It's beginning to look a lot like Christmas, everywhere you go...
Although it’s only mid November, the sounds, smells, sights, and sales are all aimed at promoting spending during the holiday season. Holiday advertisements are everywhere--for mailbox to inbox, from broadcast to in store promotions, one cannot avoid the fact that jolly old St. Nick will soon be flying around the world with Rudolph and the rest of the reindeer gang.
I've begun my shopping early this year, and have already made a sizeable dent in my holiday shopping. I'm still brainstorming the perfect gift for some friends and family members, but my main issue is: where do I shop? Online or in-store?
Let's go over the pros and cons of each:
The Good:
In Store
Shopping in the store is an event for consumers. Consumers go to stores because they want to spend money, peruse inventory, and usually be seen in public. Products are tangible, and consumers like the fact that they can see what they're getting now, buy it now, take it home now, and use it now. This immediate gratification from shopping makes people feel good--literally a chemical reaction stimulating a pleasure center, and ultimately triggering a "shopper's high." Happy customers not only tend to spend more, but they also might come back to purchase more (loyalty) and experience the "shopper's high" again.
In-store shopping allows consumers to see (and feel) similar items, and make impulse buys. For example, one might go into a hardware store to purchase a lawnmower, and ends up with a rake, work gloves, and some seeds—all purchases made just because the buyer might have thought of them after arriving at the store, or there was a good deal on the product, etc.
Online
-In the information age, data is everywhere and luckily for consumers so are personal reviews, price comparisons, and a seemingly limitless supply of products (both handmade and mass produced). All of this information is literally right at the buyer’s fingertips and without leaving the comfort of one’s own computer—with purchasing power only a click away. Side-by-side product comparisons, price shopping, and discounts/coupons are easily obtained through searches.
The Bad
In Store
-While some people thrive off of the hustle and bustle of in-store shopping, long lines and crowds jam stores, slowing down the shopping experience. With this consumer volume, the total number of items available for in store purchase is severely limited, items are easily damaged, stolen, or misplaced among other goods.
Online
-Online shopping provides an overload of information—there’s almost too many products in cyberspace to sometimes locate exactly what consumers are looking for. Online vendors add extra shipping/handling/insurance fees thus escalating an item’s purchase price. In addition, purchase gratification is delayed because items are shipped, and cannot be taken home immediately (in most cases).
My shopping plan for the 2009 holiday season, since I’ve begun shopping early, I will most likely peruse some merchandise available in-store to gain ideas for family and friends, and then see if I can purchase those items online (where I can usually find a better deal). I think that many consumers are the same way—perusing in store items (for the exposure and hustle and bustle, without having to wait in any lines) and purchasing if the deal and time is right.
I think that vendors—both online and in-store—need to do a better job at wooing consumers to spend more. Twitter is one way vendors are instantly appealing to consumers want for a good deal—offering short term bargains both online and in-store.
Happy shopping!
References:
http://www.mindfully.org/Health/2005/Shopping-Dopamine-Junkie6dec05.htm
Tuesday, November 17, 2009
Tuesday, November 3, 2009
Homemade Halloween
Over the weekend, people opened their front doors and distributed candy to costumed kids in exchange for three little words: Trick or Treat!
Halloween, by far, is my favorite holiday. I love the trickery, haunted houses, and especially dressing up. America loves Halloween too, spending in excess of 4 billion annually. However, this year is very different: The economy has finally caught up with Halloween. Average spending in 2009 was $56.31 per celebratory consumer, dropping 15% from last year’s spending ($66.54) last. The cutbacks in spending consumers are buying less candy, costumes, decorations, and greeting cards.
My Halloween, unfortunately, was a little less exuberant than in previous years. My own costume was one that I had worn in a previous year and the candy I bought was of lesser variety. I also felt that there were more homemade costumes roaming the streets than in years past. Some notable pop culture, homemade costumes that I saw included ‘balloon boy’ (crafted out of aluminum foil), Jon Gosselin (with pictures of all of his ‘eight’ kids), and the late Michael Jackson (complete with mask and glove).
Although I enjoy the creativity and resourcefulness of homemade Halloweens, I am hoping for a brighter economic future next year with an even wider array of tricks and treats. Happy Halloween!
http://usgovinfo.about.com/cs/censusstatistic/a/halloween03.htm
http://www.brandweek.com/bw/content_display/news-and-features/retail-restaurants/e3i9ba294d3ac964cbd964f6314cb939bee
http://www.shoppingblog.com/blog/9300920
http://www.usatoday.com/money/industries/retail/2005-10-11-halloween-usat_x.htm
Halloween, by far, is my favorite holiday. I love the trickery, haunted houses, and especially dressing up. America loves Halloween too, spending in excess of 4 billion annually. However, this year is very different: The economy has finally caught up with Halloween. Average spending in 2009 was $56.31 per celebratory consumer, dropping 15% from last year’s spending ($66.54) last. The cutbacks in spending consumers are buying less candy, costumes, decorations, and greeting cards.
My Halloween, unfortunately, was a little less exuberant than in previous years. My own costume was one that I had worn in a previous year and the candy I bought was of lesser variety. I also felt that there were more homemade costumes roaming the streets than in years past. Some notable pop culture, homemade costumes that I saw included ‘balloon boy’ (crafted out of aluminum foil), Jon Gosselin (with pictures of all of his ‘eight’ kids), and the late Michael Jackson (complete with mask and glove).
Although I enjoy the creativity and resourcefulness of homemade Halloweens, I am hoping for a brighter economic future next year with an even wider array of tricks and treats. Happy Halloween!
http://usgovinfo.about.com/cs/censusstatistic/a/halloween03.htm
http://www.brandweek.com/bw/content_display/news-and-features/retail-restaurants/e3i9ba294d3ac964cbd964f6314cb939bee
http://www.shoppingblog.com/blog/9300920
http://www.usatoday.com/money/industries/retail/2005-10-11-halloween-usat_x.htm
Wednesday, October 28, 2009
Pizza...Brought to You Today By The WSJ
Today, I received an exciting and enticing inter-office email offer that I was unable to ignore:
Leftover Pizza in the Kitchen!
Feeling the usual lunchtime hunger pains, I leaped from my desk and ran to the kitchen in plenty of time to snatch up my very own slice of delicious cheese pizza. While enjoying a break with coworkers, I was suddenly surprised by the packaging of the pizza boxes. Although delivered from popular pizza chain, Mellow Mushroom, the pizza boxes were covered with an advertisement from…The Wall Street Journal? Really? The messaging was: “America has chosen The Wall Street Journal the Nation’s #1 Newspaper,” “We Deliver Unparalleled Content, Unmatched Audience, Quality Solutions,” and “Read It and Eat.”
I wonder if the WSJ is specifically targeting all consumers or specifically business consumers (as the pizzas were delivered to an office building). I think it would be more profitable to target the latter as the content of the paper is business and financial news, which would fit better with corporate consumers. I wonder what the WSJ had to pay to get Mellow Mushroom for this. Hmmmmm…
But, I digress.
What I really would like to discuss is interesting ways brands are trying to reach consumers. I recall a news article from a while back in which a teacher or professor sold advertising space on the bottom of his exams to defer the cost of printing and paper. The WSJ concept is similar, except on a much larger scale. While interactive and traditional media are conventional (for lack of a better term), some brands, like the WSJ are stepping outside ‘traditional’ ways to expose consumers to products.
Daffy’s, a discount apparel retailer, recently played an interactive in cinema advertisement in which live dancers complimented three minute pre-movie commercial. See the ad here:
What I like about this ad is that it is literally spilling over into the audience and is able to really interact with them. The audience was also given coupons (hopefully ones that could be tracked) so that they would further be driven to shop at Daffy’s. What I dislike about the ad is the scope and targeting of consumers. While the ad ran for a full week—I’m sure it was extremely expensive to hire the dance troupe, and unless they can prove the ROI of the ad, I’m not sure if this was a worthwhile venture. Also, the audience was comprised of a diverse group of consumers. It can be assumed that (1) these consumers lived in the same geographic area and most likely shared some socio-demographic traits (although not specific enough to target), and (2) all wanted to see the same film (Amelia). Overall, and interesting, yet expensive and untargeted venture by Daffy’s, but one that is definitely unexpected and generating a lot of buzz.
DeBeers also launched an interesting advertisement last year—an installation piece in Madison Square Park (New York) which a couple would stand underneath a DeBeer’s diamond logo made of mistletoe, and be surrounded by a ring of high speed cameras. The camera would catch a couple sharing a kiss from 360 degrees, and would package the stills into a commercial with the phrase: Two things last longer than time. Love is one of them. A diamond is forever. Thousands of couples showed up to the spectacle and were able to be part of a really cool ad (and remember a moment in time forever). The best way to view come of these ads is to go to YouTube, and search for “DeBeers Unbreakable Kiss.” I liked this campaign because it included real consumers who could be integrated into the overall concept and really interact with the brand.
There are a lot of really cool concepts out there, and unfortunately, I don’t think I’ll be able to cover them all in one article, but hopefully the ads described above exhibit some of the new and innovative ways advertising is evolving. I am excited about the inventive ways companies are trying to go out and reach consumers and interact with them, thusly reaching a broader scope of consumers (who will hopefully become brand loyal consumers). I will definitely be looking to see what’s next!
I’m thinking that although this blog entry might be over for now, that this might be a recurring theme here. If you have any interesting ads that you think I should see—please send them to me at eckramer318@gmail.com.
References:
http://adage.com/mediaworks/article?article_id=139988
http://thefutureofads.com/when-forever-began-shares-a-moment-for-diamonds
Leftover Pizza in the Kitchen!
Feeling the usual lunchtime hunger pains, I leaped from my desk and ran to the kitchen in plenty of time to snatch up my very own slice of delicious cheese pizza. While enjoying a break with coworkers, I was suddenly surprised by the packaging of the pizza boxes. Although delivered from popular pizza chain, Mellow Mushroom, the pizza boxes were covered with an advertisement from…The Wall Street Journal? Really? The messaging was: “America has chosen The Wall Street Journal the Nation’s #1 Newspaper,” “We Deliver Unparalleled Content, Unmatched Audience, Quality Solutions,” and “Read It and Eat.”
I wonder if the WSJ is specifically targeting all consumers or specifically business consumers (as the pizzas were delivered to an office building). I think it would be more profitable to target the latter as the content of the paper is business and financial news, which would fit better with corporate consumers. I wonder what the WSJ had to pay to get Mellow Mushroom for this. Hmmmmm…
But, I digress.
What I really would like to discuss is interesting ways brands are trying to reach consumers. I recall a news article from a while back in which a teacher or professor sold advertising space on the bottom of his exams to defer the cost of printing and paper. The WSJ concept is similar, except on a much larger scale. While interactive and traditional media are conventional (for lack of a better term), some brands, like the WSJ are stepping outside ‘traditional’ ways to expose consumers to products.
Daffy’s, a discount apparel retailer, recently played an interactive in cinema advertisement in which live dancers complimented three minute pre-movie commercial. See the ad here:
What I like about this ad is that it is literally spilling over into the audience and is able to really interact with them. The audience was also given coupons (hopefully ones that could be tracked) so that they would further be driven to shop at Daffy’s. What I dislike about the ad is the scope and targeting of consumers. While the ad ran for a full week—I’m sure it was extremely expensive to hire the dance troupe, and unless they can prove the ROI of the ad, I’m not sure if this was a worthwhile venture. Also, the audience was comprised of a diverse group of consumers. It can be assumed that (1) these consumers lived in the same geographic area and most likely shared some socio-demographic traits (although not specific enough to target), and (2) all wanted to see the same film (Amelia). Overall, and interesting, yet expensive and untargeted venture by Daffy’s, but one that is definitely unexpected and generating a lot of buzz.
DeBeers also launched an interesting advertisement last year—an installation piece in Madison Square Park (New York) which a couple would stand underneath a DeBeer’s diamond logo made of mistletoe, and be surrounded by a ring of high speed cameras. The camera would catch a couple sharing a kiss from 360 degrees, and would package the stills into a commercial with the phrase: Two things last longer than time. Love is one of them. A diamond is forever. Thousands of couples showed up to the spectacle and were able to be part of a really cool ad (and remember a moment in time forever). The best way to view come of these ads is to go to YouTube, and search for “DeBeers Unbreakable Kiss.” I liked this campaign because it included real consumers who could be integrated into the overall concept and really interact with the brand.
There are a lot of really cool concepts out there, and unfortunately, I don’t think I’ll be able to cover them all in one article, but hopefully the ads described above exhibit some of the new and innovative ways advertising is evolving. I am excited about the inventive ways companies are trying to go out and reach consumers and interact with them, thusly reaching a broader scope of consumers (who will hopefully become brand loyal consumers). I will definitely be looking to see what’s next!
I’m thinking that although this blog entry might be over for now, that this might be a recurring theme here. If you have any interesting ads that you think I should see—please send them to me at eckramer318@gmail.com.
References:
http://adage.com/mediaworks/article?article_id=139988
http://thefutureofads.com/when-forever-began-shares-a-moment-for-diamonds
Tuesday, October 20, 2009
Retailers Inspiring Consumers To Spend Time and Money
I went shopping this past weekend—nothing in particular that I really needed or wanted, just felt the urge to get out of the house and see what I could find. On a venture to the local mall, I began to notice the shopping displays designed to lure consumers into their stores. BCBG had bright colors popping out on white store walls; The Gap and Express had signage indicating sales; Banana Republic and J. Crew exhibited a modern and sleek displays exhibiting the latest trends; countless other vendors are vying for consumer attention with a variety of samples and on-site demonstrations.
While walking by these store displays, I began to wonder: In this recessionary economy, what are retailers doing to differentiate it from other retailers to vie for consumers' spending?
In a webisode from the WPP Store, David Roth, CEO of the WPP Store asked Matt Haywood, Global Insights Director for Fitch, for his top ten global ‘must see’ retail stores. His opinions are summarized in the list below:
(10) Uniqlo, New York, NY, USA – Established in 1984, Uniqlo is a value retailer that uses scale and color blocking to showcase its trendsetting products. Its current trends are in alignment with European and American fashions, yet, its prices are affordable.
(9) Sephora, Paris, France – Sephora is a dynamic, innovative, youth focused, beauty retailer that uses bright, night-club displays to showcase both well-known and new brands. In an optimistic environment, the staff is eager to help and offer opinions to patrons, priding itself on its hands on approach to beauty. Sephora is a buzz retailer, primary using WOM as its advertising outlet.
(8) Bic, Osaka, Japan – Best described as an extreme retailer, Bic is a store thrives on madness. The store uses bright and vibrant colors and screaming staff to attract consumer attention to a wide range of specialist brands. On the storefront, a huge quick response (QR) code allows patrons to snap a photo and then be automatically directed to Bic’s website, so that they can shop on their mobile device even when the store is closed, or when it’s too crowded to enter. However, most consumers prefer in-store “extreme” shopping, and are willing to pay more since there is no substitute for the Bic shopping experience.
(7) Daylesford Organics, Cotswold, England – Located on a farm, Daylesford Organics is a lifestyle concept store that is one of the pioneers of high quality, organically grown and sold food and products. Decorated in natural products and colors and staffed with knowledgeable workers, consumers want to spend time here, and often make an event out of visiting the store.
(6) Carnival, Dallas, TX, USA – Carnival is a Hispanic themed supermarket, whose focus is on its product—food! With black gloss and the ceilings and floor, Carnival uses lighting to showcase food and create artful displays. The store also prides itself on hospitality—the store manager welcomes customers when they enter.
(5) Mercer, Buenos Aires, Argentina – Established in an old auto repair garage, Mercer carries a simple, yet trendy garment line in a bold atmosphere. Walls are covered in red striped pattern wallpaper, floors are covered in decadent rugs, and antiquated furniture creates a genuinely unique shopping experience. Like other stores, shoppers are more dependent on the experience of shopping in such a unique store, and are less concerned with price (and therefore items are expensive!).
(4) Lane Crawford, Hong Kong, China – Lane Crawford is a modern department store with an interdepartmental shopping experience. With dividers in place of solid walls, the store allows consumers to participate on an endless shopping journey. Mannequins, retail items, and furniture are arranged according to the principles of feng shui. In accordance with its service proposition, a concierge in each ‘department’ allows consumers to be personally guided through the store adding to the prestige of shopping in such a unique environment.
(3) Mr. Clean Car Wash, Cincinnati, OH, USA – Mr. Clean is a carwash that only uses Mr. Clean products. Consumers are invited inside the store to sip coffee, view Mr. Clean products, and watch TV and/or their car being washed. Mr. Clean prides itself on finding the right people to do the right job.
(2) Asian Paints, Mumbai, India – Asian Paints is store that doesn’t sell any actual products. Instead, it is a showroom that is designed to inspire consumers to experiment with color and lighting, and give them the confidence to mix and test to see what will work in their own homes. This showroom directs consumers to purchase paints at one of its three thousand outlets.
(1) La Boqueria, Barcelona, Spain – Built in the 17th century, La Boqueria is a marketplace that showcases real retail at its best. The environment is energized, as store owners take pride in visual merchandising with color blocking and signage. Hospitality is key at this venue—socializing, tasting fresh foods, and learning add to the uniqueness of this environment, causing consumers to want to spend both time and money there.
From this list of top retailers, several themes emerge:
-Each store needs to fit the needs and wants of it consumers in regards to social, economic, and geographic market conditions—what works in China, might necessarily work in the US, and vice versa. Retailers should be aware of the overall demographic of its consumers when deciding where to establish a retail location, what products each location displays, and how the store markets itself to the public.
-Quality is essential to the overall success of a retailer. Not only is the duty of a retailer to create an atmosphere in which consumers want to spend both time and money in, but they need to offer a premium product/service. Consumers are more willing to part with their money for a unique shopping experience and premium products. While online shopping is a good way to reach a mass audience, there is no substitute for a first hand, in-store experience.
-Happy consumers tend to spend more money, and empowering consumers is vital to a stores success. Stores should make sure that hospitality is a central part of their selling process. A knowledgeable and helpful staff can help consumers navigate through products to select the right items to fulfill both wants and needs.
-Stores need to be innovative in products and product displays, and should really ignite innovation to not only entice consumers to spend more in their stores now, but also to stimulate future sales in more positive economic times.
From my experience, I think that Apple and H&M retailers share similar traits to the list of retailers above. Apple has sleek, modern stores with white interiors, and many displays featuring its products. While having an appointment is necessary for an Apple product to be serviced, the stores are adequately staffed with knowledgeable professionals. H&M, conversely, is a large, trendy store with endless shelves of bright and fashionable clothing. The affordable merchandise is updated frequently to match seasonal trends, and is exhibited in fun and innovative displays.
Whatever the retailer, when I go shopping, I want to have a positive experience free of any regrets (regarding price, quality, and experience). I tend to spend more money on quality products exhibited by retailers that keep, clean, modern, and well organized stores. While I prefer not to be disturbed by salespeople when shopping, I do appreciate an honest salesperson’s opinion when trying a new garment on or help when trying to locate certain items (and especially when trying to find the perfect gift for a friend, relative, or coworker).
As for my recent shopping adventure, I purchased a handbag and scarf from a poorly staffed department store with lackluster display. While I’m satisfied with the quality of the items I purchased, I’m generally dissatisfied with the overall purchasing experience. I had been looking for the items I inevitably purchased and was able to locate them on my own, but was not enticed to search for new or innovative merchandise. Instead, I simply purchased the items I was looking and then left the store without pursuing any other merchandise. During my next shopping escapade, I’ll be sure to go to a retailer that wants to compete for my time and money.
References
http://www.wpp.com/wpp/about/whatwedo/store/store-tv.htm?t=Top-10-Stores&p=http%3A%2F%2Fwww.thestorewpp.tv/site_media/stream/flash/2009/10/The_Store_Top_Ten.flv
While walking by these store displays, I began to wonder: In this recessionary economy, what are retailers doing to differentiate it from other retailers to vie for consumers' spending?
In a webisode from the WPP Store, David Roth, CEO of the WPP Store asked Matt Haywood, Global Insights Director for Fitch, for his top ten global ‘must see’ retail stores. His opinions are summarized in the list below:
(10) Uniqlo, New York, NY, USA – Established in 1984, Uniqlo is a value retailer that uses scale and color blocking to showcase its trendsetting products. Its current trends are in alignment with European and American fashions, yet, its prices are affordable.
(9) Sephora, Paris, France – Sephora is a dynamic, innovative, youth focused, beauty retailer that uses bright, night-club displays to showcase both well-known and new brands. In an optimistic environment, the staff is eager to help and offer opinions to patrons, priding itself on its hands on approach to beauty. Sephora is a buzz retailer, primary using WOM as its advertising outlet.
(8) Bic, Osaka, Japan – Best described as an extreme retailer, Bic is a store thrives on madness. The store uses bright and vibrant colors and screaming staff to attract consumer attention to a wide range of specialist brands. On the storefront, a huge quick response (QR) code allows patrons to snap a photo and then be automatically directed to Bic’s website, so that they can shop on their mobile device even when the store is closed, or when it’s too crowded to enter. However, most consumers prefer in-store “extreme” shopping, and are willing to pay more since there is no substitute for the Bic shopping experience.
(7) Daylesford Organics, Cotswold, England – Located on a farm, Daylesford Organics is a lifestyle concept store that is one of the pioneers of high quality, organically grown and sold food and products. Decorated in natural products and colors and staffed with knowledgeable workers, consumers want to spend time here, and often make an event out of visiting the store.
(6) Carnival, Dallas, TX, USA – Carnival is a Hispanic themed supermarket, whose focus is on its product—food! With black gloss and the ceilings and floor, Carnival uses lighting to showcase food and create artful displays. The store also prides itself on hospitality—the store manager welcomes customers when they enter.
(5) Mercer, Buenos Aires, Argentina – Established in an old auto repair garage, Mercer carries a simple, yet trendy garment line in a bold atmosphere. Walls are covered in red striped pattern wallpaper, floors are covered in decadent rugs, and antiquated furniture creates a genuinely unique shopping experience. Like other stores, shoppers are more dependent on the experience of shopping in such a unique store, and are less concerned with price (and therefore items are expensive!).
(4) Lane Crawford, Hong Kong, China – Lane Crawford is a modern department store with an interdepartmental shopping experience. With dividers in place of solid walls, the store allows consumers to participate on an endless shopping journey. Mannequins, retail items, and furniture are arranged according to the principles of feng shui. In accordance with its service proposition, a concierge in each ‘department’ allows consumers to be personally guided through the store adding to the prestige of shopping in such a unique environment.
(3) Mr. Clean Car Wash, Cincinnati, OH, USA – Mr. Clean is a carwash that only uses Mr. Clean products. Consumers are invited inside the store to sip coffee, view Mr. Clean products, and watch TV and/or their car being washed. Mr. Clean prides itself on finding the right people to do the right job.
(2) Asian Paints, Mumbai, India – Asian Paints is store that doesn’t sell any actual products. Instead, it is a showroom that is designed to inspire consumers to experiment with color and lighting, and give them the confidence to mix and test to see what will work in their own homes. This showroom directs consumers to purchase paints at one of its three thousand outlets.
(1) La Boqueria, Barcelona, Spain – Built in the 17th century, La Boqueria is a marketplace that showcases real retail at its best. The environment is energized, as store owners take pride in visual merchandising with color blocking and signage. Hospitality is key at this venue—socializing, tasting fresh foods, and learning add to the uniqueness of this environment, causing consumers to want to spend both time and money there.
From this list of top retailers, several themes emerge:
-Each store needs to fit the needs and wants of it consumers in regards to social, economic, and geographic market conditions—what works in China, might necessarily work in the US, and vice versa. Retailers should be aware of the overall demographic of its consumers when deciding where to establish a retail location, what products each location displays, and how the store markets itself to the public.
-Quality is essential to the overall success of a retailer. Not only is the duty of a retailer to create an atmosphere in which consumers want to spend both time and money in, but they need to offer a premium product/service. Consumers are more willing to part with their money for a unique shopping experience and premium products. While online shopping is a good way to reach a mass audience, there is no substitute for a first hand, in-store experience.
-Happy consumers tend to spend more money, and empowering consumers is vital to a stores success. Stores should make sure that hospitality is a central part of their selling process. A knowledgeable and helpful staff can help consumers navigate through products to select the right items to fulfill both wants and needs.
-Stores need to be innovative in products and product displays, and should really ignite innovation to not only entice consumers to spend more in their stores now, but also to stimulate future sales in more positive economic times.
From my experience, I think that Apple and H&M retailers share similar traits to the list of retailers above. Apple has sleek, modern stores with white interiors, and many displays featuring its products. While having an appointment is necessary for an Apple product to be serviced, the stores are adequately staffed with knowledgeable professionals. H&M, conversely, is a large, trendy store with endless shelves of bright and fashionable clothing. The affordable merchandise is updated frequently to match seasonal trends, and is exhibited in fun and innovative displays.
Whatever the retailer, when I go shopping, I want to have a positive experience free of any regrets (regarding price, quality, and experience). I tend to spend more money on quality products exhibited by retailers that keep, clean, modern, and well organized stores. While I prefer not to be disturbed by salespeople when shopping, I do appreciate an honest salesperson’s opinion when trying a new garment on or help when trying to locate certain items (and especially when trying to find the perfect gift for a friend, relative, or coworker).
As for my recent shopping adventure, I purchased a handbag and scarf from a poorly staffed department store with lackluster display. While I’m satisfied with the quality of the items I purchased, I’m generally dissatisfied with the overall purchasing experience. I had been looking for the items I inevitably purchased and was able to locate them on my own, but was not enticed to search for new or innovative merchandise. Instead, I simply purchased the items I was looking and then left the store without pursuing any other merchandise. During my next shopping escapade, I’ll be sure to go to a retailer that wants to compete for my time and money.
References
http://www.wpp.com/wpp/about/whatwedo/store/store-tv.htm?t=Top-10-Stores&p=http%3A%2F%2Fwww.thestorewpp.tv/site_media/stream/flash/2009/10/The_Store_Top_Ten.flv
Tuesday, October 13, 2009
Engaging Generation Next
They’re known by a number of names: Generation Next, Echo Boomers, Peter Pan Generation, Trophy Kids, Boomerang Kids, and Millennials to name a few. With 14% of US population being born between 1982 and 2000, this Millenial generation comprise a unique yet diverse demographic whose habits that are worth discussing.
Millenials have a sense of entitlement—from a very young age, they were taught that the world is theirs for the taking; they can become or do anything, and want to be recognized for just participating. They enjoy humor with a slant (visiting sites like CollegeHumor.com, EbaumsWorld.com, Digg.com, and Youtube.com, and enjoy movies like Bruno, Wedding Crashers, and Old School). They are more likely to openly complain online, and demand immediate feedback to their complaints. While open to new ideas and technologies, this group lacks leadership—exhibiting swarm behavior regarding the current media landscape. Millenials are socially, economically, and environmentally conscious, and like to be “in the know,” especially in regards to technology and social networking.
Now that we know a little bit about this diverse group, how are advertisers engaging this audience?
Red Bull, the energy drink that “gives you wings,” markets itself with the sponsorship of extreme sports. One of their main events, the Red Bull Soapbox Race, took place in Atlanta in August of this year. The Red Bull Soapbox race is an unusual, comically themed soap box car derby race fueled by “creativity and competitive fun.” Red Bull energizes not only participants, but also the crowd that gathers to watch.
Another company that is engaging Millennials is Clif Bar. Clif Bar has created a mobile application monitoring the weather conditions at Ski Resorts. This application reports on natural snow creation—which appeals to the millennial desire to save the environment, as artificially made snow is dependent on water and electricity waste.
Advertisers are connecting with Millenials by monitoring trends and listening to their conversations, engaging them where they are (online), entertaining them with a variety of events, and adapting innovative technologies to fit changing wants. Most importantly, marketers need to not only communicate with this group in their own language, but inspire them to create and distribute user generated content.
References
Internal Presentation
http://www.mobilemarketer.com/cms/news/content/2919.html
Millenials have a sense of entitlement—from a very young age, they were taught that the world is theirs for the taking; they can become or do anything, and want to be recognized for just participating. They enjoy humor with a slant (visiting sites like CollegeHumor.com, EbaumsWorld.com, Digg.com, and Youtube.com, and enjoy movies like Bruno, Wedding Crashers, and Old School). They are more likely to openly complain online, and demand immediate feedback to their complaints. While open to new ideas and technologies, this group lacks leadership—exhibiting swarm behavior regarding the current media landscape. Millenials are socially, economically, and environmentally conscious, and like to be “in the know,” especially in regards to technology and social networking.
Now that we know a little bit about this diverse group, how are advertisers engaging this audience?Red Bull, the energy drink that “gives you wings,” markets itself with the sponsorship of extreme sports. One of their main events, the Red Bull Soapbox Race, took place in Atlanta in August of this year. The Red Bull Soapbox race is an unusual, comically themed soap box car derby race fueled by “creativity and competitive fun.” Red Bull energizes not only participants, but also the crowd that gathers to watch.
Another company that is engaging Millennials is Clif Bar. Clif Bar has created a mobile application monitoring the weather conditions at Ski Resorts. This application reports on natural snow creation—which appeals to the millennial desire to save the environment, as artificially made snow is dependent on water and electricity waste.
Advertisers are connecting with Millenials by monitoring trends and listening to their conversations, engaging them where they are (online), entertaining them with a variety of events, and adapting innovative technologies to fit changing wants. Most importantly, marketers need to not only communicate with this group in their own language, but inspire them to create and distribute user generated content.
References
Internal Presentation
http://www.mobilemarketer.com/cms/news/content/2919.html
Tuesday, October 6, 2009
Display Ads Successful Component of a Fully Integrated Advertising Campaign
I was sitting in on a business call a few days ago, when suddenly a voice on the other end of the line said “Every dollar in online advertising spent, is a dollar wasted.” I gasped—thank heavens my line was on mute. Not only is my livelihood currently dependent on online advertising, but I really disagree with this statement. While tracking the success of online conversations is evolving with the landscape of the Internet, an online presence is still essential to the overall success of an integrated marketing campaign.
According to FastCompany in the past two years, the total number of Internet users who click on display ads has declined by half with only 16% interacting with display ads from Q3 2007. Of those clicks, 85% are attributed to a mere 8% of users (described generally as young, lower income adults). With that knowledge, is display click through rate even relevant? My response is yes, when ads are targeted to their audiences.
For example, AutoTrader.com, an online marketplace for buying selling three million new and used cars to an audience of over 14 million qualified consumers monthly from a network of 40,000 dealers and 250,000 private owners, serves ads that are specific to the auto industry. Visiting the site today, I see ads for Toyota, Lexus, Cadillac, and Valvoline, to name a few of the visible brands.
According to a comScore study, “consumers who are exposed to display ads are 65% more likely to visit a brand’s site than those who aren’t exposed to the ad,” and “nearly twice as likely to make a purchase from the site advertised” when “exposed to both display and search ads.” In the AutoTrader.com example, it is worth the advertising expense of brands like Toyota, Lexus, Cadillac, and Valvoline to create an online presence on AutoTrader.com because that’s where qualified consumers are looking to research and potentially purchase a new vehicle.
By not advertising in relevant online markets, I think that brands are forfeiting an opportunity to be visible to its target market. The click through rate might not be the most transparent method of measuring an ad’s success due to its inability to sort out accidental clicks or gauge overall message exposure. Innovations in tracking and visibility are out there—rich media display ads functionality and contextual advertising to name a few ways to directly target consumers and track their overall interaction with ads. I think that display ads work if advertisers are strategic in their media buys, and continue to consider online advertising as a successful component of a fully integrated advertising campaign.
References
http://www.fastcompany.com/blog/clay-dillow/culture-buffet/click-through-rate-still-relevant-valuing-web-ads
http://autotrader.com
According to FastCompany in the past two years, the total number of Internet users who click on display ads has declined by half with only 16% interacting with display ads from Q3 2007. Of those clicks, 85% are attributed to a mere 8% of users (described generally as young, lower income adults). With that knowledge, is display click through rate even relevant? My response is yes, when ads are targeted to their audiences.
For example, AutoTrader.com, an online marketplace for buying selling three million new and used cars to an audience of over 14 million qualified consumers monthly from a network of 40,000 dealers and 250,000 private owners, serves ads that are specific to the auto industry. Visiting the site today, I see ads for Toyota, Lexus, Cadillac, and Valvoline, to name a few of the visible brands.
According to a comScore study, “consumers who are exposed to display ads are 65% more likely to visit a brand’s site than those who aren’t exposed to the ad,” and “nearly twice as likely to make a purchase from the site advertised” when “exposed to both display and search ads.” In the AutoTrader.com example, it is worth the advertising expense of brands like Toyota, Lexus, Cadillac, and Valvoline to create an online presence on AutoTrader.com because that’s where qualified consumers are looking to research and potentially purchase a new vehicle.
By not advertising in relevant online markets, I think that brands are forfeiting an opportunity to be visible to its target market. The click through rate might not be the most transparent method of measuring an ad’s success due to its inability to sort out accidental clicks or gauge overall message exposure. Innovations in tracking and visibility are out there—rich media display ads functionality and contextual advertising to name a few ways to directly target consumers and track their overall interaction with ads. I think that display ads work if advertisers are strategic in their media buys, and continue to consider online advertising as a successful component of a fully integrated advertising campaign.
References
http://www.fastcompany.com/blog/clay-dillow/culture-buffet/click-through-rate-still-relevant-valuing-web-ads
http://autotrader.com
Tuesday, September 29, 2009
Once Trash, Now Treasure
Trash—it’s inevitably everywhere and there always seems to be more being generated. Here in the United States, the trash concept is simple: we take our trash and recyclables to the curb on our given garbage pickup day and it disappears via the garbage to truck to a landfill or recycling center. However, in Indonesia, trash is a huge issue—lining the street and rivers since the country is too economically impaired to fund municipal projects like trash pickup.
One artist, Ann Wizer, has helped create a special project aimed at not only helping clean Jakarta, Indonesia streets, but also establish well paying jobs, and create some really cool new items out of plastic consumer packaging. XSProject, Wizer’s foundation, keeps trash out of landfills—she hires local trash pickers to collect (usually colorful) branded packages, and repurposes them into usable bags, binders, pillows, and a variety of other products and literally turning one man’s trash into another’s treasure.
While this article isn’t exactly advertising centric, I think that XSProject and other similar groups are creating a solution and spreading awareness about the global trash issue to create functional and trendy items to be sold in the marketplace. While branding is so important to creating awareness among consumers, I think that advertisers have an obligation to be socially and environmentally conscious in regards to product packaging. According to XSProjectGroup.com, “only 1 in 10,000 products are created with the environment in mind,” and “98% of all products are throw out within 6 months of purchase.
I think that what XSProject is doing is a wonderful service to the people of Jakarta—creating new goods, establishing viable business opportunities, and cleaning up the streets.
To see some examples of their work and to learn more about the project, please visit: http://www.xsprojectgroup.com.
One artist, Ann Wizer, has helped create a special project aimed at not only helping clean Jakarta, Indonesia streets, but also establish well paying jobs, and create some really cool new items out of plastic consumer packaging. XSProject, Wizer’s foundation, keeps trash out of landfills—she hires local trash pickers to collect (usually colorful) branded packages, and repurposes them into usable bags, binders, pillows, and a variety of other products and literally turning one man’s trash into another’s treasure.
While this article isn’t exactly advertising centric, I think that XSProject and other similar groups are creating a solution and spreading awareness about the global trash issue to create functional and trendy items to be sold in the marketplace. While branding is so important to creating awareness among consumers, I think that advertisers have an obligation to be socially and environmentally conscious in regards to product packaging. According to XSProjectGroup.com, “only 1 in 10,000 products are created with the environment in mind,” and “98% of all products are throw out within 6 months of purchase.
I think that what XSProject is doing is a wonderful service to the people of Jakarta—creating new goods, establishing viable business opportunities, and cleaning up the streets.
To see some examples of their work and to learn more about the project, please visit: http://www.xsprojectgroup.com.
Tuesday, September 22, 2009
Mobile User and Abuser
It’s a well know fact: I break technology. I don’t really think that I’m breaking all things electronic, but rather, I think that I am testing them to the limits. Unfortunately, this usually renders all things mechanical that I handle useless and otherwise broken. Last week, for the fifth time in my entire cell phone life, my cell phone leaped from my hands and went crashing to the ground. This tragic act of cellular suicide triggered a thought—is it time to upgrade to an iPhone or Blackberry?
From my understanding, cellular phone usage is increasing, especially with the rise of wireless technology—specifically applications (apps). My issue is and always has been how connected to “the world” do I want to be? Currently, my phone plan is basic. I don’t text, I don’t surf the Internet, and I have no apps. Although economical, it’s not the best for my social life or connecting to the world around me. So why should I make the next technological step into the 21st century with an iPhone or Blackberry?
According to Did You Know 4.0, a popular YouTube video, there are over one trillion pages, in the last five years, online readership has grown thirty million readers, and sites like Twitter, YouTube, and Facebook are social media phenomena. However, cell phones, iPhone, Blackberries, and various other Internet providing phones, are allowing people to become more connected with one another, the world, and with brands and advertising messages. It is even predicted that by next year (2010), the cell phones will be the primary communication and connection tool to the Internet.
My joining the Mobile media trend surely in, but I think I’m up for the challenge not only as an advertiser, but also as a consumer. I am excited to view the world in a different way with knowledge, information, and Internet connection at my fingertips. I can’t wait to interact with applications, social networking, and more importantly what new innovations advertisers are producing to adapt to market trends and meet the needs of a growing mobile and Internet savvy audience.
Let’s hope that my new cell phones, regardless of its brand or capabilities, stays intact and away from my mobile misfortune. More to come on this topic.
References
http://www.fastcompany.com/blog/cliff-kuang/design-innovation/infographic-day-what-cellphone-provider-best-you
http://www.youtube.com/watch?v=6ILQrUrEWe8
http://www.apple.com/iphone/?cid=OAS-US-DOMAINS-iphone.com
http://www.blackberry.com/
From my understanding, cellular phone usage is increasing, especially with the rise of wireless technology—specifically applications (apps). My issue is and always has been how connected to “the world” do I want to be? Currently, my phone plan is basic. I don’t text, I don’t surf the Internet, and I have no apps. Although economical, it’s not the best for my social life or connecting to the world around me. So why should I make the next technological step into the 21st century with an iPhone or Blackberry?
According to Did You Know 4.0, a popular YouTube video, there are over one trillion pages, in the last five years, online readership has grown thirty million readers, and sites like Twitter, YouTube, and Facebook are social media phenomena. However, cell phones, iPhone, Blackberries, and various other Internet providing phones, are allowing people to become more connected with one another, the world, and with brands and advertising messages. It is even predicted that by next year (2010), the cell phones will be the primary communication and connection tool to the Internet.
My joining the Mobile media trend surely in, but I think I’m up for the challenge not only as an advertiser, but also as a consumer. I am excited to view the world in a different way with knowledge, information, and Internet connection at my fingertips. I can’t wait to interact with applications, social networking, and more importantly what new innovations advertisers are producing to adapt to market trends and meet the needs of a growing mobile and Internet savvy audience.
Let’s hope that my new cell phones, regardless of its brand or capabilities, stays intact and away from my mobile misfortune. More to come on this topic.
References
http://www.fastcompany.com/blog/cliff-kuang/design-innovation/infographic-day-what-cellphone-provider-best-you
http://www.youtube.com/watch?v=6ILQrUrEWe8
http://www.apple.com/iphone/?cid=OAS-US-DOMAINS-iphone.com
http://www.blackberry.com/
Tuesday, September 15, 2009
The Fall Fantasy Football Phenomenon
It’s fall. It must be time to sit back, tailgate, and watch some football.
Estimated between 15 and 18 million, some football fans are taking their love of the sport to new, digital, heights by drafting real NFL players onto fantasy football teams. The premise of the “sport,” is to allow people to “draft teams of players and compete against other teams based on their players' real gridiron statistics.”
“Predominantly male, married, in a high income bracket and more likely to do research or make purchases online,” the number of fantasy football participants is not only a captive audience, but they’re also growing – with 7-10% growth in the past three years. Most users spend approximately four hours per week on fantasy team management via free sites (Yahoo, ESPN, CBS Sports, etc.).
Coors Light beer, for example, is targeting users via a variety of websites, including Facebook. By using this platform, Coors is targeting specific users (21+), and inundating them with advertisements (display ads and online commercials)—thusly reaching attentive core users who drink their product. In addition to Coors Light, major advertisers for this football season are GMC, McDonald's, Budweiser, Toyota, and Coke.
While I do not play fantasy football myself, I am observant to some ads targeted to this group: Bud Light’s Tailgate Approved ads are the specific example that comes to mind. On the Tailgate Approved micro site, not only are there a variety of tailgate essentials and games, but also the Fantasy Football Namerator to assist in choosing one’s fantasy football team name (in essence a word slot machine that make a nonsensical fantasy football team name).
I think that the popularity of fantasty football will continue to grow, and the intensity of the advertising campaigns will follow suit. In the future, I expect more products targeted at the male audience (like Gillette, Axe, and maybe even Viagra) to be more visible online, especially on fantasty football sites.
References:
http://www.nfl.com/
http://adage.com/article?article_id=139005
http://money.cnn.com/2006/08/11/news/companies/fantasyfootball/
http://www.youtube.com/watch?v=ORrqdkDYnoM
http://www.tailgateapproved.com/tg/#/home
Estimated between 15 and 18 million, some football fans are taking their love of the sport to new, digital, heights by drafting real NFL players onto fantasy football teams. The premise of the “sport,” is to allow people to “draft teams of players and compete against other teams based on their players' real gridiron statistics.”
“Predominantly male, married, in a high income bracket and more likely to do research or make purchases online,” the number of fantasy football participants is not only a captive audience, but they’re also growing – with 7-10% growth in the past three years. Most users spend approximately four hours per week on fantasy team management via free sites (Yahoo, ESPN, CBS Sports, etc.).
Coors Light beer, for example, is targeting users via a variety of websites, including Facebook. By using this platform, Coors is targeting specific users (21+), and inundating them with advertisements (display ads and online commercials)—thusly reaching attentive core users who drink their product. In addition to Coors Light, major advertisers for this football season are GMC, McDonald's, Budweiser, Toyota, and Coke.
While I do not play fantasy football myself, I am observant to some ads targeted to this group: Bud Light’s Tailgate Approved ads are the specific example that comes to mind. On the Tailgate Approved micro site, not only are there a variety of tailgate essentials and games, but also the Fantasy Football Namerator to assist in choosing one’s fantasy football team name (in essence a word slot machine that make a nonsensical fantasy football team name).
I think that the popularity of fantasty football will continue to grow, and the intensity of the advertising campaigns will follow suit. In the future, I expect more products targeted at the male audience (like Gillette, Axe, and maybe even Viagra) to be more visible online, especially on fantasty football sites.
References:
http://www.nfl.com/
http://adage.com/article?article_id=139005
http://money.cnn.com/2006/08/11/news/companies/fantasyfootball/
http://www.youtube.com/watch?v=ORrqdkDYnoM
http://www.tailgateapproved.com/tg/#/home
Tuesday, September 8, 2009
Importance of Brands
A friend, who is currently looking to change careers, recently forwarded me a link to a site about branding yourself with color during the interview process, and it made me think about not only the way that I brand myself, but also how products are branded—how consumers connect and remember a brand.
Although I think my signature color to be green, I don’t readily denote that synergistically from interview garb to resume to follow-up notes (although I think it’s a cool idea). Instead, I market myself via a variety of online profiles, and of course, this blog. Hopefully these items attribute to my professional ability, skill set, and interests in the online marketplace to reach my target audience – professionals and other advertising enthusiasts…and anyone else who’s listening (Hi Dad!).
For products, brands are usually denoted with logos. Nike’s swoosh, Coca Cola’s distinctive script, and Michelin with their puffy/marshmallow Michelin man are all examples of how brands’ mark their products as unique and connect them with advertising messaging. Logos allow consumers to recognize a brand product line and bring to mind the unique selling proposition in the marketing message when faced with a purchase decision.
I recently saw a display banner for Kleenex brand tissues. The copy, read:
Brand Identity Theft. Kleenex should be always be be followed by a (R) and the word "Tissue." Kleenex: Help us keep our identity ours.
As a consumer, I use the term ‘tissue’ and ‘Kleenex’ synonymously - or rather, when I ask for a tissue, I'm really asking for a Kleenex brand tissue. Kleenex cementing their brand identity in the minds of consumers by associating the word "tissue" and the brand name "Kleenex"--asking consumers to use the two together so that when one asks for a tissue, they're asking for a Kleenex brand tissue. Another example of this is the use of the term ‘coke’ to refer to a carbonated and caffeinated beverage from 'Coca-Cola.' These two examples show the importance of branding—two completely different brands have become synonymous with the products that they advertise.
Branding is an important part of advertising strategy. Not only is it is a visual link between the consumer and product, but also allows consumer to distinguish brands from one another, build loyalty and choose a preferred brand, and allows for price leveraging based on real or perceived brand benefits.
References:
http://excelle.monster.com/news/articles/3975-how-to-brand-yourself-with-color
Although I think my signature color to be green, I don’t readily denote that synergistically from interview garb to resume to follow-up notes (although I think it’s a cool idea). Instead, I market myself via a variety of online profiles, and of course, this blog. Hopefully these items attribute to my professional ability, skill set, and interests in the online marketplace to reach my target audience – professionals and other advertising enthusiasts…and anyone else who’s listening (Hi Dad!).
For products, brands are usually denoted with logos. Nike’s swoosh, Coca Cola’s distinctive script, and Michelin with their puffy/marshmallow Michelin man are all examples of how brands’ mark their products as unique and connect them with advertising messaging. Logos allow consumers to recognize a brand product line and bring to mind the unique selling proposition in the marketing message when faced with a purchase decision.
I recently saw a display banner for Kleenex brand tissues. The copy, read:
Brand Identity Theft. Kleenex should be always be be followed by a (R) and the word "Tissue." Kleenex: Help us keep our identity ours.
As a consumer, I use the term ‘tissue’ and ‘Kleenex’ synonymously - or rather, when I ask for a tissue, I'm really asking for a Kleenex brand tissue. Kleenex cementing their brand identity in the minds of consumers by associating the word "tissue" and the brand name "Kleenex"--asking consumers to use the two together so that when one asks for a tissue, they're asking for a Kleenex brand tissue. Another example of this is the use of the term ‘coke’ to refer to a carbonated and caffeinated beverage from 'Coca-Cola.' These two examples show the importance of branding—two completely different brands have become synonymous with the products that they advertise.
Branding is an important part of advertising strategy. Not only is it is a visual link between the consumer and product, but also allows consumer to distinguish brands from one another, build loyalty and choose a preferred brand, and allows for price leveraging based on real or perceived brand benefits.
References:
http://excelle.monster.com/news/articles/3975-how-to-brand-yourself-with-color
Tuesday, September 1, 2009
There's No Such Thing As A Free Concert
Two weeks ago, one of my friends invited me to go with her to the Summer Krush tour featuring Dierks Bentley. The show was “free,” and I use the term loosely, as the old adage says—there’s no such thing as a free lunch, and like lunch, this show was not really free.
Sponsored by Samsung and AT&T, the show was scheduled to begin around 8pm. However, the show time came and went, and the only visible activities were the continuous looping of a Samsung Jack commercial on overhead monitors, and an on-stage screen that projected text messages of concert-goers (most to the tune of “I heart Dierks” and “Hi Mom!”). When the MC finally arrived on stage, he chose two random numbers who had texted the screen to win prizes—one person won a Samsung Jack, and the other a Summer Krush electric guitar. Then, Dierks took the stage, and put on a great show.
I think that offering a free concert series is a really innovative way for advertisers, in this case Samsung and AT&T, to bring together a large group of targeted consumers (I estimate Caucasian females between 14 and 30 years old who like country music) and inundate them with a targeted message—in this case, the messaging described the “coolness” of the Samsung Jack, and its text messaging/email/Internet features.
Not only is it a great way to interact with consumers thus strengthening the relationship with them (read: face time with potential buyers), but as a targeted consumer, I am more receptive to listening to their message...especially if there's no hard cost for me. While I do not intend to purchase a Samsung Jack any time soon, I like that Samsung and AT&T are not only reaching out to consumers and becoming more accessible in the marketplace, but also are trying a new strategy to reach consumers that I've never experienced before.
References:
http://www.samsungsummerkrush.com/atlanta.asp
http://www.dierks.com/
http://www.samsung.com/us/
http://pages.samsung.com/ca/jack/eng/
Sponsored by Samsung and AT&T, the show was scheduled to begin around 8pm. However, the show time came and went, and the only visible activities were the continuous looping of a Samsung Jack commercial on overhead monitors, and an on-stage screen that projected text messages of concert-goers (most to the tune of “I heart Dierks” and “Hi Mom!”). When the MC finally arrived on stage, he chose two random numbers who had texted the screen to win prizes—one person won a Samsung Jack, and the other a Summer Krush electric guitar. Then, Dierks took the stage, and put on a great show.
I think that offering a free concert series is a really innovative way for advertisers, in this case Samsung and AT&T, to bring together a large group of targeted consumers (I estimate Caucasian females between 14 and 30 years old who like country music) and inundate them with a targeted message—in this case, the messaging described the “coolness” of the Samsung Jack, and its text messaging/email/Internet features.
Not only is it a great way to interact with consumers thus strengthening the relationship with them (read: face time with potential buyers), but as a targeted consumer, I am more receptive to listening to their message...especially if there's no hard cost for me. While I do not intend to purchase a Samsung Jack any time soon, I like that Samsung and AT&T are not only reaching out to consumers and becoming more accessible in the marketplace, but also are trying a new strategy to reach consumers that I've never experienced before.
References:
http://www.samsungsummerkrush.com/atlanta.asp
http://www.dierks.com/
http://www.samsung.com/us/
http://pages.samsung.com/ca/jack/eng/
Tuesday, August 25, 2009
From Bear to Bull…Marketing Matters
Today, most companies are cutting back on spending in order to weather the current economic storm. Not only are companies reducing employment costs (leaving a 10.3% unemployment rate in Georgia, and 9.4% nationally when this entry was written), but they are also raising costs of products, while decreasing the overall value (read: The Incredible Shrinking Cereal Box). While companies should be focusing on communicating their brands’ competitive advantage in order to boost sales in the marketplace, they are consistently slashing marketing budgets—the primary means of understanding and communicating with target consumers.
While marketing identifies needs and ways to suffice those needs in a market, advertising can best be described as the voice of a brand in the market. Advertising’s goal is to not only increase brand awareness, but cultivate brand loyalty through product differentiation and corporate reputation (consumer trust). Advertising inspires consumers to make (and ideally repeat) an informed purchase decision, and consequently increased sales for a company.
By silencing their advertising voice by cutting marketing budgets, companies are only realizing a short term savings, and forfeiting future potential sales. Companies should capitalize on the opportunity to overcome competitors who have reduced advertising spending, but should spend their marketing dollars wisely—in opportunities with measurable ROI that reach consumers in meaningful ways via relevant messaging. According to a McGraw-Hill study, companies that increased advertised during the economic downturn in the 1980’s had increased sales when the economy improved. “Specifically, companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise” (When the Going Gets Tough, the Tough Don't Skimp on Their Ad Budgets).
With the song “Somebody’s Watching Me” playing and the catch line “It’s the money you could be saving with Geico,” Geico Insurance is surely taking advantage of the current consumer sentiment and flooding the marketplace with its messaging. According to the BrandZ Top 100 Most Valuable Global Brands produced by Millward Brown, their strategy is working. Geico jumped from #11 to #5 in the insurance category from 2008 to 2009.
By speaking with consumers now, companies are building relationships and reinforcing their brand in the minds of consumers. This conversation allows consumers to know and keep a brand top of mind when making a purchase decision, thus increasing the success and longevity of a brand, regardless of the economic climate.
References:
http://www.dol.state.ga.us/
http://money.cnn.com/2008/09/09/pf/food_downsizing/index.htm
http://businessonmain.msn.com/knowledgeexchange/articles/expert.aspx?cp-documentid=20587273&source=officeonline
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2101
http://www.youtube.com/watch?v=RsHXMxoCXeU
http://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2009-Report.pdf
While marketing identifies needs and ways to suffice those needs in a market, advertising can best be described as the voice of a brand in the market. Advertising’s goal is to not only increase brand awareness, but cultivate brand loyalty through product differentiation and corporate reputation (consumer trust). Advertising inspires consumers to make (and ideally repeat) an informed purchase decision, and consequently increased sales for a company.
By silencing their advertising voice by cutting marketing budgets, companies are only realizing a short term savings, and forfeiting future potential sales. Companies should capitalize on the opportunity to overcome competitors who have reduced advertising spending, but should spend their marketing dollars wisely—in opportunities with measurable ROI that reach consumers in meaningful ways via relevant messaging. According to a McGraw-Hill study, companies that increased advertised during the economic downturn in the 1980’s had increased sales when the economy improved. “Specifically, companies that advertised aggressively during the recession had sales 256% higher than those that did not continue to advertise” (When the Going Gets Tough, the Tough Don't Skimp on Their Ad Budgets).
With the song “Somebody’s Watching Me” playing and the catch line “It’s the money you could be saving with Geico,” Geico Insurance is surely taking advantage of the current consumer sentiment and flooding the marketplace with its messaging. According to the BrandZ Top 100 Most Valuable Global Brands produced by Millward Brown, their strategy is working. Geico jumped from #11 to #5 in the insurance category from 2008 to 2009.
By speaking with consumers now, companies are building relationships and reinforcing their brand in the minds of consumers. This conversation allows consumers to know and keep a brand top of mind when making a purchase decision, thus increasing the success and longevity of a brand, regardless of the economic climate.
References:
http://www.dol.state.ga.us/
http://money.cnn.com/2008/09/09/pf/food_downsizing/index.htm
http://businessonmain.msn.com/knowledgeexchange/articles/expert.aspx?cp-documentid=20587273&source=officeonline
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2101
http://www.youtube.com/watch?v=RsHXMxoCXeU
http://www.millwardbrown.com/Sites/Optimor/Media/Pdfs/en/BrandZ/BrandZ-2009-Report.pdf
Tuesday, August 18, 2009
Dream Deal or PR Nightmare: Michael Vick
Unless you’ve been living under a rock for the past two plus years, you are well aware of what’s going on with Michael Vick—a NFL quarterback who served a 23 month stint in prison after being convicted on federal dog fighting charges. Although Vick was recently signed to the Philadelphia Eagles, most fans (and advertisers) are still way of his character and future in the NFL.
Charges aside, the Eagles did obtain Vick for a steal of a deal: $1.5 million for the first year of play, with the option for $5 million for the 2010 season (which is negligible considering that Vick had a $37 million signing bonus when playing for the Atlanta Falcons). However, in regards to marketing dollars—what will fans’ attitudes be towards Vick, and consequently, how will advertisers and sponsors respond to the sentiment? According to a poll on PhiladelphiaEagles.com, 81% of those surveyed were pleased with the team’s decision to sign Vick to their roster. Vick jerseys are even selling on NFL.com for $79.99. Vick might be marketable after all…but what sponsor is going to take that chance and be the first to sign an endorsement deal with him? It’s inevitable.
Let’s face it—the NFL is full of convicted felons who are making more money that you and I both make combined times ten. Vick is no exception to this rule, and is his crime any worse than a professional football player charged with manslaughter, spousal abuse, or another felony? Those players continue to play, and are not judged too harshly by the scrupulous public eye. I think that Vick’s future success is going to depend heavily on how well Vick plays in 2009. Consumers, excluding PETA members, have short term memories and if Vick plays well this season, I think football fans will be willing to forgive and forget…especially if he can lead the team to a Super Bowl title.
Whatever happens with Vick’s return, I think people will be scrutinizing the Eagles this season. Vick is now an infamous spectacle. Accepted or shunned—people will either be rooting him on or waiting for him to receive his comeuppance. I hope it’s the latter.
References:
http://adage.com/article?article_id=138485
http://en.wikipedia.org/wiki/Michael_Vick
http://www.cnn.com/2007/US/law/09/25/vick/index.html
http://www.nfl.com/players/michaelvick/profile?id=VIC311467
Charges aside, the Eagles did obtain Vick for a steal of a deal: $1.5 million for the first year of play, with the option for $5 million for the 2010 season (which is negligible considering that Vick had a $37 million signing bonus when playing for the Atlanta Falcons). However, in regards to marketing dollars—what will fans’ attitudes be towards Vick, and consequently, how will advertisers and sponsors respond to the sentiment? According to a poll on PhiladelphiaEagles.com, 81% of those surveyed were pleased with the team’s decision to sign Vick to their roster. Vick jerseys are even selling on NFL.com for $79.99. Vick might be marketable after all…but what sponsor is going to take that chance and be the first to sign an endorsement deal with him? It’s inevitable.
Let’s face it—the NFL is full of convicted felons who are making more money that you and I both make combined times ten. Vick is no exception to this rule, and is his crime any worse than a professional football player charged with manslaughter, spousal abuse, or another felony? Those players continue to play, and are not judged too harshly by the scrupulous public eye. I think that Vick’s future success is going to depend heavily on how well Vick plays in 2009. Consumers, excluding PETA members, have short term memories and if Vick plays well this season, I think football fans will be willing to forgive and forget…especially if he can lead the team to a Super Bowl title.
Whatever happens with Vick’s return, I think people will be scrutinizing the Eagles this season. Vick is now an infamous spectacle. Accepted or shunned—people will either be rooting him on or waiting for him to receive his comeuppance. I hope it’s the latter.
References:
http://adage.com/article?article_id=138485
http://en.wikipedia.org/wiki/Michael_Vick
http://www.cnn.com/2007/US/law/09/25/vick/index.html
http://www.nfl.com/players/michaelvick/profile?id=VIC311467
Tuesday, August 11, 2009
Connecting to Everyone and Everything
I admit it. I’m addicted to Facebook…and it turns out, I’m not alone. Facebook has over 250 million members who spend at least twenty minutes on the site daily—uploading 850 million pictures and 8 million videos monthly. Facebook is unique because is users use their real names, real email addresses, and exhibit their real thoughts. In addition the site is one of the most popular website destinations and also of the largest traffic drivers to sites like Evite and Perez Hilton.
However, Facebook is proving to be quite problematic for Google. Not only is Facebook Google’s second largest competitor (following Bing) and is invested in by Microsoft, but Facebook’s content is unable to be indexed by Google (since Facebook uses peer recommendations as its main source of indexing information and not a scanning algorithm). Facebook also encourages its members to use Microsoft's search engine, Bing.
Unlike Google, Facebook is determined to keep online interactions relevant and personal—for example, with partner sites like Digg, users are able to see their friends’ news recommendations. Ads on Facebook are highly targeted as advertisers are able to target based on contextual, demographic, behavioral, and geographic information to increase relevancy and consequently demand. Users are able to give feedback with either a “thumbs up” or “thumbs down” to the ads so that they see, creating an even more targeted group of users viewing ads. However, with the availability of users’ personal information, advertisers walk a fine line between supplying ads that are targeted and relevant versus creepy and stalker-ish.
Brands have also capitalized on the connecting to users via Facebook. By creating “Fan Pages,” companies are able to supply “fans” with special/loyalty offers, contests, events, etc. to further reinforce the relationship that those connected users have with a product/company/brand as well as drive traffic to the brand’s website.
The more I learn about the way Facebook is reinventing the internet, the more impressed I become. While I’m still Google loyal for my search engine needs, I can’t help to notice the inventive and creative way that Facebook is connecting people to one another, brands, products, ideas, events, information, and causes in a personal way. Maybe Google has something to learn yet?
References:
http://www.wired.com/techbiz/it/magazine/17-07/ff_facebookwall
http://www.facebook.com/advertising/?src=pf
However, Facebook is proving to be quite problematic for Google. Not only is Facebook Google’s second largest competitor (following Bing) and is invested in by Microsoft, but Facebook’s content is unable to be indexed by Google (since Facebook uses peer recommendations as its main source of indexing information and not a scanning algorithm). Facebook also encourages its members to use Microsoft's search engine, Bing.Unlike Google, Facebook is determined to keep online interactions relevant and personal—for example, with partner sites like Digg, users are able to see their friends’ news recommendations. Ads on Facebook are highly targeted as advertisers are able to target based on contextual, demographic, behavioral, and geographic information to increase relevancy and consequently demand. Users are able to give feedback with either a “thumbs up” or “thumbs down” to the ads so that they see, creating an even more targeted group of users viewing ads. However, with the availability of users’ personal information, advertisers walk a fine line between supplying ads that are targeted and relevant versus creepy and stalker-ish.
Brands have also capitalized on the connecting to users via Facebook. By creating “Fan Pages,” companies are able to supply “fans” with special/loyalty offers, contests, events, etc. to further reinforce the relationship that those connected users have with a product/company/brand as well as drive traffic to the brand’s website.
The more I learn about the way Facebook is reinventing the internet, the more impressed I become. While I’m still Google loyal for my search engine needs, I can’t help to notice the inventive and creative way that Facebook is connecting people to one another, brands, products, ideas, events, information, and causes in a personal way. Maybe Google has something to learn yet?
References:
http://www.wired.com/techbiz/it/magazine/17-07/ff_facebookwall
http://www.facebook.com/advertising/?src=pf
Tuesday, August 4, 2009
Survival of the Fittest
This past week, the Technology Giant, Microsoft, merged with Yahoo to hopefully create a better competitor for Google. The merger will allow both companies to focus on what they do best: Yahoo will be able to better focus on selling media, while Microsoft will be better able to focus on developing and improving its online technologies. Bing, Microsoft’s new “decision” engine, will become Yahoo’s default search engine (giving Bing approximately 30% search market share), while Yahoo will benefit by being able to expose more users to ads by having access to Bing’s search data.
This merger between Microsoft and Yahoo is a strategic move in the struggle for market share against Google, and most likely, between one another (as Bing would surely overtake Yahoo’s market share in the long run). I am interested in seeing and using the ‘new and improved’ Yahoo search functionality, but I seem to be more excited to see what improvements Google will make in response to the merger.
This merger between Microsoft and Yahoo is a strategic move in the struggle for market share against Google, and most likely, between one another (as Bing would surely overtake Yahoo’s market share in the long run). I am interested in seeing and using the ‘new and improved’ Yahoo search functionality, but I seem to be more excited to see what improvements Google will make in response to the merger.
I was sent an interesting cartoon parodying the merger (see above). The cartoon, posted on Agency Spy, shows the little fish, Yahoo, being swallowed by a medium-sized fish, Microsoft, with the big fish, Google, in the background. Google is surely the big fish in the online market place, but I really don’t think that they have anything to worry about. With 60% of the market share (more than twice that of the Microsoft/Yahoo agreement), and loyal and satisfied users like me, I don’t think that this merger will produce their ideal predicted gain in market share—not that I don’t appreciate the attempt or imminent Google improvements.
It will be the survival of the fittest, and I think Google will remain the big fish in the online pond…for now at least.
References:
http://adage.com/digital/article?article_id=138177
http://adage.com/digital/article?article_id=138138
http://www.mediabistro.com/agencyspy/the_menu/today_on_the_menu_cartoonist_bob_eckstein_and_why_yahoomicrosoft_will_fail_122952.asp
It will be the survival of the fittest, and I think Google will remain the big fish in the online pond…for now at least.
References:
http://adage.com/digital/article?article_id=138177
http://adage.com/digital/article?article_id=138138
http://www.mediabistro.com/agencyspy/the_menu/today_on_the_menu_cartoonist_bob_eckstein_and_why_yahoomicrosoft_will_fail_122952.asp
Wednesday, July 29, 2009
Rising Cost of Chatter
I recently had a friend who works in the financial sector suggest and implement the voluntary corporate regulation of several products that could prove hazardous to the consumer finances. By doing that, positive buzz was generated for the company’s social responsibility to protect consumer investments. Several media stories ended up appearing in several newspapers (including the Wall Street Journal), cnbc.com, and even a mention on Mad Money with Jim Cramer. In fact, the company’s competitors are following suit and voluntarily regulating their product offerings based on the positive PR that my friend’s company received.
While the above case indicates several of the areas where the company was receiving free advertising, I can only begin to suspect what that positive PR would cost in advertising dollars. It’s got to be an enormous amount that I can’t even begin to fathom. However, what interested me was the unknown impact of word-of-mouth advertising generated from the media buzz. I was lucky enough to find an article on AdWeek.com that discussed the rise in WOM advertising spending and it isn’t cheap!
According to the study, WOM advertising has increased to $1.54 billion, and is expected to grow another 14.5% between 2008 and 2013. Advertisers are increasing spending for WOM campaigns because of the campaigns’ ability to effectively capture the attention of target audiences. Especially with popularity and use of social networking sites, especially YouTube and Twitter, WOM is an integral part of the overall marketing mix and indicates its importance in the future.
References:
http://www.adweek.com/aw/content_display/news/client/e3i98008be32bed3d6c6eca0b3667515188
While the above case indicates several of the areas where the company was receiving free advertising, I can only begin to suspect what that positive PR would cost in advertising dollars. It’s got to be an enormous amount that I can’t even begin to fathom. However, what interested me was the unknown impact of word-of-mouth advertising generated from the media buzz. I was lucky enough to find an article on AdWeek.com that discussed the rise in WOM advertising spending and it isn’t cheap!
According to the study, WOM advertising has increased to $1.54 billion, and is expected to grow another 14.5% between 2008 and 2013. Advertisers are increasing spending for WOM campaigns because of the campaigns’ ability to effectively capture the attention of target audiences. Especially with popularity and use of social networking sites, especially YouTube and Twitter, WOM is an integral part of the overall marketing mix and indicates its importance in the future.
References:
http://www.adweek.com/aw/content_display/news/client/e3i98008be32bed3d6c6eca0b3667515188
Tuesday, July 21, 2009
The Mobile Universe
Mediaweek.com recently reported on a study on mobile media. Conducted by Universal McCann, the study found “that one out of every seven minutes of media consumption today takes place via mobile devices.” Currently, there are an estimated 19 million mobile web users and that number is expected to grow 60% in the next two years.
According to the study, respondents used their mobile devices to fill downtime (95%), at work (82%), while shopping (81%), at home (80%), and commuting to work (65%). Mobile users are currently searching for maps/directions (73%), social networking sites (55%), and news/information (44%). In addition, users are following brands across advertising media (55%), and been driven mobile to and from other media (56% and 42% respectively). Mobile users are particularly aware of mobile advertising with users taking action on mobile ads (38%), sharing information (30%), and influencing a purchase decision (22%).
So, those response statistics are great, but what does all of this mean?
It means that the mobile channel is definitely one that advertisers should be aware of a concept it as a new and separate medium that is able to reach consumers on the go, wherever they go. One really interesting mobile application is from a Layar, Dutch company that layering database information onto a live video feed.
Just imagine the opportunities—consumers can actually visualize on their mobile device what’s around them and take action based on their location.
As consumers want to their mobile devices to do more, companies must adapt their advertising strategies to include mobile media. I think that the real challenge for advertisers is the integration of marketing efforts across mediums, and consumers' responses to such efforts.
References:
http://www.mediaweek.com/mw/content_display/news/media-agencies-research/e3i0c7b757cfdc666c21cec6dbce37d5151
http://greenmonk.net/i-wish-i-were-a-software-developer/
According to the study, respondents used their mobile devices to fill downtime (95%), at work (82%), while shopping (81%), at home (80%), and commuting to work (65%). Mobile users are currently searching for maps/directions (73%), social networking sites (55%), and news/information (44%). In addition, users are following brands across advertising media (55%), and been driven mobile to and from other media (56% and 42% respectively). Mobile users are particularly aware of mobile advertising with users taking action on mobile ads (38%), sharing information (30%), and influencing a purchase decision (22%).
So, those response statistics are great, but what does all of this mean?
It means that the mobile channel is definitely one that advertisers should be aware of a concept it as a new and separate medium that is able to reach consumers on the go, wherever they go. One really interesting mobile application is from a Layar, Dutch company that layering database information onto a live video feed.
Just imagine the opportunities—consumers can actually visualize on their mobile device what’s around them and take action based on their location.
As consumers want to their mobile devices to do more, companies must adapt their advertising strategies to include mobile media. I think that the real challenge for advertisers is the integration of marketing efforts across mediums, and consumers' responses to such efforts.
References:
http://www.mediaweek.com/mw/content_display/news/media-agencies-research/e3i0c7b757cfdc666c21cec6dbce37d5151
http://greenmonk.net/i-wish-i-were-a-software-developer/
Tuesday, July 14, 2009
The Future of the Internet is Clear
Lookout internet providers…there’s a new kid on the block, and it’s sure to be the wave of the future.
Clear is a new ISP that allows consumers the portability and flexibility to access the Internet wherever they go (up to a 12 square mile radius in Atlanta, Portland, and Las Vegas—other cities are coming soon) either at home or on the go. According to several reviews, it’s speedy, affordable, and an excellent alternative to traditional ISPs.
Clear operates on Wi-Max powered by Motorola, and I’m actually really surprised that this technology isn’t being exploited. Seriously—the thought of ALWAYS being able to get online is a tech/web junkie’s fantasy. To me, the thought of accessing Twitter, Facebook, email, news, my blog, and more anywhere in the city, is simply mouth watering.
Even more appetizing is the opportunity for advertisers—the more consumers that use Clear, the more ads that can be served to mobile devices, computers, PDAs, etc. Now, the challenge is to get this group of consumers to see, interact, and take the next steps with relevant advertisements based on their wireless Internet status.
Clear is definitely the way of the future and be available to consumers on a micro level at first (i.e. citywide or statewide) and will progress eventually to a macro level (i.e. national or worldwide) with internet access being at little or no cost to the ultimate consumer. With this macro-Internet, I think that online sessions should be sponsored by products—similar to the way online videos are today (for example, before logging onto the Internet, a consumer would see a 15-20 second pre-roll advertisement before continuing onto his/her desired homepage).
Whatever the future holds, I think that the future is Clear—wireless is the way of the future. Consumers are demanding that technology and information travel with them wherever they go, and Clear is the first real product that allows them to do that.
I look forward to trying Clear myself!
References:
http://www.youtube.com/watch?v=3NsLAQPplOU
http://www.wwpi.com/networking/networking/7233-clearwire-introduces-clear-4g-mobile-internet-service-in-atlanta
Clear is a new ISP that allows consumers the portability and flexibility to access the Internet wherever they go (up to a 12 square mile radius in Atlanta, Portland, and Las Vegas—other cities are coming soon) either at home or on the go. According to several reviews, it’s speedy, affordable, and an excellent alternative to traditional ISPs.
Clear operates on Wi-Max powered by Motorola, and I’m actually really surprised that this technology isn’t being exploited. Seriously—the thought of ALWAYS being able to get online is a tech/web junkie’s fantasy. To me, the thought of accessing Twitter, Facebook, email, news, my blog, and more anywhere in the city, is simply mouth watering.
Even more appetizing is the opportunity for advertisers—the more consumers that use Clear, the more ads that can be served to mobile devices, computers, PDAs, etc. Now, the challenge is to get this group of consumers to see, interact, and take the next steps with relevant advertisements based on their wireless Internet status.
Clear is definitely the way of the future and be available to consumers on a micro level at first (i.e. citywide or statewide) and will progress eventually to a macro level (i.e. national or worldwide) with internet access being at little or no cost to the ultimate consumer. With this macro-Internet, I think that online sessions should be sponsored by products—similar to the way online videos are today (for example, before logging onto the Internet, a consumer would see a 15-20 second pre-roll advertisement before continuing onto his/her desired homepage).
Whatever the future holds, I think that the future is Clear—wireless is the way of the future. Consumers are demanding that technology and information travel with them wherever they go, and Clear is the first real product that allows them to do that.
I look forward to trying Clear myself!
References:
http://www.youtube.com/watch?v=3NsLAQPplOU
http://www.wwpi.com/networking/networking/7233-clearwire-introduces-clear-4g-mobile-internet-service-in-atlanta
Saturday, July 11, 2009
Death of the Newspaper
It’s a big deal for advertisers—print is a disappearing medium, and literally in the case of newspapers a shrinking one. I was ready the newspaper at home the other day—and I noticed (1) how few pages were in the actual paper, and also how the actual page size has decreased in width. The width of the Atlanta Journal Constitution must be fifteen inches wide, when it probably was closer to twenty several years ago.
It’s been coming for a while—the death of the newspaper. While this traditional form of media still provides valid journalism, the Internet has revolutionized the industry. By the time newspapers are printed, the information is old—at minimum a full day! With the Internet—information is fresh. Blog articles can be written and published in a matter of minutes; with Twitter, information is virtually streaming live.
So what are advertisers to do with a budget set aside for print? I think it’s wise to invest in online advertising. Blogs, Twitter, Social Networking Sites (Facebook, MySpace, etc.) are the wave of the future and are sure to replace print in the near future for consumers to gain information (and for many consumers online media already does). In addition to the consumer shift to online, online advertising can prove ROI with tracking programs from EyeBlaster, DoubleClick, Google, etc.
References:
http://adage.com/mediaworks/article?article_id=136512
http://www.informationweek.com/blog/main/archives/2009/02/death_of_local.html;jsessionid=SD3TBG0MHNDOWQSNDLRSKHSCJUNN2JVN
It’s been coming for a while—the death of the newspaper. While this traditional form of media still provides valid journalism, the Internet has revolutionized the industry. By the time newspapers are printed, the information is old—at minimum a full day! With the Internet—information is fresh. Blog articles can be written and published in a matter of minutes; with Twitter, information is virtually streaming live.
So what are advertisers to do with a budget set aside for print? I think it’s wise to invest in online advertising. Blogs, Twitter, Social Networking Sites (Facebook, MySpace, etc.) are the wave of the future and are sure to replace print in the near future for consumers to gain information (and for many consumers online media already does). In addition to the consumer shift to online, online advertising can prove ROI with tracking programs from EyeBlaster, DoubleClick, Google, etc.
References:
http://adage.com/mediaworks/article?article_id=136512
http://www.informationweek.com/blog/main/archives/2009/02/death_of_local.html;jsessionid=SD3TBG0MHNDOWQSNDLRSKHSCJUNN2JVN
Tuesday, June 30, 2009
Infomercial Magic
We’ve all been there. It’s 2am. You can’t sleep and decide to turn on the TV to see what’s on—hoping for some late night breaking news or an elusive never before seen episode of Friends. However, as you surf the channels, you are suddenly captivated by a single line of spoken copy—“but wait, there’s more!”
We’ve seen them all over the place and at all times of the day. The infomercial. Whether it’s makeup, a video education DVD, or the latest workout craze, consumers—from the stay at home mom to the restless sleeper—are watching and waiting to see what more they can purchase for only three installments of $19.99 with of course the added bonus…or two or three (or more!) added bonuses depending on the offer.
While most advertisers think in terms of 30-60 second television commercials, the infomercial takes it to a new level with a usually 30 minute sales pitching show aimed at captivating an audience and inspiring them to get off the couch (or out of bed), call the 1-800 number, and make a purchase without ever sampling a product or service on their own. Infomercials, if executed properly, will leave no questions in the mind of the consumers as to the benefits of the product/service, and why they should purchase.
I am guilty of making an infomercial purchase—I am the proud owner of a Magic Bullet—a mini-blender that can literally make a variety of meals in ten seconds or less. Every time I’m channel surfing and I flip by the Magic Bullet infomercial, I am instantly captivated and watch the rest of the program. The problem with the Magic Bullet—and please note that this is my opinion only—it’s not a good product! The infomercial led me to believe that in a short amount of time, I could create a gourmet meal, a tropical beverage, and a delicious desert with little clean up effort. However, everything that I’ve tried (1) seems to not taste very good, (2) does not look as appetizing as the infomercial, (3) is not as easy to clean up, and (4) takes a lot longer than described in the recipe. But yet, whenever I see the Magic Bullet infomercial, my love for the product is reignited, and I am compelled to try another recipe.
My personal experiences with the Magic Bullet show the power of the infomercial. Regardless of if the product works or not, the infomercial left no question in my mind that I could make all sorts of delightful meals without ever trying the product, and even re-watching the infomercial continues to build relationship with and my want to use the product.
Rest in peace, Billy Mays--THE Pitchman.
References:
http://www.cpodirect.com/world_info.html
http://www.cnn.com/2009/SHOWBIZ/TV/06/29/mays.profile/index.html
http://www.buythebullet.com/
http://www.youtube.com/watch?v=RtpKjgwi4Sc
We’ve seen them all over the place and at all times of the day. The infomercial. Whether it’s makeup, a video education DVD, or the latest workout craze, consumers—from the stay at home mom to the restless sleeper—are watching and waiting to see what more they can purchase for only three installments of $19.99 with of course the added bonus…or two or three (or more!) added bonuses depending on the offer.
While most advertisers think in terms of 30-60 second television commercials, the infomercial takes it to a new level with a usually 30 minute sales pitching show aimed at captivating an audience and inspiring them to get off the couch (or out of bed), call the 1-800 number, and make a purchase without ever sampling a product or service on their own. Infomercials, if executed properly, will leave no questions in the mind of the consumers as to the benefits of the product/service, and why they should purchase.
I am guilty of making an infomercial purchase—I am the proud owner of a Magic Bullet—a mini-blender that can literally make a variety of meals in ten seconds or less. Every time I’m channel surfing and I flip by the Magic Bullet infomercial, I am instantly captivated and watch the rest of the program. The problem with the Magic Bullet—and please note that this is my opinion only—it’s not a good product! The infomercial led me to believe that in a short amount of time, I could create a gourmet meal, a tropical beverage, and a delicious desert with little clean up effort. However, everything that I’ve tried (1) seems to not taste very good, (2) does not look as appetizing as the infomercial, (3) is not as easy to clean up, and (4) takes a lot longer than described in the recipe. But yet, whenever I see the Magic Bullet infomercial, my love for the product is reignited, and I am compelled to try another recipe.
My personal experiences with the Magic Bullet show the power of the infomercial. Regardless of if the product works or not, the infomercial left no question in my mind that I could make all sorts of delightful meals without ever trying the product, and even re-watching the infomercial continues to build relationship with and my want to use the product.
Rest in peace, Billy Mays--THE Pitchman.
References:
http://www.cpodirect.com/world_info.html
http://www.cnn.com/2009/SHOWBIZ/TV/06/29/mays.profile/index.html
http://www.buythebullet.com/
http://www.youtube.com/watch?v=RtpKjgwi4Sc
Tuesday, June 23, 2009
Google Insights
Like many, my homepage is set to Google.com (or rather iGoogle). On a regular day, I probably make about fifty or more Google searches for a variety of purposes—checking traffic, news, weather…the list goes on and on. However, how are my searches, as a consumer, being tracked? The answer (in Google at least) is in a tool called Google Insights.
According to a FastCompany article, “Google Insights is a very useful online tool allowing you to get search volume information about any topic.” Based on the assumption "where there is search there is interest.” The site is able to break down information based on keyword, location (country, state, metro area, etc.), related searches, and also supplies relevant media stories that might explains spikes in searches.
Google Insights is a valuable tool for marketers—especially when looking for looking for keywords for paid search advertising. For example: I put in the terms “Internet” and “Media” and the data seems to somewhat flow together—indicating that people who are looking for the term Media are also looking for the term Internet.
Search marketers need to take the information gleaned from Google Insights with a grain of salt. While Google Insights shows us terms and keywords that people are searching for they give us a hypothetical correlation.
References:
http://www.fastcompany.com/blog/chris-dannen/techwatch/what-are-googlers-googling
http://www.millionclues.com/problogging/blog-tips/find-popular-search-keywords-trends
http://www.google.com/insights/search/#
According to a FastCompany article, “Google Insights is a very useful online tool allowing you to get search volume information about any topic.” Based on the assumption "where there is search there is interest.” The site is able to break down information based on keyword, location (country, state, metro area, etc.), related searches, and also supplies relevant media stories that might explains spikes in searches.
Google Insights is a valuable tool for marketers—especially when looking for looking for keywords for paid search advertising. For example: I put in the terms “Internet” and “Media” and the data seems to somewhat flow together—indicating that people who are looking for the term Media are also looking for the term Internet.
Search marketers need to take the information gleaned from Google Insights with a grain of salt. While Google Insights shows us terms and keywords that people are searching for they give us a hypothetical correlation.
References:
http://www.fastcompany.com/blog/chris-dannen/techwatch/what-are-googlers-googling
http://www.millionclues.com/problogging/blog-tips/find-popular-search-keywords-trends
http://www.google.com/insights/search/#
Tuesday, June 16, 2009
There's No Such Thing as a Free Envelope
I found an interesting article about a group of innovators in Holland who are offering free postage-paid envelopes to the public. The envelopes and postage are free because there are advertisements printed on the back—a unique way for advertisers to reach a variety of different consumers through direct mail. With the rising cost of direct mail this is a highly attractive offer for consumers to partake in, and distribute ads within the consumers’ own network of family, friends, and other contacts.
I think that this is a great concept because it allows advertisers to send messages in a way that is otherwise unbranded. By branding the envelopes, advertisers are able to attach a cost to each direct mail message sent (i.e. the cost of printing the envelope plus the cost of postage).
Adversely, by using this method, advertisers have no control over to whom their advertisements are being served (and therefore not knowing the overall impact of advertising dollars spent) and consequently turning over distribution of the brand to consumers. Thusly, advertisements are not targeted to specific audiences, but instead to the broad category of consumers who receive mail.
Will this concept catch on in the US? Well, it has in a way with credit card companies which include an addressed envelope with advertisement on the back flap--however, these envelopes do not contain free postage. We'll see if this trend of pre-paid envelopes crosses the Atlantic.
References:
http://www.brandfreak.com/2009/06/holland-experiments-with-envelope-ads-that-pay-for-the-postage.html
I think that this is a great concept because it allows advertisers to send messages in a way that is otherwise unbranded. By branding the envelopes, advertisers are able to attach a cost to each direct mail message sent (i.e. the cost of printing the envelope plus the cost of postage).
Adversely, by using this method, advertisers have no control over to whom their advertisements are being served (and therefore not knowing the overall impact of advertising dollars spent) and consequently turning over distribution of the brand to consumers. Thusly, advertisements are not targeted to specific audiences, but instead to the broad category of consumers who receive mail.
Will this concept catch on in the US? Well, it has in a way with credit card companies which include an addressed envelope with advertisement on the back flap--however, these envelopes do not contain free postage. We'll see if this trend of pre-paid envelopes crosses the Atlantic.
References:
http://www.brandfreak.com/2009/06/holland-experiments-with-envelope-ads-that-pay-for-the-postage.html
Tuesday, June 9, 2009
Bing...Worth the Hype?
Last week, Microsoft launched their new “Decision Engine,” Bing, which has produced quite a bit of buzz in the online market place and is rumored to be the search engine of the future. Bing promises to help searchers solve problems faster by generating a list of query results by automatically grouping search results. Here are some of their televisions spots:
Cell Phone: http://www.youtube.com/watch?v=6jMt6saTqq4
Hawaii: http://www.youtube.com/watch?v=ZSkaTcjDIMk
Bing is boosting Microsoft’s market share driven by the above commercials, radio spots, and several sponsorships (including Hulu.com).
Although I like Bing, I don’t find it all that much different from any of the other search engines—Google and Yahoo. I like the layout of Bing—the way it lists related and recent searches on the search page, but unfortunately, I don’t think Bing is worth all of the hype—or at least not any more hype than another of the other search engines. It just provides another way for users to access information that’s already out there.
I encourage you to check Bing out for yourself and give it a try. Although I’m not quite ready to change my preferred search engine to Bing, I’m looking forward to new search innovations and a better way to glean information from the Net.
References:
http://www.adweek.com/aw/content_display/news/digital/e3i6ec2932c7d29e99230c700de963b715b
Tuesday, June 2, 2009
Email Marketing…Advertising Made Easy with ROI
I used to work at an email marketing agency with our primary delivery software to be hosted with Bronto Software (www.bronto.com)—a highly intuitive email composing, launching, and reporting tool designed to track an email recipient’s behavior.
Email software vendors (like Bronto), allowed me to segment consumers into groups (based geographic location, purchase stage, interests, etc.), and send them a message encouraging them to take the next step in the buying cycle. Based on the purpose of each email launch, I would personalize the email’s hyperlinks, copy, and images to match the interests of the consumer (based on information gleaned from client records). After deployment, we were able to see what consumers opened the messages, clicked on hyperlinks, or responded to survey questions. From this information I could recommend to my clients who consumers showed interest in their services, and the client could continue to target these customers with email and other forms of media.
Email is also an excellent avenue for performing tests. By randomly segmenting the audiences, I could launch several different messages, images, subject lines, calls to action, launch times, etc, then watch the results to see which test had the most successful response rate. By learning what worked in these tests—and arguably more importantly, what didn’t work—allowed me to better inform my clients what messages, images, etc. to use or not use, and then exploit the positive responses in future marketing campaigns to further enhance response rates.
So why is email important in the marketing mix? In this digital age, email marketing allows us to send targeted messages to customers in a cost effective way with proven ROI. With compliance to the CAN-SPAM Act of 2003, advertisers can reach out to a variety of consumers to introduce new products and services, and thusly cultivating the relationship with those consumers…directly from the comfort of the consumers’ own inboxes.
References:
http://en.wikipedia.org/wiki/CAN-SPAM_Act_of_2003
http://www.bronto.com/
Email software vendors (like Bronto), allowed me to segment consumers into groups (based geographic location, purchase stage, interests, etc.), and send them a message encouraging them to take the next step in the buying cycle. Based on the purpose of each email launch, I would personalize the email’s hyperlinks, copy, and images to match the interests of the consumer (based on information gleaned from client records). After deployment, we were able to see what consumers opened the messages, clicked on hyperlinks, or responded to survey questions. From this information I could recommend to my clients who consumers showed interest in their services, and the client could continue to target these customers with email and other forms of media.
Email is also an excellent avenue for performing tests. By randomly segmenting the audiences, I could launch several different messages, images, subject lines, calls to action, launch times, etc, then watch the results to see which test had the most successful response rate. By learning what worked in these tests—and arguably more importantly, what didn’t work—allowed me to better inform my clients what messages, images, etc. to use or not use, and then exploit the positive responses in future marketing campaigns to further enhance response rates.
So why is email important in the marketing mix? In this digital age, email marketing allows us to send targeted messages to customers in a cost effective way with proven ROI. With compliance to the CAN-SPAM Act of 2003, advertisers can reach out to a variety of consumers to introduce new products and services, and thusly cultivating the relationship with those consumers…directly from the comfort of the consumers’ own inboxes.
References:
http://en.wikipedia.org/wiki/CAN-SPAM_Act_of_2003
http://www.bronto.com/
Tuesday, May 26, 2009
The Vendor-Client Relationship
Earlier this week I received one of the funniest video forwards from a coworker and was instantly compelled to voice my opinion on the client-advertiser relationship. Here’s the clip:
This video, called the The Vendor Client relationship - in real world situations, shows the cursed relationship of advertisers with their clients in an amusing way. Clients usually want more than what they are paying for, and advertisers, often do not want to perform services without being compensated—a simple concept that most (if not all) would agree with. But in the world of advertising, we often have to do some pro-bono work to stay on the client’s good side to retain business, and sometimes also to showcase other services that we can provide to increase business.
However, the fact still remains—in order to produce captivating messages for a client’s customers, clients must understand that an agency is only as good as the people at the agency who produce and manage their messaging.
Advice for Clients--
Compensate your agency, and you'll be better able to build your brand.
Advice for Advertisers--
Produce good work to better build your clients' brands and they will compensate you for your efforts.
This video, called the The Vendor Client relationship - in real world situations, shows the cursed relationship of advertisers with their clients in an amusing way. Clients usually want more than what they are paying for, and advertisers, often do not want to perform services without being compensated—a simple concept that most (if not all) would agree with. But in the world of advertising, we often have to do some pro-bono work to stay on the client’s good side to retain business, and sometimes also to showcase other services that we can provide to increase business.
However, the fact still remains—in order to produce captivating messages for a client’s customers, clients must understand that an agency is only as good as the people at the agency who produce and manage their messaging.
Advice for Clients--
Compensate your agency, and you'll be better able to build your brand.
Advice for Advertisers--
Produce good work to better build your clients' brands and they will compensate you for your efforts.
Tuesday, May 19, 2009
'Why We Should Listen' to Twitter
So by know, you should have heard about, if not experienced on your own, Twitter.com. According to the Website, “Twitter is a service for friends, family, and co–workers to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?”
Like many people out there, I joined Twitter just to see what it was all about (shameless self promotion – follow me on Twitter @eckramer). I think that although Twitter answers the “What are you doing?” question, I think it also raises the question of why should we, as advertisers, listen?
Twitter is a massive echo chamber allowing us real time insight into consumers’ attitudes, opinions, and experiences with our products and services. For example, recently, I purchased a vacation package through a popular online travel agency, and was really upset when I was charged $30 more for my trip than my friend who purchased the same vacation package four minutes after I did. I logged a complaint ticket with customer support, and after being told that I should be happy with the deal I got through their agency, I informed the very polite customer service associate that I would (1) not use their company again (which I will not), and (2) I would take my complaint to the Web to inform others of my overall dissatisfaction. Once of the first places I voiced my frustration was on Twitter.
In an ideal “Twitterverse,” a representative from the online travel agency would have been monitoring either their hash tag or company name, and would have contacted me to settle my dispute via Twitter--thusly quelling my negative WOM advertising campaign. However, I was never contact by the company, and I can’t even begin to tell you how many of my friends contacted me to ask me about my poor personal experience with this company. They’ve lost not only me as a customer, but also several of the people with whom I am associated.
My personal example above indicates how important it is for companies to keep their pulse on consumer feelings and experiences. My poor personal experience has most likely led to thousands of dollars of lost revenue with that particular travel agency—but has also opened the door for another travel agency to woo my business and more importantly, more recommendation. This example is true across other products and services—companies need to capitalize on what Twitter can tell us, and that’s really why we, as advertisers, should listen.
References:
http://www.twitter.com/
http://www.slideshare.net/jwtcet/why-twitter-for-advertisers
Tuesday, May 12, 2009
Fwd: Viral Videos
I was forwarded an email a couple of days ago containing a viral video, and I think it’s a good time to discuss them as this is a great way for advertisers to promote products through WOM. With the innovations of Twitter and YouTube, viral videos are able to reach a wide array of audiences in usually humorous ways. While a lot of viral videos are shot my amateurs (like the Numa Numa Guy video), I’d like to focus on actual videos that promote products.
With that, here is the video that I received via email:
This video is being used to promote A&E’s new reality show Hammertime, starring MC Hammer and his family.
Some other viral videos spotlighting products are—
Cadbury Eyebrows
Durex Get It On
Yes We Can Barack Obama Video
The list goes on and on, but the outcome of these videos is evident--consumers watch them and send them along to friends, family, and colleagues. I think that advertisers need to take risks with these videos as it seems as those that are the most humorous videos are the most remembered.
References:
http://www.youtube.com/watch?v=TVblWq3tDwY
http://www.youtube.com/watch?v=t5sTBrs4fhQ
http://www.youtube.com/watch?v=jjXyqcx-mYY
http://www.youtube.com/watch?v=AwzN4633mpI
With that, here is the video that I received via email:
This video is being used to promote A&E’s new reality show Hammertime, starring MC Hammer and his family.
Some other viral videos spotlighting products are—
Cadbury Eyebrows
Durex Get It On
Yes We Can Barack Obama Video
The list goes on and on, but the outcome of these videos is evident--consumers watch them and send them along to friends, family, and colleagues. I think that advertisers need to take risks with these videos as it seems as those that are the most humorous videos are the most remembered.
References:
http://www.youtube.com/watch?v=TVblWq3tDwY
http://www.youtube.com/watch?v=t5sTBrs4fhQ
http://www.youtube.com/watch?v=jjXyqcx-mYY
http://www.youtube.com/watch?v=AwzN4633mpI
Tuesday, May 5, 2009
Brand Z Top 100 Most Valuable Global Brands Summary
As you’re well aware, brands are vital to corporate success. Brands are commodity that create sustainable competitive advantage, drive demand and market share, and help to improve margins by leveraging premium pricing and supplier time. To better understand the importance of branding and also focus attention on some of the world’s most valuable brands, I attended the Brand Z Top 100 Most Valuable Global Brands webinar last week.
By combining financial and consumer research data, the Brand Z Top 100 list is an annual ranking of the world's 100 most powerful brands and is considered the most comprehensive brand valuation report in the world. This ranking allows us to better understand consumer behaviors and brand perceptions, and how to make more informed decisions based on this information.
Even with the economic downtown in 2008, the resiliency of the Top 100 brand thrived – growing in overall value by nearly 2% or $2 trillion from 2007. Consumers have developed coping strategies and purchasing “brands that contribute to their pleasure, quality, purpose, and security of their lives.” Nine of the top 10 brands, and 85 of the top 100 brands remained ranked from the previous year. Of the 17 categories, 11 grew in value. Here is a list of the top three brands and their value ($M) in each category:
Apparel: H&M Clothing (12,061), Nike (11,999), and Zara (8,609)
Beer: Bud Light (6,655), Budweiser (6,637), and Heineken (5,063)
Bottled Water: Aquafina (810), Evian (750), and Perrier (689)
Cars: Toyota (29,907), BMW (23,948), and Porsche (17,467)
Coffee: Nescafe (5,648), Nesspresso (2,451), and Folgers (1,331)
Fast Food: McDonalds (66,575), SUBWAY (10,997), and KFC (6,721)
Financial Institutions: ICBC (38,056), China Construction Base (22,811), and Bank of China (21,192)
Gaming Consoles: Nintendo DS (9,659), Nintendo Wii (8,256), and Microsoft Xbox 360 (4,581)
Insurance: State Farm (6,922), Allianz (5,669), and AXA (3,701)
Luxury: Louis Vuitton (19,395), Hermes (7,862), and Gucci (7,468)
Mobile Operators: China Mobile (61,283), Vodafone (53,727), and AT&T (20,059)
Motor Fuel: BP (5,936), Shell (4,151), and Mobile (1,525)
Personal Care: Gillette (22,919), L’Oreal (14,991), and Colgate (12,396)
Retail: Wal-Mart (41,083), Tesco (22,938), and Amazon (21,294)
Soft Drinks: Coca-Cola (53,315), Coke (Diets, Lights, and Zero) (14,310), and Pepsi (12,761)
Spirits: Smirnoff (5,201), Bacardi (3,519), and Johnnie Walker (2,571)
Technology: Google (100,039), Microsoft (76,249), and IBM (66,622)
I was most surprised by the by the categories of Beer, Cars, and Coffee. The value of beer increased by 15%, with Bud Light surpassing Budweiser in brand value and thus reflecting the consumer shift to light beers (possibly as a result of increasing health concerns). Overall, the Cars category dropped by 22% -- every carmaker on the list dropped in value with the largest brand value drops being Chevrolet at 60% and Ford at 46%. Lastly, Insurance, which has been heavily scrutinized by the media, has declined by an astounding 48%.
For a complete list of the brands, and their category rank, please visit http://thestorewpp.wtms.com/report.pdf.
Tuesday, April 28, 2009
Advertising White Noise – An Experiment
Yesterday, I was inspired by a link that appeared on a friend’s Facebook wall a few weeks ago. Click here to see the experiment (unless you speak German, click below the picture for the English version of the article).
In 2005, Neubaugasse, Vienna participated in an art exhibit called “Delete!” which essentially “deleted” media (“signs, slogans, pictograms, company names and logos“) for a period of two weeks. Advertisements were covered with (what looks like) yellow foil, and causes consumers to examine their everyday world without advertising, and shows us how many messages we are really exposed to on a daily basis. I highly recommend looking through the picture deck on the right side of the link.
According to a excerpt from Marketing Without Advertising by Michael Phillips & Salli Rasberry (available online at the link listed below), “236 billion will be spent this year in the United States on print, radio, online, and broadcast advertising” to cause the average American to view in excess of 5,000 advertising messages daily.
As a mini experiment, I tried to count every single advertisement that I came into contact with. My rules were the same object could not be counted twice (for example, I could not count my cell phone more than one time just because I looked at it multiple times), I could only count messages that were clearly branded (i.e. I only counted the brands of the clothes that I have on, and not count of all of the other brand tags of the clothes in my closet because I didn’t necessarily see them), and it had to be an official logo or advertisement (my seeing a handwritten note about calling a client did not count, while seeing a client’s display ad counted). Needless to say, I decided not to wear my glasses to work, made sure that my pop-up blocker was on, and tried to avoid CNN.com, Pandora, and Facebook.
Before I even got out of bed yesterday morning, I had counted 37 branded items, and by the time I left the house I had counted 74. For safety reasons, I decided not to count advertisements while driving to work, but was already up to 236 visible ads by 9:30 this morning (I get to work at 9am). By 1pm, that number had increased to 693—and these are counting ads that I am cognizant of! I can’t imagine if I really had the time to actually look around and listen for various types of advertisements and count exactly how many messages I’m exposed to regularly.
There are so many different ways that advertisers are able to reach consumers, that a lot of the time the message is lost in advertising white noise. Advertisers need new and exciting ways to cut through all of the other marketing messages to reach consumers and make them remember their brand above all others using a variety of traditional and atypical methods—display, search, print, broadcast as well as word of mouth (including social networking), charitable contributions, microsites/widgets, and other innovative and cool ways for advertisers to touch consumers in a way that will cause consumers to remember their brand, and have that brand be top of mind when they go to make a purchase.
At the end of the day, I had counted 1,492 ads. An experiment worth trying in your own life.
References:
http://www.steinbrener-dempf.com/index.php?article_id=5
Marketing Without Advertising by Michael Phillips & Salli Rasberry
http://www.nolo.com/product.cfm/objectID/5E5BFB9E-A33A-43DB-9D162A6460AA646A/sampleChapter/5/111/277/#summary
In 2005, Neubaugasse, Vienna participated in an art exhibit called “Delete!” which essentially “deleted” media (“signs, slogans, pictograms, company names and logos“) for a period of two weeks. Advertisements were covered with (what looks like) yellow foil, and causes consumers to examine their everyday world without advertising, and shows us how many messages we are really exposed to on a daily basis. I highly recommend looking through the picture deck on the right side of the link.
According to a excerpt from Marketing Without Advertising by Michael Phillips & Salli Rasberry (available online at the link listed below), “236 billion will be spent this year in the United States on print, radio, online, and broadcast advertising” to cause the average American to view in excess of 5,000 advertising messages daily.
As a mini experiment, I tried to count every single advertisement that I came into contact with. My rules were the same object could not be counted twice (for example, I could not count my cell phone more than one time just because I looked at it multiple times), I could only count messages that were clearly branded (i.e. I only counted the brands of the clothes that I have on, and not count of all of the other brand tags of the clothes in my closet because I didn’t necessarily see them), and it had to be an official logo or advertisement (my seeing a handwritten note about calling a client did not count, while seeing a client’s display ad counted). Needless to say, I decided not to wear my glasses to work, made sure that my pop-up blocker was on, and tried to avoid CNN.com, Pandora, and Facebook.
Before I even got out of bed yesterday morning, I had counted 37 branded items, and by the time I left the house I had counted 74. For safety reasons, I decided not to count advertisements while driving to work, but was already up to 236 visible ads by 9:30 this morning (I get to work at 9am). By 1pm, that number had increased to 693—and these are counting ads that I am cognizant of! I can’t imagine if I really had the time to actually look around and listen for various types of advertisements and count exactly how many messages I’m exposed to regularly.
There are so many different ways that advertisers are able to reach consumers, that a lot of the time the message is lost in advertising white noise. Advertisers need new and exciting ways to cut through all of the other marketing messages to reach consumers and make them remember their brand above all others using a variety of traditional and atypical methods—display, search, print, broadcast as well as word of mouth (including social networking), charitable contributions, microsites/widgets, and other innovative and cool ways for advertisers to touch consumers in a way that will cause consumers to remember their brand, and have that brand be top of mind when they go to make a purchase.
At the end of the day, I had counted 1,492 ads. An experiment worth trying in your own life.
References:
http://www.steinbrener-dempf.com/index.php?article_id=5
Marketing Without Advertising by Michael Phillips & Salli Rasberry
http://www.nolo.com/product.cfm/objectID/5E5BFB9E-A33A-43DB-9D162A6460AA646A/sampleChapter/5/111/277/#summary
Tuesday, April 21, 2009
Mainstream Green
Tomorrow, April 22, is Earth Day—a day promoting awareness and change for environmental issues including global warming, pollution, wildlife, alternative energy, going green, etc. With the arrival of Earth Day, I am inspired to discuss the consumer movement (and reactions of advertisers) towards going green.
So why are consumers going green?
About 35 million Americans are going green and willing to pay 5 to 10% higher prices for eco-friendly products, and thus defying recessionary trends – meaning potential profits for those companies who are willing to and can meet consumer demand. Labels and ads are focus on words like ‘all natural,’ ‘eco-friendly,’ and ‘organic’ – buzz words meant to attract consumers’ desire for environmentally friendly products.
Havas CEO Fernando Rodes Vila says that “Companies who are committed and respect the environment will be favored by consumers…And in most markets, consumers are ready to reward companies who do right by the environment”
Several companies have already taken steps towards becoming green. FedEx, UPS, and Coca-Cola are all converting their delivery fleets to hybrid vehicles. Cargill and SC Johnson are using trash/waste to power factories to make environmentally friendly products. Car makers are turning towards production of hybrid and alternative energy vehicles. In my own office, employees are asked to power off computers and lights at the end of the day, recycle paper, and conserve water. Here are a few examples of some other companies exploiting their own green initiatives:
General Electric – Ecomagination
http://ge.ecomagination.com/site/index.html#ads
Chevron – Power of Human Energy
http://www.chevron.com/about/advertising/
Apple MacBook
While companies are capitalizing on inflated prices of green products, they should also note that their point of differentiation will fade as consumers demand more and more environmentally friendly products at a lesser price. However (at least time being), companies and advertisers should exploit this consumer trend, which will most likely prove profitable for companies, consumers, and especially the environment.
References:
http://en.wikipedia.org/wiki/Earth_Day
http://adage.com/article?article_id=136091
http://www.usatoday.com/money/advertising/2007-06-22-cannes-green-usat_N.htm
http://adage.com/mediaworks/article?article_id=136116
http://www.csrwire.com/News/1782.html
http://www.fastcompany.com/blog/fast-company-staff/fast-company-blog/sustainability-green-age-advertising
http://www.etftrends.com/2009/01/are-consumers-serious-about-going-green-etfs.html
http://www.msnbc.msn.com/id/12040418/
Weather Channel (TV Show)
So why are consumers going green?
About 35 million Americans are going green and willing to pay 5 to 10% higher prices for eco-friendly products, and thus defying recessionary trends – meaning potential profits for those companies who are willing to and can meet consumer demand. Labels and ads are focus on words like ‘all natural,’ ‘eco-friendly,’ and ‘organic’ – buzz words meant to attract consumers’ desire for environmentally friendly products.
Havas CEO Fernando Rodes Vila says that “Companies who are committed and respect the environment will be favored by consumers…And in most markets, consumers are ready to reward companies who do right by the environment”
Several companies have already taken steps towards becoming green. FedEx, UPS, and Coca-Cola are all converting their delivery fleets to hybrid vehicles. Cargill and SC Johnson are using trash/waste to power factories to make environmentally friendly products. Car makers are turning towards production of hybrid and alternative energy vehicles. In my own office, employees are asked to power off computers and lights at the end of the day, recycle paper, and conserve water. Here are a few examples of some other companies exploiting their own green initiatives:
General Electric – Ecomagination
http://ge.ecomagination.com/site/index.html#ads
Chevron – Power of Human Energy
http://www.chevron.com/about/advertising/
Apple MacBook
While companies are capitalizing on inflated prices of green products, they should also note that their point of differentiation will fade as consumers demand more and more environmentally friendly products at a lesser price. However (at least time being), companies and advertisers should exploit this consumer trend, which will most likely prove profitable for companies, consumers, and especially the environment.
References:
http://en.wikipedia.org/wiki/Earth_Day
http://adage.com/article?article_id=136091
http://www.usatoday.com/money/advertising/2007-06-22-cannes-green-usat_N.htm
http://adage.com/mediaworks/article?article_id=136116
http://www.csrwire.com/News/1782.html
http://www.fastcompany.com/blog/fast-company-staff/fast-company-blog/sustainability-green-age-advertising
http://www.etftrends.com/2009/01/are-consumers-serious-about-going-green-etfs.html
http://www.msnbc.msn.com/id/12040418/
Weather Channel (TV Show)
Tuesday, April 14, 2009
Don’t Blame Advertising for the Current Economic Crisis
I just read an article on Adweek entitled "Let's Blame Advertising" by Mark Dolliver, and was intrigued enough to voice my opinion on the by the number of people who are blaming advertisers for the downfall of the American economy.
According to the article, Adweek Media surveyed over two thousand adults, and an astounding 66% of the sample (7% “complete responsibility,” 26% “great deal of responsibility,” and 33% “some responsibility”) felt that advertisers were responsible for causing people to buy items that they couldn’t manage to pay for.
But, is advertising really to blame for the state of the economy?
This article reminded me of a business philosophy class discussion at Georgia State University. The class was asked to assess the morality of targeting advertising a form beer with high alcohol content to minorities in poverty-stricken, alcohol and drug infested, violent neighborhoods. It was argued that promotion of alcohol would encourage the destructive nature of the community. While I don’t think that the product will improve any of the ailments of the community, I would have to argue that the community demands that the beer (and other similarly damaging products such as hard liquor, cigarettes, condoms, etc.) be available, and advertisers have not only the right, but the responsibility to promote the product to meet that demand. If beer was not offered in the marketplace, wouldn’t consumers just go elsewhere to suffice that demand? Maybe purchase something far more harmful than beer—drugs, weapons, or other products that are far more damaging to society’s welfare.
In reference to the original Adweek article, consumers – and not advertisers – must be blamed for their own purchase decisions and thusly the downfall of the economy. Advertisers are exhibiting products that are available to the marketplace and in demand by consumers, but consumers are the ultimate decision makers and must accept responsibility for their own purchase decisions. Although the repercussions are immense and long lasting, I am hopeful that the current economic crisis will encourage consumers to learn to better manage their buying decisions.
According to the article, Adweek Media surveyed over two thousand adults, and an astounding 66% of the sample (7% “complete responsibility,” 26% “great deal of responsibility,” and 33% “some responsibility”) felt that advertisers were responsible for causing people to buy items that they couldn’t manage to pay for.
But, is advertising really to blame for the state of the economy?
This article reminded me of a business philosophy class discussion at Georgia State University. The class was asked to assess the morality of targeting advertising a form beer with high alcohol content to minorities in poverty-stricken, alcohol and drug infested, violent neighborhoods. It was argued that promotion of alcohol would encourage the destructive nature of the community. While I don’t think that the product will improve any of the ailments of the community, I would have to argue that the community demands that the beer (and other similarly damaging products such as hard liquor, cigarettes, condoms, etc.) be available, and advertisers have not only the right, but the responsibility to promote the product to meet that demand. If beer was not offered in the marketplace, wouldn’t consumers just go elsewhere to suffice that demand? Maybe purchase something far more harmful than beer—drugs, weapons, or other products that are far more damaging to society’s welfare.
In reference to the original Adweek article, consumers – and not advertisers – must be blamed for their own purchase decisions and thusly the downfall of the economy. Advertisers are exhibiting products that are available to the marketplace and in demand by consumers, but consumers are the ultimate decision makers and must accept responsibility for their own purchase decisions. Although the repercussions are immense and long lasting, I am hopeful that the current economic crisis will encourage consumers to learn to better manage their buying decisions.
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