Tag Archives: Superbowl advertising

News U Can Use – March

These news items are brought to you by Kuk & Baldwin:

ROI PLUS ROC.     You’re more than familiar with ROI, but what’s ROC?   ROC is Return of Customer, or repeat business.   Restaurants thrive on repeat business, as do garden shops, building stores, and office supply stores.   Some businesses need a relative balance of new and repeat – like handyman services, plumbing contractors, and major appliance stores.   For other businesses such as siding contractors, used car dealers, and boat dealers, success depends mainly on a steady flow of new customers.   Attracting new customers is what YP does best, but even for advertisers who rely mostly on ROC, you can stress annual churn factors like people moving, switching suppliers, etc. (Restaurant News, 2/11/13).

THE SWEET SPOT AND OTHER AUTO NEWS.    The “sweet spot” in aftermarket parlance is the coveted market segment defined as vehicles between 6 and 12 years old, the age range that consumes the most repairs, replacement parts, tires, etc.   But the number of vehicles in that sweet spot is declining as new car sales pick up (15.4 million forecast for 2013) – so aftermarket vendors may want to pursue a proactive preventive maintenance marketing theme (Wall St. Journal, 3/4/13)….Higher new car sales plus the surge of total loss vehicles (including from major storms) will result in a spike in value of salvage vehicles, thereby driving down the prices of recycled auto parts (SearchAutoParts.com, 3/4/13). 

LOCKSMITH PRICES.     A 2012 price survey of basic locksmith services came up with the following averages (mostly close to 2011):  service call, $68; hourly rate, $50; auto opening call, $60; fit standard auto ignition key in shop, $50; fit auto transponder key in shop, $93; fit auto sidewinder key in shop, $120; fit motorcycle key, $87; cylinder key-in-knob, $15; make US or foreign single/double cut keys by code, $15-$20; make foreign sidewinder key by code, $68; duplicate US or foreign single/double cut keys, $4-$6; duplicate hi-security key, $17; and first-key fitting, $34.  Such data can justify these services in a YP ad – even for specialists in hi-tech systems like electronic access and security (Locksmith Ledger, 2/13).

 Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.

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Have you seen these recent media and advertising news stories:

Google Says Mobile advertising will soon be “mandatory”

Even if they don’t want it, make them buy — Google will soon begin requiring that all AdWords clients buy mobile advertising space, even if they only want to reach desktop-computer users (sounds fair).  Industry executives believe the “enhanced campaigns” will be rolled out to all AdWords users by mid-2013 and is expected to drive up the overall price for mobile ad units.  As the article noted, WordStream Inc., a firm that helps people advertise on search engines, estimated that less than 4% of small and medium-sized advertisers had set up mobile-ad campaigns “because it was such a hassle.” (Source)

 

Fox is already pitching the next Super Bowl to advertisers 

Let the haggling begin — no sooner has this year’s Super Bowl passed into memory than Fox, which has the broadcast rights for the next Super Bowl, has already begun approaching advertisers about next year’s event, noting in particular the media advantages of its first time New York location for the game. As part of the pitch, Fox is also touting its NASCAR broadcasts and planned national sports channel. (Source)

The Internet is wonderful thing, when you can get to it…

Research firm Parks Associates recently announced that 78% of U.S. broadband households had a home network router in 2012, up from 54% in 2009, with expected adoption to reach 95% by 2016. Consumer demand for connected and mobile devices is fueling adoption of home network devices, which creates new and complex support demands on the connected home.

“Tablets, game consoles and smartphones have been incredibly popular, but the influx of connected devices adds new layers of complexity to the connected home,” said Patrice Samuels, Research Analyst, Parks Associates. “Approximately 35% of broadband households experience home networking problems when trying to sync devices and enable functions.”

As a result Parks Associates research found that 68% of U.S. broadband households are interested in new technical support services. Over 70% of these consumers would expect this service to address all of their technical problems, highlighting the importance of a comprehensive support solution that covers all of the devices and services on the home network. (Source)

2012 Ad Spending:  Political & Olympic ads Boost Overall Ad Spending

Nielsen says that last year’s Olympic Games and a very active U.S. election season in the third quarter (where spending rose 7% from a year before) helped boost 2012’s overall ad spend 2%. In the fourth quarter, a strong 1% gain in auto advertising helped keep that sector as the top spender for the year.  Notable big spenders in other categories: Phone and wireless ad spending rose 28% in the final quarter.  (Source)

 

Mobile’s Share of Marketing Budgets Rising

Mobile advertising continues to be the hot topic among marketers as Gartner says companies are now spending an average of 25% of their marketing budgets on mobile platforms.  The study also notes that digital is increasingly being integrated with all other types of marketing. Meanwhile, the growth in mobile’s budget share is expected to continue “as second-screen TV, social TV and QR codes integrate with traditional channels,” the report says. (Source)

 

But….Only 29% Of Consumers Regularly Use Mobile Devices To Find Local Businesses  

Yes, mobile is growing fast.  But hold on a second Sparky – according to new study from BrightLocal, while mobile Internet usage is growing very fast, only 29% of consumers regularly use their phones/tablets to find local businesses.  This compares to just 15% of consumers who use desktop Internet to find a local business.  Heavier, repeat users represent about 19% of consumers and they do look for a local business at least once per week.  29% of them search local at least once per month.  (Source)

 

Agencies see digital overtaking print, broadcast spending 

A new Strata survey says that nearly a third of ad agencies expect to spend more on digital campaigns than on conventional media within the next three years. “New advertising mediums are evolving at an unprecedented pace, and agencies are constantly trying to figure out how to get the best return on investment for their campaigns,” said Strata President and CEO John Shelton. (Source)

News U Can Use – October

These news items are brought to you by Kuk, Baldwin & Associates:

PET NEWS.     The dog day care business is getting big, as indicated by the fact that the average cost range for an 8-hour day is up to $25-$32 ($35-$55 for overnight boarding) – and also by the fact that some of the high-end facilities require dog owners to complete detailed applications.  There are even cases of
dogs being “expelled” for misbehavior (Personal Journal, 8/11/11)….Nationally,
the cost range for a dog or cat physical exam by a vet is $35 to $46, while
repairing a typical fracture can range from $725 to $1200.   More people are now comparison shopping for veterinary care (Consumer Reports, 8/11).

ALTERNATIVE THERAPIES.     In a survey of over 45,000 readers with a variety of ills, Consumer Reports (9/11) rated several alternative treatments used, including chiropractic and acupuncture.   For chronic back pain,
36% used chiropractic, with two out of three saying they were “helped a lot” –
while only 8% used acupuncture, with 41% giving it high marks.   For headache and migraine, 15% used chiropractic and 45% rated it effective.   And for neck pain, 41% used chiropractic with two out of three choosing “helped a lot,” while 10% tried acupuncture, with 44% indicating it was effective.   The average cost of a chiropractic visit for respondents was $71; the average for acupuncture was
$66 a visit.

TRAVEL AGENCY FACTS.     The American Society of Travel Agents reports that as of this July, there were 14,380 retail travel agencies in the US – down from 16,504 in 2009 and 25,924 in 2002.   And while it’s true that many travelers now go online and make their own arrangements (especially airline tickets), agencies still handle over 50% of all travel sold in the US – a segment amounting to more than $146 billion in sales annually.    That’s an average of about $10.5 million worth of travel per agency.   The biggest reason some 30% of
travelers still use traditional agencies almost exclusively – especially for
foreign travel – is the security of agency support while on the road (USA
Today
, 8/30/11).

Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.

Other recent media/advertising news:

Even Amid an Economic Slowdown, Growth is Forecast for  Advertising

Panelists at a recent Advertising Week event indicated that even
with the ongoing slow U.S. economy, advertising revenues are expected to continue to rise for next year and 2013.  2012 will have the advantage of being a
Presidential and major Congressional election year, as well as the summer Olympics to further stimulate media spending.  (Source)

Internet Ad Revenue Grows  to $14.9 Billion in first Half

Internet ad revenue reached $14.9 billion in the first half, up 23.2% over the first half of last year, according to a new IAB Internet Advertising Revenue Report conducted by audit firm PricewaterhouseCoopers.

But Look A Little Deeper:  Google Banner Ad Click-Through Rates Slip

According to a Google survey, despite efforts to make banner ads more appealing, their overall rate for click-throughs declined a bit last year,
to 0.09% from 0.1% two years ago.   However, significant differences were noted for the types of ads, with a 250×250 pixel ad using Flash winning a 0.26% click-through rate. (Source)

 Newspaper Print Ad Spending Drops for 20th Quarter

Given the prior article about Internet ad revenue, would it surprise you to know that U.S. newspaper print ad spending fell for the 20th consecutive quarter, dropping 9% in the second quarter to $5.19 billion, according to the Newspaper Association of America. But the “good” news was that their revenue from online advertising was up 8% to $803.4 million.  (Source)

Times Can’t Be All That Bad:  Super Bowl ad slots nearly sold out

Advertising space in the 2012 Super Bowl is nearly sold out, with just five 30-second slots up for grabs, reports NBC Sports’ sales chief, Seth Winter, who says each of the spots will cost $3.5 million. Winter said he expects all of the inventory will be sold by the year’s end. NBC is stipulating that marketers who run ads in the big game also purchase ad space across other NBC Sports assets. (Source)

 Mobile:  New Mobile Metric Platform Charts Calls, Duration, Demographics

Good to see long time industry supplier Telmetrics rolling out their new “m.Call” platform.  Designed to measure the click-to-call performance of mobile ads and includes call duration and user demographics.   Also works with regular business numbers, which means that special call-tracking numbers are no longer necessary. (Source)

Mobile:  Yahoo! Also Wants to Play

Mobile search accounts for less than 15% of Yahoo!’s total search volume in the U.S. right now, but that number is expected to grow to 25% to 30% in the next few months.  Mobile ad revenue is projected to post 100% year-on-year gains.  All of this from Shashi Seth, senior vice president of search products at the Web portal.   (Source)

Mobile:  Online Retailers Seeing Surge, Believe They are From iPad

Mobile devices account for 22% of Rue La La’s revenues, with iPads
alone making up half of that, according to company Chairman Ben Fischman,
speaking at Shop.org’s Annual Summit.  “Our iPad sales are through the roof,” Fischman said, echoing reports by another online retailer, Ideeli, which also said the Apple tablet is responsible for about half its mobile sales.

Does your company have an iPad apt yet?  (Source)

Is a $3 Miilion Super Bowl Ad Really Worth It?

Quick:  can you name the four car companies that had ads running during the Super Bowl game last week?  Answer is below.

I know you were one of the record setting 111 million households that watched the Green Bay Packers’ eke out a 31-25 victory over the Pittsburgh Steelers.  Those 2011 Super Bowl commercials cost a whopping $3 million dollars for a 30 second spot.  And yet, here we are nearly a week later and most people won’t remember who even spent the money.  Perhaps the more relevant question is whether any of these ads actually led to an actual sale.  And what do you think the results will be six months from now when the game is long forgotten?

In one way I feel for marketing people who have to worry about things like “impressions”, share of mind and maintaining brand leadership.  All of these are code words for measurements to validate why they are spending this kind of money.  The more savvy marketers will tell you that what they are really doing is building a “marketing campaign” around that 30 second ad (or ads in some cases).  Airing the ad is a trigger for more engagement marketing efforts.

I’m sure we could argue for hours about the real “value” or “need” for brand advertising.  Some, such as the Tech Reviews and News, are suggesting that Super Bowl XLV was the first in which social media played a significant role in trying to gain some true, tangible, albeit measurable value of the TV advertising.

But since repetition is the cornerstone of consumer memory, wouldn’t companies be better off with 10 $300,000 commercials than one $3 million commercial?  For example, I’m just a little doubtful that after one commercial that I would be interested in buying a Chrysler just because it was made in Detroit and is supposedly being driven by Eminem.  Maybe if you hammered me for weeks on end I might think about it.

Understand that I totally agree that these ads are entertaining and a change from the ones that seem to run again and again and again on more normal TV viewing days.  But I’m thinking that by taking even one of those 30 second commercials, and investing that same $3 million in a print Yellow Pages and IYP buy  is going get your company a much bigger lift over the next year than that one commercial will.  Imagine what a $3 million Yellow Pages ad program would get you, right at the point someone is ready to buy.

So what do you think? Is it still worth it for advertisers to spend the money on Super Bowl commercials, especially when they can now when they can spread that amount of money over a wider range of print and social media efforts, which will probably see more meaningful results?

Beyond question, the Super Bowl is the most heavily watched TV event each year.  But given the proof that about half of the audience isn’t even just watching the commercials (hey, I had more chili to cook and the call of Mother Nature to heed) couldn’t the money have been more effective spent elsewhere??

AnswerVW, BMW, Chevy, and Chrysler