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Take a closer look at what’s making news today in the marketing profession. Click on the hyperlinks in each item to read the original coverage.

-- A growing number of big companies are using contests—with prizes of cash, free goods and business services—to raise their profiles and expand sales in the giant small-business market. And while some who enter such contests do get real help, business owners should remember that these events are more about marketing than goodwill. Not only do the efforts allow the sponsoring companies to curry favor with small businesses, but they collect contact information for new customers. Moreover, the competition and the prizes often grab media attention, multiplying the sponsor's marketing message, the Wall Street Journal reports.

More news after the jump:

-- Redmond, Wash.-based Microsoft Corp. is getting help from start-up YuMe Inc., which specializes in serving advertisements to online videos, as it tries new ways to gain a larger slice of the online ad market. The YuMe service will place ads in videos running on Microsoft Web properties.

-- Amid news reports of major Midwest cities experiencing record floods comes the story of Wisconsin’s Lake Delton, a chief draw for summer tourists in the Wisconsin Dells area. Heavy rains, however, created a breach that prompted the lake to drain entirely, leaving only cracked earth and fish rotting in the summer sun. Experts say the lake can be resurrected, but what marketing efforts can be done in the interim to get wary tourists to visit? The Chicago Tribune reports that marketing professionals are already making outreach – including full-page ads in the Tribune.

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-- Advertising economist Jon Swallen says the current U.S. economic downturn is due only in part to cyclical economic issues such as sagging consumer spending. Ironically, he says, the ongoing shift from traditional to digital media—one key area of growth for advertising—is actually contributing to the overall ad economy slowdown.

More news after the jump:

-- Chris DeWolfe, who in 1998 created the original incarnation of MySpace.com, is not content to run the most world’s most popular social networking site. Now he wants MySpace to be the next indispensable Web portal.

-- Are newspapers as we know them destined to disappear like the dinosaurs? Randy Siegel, president of Parade Publications, maintains that key innovations can allow newspapers to reverse their fortunes.

-- Rob Walker, author of the weekly New York Times Magazine column “Consumed,” has devoted countless articles to telling Americans why we buy things. In his new book, Buying In: The Secret Dialogue Between What We Buy and Who We Are, he examines the latest generation of consumers who have been inundated with 360-degree advertising campaigns. But instead of finding them jaded or immune to marketing ploys, he describes a youth culture that embraces certain brands as forms of self-expression. And when there isn't an existing brand that fits the bill, they'll create brands of their own.

-- CNN has topped Google as the most popular search source for video news online, according to a new study by Performics.

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-- Google and Yahoo have formally announced an advertising partnership. The “non-exclusive” agreement with allow Yahoo access to Google’s AdSense for search and content advertising programs in the U.S. and Canada.

More news after the jump:

-- The Outdoor Channel, which underwent a rebranding last year, is launching an eco-friendly corporate responsibility initiative.

-- To showcase its program for prospective M.B.A. students interested in marketing, the University of Chicago Graduate School of Business will hold its first recruiting event focused on marketing on Tuesday, June 17. The marketing open house will include a discussion of the Chicago GSB marketing curriculum, a model class, and a panel presentation featuring current students and marketing executives who graduated from the school.

-- Capitalizing on consumers’ ongoing concerns about gasoline prices and their vehicles’ fuel efficiency, Jiffy Lube is touting its new “Fuel Efficiency Review” service. Beginning June 18, customers who purchase a Jiffy Lube Signature Service Oil Change at participating location will receive a Fuel Efficiency Review detailing tips that, the company says, could save them up to 55 cents per gallon of gas.

-- Kayak.com is launching a display advertising platform optimized for the travel industry. Similar to the text ads that are already available through the Kayak Publishing Network, the new system helps travel marketers target their ads based on search criteria including destination, origination, trip dates, length of stay, specific airline/hotel/car brands and car type.

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-- TNS Media Intelligence reports that the U.S. advertising economy grew a meager 0.6% during the first quarter of 2008, as concerns about the economy continue to hinder spending in most major media.

More news after the jump:

-- The Wall Street Journal reports that, in the wake of the disastrous earthquake in China on May 12, major advertisers (including Proctor & Gamble and Coca-Cola) are struggling to determine how—and when—to appropriately promote its offerings in that important growth market.

-- Philadelphia’s two major daily newspapers caused a stir recently by publishing print and digital ads for a fictitious airline (“Derrie-Air”), all of which were designed solely to measure the power and reach of such ads to readers across media platforms. Read about the controversy and visit the clever Web site for the fake airline.

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Always nimble and creative in response to recent news and events, the savvy marketers at Southwest Airlines and its ad agency, GSD&M idea city, have a new ad campaign (in print and online) that touts how the airline refuses to “nickel and dime” its customers. With other U.S. carriers announcing new fees or charges almost daily, Southwest is clearly capitalizing on travelers’ unhappiness about the trend.

Proclaiming that “Fees Don’t Fly With Us,” Southwest’s ads and its dedicated Web landing page tout its lack of fees for first or second checked bags, flight changes, curbside baggage check-in and more.

American Airlines Inc. caused an uproar after it announced May 21 that it would begin imposing a $15 fee for the first checked bag—each way—for travel on tickets purchased June 15 or later. Today, United Airlines announced that it will follow rival American Airlines in charging $15 for a first checked bag. Other airlines have instituted a $25-each-way fee for a second checked bag. Airline expert Tom Parsons says that, as of July 1, Southwest Airlines will be the only U.S. carrier that permits two checked bags for free.

I’ve always been impressed by Southwest’s ability to differentiate its brand--in its everyday practices and its advertising--and to do so quickly and smartly in response to current events. And, I’ve always enjoyed their commercials. My personal favorites: the one where the “Consolidated Airlines” employee spins a big wheel to see if passengers get to fly on a “Big Plane” and the “Wanna Get Away?” classic in which a cubicle dweller unwittingly downloads the “Pink Slip Virus,” which immediately attacks computers throughout the office.

Nicely done, Southwest.

Incidentally, Marketing News magazine recently published an insightful KnowledgeBase Q&A with Fred Taylor, senior manager of the “proactive customer service communications department” for Southwest. Read it here.

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With the economy tight these days it’s not unlikely that your business is a bit slow. Consumers are pinching their pennies and cutting back here and there as gas prices continue to hit record highs. But you still have a quota to fill, inventory to move, and sales to close.

If you’re like most companies today, you’re discounting your prices to accomplish your revenue goals. But according to today’s Marketing New Radio Show guest, that may just be the worse thing you can do. In fact, he believes there is a recession-proof pricing strategy with a longer, more profitable view.

Joining me on the radio today was Reed Holden, a leading authority on pricing strategy, and co-author of the book Pricing with Confidence: 10 Ways to Stop Leaving Money on the Table. He is also cofounder of Holden Advisors, a firm working with Global 1000 B:B companies on their pricing strategies. I asked Reed to share insights on how to approach pricing in turbulent times.

First and foremost it’s important to emphasize the amount of money being left on the table due to improper pricing models. Holden indicated that he’s commonly seen increases in profits of between 50-60% when the right strategy is used. “Discounts have become the crack cocaine of management today,” said Holden, indicating the number one reason for companies not capturing all the dollars their products are worth. In fact, he highlighted two key recession strategies we should all be considering: 1) protect your profitability and don’t under price your products – chasing after revenue never works; and 2) introduce lower value, flanking products and services to shore up your higher value offerings – this still gives customers a chance to buy.

Tons of great stuff in today’s show: pricing against the competition, elements of a strong pricing strategy, and even something you can do today to begin your own improvement process.

-- David Kinard, PCM

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