The marketers of Splenda settled a lawsuit with Equal over its much-disputed advertising slogan "Made from sugar so it tastes like sugar." Merisant Co., the makers of rival Equal, had earlier charged Splenda of mystifying consumers to think about its product to be more natural and healthier than the other artificial sweeteners in the market. The month-long trial finally ended with the jury reaching a verdict. The trial focused mostly on Splenda's advertising slogan to which Splenda's marketer, McNeil Nutritionals opposed that it was just a case of "superior advertising." However, the two rivals came to an agreement and decided to keep the details of the settlement confidential. Splenda is widely used in food, drink products, and had 60% share of the consumer artificial sweetener market last year.
The Richards Group will make ads for Amstel Light
Amstel Light, one of the nation's leading imported light beers, will have The Richards Group as its advertising agency of record (AOR) with immediate effect. This was disclosed by Heineken USA Inc., premier beer importer in the U.S. The Richards Group will look into the strategic and creative development to support Amstel Light and further position the brand as a leader in the Luxury Light category. Media planning and buying for Amstel Light will continue to be handled by MediaVest, U.S. Willem Van Der Hoeven, Amstel brand director said that The Richard Group's strategy to continue the brand's bond with its city customers is its forte. It will also help Amstel Light capture an increasing share of the U.S. beer market's top import segment. Dallas-based The Richards Group is the nation's largest independent branding agency whose clientele includes The Home Depot, Chick-fil-A, Hyundai, Red Lobster, among others. The agency's 2006 billings totaled at $1.2 billion.
IAB seeks public comment on ad measurement guides
The Interactive Advertising Bureau (IAB) in conjunction with its Measurement Council has drafted Rich Internet Application Ad Measurement Guidelines for online advertising. It now wants public to comment on these new advertising measurement guidelines. Sheryl Draizen, SVP and General Manager of the IAB said, "New and emerging technologies play a vital role in improving online browsing experiences for consumers." The IAB wants to keep a track of website traffic and the ad metrics. These guidelines aim to create efficiency, accountability, and transparency for the interactive marketplace. The IAB invites advertising agencies, advertisers, online publishers, and technology vendors to read the guidelines which will be open for 30 days. Besides educating the advertising industry about interactive advertising, the IAB, which is responsible for selling over 86% of online advertising in the country, examines and suggests standards and practices on ad measurement. The guidelines state that where user activity is high it can be "directly tied to ad-serving and counting" within rules that "defined in a consistent and fully disclosed manner." Additionally, in cases where there is no material user activity, the disclosure and counting must abide by the auto-refresh Ad Impression Measurement Guidelines of the IAB.
Bill Gates will focus more on online ads
From now onwards, Microsoft chairman Bill Gates will focus totally on advertising and marketing services. This, he disclosed while speaking at the company's annual Strategic Account Summit. Gates's full time occupation after he leaves Microsoft will be directed toward "search, buyers and sellers [...] That will be my biggest thing." According to Gates, the reason for ads to drift toward the online in the next five years is a result of the lower cost and enhanced user experience. He believes that newspapers and TV, the biggest platforms for advertisements, will go totally online in the coming future and will target online interaction. Gates's speech coincides with the opening of the massive Internet advertising realm where Microsoft, newspapers, and other media are trying their best to stake a claim. However Gates' statement that the traditional advertising models would dissolve over the next five years, were refuted by few others like David Cohen, executive vice president at Universal McCann. Cohen questions the feasibility of the prospect from the "timeline between now and when that happens."
Lamar's second-quarter sales forecast exceeds market expectations
Billboard advertising company Lamar Advertising Co. posted higher first-quarter earnings. With its net revenue rising by about 8.6% to $275.2 million, analysts forecast a stronger second quarter for the company. The company's net income rose to $8.8 million, or 9 cents a share since last year. These profits have been helped by Lamar's record $15.4 million gain from the sale of an interest in a private company in this financial quarter. Its national revenue growth accelerated to more than 9% in the quarter. The company now forecast second-quarter net revenue of about $315 million. This figure is $3 million above the analysts' expectations.
