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Thursday, January 28, 2010
Marketers are still trying to envision a world where mobile marketing makes sense
Mobile marketing has been a promised (and unfulfilled) reality for over a decade.
Today, marketers are trying out new ways to monetize mobile phones beyond the standard display and text ads, thanks to Google (who spent $750 million to buy AdMob), Apple (who just bought mobile-ad company Quattro Wireless), and several start-ups like FourSquare and Loopt. They're offering small steps towards a mobile future. Small, but strong steps.
Google, for example, is said to be releasing a smartphone-ad format that allows users to search for a business and click to call when they find it. Volkswagen is creating an application to monitor service appointments, and Best Buy has in the works an app to improve the retail experience.
Still, spending on mobile ads in the U.S. remains small. The Wall Street Journal points to an e-Marketer report that says just $416 million was spent in 2009, up from $320 million in 200. Considering the total U.S. advertising market is $22.4 billion, those numbers are still only rounding errors.
From the WSJ:
Growth has been slower than expected as many mobile Web sites have yet to generate significant traffic and marketers have had a tough time creating campaigns. EMarketer predicted last February that mobile-ad spending would be $760 million in 2009, growing to $2.4 billion in 2012. The research firm now estimates that mobile-ad spending will reach just $1.1 billion by 2012.
"The growth has been disappointing," says Mark Read, CEO of WPP Digital, the group within WPP working to develop the ad company's digital offerings. "The only large numbers on the table are the prices of the acquisitions—not the amount of revenue they're generating."
Graphic source: The Wall Street Journal
Comedian Chelsea Handler switches vodka brands after Belvedere ponies-up a sponsorship deal
Comedian Chelsea Handler, who says nearly everything with tongue-in-cheek, has switched her preferred brand of vodka from Grey Goose to Belvedere. Most would assume the switch came after Belvedere agreed to sponsor her latest tour, but the comedian has other reasons:
"I was a Grey Goose girl but I found out Belvedere has no real sugar in it," she told Ad Age of her new vodka preference. "These guys really know what they're talking about. They have a distillery in Poland and that spells serious to me. Plus, if I was going to have someone sponsor me, it would have to be either Belvedere or Kotex. I just like Belvedere better."
Supreme Court's decision on corporate funding of campaign ads: a $300 million boon for the media business, but a chink to the armor of democracy
“Government run by organized money is the same as government run by the organized mob” said President Franklin Delano Roosevelt, in a speech at Madison Square Garden in 1936.
And last night, in President Barack Obama's State of the Union speech before Congress, he condemned last week's Supreme Court decision which said that corporations could spend as much as they wanted to sway voters in federal elections.
“Last week, the Supreme Court reversed a century of law to open the floodgates for special interests -- including foreign companies -- to spend without limit in our elections,” Obama said tonight. “Well, I don’t think American elections should be bankrolled by America’s most powerful interests, and worse, by foreign entities. They should be decided by the American people, and that’s why I’m urging Democrats and Republicans to pass a bill that helps to right this wrong.”
Is the decision bad for democracy? Yes.
But is it good for the media business? Well, some say yes.
Reports are (from the Needham & Company estimate) that an additional $300 million could be spent in paid media based on the Court's decision.
But really, is an additional $300 million really worth the decline of democracy and the commercialization of politics?
It all seems like we are going in the wrong direction.
Thank you Mr. President, for trying to set us straight.
Source: The Los Angeles TimesMore controversy around CBS' acceptance of one christian group's ad, and a denial of another.
There's more fuel being added to the controversy around CBS' decision to run a christian group's ad during the Super Bowl.
It seems that, in 2004, CBS refused an ad from the United Church of Christ focusing on the church’s commitment to inclusion. CBS rejected ads submitted by the United Church of Christ as “unacceptable for broadcast.”
CBS’ explanation to the UCC stated that, “Because this commercial touches on the exclusion of gay couples and other minority groups by other individuals and organizations, and the fact the Executive Branch [Bush Administration] has recently proposed a Constitutional Amendment to define marriage as a union between a man and a woman, this spot is unacceptable for broadcast on the [CBS and UPN] networks."
National Gay and Lesbian (LGBT) media organization GLAAD has joined the United Church of Christ in protesting the mixed message that denial of one groups ad, but acceptance of another delivers.
“CBS’s decision to run a Focus on the Family ad during this year’s Super Bowl can’t and shouldn’t be considered in a vacuum,” said GLAAD Senior Director of Media Programs Rashad Robinson. “CBS spent years denying a platform to an LGBT-inclusive church that wanted to share a message of inclusion with a national audience. Now, when it happens to be financially inconvenient for CBS to hold to the standard it had previously imposed, the network’s expediency benefits a virulently anti-gay organization whose advocacy on these issues is the antithesis of that of the United Church of Christ.”CBS claims to have recently reversed its position on issue ads: "We have for some time moderated our approach to advocacy submissions after it became apparent that our stance did not reflect public sentiment or industry norms.” CBS told the AP that, under its new policies, the UCC ads would have been accepted for airing.
Toyota's slips on the banana peel of its brand reputation: Quality
Automotive companies live and die by their brand reputation.
And Toyota has a brand reputation problem.
The company, known for its quality, has just announced that it had to stop building 8 of its popular models due to a technical problem with the accelerator pedal. It has already issues 2 recalls of previously made cars for the same issue.
Yes, Toyota built its glass house based on the brand attribute of quality, and now it must defend itself against all those rocks being thrown at it. Based on the company's history of deftly addressing quality problems, we should expect some good PR and actions coming from the company in the following days, weeks and months.
However, Toyota did not have the wind at its back before these accelerator problems arose. Ever since Toyota bested GM as the largest automotive company in the world, rumors began swirling that the company had taken it eye off the ball, and was focusing solely on volume sales, rather than the core tenants of the brand--quality.
And, it appears that Ford is the world's darling in the automotive world right now. With their hybrid models and "world" cars, they seem to be re-thinking themselves in the right direction. If you need proof, Ford just announced it has swung to its first annual profit in four years.
Toyota's response after the recall of the 2.3 million vehicles with gas pedal problems, has been to stop running its "Portfolio" marketing campaign, which touted its "dependability," "safety" and "reliability." It also has hired Robinson Lerer & Montgomery to handle PR for the situation. Meanwhile, General Motors, seeing an opportunity, is offering $1,000 off a new or leased model to Toyota owners who end their lease agreements.
With great strategic leadership, Toyota should be able to regain its footing and build back the trust and reputation it has formed over the years. Perhaps they should steal Ford's former slogan: Quality if job One.
Tuesday, January 26, 2010
Taco Bell screws-up attempts to pull a transphobic radio ad from the air
I recently posted on how Taco Bell responded to public outcry after it ran what is being called a transphobic radio ad.
Taco Bell's PR spokesman quickly announced that the use of someone’s transgender identity as the punch line of a joke in ad was not something the company wanted to be associated with.
“We sincerely apologize as the ad was not meant to offend anyone and as soon as it was brought to our attention, we immediately stopped airing it.” according to a company statement.
Unfortunately, Taco Bell's statement was not completely accurate. Apparently, radio stations around the country continued to run the ad, prompting Taco Bell to issue another statement:
“We are very concerned to have learned that over the weekend some stations were airing a radio ad that we instructed them to remove on January 14. In the process of replacing the ad, we discovered that some stations inadvertently ran the original commercial. We sincerely apologize that this ad ran again and offended people. We’re in the process of contacting all of our radio partners to ensure that the original ad never airs again. We appreciate that GLAAD brought this to our attention so that we could take immediate action.”
I don't doubt Taco Bell's sincerity in identifying that the ad was in bad taste, but their efforts to ensure the ad was retracted from radio buys apparently fell far short.
All in all, a messy job by Taco Bell PR/marketing.
Source: GLAAD Blog
Women's groups are protesting CBS's decision to run christian group's ad during Super Bowl
A few days ago I posted about how a Super Bowl ad sponsored by a conservative christian group gained approval by CBS.
Now, a coalition of women's groups — the New York-based Women's Media Center, the National Organization for Women, the Feminist Majority and other groups has asked CBS to reject the Super Bowl ad featuring Tim Tebow and his mother placed by the anti-gay, pro-life evangelical group called Focus on the Family.
From the Washington Post:
"An ad that uses sports to divide rather than to unite has no place in the biggest national sports event of the year - an event designed to bring Americans together," said Jehmu Greene, president of the New York-based Women's Media Center.
According to the AP, the ad is expected to recount the story of Pam Tebow's pregnancy in 1987 with a theme of "Celebrate Family, Celebrate Life." After getting sick during a mission trip to the Philippines, she ignored a recommendation by doctors to abort her fifth child and gave birth to Tim, who went on to win the 2007 Heisman Trophy.
So far, CBS is standing by its position to allow the ad to run.Indianapolis Advertising Executive to be Michelle Obama's Guest During State of the Union
From Huffington Post:
In 2009 the agency grew by more than 200%, doubled the number of employees and gained 15 new accounts. None of this would have been possible had it not been for President Obama's welcoming climate for small businesses, including the many initiatives under the Recovery Act. The business is an National Gay and Lesbian Chamber of Commerce certified gay-owned business.
"I'm very honored to be a part of this. It's a groundbreaking time in our country and I'm proud to be part of that," Yager told me. "This is all possible because we some awesome clients who allow us to be successful. It is very honoring and emotional to be chosen."
Saturday, January 23, 2010
A Mistress' Supersized Revenge Scheme: Ad in Times Square Designed To Shame Cheating Spouse (and co-President of Oracle)
Right in the middle of New York City's Times Square sat a full-sized billboard directing viewers to a website featuring a corporate-executive husband and the woman with whom he had a lengthy affair before allegedly reconciling with his wife.
In other words, someone spilled the private life of the co-president of software giant Oracle (Charles Phillips) all over Times Square.
The billboards were reportedly removed after only a few days.
"If you're going to put something up there that might be defamatory, the billboard company would also have some vulnerability," says Murray Schwartz, managing partner at Schwartz and Perry in New York City. "You making that available to someone else can make you responsible as well." (from Lemondrop)
The ads directed viewers to a website (now since removed) that featured photos of Charles with YaVaughnie Wilkins, the woman with whom he had a lengthy affair before allegedly reconciling with his wife. The site includes photos of the couple in romantic settings and is set to one of their karaoke performances. The site also features love notes, penned by Phillips.
Phillips admitted having the affair to NBC, but also noted that divorce proceedings with his wife Karen began in 2008. He added that his relationship with Wilkins "has since ended, and we both wish each other well."
It's believed that Wilkins, who has not spoken to news outlets, is behind the ads and the site.
More proof that hell has no fury like a woman scorned.
Human "bed-warmers" service at Holiday Inn
Here's how it will work:
If requested, a hotel staff-member will dress in an all-in-one fleece sleeper suit and slip between your sheets to warm the bed to a cozy 68 degrees. Holiday Inn said the warmer would be fully dressed and leave the bed before the guest occupied it (whew). They could not confirm if the warmer would shower first, but said hair would be covered.
A hotel spokesperson could not explain why the beds were not being warmed by hot water bottles or electric-blankets, but admitted the human method was quirky.
The trial promotion will take place at two of the chain's London hotels and one in the northern English city of Manchester.
Sources: Reuters with hat tip to John Cronin
Friday, January 22, 2010
Apple Tablet: expanding Apple's influence and revenue as a content middleman to the worlds of magazines, newspapers, textbooks, television and video games.
Apple revolutionized the music business by revamping the way consumers listen and purchase music with iTunes, and the iPod. They've become a powerful gatekeeper between the labels and consumers.
They're now taking aim at the business of textbooks, newspapers, magazines, and even television and video games with the debut of its new tablet device (expected to be introduced to the media on January 27).
Apple has been in discussions with book, magazine and newspaper publishers about how they can work together-- to expand Apple's influence and revenue as a content middleman.
The WSJ reports that the company has talked with New York Times, Condé Nast Publications, HarperCollins Publishers and News Corp. over content for the tablet. Apple is also negotiating with television networks such as CBS, and Walt Disney Company/ABC, for a monthly TV subscription service. Apple is also working with videogame publisher Electronic Arts.
From the Wall Street Journal (paid content)
Mr. Jobs has a longstanding strategy of devising new ways to access and pay for quality content, instead of reinventing the content. Apple's iTunes Store, for instance, became the world's largest music retailer partly by making it easy for people to buy music, most of it from major record labels, by the song instead of by the album. Its digital-media receiver Apple TV was also designed so people can buy and rent movies and television shows.
Mr. Jobs is "supportive of the old guard, and [he] looks to help them by giving them new forms of distribution," says a person who has worked with the CEO. "What drives all of these changes is technology, and Apple has an ability to influence that."
The tablet, which Apple currently plans to ship in March, will have about a 10- to 11-inch touch screen.
Mopping Up NBC's Prime Time Mess
Jay Leno's prime time show every night at 10 pm was supposed to fix NBC's ratings problem with the key demographic of A 18-49. NBC has been on a ratings slide since 2005.
Instead, the "experiment" of putting the Tonight Show host on during prime time turned into a ratings, and PR disaster.
So now NBC has a bigger problem then they had before.
The network is now focusing on a prime time fix that will see it boost spending on new fall shows by 30% and marketing by 20%.
The WSJ (paid content) is reporting that among the possibilities are new versions of 1970s private-eye show "The Rockford Files" and British crime drama "Prime Suspect," and a project from "Lost" creator J.J. Abrams about a husband-and-wife team of CIA agents..
"Fixing it is crucial," said NBC Universal chief executive Jeffrey Zucker. "We haven't been able to succeed in the last five years in doing that. That's become a real problem for us. And that's incredibly disappointing."
Thursday, January 21, 2010
Spain Bans "Body Worship" Television Ads Before 10pm
In Spain, television ads for alcohol can only air after 9 pm.
And now, it appears that marketers will have to wait until 10 pm to air commercials for diet products, some beauty treatments and plastic surgery--so-called "body worship" ads.
The goal is to keep ads away from the eyes and ears of those under 18 years of age who might be affected with body-image issues such as anorexia and bulimia.
According to Advertising Age, the new law states: "Broadcasters cannot carry advertisements for things that encourage the cult of the body and have a negative impact on self-image -- such as slimming products, surgical procedures and beauty treatments -- which are based on ideas of social rejection as a result of one's physical image or that success is dependent on factors such as weight or looks."
The beauty and hygiene segment is the third-biggest TV spender in Spain, accounting for $708 million in airtime in 2008.
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