I’ve been pretty silent over the past few days as I’ve been out in Los Angeles, California at the DEMXPO. IGA Partners is one of the sponsors of the events and we’ve been leading Gaming 101 presentations as well, as speaking on various panels about video games, advertising and the marriage: in-game advertising and media placement.

So far, it’s been a pretty solid show. I have managed to sneak out of our meeting room and sat in on discussions about the music industry and the future of digital marketing and really enjoyed the panel by colleague Robert Tercek, formerly of MForma and Sony. I also ran into Rafat Ali of PaidContent.org and its always enlightening running into him - as he seems to know more about my company than I do! Never a bad thing!

During Tercek’s presentation, he alluded to a few things including:

Americans spend more on entertainment than gasoline, household furnishings, and clothing combined.

Mobile phones sold 780 million units in 2005 whereas mp3 players sold 75 million

1 billion music tracks per MONTH are exchanged illegally

subscription content shows slow growth, however, much more stable (non volatile) over the long run. mirrors cable television/premium channel

Lots of great things to report. More tomorrow as both Christian-Alexander Vry and myself are sitting on 2 different gaming panels.Â

I want to thank everyone who came out to IGA Partners office this evening. For the 40-50 of you who came out to support the growing mobile industry, it was surely a pleasure to host this event. Following in the footsteps of Google and the Associated Press, I think IGA Partners did a very good job!

Some great topics were covered tonight and it was fabulous hearing from Audible, Mophap, Scanbuy and Enpocket. Some great business models out in the world and I’m sure that our paths will cross again. Also, the audience was extremely diverse and met some incredible people.Â

Pics from the event are posted on my flickr account: click here

Off to Los Angeles in the morning on an 8am flight - sorry to keep this so short. Will be blogging each night from the Digital Entertainment Expo…

Colleague Mike Shields over at MediaWeek wrote an article today labeled, “Report: Don’t Flood Gamers with Ads.” This report was based on the information I blogged about last week regarding the mediaedge:CIA study on in-game advertising.Â

The article quoted Fran Kennish, director of strategic planning at Mediaedge:cia and David Tokheim, IGN’s vp of marketing. Both advocated the following: “Every game is unique and needs to be treated uniquely,� he [Tokheim] said. “It’s never going to be like sliding in a 15-second spot before Desperate Housewives.�

http://www.mediaweek.com/mw/news/interactive/article_display.jsp?vnu_content_id=1001570637

When I think of television, I think of prime time. Friends and The Apprentice were two prime-time shows I used to schedule into my evening plans – and watch them religiously. Whether it was Ross (from Friends) talking about paleontology or The Donald firing an Apprentice hopeful, I watched these shows each week and knew I wasn’t the only person watching…there were millions of others watching at exactly the same time.

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In 1960, the most popular television show captured 37% of the prime time audience, whereas the most popular show in 2005 (today), American Idol, captures around 15%. There are many reasons for this decline, but the one I subscribe to is that the advent of digital cable and satellite television has increased the availability of programming choices – more than tripling the average channel availability. As a result, on any given evening, the television viewing audience is stretched across a wide variety of channel options. The growth in viewing has given rise to an increasingly stratified advertising market. (The Life Group, 2005)

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With advertising dollars pouring into television (USD $60 billion in 2005) as the number one advertising medium – the stratification of the prime time audience is not making it any easier for brand advertisers to reach the audiences that they used to.

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The PVR/DVR has helped viewers record live television and watch it when they want. Lyra Research released a study that indicates that on average, DVR users watch 43% of their television on a time-shifted basis, and that, over time, DVR users increasingly time-shift their viewing. According to Lyra, DVR owners having the device for at least 2 years time-shift 51% of the time. When in time-shifted mode, DVR users say they skip past ads 79% of the time. This is important for brand advertisers who are trying to capture the prime-time audience, as the prime-time isn’t always watching during prime-time and yes, those commercials…well, they aren’t being watched per the research above.

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The top 4 broadcast networks are usually the most heavily watched during prime-time and have had a CAGR of 3.4% over the last 5 years (1999-2004). The cable networks, which always were in the shadows of the broadcast Redwoods, have had a CAGR of 11% over the past 5 years (1999-2004). This is over 3 times the growth over broadcast which is an issue since cable earns a portion of its revenues through subscription dollars as opposed to broadcast.

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With broadcast not earning any revenues from subscription dollars – only through advertising and sponsorship, and on a downward spiral for viewership…does this raise a red flag?

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As for prime-time, viewers have many different media platform choices. In the past, viewers were solitarily confined to their homes (by choice) and had no reach into the outside world unless they turned on the television or radio. Today, they have multiple media sources available such as television, AM/FM/Satellite radio, Internet, cell phone, telephone, podcasts, and print choices (amongst others). For prime-time, of which Nielsen Media defines it as 8-11PM Monday through Sunday, and 7-11PM Sunday (EST), users now have many options available.

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If media consumers (consumption’ers) turn into viewers during Prime-Time, out of the 1,000 who would have normally watched television years ago are now a fraction of it (due to other choices). Of those folks who are actively watching television during prime-time, growing percentage of them are consuming television through a filter – DVR. With this DVR, users are able to time-shift and watch the television when they want AND without interruption (ads). I can now watch a 30 minute sitcom in just under 22 minutes. Amazing.

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Video on Demand, VOD is a huge concept and technology that could potentially change television from how we know it today. I’ve heard folks at major media companies talk about how the television experience is not going to be determined by the user having to only watch shows when they are scheduled – but the user actually picking the show they want, and when. This gives users the ability to pick a show such as Everyone Loves Raymond and watch it at 10am if they so choose. This allows viewers a very personalized and tailored experience, something that TrendWatching.com calls the YOUniverse (more about that in another posting). Forrester Research estimates that VOD usage, driven by the adoption of digital cable, will grow from 23% of homes in 2004, to 44% in 2009. This means that there is potentially a huge market for VOD and the YOUniverse effect in television.

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So, prime-time is diluted now, as we aren’t forced to consume media during a specific time frame. We can watch a show scheduled for 8pm at 10pm if we choose to do so – or at 8am the next morning or even to shift it to a podcast. Prime-time audiences are on the decline on any one particular medium– however, marketers are increasingly trying to utilize new methods to embrace this dilemma.

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It’s here again. No, not cranberry sauce stains on your nice new Diesel pants, not wine stains on your Fieldcrest tablecloth…but holiday shopping….Black Friday. Black Friday is not a real holiday which is quite interesting, but consumers certainly make time in their busy lives of consuming media and their work schedule to the flip side – consuming products to be given as gifts to friends and family.

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Traditionally, stores opened early – say, 9am to the general public. In 2005, select stores including most major department stores open at 12am (Thankgiving/Black Friday). According to Good Morning America’s reporter who was stationed in White Plains, NY this morning, a crowd of 40 folks were standing outside waiting for K-Mart to open its doors at 12am.

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Marketing and advertising play a huge role in the holiday season, with new commercials and campaigns hitting the televison, radio, print magazines, and Internet either already or any day now. Some companies are even embracing new media this year with such quirky marketing tactics as “celebrity wake-up calls.� I’m a huge fan of the Muppets (Dr. Teeth is my favorite- plays in the Muppet band, Electric Mayhem, first debuted in 1979) and when I was watching television this morning, I saw Kermit the Frog holding a banjo and a major country music musician dueling it out – to offer consumers the ability to get a wake-up call form K-Mart… a reminder that sales are occurring today and tomorrow.

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To generate revenue, you need to get consumers in the door of your store (or website), so why not bring them there yourself? Woodbury Commons is offering shuttle-bus service to the outlet mall just north of New York City (40 miles) through private busses leaving the Port Authority of Manhattan. Very impressive move – as a very high percentage of folks who will be on those busses will be spending at least $100 at the outlet mall.

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Get ready for a holiday season full of shopping and spending…consumer confidence is high and people are starting to spend again. Online shopping should not be discounted as sales are expected to be 18% higher this year compared to 2004. Also, many websites are offering free shipping on orders over a certain amount – a cost that prevents some folks from shopping online.

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Be safe, enjoy the holidays – I’ll keep on watching for trends and marketing that are steering consumers into the stores. If you hear about anything new, do let me know. Happy Turkey Day.

With the launch of the XBOX 360 and the hot in-game advertising marketplace, our friends over at mediaedge:CIA have released a study that shows the effectiveness of in-game advertising and how it is actually enhancing games….. if done well.

http://www.clickz.com/news/article.php/3565891

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“It’s tough for advertisers who are thinking of ads as interruptive, like a :30 spot,” Brian Aucoin, media supervisor at MEC Interaction, told ClickZ News. “You can’t disrupt the flow of a game; you want it to complement the gaming experience.”

I’ll be following up this post over the weekend with tips, insights, and techniques on how to create a very contextual in-game advertising campaign, one that does not alienate gamers from their entertainment…. which is #1 priority…contextual relevance.

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I think it is only fitting tonight that I write a blog about the next generation of consoles hitting the shelves starting tomorrow. If you have been living under a rock or choose to ignore pop-culture, the Microsoft XBOX 360 is hitting the shelves at the electronics store near you.

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The next generation of consoles is going to push the limits of connectivity and collaboration. Whilst the 360 has 3 processors at 3.2ghz each, the real next generation experience happens with its connection with the XBOX Live network – allowing for a formerly solitude experience to transition into a communal gaming experience.

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As someone in the gaming and advertising industry, I look at this launch as both good and bad. Whilst most brands we talk to want to be on the XBOX 360, the actual reach of the machine is just not there. With only 1 million units expected to be sold by December 31, 2005, the reach for any potential advertiser who is looking for a broad campaign will disappoint. However, you just can’t ignore the coolness factor.

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XBOX has previously sold 13.5 million units in the

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since 2001 (as of October 2005). Just over 10% of XBOX players currently are playing online. As of July 2005, they hit the 2,000,000 XBOX Live registration mark. Microsoft needs its XBOX users to utilize the Live platform (which enables online game play and other collaborative elements) in order to really win the console war. By having users plug-in to the Live platform, Microsoft now has the ability to track users, download/upload data, patches, as well, as connect with users in real-time. There are a slew of other opportunities that Microsoft has (VOIP, Instant Messaging, etc) but these are the crucial ones.

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I’m really looking forward to the XBOX 360. Don’t know when I’ll get one – they are sold out in each store I have checked, but I’m sure that I’ll find a way to get one relatively quickly. Excited for the next generation, this will surely be a breakthrough in console development and the way games are designed.

Again, during this past weekend, I sifted through tons of articles, research and reports. I thought that this particular article, located here was quite a good luck at the future of branding, for relationship building companies.

1) Brands that influence culture sell more; culture is the new catalyst for growth.

2) A brand with no point of view has no point; full-flavor branding is in, vanilla is out.

3) Today’s consumer is leading from the front; this is the smartest generation to have ever walked the planet.

4) Customize wherever and whenever you can; customization is tomorrow’s killer whale.

5) Forget the transaction, just give me an experience; the mandate is simple: Wow them every day, every way.

6) Deliver clarity at point of purchase; be obsessive about presentation.

7) You are only as good as your weakest link; do you know where you’re vulnerable?

Social responsibility is no longer an option; what’s your cause, what’s your contribution?

9) Pulse, pace, and passion really make a difference; had your heartbeat checked recently?

10) Innovation is the new boardroom favorite.

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I decided to go onto eBay.com since we can now find everything, or “it”, thanks to the new awareness advertising campaign by Meg and her California based auctioneers. MySpace.com is the hot topic of late - so I decided to see what I can pull up as auctions.

http://search.ebay.com/myspace_W0QQfromZR40

The first thing you will notice is that you can actually purchase space within someone who is popular on MySpace’s profile. Looks as if the top bid right now is $55 for DJ Quick who claims to have 14,000 friends. Nothing like buying a friend…Better hurry, 18 hours left.

http://cgi.ebay.com/DJ-Quik-TOP-8-spot-on-his-myspace-com-profile_W0QQitemZ4794565420QQcategoryZ618QQrdZ1QQcmdZViewItem

I’ve been involved in the Interactive marketplace since inception, early days at i33, iComputerServices, CommerceOne, AppNet, then Conducive, adMarketplace, FortuneCity.com (FCTY), and then Ad Intelligence LLC. Lots of amazing things happening with the legal targeting of advertisements and media across the world wide web even since the early days of Ad Maximizer by i33.

Today, I read a report on an overlooked area of Interactive, the email sector. eROI (http://www.eroi.com) released a report on the 14th of November that if you are sending out email newsletters to more than 500 folks, the best days of the week to send are Sundays and Fridays, respectively. On Sundays, 30.8% open rates compared to Fridays 27.0%, and 7.2% Click-Thru-Rates (CTR) on Sunday compared iwth 5.3% on Fridays. Impressive numbers! Much higher compared to any other day of the week.Â

Check out http://www.eroi.com for even more findings.