GM Marketing Chief Says TV is Not Dead

October 11, 2010

Television Remains Mainstay for GM

In an industry that’s driving money into social media and other communication platforms Joel Ewanick, the head of marketing for General Motors, believes some of the best campaigns still begin with Television.

“I love television,” he said. “(Some) people say television is dead, it is not dead. It drives a lot of traffic.”

In July, approximately two months after Ewanick joined GM, the company aired its first Chevy Corvette TV commercial in five years. The spot, titled “Still Building Rockets,” contrasts NASA scientists developing and launching space rockets with a Corvette being built and burning rubber on a test track.

According to Ewanick, Chevrolet will unveil a Silverado pickup TV campaign in October, which features the good-natured teasing that occurs when Silverado owners visit with owners of other brands. Additionally, GM will be returning to run Super Bowl advertising in February.

Ewanick believes TV remains a key medium for selling and driving traffic to dealer websites. According to Automotive News, Ewanick – who spent about the past three years as Hyundai Motor America’s marketing chief – said he likes the current Hyundai “Uncensored” campaign. In it, Hyundai test drivers give straightforward opinions about how they feel behind the wheel of the vehicles.

“That campaign began on TV then moved to Facebook and other social media sites to continue a lively dialogue for Hyundai owners and others,” Ewanick said.

That’s a good model for how a campaign can launch on TV and expand into other media, he added.

 

Share

Advertisements

TV Media Buying 101

November 24, 2009

With increasing fragmentation, buying television advertising is becoming more and more challenging.   

Here are a few things you should know before getting started:

1) Focus on Gross Rating Points, not number of spots
Experienced buyers don’t focus on how many spots they can buy. Instead, they concentrate on market exposure – measured by the number of gross rating points (GRPs) a media schedule delivers to the target demographic. What use is a boatload of commercials, if nobody’s watching?

2) Don’t Pay too Much
Most professional buyers consider cost efficiency their highest goal. Their focus is simple: reach the most people in their target with the greatest frequency possible at the lowest cost – all while staying on budget. In order to do this, they must master cost per point negotiations, which varies by market. If you’re new to cost per point buying, the SQAD Media Market Guide is a good place to start.  This quarterly publication provides media buyers with average cost per point estimates for all 210 DMAs (designated market areas) in the U.S. 

3) Understand Reach and Frequency
It’s important to get a handle on acceptable reach and frequency numbers for your industry. In other words, how many people in your target audience will see your commercial (reach), and how many times will they see it (frequency). If your weekly reach and frequency numbers are inadequate then results will suffer.  Generally speaking, retailers should aim for a minimum 60% reach and 2.0X frequency.

4) Think Demographics and Psychographics
Few products appeal to everyone. Smart media buyers zero in on target audiences who are most likely to buy their product. They consider age, sex and lifestyle habits and then carefully select programs that attract the right consumer. In the age of 400+ television stations, knowing what your customer is watching is vital to your success. Both Scarborough and Media Audit are good resources that will help you zero in on your customers’ media consumption habits.

One final note: think twice before handing over your media buying to an administrative assistant. Either hire an in-house professional media buyer or an ad agency.  Media buying requires a skill set that requires years of experience to do right. And a very short time to do wrong.

Share


TV Still the Mass Media Champion – Just Ask a Politician

November 2, 2009

Picture for Post #36

It seems that when it comes to high-stakes political campaigns, where every dollar has to count, politicians are still turning to what has always worked for them – television advertising.

Wells Fargo Senior Analyst, Marci Ryvicker predicts that $3.3 billion will be spent in political and issue advertising in 2010 – with 67% of every dollar spent going to television.

Here are her projections for the entire advertising industry for the 2010 Political season:

Medium                       Projected Ad Spending                       % of Total

Television                    $2.2 billion                                           67%

Direct Mail                   $650 million                                         20%

Radio                           $228 million                                         6%

Newspaper                  $95 million                                           3%

Outdoor                       $55 million                                           2%

Internet                        $50 million                                           2%

I’ll let you draw your own conclusion.  

Share


TV Advertising Builds Brands that Last

October 27, 2009

Picture for Post #35

Let’s just cut to the chase? As it stands today, TV advertising builds brands. Internet advertising does not. There’s little doubt that once a brand is established, the Internet can and does keep the momentum moving forward, but until that point is reached all the banner ads and twitter tweets will do little to ingrain your brand into the psyche of the consumer.

Creating a memorable brand requires more than getting people to talk about your product on a social network. It requires the advertiser to make an emotional connection that television does so well.  Do you honestly think Nike would be the #1 sports brand if it wasn’t for television advertising?  Or would you feel the same connection with a little known insurance company if their AFLAC-ing duck never made its way onto your television screen? 

Sure technology has changed, but the basic rules of effective marketing remain the same. You still need reach and frequency to create most truly memorable brands.  And television advertising delivers both better than anything else out there.

Television has a rich history of transforming everyday companies into household names.  From packaged goods to insurance, from fast food to tires – television has been responsible for creating some of the most memorable advertising icons.

Who can forget …

The Energizer Bunny … Frank Bartles and Ed Jaymes … Joe Isuzu … Tony The Tiger … The Michelin Man … Mr. Whipple … Dave Thomas … Mr. Peanut … The Keebler Elves … The Maytag Repairman … The Geico Gecko … Charlie The Tuna … Ronald McDonald … Mrs. Olsen … Jared from Subway … Clara “Where’s the Beef” Peller … Orville Redenbacher … The Marlboro Man …Colonel Sanders … Pillsbury Doughboy … Chef Boyardee … The AFLAC Duck … The California Raisins … Morris the Cat … The Quaker Oats Man … The Green Giant … Juan Valdez … The Doublemint Twins … The Budweiser Frogs … Rosie, The Bounty quicker picker upper … Aunt Jemima … Mr. Clean … The Verizon Wireless “Can You Hear Me Now” Man … Betty Crocker … The Lucky Charms Elf … The Geico Cavemen

Now, recall just one advertising icon or brand that wasn’t first introduced to you on television.

I’ll wait …

Share


Retail Television Advertising Still Makes Sense

August 13, 2009

Why do retail advertisers continue to spend 46% of their ad budgets on television advertising? And only 7% on the Internet?

Graph for Post 5

It makes perfect sense to me. TV commands such a lion share of the nation’s media spending because it deserves to. After all is said and done, it comes down to results. No amount of wishful thinking can change the fact that TV advertising produces better “brand building” results than any other media platform, including the Internet.

Don’t know about you, but I could of swore I saw the Geico Gecko and that creepy, but effective Burger king character for the first time on TV.

With that said, the Internet is a powerful complement to traditional mass media when it comes to providing consumers with in-depth information on a product or service. It’s weakness; however, is its inability to transform a brand promise into a brand personality. For that – nothing beats the sight, sound and action of a 30-second television commercial.

TV is not dead and it’s not dying. There’s too much evidence out there for anyone with slightest bit of intellectual honesty to deny.

You don’t have to look any further than online video consumption to realize that television is more than holding its own in the digital age. Are people really abandoning their 50 inch plasmas in favor of viewing downloaded video content onto their laptops and cell phones? Or are they spending all their time on YouTube watching one of the thousands of insipid videos submitted each and every day? Perhaps some are, but it’s far from being a groundswell – even among the young.

According to the latest Nielsen Media Research Study on media usage, 18-24 year-olds are watching just under 5 ½ minutes of online video a day versus 3 ½ hours of TV daily.

As Andy Donchin, the director of national broadcast for Carat, the largest media buying service in the world put it:

“traditional media is still very strong and a great influencer. You need to get immersed in digital, but traditional media is still doing the heavy lifting.”

I couldn’t have said better myself…

Share