May 6, 2024

Media Decoder Blog: Colorado Looks to Its Own People to Burnish Its Image

Colorado is taking a nontraditional approach to the usual efforts of creating ads that are meant to help burnish the brand image of a state. With an initiative — Making Colorado — to be announced on Tuesday, the state will ask its residents for advice that will shape the development of a campaign that is to be introduced in August.

And rather than hiring an advertising agency to create the campaign, the state will rely on a team of 10 to 12 professional copywriters, graphic designers and creative technologists who are Colorado residents. Those team members will be selected by Dave Schiff, a founder of Made Movement, an agency in Boulder that specializes in work for companies that sell American-made products.

Acting as a kind of overseer for the initiative will be Alex Bogusky, a resident of Boulder who became famous as the wunderkind creative leader of the Crispin Porter Bogusky advertising agency — and notorious after he left the industry in 2010 and began speaking out against the way products like fast food and soft drinks are marketed.

Information about Making Colorado will be available on a Web site, makingcolorado.gov, which is to go live on Tuesday. The initiative is the brainchild of Aaron Kennedy, who was appointed last year as the state’s first chief marketing officer by Gov. John Hickenlooper.

“The idea we have is to create a unifying brand identity” for the state, Mr. Kennedy said, “a clear and concise statement of what Colorado stands for” that would be separate from campaigns that seek to encourage tourism or business development.

The initiative may or may not “end up with a slogan,” he added, or perhaps may produce “a graphic identity that could tie together all the messaging from the State of Colorado.”

The plans for Making Colorado call for residents of the state to be asked on the Web site to critique the work of the ad professionals who are chosen by Mr. Schiff. First up: asking for answers to the question “What makes Colorado Colorado?”

There will also be elements to the effort that include a committee called the Making Colorado Brand Council, to be composed of senior managers like chief executives and chief marketing officers from leading state businesses, and a committee called the Making Colorado Youth Advisory Council, composed of high school seniors from each of the state’s 64 counties.

Mr. Bogusky, in an e-mail, wrote that he became involved “because the governor and I got to be friends when he was the mayor of Denver.”

Governor Hickenlooper “doesn’t do anything without talking to people first,” Mr. Bogusky said. “A lot of people!”

The initiative “draws on the strength of the passionate population” of the state, he added, “and the incredible pool of professional marketing talent to build Colorado’s branding from the ground up.”

“We think Colorado is a state on the leading edge,” Mr. Bogusky concluded, “and we want this campaign to be the first and best example of how you promote your state in the 21st century.”

Mr. Kennedy, the state’s chief marketing officer, worked for brands like Oscar Mayer and Pepsi-Cola before founding a restaurant chain, Noodles Company, which is now based in Broomfield, Colo., and controlled by Catterton Partners.

Mr. Kennedy said he hoped the initiative would generate ideas about expressing Colorado’s identity beyond familiar images like “mountains and ski resorts.”

For instance, he described how Colorado is a state with “a young, healthy population” that has been enjoying job growth.

Another goal is to avoid having the state “identified by headlines in the news,” Mr. Kennedy said, alluding to the movie theater shootings in July 2012 in Aurora.

The elaborate schedule for Making Colorado ends on Aug. 29, with the planned introduction of the initiative’s handiwork by Governor Hickenlooper in a conference in Denver called the Colorado Innovation Network Summit.

Mr. Kennedy estimated the budget for the initiative at just under $1 million.


Article source: http://mediadecoder.blogs.nytimes.com/2013/04/02/colorado-looks-to-its-own-people-to-burnish-its-image/?partner=rss&emc=rss

Media Decoder Blog: After a Quarterly Gain, Pandora Warns of a Loss to Come

Pandora Media, the company behind the Internet radio service Pandora, has enjoyed a meteoric rise in popularity. But investors are concerned about its future.

The company reported $120 million in revenue for its fiscal third quarter, which ended in October, up 60 percent from the same period last year. Pandora also had net income of $2.1 million, or 1 cent a share, matching analysts’ predictions. The company offered 3.6 billion hours of personalized music streams to its users during the quarter, which amounted to 59 million people.

“This quarter exceeded our expectations as we monetized mobile at record levels and grew total mobile revenue 112 percent,” Joe Kennedy, the company’s chairman and chief executive, said in a statement.

But the company also lowered its expectations for the fourth quarter and the fiscal year, warning that it would face a loss of 6 to 9 cents a share, greater than it had earlier expected. In a conference call with analysts, Mr. Kennedy said he anticipated a drop in advertising in January because of concerns about the economy.

Pandora’s stock closed up 5.5 percent on Tuesday, at $9.45, but once its earnings were released the price fell nearly 18 percent in after-hours trading. The stock was down almost 41 percent from its initial offering in June 2011.

The company faces competition from Microsoft, which recently introduced a digital service, Xbox Music; Apple, which is said to be preparing an Internet radio service, although Apple has not commented on those reports; Spotify and others.

Pandora’s licensing costs also weighed on the company. In the third quarter, it paid $65.7 million, or about 55 percent of revenue, in “content acquisition costs,” which include music royalties. The company pays a fraction of a cent in royalties for every stream it serves, which in recent quarters amounted to 50 to 60 percent of its revenue.

Pandora has supported the Internet Radio Fairness Act, a bill that would change how its royalty rates are set (most likely lowering them). But the bill got a cool reception last week from members of a House Judiciary subcommittee.

The bill was expected to expire with the end of the current Congress, but a version of it could be introduced next year. Music groups favored a bill that would also include long-sought changes the royalties paid by terrestrial radio broadcasters.

“It was a huge win to have a hearing on our issue, especially during a lame-duck session,” Harvey Valentine of the Internet Radio Fairness Coalition, which includes Pandora, said late Monday in response to questions about the bill. “The discussion has started in earnest, and that is a big step forward.”

Article source: http://mediadecoder.blogs.nytimes.com/2012/12/04/after-a-quarterly-gain-pandora-warns-of-a-loss-to-come/?partner=rss&emc=rss