While everyone’s been focusing on the lousy unemployment rate, no one’s been taking much notice of some news that may be very good indeed for those who have jobs – in advertising, anyway.
Deloitte recently released a State of the Media Democracy survey that indicates the recession has actually caused an uptick in the number of TV viewers who are tuning in on any given day.
While the survey also revealed that attendance at movies, concerts, and sporting events has gone down significantly, it seems that many Americans are filling the void in their entertainment schedule by tuning in to new or favorite programs more frequently. Purchases of video games and DVDs are also down, which may be another indicator as to why viewers are returning to the good-old TV.
One of the most telling statistics cited by the survey is that 34% of respondents ranked TV watching as their favorite media activity. This is good news for advertisers because it’s not only a huge increase from 2008 – where only 27% of respondents said their favorite media activity was television – but because respondents are increasingly seeing TV as their ideal medium.
It is likely that many respondents cited TV as their media activity of choice because of the associated cost of partaking in this activity as compared to something else like, for example, concert-going. That said, the survey was set up so an answer like concert-going could be given; the fact that TV was still the most-mentioned speaks volumes about the universality of this activity.
Whether or not it’s the cheapest form of entertainment available, it seems to be official: Americans have rekindled their love affair with the TV.
Peter Koepell is the President of Koeppel Direct and has over 25 years of advertising, marketing and media experience.
Before booking your travel to Las Vegas or San Diego, you may first want to get a few tips from “Saturday Night Live” travel expert Judy Grimes.
Did you miss out on the recent networking receptions in NYC and L.A.? Click here to view pictures from various events at Electronic Retailer’s Buzz page!
Microsoft’s new search engine has garnered a lot of media attention as it seeks to directly compete with Google, especially in a time when it seems no one in their right mind seeks to compete with Google.
The giant of the search-engine industry has its fingers in every possible pie, and it’s very rare that it doesn’t come out ahead. So what are Bing’s advantages and disadvantages?
Here’s two ways of gauging its chances of survival:
1. The Product Advantage
Bing is supposed to yield more relevant search results, which may actually sway consumers over to its side. The advantage to advertisers in that relevance is more precise, target marketing, which could change their game plan as well - if, that is, Bing’s searching is in fact superior to Google’s.
The content-driven approach helps sell that relevancy claim, as the system also adds consumer comments and reviews on the search results, e.g. getting customer reviews on a restaurant from services like Yelp.com.
2. The Marketing Advantage
Google has rarely spent money on advertising its own products. Consumers are ready to jump on just about anything that Google puts out, which means that the usual big spenders in a marketing budget are moot - television ads, for example. Microsoft’s Bing may have an advantage here, as the company seems to be willing to pour a near-endless stream of funds into promoting its new product.
It’s not a bad strategy, especially since nothing short of full media saturation is likely to sway loyal Google enthusiasts. Since they have no competition in many of their outlets, it might just give Bing a chance to play with the big boy.
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Tomorrow, the Consumer Protection Subcommittee of the Senate Commerce Committee will hold a hearing entitled “Advertising Trends and Consumer Protection.†The hearing will consider several issues in advertising, including the use of the word “free†and Endorsements and Testimonials. This is part of a broader reevaluation of the FTC’s powers and funding. An explanation of tomorrow’s hearing is really not complete without an explanation of last week’s hearing. Last week, from the first opening statement to adjournment, the hearing focused on testimony from consumer groups and emphasized that consumers are targeted by scams and needed additional protection from the FTC (P.S.- You can watch this hearing and kind of see me in the background on C-SPAN here). On a panel of four, a lone dissenter, Tim Muris, former FTC chairman, claimed that the FTC did not need a major expansion in order to effectively protect consumers.
In contrast, this week we have two ERA members testifying and one representative from the National Advertising Review Council (NARC), which administers the ERSP program (ERA’s independent self-regulatory program). We look forward to hearing some dynamic testimony from Guthy-Renker’s Greg Renker and Product Partners’ Jon Congdon. We worked hard to make sure our industry was represented and that this hearing would be more balanced than the last. We’re certain that Renker and Congdon will provide effective counterpoint claims that the FTC needs more authority on the testimonials issue. They can show that our industry is enthusiastic about creating an environment that protects consumers. They are our customers for Pete’s sake! They will also show how effective principled self-regulation is in promoting honest business practices.
For more information or to watch tomorrow’s hearing live or immediately upon completion, click here. (The video may not post until the conclusion of the hearing)
Follow me on Twitter for my live updates from the hearing: Tomi_ERA
A large Calvin Klein billboard in Manhattan’s Soho neighborhood has managed to raise some eyebrows. As discussed in an MSNBC article, fashion advertising often pushes the envelope, but some wonder if this has really gone too far. Obviously there were people on both sides of the debate:
“I think it’s obscene,†said Rachelle Brunn, who was passing by the extremely large billboard in Manhattan’s Soho neighborhood. “They always have ads that are pushing the envelope, but this one is the worst I’ve seen since I’ve been here. My biggest concern is that it gives teens the wrong idea.â€
But Carmen Guzman wasn’t bothered by the ad. She said Americans see this kind of advertising everywhere, especially in the Big Apple. “This is really nothing new,†Guzman said.
Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
As the largest owner of cable networks, which include TNT, Cartoon Network, CNN and HBO, Time Warner has been closely watching broadcasters ABC, CBS, NBC and FOX work through the process of distributing TV online. Bewkes, Time Warner CEO, is planning to provide cable programming on the web in places like Hulu, MySpace, Yahoo TV and even YouTube.
The catch: To view the content for free, you have to be able to prove that you subscribe to pay TV through cable, satellite or Telco.
Free access for those already paying for service. Beweks told Advertising Age, “If you want to watch your favorite TV network or shows through broadband on any device – PCs or mobile – you can do it as long you subscribe to any multi-channel provider.” He goes on to say, “It’s a natural extension of the existing model.”
What’s the benefit? Some media experts are skeptical of Beweks’ plans, but there are also many who feel like a change is in order. After all, a year ago most doubted Hulu would be found appealing to online users. Some fear online programming distribution could soon replace cable TV and destroy the industry.
Time Warner’s cable CEO Glen Britt sees the phenomenon of viewers dropping cable for free content online as a significant growing problem.
What do you think?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
Watch as ERA CEO Julie Coons delivers a sneak peak of what attendees can expect from ERA’s upcoming 2009 D2C Convention in Las Vegas September 13-15. Register now!Early bird ends July 1!
If you are thinking about buying something online, one of your first steps in evaluating the product might be to see what kind of reviews the product has received. But what if the reviewer was paid to give a favorable review? This is a practice that clearly has some troubling implications. That’s why the FTC recently addressed this practice in the Guides Concerning the Use of Endorsements and Testimonials in Advertising (yes, this is the same proposal that would require evidence of typicality for some testimonials).
But, consider this: You want your product to appear on reviews because you believe it will help increase the visibility of the product or brand. You send a free sample to a well-known blogger and you explicitly tell them they should be neutral in their review and should disclose that they received the product for free. Under the FTC’s proposed changes you may have liability. If on the same day you also send your product to a product reviewer for a publication without any agreement requiring disclosure, and they do not disclose that they received the product for free, you do not have liability!
Product reviews online come in many forms. In some contexts consumers will expect that the product was given to the reviewer as a free sample. If a college student reviews a new game console every week, would anyone really think that he or she is spending thousands of dollars a month to share friendly advice? This is a complicated issue deserving careful analysis; the FTC must consider the nuances of product reviews before adding new regulations for bloggers.
Get involved! You can learn more and do something about these proposed changes here.
For more information on ERA’s government affairs efforts, click here.
In tough times like these, the first thing many marketers cut back on is marketing and related marketing programs.
Advertising Age recently reported a $600 million cut to advertising and promotional budgets. Even Federal Express is feeling the pressure. FedEx, along with several other advertisers, dropped out of the Super Bowl after having participated for the last several years.
Spending cuts are affecting many different businesses. However, media planners who anticipate cutting resources in these tough times may want to reconsider acting too fast without considering all the facts.
Conservative Consumer Behavior
Yes, the news is filled with negative stories about cautious consumers in this fledgling economy. But even though consumers are spending less, experts have noticed their spending behaviors mostly affect industries including shopping, traveling, entertainment and consumption of higher-end brands. As a result, consumers are responding to these tough economic times by turning to discretionary leisure activities that don’t cost a lot.
Connecting with Consumers
But advertisers can still benefit since more time spent watching television, surfing the Internet, playing video games and engaging in other at-home activities means it could be easier to catch consumers in a more receptive state of mind.
When consumers engage in activity outside of home, there are usually too many distractions like driving, cell phone use and interacting with others that easily diverts their attention.
Advertisers know that their messages are much more effective when delivered in a less distracting environment – whether it’s through television, a magazine or the Internet. This gives them the best opportunity to establish a connection.
Do you agree?
Peter Koeppel is a Wharton MBA and president of Koeppel Direct, a full-service media buying agency based in Dallas.
According to a recent article in Online Media Daily, Craigslist founder Craig Newmark said the site does not currently plan to discontinue its “erotic services” listings, despite renewed pressure from law enforcement authorities triggered by the recent “Craigslist murder.”
In an interview with ABC Nightline’s Martin Bashir, Newmark also said he disagreed that the site facilitates prostitution. “I wouldn’t put it that way; no, I disagree,” he responded when Bashir confronted him with ads that appear to be for prostitution and asked whether the site facilitates such activity.
Internet law experts say that legal action against Craigslist isn’t likely to get very far because Section 230 of the Communications Decency Act states that Web sites are immune from liability when users of the site violate state law.
“There’s no way you can justify spending $3 million on a thirty-second Super Bowl ad, but you sure as hell can justify a half hour infomercial that you know the cost of when within 72 hours you know the revenue you generated from it.” — Chris Rebholz, president of Christopher Morgan Fulfillment
Look for more insights from Chris and other DR fulfillment leaders in Electronic Retailer’s upcoming May issue! Do you have an industry quote or industry event pictures worth sharing? Post a comment or send an e-mail to eMedia editor Pat Cauley at pcauley@retailing.org for possible inclusion.
MEXICO CITY—Mexico is protesting what it says is a whopper of an insult, according to the Associated Press. An advertisement for Burger King’s Texican Whopper burger that has run in Europe shows a small wrestler dressed in a cape resembling a Mexican flag. The wrestler teams up with a lanky American cowboy almost twice his height to illustrate the cross-border blend of flavors. “The taste of Texas with a little spicy Mexican,†a narrator’s voice says. The taller cowboy boosts the wrestler up to reach high shelves and helps clean tall windows, while the Mexican helps the cowboy open a jar. Mexico’s ambassador to Spain said Monday he has written a letter to Burger King’s offices in that nation, objecting to the ad and asking that it be removed. Jorge Zermeno told Radio Formula that the ads “improperly use the stereotyped image of a Mexican.â€
While everyone’s been focusing on the lousy unemployment rate, no one’s been taking much notice of some news that may be very good indeed for those who have jobs – in advertising, anyway.
In addition to its upcoming 
Microsoft’s new search engine has garnered a lot of media attention as it seeks to directly compete with Google, especially in a time when it seems no one in their right mind seeks to compete with Google.
Tomorrow, the Consumer Protection Subcommittee of the Senate Commerce Committee will hold a hearing entitled “Advertising Trends and Consumer Protection.†The hearing will consider several issues in advertising, including the use of the word “free†and Endorsements and Testimonials. This is part of a broader reevaluation of the FTC’s powers and funding. An explanation of tomorrow’s hearing is really not complete without an explanation of last week’s hearing. Last week, from the first opening statement to adjournment, the hearing focused on testimony from consumer groups and emphasized that consumers are targeted by scams and needed additional protection from the FTC (P.S.- You can watch this hearing and kind of see me in the background on C-SPAN 
A large Calvin Klein billboard in Manhattan’s Soho neighborhood has managed to raise some eyebrows. As discussed in an 
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Time Warner is planning to end access to free content online by making consumers of Internet TV prove they’ve already paid for it.
If you are thinking about buying something online, one of your first steps in evaluating the product might be to see what kind of reviews the product has received. But what if the reviewer was paid to give a favorable review? This is a practice that clearly has some troubling implications. That’s why the FTC recently addressed this practice in the Guides Concerning the Use of Endorsements and Testimonials in Advertising (yes, this is the same proposal that would require evidence of typicality for some testimonials).
In tough times like these, the first thing many marketers cut back on is marketing and related marketing programs.
Last month I wrote a post about 
