04/29/2002
Studio One Takes Old School Idea Of Sponsored Content to the Web.

Looking for new ways to connect with potential buyers online last summer, Bridgestone/Firestone returned to an old school notion when it agreed to sponsor "Driving Today," a daily Web program that is now "brought to you" exclusively by the Nashville-based tire maker on such sites as AOL.com and AutoByTel.com.

"The reason that we signed on was that ["Driving Today"] was able to deliver our message, which was very important to us," said Phil Pacsi, executive director of North American consumer tire brand marketing for Bridgestone/Firestone. For the tire maker, that message was one of tire safety, targeted toward the Web's general demographic of ages 18 to 34.

"We really feel ["Driving Today"] is reaching the right audience and it has a good branding message," added Michael Fluck, who serves as interactive and diversity marketing manager with Bridgestone/Firestone. "While we don't look at hard numbers, we did notice an increase to our TireSafety.com Web site following the kickoff of the sponsorship." And as a result, he said, the company, which cut its online advertising budget by about a third last year, re-upped its Studio One sponsorship last fall to last through 2002. (See chart, page 4.).

"Driving Today" is actually one of a series of programs created by an ad-supported, New York-based company, called Studio One Networks, which strives to connect traditional brands to syndicated online content. Founded in late 1997 by a handful of execs from NBC and Time Inc. primarily, Studio One's stable of brand partners now includes such heavy hitters as Nestle USA/Carnation, Friskies and Tyson.

"Our business is based on two very old principles of traditional media, sponsored programming, from the golden age of television, and syndication, which in television was perhaps one of the most powerful marketing approaches," explained President and CEO Andrew Susman.

Susman, whose background includes stints with Time Inc.'s custom publishing unit, as well as its failed Pathfinder venture, said Studio One's mission is to help advertisers deal with the Web's site-centric ways. "Even Time Warner couldn't reach the entire audience that they wanted to through one single site," he said. "With so much fragmentation [online], it was necessary for a programmer to distribute in multiple outlets."

Combining their experience with sponsored programming both in print and on television, Studio One's execs created their first offerings-"Driving Today" and "Gamers Today"-with Honda. "Instead of showing up with something and trying to fit an advertiser in as an afterthought," said Susman," we are approaching advertisers, trying to understand their marketing objectives, trying to understand the lifestyle of the exact audiences they want to reach, and then designing the editorial around those lifestyle choices."

But while advertisers have a say in developing their sponsored program's format, Studio One said it keeps its content independent, hiring top talent-including former Motor Trend editor Jack Nerad, who now edits "Driving Today"-to manage each of its programs.

"We're delivering specific content to the specific audiences that the advertisers want to reach," said Susman. "The key is that the content has to be perceived by the audience as valuable and scarce. They have to understand, and they do, that but for the advertiser as sponsor, this information would not be available."

Studio One's sponsorship deals typically run six to 12 months for new programming; advertisers are charged based on length of flight, audience reach and how many distribution partners actually run the programming. Currently, Studio One says it works with 120 distribution partners representing an aggregate reach of 80 million Web users.

Backing all of this up, of course, is the idea that sponsorship works as a branding play. Susman says his own data show that across Studio One's network, purchase intent for consumer goods brands rose to 15.7% following exposure to the company's sponsored programming, as compared to only 6.6% following the same brands' own television commercials.

Not that Studio One is against TV, or radio or magazines, for that matter. The company has been focusing more and more on cross-content deals, said Susman. Already, "Driving Today" appears not only online, but also on CBS Westwood One radio and the CBS Morning Show. Meanwhile, "Your Baby Today," sponsored by Carnation, appears in 26 regional parenting magazines, while "The Daily Cat," sponsored by Friskies, will soon be carried in the All Pets Catalog as content.

At Interpublic Group of Cos., one of the world's largest advertising companies, vice chairman David Bell said Studio One is on to something. "They've tapped an exciting area because they've found a way to provide efficient and effective sponsorship opportunities at a relatively low price of entry, utilizing technology and syndication," he said.

And, added Bell, "What's interesting about the Studio One model is that just as they've been visionary about the application of technology to sponsorship, they have been disciplined in the management of their own business, and so have come out of the technology drop as survivors."

In fact, said Susman, after five years, the company just experienced its first profitable quarter this year, and first-quarter billings are already double against a year ago. "We've always been with traditional brands," he said, "so the dip [in ad spending] has been less severe for us."