Time for newspapers to leave ’09 in the past
Is it a sign the worst is over for the newspaper industry?
An industry that only a few months ago was suffering massive layoffs and closures now sees one of its leaders embarking on an ambitious marketing campaign. The Wall Street Journal announced this week that it will launch a new brand awareness campaign with executions across print, online and broadcast.
The paper’s first marketing initiative in three years is designed to improve people’s perceptions of the quality and breadth of the newspaper’s coverage. With the tagline “Live in the Know,” the campaign stresses the importance of moving beyond bite-sized news briefs to longer, more comprehensive coverage and analysis – like only a newspaper could deliver. WSJ hopes “Live in the Know” will appeal to readers looking to be better informed about current affairs, especially in the wake of the financial crises of the last year.
Despite the shuttering of long-established papers like the Seattle Post-Intelligencer and Rocky Mountain News, declining ad spend and 15,000 layoffs in 2009, refocusing on content and quality might be just what the industry needs to get back on track. Although downsizing was the trend for newspapers in 2009, Rich Boehne, CEO of newspaper publisher E.W. Scripps, doesn’t see that as a sustainable business model for the industry. "In the longer run, we will need to add (newsroom) jobs, add content and raise (circulation) rates."
For the sake of all newspapers, and those of us who read them, let’s hope the WSJ will deliver on this promise and lead by example.
Tags: media economy campaigns
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TV losing out to the third screen during the holidays
Brands would be wise to redirect some of their ad spend this holiday season – if the results of the latest Retail Advertising and Marketing Association research mean anything. According to the survey, a mere 17 percent of consumers said their favorite holiday TV commercial motivated them to shop at that retailer. This bleak statistic must be leaving retailers quaking in their boots because, despite expectations that holiday sales in 2009 will beat those of 2008, consumers are sure to be more selective with their money.
When it comes to deciding where to shop, TV commercials just don’t have the oomph they used to. To get customers through the door, the answer isn’t a 30-second spot…it’s money-saving coupons. Nearly half of respondents said coupons were the top media influencer when it came to deciding which retailers to shop. Meaning, a consumer may forego his favorite store if it means saving a little cash.
And it’s not just TV commercials losing out to coupons. Retailers saw a 15 percent decline in visits to their Web sites during Black Friday 2009 versus 2008, but searches for “printable coupons” jumped 50 percent. Few retailers seem to be getting the hint, however, as most are in a stand-off with thrifty customers waiting until the last minute to get the best deals.
JCPenney is one company on top of the trend. It began offering mobile coupons, which let cashiers scan coupons on customers’ mobile phones, back in September. American Greetings is getting on board, too, as it just upgraded its iPhone app to offer coupons, and Gap and Banana Republic are testing mobile coupons at outlet and factory stores in certain markets. The moves should pay off, too. A Deloitte study (client) showed 20 percent of consumers plan to use their mobile phones to assist in holiday shopping.
With only eight shopping days left until Christmas, perhaps now we’ll start to see retailers put a little more marketing muscle – mobile or otherwise – behind stretching customers’ wallets.
Tags: clients mobile coupons economy research
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When marketing attacks, Apple gives as good as it gets
Not one to shy away from a little “friendly” competition, Verizon is at it again. Instead of its foe-du jour, (Comcast, around these parts) this time the telecommunications giant is taking on Apple and theiPhone. Recent commercials for Verizon mobile phones feature a play on Apple’s “There’s an app for that” tag line. Boasting a far greater coverage network than AT&T – the exclusive cellular provider for iPhone – Verizon heralds, “There’s a map for that,” to show the coverage disparity.
It seems Apple is the punching-bag-of-choice these days. The popularity of the revolutionary iPhone has prompted attacks from the likes of Verizon and BlackBerry, while long-time rival Microsoft launched its “I’m a PC” campaign in direct response to Apple’s Mac computer ads featuring actors Justin Long and John Hodgman. Microsoft’s newest marketing campaigns may be focusing on the launch of its Windows 7 operating system, but they still manage to allude to its self-proclaimed superiority to Macs.
Image Credit: PC World
Taking the opportunity to go on the offensive again, Apple is set to launch attack ads attempting to lure PCers to the Mac by shining a light on Windows’ susceptibility to viruses and complicated interface. If consumers are looking to upgrade old computers, this is as good a time as any for Apple to try to winsome converts. But why the decision to use such contentious marketing messages?
The London Times blames it on the American economy. According to a Times interview, “In tough times, marketers know that people become more rational in their decision-making, so they're somewhat more susceptible to being told straight out: ‘This product is better than the other one.'” Be careful what you say in the heat of battle, however; incense your competitor enough and you could end up with a lawsuit. Gatorade didn’t take kindly to advertising claims from Powerade and ended up going to court and involving the FDA over the matter. Subway even sent Domino’s a cease-and-desist letter (the pizza chain subsequently lighted it on fire in its next commercial).
Although it’s unlikely Apple will sue or be sued, the battle for computing and mobile supremacy rages on as consumers hold tight to their wallets. Who will be the next to take on the world’s most admired company?
Tags: campaigns advertising economy marketing
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The Oprah-KFC effect
Teach a man to fish, and he’ll eat for a lifetime. Offer him free fish, and hoards of people will overrun your restaurant so fast you’ll risk food shortages and riots. Or something like that…
It seems there’s no end to restaurants and food brands offering coupons for free meals and products. What’s surprising, however, is just how little the participating companies understand the power of the word “free.” In this economy – or any economy, really – you’ll find people hard-pressed to pass on free food, as any parents visiting their child at college can tell you. Offer to take the roommates to dinner, and suddenly you’re staring at a two-hour wait for a table for 10.
So, why do marketers continue to underestimate the demand? Didn’t the Oprah-KFC incident teach us anything? Apparently, we’re still waiting for the lesson to sink in. Just last week, restaurant chain TGI Friday’s had to face the ire of Facebookers everywhere when coupons for a free Jack Daniel’s burger or chicken sandwich ran out 24 days sooner than expected. To stem the groundswell of negative comments, TGIF hastily extended the promotion. What was initially an offer of free burgers for the first 500,000 Facebook followers of TGIF “fan” Woody, has been opened up to the first million. At the time of this post, Woody is closing in with 970,739 followers.
In a similar incident, Smucker’s launched a promotion offering 20,000 coupons for free packages of Uncrustables Sandwiches. Within hours of going live online, the coupons were gone. The program was slated to run through October, and it didn’t even make it out of September. According to a Smucker’s PR executive, it doesn’t look like the company will make any more coupons available. This hardly seems like a good move, especially as Smucker’s tries to drive moms to its Web site to submit tips on giving their kids and the whole family “a wholesome, satisfying and convenient snack.” Moms can still provide tips, but they shouldn’t expect free sandwiches.
The lesson here? Take a cue from the Oprah-KFC effect. Coupons for free food will inevitably run out – and faster than you think. So, take the time to prepare a contingency that won’t leave consumers feeling cheated. Hope for the best, but plan for the worst.
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Tags: Facebook promotion planning economy food
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Out of the Mouths of Babes
“I don’t know why anyone would pay for this when you can get it online for free.”
The comment snapped me out of my early morning haze as I was waiting in line outside a very busy Dunkin' Donuts over Labor Day weekend. The voice was coming from a fresh-faced young boy, no older than 11, who had set up a card table outside the coffee shop to sell newspapers to a captive audience of vacationers awaiting our much-needed jolt of caffeine. His words were aimed at a woman who was buying a copy of the Cape Cod Times from him. Seemingly embarrassed by the truth in the boy’s words, the woman mumbled something about not having Internet access at her vacation rental and then quickly got back in line. But his words hung heavily in the air.
At the ripe old age of 11, this young paper boy could easily see one of the fatal flaws of the newspaper industry. His words struck like a death knell for the failing industry.
Cartoon Credit: Houston Chronicle
Dogged by a tsunami of challenges, including an outdated model, the proliferation of the Internet and other news sources and rapidly dropping ad revenues and subscriber bases, the newspaper industry finds itself in the fight of its life.
As a PR practitioner, I have watched for quite some time the downward spiral of the newspaper industry. I have felt, first-hand, the impact of publications closing, short-staffed newsrooms and the loss of relationships with reporters who were casualties of downsizing. But my sense of loss seems to be even more personal than it is professional. As a bit of a news junkie, I admittedly get my daily fix of news from a wide cross-section of media – newspapers, TV, radio and online sites. Yet, I still cherish reading the print edition of the paper – mostly for reasons I can’t quite explain. Perhaps it’s the format and the ability to skim through entire sections, capture headlines and a few snippets of each article so you feel as though you are up to speed on the big stories of the day. Perhaps it’s the smell of the paper or the feel of the ink on your hands. Or, perhaps it’s that sense of accomplishment you feel when you’ve finished the last page.
I know I am not alone. There are many people, like me, who simply cannot fathom a time when we won’t have print papers. Yet, a recent Rasmussen survey published in US News & World Report indicates that many Americans are more apathetic to the change. Two-thirds of American adults (65%) think daily papers won’t exist in 10 years – and that number jumps to a whopping 83% when you ask a younger generation of 18- to 29-year-olds. Like the 11-year-old paper boy, future generations simply don’t see a need for the daily paper. Sadly, nearly a quarter of Americans (22%) say they “will miss nothing” about daily papers when they’re gone.
While the newspaper industry fights for survival and scrambles to find solutions, we must simply wait and see. In the meantime, I plan to focus on cherishing what little time I may have left with my daily paper.
-- Amy Russ, Director
Tags: economy media
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Give some, get some: The power of sampling
My father is a food broker and represents a new product called Bagel O’s. As brunch items, Bagel O’s are bite-sized, premium, kosher bagels filled with cream cheese. But if you were doing your weekly shopping and saw Bagel-O’s in the freezer section would you buy them? Maybe. Or, maybe not.
In a world where budgets are tight, people want proof before purchasing a new product – especially a new one that promises improvements on an old favorite, like Bagel O’s. Each time you purchase something new you risk hating it and therefore wasting your hard-earned money. Advertising helps and coupons are great, but they aren’t always enough to convince consumers. Sampling, on the other hand, takes the risk out of the equation. Like me, consumers will essentially try anything if it’s free!
But does sampling lead to sales? Is sampling a viable promotion tactic? Research and practical success stories say yes. A study by the Product Sampling Council of the Promotion Marketing Association found nine out of 10 consumers say they would purchase a good or service if they experienced it and were satisfied. And, for Bagel O’s, purchases have tripled during weeks with a four-hour sample campaign and increased sales have continued thereafter. This success isn’t exclusive to Bagel O’s, either. According to the “Report on In-store Sampling Effectiveness,” sampling programs drove a 475 percent sales lift the day of the event, and consumers who sampled an item were 11 percent more likely to purchase it again and six percent more likely to buy another item from the brand franchise.
This kind of sales and brand lift might be just what the doctor ordered as we head toward the holidays. A recent Wall Street Journal article on back-to-school sales indicates consumer confidence is low and individuals remain highly focused on necessities. As the holiday season nears, and consumers dig deep to give their families that little something extra, consider investing in sampling or experiential promotions to make consumers aware of new or re-launched products. Sometimes you really do have to give a little to get a lot.
-- Jillian Wilson Martin, Senior Account Executive
Tags: food branding event economy research
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Where have all the print editions gone?
A few months ago, account director Byron Calamese lamented the struggling newspaper industry, and consequently, the future of his first job -- paper boy. Now, Carol Cone, our chairman and founder, expresses her own sadness and makes a plea to save print newspapers. Read her thoughts on our sister blog, What Do You Stand For?
Tags: economy media
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A recipe for success
Today, everybody’s trying to save a buck, but a guy’s still got to eat. For fast-casual and fast-food chains, it would seem a no-brainer to slash prices on popular offerings and stand back as the crowds rush in. That’s the tact taken by Yum Brands Inc., but the low-priced fare didn’t quite pay off. Taco Bell’s and Pizza Hut’s second-quarter, same-store sales actually declined in spite of economically priced menu items.
So why weren’t consumers attracted to the cheaper eats? According to a recent Performics study, 69 percent of consumers surveyed said they are spending less money on eating out. This means consumers aren’t going to be swayed by low-priced promotions if they are already making a conscious decision to eat more meals at home. In fact, popular restaurant chains are looking to store-bought frozen meals as alternative income. California Pizza Kitchen, Starbucks and Burger King are among the many chains with restaurant menu items for sale in supermarkets' frozen food aisles.
But, restaurants can’t rely on packaged foods for long. To woo customers away from their eat-in kitchens, some restaurant chains are looking to draw crowds with incentive programs. Denny’s introduced a Grand Slam Bahamas Vacation Getaway promotion. Customers can earn scratch-off game cards by purchasing special menu items. Prizes range from free food and beverages to a grand-prize Bahamian vacation for two. Or, for the truly daring, Chick-fil-A honored Cow Appreciation Day by offering a free meal to anyone who stopped by its franchises dressed like a cow.
Restaurants are quickly learning that consumers in this economy are changing their habits and saving at unprecedented levels. To move dinnertime out of the house, restaurant chains are going to have to learn to get creative. Price cuts can’t be the only answer. Give consumers a reason to spend their hard-earned money in your restaurant.
Tags: promotion economy food
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Saving GM: An Iconic American Brand
I was recently asked my opinion by a reporter as to whether or not we would want to take on General Motors as a client in light of all the financial issues, operational challenges and pending government ownership. While I provided the opinion, I was fairly stunned at the question itself.
As a marketer, I would find it hard to believe that there would be colleagues out there who may not want to work on an iconic brand that has been a cornerstone of our automobile industry for more than 100 years. Sure, it has a rocky road ahead. However, who in our business would not want to help revitalize such a respected and successful brand? The reason I could come up with is that there is trepidation on the approach they should take to right the ship. Assuming I were hypothetically in charge of GM marketing, here is what I may do:
First, I would further reduce its nameplates. GM is rumored to drop or spin off Pontiac, SAAB, Hummer and Saturn. I think this is a smart step, but it may not go far enough. I would counsel GM to also drop its Buick line, which now bridges Chevy and Cadillac, and save it exclusively for overseas where sales are strong -- especially in China. Then, focus on the clear core distinctions among its three remaining brands: Chevrolet (functional entry- and mid-level cars and trucks), Cadillac (American luxury) and GMC (professional and commercial). This would help to clear up any confusion with multiple GM nameplates and give each remaining car brand more elasticity within the GM family.
Once we have solved any car brand ambiguity, I would create a two-pronged marketing approach. I would create a story-telling brand campaign for GM that speaks to changes and where the company is heading to inspire confidence in consumers. In addition to this campaign, I would create a brand-by-brand approach to focus on what makes each nameplate special and distinctive. Despite price sensitivity in today’s economic climate, the primary messages of each should be focused on the quality of the products –- rather than a value message –- to build a solid foundation for the future.
Moving beyond short-term solutions, I think the opportunity for an American manufacturer to reclaim innovation is upon us. GM, Ford and Chrysler have all struggled to keep up with ingenuity from foreign competitors. In order to recapture the hearts and minds of today’s consumers, GM will need to leapfrog ahead of the pack to produce clearly superior products. It must push the envelope on quality, design, performance and fuel efficiency. Hopefully, these new products will open doors for campaigns that reflect this revitalization of American ingenuity.
Would this plan work? I would like to think so. But the real question was never what would work, but rather if I would want a chance to try. As marketers, I truly hope we all would want a chance to get into that driver’s seat.
-- Bill Fleishman, Managing Director & EVP
Tags: PR economy marketing
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