Think Differently!

October 27, 2011

That’s what Steve Jobs did. Even though he revolutionized the digital era, he did not think much of the internet as a branding medium. While everyone was jumping on the digital bandwagon, Jobs effectively remained “old school.”

In 2010, Apple spent an estimated $420 million on advertising. Over 90% of that budget was allocated to network television, newspapers, magazines and billboards. Less than 10% went toward digital initiatives.

And when Apple did spend online, it was usually an extension of a TV campaign like the iconic Mac vs. PC ads.

Jobs also believed in controlling the message which files in the face of the current wisdom that consumers should tell the brand story via Facebook and Twitter. Upon his death, Apple barely had a presence on either platform.

Throughout his brilliant career, Jobs created products for the masses. And he wisely chose mediums that targeted the masses. In advertising, as in product development, he relied heavily on his convictions and intuition. He did not rely on “likes” or “tweets.” He took a much more pragmatic approach: tell the story of how an amazing product can change a consumer’s life in the best environment possible. And then he was smart enough to understand that the best environment – then and now – is still traditional media.

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All that glitters isn’t gold!

October 19, 2011

A new survey of marketers conducted by the Association of National Advertisers has discovered something interesting, but not terribly surprising about the new media rage.  According to the survey, more national companies are dedicating larger portions of their ad budgets to new media.  But it also finds more companies questioning the effectiveness of their new media investments.

78% of companies surveyed said that they planned to spend more on new media like online ads, social networks, search engine marketing, mobile and viral video in 2012 than they did this year.  On average, this represents 14% of their total media spending – up from 10% in 2011.

So, with more spending come better results, right?  Not necessarily.  Compared to a similar study in 2009, marketers in general, are complaining that bigger investments in new media are not always producing the desired results.

“While marketers have substantially increased their use of new media platforms over the past few years, they are beginning to question the effectiveness of some of these vehicles,” Bob Liodice, president and CEO of the ANA said.  “The ANA survey indicates a strong willingness by marketers to integrate innovative new approaches into their marketing mix; however, this enthusiasm is tempered by concerns regarding the ROI of these emerging options.”

Or in other words, anyone who thought that new media was going to quickly transcend old media (i.e. television) was perhaps blinded by all the glitter.


TV Advertising Goes Mobile

June 29, 2011

TV advertising is not going anywhere, just evolving. It’s always been about getting consumers to act, and incorporating the use of today’s smartphone applications is the newest way to bring more
impact to your TV commercials.

According to a study done by the Consumer Electronics Association (CEA), in 2010, 33% of U.S. households owned a smartphone. With that number estimated to skyrocket to 45% by 2012, advertisers are already starting to adopt the use of mobile applications in their TV campaigns.

Brands like Tide® and Old Navy® have recently integrated the music identification application, Shazam® into current TV commercials. It’s simple too, no typing in long URLs or performing lengthy Google searches. The commercials feature songs, so all the consumer has to do is open up the Shazam® application and let it identify the song playing in the ad. From there they will have options to go straight to that brand’s website, purchase product, etc. With the Old Navy® ad you even have the option to buy the outfit the person is wearing in the ad!

This new trend will not only make TV ads more interactive for consumers, but allow advertisers to more accurately measure the performance of the ads while tracking TV conversions.

Integrating mobile apps into your TV advertisements works well all around – the consumer gets to interact with the ad while the advertisers are able to more easily direct traffic to brands’ websites. Shazam® is just the beginning; as this advertising tactic grows, the variety of applications available for integration will most likely grow as well.


TV Advertising – Stronger Than Ever

February 25, 2010

Everyone is selling something.  As soon as you realize this simple fact, the sooner you’ll be able to see through the “TV is Dead” smoke screen perpetrated by those who are, yes “selling” digital services.

Most new media folks are like the partisan politician who is unwavering in his position even when the facts prove otherwise. It’s the classic “if I say it long enough … it must be true” approach.

 Well, they can stick to their “TV is so yesterday” talking points, but the facts just don’t add up. 

TV is stronger than ever. This, according to the largest privately-owned, full-service direct response media agency in the country. And TV is not losing its luster.

The Senior Director, Research & Analytics at Mercury Media, Michael Goodman says, “Rather than cannibalize traditional television, emerging video platforms, like Hulu, cable VOD and FLO TV, are supplementing viewership and creating new revenue streams for programmers.”

“Television advertising is not dying,” said Goodman.

Rather than fragmenting the marketplace, emerging video platforms like broadband and mobile TV are acting as audience multipliers.” Goodman points to innovations like Addressable TV, TV Everywhere and Interactive TV as leading the evolution toward “a harmonious video delivery ecosystem.”

Among Goodman’s top findings are: TV is still the #1 screen. Television viewership remains at hundreds of hours per month, while viewership of broadband and mobile video remains in the low single digits.

“It is reckless to proclaim that any great revolution is taking place”, says Mercury.

In 2Q 2009, watching TV in the home accounted for 77% of screen time among consumers age 2+, up 1.5% year-over-year.

So there you have it. Yet more information that dispels what the new media folks would have you to believe on the state of television.  But it won’t stop them though … they’re armed with one heck of a sales pitch, just not the facts.

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Americans Spending Even More Time with TV

December 16, 2009

TV Remains “Most Influential Ad Medium for 2009”

A year dramatically impacted by the economic recession has influenced consumers to return to watching television over other types of entertainment. Deloitte’s 2009 “State of the Media Democracy” survey reveals a 26% increase in the number of Americans choosing the TV as their favorite type of media as compared to the previous year.

More than 70% of survey respondents rank TV their top three favorite media activities. Additionally, when ranked alongside other activities like surfing the Web, listening to music or reading, 34% of consumers still place TV at the top. This is a substantial increase from last year and more than double the percent of the number two choice, which is the Internet that came in at 14%.

When watching their favorite TV programming, 86% of survey respondents prefer watching on their television set, enjoying the programming either live, via a DVR/TiVo or using an “On Demand” feature. While less than 10% of Americans say they prefer watching the same content online, it is a growing trend.

Hours Spent with TV:

  • Nearly 18 hours of television programming is spent on TV in a typical seven day week – up notably from less than 16 hours last year.
  • Millennials (ages 14-26) had the largest increase, to almost 15 hours from 10.5 hours.
  • 72% of Americans say they have been forced to reduce their purchases of other entertainment products including movies, concerts, sporting events, DVDs, CDs and videogames.

Besides TV viewing, the survey supports the culmination of the game console as a stand-alone media platform and the mobile phone’s rapid decoupling of the Internet from the desktop and the rise of tribal marketing.

But, nevertheless, television continues to reign as the most influential advertising medium, with 83% of consumers identifying TV advertising as one of the top three media with the most impact on their buying decisions. Online advertising ranks much lower in impact than television.

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