ANA Marketing Maestros

Opportunities & Key Threats for TV and Video

By Bill Duggan

For the fifth time since 2002 ANA has partnered with Forrester Research on survey work to better understand advertiser perceptions and use, both now and expected in future, on television and video.  Forrester has summarized the key research findings and provided their perspective on the results in their report titled TV Advertising Budgets Are Under Siege. Meanwhile, the following provides a topline from ANA’s point-of-view.

Overall:
The death of television has been greatly exaggerated. While it’s true that television budgets have been reduced (per the title of the Forrester report), those reductions are more a reflection of broader economic conditions impacting all media. The reductions in television spending have, in fact, been less severe than most other media. 

From the broadest perspective, when asked to “comment on the value of TV advertising for the specific needs of your company” representative responses were:
• Pro: “Television is essential for building broad reach and brand awareness.”
• Con: “Television’s effectiveness/value is diminishing.”

The ANA/Forrester survey helps point to many opportunities, as well as some key threats, for television and video.

Opportunities:
• Branded entertainment: Eighty percent of advertisers agree that branded entertainment will play much more of a role in television advertising. Thirty-eight percent plan to spend more on branded entertainment in 2010 as an alternative to the traditional 30-second TV spot.
• Addressable television: Seventy-eight percent of advertisers are interested in the ability to target consumers more precisely—by demographics, zip code, or purchase behavior. However, advertisers don’t expect to pay much of a premium for such targeting.
• Interactive television: Seventy-five percent believe that interactive television will be an effective source of lead generation, but only 28% plan to spend more on interactive ads in 2010 as an alternative to the 30-second TV spot. Advertisers may want to see the interactive television advertising landscape further develop before they increase spending.
• Brand-specific commercial ratings: An overwhelming 82% are interested in having ratings for individual commercials (also called brand-specific commercial ratings) available for analysis.  
• Online video ads: Forty-six percent of advertisers plan to spend more on ads in online video/online television shows in 2010 as alternatives to the traditional 30-second TV spot.
• Place-based video: Sixty-four percent agree that place-based video in stores, elevators, and other locations will become increasingly important.

Threats:
• Overall effectiveness: Advertisers believe that television advertising is not as effective as it used to be. Sixty-two percent of respondents think television advertising has become less effective in the past two years.
• Clutter: Sixty-nine percent of advertisers would like fewer commercials in a pod in order to gain visibility.
• DVRs and video-on-demand: Sixty-six percent think that DVRs and video-on-demand will reduce (61%) or destroy (5%) the effectiveness of the 30-second television commercial.
• Shifts to other media: Advertisers plan to spend more on various forms of non-television media including social media (77%), web advertising (73%), search (59%), email (46%), and mobile (46%).

ANA members can download the complete report at www.ana.net/thoughtleadership.

2010 ANA Key Findings Report--ANA Recession Survey 4th Edition

By Bill Duggan

ANA recently fielded the fourth wave of what has become known as our “recession survey.”  Over the past two years ANA has polled our members at six month intervals to determine how marketing and advertising budgets are being impacted by economic conditions. 

The recession may be officially over, but it appears that marketers have reset their expectations and a greater degree of frugality has set in. Cost savings and reductions may be the “new normal” even as the economy improves. However, the deepest cuts are likely to have already been made.

Highlights from the most recent survey:

• Marketers are still being pressured to reduce their costs and spending in light of the economy, though reductions are less severe than were reported in the three previous surveys. 
• The top four ways marketers are reducing costs and spending:
  1.  75 percent are challenging agencies to reduce internal expenses and/or identify cost reductions.  
  2.  73 percent are reducing departmental travel and expenses.
  3.  53 percent are reducing advertising media budgets.
  4.  50 percent are reducing advertising production budgets.
• Though the majority of marketers forecast no change in spending for the balance of 2009, predictions about advertising budgets in the next six months suggest some degree of optimism since the last survey.
  1.  59 percent expect budgets will stay the same.
  2.  22 percent forecast that budgets will be reduced (versus 39 percent, 49 percent, and 53 percent respectively in the last three surveys).
  3.  19 percent are hopeful budgets will increase.   
  

Full survey results are available at www.ana.net/recessionsurvey.   

“My Bologna Has a First Name”

By Susan Burke

This week, two of the most famous jingles in advertising retired—Oscar Mayer’s “My Bologna Has a First Name” and “I Wish I Were an Oscar Meyer Weiner.” The shift, engineered by the brand’s new advertising agency, McGarryBowen, is part of Oscar Mayer’s efforts to promote all of their meat products, not just bologna and hot dogs. In a January 14, 2010 New York Times article, Sean Marks, director of marketing at Oscar Mayer, said “there was an opportunity for the brand to get back to that sort of joy and exuberance that I think the brand has used throughout the years.”

The new campaign centers on a tag line that Oscar Mayer (a division of Kraft) believes better captures the modern spirit of their brand: “It doesn’t get better than this.” The new commercials, which premiered during Sunday night’s Golden Globe Awards, focus on images of families and suburban life. And while there is still a song associated with the ads, it is no longer a jingle.

Although I was never a bologna eater, even as a child, I certainly knew those songs, just like most of you. In fact, “My Bologna Has a First Name” was probably a huge contributor as to why I am able to spell “b-o-l-o-g-n-a” today. In honor of childhood memories, take a quick break and enjoy a little advertising history:

Are You Relevant?

By Adrienne Tallacksen

More marketers are turning to social media as a way to reach consumers, as shown in the recent ANA study “Harnessing the Power of Newer Media Platforms”. In 2007, 20% of survey respondents were using social media. The 2009 survey found that 66% now use social media platforms. Just over half of marketers surveyed are funding newer media spending with dollars shifted from traditional media.

When moving into the newer media space, marketers must continue to remain relevant to consumers. In a presentation at the June Central Region Digital Marketing Meeting, Google’s Jim Lecinski spoke about staying relevant in a presentation titled “Connecting with the Recession Shopper.” Lecinski said marketers must be useful, helpful, and relevant; not interruptive, shocking, or annoying.

If I’m looking for tomorrow’s weather forecast, I am definitely not interested in a candy ad taking up half of my screen. I’m trying to think of a situation where this ad might be relevant, and I’m coming up with nothing. However, an ad for shipping services on a social networking site for business professionals could be useful. I might not have an immediate need to ship something, but the ad is at least in the ballpark of relevancy.

ANA Television Advertising Committee Point of View On Local TV Ratings

By Bill Duggan

Nielsen recently announced its decision to modify the reporting data streams made available in local television markets, with plans to eliminate the Live Only data stream from overnights and electronic data files and replace that with the new Live + Same Day stream.  The ANA Television Advertising Committee strongly opposes the elimination of the Live Only stream and has requested that it be retained.

On the national level, the evolution from program ratings to average commercial ratings has been a positive step, but it is important to point out that on the local level program ratings continue to be used.
Therefore, the Live + Same Day stream does not take into consideration commercial skipping in DVR playback. So local commercial viewing would clearly be overstated.

Further, many advertisers and agencies negotiate local market deals with the media using Live Only ratings as their currency, and the removal of the Live Only stream obviously impacts such negotiations.
The Live Only stream is especially important to certain advertisers, including direct marketers, retailers, and those with a daypart-specific message (e.g., coffee in the early morning).

The ANA Television Advertising Committee has been a strong advocate for greater granularly in commercial ratings and encourages the industry to find a mutually beneficial solution for local ratings for advertisers, agencies, and the media.

What Can Advertisers Learn from TV?

By Susan Burke

CBS’s hit show How I Met Your Mother is not only funny, but also a great example of how a sitcom has extended its life beyond a 30 minute time slot. Fans of How I Met Your Mother can visit the show’s homepage to access character blogs, trivia games, full episodes, and desktop apps. Many other shows offer this type of content on their homepages, but How I Met Your Mother has raised the bar by also designing separate websites to house the videos “created” by characters from the show (and they make a lot of them!), such as Marshall’s “Best Night Ever” video, Barney’s video resume, or the now expired SlapBet countdown clock.

These videos allow the show to remain a part of viewers’ lives after Monday night has come and gone. They also can be easily forwarded to friends who may not even watch the show. Additionally, NBC’s The Office has gotten into the value-added video game with their new “Subtle Sexuality” music video, featuring characters from the show.

   

These videos help TV shows reach and excite their biggest fans. They also give the people who work on the show a chance to push the envelope beyond what can be shown on TV because of time restraints or content issues. Why aren’t more advertisers doing the same? Value-added, entertaining, online content is a great way to turn a casual consumer into a brand loyalist.

Snapshot of the ANA Annual Conference

By Cara Schultz

Well, I survived my first conference with the ANA and I have to say, it was a great experience. The speakers were extremely insightful and entertaining, from Eric Ryan’s presentation in which he displayed their new commercial (which I have to say is hysterically genius) to David Jones’s speech on his theory: “the new world of marketing is square.” Overall the speakers were amazing, they gave great industry insights. I learned an incredible amount in a short period of time. Stephen Quinn, CMO of Walmart explained that media spending, customer segmentation, an emphasis on multicultural markets and marketing analytics helped to improve the overall in-store experience.  Michael Keller, Chief Brand Officer for Dairy Queen talked about his company’s online presence.  DQ has built an online consumer following with its Blizzard Fan Club, Facebook page, and two unique online games.
 
Not only did I pick up numerous nuggets of information from the top industry gurus, but I also had the opportunity to speak to several attendees at the conference. I asked questions, like what sets their company apart from the competition, how are you battling the recession, and of course how is your company dealing with advertising on multiple platforms (Web, print, mobile, e-books, etc). To watch and listen to what people had to say, check out our original videos. Chime in with comments and suggestions…I plan on continuing our ANA videos, and they will only get better with your feedback!

To Tweet or Not To Tweet…

By Cara Brooke Schultz

It seems as if everyone is tweeting these days. In fact, your boss might even encourage you to write tweets. However, after reading an article on imediaconnection.com, I felt compelled to throw a few tricks of the trade out there. iMediaConnection rounded up a few sceneries when you should refrain from tweeting:

1. Do not tweet when you are in the middle of a crisis. If something terrible happens and you are dealing with a ton of negative feedback from customers, stay calm and try to rectify the situation prior to tweeting. One tweet announcing the change is enough.
2. Try to steer clear of all negativity on your twitter page. There is no reason to make fun of another company, a geographical location, or another person. Although you might think you are being funny, chances are you will offend someone.
3. Do not post everything online for the world to see. Always get the go ahead to broadcast breaking news, new deals or any developments that might come up in the office. Most likely, your boss will want to wait before making the news public.

I also wanted to add a few suggestions to the list:

1. Don’t write negative tweets about your competition. Your customers like you for several reasons, highlight those reasons and leave out the negativity!
2. Think before you tweet. Have well-thought out and spelling-error free tweets before making them live online. Remember, tweets cannot be edited once they go live, so do a thorough edit before posting.

Before writing your next tweet—take these ideas into account—it will help create a positive twitter experience.

Magazine Bleed Charges - Why Do They STILL Exist?

By Bill Duggan

I’d like to share a letter I wrote to the editor of Ad Age, printed in the September 28th issue:

 

Publishers should cut ‘bleed’ fees

Regarding "Condé Nast Execs to make Big Cuts, Insiders Say" (AdAge.com, Sept. 14): It would be terrific if McKinsey's analysis went beyond cost controls and also included a review of Condé Nast's pricing policies to ensure those policies are in alignment with marketplace realities. One such policy under scrutiny from   advertisers is charging an incremental fee for bleed ads. Once upon a time, publishers may have had real costs associated with the production of bleed ads. But today's printing and production technologies no longer require the press stoppages and plate changes that resulted int hose real costs. Condé Nast is one of the few remaining major publishers (Hearst is another) that has not eliminated these obsolete bleed charges, and ANA strongly suggests that the time has come to do so (end of letter to the editor).

 

More on bleed charges in the one page white paper – Are Magazine Bleed Charges Legitimate? ANA and 4A’s have reached out to Condé Nast on this issue numerous times since we published this white paper in January and all those requests have been completely ignored. Not even the courtesy of any response or acknowledgment. Meanwhile, Hearst’s response has been, “At the advice of our counsel, we will not discuss pricing policies in a group setting. So, we will take a pass on this.” 

 

We encourage advertisers and their agencies to discuss bleed charges with these respective publishers (and any others that have such fees). Not only are bleed charges no longer justified, but they actually cost advertisers additional money as sometimes two versions of creative are prepared (bleed and non-bleed) and the agency time and resources spent developing that extra creative and negotiating reduction/elimination of the bleed fees leads to higher agency compensation costs to advertisers. Finally, if publishers have a legitimate reason to charge for bleed, let’s hear it—after all this is a blog and the dialogue would be appreciated.

Getting the Most Out of Your Social Media Campaigns

By Irina Skaya

A recent ANA/BtoB Magazine/Mktg survey reported that 66 percent of marketers utilized social media in 2009 compared to 20 percent in 2007.  In order to fund their new media efforts, 55 percent of marketers have already shifted funds from their traditional media budgets. In 2009 Web site ownership, search engine marketing and display advertising are among the new media platforms that received the most funding. And in 2010, blogs, mobile and video are supposed to be at the top of the list.

According to the survey, The top concerns for marketers when considering newer media platforms are the inability to prove ROI (45 percent) and having metrics to properly allocate the mix of traditional and digital media (43 percent).  Social media analytics is young and most marketers do not know where to start.  First thing is first: know what your objective is, what you are trying to measure. Do you want to know what people are saying about your brands? Do you want to see how people are interacting with your brands on specific social networks? Or do you just simply want to know upcoming social media trends or maybe what your competitors are doing in the social media space?

As the social media guru of the ANA, I always look for new measuring and monitoring social media tools. I came up with a social media metrics superlist-my favorite online tools that will help marketers get started with social media analytics.

PS. They are all free!

• Twitalyzer: measures brands' and individuals' impact and success on Twitter by reporting on relative influence, signal-to-noise ratio, generosity, velocity, clout.
• Keotag: monitors mentions of your brands across dozens of Web sites, including Technorati, Blog Pulse, Google Blog, del.icio.us, Blinklist, Twitter, Bluedot, Newsvine, Digg, Blog Lines, YouTube, and more.
• Trackur: a 14-day free trial allows you to monitor your brands' online reputation and your competitors', and track your campaign's effectiveness.
• Social Networking Media ROI Calculator
• Blog Metrics

The ANA Marketing Insights Center has a great number of resources for marketers who would like to utilize social media to learn more about their customers and engage them directly and involve them in their brands.  In the ANA Today newsletter, "How Social Media Transforms Marketing," and "Skittles: Follow the Rainbow on Twitter" are the top-read articles. The above articles are available for ANA members only. If you are not an ANA member, browse through our 101 library where we have an abundant amount of social media resources, including "Marketing with Twitter."

If you use other social media tracking tools, please feel free to share them with us. We'd love to hear from you! Leave a comment or email me at [email protected].

Social Networks

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