5 Blogs Before Lunch

The MySpace Yard Sale has a Buyer

MySpace was sold to News Corporation for $580 million six years ago, when the social networking site WAS social networking.

Now that the site has become all but irrelevant, it has put itself up for sale with an asking price of $100 million.

But as they say, anything is only worth what others are willing to pay for it, MySpace may be accepting a bid from Specific Media for around $30 million to $40 million (The Los Angeles Times reports a $35 million deal has been reached).

Specific Media is a an ad-targeting firm, who as part of a deal, is asking Myspace to layoff more than half of its staff of about 500 people (a number which two years ago was around 1,400 employees). The Wall Street Journal reports that News Corp may retain a small stake in the site once the deal is closed. There are also reports of a couple of other bidders, including Golden Gate Capital and two groups involving MySpace founders Chris DeWolfe and Tom Anderson.

Specific Media's interest in MySpace appears to be in giving the company access to data about Myspace users to be used for ad targeting. The WSJ.com also reports that it also would transform the firm into a media company with its own ad space to sell instead of simply an online ad technology firm that brokers ad space on behalf of other websites.

Source: WSJ

The Ying and Yang of Cigarette Warning Labels

The Food and Drug Administration has unveiled new warning labels for cigarettes.

New rules mandate that 50% of packaging be covered in labels depicting the negative impact of smokes.

I can think of no other industry which is required to sell against itself like cigarettes. Now 50% of labels sell cigarettes, and 50% sell against the purchase and use of tobacco.

The new labels are the first adjustments to warnings by the FDA in more than two decades, and require compliance by cigarette companies in the U.S. by mid-2013. The new labels replace the smaller, text-only warnings with images like a man with a tracheotomy hole and a mouth filled with rotting teeth.

And while the FDA claims the labels will have a significant public health impact by decreasing the number of smokers, critics say that graphic images are probably not as important as raising the price [of cigarettes] or eliminating them from the work place

The new warning labels are part of The Family Smoking Prevention and Tobacco Control Act, passed in 2009, which gave the government authority to regulate the marketing and labeling of tobacco products.

Source (and more label images) at Huffington Post

Who owns Geeks? Best Buy says they do.

Best Buy's Geek Squad has been a huge success--giving customers access to gadget and technology experts, also known as Geeks.

But do they own the term?

They seem to think so. At least in marketing and trademark circles.

The world's largest electronics chain recently threatened legal action against Newegg.com, saying that its "Geek On" advertising slogan sounded too similar to Best Buy's "Geek Squad."

In true Geek fashion, Newegg took to the social web and responded by posting the cease-and-desist letter on Facebook--prompting a Best Buy consumer backlash for trying to commandeer a common word that in the Wall Street Journal's words "has enjoyed a bigger metamorphosis than the ugly duckling."

Best Buy says it is simply defending its Geek Squad trademark against overzealous competitors. "It is not just the word geek, it is the word geek with orange and black coloration" that puts Newegg over the line, says a Best Buy spokeswoman. The company isn't just going after Newegg. It has disputed more than a dozen geek-themed trademarks in the past decade including "Rent a Geek," "Geek Rescue." and "Speak With A Geek."

Apparently, they even sent a letter to a Wisconsin priest who had put "God Squad" in a logo reminiscent of the Geek Squad's on the side of his Volkswagen beetle, the same kind of car driven by Best Buy's repairmen. After some "friendly" conversations between priest and big-box giant, the priest removed the logo.

"I was extremely surprised. We were just doing this as a way to spread the gospel in a humorous way," says the Rev. Luke Strand, who says he has "tried to move on."

Best Buy also objected when "Chuck," an NBC comedy about a computer savant who becomes entangled in espionage, wanted to use "Geek Squad" as its setting. The character wound up working for a "Nerd Herd" tech-support service at retailer "Burbank Buy More."

To us, Best Buy is being a bit of a dweeb--not a Geek.

Source: WSJ.com

The customer is always right--until they're not. Especially "In USA Magnited States of America"

Fueled by social media and networking, the focus on the customer has shifted for many organizations.

United Airlines' "we're here for your safety"--(not your comfort), has given way to Virgin America's--we're all in this together customer-focused mentality.

That said, businesses need to draw a line when customer-focused turns to customer-entitled behavior.

Alamo Drafthouse, a chain of dine-and-screen movie theaters in Austin, Texas, has long dealt with how to deal with impolite moviegoers who disrupt the movie experience of others. The latest assault to the enjoyment of moviegoers is the use of smartphones in theaters which create noise and bright lights that move attention away from the screen. They have a rule against texting and talking in their theaters.

So when a women was booted from the theater for texting, and left an aggressive, profantity-laced message on the theater's voicemail, they decided to make an example of her by showing how a feeling of "entitlement" crosses the line. The Drafthouse took audio of the woman's voicemail, transcribed it, and turned it into an in-house preview that warns theatergoers against cell phone use during movies.

She may be free to text in Texas, but not in a private theater.

According to Tim League, the Drafthouse's founder, the woman in question was warned twice about texting during a screening, and then, in accordance with company policy, was escorted out without a refund. "I don't think people realize that it is distracting," League told The Lookout. "It seems like nothing, but if you spend as much time as I do at the movies, you realize the entire theater sees it and it pulls you out of the movie experience. It's every bit as intrusvie as talking."

This woman is now the star of a PSA released by the company, and spread virally around the country:

If it's Tuesday, it must be the World Innovation Forum

Continuing our roadtrip to Internet Week, and "5 Conferences Before Lunch," we'll be spending the morning at the World Innovation Forum in New York City. We'll be listening to Zappos' Tony Hsieh spekaing on Innovation Culture, Daniel Pink on Creativity and Motivation, and Roger Martin, and Roger Martin on Design Thinking. You'll hear from us later today should we be inspired. For direct access, go here for the live Webcast (fee for viewing).

The World Innovation Forum theme is "Connecting Innovation to Growth and Profitability" and  is sponsored by HSM who also put on the World Business Forum in October.

Federated Media's Conversational Marketing Summit live stream

5 Blogs Before Lunch is at Internet Week in New York City, attending several conferences and meetups.

Today and tomorrow we'll be at Federated Media's Conversational Marketing Summit (full disclosure, we are a Federated Media partner).

The two-day executive conference is hosted and curated by John Battelle, Executive Chairman, Federated Media, and includes an amazing list of brand marketers, executives and industry leaders including the CMO of Visa, head of Digital at PepsiCo, the founder of Tumblr, CEO of Starcom MediaVest, the VP of Product at Google, and head of the Central Marketing Group at Microsoft--not to mention celebrities/marketing genious' Rachel Ray and Will.i.am

If you're interested in following the live stream of presentations, go here started at 2pm ET today.

Chrysler, the "Imported from Detroit" brand is now officially owned by the Italians, as U.S. Treasury sells its stake to of Fiat

It's official. The U.S. government is shedding its stake in Chrysler, selling the last 6% of the company to Fiat for $500 million -- a deal that gives the Italian automaker majority ownership of Chrysler.

“As Treasury exits its investment in Chrysler, it’s clear that President Obama’s decision to stand behind and restructure this company was the right one,” Treasury Secretary Tim Geithner said in a statement. “Today, America’s automakers are mounting one of the most improbable turnarounds in recent history – creating new jobs and making new investments in communities across our country.”

So, how will this affect Chrysler's positioning as "Imported from Detroit?" Will the critics tack on "...with profits headed to Italy?" Japanese and German cars (Toyota, Honda, BMW, etc.) made in the U.S. do not get credit as "American" cars, so will Chrysler be able to hold on to its "American" car company status, while it is owned by Fiat?

American consumers appear loyal to the roots of the company, rather than corporate ownership. The purchase of Budweiser by InBev appears to have done little to tarnish Bud's American Patriot persona. And Ben & Jerry's hangs on to its Vermont heritage despite being owned by British-Dutch conglomerate Unilever.

Perhaps the "Imported from Detroit" theme was one of the smartest directions they could have gone.

Hooters is on the curriculum for one Pennsylvania Middle School

Over the recent years, the Hooters chain has tried to morph from a testosterone-filled bar to a family-friendly restaurant.

As proof that this transition is having an affect, a group of Pennsylvania eighth-graders, on a recent field trip to Baltimore to visit the National Aquarium, stopped into a Hooters for lunch--at the suggestion of their chaperones.

School Superintendent Wayne Brookhart reportedly says that while he wishes the group's coed chaperones had chosen another restaurant, he has not received any complaints from parents.

Hooters spokesman Mike McNeil says the restaurant chain often hosts groups, including sports teams and church organizations with teens and younger children.

Burger King dethrones its King

The monarchy has fallen.

There will be something missing from fast food giant Burger King's newest advertising--its King.

“The King is not our brand,” said Steve Wiborg, Burger King’s North America president. “He resonates with a certain age demographic and in certain media. I don’t think he has general mass market appeal.”

The Miami Herald is reporting that Burger King's new advertising agency--McGarryBown, will be putting the signature King mascot on a hiatus, excluding him from any upcoming U.S. advertising.

Like McDonalds, who some question whether their mascot--Ronald McDonald, still resonates with today's audiences, needs to update their image to compete.

Burger King is in the process of revising its menu and upgrading its stores to a sleeker, more modern look after years of catering to male "Super Fans" and focusing on their Dollar menu. Look for more salads, real fruit smoothies and wraps--but not under the King's watch.

Additional source: NY Daily News