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June 3, 2009 11:52 AM PDT

Al Gore wants to save advertising, too

by Caroline McCarthy
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NEW YORK--According to former Vice President Al Gore, the importance of sustainability doesn't just apply to the environment. It also is key to the future of advertising.

"It really comes out of the environment, but in my opinion the key theme of this century really is sustainability," Gore said. "This theme of environmental sustainability has become a part of our culture, it's a part of our discourse, and I'm very optimistic that it will soon be a part of our policy."

Addressing the crowd of advertisers and online-media types at the Digital Content NewFront event put on by Digitas on Wednesday, Gore was speaking not as a "recovering politician" or a green-tech evangelist, but as the co-founder of Current Media, the experimental cable news channel that relies heavily on user-created content for both editorial and advertisements.

It's about time for our old views of advertising to die, he said.

"In the 20th century, the advertising model was based on the same principles that the Industrial Revolution was based on: scale," Gore said. "It was big, it was blunt, very expensive, and very intrusive, and audiences have now begun to resist that old advertising model even as the environment in which it is presented changes a great deal. The new model is very different because the media landscape is completely different."

More than half of the advertisements on Current are called "VCAMs," or "viewer-created advertising messages," Gore said. These are videos selected out of user submissions for brands interested in advertising on Current; the winner is paid by the advertiser, though it costs significantly less than the production budget of a traditional TV ad, and the winner receives an additional payment if the advertiser wants to use it outside of Current.

It's a model not unlike the wildly successful T-shirt company Threadless, which gets thousands of design submissions and gives a cash prize to the ones that it subsequently prints and sells.

Gore showed off a series of VCAMs proudly, as though they were home videos of his kids: One of them, created by two 24-year-olds, was a Mountain Dew ad about aspiring to be a professional hide-and-seek player. Another, created by a 29-year-old, was a T-Mobile ad showing people excitedly attempting to get picked for a "fave five" as though it were a dodgeball team. Gore mentioned another that was created by a 17-year-old who subsequently received a $50,000 check when the advertiser wanted to use it outside of Current.

There are problems, obviously, which some of the audience members brought up in questions. There are plenty of brands that wouldn't get aspiring filmmakers quite as jazzed as the car and gadget companies whose ads Gore showed off. And while the Flip-camera-toting young adults responsible for Current's VCAMs have the pluck and the free time to run around making commercials, it's easy to theorize that it would be tougher for a network with an older audience to pull it off.

Then there's the fact that while Current has been way ahead of the curve on some digital trends--displaying live Twitter messages onscreen, for example--it's still not a huge media powerhouse. The company canceled its scheduled initial public offering earlier this year, citing the bleak economic climate.

Gore, however, had an example of successful "sustainable advertising" beyond Current. What we can look at, he said, is his old job: politics.

"The most powerful new brand that we've all seen unveiled over the last two years is (Barack Obama)," Gore said, showing a slide of the "O" sunrise logo that became so well known during Obama's successful presidential campaign. "And what is it about this brand that made it so incredibly successful? It was all about empowerment, it was all about involving people to help deliver the message. It was very tuned into the new technologies and how people use them."

Just as the Obama campaign made efficient use of inexpensive marketing and publicity tools on the Web, Gore believes that the digital age has made it possible for high-quality ads to be ubiquitous, rather than just at the one time of the year when people get really pumped about what commercials will be on TV.

"During the Super Bowl, people leave during the game rather than the ads. They want to see the ads because they know something extra has gone into Super Bowl ads," Gore said. "(But) it's not sustainable to have that kind of ad budget and that kind of focused creativity that you find on those ads completely ubiquitous throughout the television year."

At the end of his talk, the former vice president was left speechless when one audience member asked him if he believed that the problem of carbon emissions could be solved by 2029 through the use of technology coming from UFOs.

"No," he said after a long pause. "I do not."

June 5, 2008 11:19 AM PDT

Who's afraid of online video? Not Michael Eisner

by Caroline McCarthy
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NEW YORK--As head of Web video studio Vuguru, longtime entertainment exec Michael Eisner has been on a sort of tent-revival tour for the past few years, preaching the gospel of Internet video. On Thursday, his audience was the ad industry, and he was there to tell them not to be fazed by disappointing revenues on Web video.

"I'm seeding what I think will be a future business," Eisner explained. He's been vocal in admitting that online video isn't a profitable business yet. But it will be, he emphasized, and he wanted to position himself to be first in line when the money starts rolling in. "You have an option when you leave 40 years of a public company. You can continue being a dyspeptic, aging, wheelchaired, drooling, irrelevant executive, or you can put the word 'new' next to you."

Eisner was speaking at the Digital Content Newfront, ad group Digitas' take on the traditional television upfront event. The event, part of Internet Week New York, showcased online video content companies like 60 Frames, MySpaceTV, MTV New Media, Generate, Next New Networks, and Eisner's own Vuguru. In the audience were loads of ad-industry types; Eisner's goal was to convince them that video on the Web is worth the investment.

Michael Eisner
Michael Eisner

"The advertisers are recognizing how big the audience can be," Eisner said. "My interest is getting in there before they explode."

He was interviewed on stage by Dmitry Shapiro, founder of Veoh Networks, the online video site in which Eisner is an investor. And Eisner affirmed to the advertisers and marketers present that despite its reputation as a cesspool of dogs on skateboards and cats on treadmills, new media isn't all that new. "(Online video) has different dynamics in the technology, but it doesn't have different dynamics in the terms of story. The same rules from cavemen to obviously the Greeks and Shakespeare...the idea of the story as we all learn in high school English and theater, those really will prevail in new media."

Vuguru debuted in 2007 with Prom Queen, a scripted series syndicated on MySpaceTV, YouTube, Veoh, and a whole host of other platforms. Eisner has been open about the fact that financially, it was not a success. But he's kept going, with several new Veoh series including the Monkees-like The All-For-Nots, and a new comedy series centered on classic trading card brand Topps, which Eisner acquired. Called Back On Topps, it cast two comedians as fictional heirs to the Topps fortune and chronicles their run-ins with famous sports stars.

Creating promotional series is one option for brands to make a few bucks off online video, Eisner explained. So is sponsorship. "Almost everybody working inside is nervous that you're going to damage the brand," he warned. "You have to take risks, and you have to know the line which you cannot go over."

"The advertisers are recognizing how big the audience can be. My interest is getting in there before they explode."
--Michael Eisner

He also suggested that advertisers could build particularly creative advertising campaigns that tie specifically into the shows they're placed with, finding a middle ground between product placement and traditional commercials. "The commercials that I believe could follow (videos) as long as they're short, ten seconds...somehow had the ambiance of the same environment, the same story. The audience would get the point that the brand was somehow involved in the creative process," he described. "So that would be not product integration and not a straight dropping-in of a ten-second spot, but a sensitivity to the environment. That's something that's never been done before."

Eisner reiterated that big shifts in media historically don't rake in money at first. He compared the rise of online video to cable television versus broadcast: "The highest-quality programming is now on cable," he said, adding that basic cable is "no longer an ancillary market or a rerun market. The dollars are enough that it's a primary market."

He couldn't stress enough that advertisers should gear up and get ready to make big investments in the field. "It's just beginning to happen. We now call 'new media' obviously broadband, Internet, whatever, but there was a time that new media was home video. There was a time that new media was TV. There was a time that new media was motion pictures in the nickelodeon theater."

Eisner took a moment to ask Shapiro about what's next at Veoh, which just raised another round of venture funding. "I think the key is discovery," Shapiro replied. "In a world of 400 cable channels it's hard to find something good to watch. In a world of a million shows it's practically impossible."

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About The Social

CNET News' Caroline McCarthy is a downtown Manhattanite who believes that, despite popular opinion, the Web can actually help your social life. She's happily addicted to fun social-media tools from Twitter to Yelp to Facebook, sends an inordinate number of text messages, and has a tendency to waste time at the office reading restaurant blogs. Here, she explores all facets of the Web's gregarious side, as well as the unique tech culture in her home city of New York. (Don't call it Silicon Alley.)

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