Online ad spending keeps climbing

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For the ninth-consecutive quarter, ad spending on the Internet continued to break records. Online spending totaled more than $2.8 billion for the first quarter of 2005, making it the highest quarter of growth reported up until now. In its report, the Interactive Advertising Bureau said the first-quarter spending figure represents a 26% increase from the $2.2 billion spent during the same period last year, and it spiked 4.3% from the fourth-quarter 2004 figure of $2.7 billion. The higher spending is in reaction to the fragmentation of TV viewership and an attempt to reach the 56% of online households that now have broadband connections. QwikFIND aaq63w

Samsung bows first WPP work

The first Samsung Electronics global branding campaign from WPP Group appeared last week. The relatively small $2 million campaign was created by Berlin Cameron/Red Cell, New York, and features two TV spots and several print iterations using the theme "Imagine." However, it is the precursor to a much larger $200 million push that will begin sometime this fall, after Samsung collects consumer reaction and feedback to the first work.

Samsung also this week bows a scent-strip print effort from Cheil Communications America (whose parent, Cheil Communications, is majority owned by Samsung), an unusual move for a consumer-electronics campaign. The ad for Samsung's newest rear-projection TV features an almost-invisible scent strip that delivers a pine smell when the gatefold ad is opened to a show a large and lovely TV with a forest scene onscreen.

Iger gets Disney ready for new-media world

Bob Iger, Walt Disney Co. president-chief operating officer, is intent on migrating viewers to new platforms such as video on demand and broadband video. Mr. Iger, who spoke last week to analysts at a Deutsche Bank conference, said ESPN was the model he wanted to use for the rest of the company. ESPN, which began as a sports cable channel, has branched into branded cellphone services and offers a broadband experience online. Mr. Iger cited the potential for generating revenue from existing programs such as "Desperate Housewives" by adding extra scenes that consumers might pay for if they missed the broadcast network window. He also made it clear he wouldn't let Disney's traditional media units stand in the way of progress. QwikFIND aaq63y

Apple dumps IBM, will now have Intel inside

Apple Computer ended its 11-year chip-supply relationship with IBM this week, moving that business to Intel instead. Beginning in 2006, Apple computers will run on Intel chips, like most PCs. While Apple said it will not allow its operating system to non-Apple machines, it also said it won't be able to prevent consumers from doing the opposite, or installing Windows on their Apple machines. Industry watchers, though, wonder how long Apple will be able, or even want to, keep its operating system only on Macs. After all, allowing iPod and iTunes to run on Windows has helped Apple garner a dominant share of the MP3 player market.

HP fills CMO slot with veteran exec

Hewlett-Packard may have a new chief marketing officer, but it is expected to continue employing the unified branding strategy formulated under former CEO Carly Fiorina and former Senior VP-Marketing Allison Johnson. Cathy Lyons, a 26-year veteran of Hewlett-Packard, was named chief marketing officer last week. The 48-year-old Ms. Lyons, who was the senior VP-business imaging and printing, succeeds Mike Winkler in the post. Mr. Winkler remains and will focus on his other role as exec VP of HP's customer-solutions group. Ms. Johnson took the top marketing job at Apple Computer in February. QwikFIND aaq63m


Two former American Association of Advertising Agencies senior officials and two other ad executives are opening a marketing consulting practice. The A-Team will have offices in New York, Boston and San Francisco. The principals are Bill Nicholson, former exec VP, 4A's agency-management division; Ann Billock, former Hill Holliday and Kraft executive; Peter Gerritsen, founder of Allen & Gerritsen, Boston; and Jerry Gibbons, former 4A's exec VP-agency services.

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