Consumers are cooling to cable. And they're not very satisfied with satellite TV. In fact, according to consumer research firm GfK Roper Consulting, about 40% of those surveyed during mid-2008 and early 2009 said they'd be willing to do without cable or satellite TV.
Innovation labs are growing in popularity. No wonder. These corporate woodsheds for technology innovation, strategy, and product development offer companies and their brands a direct plug-in to new ideas and fresh thinking. Who would fault a brand like PepsiCo or Sprint for setting one up and turning the key?
Last year, research firm ITSMA surveyed the budgets of major B2B companies. The single largest budget item -- representing 16% of average spend -- was collateral.
There’s no question that offering incentives can be a powerful way to get your customers and prospects to take the actions you want.
When we talk about making marketing more efficient, it is about making sure that every dollar is being spent where it can get the greatest return.
Strategy is not planning — it is the making of an integrated set of choices that collectively position the firm in its industry so as to create sustainable advantage relative to competition and deliver superior financial returns.
10 changes that will continue to affect the top marketing job going Into 2011.
Phenomenal phones are flooding the market. In the past few weeks the new iPhone 4, the HTC 4G EVO, Droid X and HTC HD2 debuted, all phones with fast processors and big screens. But these new phones come at a cost – a recurring monthly charge. So before you sign a contract for two years of payments, which phone is really the bargain?
As marketers begin to better understand and reap the benefits of online marketing, a large pervasive gap remains between the results we are able to achieve through online marketing and the budget we allocate to these efforts. This gap presents a clear and significant opportunity for those who are willing to break from traditional budgeting -- "measured increases" -- and invest in online. Despite the fact that marketers continue to gain rewards of online success, incremental increases breed incremental success and significant opportunity is left on the table.
With their ability to cheaply reach eyeballs, online ad networks have commanded more money and attention from marketers in the past few years, thus edging out content sites in the conversation for ad dollars. A recent study, however, claims content is back. A survey of agencies and marketers revealed that 52% of them plan to spend more on content sites this year, whereas only 35% said they were likely to increase budgets for ad networks. As examples of content destinations, the study cited ESPN and WebMD.
Slowly but surely things are getting better, and I have decided that it is time to get back to investing in the future rather than just trying to survive. Advertising is one expense that is really an investment. Like all investments, advertising can produce results that range from great to disastrous. It requires understanding who your best prospects are, how to reach them, and what the message should be. Because most small-business owners are busy, if not overwhelmed, it can be tempting to let advertising salespeople drive the process. That can be a mistake. You don’t want to choose your advertising based on which salesperson happens to call on you.
As social media becomes mainstream, and more brands venture into the waters, it's not only essential to decide who, in your organization, is responsible for your social media brand voice, but to make sure they have a solid messaging platform as a springboard for content.
The Holy Grail for many marketers is having their big-budget TV spot become a viral hit online, providing millions of dollars worth of free exposure from consumer pass-along. The bad news is the chance of this happening is pretty slim, and even if it does, there's a good chance the spot won't do much to persuade viewers.
Kara Goldin was pregnant when she was diagnosed with gestational diabetes in 2004. The first thing she cut out of her diet was sugary drinks. Her blood sugar problems improved, but Goldin still craved flavored beverages. She tried to find an all-natural, sugar-free drink that tasted good, but she struck out. Her solution? Goldin, a former vice president at AOL, created a beverage that became Hint, the brand and the company.
Kraft Foods expects to realize annual pre-tax cost savings of at least $675 million by the end of 2012, some of which will be used to further increase advertising and consumer spending as a percentage of revenue, chairman/CEO Irene Rosenfeld reported during the company's Q4/year-end fiscal 2009 earnings call on Tuesday. The global food giant increased advertising and consumer spending to 7.2% of net revenues in 2009, versus 6.7% in 2008, she pointed out. The increased advertising support for key brands, including the Philadelphia Cream Cheese "Spread a Little Love" and Miracle Whip "We Will Not Tone It Down" television campaigns, have been "extremely well received" and effective at building the brands' franchises, Rosenfeld said.
It's a simple formula: Recession requires more tactical spending. This year's budget = + online spend + social activity + lead generation campaigns - brand investment. When the dollars get tight, spend shifts to more tangible, less expensive marketing programs with the promise of shorter-term returns (or at least lower costs). Not that there's anything wrong with saving a few bucks wherever you can get the job done more efficiently. But when saving money becomes the goal instead of a guideline, something big always suffers -- and it's usually the brand.
While most CMOs have laid forth their plans for 2010, many are still seeking a way to innovate in a time of uncertainty. Where are the opportunities? With the recent dramatic drops in marketing spending, there has been one category that continues to grow. Throughout 2009 we saw the launch of many national cause-marketing programs (see sidebar: Dawn, H&R Block, Pepsi, Sonic Drive-In) at a time when marketers were watching budgets more closely than ever. With this rise in popularity comes the question: Where is cause marketing headed in 2010? While the rules of a successful cause campaign remain solidified, the category is set to change dramatically in 2010.
It wasn't long ago that a fashion magazine reader could flip through the pages of Vogue and Elle to find advertisements from high-end French brand Lacoste. Not anymore. The company known for its crocodile logo and polo shirts is ditching print ads and switching to a completely digital tactic in America. Lacoste spends $12 million a year on marketing in the U.S., according to TNS Media Intelligence, and all of that will go online. The change rolls out Thursday with the launch of a new Web site, from New York agency Euro RSCG, that lets shoppers build their own Lacoste wardrobes and share with friends on social networking sites.
While the year 2009 was marked as the 'great recession', we won't feel its full effects until 2010. Both marketers and their marketing services agency partners are dealing with reduced resources in terms of head-count and budgets. We won't likely see enough breakthroughs in the marketplace, simply because marketers and agencies alike have to remain focused on 'getting the work out the door'. The only way to 'do more with less' is to align resources toward a single and powerful integrated marketing solution. Individual marketing tactics will simply become marginalized and highly tactical with 'less'.
How do you compete as an upstart in the cutthroat domestic airline industry when your marketing budget is a fraction of your rivals'? For Porter Gale, VP-marketing at domestic value carrier Virgin America, you make every dollar stretch and use social media and buzz to amplify every marketing event, all the while trying to show that Virgin is the antidote to marginal domestic air travel. In some respects Ms. Gale is a fitting candidate to run a lean, startup airline. With a master's degree in documentary film from Stanford University, she's a filmmaker who has had to figure out how to produce high-quality content on shoestring budgets.
Walmart has launched an aggressive push to have marketers divert their consumer media and marketing budgets into the giant retailer's growing ad budget and in-store marketing programs, using a simultaneous push to clear underperforming brands off its shelves as extra leverage.
The pressure to cut costs is stronger than ever, leading more and more marketing organizations, both advertiser and agency, to talk about how to reconfigure their marketing processes with one goal in mind: reducing costs. Typically the cuts focus on cutting the marketing/media budget, headcount and nonessential expenses by a certain percentage. Instead, companies and agencies need to take a close look at how their marketing organizations are structured as well as their processes for getting things done.
Forrester Research released its five year forecast that estimates interactive marketing spending from 2009 – 2014. Forrester predicts that interactive marketing in the US will near $55 billion and represent 21% of all marketing spend by 2014 and will include search marketing, display advertising, email marketing, social media, and mobile marketing. More significantly however, overall advertising in traditional media will continue to decline in favor of less expensive, more effective interactive tools and services.
When Rory Finlay took over as senior VP-chief marketing officer of Beam Global Spirits & Wine in early 2007, he faced a daunting challenge. Beam, the world's No. 4 spirits player, boasted iconic brands such as Jim Beam, Sauza, Maker's Mark and Canadian Club, but it lacked the budget to go ad-for-ad with its much larger competitors Diageo, Pernod Ricard and Bacardi.
I recently received this email from Brandy Amidon, the Princess of Particulars and CPA at Brains on Fire, yesterday.
If you page through The Wall Street Journal or New York Times, you might discover a few surprises. FedEx, General Electric and IBM have recently launched corporate branding campaigns, and tech power SAP made a splash just last week with a global push from Ogilvy themed "Time for a clear new world."
High- and middle-income shoppers are increasingly turning to dollar stores, according to Nielsen Co. research presented today at Nielsen’s Consumer 360 conference.
One way to read these studies is simply that recessions make the strong stronger and the weak weaker, since the strong can afford to keep investing while the weak have to devote all their energies to staying afloat. But although deep pockets help in a downturn, recessions nonetheless create more opportunity for challengers, not less. That may be why during the 1990-91 recession, according to a Bain & Company study, twice as many companies leaped from the bottom of their industries to the top as did so in the years before and after.
As supermarket brands pummel its business, the food industry is increasingly picking and choosing among its brands for the one to back.