Category: Advertising

Green is the latest “in” color for marketers, joining red (anti-AIDS) and pink (breast cancer) in the marketing strategy kaleidoscope. Concerns about protecting the environment have led consumers and advocacy groups to place greater expectations about how businesses interact with the environment in the manufacture and distribution of their wares. Many companies have hitched a ride on the green marketing wagon in an attempt to demonstate their socially responsible actions… and as a strategy to differentiate themselves from competitors.

What should consumers make of marketers’ green claims? How do we assess the credibility of claims? An effort has been launched to help in this regard, EnviroMedia’s “Greenwashing Index.” The term “greenwashing” has been coined to describe companies whose words about being green speak louder than their actions. Specifically, the Greenwashing Index rates ads that make green claims on a 5-point scale, with 1 being a “good ad” and 5 being “total greenwashing.”

Efforts like the Greenwashing Index provide two benefits. First, interested persons have a resource for evaluating green marketing claims. While many companies can make claims about being green, not all companies have put the same level of effort into protecting the environment. The Greenwashing Index can assess the different levels of focus marketers put on environmental protection. Second, the presence of a watchdog like the Greenwashing Index should make advertisers be careful about the green claims they make. Ads that receive high Greenwashing Index scores do not reflect the type of word-of-mouth marketers want for their brands.

Newspapers are struggling to generate revenues in the face of declining readerships and ad pages. At least people have not abandoned getting news altogether, many go to the web sites of their local daily newspaper to access news free that they would pay to access in the print version. One way newspapers are using the web to generate revenues in absence of subscriptions is advertising.

A form of online advertising gaining increased usage on news sites is in-text advertising. Rather than placing a banner or text ad on the margin of the page that can be easily ignored, in-text advertising hyperlinks keywords in the copy of a story to an advertiser’s paid message. The key to making in-text advertising work is keeping the placements within the context of the story. For example, I recently read an article on the website of Nashville’s major daily paper, The Tennessean, about a Nashville concert by Stevie Wonder. The name “Stevie Wonder” was hyperlinked to an ad that contained information about ordering Stevie Wonder CDs and box sets. This connection was very logical and well-placed. A person reading about Stevie Wonder might be inclined to search for information about buying his music as a result of exposure to the combination of the news story and the in-text ad.

Unfortunately, this practice has the potential to become advertising run amuok very easily. The same day I read the Stevie Wonder article, I read another article about Christmas sales for retailers. The word “consumer’s” appeared in a sentence describing consumer shopping behavior. “Consumer’s” was hyperlinked to an in-text ad for credit cards. Some people despise in-text ads already because it blurs the distinction between editorial content and commercialism. In-text ads must have context; the advertiser should have a logical and appropriate connection to the news story. Otherwise, this form of advertising will be rendered as ineffective as banner ads have become.

When a company announces a TV ad campaign, it is rarely noteworthy because the appearance of new TV ads is an everyday occurrence. It’s not an everyday occurrence for Starbucks. The iconic coffee house chain is airing its first ever TV commercials to coincide with the holiday shopping season. Declining store transactions and competition from lower priced Dunkin Donuts and McDonald’s are factors behind the decision to move into TV advertising.

Is advertising the answer to overcome stagnant sales? In some cases, maybe, but not for a brand that became legendary through every conceivable means but advertising! Starbucks created its point of difference around the experience of enjoying coffee in a Starbucks coffee house. It’s not about price, convenience, or anything else. If store visits are down, Starbucks has to take the proverbial look in the mirror to ask why.

Are there aspects of the Starbucks experience that have lost their appeal to consumers? Many people suggest that if Starbucks wants people to visit its stores it could start by offering free Wi-Fi Internet access, as most of its competitors offer. Starbucks’ ad campaign may be noteworthy because it is the first ever for the company, but don’t look for it to be noteworthy for raking in sales increases this holiday season. Link

Applebee’s is launching a new advertising campaign featuring its new spokesperson… I mean spokesapple. Yes, that’s right- spokesapple! It’s cheaper than hiring a celebrity endorser, and at least Applebee’s does not have to worry about an apple embarassing the company by getting arrested. That’s where the benefits seem to end. This brand is in trouble, and to expect a reversal of fortunes from an ad campaign led by a spokesapple is a stretch! The spokesapple will serve as the message source to spread the word about Applebee’s menu items, but how much credence can you give to what an apple tells you?

You can see the auditions for yourself and decide if the “winning” spokesapple might join the ranks of the AFLAC duck and Jolly Green Giant as an advertising icon. My bet is “no.”

Like an aged copy of the local newspaper that turns yellow over time, newspapers are losing relevance as an advertising medium. A survey by credit ratings firm Fitch found sharp declines in advertising in the number of ad pages at large dailies published by Gannett Co., Tribune Co., McClatchy Co., and Dow Jones & Co. The declines are alarming because they are attributed to fewer ad pages in key product categories such as automotive, real estate, and technology products.

It is apparent that large daily newspapers are in the decline stage of the product life cycle, at least in their print formats. Why? It’s the same reason as when any other product loses market share: it loses relevance with its audience. One of the strengths of newspapers has always been their ability to provide great coverage of local news. That’s a newspaper’s point of difference, and while it seems most newspapers in small town America still grasp their role, too many large daily papers have become too broad in the scope of information provided. Let CNN and Fox News fill the role of national/global news coverage. Alternative newspapers have popped up all over the country and many are succeeding at what the legacy newspaper in the market forgets: it’s in the local news business! Link

From the “No Duh” Department:

Results of a recent national survey found that most consumers are less likely to buy a product if they’re exposed to advertising for that product that they find offensive or annoying. Only 11% of those surveyed said they were more likely to buy a product after exposure to offensive advertising, while a whopping 86% said they were less likely to buy following exposure to offensive advertising.

You may be wondering at this point what was learned from this research that wasn’t already evident: you turn me off with offensive ad messages and I will likely respond by closing my wallet… no $ for you! The one nugget of insight the study does offer is that while most consumers are less likely to buy if exposed to offensive advertising, they are likely to remember the ad message- 70% of respondents recalled exposure to an offensive ad. This finding reminds us of the dilemma advertisers constantly face. We are challenged more than ever before to get the attention of the target markets we strive to reach. This challenge requires dialing up the “shock factor” or some other means to get noticed. Unfortunately, the means we use to get attention can be the very stimulus that elicits negative response from the audience.

So how do marketers avoid becoming part of the statistic of advertisers that lose sales because they offended customers? If a brand speaks to consumers convincingly in other ways (e.g., high quality, stylish design, convenient to use, etc.), one does not have to resort to outlandish messages that risk creating negative brand associations. The brand can grab attention in ways that are more credible and powerful than any marketing communications message! Link

Radio shock jock Don Imus appears to be setting the stage for his return to the airwaves. Since losing his radio and television programs in April for making racially offensive remarks about the Rutgers University women’s basketball team, he has attempted to mend fences with those he hurt and has settled his contract status with his former employer. Now, there is speculation that he will return to radio with a program either on WABC in New York or possibly on satellite radio.

What makes possibile an Imus return? Potential for advertising revenues, of course. Imus may be a polarizing figure, but he does attract an audience whose demographic characteristics are coveted by many advertisers. Major companies such as General Motors and Procter & Gamble were quick to sever ties with Imus when the racial remark controversy erupted. Would they consider a return? Reaching audiences in general is tougher than ever today, and the effectiveness of mass media advertising is under increased scrutiny as advertisers need to see measurable results from their ad buys.

Associating with a high profile personality like Don Imus is a way for companies to reach certain audiences using a mass media vehicle. It certainly is a niche market as Imus did not have mass appeal before his dismissal and may pull smaller audiences initially. Also, it would probably be an ideal time for advertisers to be associated with Imus as the “PC Police” would have him under a watchful eye, and it is likely that Imus and his sidekicks would be more careful about what they say to avoid another fiasco.