Sex sells … well, sex .. but not much else. Victoria’s Secret was the most recalled product placement on TV — fortunately they sell products related to what was recalled. Not so sure about the mayo and cell phone.
While no holding company’s results are pretty these days, Interpublic Group of Cos. last week posted particularly poor numbers, swinging to a net loss of over $35 million for the first nine months of 2009 from almost $60 million in profit during the same period in 2008. IPG’s third-quarter revenue fell 18% compared to declines of 14.4% at rival Omnicom Group, 8.7% at WPP (factoring out the effect of acquisitions and currency shifts) and 5.3% at Publicis Groupe. WPP’s reported revenue, including revenue from its big Taylor Nelson Sofres acquisition, rose 16.7%. In the same quarter, net income attributable to IPG tumbled 47.3%, more than double the drop of Omnicom (down 22.5%).
Google changed the game by changing the business model from paying for impressions to paying only when the advertiser gets the click. This helped to cut out the 99% of waste and inefficiency which existed in the industry.
NEW YORK (AdAge.com) — Using words such as “severe” and “surprise” to describe the recession’s impact on its business, WPP, the world’s largest advertising conglomerate, today said its profit was down 47% for the second quarter. And WPP Chief Executive Martin Sorrell said it will be a while before marketing executives begin to spend and take chances the way they did just a few years back.
In a first half earnings statement released this morning, WPP Group announced that digital and direct marketing-related services now comprise 25% of its body.
WPP Group owns labels like 24/7 Real Media, Mediaedge:cia, MediaCom, Mindshare, GroupM and Outrider.
Digital and direct garnered $1.7 billion in revenues in the first half of ‘09, with a projected annual run rate of nearly $3.5 billion total. But it is digital media and advertising that appear to be dominating the segment.
Overall, first half revenues fell 2.9% to $6.4 billion in the first half on a reported basis, MediaPost reports. Like-for-like, however, total revenues slid 8.3% against the first half of 2008.
According to WPP, traditional advertising and “media investment management” have been the hardest-hit amidst the economic downturn.
“On a constant currency basis, advertising and media investment management revenues fell by 7.5%, with like-for-like revenues down 7.8%,” it stated.
Branding and identity, healthcare and specialist communications — which includes direct, internet and interactive — were least affected.
The media conglomerate committed to prioritizing the growth of digital communications, customer insights and strong geographic markets.
Beer is yet another commodity and category that is being decimated by better quality alternatives. The means of production and distribution are no longer controlled by a very small number of big companies. Consumers find attractive alternatives in micro-brew beers or local beers. They have the means to access them (online) and have the product shipped directly to their homes. So no matter how much advertising the big companies do, if their product is just not that great, they will continue to lose customers to alternatives. The “lime” version of Bud Light was said to cannibalize sales of regular Bud Light. And rightly so, consumers are looking for a better product.
Despite a flurry of new and improved ad pushes for the country’s leading brews, the days leading up to Independence Day, usually the biggest-selling period of the year for the category, led to gruesome sales declines vs. the same period last year. Sales for Anheuser-Busch’s Bud Light and Budweiser plunged 7% and 14%, respectively, in grocery, convenience and drug stores during the two-week period ending July 5, according to scanner data from Information Resources Inc. Miller Lite suffered a 9% drop. The big importers were hurt badly too: Corona marketer Crown Imports watched sales decline 6% to 8%, while Heineken and Diageo each saw double-digit drops.
Samsung LED Sheep – how do I even buy an LED from Samsung, if I wanted one?
T-Mobile Dance – not sure exactly what it means or how it is related to cell phone service, but it SURE was cool!
Cadbury Eyebrows – cool, and forwardable video. but what does Cadbury make again? So I can go buy some of whatever they make? 😉
etc. etc. you get the point…
the only videos (below) that actually have anything to do with the product are Filet-O-fish, condom bunnies doing their thing, and Denny’s banana on pancakes.
What Crispin’s Lauded BK Work Doesn’t Do: Gain Ground On McD’s
Since Hiring the Agency, King Earned Ad Plaudits but Hasn’t Closed the Gap
CHICAGO (AdAge.com) — For all of Burger King’s marketing triumphs with its ad agency, Crispin Porter & Bogusky, it has lost — and continues to lose — ground to its largest and most significant rival, McDonald’s.
Lift in search is a great indicator of interest. Modern consumers may be inspired by TV ads, but they usually go online to do more research for themselves, to inform their own purchase decision. The following examples show the lift in search after Superbowl commercials or for launch of products like Subway Footlongs. The use of unique, made-up words makes it easier to detect lift in search (see related post: made up words are great for tracking buzz and search volume ). There is now a correlation between offline paid advertising and online behaviors of modern consumers that can be tracked and ultimately related to sales.
What is harder to do is track lift in search from smaller TV media buys or from terms which are generic — e.g. American Express OPEN, Proctor & Gamble’s TAG (men’s deoorant), etc. And furthermore, people may or may not remember the brand name itself and may type in a more general search query — e.g. “talking baby” instead of” e-Trade” or “dancing lizards” instead of “SoBe LifeWater.” And most people usually forget to type in special URLs specified in the ads. So the opportunity is to 1) use made-up words which can be used to detect lift in search and 2) search-optimize around other more generic terms that people may search for if they remembered the ad, but did not remember the brand name itself.
key learnings include:
1. only the superbowl TV ads generates enough awareness to drive lift in search volume detectable above the noise or normal levels
2. made up words are useful in correlating paid advertising and subsequent online actions (e.g. search) because most users forget or are too lazy to type special URLs
3. is is always better to have real analytics from the site to see when paid campaigns hit; site analytics will also reveal more information about users including demographic information, what they are looking for, and even whether they “convert” to a sale or a desired action — like print off a coupon, etc.
Notice the January spikes for several of the examples below — these are their Superbowl ads in action. But also notice how sharp the spikes are — most of them go back to prior levels within 1 – 3 days (see related post: the ephemerality of the Superbowl halo )
There is a whole ruckus around ad networks getting too little credit for helping to drive customers’ awareness and clicks for advertisers. In the past, ad networks wanted to claim credit for type-ins (people going to an advertiser’s site by typing the URL instead of clicking on an ad). They called this “view through” and the ad networks wanted these to be attributed to their showing the ad somewhere on their network.
Now they claim that getting credit for only the last-ad is not enough — the ad the user actually clicked on to get to the advertiser’s site, the one that can actually be tracked and properly attributed.
What’s at stake is the relatively large piece of “direct” or referrer-less traffic. Analytics packages can only assign these to type-ins or bookmarks since there was no referring site to attribute them to, let alone ad creative version, etc.
But while there is demonstrable lift in click rates when display ads and search ads are running at the same time — i.e. they reinforce and complement each other — it does not mean that ad networks can or should claim credit for the lift. After all, advertising running on another network COULD also cause a lift in results of ads running on another network if they are run simultaneously.
So the bottom line is if the click or the visit is not directly attributable, it should not be attributed.
The 2011 year-to-date stock performance of retail stocks show that “ultra low end” Dollar Tree (DLTR) and “ultra high end”Whole Foods (WFM) are the best performers whereas companies that are in the “practically undifferentiated middle” are down — Target (TGT) and Saks (SKS).
ORIGINAL POST: February 23, 2009.
Spend polarization – in this economy, people will try to save every last penny so they will spend more at Wal-mart (low prices). But when they do treat themselves, they will spend on even higher end items like $40 balsamic vinegar, or high end chocolate (high prices).
Jacques Torres was packed before Valentines this year
low end
1. people buying private label, generics, or store brands (quality of which are pretty comparable to name brands)
Private Labels winning the battle of the brands http://adage.com/article?article_id=134791
high end
2.we were at Williams Sonoma yesterday and I watched 3 families buy Shun knives (super expensive) and Shun has just released an even higher end series of knives by Michel Bras
2009 is the year of the “open agency model.” Many of the largest brands have declared that they are going “open agency mode” in search of lower cost, greater efficiency, and possibly better work. But while this idea may be good in theory, it is very difficult in practice. Having run a “virtual company” since 1996, I know of the challenges, as well as the upside. And the conventional wisdom of “you get what you pay for” holds very true here. I’ve outsourced to China and India to varying degrees of success and usually it took more time to communicate and re-communicate, do and re-do to get things right. And it ended up costing more overall, despite lower unit costs. Furthermore, most clients are brand experts of their own brand, but may not have the depth of experience in managing complex, global deployments … or perhaps even experience in managing photo shoots. Although it may be fun to go on photo shoots, but that doesn’t mean clients can manage that themselves. And having an inexperienced, small agency do it may not be that much more efficient either.
2009 has also been declared the year of search and social marketing. Many of the biggest brands now realize they must do something in search in order to be found when users are out looking for something. Knowing that 80% of online journeys begin with search (Forrester April 2008), it is more important than ever to be “findable” — after all, if they can’t find you, you don’t exist. Companies are also looking for efficiencies in social marketing — literally having people carry forth their message or amplify it for free. This is a good move because most modern users trust their peers far more than they trust an advertiser’s ad message anyway, according to countless studies.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.