Acknowledging that data is the basis of most advertising, especially for online ads, which is driven by unique views, Montague quipped, “It’s easy to forget that those eyeballs are attached to a brain and that brain is attached to a heart.”

In offering his personal definition of his role in the marketing business, he said, “We think of what we do as creating meaningful relationships between people and companies. It might include advertising at some point. We’re not anti-advertising, but we don’t think it’s a starting point. What’s the action that’s going to allow you to create a story and move your consumers?”

Lebowitz: “I’m always desperate to get more of the raw connectivity data, which is easy with Twitter. But it’s also about finding engaging, real time stories. Facebook is loosely structured, Twitter is more tightly structured — the former is more appealing. YouTube (NSDQ: GOOG) is the second largest search engine. How often do you go to the main page to look at videos? It’s about people sharing videos. It’s enormously hard to plan for.”

Turning to mobile, Montague said that he has a hard time thinking of mobile as an ad medium. The medium that matters today is people. If you think of “eyeballs to heads to hearts”, figuring out how to move them, to excite them and get them to share your story and get involved — that’s the key. But if someone is out and about, the idea of getting people to share something is interesting.

Adler will establish a strategic communications practice at MediaLink. (Maybe he’ll start by suggesting the MediaLink site be updated so we can link to the release.) During his decades at the company, Adler was a Time reporter and an HBO programming exec. He served as EVP-corporate communications from 2004 through his departure.

Millard, who this week announced her departure from Martha Stewart Living Omnimedia (NYSE: MSO) to become president of advisory firm Media Link, mostly played the interviewee this morning, touching on a subject that she’s often been heard on, the question that many online media companies face: are we a tech company or a media company? Millard: “When we started DoubleClick, we went through that. Yahoo (NSDQ: YHOO) is still going through that. Will we be able to bring these industries together?”

Morgan: “It’s going to take a while. It’s a generational thing. Engineering and ad offices are divided geographically, and that’s part of the challenge.”
Millard: “What true media person wants to live in Silicon Valley? But that’s where you’ll find the best engineers.”

– TV’s next Golden Age: Millard then turned to Morgan’s latest venture, Simulmedia, which closed a $4 million round last month and is focused on TV program promotion. On starting this business, Morgan explained, “I tried to look for where markets might be in the next four- to seven years. It depends on your focus. My view is to make a bet and build a business. Search is going to continue to grow, but I don’t know that there are that many PC-based ad businesses that will be robust, so I’m more focused on TV. This isn’t just US, but TV will undergo an important golden age. Even with the growth of mobile. You’re looking at a $125-, $150 billion business. When distribution becomes plentiful, attention becomes scarce. The hardest problem will not be how do I deliver a rifle shot ad at viewers. It will be how do I deliver eyeballs to a screen. Look at TVGuide, it once had commanded the attention of viewers; last year, it was sold for a dollar.” More after the jump.

– The future of paid content: Morgan said he was not optimistic about what Millard described as the current mania among medi companies to “recapture an opportunity that was lost 15 years ago,” when publishers started on the path to ad-supposed content, instead of building solid pay walls. Morgan: “A lot of this thinking is built on World War II era mindsets. A lot of media have U-shaped pricing curve, which involves massive distribution. That model wiped out niche competitors. Paid content models have generally been based on token payments — such as newspapers. Now that most content is digital, it can delivered for free.” He later alluded to the exceptions about financial media companies, like Bloomberg, The Economist and WSJ.

– A golden age of journalism: Morgan described himself as being part of the “Jeff Jarvis school” — newspapers are in trouble, but journalism is not. There will be difficulty in supporting investigative journalism, but that will be worked out. I don’t hear consumers saying that I can’t wait to give someone $500 a year for some content. I use my corporate credit card to pay for my subscriptions.

– The CraigsList model: The classifieds site has is regularly cited as being one of the primary forces killing newspapers. But Morgan finds that model also offers a clue about where media business can look to, at least the ones who survive. Morgan: “That’s an amazing business model, but people look at a hobby. Jeff Zucker says he won’t trade analog dollars for digital pennies. Well, what choice do you have? CraigsList is worth a billion dollars or two. That’s a profitable business.”

– Same time, same place, model: Getting people in one place at one time has worked and will continue to work, Morgan said. For example, YouTube just announced a new feature that you can instant message people and watch something together. Morgan: “Simultaneous media consumption is the strongest model, and it has put pressure on advertising. The broadcast model, which is based on same time, different place, is suffering because of that. Most viewing online is on-demand and that puts more pressure on advertising.”

This morning’s event was part of the Executive Breakfast series hosted by ContentNext that brought together some of of the big names in media including John Suhler, Larry Kramer of MarketWatch fame, Alan Patricof, AP CEO Tom Curley and many more.

– Art is gone, science is in: Companies like Yahoo (NSDQ: YHOO) and AOL’s Platform-A (NYSE: TWX) ask whether they’re advertising and or technology companies. Microsoft’s hire of former Yahoo EVP of engineering for Search and Ad Tech Qi Lu — instead of former aQuantive head and online ad specialist Brian McAndrews — and Yahoo’s decision to tap non-media exec Carol Bartz as CEO suggests that the industry has spoken clearly of what it wants by relegating the “art” of advertising to the back of line behind metrics. Millard, president of Media and Co-CEO of Martha Stewart Living Omnimedia (NYSE: MSO) as well as the chair of the IAB’s board, says this is a false choice: “It’s the same question the industry asks, when it frets over whether interactive ads are direct marketing or for branding? The answer is, we have to do both. When I was at Yahoo, one of the people on the tech side called display advertising, ‘non-performaning advertising.’ That was the battle companies faced. Some are still facing them.” But the massive reams of data still can’t create compelling messages, and that should be the focus of the interactive ad industry, Millard said. “While it is undeniable that technology is more important to advertisers, and data can give us keen insights into consumer behavior, an over-emphasis on measurement is holding back the business.“

– Taming the data dragon: In Millard’s view, if the industry leaves marketing to “price-setting media agencies and price-cutting marketers, we will kill this business. “The solution is to help marketers get out of the way of the conversation among consumers and get them into it. The way to do that will involve integrating technology and data specialists into the marketing mix and using the data they produce to inspire the messages. But there needs to be greater balance. Millard: “We have to tame the data dragon. Data alone is not going to assure we create a successful brand experience. There is art here, literally and figuratively.”

– Millard wrapped up the presentation with one of her killer lines: “Stop acting like we’re selling schmattes, and more like the makers of magic that we are. Makers of magic.”

Millard, in an interview with Ernie Sander, ContentNext Media’s managing editor, began by saying MSLO’s varied media offerings — online, print, TV, radio, as well as its extensive merchandising deals — make it strongly positioned to weather what it shaping up to be a severe media downturn. After Sander mentioned that MSLO’s overall Q3 revs were flat, Millard made her case: “We’re not called ‘omnimedia’ for nothing, you know. Our financial outlook bodes better than most. We have that hedge, not only across media platforms, but the media and the merchandise business. So, for example if people stop buying sheets, they’ll still be going online. If one part of the business is down, another is likely to be up.”

– Brands are havens: At the end of her appearance, Millard said that if you look at any pullback period in advertising, there’s an ineluctable flight to safety. “That used to mean flight to TV. Not anymore. Flight to safety means flight to brands — brands that are solid and represent quality. What I’m seeing happening, is that online advertising, the only part of the business to increase by double digits, is continuing to grow, although it is slowing. That’s what the ad nets don’t get. If I have a finite ad budget, I’m not going to throw my money anywhere, unless I’m just interested in a pure direct response play. The best place for quality advertising is with reliable brands. Not all brands will thrive. But it will still be a very good time for online publishers that have a respected name.”

– The omni-party planner: On the investment stake that MSLO took in party planning social net tool Pingg, Millard said “Most people think (online invitations are) ugly. It’s different than the Wedding Wire investment. It’s a really smart idea. It will help our mag reader, who has 17 parties a year — that’s more than I have! Now, she can plan them online. Our franchises are in food and in whole living. We can invest in other companies in that space.” With last February’s $50 million purchase of chef Emeril Lagasse’s media properties, Millard strongly hinted that MSLO would consider making other, similar purchases.

– Yahoo’s problems: It’s not a tech issue: Since departing as Yahoo’s chief sales officer to become MSLO’s president of media in June 2007, Millard is used to questions about the constant flux at her previous employer. Whether its Microsoft (NSDQ: MSFT) bidding for Yahoo (NSDQ: YHOO) or the recent pact with Google (NSDQ: GOOG) (currently in abeyance), Millard was asked how she would handle things if she were there. Millard said part of the problem is the online media industry’s focus on “platforms instead of brands.” Millard: I’m a media person, not a tech person. We live in a world that is not and should not be binary. I would put the ‘and’ back in that company.”

More about ad networks, tabloid rumors and Time Inc. after the jump.

The scourge of ad networks: “What the proliferation of ad networks has done to pricing is heartbreaking. We don’t need 300 of them, and we don’t need them unrestrained. I’m very sorry that a lot of the big guys have decided they don’t want to be in the media business, they want to be in the platform business. I love behavioral targeting. Women 18-34, that’s a target. Men,18- to 34 — they’re all alike, right? That’s as spray and pray as TV. Behavioral targeting without context — no wonder marketers are skittish. I would put the content and context back into these companies.” Millard did acknowledge the rightful place for remnant ad operators. “[Publishers] are not going to monetize every part of our inventory. There are many organizations that cannot afford an ad sales force. But who needs 10 million impressions? You need to roll all this inventory up to get scale. But ad nets need to take some responsibility. This is not a direct marketing medium solely, it is also a branding medium.“

– Replacing Ann Moore?: Before former MSLO CEO Susan Lyne took a job at discount fashion e-tailer Gilt, she had been talked about as a possible successor to Time Inc. CEO Ann Moore. Moore has said she will not renew her current contract when it expires in the second quarter of 2010. Millard: “I don’t know if I would want that right now. I would be presiding over the 600-person layoff last night. Seriously, I’m just focused on my job.”

– Too much tech: “I go to a lot of industry functions and I have to ask myself, ‘Is this the tech business or the media business?’ I’m on a plane four times a week. I don’t think about how it stays up there. I’ve watched TV for many years and have never taken the back off. Why do we in media do that with online? There’s a saying that advertising should be so effective as to make you cry. Well, a lot of the advertising I see on the internet makes me cry — and not for the right reasons. We’re still doing a lot of navel-gazing and not talking about what makes great advertising.” She said the key is to have an appreciation for the creative part of advertising.

– Hot rumor: Media Mavens Spat!: There is no feud at MSLO, Millard said adamantly, in response to a question about tabloid reports. Last week, the New York Post cited unidentified sources saying there was a rift between Stewart and Millard. “People are fascinated by Martha. They love to read about her and they love to write about her. I don’t read the NYP. I read the NYT and WSJ. I guess a lot of people read NYP. I don’t see where they get this stuff.”

– Wenda Harris Millard, co-CEO, Martha Stewart Living Omnimedia: Beginning to see a softening in the ad market, a lot of unrest with consumers. “I think they’re confused about what’s going on in the financial markets. Hopefully, there will be some stability in the packaged goods marketers.” There’s been no real long term planning by marketers. Just in time buying in digital, but also in print, which is a challenge.

– John Squires, EVP, Time Inc.: “Magazines tend not to be affected much by downturns, as people tend to stay home. But we’re going to be dealing with a difficult ad market for the next year or longer. Things that have a high emotional connection, whether it’s magazines or the internet, will still retain their high value to consumers and advertisers.”

– Jack Klues, managing partner, Publicis Groupe’s ViviKi: “We’re seeing a measured response, and it varies according to channel. You’re going to see greater emphasis on the growth markets — the BRIC countries — and the more measurable media will continue to show growth. But instead of 23 percent growth, a lot of the forecasters have taken it down a bit. So now we’ll see 20 percent growth, which is still a pretty good number.”

– David Eun, VP, content partnerships, Google: YouTube will benefit from the downturn. Every minute, 13 hours of video are uploaded. “When you think about the ad question, people want to go to where the opportunities. Not only are we measurable, we’re performance-oriented too.” Burgi noted that the ad question hasn’t been completely unlocked. How does that affect *Google’s* plans? Eun: “When TV first came out, all the best practices from other media, such as radio, were applied. We’re not taking the so-called easy money. We’re no replicating the TV model. So we’re pursuing and experimenting with different kinds of ad products. These are the early days. But the opportunity is large.”

– Jessica Reif Cohen, managing director, Merrill Lynch: The Merrill Lynch view is that the first six months was a real estate recession and the last six months were a cap ex recession. “The consumer recession is just starting. We expect this to be long and deep. The stocks tell you a year before. Entertainment companies typically don’t recover until a quarter before a recession is over. Advertising is a lagging indicator as well and typically doesn’t recover until a quarter or two after a recession ends.” More after the jump.

– Broadband, mobile at risk in a downturn?: Eun says no: “People are so used to being attached to their mobile and broadband access, that even as consumers cut back, those are two areas that people can’t live without. Millard: “At a time of uncertainty, the notion of not being connected would cause panic in the streets.” Cohen: “Cable tends to recover faster. And yes, if you are staying home, if you’re unemployed, staying connected is essential. And tough economic times have shown that video penetration grows.”

– Ad revenue: Klues: “I don’t want to sound Pollyannish, but there are opportunites. People don’t change unless they have to. The paradigm that existed when I started in the business is model that is shifting. Clients have more information about their core users. We can take advantage of fragmentation — we call it personalization — and we can move away from CPM mechanics and the broad sweep that has been the traditional model. Eventually, the target will broaden and the media mix will reflect that.”

– Cable ad targeting: Cohen asked what the panel thinks of Canoe Ventures. Klues is enthusiastic, saying it fits into the new paradigm he was just talking about. Targeting, not mass, is king.

At the same time, the company provided details of chairman Charles A. Koppelman compensation — he will receive a $900,000 base salary, with the same type of bonus targets.

MSLO representatives wouldn’t say how many employees have left the company as a result of the changes and whether the digital side was affected. Speaking at an investor conference held by RBC Capital Markets on Wednesday, Millard spoke about cutting costs within its broadcast operations. (Webcast here.) Millard also alluded to the reorg of the publishing division. Earlier today, MSLO announced three executive promotions, which included ad sales exec Sally Preston being upped to Group Publisher.

Among those who are out: Sheraton Kalouria, president of broadcasting who worked with Lyne during her days at ABC. WWD adds that Brent Ridge, a veteran of MSLO media properties, has had his responsibilities as VP for healthy living scaled back.

With Lyne’s departure in less than 30 days, those two sides will become more entwined, says Wenda Harris Millard, promoted today to co-CEO from president of media. She’ll share the CEO spot with Robin Marino, until now president of merchandising. Despite the bifurcation of the post and the new roles for Millard and Marino, Millard told paidContent she otherwise sees very little change about to occur: “Robin and I have been working together for three years. When she joined the company, I was already on the board, then I joined [from Yahoo] to work here a year ago and our roles were distinct: me on media, she on merchandise. Our new positions keeps us running those two areas and will make us more collaborative. It brings the merchandising and media segments closer together and even could allow each side to leverage the other even more than before.” More from my interview with Millard after the jump.

– Definitely ready: Back in January, NYP reported on speculation that Lyne would be exiting after SEC filings showed she had not renewed her contract. Lyne moved from the board to CEO in November 2004, as founder Martha Stewart began serving a federal prison sentence related to obstruction of justice and insider trading. As Slate pointed out, MSLO’s stock traded at $30 a share in 2005 and today is trading around $8.

However, in the past year, MSLO has returned to profitability and Lyne has received some credit for that. During the interview, Millard stressed that she planned to keep the strategies in place that helped the company continue to narrow its quarterly losses and increase revenues. She sidestepped questions about whether she knew Lyne’s exit was coming, offering instead confidence in her own preparedness. “I’ve known Martha for 10 years and I’ve been on the board for three years. And now I have one year of having been operating inside the company [as president of media]. The company company is on very solid footing. Susan was a fantastic CEO and she did restore the company to profitability. I will miss Susan a lot. But do I feel ready? Yes, I do.”

– Online growth: Back in December 2006, Lyne said she expected online to comprise one-third of its EBITDA by 2010 with long-term margins of 40 percent. Asked if the goals Lyne outlined were on track, Millard noted that a lot has changed since then: “We’re focusing very determinedly right now on the weddings arena and on the Living.com site, which we’re launching. One of the things you really have to factor in is that we’ve been very successful on the merchandising side. So I’d have to go back and look at [Lyne's figures]. We have 15 partners right now in merchandising. That growth has been so fantastic, so it’s hard to say. What I can say is that our digital business is really healthy and we’re going to continue to grow it.”

– Acquisitions: The $50 million recently spent for Emeril Lagasse

Millard, who left her post as Yahoo’s (NSDQ: YHOO) chief sales officer a year ago to join MSLO, oversees the company’s online, publishing, and broadcasting. Marino handles MSLO