Wednesday, January 27, 2010

Are you ready for some.... Hail Mary Ads??

Every year, the "Big Game" as it is often referred to so there is no infringement upon copyrights, presents us with the two best teams in the NFL duking it out to determine who can hoist the Vince Lombardi trophy and say for one year, they are the best! But as one of the most highly watched events during the year, it lies way beneath the game and turns into a marketing frenzy. Every "big box" store vies for the correct time during the game in which their ads will provide the greatest connection, the greatest number of viewers and ultimately, the greatest return on investment.

Let's face it, some companies throw their entire marketing budget out of the window during the "Big Game" as a means to dig out from a dismal Holiday season as it pertains to sales. This proverbial 'Hail Mary' of advertisements features the work of some of the nation's premier ad agencies as well as some organizations that choose to use their own marketing department.

The "Big Game" advertising is not necessarily about introducing the world to your product, as it is introducing the world to your name. If you are a "big box" store and your name is on the tip of every person's tongue day in and day out, then this game is more about maximizing on that customer's sales and also retention. Some "big box" stores may use this opportunity to promote a new product (i.e. Pepsi- Wild Cherry pepsi, Clear pepsi as well as many others).

Countless viewers turn in, not for the play on the field, but for the delight during the commercials. This is not only the most important game for the two footballs teams on the field but the most important game of the year for advertisers.

Each year, following the "Big Game," countless bloggers, journalists and other writers will break down and critique each ad to determine who are the "winners and the losers." But there merits are based on humor and viewability, not necessarily on impact and revenue generation. Many years ago in the heart of the "Beer Wars," Budweiser put together the 2 most impactful "Big Game" ad campaigns of recent years. The Bud-weis-er frogs and the Wassssup guys ads were huge in terms of impact. Having countless people the next day standing at the water cooler saying Bud-weis-er not only keeps that name ingrained in their heads, but also for the select few who were not watching the game, it offers a stem of curiosity and draws more attention to your brand.

Unfortunately with the economy hitting everyone hard, the reigns have been pulled back on numerous ad campaigns but I feel this will bring out the best in all the campaigns. No longer can you just 'write a blank check' to create the best and most impactful campaign.... you need to earn it. Ad organizations will be working hard trying to determine the best campaign and the best will be used with the least. This is exactly the medicine the "Big Game" advertisements needed.

Whatever team wins the game is not as important to me as where the evolution of big market advertisement is going!

Friday, January 15, 2010

Desperate Times call for.....

Given the recent tragedy of the earthquake in Haiti, it is truly inspirational to hear the stories of a select handful of companies willing to reach out. Reality is that 2009 was a terrible year for a vast majority of the World. It is rare to find an individual or organization that wasn't adversely affected by the Global Economic Climate in some form or the other. Some of the largest and most prominent organizations in the world were either closing their doors for good or struggling to keep them open and in an instant, when a country who had nothing, lost everything, the power of the human spirit takes over.

Every day we are competing with our fellow man for everything. Competition is the kindle to our fire and without competition, you would be hard pressed to find success. We are bred to be competitors, it consumes us and it is ingrained in our brains that 2nd place is the first loser. But yet in a time when our fellow human race is devastated by an uncontrollable and irreparable disaster, it is the unyielding human spirit that takes over. We will give someone we have never met or will never meet the shirt off of our back and our last piece of bread just to ensure they can make it another day. the relentless dedication to survival and the refusal to fail is what fuels our efforts and at the end of the day, if that stranger who you will never meet can breathe a sigh of relief while looking into the eyes of their loved ones, then you can truly declare success.

This tenacious will for the human spirit has also seeped into the ranks of the largest corporations in the world and their impact has truly changed lives. Target's unbelievable $500,000 donation to the relief efforts and the volunteer event taking place 1/25/10 is an first hand glimpse of truly what makes up a world class organization. Despite the fact that Target has "nothing to gain" from a business perspective in their donation given their lack of placement in Haiti, their human spirit trumps any "business" demands. Their willingness to hand over something they world diligently to achieve to complete strangers who chances are will never be able to even step foot in a Target store, shows an unfaltering dedication to life.

Publically the economic climate has hit noone harder then it hit the banking industry. In the face of an uncertain future, Bank of America donated $1 million to the relief efforts about as quietly as you could. No listing on their website, no tabloid promotion, just handing over a check and praying for a positive outcome as a result. There is no "agenda" involved, only hope.

A company on the forefront of the relief efforts is UPS. With a donation of $500,000 and an additional $500,000 in services including shipment of needed items to Haiti also shows a level of spirit not seen in "typical" society. Many of the services are provided by employees who are willing to put their lives at risk in order to help their fellow man. UPS pilots willing to fly planes for free to deliver goods is the perfect example of how far the human spirit can go. Most of all, UPS is a business that charges for shipment and when they are willing to forego their business model to aid a country who has just lost everything, teaches a wonderful lesson.

A majority of the citizens of Haiti live for under a dollar a day. It would take an entire week of their "livelihood" to afford a coffee, something we take with a grain of salt. One of the poorest countries in the world had something in common with the rest of the world, and that is love. The images shown during the news coverage, while troublesome to view, also showed me something that made me smile. A mother, who probably hasn't slept or ate since the occurance of the disaster who probably has been saturated with pain, shown something we all strive for.... a smile and warm embrace to her child. We are all here with a moral obligation to leave this world better then we have received it. I truly hope this feeling is contagious and the likes of the world continue in this unbelievable act of giving. Our thoughts and prayers are truly with those in Haiti.

Tuesday, January 12, 2010

How to Lose a Customer in 28 Days...

With the ever shrinking consumer dollar continuing to cause the demise of countless businesses, it is almost comical to see organizations still doing everything they can to eliminate the possibility of ever reclaiming those lost dollars.

Case in point is the recent report that "Netflix" and "Warner Brothers" outlined in this article, confirms that Netflix will not make new "Warner Brothers" releases available until 28 days after their initial release, thus making their customers wait longer for a movie they evidently might want to see. This agreement was surely made with the idea that it would generate new DVD sales for these particular releases as a result of their limited availability. What "Netflix" and "Warner Brothers" seem to neglect several points in coming up with this seemingly hasteful decision.
1. The consumers who haven't gone to the movie theaters to see "said" title have already waited between 2 - 6 months for the release of this movie to DVD. What is another 28 days in the grand scheme of things??
2. With the ever growing popularity of Coinstar Inc.'s RedBox, what would deter customers from utilizing this service that does not have the aforementioned hand-cuffing as it pertains to the DVD release date?? This would also allow customers to enjoy another service and possibly cancelling/downgrading their membership with Netflix.
3. What customer in this current economic climate would "roll the dice" and buy a $20 movie that they most likely haven't seen. That seems like a bit of a steep risk.
4. It instills in customers minds that "Warner Brothers" must not be confident in the idea that once you rent the movie via Netflix, you will want to own that movie.

Renting a movie via "Netflix," "Blockbuster," "Red Box," or any other medium works the same way as hearing a particular song or artist on the radio and liking the song so much you want to buy it. Same applies to movies. I can't count on my hands how many people I have talked to who have rented a movie via Netflix and then bought that movie shortly after because it was "that good." As a consumer who have purchased over 500 movies as well as posters, and other various memorabilia from movies, I feel it is a lack of confidence shown by "Warner Brothers" in their movies which caused a reason for this agreement.

I also feel "Netflix" is basically telling customers that you pay for a service but we will hand-select what you can or can't utilize regarding your service. I have been a "Netflix" customer since its inception and have used it to view many movies/shows/documentaries ranging from new releases, to classics, and catalog titles but am basically appalled at the idea that they will not allow me to utilize the service I pay for. I have many friends/colleagues who are turning to Coinstar Inc.'s Red Box to get their new releases and given the agreement reached, I will be forced to do the same thing. This will obviously result in me lessening my subscription to "Netflix" and reallocating my funds originally set aside for Netflix and giving them to Red Box.

Enough of the negative thoughts as a result of this agreement, I would be willing to offer some advice from a customer and outsider to the deal as how this would have been beneficial to all involved.
1. I have always thought that "Netflix" did not advertise the new release movies as well as they could have and I am not only talking about renting. If members had the ability to purchase movies on their Netflix account and have them charged to the Credit card linked to that particular account. I am also not talking about "pre-owned" movies but brand new movies offered to Netflix customers at a "special price" and have this price offered only during the first 28 days following the release of the movie. This way you will generate new DVD sales to "Warner Brothers" (which obviously seems to be the big issue here) but also offer a means of customer appreciation to Netflix members.
a. Additionally this would increase the need for "new release" movies as in the aforementioned article Netflix states is one of their lower demanded items. The need for "new release" movies would in turn generate a need for Netflix to buy additional copies of these movies from "Warner Brothers" and while sold to Netflix at a discount, would still movie volume which assists the bottom line, not to mention the amount in royalties that Netflix pays to the movie studios on their releases when rented.
b. But the benefits do not end there..... After about 6-8 months when the "novelty" of that new release diminishes, and Netflix as a result has an abundance of these copies available, can start to offer them at a heavily discounted pre-owned price. This would clear inventory and still turn a profit on the backend sale of the DVD.

Just one idea and I am obviously not in the industry but it could work?? What are your thoughts?