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Best practices, training and innovations in Digital Strategy.

Poll: Celebrity endorsement in advertising… It does not always work!

November 26, 2012 – 1:34 pm
Cristiana
 

Luxury brands are spending every year millions of dollars hoping to be able to engage as many fans as possible in as many ways as possible via as many channels as possible.

For instance, the famous Louis Vuitton brand had a $10 million advertising agreement with Angelina Jolie. With such a powerful celebrity endorsement, everyone would expect to automatically be an amazing success. But it depends on the way this tactic is approached.

The first question that everyone should ask himself is if the celebrity endorser is credible for a given product or category. Angelina Jolie is quite credible for Louis Vuitton – she is an icon of fashion and glamour and it’s not too hard to imagine her wearing Vuitton products by choice. James Gandolfini would be credible for cigars – it doesn’t require a whole lot of imagination to see the Tony Soprano actor smoking a Montecristo. Now if we change the roles, there will not be any relevance into this approach. So…is the celebrity endorsement cost-effective? Campaign budgets vary, and the situation is the same for celebrity price tags. But as a general matter, the kind of celebrities that could make a difference are not cheap at all.

To find out an answer to the question stated above, Adweek/Harris Interactive recently conducted a poll about celebrity endorsements in advertising, and the results are as follows:

  • 77% of respondents claimed that “when a sports star, movie star or other celebrity endorses a product” they are no more or less likely to buy it.
  • 14% stated they are less likely to buy.
  • Only 4% stated they are more likely to buy. What’s more, these results were remarkably consistent across age groups and gender.

Of course, this poll, as any other opinion survey takes into consideration three big assumptions:

a) that respondents are aware enough of their, often subconscious, mental processes to assess their reaction
b) that they will openly admit  their views; and
c) that their stated views are predictive of their actual behavior

In other words is the celebrity endorser credible for a product category? The answer is simple: not always. For instance, if we take into consideration categories such as perfume, liquor or fashion, celebrity endorsements can bring a lot in terms of credibility while if we refer to financial services, a Hollywood star will never have a positive impact simply because he is not a finance specialist and second because he does not represent the portrait of a potential customer who may need such services.

So, what marketers should do first is to analyze the advertising tactic from different perspectives and be very cautious regarding who is going to endorse the respective product or service because the category and the celebrity are chosen wrongly, then even if the company spends $10 million it may not bring any brand capital.

The following infographics speak for themselves:

 

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Marketing for children or children for marketing?

September 14, 2012 – 4:12 pm
Cristiana
 

Marketing and advertising for children has already been more challenging and complex. It is always related to emotional impact both for children and parents and more (very much more) psychology. The reason is simple: children are seeing things that they wish (toys, chocolate bars/cakes, clothing, etc). The next step is relatively easy: they start putting pressure on their parents to purchase the respective “new asset” that is going to be forgotten one week later when something new, more trendy comes up on the market. Moreover, children (even if they are less than 5), they are aware that for instance, they cannot socialize properly with other children if they have an old-dated toy or if they do not go to a specific movie (usually this kind of movie is watched in groups with parents). So, again everything is very strong related to “outside”; if parents believe their children are very young so there is no need for huge expenses, they should think twice. The problem is related to the fact that your child can be rejected from a group, because other children would not accept to socialize with someone who does not have the latest “gadgets” in terms of toys.

Marketers know very well all these aspects. That is why they are closely working with psychologists to figure out the best way to market different products for the young audience. In her book “Advertising to children: Is it ethical?”, Rebecca A. Clay is citing psychologist Allen D. Kanner, PhD who has been asking his younger clients what they wanted to do when they grew up. The answer used to be “nurse,” “astronaut” or some other occupation with intrinsic appeal.
But today the answer has changed into ” I want to make money.” For Kanner, one explanation for that shift can be found in advertising.

“Advertising is a massive, multi-million dollar project that’s having an enormous impact on child development,” says Kanner, who is also an associate faculty member at a clinical psychology training program called the Wright Institute. “The sheer volume of advertising is growing rapidly and invading new areas of childhood, like our schools.”

According to Kanner, the result is not only an epidemic of materialistic values among children, but also something he calls “narcissistic wounding” of children.

Besides this, I would use my expertise in Media to add that Marketing is a strong component of manipulation as well. Marketers are using Psychologists to understand children’s social behavior and their parents’ reaction in different circumstances. This has A LOT to do with the product placement and finally with the overall profit of a company.

According to  Betsy Wagner’s book called, `Our class is brought to you today by…advertisers target a captive market: school kids’, US News & World Report, Vol. 118, No. 16 (1995), p. 63; France, op.cit.; Rhoda H. Karpatkin and Anita Holmes, `Making schools ad-free zones’, Educational Leadership, Vol. 53, No. 1 (1995):  “In the US there are over 57 million school age children and teenagers who spend about $100 billion each year of their own and their family’s money on sweets, food, drinks, video and electronic products, toys, games, movies, sports, clothes and shoes.” These statistics show the best the great potential for this market.

A perfect case-study for marketing for children (and the same time, a very  recent one), is Ron Albanese, formerly known as Polka Dot, who had a very nice social/cultural marketing approach for children combined with a lot of rock & roll.

Remember that a couple of lines above I was mentioning about the fabulous cooperation between marketers and psychologists? Well… the lyrics of many songs that Polka Dot is playing are related to “The Robot from Honolulu”, “A Lotta Energy” and “I don’t wanna go to school”. The titles of these songs express exactly the behavior of almost any typical child. Consequently, the songs are enjoyed a lot, because their songs reflect EXACTLY the thoughts of children.

It was a live performance that took place in Hoboken, NJ. The concept was easy: call to action (parents, grandparents and children) united for a light summer evening. Apparently, this should have been all. But it wasn’t. And here is why: in the pause between ‘The robot from Honolulu”  and “Dress to impress” (interpreted by Ron’s daughter) the artist introduced some special thanks to the City’s Hall that… is organizing on the 30th September 2012 the Arts and Music Festival in Hoboken. This time, the event is more destined to parents but to children as well, because Ron will also perform then. In other words, while addressing special thanks (a message that was obviously for parents and grandparents) making a strong mental note about an upcoming event where Polka Dot will be and about a city event that will occur soon. Going deeper, always during events for children marketers introduce messages for parents as well (because it is obvious that children under 5 for example cannot join events by themselves). I went there just to have fun and I enjoyed this performance a lot even if it was not targeted to me. I felt child again and I experienced the children’s joy. They made my day!

However, my journalistic education does not leave me to remain on this perspective, but encourages me to go further and analyze the purpose of the event. Overall, it was a very enjoyable evening, it was a good branding/marketing tool for upcoming events organized by the City Hall and last but not least, an intelligent self-promotion. If I had to describe the event in 1 word it would be impossible because it was a bit of all these. It was not disturbing. I realized the other 2 purposes but I chose to focus on the first one: having fun.

This case study represents a very interesting way to understand that marketing has extended not only to product placement (in this situation even if the “product placement” was not tangible it was efficient through an event) but also to music and consequently to lyrics. There is a bit of manipulation everywhere.

I am not saying this is necessarily bad because at the end of the day it is your own decision if you accept to be manipulated or not. But what I do say is that marketing has extended in places where has never been before: elevator, subway tunnels and even on the sky. Marketing is everywhere and subliminal messages have strongly touched over the years.

The question for marketers still remains: shall we create events for children where parents will come anyway? Or would it be better to create events for parents with sections especially for children because adults will take them anyway?

To digest all this, you definitely need “a lotta energy”!

 

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Women Entrepreneurs #2: Debbi Fields – “I love chocolate” entrepreneur!

August 31, 2012 – 11:54 am
Cristiana
 

“I knew I loved making cookies and every time I did, I made people happy. That was my business plan”

Debbi Fields is the Founder of Mrs. Fields Cookies. small business started in 1977 in Palo Alto, California as Mrs. Field’s Chocolate Chippery. The name of the company changed because it started diversifying the products. The company grosses over $300 million from over 1000 outlets in 9 countries.

At age 20 Debbi managed to get a loan. The first day was not encouraging at all… at least at the beginning, because Debbi had to wait a couple of hours inside the shop for sales. Since there were no customers, Debbi decided to assemble a couple of cookies into a nice package and offered samples to people who were passing-by. Fortunately, by the end of the first day, she got $75 in sales.

As the business grew, Debbi started establishing a special relationship with her loyal customers: coffee and cookies were ready when they arrived. Her receipt for success was very easy: make people feel they are special.

The company has enjoyed a tremendous level of success and in present has 5,000 employees. Besides the business itself, Debbi took the time to publish a cook book entitled, “I Love Chocolate”. She is currently involved into the company’s operations management, new product development, public relations and of course, brand name management.

Debbi had been cultivating her entrepreneurial spirit since she was at the age of 13 when she received her first paycheck from a job with the Oakland A’s baseball organization. She found that “real” ingredients such as butter, vanilla, and real chocolate made for “real” cookies.

A couple of business lessons that should be learned from Debbi’s business journey are related to the customer shopping experience and… the name of her venture itself. In other words, not only was Debbie focused on making sure her customers felt important but she branded her company with care from the beginning. Therefore, she changed the name of the company early on to include a broader range of cookies; so the impact seriously increased.

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Top 20 most watched TED videos of all time

August 29, 2012 – 6:17 am
Damjan Dano
 

TED, the epic conference with a slogan “ideas worth sharing”, published their list of most watched videos of all times. Amongst the hundreds of inspirational videos gathered from official TED and unofficial TEDx conferences, Sir Ken Robinson tops the list with his speech about how schools kill creativity… The video has been viewed more than 13 million times on TED.com, iTunes and YouTube…

Here is the top video, and below it the list of the rest 19:

  1. Jill Bolte Taylor‘s stroke of insight (2008): 8,087,935
  2. Pranav Mistry on the thrilling potential of SixthSense (2009): 6,747,410
  3. Pattie Maes and Pranav Mistry demo SixthSense (2009): 6,731,153
  4. David Gallo‘s underwater astonishments (2007): 6,411,705
  5. Tony Robbins asks Why we do what we do (2006): 4,909,505
  6. Hans Rosling shows the best stats you’ve ever seen (2006): 3,954,776
  7. Arthur Benjamin does mathemagic (2005): 3,664,705
  8. Jeff Han demos his breakthrough multi-touchscreen (2006): 3,592,795
  9. Johnny Lee shows Wii Remote hacks for educators (2008): 3,225,864
  10. Blaise Aguera y Arcas runs through the Photosynth demo (2007): 3,007,440
  11. Elizabeth Gilbert on nurturing your genius (2009): 2,978,288
  12. Dan Gilbert asks: Why are we happy? (2004): 2,903,993
  13. Stephen Hawking asks big questions about the universe (2008): 2,629,230
  14. Daniel Pink on the surprising science of motivation (2009): 2,616,363
  15. Barry Schwartz on the paradox of choice (2005): 2,263,065
  16. Richard St. John shares 8 secrets of success (2005): 2,252,911
  17. Mary Roach 10 things you didn’t know about orgasm (2009): 2,223,822
  18. Simon Sinek on how great leaders inspire action (2010): 2,187,868
  19. Chimamanda Adichie shares the danger of a single story (2009): 2,143,763

Which one is your favorite? :)

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Apple worth more then Google, Amazon, Ebay and Facebook combined!?

August 28, 2012 – 11:58 am
Damjan Dano
 

Up until recently, the most valuable company in the history of modern business was Microsoft, with market valuation at $620.58 billion back in the 1999 – when they were doing things the right way… but since the evolution of the iPhone, the iPad and now possibly the Apple TV, the “most valuable company in history” throne has been taken by Apple, valued at approximately $623 billion.

Valued at this amount, Apple is worth more than Google, Amazon, Ebay and Facebook combined! Below are their market evaluations taken from Yahoo! Finance and visualized by the statistics portal Statista:

Apple worth more then Google, Amazon, Ebay and Facebook combined!?

Even if the numbers are not the exact match to the real world situation and might not be properly adjusted for inflation, they are pretty close to the real value of the companies…

Why is Apple so different and what is the company doing right?

Here are few things out of many that I think Apple is doing JUST right:

1) They do a great market research and know what customers really want – and they know how to present it!
- When Bill Gates introduced the tablet PC, the world didn’t really care, but when Jobs re-introduced the improved “tablet PC” iPad the world went crazy…

2) Understanding marketing and NOT cutting-out of marketing budgets when market goes in downturn
-  Apple understands the marketing industry very good, from guerrilla marketing to social media, they are staying on top of things. They are even controlling brand exposure and marketing efforts internationally – every campaign that goes must follow strict brand standards (like for example> No Flash banners) and must be approved by the corresponding marketing department.

3) Investing into R&D
- Apple set the standards for many things, they created modern products that people adore… in order to do this, a lot of hrs need to go into research and product development and Apple makes sure of that.

4)  Pushing the limits and don’t applying the “regular rules”
- Like Steve Jobs, many people in Apple are visionaries that don’t believe in the regular set of rules and are prepared to shift the market and consumer’s perceptions.

5) Believing in quality over quantity
- Apple believes in quality over quantity, even though they do have huge factories in China and all around the world, they would rather make people wait for their desired Apple product then to go with higher supply.

Ofc, no need to say that many other things make Apple such a great company – from trade operations to  what not… but I outlined my personal favs above. :)

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Facebook is rolling out new features and marketers are rolling their eyes

August 22, 2012 – 5:52 pm
Damjan Dano
 

Today the largest social network made few updates to their Open Graph platform… it allowed users to tag their friends in 3rd party apps like social games (ex: FarmVille) and geo-location apps (ex: FourSquare)… it also announced that sponsored links will be shown in user’s searches on Facebook.com.

Now your friends can tag you on 3rd party apps and you will receieve the notifications about the tag – via a Mention or Action method.

The difference between these two is outlined below:

This feature will not be added by default, users will give permissions for tagging to the apps, the same way they do now when they want to interact with some app. (tip: If you currently have some active apps on your profile, in order to use this you’ll need to renew the permissions, you can do that with  going to Account settings > Apps).

The second update marks a direct poke from Facebook to Google (maybe because of this Google is running around crazy), and will allow businesses to bid for user’s query in the search box and results page like shown in the image below:

While the tagging feature update is clearly a long awaited and requested from the 3rd party app providers and many users, the second feature update is clearly a shot to make the shareholders happy and to bump the price of current low-performing stock on the market.

Most likely the first feature will be accepted very well by the users, and the second one will likely be highly ignored with very low click-throughs as most of the current sidebar ads on Facebook. I have trouble figuring out why Facebook – platform that has tons of data and behavior patterns for all of us, still can’t figure out how to make money and how to properly integrate semantic marketing and targeting, but are copying some old-school concepts.

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Google buys print ad to advertise online ad!?

August 21, 2012 – 10:25 am
Damjan Dano
 

Google’s marketing team made another move that spiked a lot of controversy and conversations about online vs. offline advertising all over the net. Last week, Google bought an print ad space in the Canada’s Globe and Mail and National Post in order to advertise their online search ads:

With this ad purchase, Google is trying to show that print ads don’t really work and that their online AdWords platform is much more efficient…. but did Google really made the right move with buying this ad space and putting that ad copy there?

Many journalists, bloggers and media folks are making fun of the search giant’s move, claiming that with this Google actually demonstrated the value of print ads. Or maybe Google’s marketing department just wanted to poke at its direct competition and just spike a controversy. As Engadget states, the “universe has yet to implode.”

What do you make of Google’s ad?

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Women Entrepreneurs #1: Louise Hay – The Entrepreneur of the Mind, Body, & Spirit

August 18, 2012 – 5:13 pm
Cristiana
 

 

Louise Hay

Louise Hay, recently dubbed by the Australian media as the “closest thing to a living saint”  is known world-wide for her role in the self-help movement -  the relationship between the mind, body, and spirit. Her first book on this topic was published in 1976. 12 years later, that book was translated in over 25 languages and available throughout the world.

Her incursion into this approach started in New York City, 1970. She had joined meetings at the Church of Religious Science and began training in their ministerial program. Her popularity as a Church speaker increased and this position allowed her to counsel clients and become a full-time employee. This is just the beginning of her amazing story…

Louise used her experiences consulting to create a guide related to the mental causes of physical ailments. This guide represented the basic knowledge level for her successful book “Heal Your Body”. This book in combination with her speaking engagements and workshops on healing ourselves made Louise a world-wide success. Where do her experiences come from you ask? After she had been diagnosed with cancer, she chose to avoid surgeries or drugs. Instead, she created herself  a program based on psychotherapy, nutritional cleaning, visualization and affirmations. 6 months after she started this program, she was completely healed of cancer.

In 1980, she decided to put everything on paper. In what would become her new book, Louise explained how our emotional problems and physical maladies are caused by our beliefs. In the mid ‘80s, Louise started a support group with 6 men diagnosed with AIDS. In less than 3 years, the group’s members increased to 800. It was off these experiences that she penned, “The AIDS Book: Creating a Positive Approach”.

Louise successfully combined spirituality and her interest for health and the cause-effect relationship with our wellness into a business. What began as a small venture in her apartment transformed itself in a multi-million dollar company that has already sold millions of books world-wide. Not only is she a manager/entrepreneur, but she is also an amazing leader. She started the Hay Foundation that supports other organizations dedicated to helping individuals with shelter, hospice, food, counseling those affected by HIV/AIDS, poor women, and more.

Her amazing career has not stopped either. At 81, Louise released her first-ever autobiographical film based on her life and work: “You Can Heal Your Life: The Movie”. Despite her age, she is still lecturing around the world, primarily in Great Britain, Australia and Canada.

We end with the most powerful thoughts of Louise Hay:

1. “I love myself, therefore, I behave in a loving way to all people for I know that that which I give out returns to me multiplied.”
2.
“I only attract loving people in my world for they are a mirror of what I am.”
3.
“I am open and receptive to all the good and abundance in the Universe.”
4. “Today is a delightful day. Money comes to me in expected and unexpected ways.”
5. “I lovingly do everything I can to assist my body in maintaining perfect health.”

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The Customer Base

August 7, 2012 – 2:40 pm
Riyaad
 

What I naively thought was something that would pass by rather quickly has taken on a life of its own. How the statement from the President of Chick-fil-A could incite and inspire nation-wide action is not unfounded, but its longevity is both surprising and encouraging.

The Chik-Fil-A argument can go several ways – The statement itself, his First Amendment right to say it, the religious beliefs that make his statement resonate with others, the right of municipal authorities to use their political prowess to prevent a legally-compliant business from expanding into a new market, the effect it has on the largely independent franchisees of the corporation, selective outrage, the money the corporation contributes to the financial ‘attack’ on gay marriage and how that compares to other corporations ‘attacking’ traditional marriage with their own revenue. This list can go on and on.

Rather I’d like to look at the gay and lesbian marketing community which has gotten involved in the conversation and has warned of severe long term repercussions for this privately owned corporation. Recently, many marketers have come out appalled that Chick-Fil-A’s president would make such a remark and his sneak attack on the rights of the gay and lesbian community would be met with hostility from consumers throughout the country for a prolonged period of time. In many ways, I find this to be optimistic but misguided. It seems that many marketers have let the media upheaval influence them and in doing such, looked past the foundations of the business.

Chick-Fil-A is a ‘Christian-run’ business. This self-description is supposed to be apparent in the values the corporation holds for itself and for its franchisees. The business is notoriously closed on Sundays in concurrence with biblical tradition. This is probably the only area of impact where the consumers come face to face with the Christian values the company holds for itself.

The president’s statement in of itself is not surprising. The support for ‘traditional’ marriage is one supported by not only Chick-Fil-A, but by the church in which they derive their values. Alternatively, this position is has been the steadfast of American politicians for years – mainly based on the same source they claim, their own values derive.

With $4 billion in annual sales, this Georgia-based restaurant includes some 1,614 restaurants in 39 states. When discussing the long term impacts of Chick-Fil-A’s marketing, its important examine the business in proper context. In this instance, we want to look at where the chain lives, geographically. Chick-fil-A grew its business in the food courts and malls of suburbia. Its franchises are largely located in south-west suburbia. While they have expanded significantly in the past few years, the majority of their locations by and large are still located and operated in this southern region of the United States.

This region of the United States is notably more conservative than other areas of the country. It’s unnecessary to delve into political polling that supports this, as I consider this common knowledge. When we look at the media-driven outrage it sparked, it’s important to remember their perspective. The larger media outlets whose voices are dominant are by and large located in northern cities. These regions are considerably more socially and politically liberal. The views expressed on marriage by these sources are not necessarily reflective of those throughout the country.

Chicago, New York, Boston, California, etc. will be at the opposing end of the argument in comparison to the more conservative, southern United States (in which Christian values are more culturally dominant). Support for the ‘traditional’ interpretation of marriage is loudest in this southern region of the US.

Thus, their President’s stance against the legalization of gay marriage is not unlike that of its base. Its core source of income in which they collect nearly $2.7 million per year, per franchise is still in the conservative south. What marketers have overlooked or misinterpreted are the voices of dissent and have failed to identify Chick-Fil-A’s current customer model. Chick-Fil-A’s President may not have similar views to the stereotypical resident of New York or California, but his sentiments are in concurrence with many of those that live in Alabama, Georgia, South Carolina, and more – states in which Chick-Fil-A derives the majority of their business.

So what are the long term financial and marketing implications for Chick-fil-A? Nothing foreseeable to their existing franchises. While they may lose business in southern California where there is a significant presence and on northern college campuses and universities where they have began to expand, their loyal customer base will not be hostile or take particular offense to his statements and will continue to eat there regardless of what the media portrays the outrage to be.

 

 

 

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Project Re:Brief – Redefining online marketing

March 19, 2012 – 11:21 am
Damjan Dano
 

Project Re:Brief is Google’s latest initiative to expand the reach and awareness of digital marketing through re-adapting couple of the most epic marketing campaigns in the history of advertising for the new, modern audience that spends enormous amounts of time online and is constantly connected thanks to the latest gadgets and technology.

As Google states on the project’s website, internet advertising turns 18 years-old this year, but even after two decades of existence and constant innovation, digital ads are used simply to inform more than they’re being used to connect, engage and entertain.

Taking Coca Cola’s “Hilltop“, Volvo’s “Drive it like you hate it“, Alka-Seltzer’s “I can’t believe I ate the whole thing” and Avis’ “We try harder” campaigns, Google’s team of experts will try to re-imagine these iconic campaigns for the digital age.

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