Search-engine giant, Google, is this week expected to spend US$1.6bn ($2.1bn) to buy popular video-sharing website YouTube.
Although YouTube was launched less than 18 months ago, it has already become the 10th-most popular destination on the internet, according to information firm Alexa.
An estimated 100 million video clips are viewed from the website every day.
While it has attracted a large audience, it has yet to demonstrate it can generate profits.
Google believes it can cash in on YouTube's audience thanks to its proven technology for generating profits from web advertising.
Running advertisements alongside videos, while more complicated than Google's traditional search listings, could generate income in a similar way.
Google’s early move on an emerging web sensation underlines its financial firepower. However, it also suggests last January’s launch of Google Video in the US has been a flop.
Google launched its video service in Australia late last month. The Australian and The Sunday Times.
Mojo founders launch new marketing shop
Mojo co-founders Alan Morris and Allan Johnston have reunited to set up a new marketing operation called Yabber.
TV presenter Jamie Durie, an executive of the company, owns 40% of Yabber, while Don Morris, who worked with his brother Alan and Johnston to build Mojo into one of Australia’s largest locally owned agencies, retains 60%.
Doug Watson, an ex-Mojo executive, took the reins as Yabber CEO earlier this month.
Yabber says it aims to work on every aspect of a client's brand, providing services from speech-writing to advertisements.
The eight-month-old company already has a list of significant clients, including Cabcharge, SP Telemedia and Hunter Valley Gardens.The Australian Financial Review
Brimble death prompts new P&O ad campaign
Cruise company P&O has abandoned the “party ship” image and is focusing on families and childcare in its new advertising campaign.
Lisa Curry-Kenny, the face of the cruise ship, stars in the television commercial, portraying the ship as family-friendly and for the 50-plus age group.
It is a far cry from previous commercials where the former champion swimmer was shown stumbling back to her cabin carrying her shoes over her shoulder and a glass of champagne. Looking dishevelled, Curry-Kenny is seen to slur “good night”.
A company spokesman said there would not be any further advertisements depicting partying.
He said the change in marketing direction was due partly to the revelations at the inquest into Dianne Brimble.
“We’ve changed our message to focus on the cruising experience,” the P&O spokesman said. “We're not focusing on that partying aspect anymore.”
Brimble died on the Pacific Sky on September 24, 2002 from an overdose of gamma hydroxybutyrate, also known as fantasy.
P&O was forced to apologise in June for an offensive advertising postcard which invited men on board for “orgies with bikini-clad women”.
The ad, which was circulating a year after Brimble's death, stated: “Seamen wanted. More girls, more sun, more fun. There’s nothing else a guy needs to know.”
Ashley Farr, head of planning at high-profile advertising agency Smart, believes Curry-Kenny is risking her reputation.
Curry-Kenny's husband, Grant Kenny, told The Sunday Telegraph his wife would remain in a long-term contract with the cruise company and said the inquest had not affected her loyalty.
Neither he nor P&O would disclose details of her contract. Ellen Connolly, Clair Weaver,The Sunday Telegraph
Mentos nipple ad offends
Has "the freshmaker” become too fresh for Australian TV audiences?
The new advertisement for Mentos Ice Gum, featuring a man with supersized nipples, has generated several complaints to the Advertising Standards Bureau.
Ask people if they’ve seen it and their reactions are one of two extremes – horrible or hilarious.
In it, the man’s nipples extend and he uses them to play frisbee, hang sunglasses and DJ at a nightclub.
The last scene features him offering gum to an ample-chested woman.
“The main issue raised was the sexual overtone – or undertone – of the advertisement, while another complaint claims (it) vilifies men,” she said.
Jolly said the Advertising Standards Board would meet [this] week to discuss whether the ad breached the Australian Association of National Advertisers Code of Ethics [and therefore be removed from TV or modified].
Mark Geraghty, general manager of Stuart Alexander, which distributes Mentos in Australia, admitted it had received “a small number” of complaints.
“Obviously it was the sort of advertisement we knew would get some kind of reaction, but we exercised our judgment… and we don't think it is offensive.” Holly Ife,Herald Sun
Where the bloody hellare all the tourists?
Tourism Australia’s ‘Where the bloody hell are you?’ advertising campaign appears to have failed, The Age newspaper said.
Tourist arrivals declined 0.5% in August 2006, to 444,400 in seasonally adjusted estimates while the number of Australians holidaying overseas grew 0.6% compared with July 2006.
Craig James of CommSec has observed that tourist arrivals have deteriorated 5.3% between August 2005 and August 2006, which represents the biggest fall in three years.The Age.
Pepsi accused of promoting gambling to children
Soft drink giant Pepsi has been accused of promoting gambling to young people through its latest advertising campaign.
Pepsi is running a competition in which entrants over 18 can win a share in a racing greyhound.
The promotion has angered the Victorian Interchurch Gambling Taskforce and the Melbourne Anglican Social Responsibilities Committee.
Gambling taskforce member the Rev Graham Reynolds said linking a young person’s product with betting could spark an addiction.
“If it is done with scotch whisky, fine, because you have to be 18 to buy it. But Pepsi cola? You can be two years old and buy it,” Reynolds said.
“Adults, theoretically, are mature and can make their decisions and they are aware of the risks.
“But there is this culture coming across of promoting gambling to kids, and that is what our big concern is.” Emily Power, Herald Sun
