age this time around as both candidates for the US presidency look to utilise digital channels to gain votes in the election race.  The BBC reports how both Barack Obama and John McCain have used the web as a medium for the election campaigns.  Both candidates have used the power of YouTube to broadcast debates and speeches from their campaign creating their own channels with Obama going as far as integrating Google checkout for charitable donations! Barackobamadotcom johnmccaindotcom

Barack Obama has even gone as far as using in game advertising to try and reach the youth audience taking out ads in 18 video games including Guitar Hero, Burnout Paradise and Madden 09!  The ads were to promote his website, vote for change, and are an openly stated as an attempt to “reach young males 18-34″.  How successful these campaigns are remains to be seen, I suspect YouTube is a far more useful medium than Guitar Hero!  I can’t say that I’m concentrating on anything more than rocking out the next big riff and thrilling the crowd with some smoking solos! But maybe that’s just me!

Was it a plant? Wasn’t it a plant? The guy who posted the video on Youtube and Nintendo claim that there is no link between them and this is not an attempt at social/viral media which has gone wrong. In reality the arguement is unimportant as Nintendo will have benefited massively from the exposure Wii fit has gained through this story so whether it originated from them or not doesn’t actually matter, it is still a huge success. Im not sure whether the viewers on Youtube are marvelling at the technology behind Wii fit but they are showing an interest in something!

Some of the articles relating to this story:

Wii Fit Underwear Girl a Marketing Hoax
Wii Fit YouTube clip gets two million admirers
Wii Fit turns YouTube sensation

And here is the link to the video, I would have embedded it but for some reason it is messing up the page layout!

Wii Fit YouTube Video

BBC’s iPlayer service is wiping the floor with its rivals in the on demand TV market recording up to 500,000 programme downloads a day. 11m TV shows were streamed or downloaded through iPlayer in January in comparison to 2.7m for channel 4’s system 4od and 2m for ITV. The massive amounts of advertising dollars spent promoting the service have no doubt prompted its dominance but will also have given the on demand market as a whole a boost as people become more aware that you can watch your favourite shows from your laptop at any time of the day and night.

The opportunity and issue now facing BBC iPlayer is how to monetise this growing service without annoying its users. Advertising in online video files has been debated far and wide and yet the most appropriate format is yet to be decided upon. Pre-roll, post-roll and overlay are the main considerations with the option of mid roll placements as well but all interfere with the user experience in some way. The key is to strike a balance between the exposure of the ad and the interference with the viewing.

Youtube are still to achieve this and at a recent seminar they were still asking the advertisers what their preference would be for the ads. Youtube have gone with an overlay style ad for in video but admitted trialling preroll and post roll with both showing negative results. I wonder whether the BBC will be able to crack the code?

As part of its record breaking 2008 marketing budget Cadbury are planning a follow up to their much loved drumming gorilla advert. According to the latest edition of Marketing the new ad will also feature an animal playing an instrument. The original advert was a major viral success achieving numerous blog postings, massive word of mouth and many a parody on Youtube (you can see some of them here). So the follow up has a hard task following in its footsteps, as do he agency charged with creating the ad. The original one worked well due to the human like actions of a gorilla but I cant see many other animals having the same impact without looking too comical. Answers on a postcard what you think the new animal and instrument will be and heres the original again just for fun!