Thursday, January 31, 2013

See a Super Bowl ad in a theater near you

In the few weeks between the New Year and Valentine’s Day, advertisers and Americans alike look forward to one major event- The Super Bowl. For some, they watch it for the sports, others for the entertainers, and lastly, for the commercials. If the highly anticipated commercials were released earlier than February 3rd, would it take the fun out of it? Kia Motors America apparently doesn’t think so.

According to MediaPost, Kia is going to release its Super Bowl commercial early in movie theaters. This will be the second year the car-maker has implemented this strategy. The ad will be released in two parts across 19,000 theaters nationwide through the NCM Media Networks. The first part will be a :15 teaser running Friday, January 25th to lead up to the full :60 spot premier on Friday, February 1st. The ad will run during the FirstLook pre-show program. Titled “Space Babies” the commercial will promote Kia’s 2014 Sorento CUV.

Running a Super Bowl commercial in theaters prior to the actual game has never been done before until Kia. To see the effectiveness of this strategy, NCM Media Networks and Nielsen did some post-game research from the 2012 game. People who only saw the ad during the game had a 46% unaided recall rate. For those who saw the ad in the theaters prior and on TV during the game, the unaided recall rate increased to 70%.

What you can take from this is a strong strategy can pay off. Letting people see your Super Bowl commercial before the event can help generate awareness and anticipation. 

Thursday, January 24, 2013

Consumers turn to tablets after watching a TV commercial

It’s no secret that a media mix allows advertisers to get the message in front of the audience on multiple screens, multiple times per day. What is the best mix? Honestly, it depends. It depends on the audience, their habits, their values, their location, etc. There is no “right” answer. However, studies are continually seeking out good combinations.

According to eMarketer, a new study has been conducted by Harris Interactive for The Search Agency about TV and tablet usage. The survey showed that television prompts users to research a product or service on a tablet.

§       71% of the people 18-34 polled will use his/her tablet to look up information on a product/service after seeing a television commercial.

§       81% people 35-44

§       54% people 45-54

§       56% people 55+

To add support to this outcome, Millward and Dynamic Logic did another study and found that people were motivated to turn to his/her smartphone or tablet to research brands, apps, websites, social networking pages, etc. by recommendation at a 46% response rate. Television tied for second with brand in-store online at 38%.

Advertisers should take this information and make sure that if television is in the media mix, then the client’s website, social networking sites, mobile sites, etc. need to be aligned with the same message. That way, if a person does research on the brand after seeing a commercial, the rest of the resources will complement the initial introduction.

Thursday, January 17, 2013

New Years Resolutions... is there an app?

Well into the third week of the New Year, firm resolutions set on the 1st may not be as solid now. According to a new study by Prosper Mobile Insights, people are looking to outside help from his/her smartphone to keep resolutions intact.

For example, the survey noted that 24% of men and 30% of women intended to use his/her smartphone or tablet to help keep New Years resolutions. The top three categories/resolutions that people were attempting with their phones were being on time, keeping in touch with people, and budgeting.

eMarketer reports that 2013 may mark the first year in which smartphones make up 50% of the mobile phone market. That being said, experts believe it is likely that more people will become dependent on the devices’ capabilities.

Advertisers can take this information to better reach their audience. For example, if a person is interested in budgeting his/her money better, it may make sense for a bank to sponsor an app that helps track a budget. It’s up to the advertiser to really know the target audience and their behaviors. 

Thursday, January 10, 2013

What do you know about Generation X?

What do you know about the spending trends of the typical American Generation Xer? Since it is sometimes called the “ignored generation,” you may not know too much about it. The Center for Media Research recently summarized a new study by SymphonyIRI called Q3 2012 MarketPulse. In it, it highlights the buying characteristics of American’s between the ages of 35 and 44.

Unlike its predecessors Baby Boomers and seniors, Generation X tends be more price conscious.  This is more in line to the Millennials. The study proves this with the following results:
§       37% of GenX and 45% of Millennials are willing to buy brands that are on sale over the preferred brands. Boomers and seniors were less likely at 27% and 22% respectively.
§       32% of GenX and 39% of Millennials will select products that will create the most meals for the lowest cost. Boomers and seniors were charted at 27% and 19%.
§       33% of GenX and 35% of Millennials purchased products because of the discounts given from the loyalty card. The study showed only 25% of Boomers and 16% of seniors did the same.

How is this information helpful to an advertiser? If your target demographic happens to fall within the Generation X age group, it may be a good idea to highlight the price of your product or service. Also, coupons or discounts may be a way to get the frugal generation to sample what you are selling.

Thursday, January 3, 2013

Times Square billboards have a hefty price tag

2012 is a thing of the past, and 2013 is here. While billions rang in the New Year at parties, at home with loved ones, or simply doing laundry, one thing is for certain, millions were tuning in to “New Year’s Rockin Eve” at Times Square in New York City. Besides watching the ball drop, did you notice anything else in the square? The billboards perhaps? Ever give a thought to how much those billboards cost on a yearly basis?

According to AdvertisingAge, the billboards on top of One Times Square in NYC are some of the most expensive outdoor advertising in the world. In the Wall Street Journal, it’s reported that Dunkin’ Donuts spends approximately $3.6 million a year for the digital sign. Brewer Anheuser-Busch spends $3.4 million a year on its board. There are some reports that annual contracts could be as lucrative as $4 million. This shows the incremental rate increase since in 2005, the average yearly investment for a billboard on One Times Square was $2.4 million.

How can an advertiser justify that kind of investment for just the space and not even the production charges? Consider this, if just looking at “New Year’s Rockin Eve” at Times Square, there were 22.6 million viewers tuned in to watch 2011 turn into 2012. Dunkin’ Donuts would have paid about $0.16 for each person/impression. That doesn’t include the millions that visit Times Square throughout the year or the thousands that were in attendance that night. Even if a tenth of those 22.6 million viewers (2.26 million) bought a 1lb bag of coffee for $8.99, that’s $20.3 million in revenue, and $16.7 million in profits. Makes it easier to understand the gamble, doesn’t it?