Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Who Will Cash In on Virtual Ads?

Can three mostly unrelated stories make for a trend? They do in my head, anyway. Let's review.

First, I read in Fortune that former Philadelphia PR executive Brian Tierney will resort to layoffs at the Inquirer and Daily News, local papers that he and a team of investors purchased in May for more than $550 million. Tierney blames the troubles on a sharp reduction in advertising, including a massive 10% drop in September alone.

Second, The Wall Street Journal reports that Electronic Arts (Nasdaq: ERTS  ) could see $4 million to $5 million in additional revenue during the holiday quarter from advertising in the video game Need for Speed: Carbon, which began selling earlier this month. And that's only 30% of the so-called ad "inventory" in the game, the Journal reports.

Third, and finally, the blog AdRants says that work is under way to re-create New York's Times Square in the virtual-reality game Second Life. Developers hope to be finished before the ball drops on New Year's Eve.

After reading all of this news, my wacky brain went on overdrive. I wondered whether Tierney's problem, EA's bonus, and Second Life's soon-to-be new resident were somehow the machinations of a Madison Avenue driven mad by the TiVo (Nasdaq: TIVO  ) effect. Could it be?

Well, why not? Times Square does, after all, sport the world's most famous billboards. And on a worldwide basis, advertising generates hundreds of billions in total revenue annually. The push to digitize this business segment has created several success stories, including, of course, Google (Nasdaq: GOOG  ) .

But my brain didn't immediately conjure the smiling faces of Larry and Sergey. Instead, I wondered about the specialist agencies that help to transform ad dollars into worthwhile digital pitches. Take aQuantive (Nasdaq: AQNT  ) . Capital IQ reports that the agency-cum-technologist grew revenue by 40% and earnings by 47% in the past year alone. That's money that could have gone to Tierney by way of classic ad powerhouses such as Interpublic (NYSE: IPG  ) , Omnicom (NYSE: OMC  ) , and Publicis (NYSE: PUB  ) .

And the shift may accelerate. With EA officially measuring ad inventory and Second Life sporting an economy large enough to attract the Internal Revenue Service, the virtual has never been more real for digital marketers.

High-tech. Biotech. Nanotech. Any tech. David Gardner and his team at Motley Fool Rule Breakers cover it all for subscribers. Three of the team's formal selections have tripled, and two have quadrupled in two years. Care to find out what they are?Click hereto get 30 days of free access to the service.

TiVo and Electronic Arts are Motley Fool Stock Advisor recommendations.

Fool contributor Tim Beyers, ranked 1,245 out of 14,513 in Motley Fool CAPS, owns shares of Interpublic, a company that his wife worked for many, many years ago. Get the skinny on everything else Tim is invested in by checking his Fool profile. The Motley Fool's disclosure policy is as real as it gets.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 517674, ~/Articles/ArticleHandler.aspx, 5/24/2016 7:50:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Tim Beyers

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at or send email to For more insights, follow Tim on Google+ and Twitter.

Today's Market

updated Moments ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:00 PM
EA $75.35 Up +2.11 +2.88%
Electronic Arts CAPS Rating: ***
GOOGL $733.03 Up +15.78 +2.20%
Alphabet (A shares… CAPS Rating: *****
IPG $23.68 Up +0.30 +1.28%
The Interpublic Gr… CAPS Rating: ****
OMC $82.88 Up +0.69 +0.84%
Omnicom Group CAPS Rating: *****
TIVO $9.99 Up +0.01 +0.10%
TiVo CAPS Rating: **