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IMARKETING REPORT 03.18.02:
ad agencies, post 9/11 online
>> intelligent internet marketing
Good Morning Execs,
All I can say is "wow". Letterman stays
with CBS, prompting Brokaw to whine
about his future, and making ABC loose
out on a potential $170 MM (ad rev)
gold mine that is Letterman; Oprah says
she's quitting, leaving Viacom, her distrib,
without a $300 MM cash cow in 4 yrs;
Sally Jesse's getting canceled in this ad
climate (and she's getting kinda tired
after 20 yrs); Rosie's gay and suddenly
proud enough to speak about all kindsa
issues, yay Rosie, ride that culturally
shifting cash wave. Expect to see her
on MTV/SHOWTIME gay TV net;
Jack Welch, the man, the legend, the
unfaithful bumb, having gotten caught
messing around with the editor of the
Harvard Business Review, who was
doing a special editorial on him, may
loose $300+ MM (half his worth), in
divorce; But probably the most impor-
tant story last week is the confirmation
that Arnold WILL be making T3 and
Conan 3! WOO HOO!! I just hope
that by the time they're released,
tickets remain a modest $10 bucks,
instead of the friggin' $14 bucks
some theatre in Hollywood is now
charging. Just proves how truly
valuable content is.
CONTENTS:
1. BRANDS: INDUSTRIES: ad agency mergers
2. BRANDRESEARCH: post 9/11 online consumer sentiment
3. CONSUMERFOCUS: LATINOS: talking to advertisers
4. MEDIA/ADSALES: new sponsorship innovation
5. MANAGEMENT: STRATEGIES: Monster's takes on local classifieds
6. OPERATIONS: ETAILING: online groceries rule
7. PR&PROMOTIONS: paying your customers to view ads,
MSN style
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1.
BRANDS: INDUSTRIES
By now you should know that Publicis
bought Bcom3, forming the 4th largest
agency holding co and #2 media buyer.
In 1984, 8 agencies were bought.
In 1985, 19 agencies were bought.
On May 5th, 1986, Omnicom was born.
All this activity in the ad agency biz
was to provide global clients with
global services, provide financial and
management stability, and growth.
Essentially, ad agencies provide the
ideas for talking to consumers. But
with all this merging industry execs
have always wondered if creativity
could flourish in ever-larger bureaucracies.
BOTTOM LINE: Yes, creativity suffers
in a bureaucracy. Yes, clients get lost
in large client lists. Yes, talented people
will get drowned out to client @$$-kissing.
So then, why do these deals? Because the
execs involved get rich without much
risk. And once they're rich, does work
really matter? The answer is no. If you
disagree, then explain why there are over
thousands of agencies, instead of just
4 holding companies? Because new
agencies recognized that anybody can
come up with an idea, and if dumb-idea
companies can be successful, good idea
companies will surely survive.
top
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2.
BRANDRESEARCH: STATS&DEMOS
In case you missed it, 6 months have
passed since 9/11 and everyone is claim-
ing to know how consumer sentiment
has changed and affected our culture.
From what I've read, consumers are
the same old consumers. They save,
they splurge, and they're still working
pretty hard to pay their bills, which
hasn't seemed to let off since 9/11.
Jupiter Media Metrix even reports that
"Tomorrow's Online Shopper Will Be
Older And Less Affluent" and will
"double in size over next five years"
Wow, imagine that. It took a bunch
of researchers to figure that one out.
BOTTOM LINE: Although I'm not
going to claim to know general con-
sumer sentiment, al berrios iMarketing
online consumer profiling for our clients
indicate that consumers are just fine.
They're still chatting about the same
things: picking each other up, their
fave companies going broke, getting
fired, movies, music and just about any
little thing completely unrelated to 9/11.
Thirdage.com, a community of people
in their 50s, 60s and above reports that
38% of their members are actually having
just as much fun sexually as they did in
their 20s. Humans will be humans.
top
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3.
CONSUMERFOCUS: LATINOS
Are latino newspapers the best non-
broadcasted buys for national adver-
tisers? "Latino newspapers have tra-
ditionally been a tough sell for major
because of their limited circulation
numbers". And it seems that online is
almost completely overlooked, too.
Advertisers that simply clumped all
things Latino into one big segment
simply advertised with major broad-
casters of Spanish language program-
ming because they were unaware of
all their options, online being one of
them, and didn't understand their ROI.
BOTTOM LINE: Although Yahoo
and AOL are big general content
media companies, each have dedi-
cated sections that are niche focused,
from Yahoo Mexico to AOL Latin
America, and both understand that
what an advertiser wants from its
Latino online buy is ROI it can't
get anywhere else. The key to success-
fully offering advertisers your opportu-
nity is in offering the advertiser data
about your aud online that they don't
already know and explain to them what
their ROI will be. So are you including
your this info in your media kit?
READ MORE:
writer: Kipp Cheng
http://www.DiversityInc.com
March 01, 2002
top
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4.
MEDIA/ADSALES
You know, I thought innovation online
ended with the concept of iMarketing,
but I was proven wrong by NYTimes.com,
They've actually allowed advertisers to
dig deep into their archives and select
stories they've published that relate to
an advertiser's product (so far, only
entertainment related cable program-
mers have done this, but with much
success.) Once selected, NYTimes.com
creates a customized archive of old
stories, with ads, that readers can access
for free. This package was sold as a
sponsorship for a number in the millions.
BOTTOM LINE: Your old content has
value. NYTimes has actually monetized
theirs. Not just by having researchers
pay for access to old stories, but now,
by selling to advertisers to support their
campaigns. Interestingly, the layout is
beautiful, clearly indicating it's all adver-
tiser paid for, so NYTimes doesn't alienate
readers. Some of you have these assets
already on hand. Target an advertiser,
go through your archives, and put together
a pitch around your content. 'nuff said.
READ MORE:
http://www.internetnews.com/IAR/article/0,,12_992051,00.html
http://www.nytimes.com/ads/marketing/laramie/index.html
top
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5.
MANAGEMENT: STRATEGIES
Monster.com invades local markets,
doing something very few dot.coms
have ever been able to do. Think about
it, can you name a dot.com that serves
a geographically local area, like
your local paper? Many have tried,
including Monster, with little success.
But what distinguishes this effort is
that they're actually creating micro
sites dedicated to helping people find
blue-collar jobs in their local markets,
again, something not successfully done
yet. With this strategy, Monster hopes
to capture local ad dollars.
BOTTOM LINE: Remember I mentioned
once that classifieds is a $60 Billion
dollar industry controlled by newspapers?
Well, obviously, someone at Monster
is reading this newsletter, because now,
they want a piece of that action. Should
you get into it? I say yes, but not on the
level Monster is, who's registered over 500
URLs under the "JobMatch" brand just
for all the possibilities in OHIO alone.
If I were you, I'd go to my local paper,
strike a deal to do their classifieds on
your site, and offer value added packages
to classifieds advertisers. It ain't millions
of dollars per deal, but don't worry, it will be.
top
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6.
OPERATIONS: ETAILING
Webvan killed the notion of selling
groceries online because they spent
heavily on establishing new ways to
distribute the food. Britain's Tesco
brought it back to life when they
reported close to half-a-million bucks
in profits from online grocery biz in
their local markets. Now Albertsons
and Safeway are battling it out to pick
up where Webvan left off and dominate
US online grocery biz.
BOTTOM LINE: You've just come
home from work. It's 7:30pm and
your local supermarket closes at 8pm.
You can rush out, tired, in the rain,
to get a couple of things before they
close or you can stay home, call take
out, and put it off during the weekend
rush. That's pretty much my day, too.
I wish I could order my groceries on-
line from my local Shoprite, but there
aren't any entrepreneurial companies
around my way. So will these new
efforts survive? With slobs like me, yes.
But no strategy can survive without
strong marketing efforts supporting them.
READ MORE:
http://www.ecommercetimes.com/perl/story/16712.html
http://www.ecommercetimes.com/perl/story/16772.html
top
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7. PR&PROMOTIONS
Microsoft plays dirty with AOL by
paying AOL customers to use MSN.
Wow. And they're spending $50 MM
to tell people about this promo, too.
Turns out that AOL uses lots of free-bes
to get their numbers up, now 34 MM,
so Wall Street and advertisers leave
them alone. And I don't blame AOL,
or MSN for their tactics, after reading
that the TV/mag ad markets are so de-
pressed, that advertisers once considered
too tacky to advertise (during prime time),
are advertising during prime time.
BOTTOM LINE: What's going on here?
You're hearing the ad market sucks all
over the place. TV/mags especially.
But what you're not hearing too often
is that 11% of consumers' media time is
spent online (at least according to AOL
and MSN), and as a result, advertisers
should (and have) been putting more
dollars into online ads, since they can
target and measure results better. But
it's also about how expensive it is.
Liquor companies can now advertise
on TV, but don't need to since they're
doing just fine with cheaper mags & internet.
READ MORE:
http://dmnews.com/cgi-bin/artprevbot.cgi?article_id=19333
top
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