March 1, 2013
Facebook buying Atlas ad business from MicrosoftBy Michael Liedtke, Technology Writer
SAN FRANCISCO (AP) — Facebook is buying a set of online advertising tools called Atlas from Microsoft in its latest attempt to build a more effective marketing system around its social network.
In making the deal announced Thursday, Facebook is betting the acquired technology will be more fruitful under new ownership than it was during the past five-and-half years under Microsoft’s control. The financial details of the deal were not disclosed.
Atlas is part of an online advertising service called aQuantive, which Microsoft Corp. bought for $6.3 billion in 2007. Aquantive didn’t bring in as much online ad revenue as Microsoft envisioned, prompting the software maker to absorb a $6.2 billion charge last year that resulted in its first quarterly loss in its 26-year history as a public company.
Given the magnitude of that writedown, Facebook probably didn’t have to pay much to take Atlas off Microsoft’s hands. The undisclosed purchase price is a sign that the amount isn’t substantial enough to leave a big dent in the company’s finances.
Atlas provides monitoring tools that help advertisers assess how their online marketing tools are faring. It helps marketers make adjustments needed to connect people more likely to buy their products and services.
Facebook Inc. already analyzes the interests that people share on its social network to target ads at certain audiences.
Those insights helped Facebook sell $4.3 billion in advertising last year, a 36 percent increase from 2011.
But that wasn’t enough to satisfy investors who want Facebook to grow at a faster rate. Wall Street’s disappointment with Facebook’s performance, particularly in the growing mobile advertising market, has left the company’s stock price below the $38 price paid in its initial public offering last May. The shares dipped four cents to $27.21 in extended trading after Facebook announced its acquisition.
Atlas could help Facebook do a better job of using its knowledge about more than 1 billion users to place ads on sites that tether their services to Facebook’s social network, according to Forrester Research analyst Nate Elliott.
“The question now is how quickly and successfully Facebook can integrate its data with Atlas’ tools, and whether they can avoid a privacy backlash as they do so,” Elliott wrote Thursday in a blog post.
Facebook has faced recurring complaints that it disregards personal privacy in its zeal to vacuum up more sensitive data from users and sell more advertising.
The company, which is based in Menlo Park, Calif., views Atlas as an “important step” that “will help advertisers to a more complete view of the effectiveness of their campaigns,” according to a blog post written by Brian Boland, Facebook’s director of product marketing.
Atlas also could help Facebook compete against the array of analytical tools and services that online advertising leader Google Inc. offers to marketers. Google, though, brings in most of its advertising revenue through its dominant Internet search engine, a weapon that Facebook is trying to counter with a recently introduced feature, called Graph Search, which makes it easier for its users to find information within its social network.
Google is expected to attract about 43 percent of the projected $42.5 billion in online ad spending in the U.S. this year, followed by Yahoo Inc. and Microsoft at about 7 percent and Facebook at 6 percent, according the research firm eMarketer.
Google has widened its share from about 31 percent since Microsoft bought Atlas as part of the ill-fated aQuantive acquisition.
Microsoft, which is based in Redmond, Wash. fared much better in the Facebook IPO than it did with the aQuantive acquisition. After investing $240 million in Facebook in 2007, Microsoft reaped a $249 million windfall last year by selling just 20 percent of its holdings in Facebook’s IPO.
AOL taps Lyne to serve as CEO of its Brand GroupNEW YORK (AP) — AOL has hired one of its board members, former Martha Stewart Living CEO Susan Lyne, to run the AOL portfolio of brands.
The Internet company said Thursday that as CEO of its Brand Group, Lyne will be responsible for increasing traffic across its properties, bringing top talent on board and maximizing partnerships with advertisers and publishers.
Lyne takes over at the Brand Group from chief operating officer Arthur Minson, who was overseeing the company’s three divisions. He will stay on during a transition period.
AOL says Lyne’s experience as CEO and chairman of the retail shopping site Gilt, as well as her time as president and CEO of Martha Stewart Living Omnimedia, should help her at AOL. She also served as president of ABC Entertainment.
AOL says Lyne currently serves as Gilt’s vice chairman and will continue in that position.
NY to exempt TV, movies under state’s new gun lawBy Michael Gormley
ALBANY, N.Y. (AP) — New York sought to combat violence by rushing the nation’s toughest gun control measure into law after the Connecticut school shootings that killed 26 people, but the state is now carving out an exemption to make sure movie and TV producers can stage running gun battles on Manhattan streets.
Movie and TV productions have long been courted by New York and other states with tax breaks in exchange for the jobs and glamour of the industry. Hollywood is also a major campaign fundraising stop for New York politicians.
“We spend a lot of money in the state bringing movie production here, post-production here, so obviously we would want to facilitate that,” said Gov. Andrew Cuomo, who wants to expand the film and TV tax credit.
He said movies and TV may use fake guns that wouldn’t be subject to the new law but the industry wants “certainty.” The revised law would allow them to use real weapons without real ammunition.
“There’s no reason not to make a change like that to give an industry comfort, especially when it’s an industry we want to do business in the state,” the governor said.
Film and television producers have spent more than $7 billion in New York since the state began offering tax breaks in 2004, the governor’s office says. New York has been the stage for recent films including “Spider-Man 3,” ”The Nanny Diaries,” ”Sex and the City 2,” and “The Sorcerer’s Apprentice.” Most of Woody Allen’s films are made in New York City, and many TV shows including “Louie” turn to the city for their backdrop.
The Hollywood exemption is just one of the revisions planned for the state law that was passed in January before the Obama administration and other states offered their legislative responses to the Dec. 14 rampage in Newtown, Conn. Other changes to the New York law would allow police officers to keep their high-capacity handguns and take a loaded gun on school grounds without permission from school officials.
However, the need for a “cleanup” bill also means the fight over the law may not be over after all.
An estimated 10,000 opponents of the new law are expected to descend on Albany on Thursday to try to persuade lawmakers to take advantage of an unexpected second shot at the law critics claim is unconstitutional.
The law was passed in a flurry of closed-door negotiations, without public hearings or a three-day review required of bills under the state constitution. The measure was debated, passed and signed within hours, just days before President Barack Obama proposed his measures including tougher gun control.
“Had they not rushed this bill through, this bill would never have become law,” said Assembly Republican leader Brian Kolb. “This opposition would have been mobilized … this bill would do nothing to prevent the tragedies.”
Most opponents have rallied around a call for repeal of the law, which would be impossible to pass through the Assembly led by New York City Democrats who have long championed gun control measures. But the cleanup bill provides an opportunity for lawmakers to submit more substantive changes.
Others are considering a strategy of blocking the bill from passage, which could bolster the chances of a pending lawsuit that seeks to overturn the law.
The law bans a broader array of military-style weapons, restricts ammunition magazines to seven rounds from 10, creates a more comprehensive database of people barred from owning guns, and makes New York the first state to require background checks to buy bullets.
Therapists, doctors and other mental health professionals will be required to tell state authorities if a patient threatens to use a gun illegally. Mental health advocates are also seeking amendments to the law they say may interfere with treatment of potentially dangerous people and discourage them from seeking help.
Cuomo and Sen. Jeffrey Klein, who co-sponsored the gun control legislation, said he and legislators are only discussing technical changes at this time.
Films to bring art exhibits to cinemas worldwideLONDON (AP) — Art exhibitions abroad are coming to a cinema near you.
Art lovers who can’t travel to London to see Edouard Manet’s portraits at the Royal Academy of Arts will now be able to watch a film about the show at movie theaters from Argentina to India.
Arts documentary maker Phil Grabsky, who made the film, said Wednesday the initiative will let global audiences experience art from some of the world’s best galleries.
The movies will show the paintings and be narrated by experts who guide audiences through the exhibitions.
The film on the Manet show will be shown from April in almost 450 cinemas in the U.S. It will be followed by films on an Oslo show on Edvard Munch, and a London show on Johannes Vermeer.
Art Directors Launch Apprentice ProgramLOS ANGELES–The Art Directors Council of the Art Directors Guild (IATSE Local 800) has established its first apprenticeship program designed to develop and prepare new talent for the art of production design.
A wide call for applicants from across the country will go out March 4 to colleges, universities and recent graduates. Invitations for interviews will be sent to 10 finalists, with the top two selected going on to participate in the program.
Co-chairmen of the apprenticeship program are production designers Jack Fisk, John Iacovelli and Thomas A Walsh. They say the program is intended to give the best and most talented aspiring designers a direct access to professional training and Guild membership. The co-chairs consider this an essential service to the participants, profession and the industry.
Each selected production apprentice will be mentored by working production designers and art directors, and will be exposed to a wide range of workplace experiences–feature, episodic, commercials, reality shows, live events and theme parks. This is a national program intended to be responsive to the ADG’s art direction jurisdiction, which encompasses all 50 states. The apprentices will be required to work 260 days and, pending their successful mentorship review, will be invited to join the ADG as an assistant art director.
Those interested may visit the Art Directors Guild website at www.adg.org for the complete schedule and online application.
VES Bay Area chapter convenes at Athena Studios For DP Miller
EMERYVILLE, Calif.–Athena Studios played host to a special event produced by the Bay Area chapter of the Visual Effects Society (VES) on Saturday, Feb. 23. During the event, VFX DP Carl Miller delivered a hands-on presentation entitled “VFX – Keeping it Real.” Over 45 people attended the presentation, including VFX professionals from Pixar, Tippett Studios and 32TEN Studios. David Tanaka, Bay Area/Northern California Section chairman of the VES, introduced Mr. Miller.
During the presentation, Miller discussed how the lines between CG and practical effects continue to blur with the advent of digital cinema. He explored the evolution of VFX photography from its practical roots through the advent of motion control and CGI, citing examples from “Star Wars Episode II: Attack of The Clones,” and then moving into the latest developments in affordable digital cinema hardware.
Miller also talked about how the tools and methodologies of pre-visualization and pre-planning help to keep CGI and practical VFX collaborative, creative, and affordable. In addition, Miller stressed how to “keep things realistic,” so that cinematic stories may be believable and convincing.
“This was a really great event for our Bay Area VES members,” said Tanaka. “I’ve known Carl for over 20 years, back in the day when we first started working at ILM. Many talented VFX artists live in the Bay Area, and it’s great that we are able to learn and grow as a community through the Visual Effects Society connection. The VES enables us to share our craft and experience with other members, on both a personal as well as on a professional basis.”
Jon V. Peters is CEO/founder of Athena.
ANA opposes ad tax proposal in MinnesotaWASHINGTON, D.C.–The ANA (Association of National Advertisers) has written to Minnesota Governor Mark Dayton and members of the Taxes Committee of the Minnesota House of Representatives to oppose a new tax on advertising services.
As part of his FY14 budget proposal, Governor Dayton has proposed reducing the state sales tax rate and expanding the base to cover advertising and other business-to-business services. The Taxes Committee is holding a hearing on the bill tonight.
Dan Jaffe, ANA group executive VP, stated: “A new tax on advertising services would be extremely harmful to businesses, media and consumers in the State of Minnesota. Particularly with today’s challenging economy, it would be counterproductive to make it substantially more expensive for businesses to communicate efficiently with consumers.”
ANA’s letter cites a study by IHS Global Insight, a world-recognized economic consulting firm, using a model of the U.S. economy developed by Dr. Lawrence Klein, Nobel Laureate in Economics. The study shows that advertising generates significant sales and jobs in Minnesota — $109 billion in economic output and approximately 15% of the jobs in the state on an annual basis.
Jaffe stated: “An advertising tax is not a new idea, just a bad one. Several states have passed ad taxes but they were all later repealed because they hurt the local economy and were impossible to administer.”
ANA’s letter noted that a new tax on advertising is economically unsound and would result in double taxation: “Advertising is not an end product, such as a bar of soap. Rather, advertising is a communications process, which helps produce the sale of the bar of soap, which is already subject to the state sales tax. Since a portion of any tax on the intermediate advertising process is likely to be passed along to consumers, there would be at least double taxation for most products or services purchased in the state.”
Jaffe noted that a similar tax on advertising has been proposed by Ohio Governor John Kasich. He concluded: “We are working with our members and allied industry groups to sound the alarm in both Minnesota and Ohio that taxing advertising is an administrative nightmare that will ultimately hurt their states.”
Stephen Wong Returns to Grass Valley
SAN FRANCISCO–Grass Valley๏ฟฝ announces, effective immediately, the appointment of Stephen Wong as Senior Vice President of the Asia Pacific region (APAC). With more than 30 years of experience in the television broadcast industry, including a first spell with the Grass Valley Group (1999-2002) and additional senior roles at Thomson, Tektronix, Phillips, Ampex, and Redifussion Television. Wong joins the company to lead Grass Valley’s sales activities across all market segments in APAC.
Wong will be based at Grass Valley’s Hong Kong office and will drive the company’s growth strategy in Asia, with an emphasis on emerging markets, while also leading its teams throughout the region. Wong replaces Andrew Sedek, who is retiring from Grass Valley this month.
“Stephen brings a tremendous amount of experience and industry knowledge, with specific digital television expertise in China,” said Tim Thorsteinson, President and CEO, Grass Valley. “He sold the first digital video server products into China in the mid-1990s, when the market was still in its primary stage of conversion.
Prior to his new role, Wong was VP of Asia Pacific Affairs, Broadcast Communications Division for Harris Corporation (Hong Kong), where he led the integration, positioning, and growth of the Harris Broadcast Communications Division for the entire region.
Television ratings up for Oscars, to 40.3M people
NEW YORK (AP) — The Oscars telecast was seen by 40.3 million people, a slight increase over last year’s show.
The Nielsen Company said Monday it was the most-watched Oscars telecast in three years. Last year’s show, when “The Artist” won best picture, had an audience of 39.3 million people. After bringing in “Family Guy” creator Seth MacFarlane as host this year, ABC saw an 11 percent ratings boost over 2012 among viewers ages 18 to 49 years old.
The Academy Awards exceeded 40 million viewers four times in the previous 10 years.
The Oscars regained its traditional status as most-watched awards show, after the Grammy Awards topped it last year.
Ang Lee’s win for ‘Life of Pi’ thrills Taiwanese
TAIPEI, Taiwan (AP) — A second Academy Award for best director has thrust Taiwan native Ang Lee into the top ranks of world filmmakers and made him a national hero on this diplomatically isolated island.
Lee’s victory at Hollywood’s annual Oscar extravaganza on Sunday for the fantasy epic “Life of Pi” followed his 2005 win for “Brokeback Mountain.” Garnering additional awards for visual effects, cinematography and original score, “Life of Pi” pulled down four Oscars, the most of any film this year.
News of Lee’s triumph electrified Taiwanese, many of whom watched a live broadcast early Monday. It was not only the surprise nature of the directorial award — “Lincoln” director Steven Spielberg was considered the category’s clear frontrunner — but the intense pride they felt at a native son making it big in the world at large.
Since losing most of its diplomatic allies to China in the 1970s and 1980s — the two sides split in a civil war more than six decades ago — Taiwan has been on the outer fringes of the international community. It is now recognized by only 23 countries — mostly impoverished and devoid of influence — and outside of information technology circles, its global footprint is small.
Taiwanese President Ma Ying-jeou saw Lee’s triumph as at least a temporary reversal of those fortunes, thanking Lee for “pushing Taiwan toward the world.”
“Taiwanese are proud of you,” Ma said in a congratulatory message.
Making Lee’s Oscar win even sweeter was Taiwan’s key role in the production of “Life of Pi,” which tells the story of a shipwrecked Indian boy sharing his small boat with a ferocious tiger. A majority of the film was shot at a specially constructed water tank in the central city of Taichung, and Taiwanese took many of the most important jobs in seeing the film to completion.
Taiwanese production team member Mike Yang said Lee had the total devotion of the Taichung crew.
“If he wanted us to make the wave bigger or the movement of the animated tiger more detailed, we were willing to cooperate, and not because he was Ang Lee but because he commanded respect,” Yang said.
Born in the southern Taiwanese city of Pingtung in 1954, Lee went to the U.S. in 1979 to study filmmaking at the University of Illinois, Champaign-Urbana. He burst into international prominence with “Sense and Sensibility” in 1995 and was nominated for best director for “Crouching Tiger, Hidden Dragon,” which won the 2001 Oscar for best foreign language film.
Taiwan’s film industry has been in the doldrums for more than two decades. Once seen as a world trendsetter for its subtle presentation of human interactions, it now languishes well behind other Asian cinemas, including those in South Korea and Hong Kong.
Lee also has a strong following in China, which claims Taiwan as part of its territory, and Chinese movie critic Meng Yuankai congratulated Lee on his win. “It’s pride for the ethnic Chinese group. Can’t wait for the next production,” he said in his Sina Weibo account.
GM taps Volkswagen exec to market ChevroletDETROIT (AP) — General Motors has hired an executive from red-hot Volkswagen to lead the marketing of its most important brand.
Tim Mahoney, VW’s chief product and marketing officer since 2011, will start work April 1 as global head of marketing for the Chevrolet brand. He’ll also be responsible for overall coordination of GM’s global marketing, the company said in a statement Monday.
General Motors Co.’s top marketing post has been vacant since last July, when the company forced Joel Ewanick to step down. Its marketing efforts so far have failed to substantially boost U.S. sales. The Detroit automaker reported a 4 percent U.S. sales increase last year while overall U.S. auto sales rose 13 percent.
VW, on the other hand, has seen sales grow across the globe, especially in the U.S. Volkswagen Group’s sales rose almost 31 percent in the U.S. last year.
GM Chairman and CEO Daniel Akerson said recently that marketing likely will be done by each of GM’s brands rather than by the overall company. But it was unclear if Ewanick’s position will be filled. Mahoney will report to U.S. Vice President of Sales and interim global marketing chief Alan Batey.
In his new post, Mahoney will implement Chevrolet’s new marketing platform with the tagline of “Find New Roads.” This year is an important one for Chevy, with plans to roll out 20 new models worldwide. Last year 4.95 million Chevrolets were sold worldwide, by far GM’s largest brand.
Before VW, Mahoney worked for Subaru of America and Porsche Cars of North America, GM said in the statement.
Jason Marks joins Partners + Napier as exec creative directorPartners + Napier, a Project: WorldWide agency, has appointed Jason Marks as executive creative director. Marks joins Partners + Napier New York from Ogilvy & Mather, where he served as senior partner, group creative director.
Marks is the second executive hire at Partners + Napier New York in just a few months, joining recently appointed managing director, Andrea Spiegel, former had of marketing at JetBlue. Together, the duo is charged with building the New York office of the award-winning creative ideas agency.
Prior to his three-year stint at Ogilvy, Marks was creatice director at R/GA and Crispin Porter + Bogusky, where he led the development of leading campaigns for brands like nike, Microsoft, Gap, IBM, Volkswagen and Coke Zero. A passionate content creator, Marks also worked at MTV Networks as creative director, where he created the video platform for MTV Overdrive.
