Tagged: advertising

Recession forces Media Barons to turn towards the Web

The recession-fueled advertising downturn underlines the urgency of using the Web to glean data and target consumers directly, rather than blasting them with a barrage of TV-style ads, media executives say…

As advertising dollars grow ever more scarce, companies have been forced to rethink how they reach consumers and have moved away from the traditional 30-second spot to the kinds of targeted, Internet-driven marketing campaigns that have been talked about for years…

Marketing is on an arc to become more efficient. My dollar should go further. And that says the advertising pool may not grow at the rate that it’s traditionally grown at, even out of this recession.”

Targeting consumers via demographics, profiling, and their social networks, “you learn a lot about people and you can identify them,” Jonathan Miller added.

The thinking among these media executives is that advances in technology is enabling them to build more detailed profiles of consumers — which can then either be sold as a commodity or employed in their own marketing campaigns…

But Ed Moran, director of product innovation for Deloitte, said tracking tastes and developing profiles is fine, as long as advertisers do not make the old media mistake of finding their optimum consumers, only to show them a commercial…

Even actor and media producer Ashton Kutcher chimed in at the conference, saying the billboard-style display ad is already outdated.

“People who have grown up on the Internet have trained themselves not to see it,” he added.

Sounds like what they should be paying for viral distribution and influence. That leaves them to choose between hypocrites and flacks on one side – and pain-in-the-ass opinionated cranks like me.

Which do you think they will choose? :)

Har! I ain’t planning on opening a new bank account.

About these ads

Southern Comfort dumps cable TV for online advertising – only

Southern Comfort is taking its $8 million marketing spend online to reach its target market of 21- to 29-year-olds. Last year, the brand spent $6 million on late-night cable TV and another $1.5 million on magazines. All of that is going away.

Now, SoCo plans to spend $10 million online, where the money reaches far more prospective consumers than the same spend offline. The brand plans to buy ads for streaming TV episodes on Hulu and on the web sites of NBC, CBS, Fox and FX; it will also pick up ads on Facebook, Playboy, Thrillist and Break.com, among a number of others…

Because spirits advertising is forbidden from prime-time television, SoCo is having a tough time reaching its target audience. Plus, the folks the company wants to sell to are spending more of their time online. A Forrester Research survey released last week reported that Generation Y (ages 18 to 29), spends the most time online of any age group — more than 19 hours per week. Plus, Internet use across the board is exploding, up more than 115 percent over the past five years. During the same period, time spent reading magazines dropped 6 percent. It seems the best place to reach a younger audience is online, especially for an alcohol brand.

Lena DerOhannessian, SoCo’s U.S. marketing director, told AdAge, “As we’ve focused more on 21 to 29, TV becomes less and less effective at reaching that audience.” Because spirits advertising is compressed into a very short time slot, SoCo found that it was ending up with multiple alcohol ads within one show, or even one “pod” or commercial break. “That was just a game we didn’t want to keep playing.”

An experiment I’ll be watching like a hawk. Along with all the big boys.

The inability to quantify and analyze hard data from traditional advertising methods has driven companies bonkers for decades. No way at all to track eyeballs. Now – it takes more than click-throughs to determine what’s actually producing sales – but, the hard part of measuring the start of the process is comparatively easy online.

What’s the Honda hybrid’s niche? Everyone affected by price.

Honda Insight Concept

The timing may be right for a hybrid car with a suggested retail price starting under $20,000 — the first in the American market in that price range. That new model also comes as car sales decline along with gasoline prices, which may diminish consumer interest in greener transportation.

The American Honda Motor Company is taking a big risk on the potential appeal of a more mainstream hybrid. The automaker plans to introduce the 2010 Honda Insight on March 24, with sticker prices of $19,800 to $23,100 (plus destination charges).

By comparison, the 2010 Ford Fusion hybrid, from the Ford Motor Company, is priced from $27,270, and the 2009 Toyota Prius, from Toyota Motor Sales USA, starts at $22,000. The largest hybrids, like the 2009 GMC Yukon from General Motors, can cost $50,000 or more.

A campaign for the Insight, with a budget estimated at $50 million to $75 million, is scheduled to start on Monday. The campaign is by RPA in Santa Monica, California The ads present the Insight as a democratic car — small “d,” that is, as opposed to, say, President Barack Obama’s souped-up Cadillac limousine — because it is priced to be affordable.

You know who could use a car like this?” asks the headline of a print advertisement. “Everyone.”

Sounds like a smart campaign. I don’t now if people are ready to spend what hard-earned bucks they have on a new car. Right now.

But, Honda generally is as smart as Toyota – which means light years ahead of the Big 3. Perfectly capable of establishing a perception ahead of demand – which then places them in a position of advantage when consumers decide to act.

Apple’s combative ads against Microsoft continue to pay off


Opening Day in December at Apple’s Munich store, first in Germany
Daylife/Getty Images

I guess I should start with a note. A couple decades back, I sold computer systems to folks in the advertising game. They all believe that advertising can solve every problem in the world. The right slogan can save humanity and make everyone rich.

Generally, they were an easy sell.

Twenty-five years ago, Apple hurled a legendary marketing sledgehammer at IBM personal computers that ran Microsoft software. During the 1984 Super Bowl, the company ran a powerful television ad that depicted those machines as instruments of Big Brotherish conformity. The ad ran just once but is still talked about.

These days, Apple is still running ads that hammer computers that run Microsoft’s software.

And this time, Apple is delivering a constant pounding to its rival, which has been weakened by product stumbles and a series of ads that fell flat with the public.

While other technology companies curtail their ad budgets to ride out what appears to be an intense and protracted recession, Apple, based in Cupertino, California, said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008 compared to the same period a year ago.

Continue reading

Atheist bus ad campaign moves on to Barcelona

Next week, Barcelona will become the first city in predominantly Catholic Spain to copy the controversial UK campaign when its buses use a direct translation of the slogan adopted in Britain by the scientist Richard Dawkins and other prominent atheists.

“Probablemente Dios no existe. Deja de preocuparte y goza de la vida,” it reads. “There’s probably no God. Now stop worrying and enjoy life.”

Campaigners say that with 20% of Spaniards professing they do not believe in God, it is time atheism becomes a visible phenomenon.

It is time for non-believers to make themselves seen and display their pride in their own convictions,” said the Catalan Atheists group.

Donations have been flooding into the fund opened by the Catalan Atheists. “We raised a thousand euros in the first day,” the group said. “At this rate we will be able to take the campaign to Madrid as well.”

Rock on, dudes!

Cutting out the middleman in ads – sort of

LG Electronics used to run separate advertisements in each country it did business in, and the ads focused on the products it sold: televisions, phones and home electronics. Now, it is introducing its first global campaign featuring a celebrity. And it was not a Madison Avenue agency that designed the ad, but that eminent wrangler of celebrities, Condé Nast…

The Condé Nast Media Group, which created the ads, earned almost $100 million in revenue from custom work like this in 2008. It has created campaigns for the department store chain Dillard’s, the vodka Grey Goose, and the luxury car brand Lexus, which have included in-store events, parties and television programs. The unit demands that all the advertising it creates run only in Condé Nast magazines and Web sites…

A.J.Storinge said he asked several media companies to devise ideas that refreshed LG’s existing slogan. “It started with, How could we add further depth to the equity already built behind the tagline ‘Life’s Good’?” Storinge said. “There is a need to start to give it more meaning.”

Condé Nast executives said they came up with the idea of “Life Looks Good” because it would be understood around the world and would not need to be adjusted to reflect different cultures, although the ads are translated.

It also meant they could suggest other ideas based on the senses to LG and Mindshare: “Life Tastes Good,” “Life Sounds Good,” and “Life Feels Good,” which would mean more revenue for Condé Nast in what looks to be a dismal advertising year. “At the end of 2009, we potentially will have spent more with Condé Nast versus a year ago,” Boden of LG said.

“There’s no celebrity fees per se for this. It’s in return for promotional consideration. The clever part of these integrated marketing programs is finding triangulation: Third party A needs something from third party B who needs something from us.” Zwick, for instance, is promoting his new movie, “Defiance.”

I sold to ad agency types for a short spell in early geek days; so, this gives me a special chuckle. Not that this isn’t a potentially successful campaign. Not that it can’t or won’t build into something qualitatively different within the trade. I just learned early on that you really can bullshit a bullshitter.

The article offers a discussion on the semantics of LG as “Life’s Good” and a segue into “Life Looks Good”. But, I wonder who was the original bright employee who thought of turning LG – which was “Lucky Goldstar” – into LG Electronics?

We’ve got your number!

Here’s, uh, the next-to-last camera I bought.


Panasonic DMC-FZ50 10.1MP Digital Camera with 12x Optical Image Stabilized Zoom (Black)

Many products have numbers attached: megapixels for cameras, wattage ratings for stereos, cotton counts for sheets. A new study in the Journal of Consumer Research shows that consumers are heavily influenced by quantitative specifications, even meaningless ones.

“We find that even when buyers can directly experience the underlying attributes and the specifications carry little or no additional information, they are still heavily influenced by the specifications,” write authors Christopher K. Hsee, Yang Yang, Yangjie Gu, and Jie Chen.

In the five related studies, researchers asked participants to choose between two options of digital cameras, towels, sesame oil, cell phones, and potato chips. In every study, participants preferred the products with the most specifications…

While the participants clearly chose products with more specifications, they didn’t necessarily like the products more after they chose them.

They probably could just have asked one of the old-timey advertising agencies.

Climb aboard the Atheist Bus Campaign

As you read this, a new advertising campaign for Alpha Courses is running on London buses. If you attend an Alpha Course, you will again be told that failing to believe in Jesus will condemn you to hell. There’s no doubt that advertising can be effective, and religious advertising works particularly well on those who are vulnerable, frightening them into believing. Religious organisations’ jobs are made easier because there’s no publicly visible counter-view to refute their threats of eternal damnation.

The atheist bus campaign aims to change this. In addition to the slogan, the adverts will feature the URLs of secular, humanist and atheist websites, so that readers can find out more about atheism as a positive and liberating alternative to religion. We’ve also set up an interactive campaign website and Facebook group, so that questions raised by the adverts can be publicly debated.

I wonder how much of a hassle – and how costly – something like this would be here in Santa Fe.

Lenseless glasses the new Olympic advertising trend?

Um. I couldn’t find a photo of the glasses…

If film stars in sunglasses in dark clubs at night seem ridiculous, it looked even more baffling when beach volleyball players at the Olympics took to the court wearing frames with no lenses.

“The lenses fog up because of the humidity, so you can’t wear the glasses without popping out the lenses,” U.S. men’s volleyballer Phil Dalhausser told reporters…

Several beach volleyball players wear glasses at night to reduce the glare of floodlights or protect their eyes from flying sand but the frames serve no other purpose than sponsorship.

Have we reached the point where the advertising is more important than the event?

50% news vs. 50% advertisements. Is that the newspaper you’re interested in buying?

Last week, Sam Zell, CEO of Tribune, and COO Randy Michaels announced a set of deep cuts, saying that shrinking revenue left them no choice.

They said they would trim 500 pages of news each week from the company’s dozen papers, including The Chicago Tribune and The Los Angeles Times. Their aim is a paper with pages – excluding classified advertising and special ad sections – split 50-50 between news content and ads.

Zell’s plan is an accelerated version of what many newspaper companies are already undertaking in the hope of staving off the kind of huge dislocation that occurred in other industries, like the steel business in the 1980s or the domestic automobile business today. In those cases, the pressure came from legacy costs, labor and foreign competition. In the newspaper business, which struggles with those costs as well, the biggest threat is the migration of advertisers and readers to the Internet.

I think Zell is condemning his empire to the same mediocrity and failure as GM. What do you think?