It’s one of the big weeks for advertising (well, in terms of parties and sunshine), so we couldn’t pass up the opportunity to check in on Cannes. More than 12,000 advertising types have gathered in the South of France to toast the industry — and perhaps even collect an award.

This is an interesting year for Cannes, where a lot of the chatter at parties and meetings will likely be about either the recession or the rise of online advertising, Reuters notes.

The festival, in its 55th year, awards excellence with the so-called Lions trophies and hosts seminars and workshops. In a sign of how crucial the Internet has become to advertising, the Film Lions awards now includes films for Internet and mobiles.

The $40 billion online advertising market remains a bright spot in a global industry facing dire times with soaring oil prices and an economic slowdown denting clients’ budgets.

Even though Cannes gives a nod to new media these days, AdWeek writes that the event is nonetheless struggling to keep up with the times. Like the industry itself, Cannes is ”an old institution struggling to reinvent itself in a new-media environment.” 

In many ways, Cannes is a perfect reflection of the ad industry. The city itself is glamorous and beautiful, yet downright gauche and a little scruffy at times. The week of seemingly non-stop events and parties is inspiring and fun, while at the same time depressing in its ephemeral hedonism.

As for economic worries, well, ad executives won’t let those stop them from having some fun, AdAge tells us.   

Skyrocketing gas prices, credit crises, procurement officers: none of these can stop the ad-world extravaganza that is Cannes. This year’s festival will be the biggest ever, complete with more entries, more delegates (especially more marketers), more agencies planning beach bashes or lavishly catered parties, and an even bigger presence — and yacht — for Microsoft.

The Australian also noted that the hot ticket of the week is no less than its boss, News Corp Chairman Rupert Murdoch and Chief Operating Officer Peter Chernin.

Meanwhile, USA Today points out that the first batch of winners on Monday “illustrate more than ever that agencies are crossing into each other’s areas of expertise as mediums continue to converge.”

The top direct advertising award went to JWT India for a print ad in The Times of India. While it was an ad promoting the newspaper, it was also the launching pad for a campaign, which included TV, mobile, video and outdoor, urging people to get involved and “lead India” in honor of the country’s 60th anniversary of independence.

In sales promotion, HBO won the Grand Prix for a multimedia campaign by BBDO, New York.

Keep an eye on: 

• One of Walt Disney’s biggest jobs is uncovering talent that appeals to 8- to 12-year-olds “tweens” so it can keep flowing the pipeline of clean-cut Disney Channel stars (WSJ.com)
• The U.S. newspaper business still has not seen the bottom of a persistent deterioration in advertising revenue, and growing Internet revenue will not compensate for the declines, McClatchy Co Chief Executive Gary Pruitt said after the publisher cut about 10 percent of its work force (Reuters)
• NBC Sports is investing in World Championship Sports Network, a small TV network that broadcasts Olympic sports year-round (The Hollywood Reporter)

(Reuters photo of seafront in Cannes)

Does “iCarly” have that Hillary Duff-stuff? Is she serious like Miley Cyrus?

Viacom’s Nickelodeon and Sony Music are betting big that 15-year-old “iCarly” star Miranda Cosgrove will be the next “tween” media goldmine, stepping into the shoes of Duff (she of the “Lizzie McGuire” series, multiple films, and music releases) earlier in the decade, and current golden goose Miley Cyrus, aka “Hannah Montana.”

The challenge is significant if Nickelodeon can steal some tween thunder from Walt Disney, which is home to both the Lizzie McGuire and Hannah Montana franchises, and the future home to a show by hot boy band The Jonas Brothers .

The time may be right, given the negative buzz Cyrus got from sexually provocative pictures. That said Cyrus has a new album coming out in July, and she may easily bounce back into the public’s good graces.

Nickelodeon and Sony Music will launch tomorrow the soundtrack to “iCarly” — a show in which Cosgrove’s teenage character produces Webcasts from her attic — hoping to spark Cosgrove’s career as a recording artist. She’s got help — talent development executive Jay Landis, who helped launch the music endeavors of Duff and others at Disney.

Disney, meanwhile, is already readying its next star - Demi Lovato of the network’s upcoming Jonas Brothers movie “Camp Rock.”

(New York Post)

Keep an eye on:

• The average share of Americans listening to radio has shrunk about 14 percent over the past ten years, led by the flight of teens, and oddly enough, college graduates. (New York Times )
• Warner Music has pulled its catalog out of Last.fm’s “on demand” free streaming service. According to the New York Times the issue is money. (Silicon Alley Insider)
• Veteran rockers AC/DC are set to become the next major band to sell a new album only through Wal-Mart Stores Inc., according to people familiar with the matter, a move that highlights the growing music-industry clout of Wal-Mart. (WSJ)

(Photo: Nick.com)

Madison Avenue should breathe a sigh of relief, thanks to the retail sector. Big U.S. retailers posted slightly better-than-expected sales last month, which may give them confidence to keep their advertising budgets intact.

Like everyone else, advertising executives have watched the economy, falter a development that could threatens to crimp marketing spending. By and large, admen say, spending had held steady, with some weakness in financial services and other areas.

But Madison Avenue is hardly in the clear — just look at the mounting troubles in the auto industry, which has banked on SUV sales, as evidenced by General Motors’ announcement earlier this week about plant closures and job cuts.

Keep in mind, automotive was the single largest ad spender last year, so the industry’s troubles are hugely significant for advertisers. The second largest spending category? Retail.

That’s why the sales data released by retailers on Thursday should come as good news for ad giant like Omnicom, WPP and, particularly, IPG.

(Remember, IPG’s Martin agency has the Wal-Mart account, and the world’s biggest retailer and huge advertiser posted a 3.9 percent rise in same-store sales. Consumers seem to be taking seriously the slogan “Save money. Live better.”)

For sure, it’s just one month of sales in one category. But if you’re an advertising agency in this economic environment, you’ll take the good news where you can get it.

Keep an eye on:

• HarperCollins Publishers Worldwide Chief Executive Jane Friedman is resigning, parent company News Corp said on Wednesday, making her the second book publishing executive to quit in recent weeks as financial pressures weigh on the industry. (Reuters)
• The upcoming Triple Crown bid by Big Brown has turned into a payday for the Walt Disney Co’s ABC and ESPN networks, as advertisers line up to buy ads on programming leading up to the Belmont Stakes. (Reuters)
• Paramount Pictures said its main studio will absorb the marketing, distribution and physical production departments at its specialty label, Paramount Vantage. (The Wall Street Journal)
• Screen Actors Guild President Alan Rosenberg and National Executive Director Doug Allen want to convince dual card-holders to oppose ratification of the prime-time TV deal recently agreed to by American Federation of Television and Radio Artists and the studios and networks. (ADWEEK)

(Photo: Reuters)

One thing you can bank on next week is that the TV networks won’t be showing off dazzling pilots of new shows at the upfronts, as we highlighted in a preview.

Executives have made no secret of the fact that pilots are costly, and, it seems, not all that useful. Already, NBC previewed their season with little more than a few very, very short clips. CBS, ABC and Fox aren’t expected to offer a whole lot more.

So what do advertising buyers think of this brave new world without pilots? Are they and their clients comfortable shelling out big bucks without seeing a full episode of a new comedy or drama.

Here’s what several had to say on the subject:

Aaron Cohen, Director of Broadcast at Horizon Media:

It worries me, but it’s similar to when replacements are made for programs that aren’t working.

It hasn’t been for a while that you’ve been able to lay down a schedule and say ‘This is what I’m buying and it’s going to be there for four quarters.’ You know you want to reach this particular demographic and you know they have an affinity to watch these forms of programming more than others. That’s what you’re looking for.

   
Stacey Shepatin, Senior Vice President, Director of National Broadcast at Hill Holliday:

It always makes you feel better when you can see the full pilot. The goal will be to be able to see a full episode to make sure that it is appropriate for our brands, there are no content issues and the storyline fits with what our consumers are looking for. So that will all come into play when we look at what shows to purchase.

You’re not going to just run blindly into something, you’re going to want to see what the production quality is, what the storylines are, all of that.

Donna Wolfe, Chief Negotiations Officer at Universal McCann:

The interesting thing is for years we were able to view new pilots. but the failure rate for new shows was extremely high. On average, 70 percent of the new shows fail. All the testing that the networks do, and all the pilots, it doesn’t necessarily spell success.

But I think we have to be comfortable that the content will be appropriate for our clients. It’s in their best interest and the network’s.

(Photo: Reuters) 

Things could get complicated soon in the saga of Microsoft’s quest to acquire Yahoo, since the software makers deadline for what was origianlly seen as a friendly deal — at the right price — passed this weekend without Yahoo saying “I Do.”

Now, that amicable offer could get downright hostile. Analysts say they believe Microsoft is planning to launch a hostile bid at its current price of $31 per share in cash and stock.

Three weeks ago, Microsoft said it will go hostile, or even call off its bid, if Yahoo did not agree to a deal before this past weekend. Now, Microsoft executives are poised to play their next card.

(Reuters)
(WSJ)

Keep an eye on:

• Teen Star Miley Cyrus apologozed for posing seminude in provacative photos. Disney Disney Channel backed up the rising star, saying — “a situation was created to deliberately manipulate a 15-year-old in order to sell magazines.” (Reuters )
• “The Takeaway”, a rival pulics radio morning show, launchs, adding a little competition for the popular news show “Morning Edition.” (WSJ)
• Grand Theft Auto IV’ may drive up Electronic Arts’ bid for Take-Two (Los Angeles Times) (Reuters)

(Photo: Reuters)

Not that anyone was suspicious, but in case you’re wondering Disney isn’t buying AOL .

Iger blurted that out in response to BusinessWeek editor John Byrne’s question on stage at the McGraw-Hill Media Summit in New York on Wednesday.

Byrne: “Can we expect Disney to make another big acquisition? Would you think about AOL for example?”

“No,” Iger jumped in, drawing some chuckles in the audience. “We don’t want to comment on specific acquisitions, although I just did.”

“We have a very strong balance sheet, cash flow is strong and we will buy something if we feel it will add value. We have the wherewithal to do that, but it’s not a necessity.”

In case there was any doubt in the audience, Iger didn’t comment one last time: “If I were to poll this audience, they’d come to the same conclusion: Disney is not going to buy AOL.”

That’s the kind of “no comment” I appreciate.

(Photo: Reuters)

Its a (media) heavyweight battle: IAC’s Barry Diller vs Liberty Media’s John Malone.Not since former Disney chief Michael Eisner and one-time Hollywood super agent Michael Ovitz squared off has the media industry seen as contentious a battle as the one we’re about to witness in Delaware on Monday as Diller and Malone fight in court over control.Long-time business partners are dueling over Diller’s move to break up the company in a plan that would eliminate IAC’s dual class share structure, which gives Malone’s Liberty some 62 percent of the company’s voting power. Under a longstanding agreement, Diller has been able to vote Liberty’s stake. Liberty now says IAC has breached that agreement by going against Liberty’s wishes.PaidContent posted a copy of Diller’s pre-battle message to troops.Eleventh-hour settlement hopes ahead of the trial have largely been dashed. Although there is still about a hour to go before the trial starts. Citing unnamed sources, NY Post says these talks are likely to continue through the week.Let the games begin.(Reuters)Keep an eye on:

• The hair-twirling, the fidgeting, the interjections. BusinessWeek columnist Sarah Lacy learns how not to do an interview with Facebook’s Mark Zuckerberg, when the crowd at South by Southwest Interactive turns on her. (News.com)
• Top six U.S. cable operators aim to spend $150 million to create a jointly owned company to court advertisers on a national scale. (NYTimes)
• Facebook, en Francais. (Reuters)
• MySpace’s talks with music industry heats up, considers launching service without Universal Music Group. (FT)

(Photo: Reuters)