Pacific Creative » Business

Moods & Targeted Advertising: Will it work?

Patrick — Sat, 27 Mar 2010 16:00:07 +0000

This morning in the LA Times, I came across an interesting article about a company called Moodagent and the future role that advertisers will have with its iPhone application

How will advertisers change their message and product offerings given a consumers mood? Will geo-targeting a certain demographic based on certain moods eventually change the advertising landscape as companies and products start to develop a repertoire between the consumer and brand that will eventually lead to a long-lasting relationship?

Pepsi pulls itself out of the Superbowl

Patrick — Sun, 17 Jan 2010 18:55:25 +0000

After 23 years, Pepsi has finally decided to not advertise during the Superbowl and rather focus its advertising dollars online, while also launching a new program called the Pepsi Refresh Project. The company says that each of its brands has a “strategy and marketing platform that will be less about a singular event”

With the new campaign, Pepsi is stepping into cause-related marketing. Pepsi has set aside $20 million of its ad dollars for grant money to be awarded for community projects proposed by consumers for the Pepsi Refresh Project.

Given that the cost of a :30 second Superbowl Spot cost $3 million in 2009 and the expected increase in 30 second spots for 2010, it is interesting to note that both Pepsi and FedEx(also did not have a 30 second spot in 2009) have decided to focus its advertising and marketing dollars in other efforts with online being a big push as Pepsi expects to spend 60% more in online advertising in 2010.

What other big brands are going to follow Pepsi and Fedex? Will online advertising dollars for brands continue to increase as traditional advertising is seen as less prominent?

Gatorade Drops Tiger Woods

Adam — Fri, 04 Dec 2009 17:53:17 +0000

As a result of the fallout from the Tiger Woods accident and his stream of “transgressions” and affair accusations, the first major brand has decided to take steps to remove itself from Tiger. Gatorade has decided to pull its branded flavor from all stores, however Gatorade has said that this plan has been in the works for sometime now as they wanted more shelf space to release new products in 2010.

Gatorade reported has spent over $40 million in advertising fees to market the brand, however it has finished as one of the worst performing gatorade brands on today’s shelves.

What other major brands and endorsements will start to follow the same lead as Gatorade as we start to find out more information about Tiger Woods’ personal life?

Business Insights from Sir Richard Branson

Adam — Sat, 31 Oct 2009 23:05:16 +0000

Today I came across a great article today from Richard Branson, Chairman of Virgin Group, on his top 20 business insights, life experiences and inspirational quotes that he has enjoyed and would like to share with those who want to succeed in business.

My favorite one is #4:

“‘Business opportunities are like buses, there’s always another one coming”

Please feel free to share your favorite quotes from his top 20 list

2009: The Year of Social Gaming

Patrick — Mon, 05 Oct 2009 17:56:02 +0000

If 2007 was considered the year of social networking then 2009 and now 2010 must be the year of social gaming. The ever increasing worldwide popularity of Apple’s iPhone and mobile functionality of Facebook along with the release of the Google Android has allowed consumers to instantly use their mobile platforms to download games and interact with many of millions of worldwide gamers on the go, which shows an explosive growth towards social networks and games on those platforms. Facebook has played a major role in the increased presence of social gaming where it has made games a popular category and as of today, the top 10 facebook games has accounted for over 260 million active monthly users including such games as Farmville, Mafia Wars, Pet Society and RestaurantCity.

Within the past 24 hours, two of the leading social gaming companies and Facebook application developers, Zynga and RockYou have received additional rounds of financing and this comes off the big news last week when Electronic Arts (ERTS) acquired social gaming company, Playfish for $300 million. The $375 million that was used to acquire and further finance these social gaming companies shows a shift between traditional console gaming towards social and digital gaming.

Zynga, the San Francisco based social gaming company with over 200 million users just recently received $15.18 million in an extension of its series B Funding. Zynga popular for the #1 facebook game, Farmville, with 65 million active monthly users, currently has 5 of the top 8 facebook games by user and has a reported annual revenue of $150 million. Zynga will use the money raised as cash to build out their portfolio of top 10 games on the facebook and social network platforms.

RockYou, the Redwood City, CA- based publisher and developer of applications and social network services received $50 million in series D funding from Softbank. RockYou, the most successful widget maker for the Facebook platform operates the largest independent ad network in social media with a reach of 213 million monthly unique visitors and 15 billion monthly impressions. RockYou is expanding their efforts in the social gaming space and increasing advertising efforts in the space with the additional money raised.

Playfish was acquired by EA for $275 million in cash, $25 million in equity and could receive an additional $100 million if it performs well. The company has more than 150 games on several platforms including Facebook, MySpace and mobile devices. The top 2 Playfish games on Facebook, PetSociety and Restaurant City, account for over 40 million active monthly users. The acquisition is more evidence that online games that make money by selling virtual goods are turning into a surprisingly big business.

By Building simple, free games that leverage existing online communities, social-gaming companies can create addicting experiences that appeal to a much larger audience than traditional gamers. Social-gaming companies have begun to take in respectable money through a combination of in-game ads, the sale of virtual goods and marketing offers exchanged for in-game currency.

The question I propose for all readers: In what way will social networks, Twitter and MySpace play in the future and monetization of social gaming?