Launch! Advertising and Promotion in Real Time, 2009a
Launch! Advertising and Promotion in Real Time, 2009a Launch! Advertising and Promotion in Real Time, 2009a
While an advertiser in the 1960s could be confident that he could reach a hefty proportion of the American public with a commercial on one of the three networks in existence at the time, today the (TV) picture is much different. Consumers can choose from hundreds of channels—when they’re not surfing the Web or listening to podcasts and MP3 files. Young people in particular are migrating away from TV and spending more time online—especially as programming that used to appear exclusively on TV becomes available as streaming video. To rub salt into the wound, viewers today can exercise control over what they see as they gleefully TiVo or DVR their way into commercial-free entertainment on their big flat-screen TVs. For now, estimates vary widely—one study found that the average ROI of TV advertising is 0.54 to 1 for packaged goods and 0.87 to 1 for nonpackaged goods. According to this research, these media on average actually lose money for the advertiser! [1] Another estimate, by well-known media analyst Kevin Clancy, is a bit more sunny: he states that the average ROI of TV advertising campaigns ranges from 1 to 4 percent— still a small number, but at least it’s in the positive column. [2] Traditionally the metric this industry uses is viewership ratings, particularly those Nielsen compiles. Again, these data have questionable relevance to ROI because they only show whether people watch the shows and not necessarily whether they use the commercial breaks to hit the bathroom or make a sandwich. And these ratings often get collected in a finite period of time—sweeps week—so networks pump up their schedules to attract as many viewers as they can during this window. There is widespread consensus among advertisers that the TV industry will need new audience metrics—other than reach and frequency information it uses to calculate CPM—to report commercial ratings. To get a sense of the pessimism surrounding this industry, consider some results from a recent study by the Association of National Advertisers (ANA) and Forrester Research: Almost 70 percent of advertisers think that DVRs and video-on-demand will reduce or destroy the effectiveness of traditional thirty-second commercials. When DVRs spread to thirty million homes, close to 60 percent of advertisers report they will spend less on conventional TV advertising; of those, 24 percent will cut their TV budgets by at least 25 percent. Eighty percent of advertisers plan to spend more of their advertising budget on Web advertising and 68 percent of advertisers will consider (Web-based) search engine marketing. Saylor URL: http://www.saylor.org/books Saylor.org 413
Advertisers are also looking at alternatives to traditional TV advertising, and almost half plan to spend more of their advertising budgets on emerging platforms (which we’ll address later) such as TV program sponsorships, online video ads, and product placement. [3] With all that negativity, is network television dead? Don’t write its obituary yet. Although it’s undeniable that our world is a lot more fragmented than it used to be, there still are large-scale events that unite us and continue to command a huge mass television audience. These include the Super Bowl, the Olympics(with an estimated four billion viewers) and, of course, American Idol. Advertisers also are getting more creative as they search for ways to draw in audiences—and entice them to stay for the commercials. For example, some are experimenting with bitcoms that try to boost viewers’ retention of a set of ads inserted within a TV show (we call this a commercial pod). In a typical bitcom, when the pod starts a stand-up comedian (perhaps an actor in the show itself) performs a small set that leads into the actual ads. [4] Finally, the networks are taking baby steps toward getting more credit for viewership that occurs in places other than people’s living rooms. Our mobile society exposes us to television programming in bars, stores, hospital waiting areas, and dorm rooms—current ratings systems don’t reflect this. In early 2008 Nielsen fielded a new service it calls The Nielsen Out-of-Home Report; this is a cell-phone based service that provides metrics for television viewing that occurs outside of the home in bars, hotels, airports, and other locations. CNN has already started to use this service. In addition, the Nielsen Online VideoCensus will measure the amount of television and other video programming people view over the Internet. [5] SS+K Spotlight Figure 14.4 Saylor URL: http://www.saylor.org/books Saylor.org 414
- Page 364 and 365: The common denominator among the mo
- Page 366 and 367: [5] Quoted in Geoff Colvin, “Sell
- Page 368 and 369: In 2007, Dial rebranded its Soft &
- Page 370 and 371: It also helps when viewers don’t
- Page 372 and 373: The solution? Advertisers need to s
- Page 374 and 375: [2] David Carr and Tracie Rozhon,
- Page 376 and 377: providing our consumers with even m
- Page 378 and 379: Tupperware Chairman-CEO Rick Goings
- Page 380 and 381: KEY TAKEAWAY An executional framewo
- Page 382 and 383: 1. Characterize the members of an a
- Page 384 and 385: Art direction has grown in importan
- Page 386 and 387: You can explain why having an emoti
- Page 388 and 389: 3. Go to at least one favorite maga
- Page 390 and 391: accomplished this by designing mult
- Page 392 and 393: As you saw in the media plan we pre
- Page 394 and 395: 13.4 TV Another important element o
- Page 396 and 397: Figure 13.7 The banners titled “P
- Page 398 and 399: The “Keywords” banner ads were
- Page 400 and 401: 13.7 NewsBreaker Game Another insig
- Page 402 and 403: 13.8 NewsBreaker Live The final pus
- Page 404 and 405: 13.10 Spectrum Home Page Figure 13.
- Page 406 and 407: 14.1 ROI: Show Me the Money LEARNIN
- Page 408 and 409: Marketers echo this pessimism; many
- Page 410 and 411: The ROI for any campaign must relat
- Page 412 and 413: [1] Jeff Lowe, “The Marketing Das
- Page 416 and 417: National cable metrics from the msn
- Page 418 and 419: Figure 14.8 msnbc.com purchased a
- Page 420 and 421: Read Most: The percentage of reader
- Page 422 and 423: Double-page spreads and bound multi
- Page 424 and 425: 14.3 ROI for Alternative Media LEAR
- Page 426 and 427: Outdoor advertising is quickly movi
- Page 428 and 429: procure products they needed to dre
- Page 430 and 431: Figure 14.15 Chart tracking number
- Page 432 and 433: Online advertising formats have his
- Page 434 and 435: Figure 14.18 In order to optimize o
- Page 436 and 437: In addition to measuring elements o
- Page 438 and 439: Figure 14.24 SS+K compared the rate
- Page 440 and 441: Table 14.1 Final Takeaway and Lesso
- Page 442 and 443: [2] “The Association of National
- Page 444 and 445: 14.4 Exercises TIE IT ALL TOGETHER
- Page 446 and 447: site. Summarize what you have learn
Advertisers are also look<strong>in</strong>g at alternatives to traditional TV advertis<strong>in</strong>g, <strong>and</strong> almost half plan to<br />
spend more of their advertis<strong>in</strong>g budgets on emerg<strong>in</strong>g platforms (which we’ll address later) such as TV<br />
program sponsorships, onl<strong>in</strong>e video ads, <strong>and</strong> product placement. [3]<br />
With all that negativity, is network television dead? Don’t write its obituary yet. Although it’s undeniable<br />
that our world is a lot more fragmented than it used to be, there still are large-scale events that unite us<br />
<strong>and</strong> cont<strong>in</strong>ue to comm<strong>and</strong> a huge mass television audience. These <strong>in</strong>clude the Super Bowl,<br />
the Olympics(with an estimated four billion viewers) <strong>and</strong>, of course, American Idol.<br />
Advertisers also are gett<strong>in</strong>g more creative as they search for ways to draw <strong>in</strong> audiences—<strong>and</strong> entice them<br />
to stay for the commercials. For example, some are experiment<strong>in</strong>g with bitcoms that try to boost viewers’<br />
retention of a set of ads <strong>in</strong>serted with<strong>in</strong> a TV show (we call this a commercial pod). In a typical bitcom,<br />
when the pod starts a st<strong>and</strong>-up comedian (perhaps an actor <strong>in</strong> the show itself) performs a small set that<br />
leads <strong>in</strong>to the actual ads. [4]<br />
F<strong>in</strong>ally, the networks are tak<strong>in</strong>g baby steps toward gett<strong>in</strong>g more credit for viewership that occurs <strong>in</strong> places<br />
other than people’s liv<strong>in</strong>g rooms. Our mobile society exposes us to television programm<strong>in</strong>g <strong>in</strong> bars, stores,<br />
hospital wait<strong>in</strong>g areas, <strong>and</strong> dorm rooms—current rat<strong>in</strong>gs systems don’t reflect this. In early 2008 Nielsen<br />
fielded a new service it calls The Nielsen Out-of-Home Report; this is a cell-phone based service that<br />
provides metrics for television view<strong>in</strong>g that occurs outside of the home <strong>in</strong> bars, hotels, airports, <strong>and</strong> other<br />
locations. CNN has already started to use this service. In addition, the Nielsen Onl<strong>in</strong>e VideoCensus will<br />
measure the amount of television <strong>and</strong> other video programm<strong>in</strong>g people view over the Internet. [5]<br />
SS+K Spotlight<br />
Figure 14.4<br />
Saylor URL: http://www.saylor.org/books<br />
Saylor.org<br />
414