Posted on 27 August 2008
Everybody wants a write off and charitable contributions top the list for most consumers - and businesses. But, did you know those philanthropic contributions and activities could also give a brand boost? According to a recent report, charitable actions can lead consumers to action.
The report finds that nearly three-quarters of consumers have purchased a brand because it supported a cause they believed in. Corporations reported seeing an increase in sales of more than 25% after the public relations from helping a favored cause.
When you add this historical data to the new offerings of the Internet, cause marketing can have an even greater effect.
Consider the recent Haagen Dazs viral promotion to let consumers know the honey bee was in danger. The ice cream company, which relies on honey bees for a number of it’s flavors, launched a multi-platform campaign which included television and print ads as well as an online video featuring “b-boys” dancing. The video quickly became viral with teens and young adults sharing content and adding the video to their own social network profiles.
Two weeks after the launch on August 1, the video had 2 million views and 3500 comments as well as a 4 ½ star review on YouTube. About 150 websites and blogs have also picked up the video, which increased hits to the Haagen Dazs branded micro site.
While the plight of the bees is still up in the air, the effect on Haagen Dazs brand can already be seen in the increased consumer interest to the ice cream maker’s site and the hits to the video.
Posted in News
Posted on 26 July 2008
Marketers need more trust-building elements on their websites to help customers make that all important decision to purchase. One particular method is to pay attention to product images and enable the consumer to scrutinize the color, size and shape as though they were in a bricks and mortar store.
Early days of online retail were hampered by poor product imagery and the inability for consumers to get a good idea of the size, shape and color of a product. Nowadays there’s no excuse for poor imagery with tools such as zoom, rotate and even video and the increase in broadband penetration and online payment options means more and more consumers are willing to shop online.
But just as a sloppy shop window will attract fewer eyeballs, so will sloppy product images on websites. Images are very important to consumers whether they’re buying a hockey stick or a house.
A case in point is eBay where, according to Jim Miotke, president of BetterPhoto.com, 83% of eBay shoppers ignore listings without images. Those items featured in galleries get 15% more activity and those with super-size photos show a 24% spike in sales, found the research.
So what can marketers do to maximize the impact product images have on consumers?
- Keep product sizes relative and consistent.
- Include ways in which the consumer can “handle” the goods as if they were in a store by allowing them the ability to zoom in to view details in close-up, i.e. clasp on a brooch or button on blouse and to be able to view the product from different angles.
- If possible, use “actual size” images or links.
- Where “actual size’ images aren’t feasible – clothing, large electronic items – include an image where the product is in context. Flowers, for instance, could be photographed in the arms of a recipient, allowing a consumer to judge the value and content for themselves and clothes are always better judged on models.
- If a product comes in a variety of colors consumers will want to know what the product looks like in their color choice. Enable them to view images of all color combinations or, at the very least, a color chart.
- Have you tried video? How about showing your products in use? Consumers are desperate for as much of the bricks and mortar experience as possible.
By paying attention to the details mentioned above and giving consumers the best visual experience of a product that they can, marketers can decrease returns while increasing retention and sales conversions.
Posted on 24 July 2008
With the Olympic Games just a month off, some brands are looking to extend their sponsorships with social media programs. Lenovo has created 100 athletes’ blogs in an attempt to align itself with some less mainstream sports, such as field hockey and modern pentathlon. It gave the athletes laptops and video cameras to chronicle their preparation for the games.
“We wanted to do something that shows our tech prowess, not something that uses the Web as billboard,” said David Churbuck, vp of global Web marketing at Lenovo.
Lenovo turned to Google for help with the program. Google is providing blogging software via Blogger and video hosting through YouTube.
In keeping with the ethos of the social Web, Lenovo is not hosting the blogs on its own site. Most athletes either had their own sites or established them for this project. Lenovo is adding distribution by highlighting the blogs on its Web site at www.lenovo.com/voices.
Lenovo has asked the participating athletes to show a “Lenovo 2008 Olympics Blogger” badge on their sites. Most have done so, said Churbuck. It isn’t asking for any mention of Lenovo products, he added.
“I don’t want to be in the position of telling them what to write,” he said. “It’s their blog, they can do what they want.”
The blogging program is complemented with a Facebook effort that lets users virtually identify themselves with their country’s teams. Federated Media and Citizen Sports created country applications users can add to their profiles. So far, more than 100,000 have been downloaded.
” A brand like Lenovo working within Facebook is interesting because that’s the nut that a bunch of people are trying to crack,” said Jeff Ma, CEO of Citizen Sports. “Most brands and agencies don’t even know how to advertise on Facebook. There’s still a lot of education.”
Lenovo’s not alone in expanding its Olympics marketing socially. McDonald’s has also expanded on its traditional Olympics advertising with a social strategy centered around its first alternate-reality game. Called “The Lost Ring,” the AKQA-created game has been operational since April. In that time, McDonald’s boasts more than 2 million visitors in 100 countries have played it at some level. “The Lost Ring” challenges players to solve mysteries surrounding the Olympics.
“It’s an opportunity to engage with the youth culture around the world in a very meaningful and creative experience — one I’d say they can’t get anywhere else,” said Mary Dillon, McDonald’s chief marketing officer. “We want to be on the cutting edge of innovations.”
Dillon said the by-product of taking a plunge into a new area like an ARG is the rub-off effect it might give the McDonald’s brand among young consumers.
“We would hope the same community would be a little surprised McDonald’s is bringing this to them,” she said.
McDonald’s is pleased with participation rates for the game, Dillon said, though she admitted some of the extra benefits, like positive buzz, were more difficult to quantify than traditional ad metrics.
Those intangibles were the lure of the Lenovo athlete-blogging program, said Churbuck.
“The old model of blunt impressions, the billboard model, is not going to do it for me,” he said. “I’m far more interested in how many comments we drove, the traffic to athletes’ blogs, downloads of the applications. Those are more tangible expressions of engagement with the brand than clicks.”
Source: adweek.com
Posted in News
Posted on 07 July 2008
Today, Hasbro and EA announced that the Facebook app EA has been working on for more than six months will be launched later this month, although a version on Pogo (EA’s online casual gaming site) is available today.
There is a Facebook Scrabble app in private beta, but the company is still testing it. It is not clear what is taking EA so long. After all, this is just a Facebook app, not a fully-featured video game like Spore.
It is also not clear what will happen to Scrabulous, the unofficial version of Scrabble that has become one of the most popular apps on Facebook.
Scrabulous, which was developed by two brothers in India, was almost shut down earlier this year because Hasbro claims that it infringes on its trademarks. Scrabulous was in acquisition talks with many different companies, including Electronic Arts (which has the domestic license to digital versions of the game) and Real Networks (which has the international digital rights), but everyone balked on price.
Rather than force Facebook to shut down Scrabulous immediately, however, Hasbro and Electronic Arts realized that they would suffer an extreme backlash if they took away everyone’s favorite Facebook game without offering up an alternative. Now that the alternative is almost here, it remains to be seen whether they will try to eliminate the competition.
Posted on 05 July 2008
Nothing represents the changing of the guard as much as how the Big Three Portals have fallen from grace. Don’t get me wrong: from an operational standpoint, Yahoo! (YHOO) is a fine property, but that company is a bit of a… how do you say, disaster.
MSN is there, trekking along, costing Microsoft (MSFT) billions in losses over the years without really making a push for #1. Sort of like all other MSFT products not named Windows or Office, basically.
Meanwhile, Time Warner’s (TWX) AOL is drifting along, buying up more and more assets - some smart, some not - but now putting itself up for sale. While the company sold a 5% stake of itself to Google (GOOG) for a $1B sum - valuing itself for a tidy $20B - word is that it might be content with a $15B offer… which means either Yahoo!, MSFT, News Corp. (NWS), or Comcast (CMCSA) would show an interest.
While some will be quick to say the portals lost to social networking sites such as Facebook and MySpace, make no mistake about it, they lost to search. Revenues matter, everything else is noise. Google has the web ecosystem in the bag, and considering that Google’s YouTube is more dominating in video than Google is in search - and that video is the next high growth opportunity after search’s decade - then you have to wonder how much more hurting Google can put on the Web.
When you consider how leadership in search helped Google propel itself to King of the Web, you sort of understand why MSFT just shelled out $100M for something that basically can be summed up as Wikipedia site search.
Posted in News
Posted on 04 July 2008
FBI agents were able to cross-link surveillance video with ICQ info to arrest a man in a dark baseball cap emblazoned with the words “Top Gun” and a star and wings symbol. In 2007, First Bank of St. Louis lost about $5 million in fraudulent ATM withdrawals to someone who had hacked four iWire Prepaid Card accounts.
Surveillance video from a Washington Mutual bank branch in Brooklyn, N.Y., where some of the unauthorized withdrawals were made, showed a Caucasian man in a dark baseball cap emblazoned with the words “Top Gun” and a star and wings symbol, as well as a tan-colored sweatshirt or jacket with a dark front panel and dark trim at the zipper and collar, according to the affidavit of FBI special agent Albert Murray.
“A Google search for the UIN found that this ICQ UIN was identified with a ham radio operator who uses a specific radio call sign,” Murray’s affidavit says. “A Google search for this call sign led to Web sites for ham radio enthusiasts, such as www.hamgallery.com and www.grz.co.il.”
At those sites, investigators found photographs showing “Yuri” wearing “the same tan-colored jacket or sweatshirt as the individual in the Washington Mutual and Citibank ATM videos,” Murray’s affidavit says.
A Google search also led to a link to a Federal Communications Commission enforcement letter sent to the amateur radio operator using the radio call sign associated with “Yuri.” The letter, which detailed various ham radio rules violations, was addressed to “Yuriy Ryabinin” in Brooklyn.
On Friday, a Brooklyn grand jury returned a three-count indictment against Yuriy Ryabinin, Olena Rakushchynets, and Ivan Biltse for conspiracy to commit access device fraud, access device fraud, and obstruction of justice.
Posted in News
Posted on 04 July 2008
U.S. District Judge Louis L. Stanton authorized full access to the YouTube logs after Viacom Inc. and other copyright holders argued that they needed the data to show whether their copyright-protected videos are more heavily watched than amateur clips.The data would not be publicly released but disclosed only to the plaintiffs, and it would include less specific identifiers than a user’s real name or e-mail address.
Lawyers for Google Inc., which owns YouTube, said producing 12 terabytes of data — equivalent to the text of roughly 12 million books — would be expensive, time-consuming and a threat to users’ privacy.
The database includes information on when each video gets played, which can be used to determine how often a clip is viewed. Attached to each entry is each viewer’s unique login ID and the Internet Protocol, or IP, address for that viewer’s computer.
Viacom is seeking at least $1 billion in damages from Google, saying YouTube has built a business by using the Internet to “willfully infringe” copyrights on Viacom shows, which include Comedy Central’s “The Daily Show with Jon Stewart” and Nickelodeon’s “SpongeBob SquarePants” cartoon.
In a statement, Google said it was “disappointed the court granted Viacom’s overreaching demand for viewing history. We are asking Viacom to respect users’ privacy and allow us to anonymize the logs before producing them under the court’s order.”
Posted in News
Posted on 03 July 2008
Several recent worldwide online ad spending projections indicate that the medium still has a lot of room for growth. Worldwide online ad spending will reach $65.2 billion in 2008, according to IDC’s “Digital Marketplace Model and Forecast.” The research company predicted 15% to 20% annual growth through 2011, when spending would hit $106.6 billion.
IDC said that online ads would account for nearly 10% of all ad spending across all media in 2008, rising to 13.6% by 2011. Nearly one-fifth of Western European ad spending will be online by that time.
“The long-term opportunity for Internet advertising can be seen in the disparity between per-capita spending,” said John Gantz, chief research officer at IDC, in a statement. “Total advertising revenues equate to more than $105 per inhabitant of the planet, while Internet advertising revenues are less than $50 per active Internet user.”
In May, Credit Suisse lowered its worldwide online ad spending estimates and forecast only modest growth in total ad spending for the next two years. The investment bank said the US and most other developed nations would actually drag growth down, thanks to phenomenal growth in developing nations.
Credit Suisse’s estimates of online ad spending as a percentage of total ad spending were very close to IDC’s: 10% last year and 12% this year.
The climbing ratio of online ad spending to total ad spending will help drive up the dollar amount advertisers spend on the Web.
eMarketer senior analyst David Hallerman has noted a number of reasons to expect continued growth in online ad spending in the US, which also apply to the medium worldwide. Among them:
Online ads are more measurable than other media, making them increasingly appealing to advertisers.The Internet audience is huge, so the simple process of advertising following eyeballs will lift spending.Internet ad prices are rising, thanks to targeting and other techniques, which can push up overall spending.
“US Internet ad spending is not impervious to the current economic weakness. However, those economic effects are more the case for display advertising than for paid search advertising,” said Mr. Hallerman. “Even so, the trend toward display ads, including video and rich media, continues to attract brand marketers as they shift spending from traditional media to the Internet.”
Posted in News
Posted on 02 July 2008
A new study suggests that attitude rather than availability may be the key reason why more Americans don’t have high-speed Internet access. The findings from the Pew Internet and American Life Project challenge the argument that broadband providers need to more aggressively roll out supply to meet demand.
Only 14 percent of dial-up users say they’re stuck with the older, slower connection technology because they can’t get broadband in their neighborhoods, Pew reported Wednesday.
Thirty-five percent say they’re still on dial-up because broadband prices are too high, while another 19 percent say nothing would persuade them to upgrade. The remainder have other reasons or do not know.
“That suggests that solving the supply problem where there are availability gaps is only going to go so far,” said John Horrigan, the study’s author. “It’s going to have to be a process of getting people more engaged with information technology and demonstrating to people it’s worth it for them to make the investment of time and money.”
Nonetheless, the Pew study does support concerns that rural Americans have more trouble getting faster Internet connections, which bring greater opportunities to work from home or log into classes at distant universities.
Twenty-four percent of rural dial-up users say they would get broadband if it becomes available, compared with 11 percent for suburbanites and 3 percent for city dwellers.
Vint Cerf, one of the Internet’s key inventors and an advocate for the idea that the government should be more active in expanding broadband, suspects that many more dial-up users would be interested in going high-speed if they had a better idea of what they’re missing. He pointed out that broadband access is available from only one provider in many areas, keeping prices high and speeds low.
“Some residential users may not see a need for higher speeds because they don’t know about or don’t have ability to use high speeds,” Cerf said. “My enthusiasm for video conferencing improved dramatically when all family members had MacBook Pros with built-in video cameras, for example.”
Overall, Pew found that 55 percent of American adults now have broadband access at home, up from 47 percent a year earlier and 42 percent in March 2007. By contrast, only 10 percent of Americans now have dial-up access.
Despite the increase in overall broadband adoption, though, growth has been flat among blacks and poorer Americans.
Of the Americans with no Internet access at all, about a third say they have no interest in logging on, even at dial-up speeds. Nearly 20 percent of nonusers had access in the past but dropped it. Older and lower-income Americans are most likely to be offline.
Pew’s telephone study of 2,251 U.S. adults, including 1,553 Internet users, was conducted April 8 to May 11 and has a margin of sampling error of plus or minus 2 percentage points. The error margins for subgroups are higher — plus or minus 7 percentage points for the dial-up sample.
Source: CNN
Posted on 01 July 2008
Primetime and scheduled TV are losing their impact as consumers create their own entertainment lineups. Digital video recorders (DVRs) and video-on-demand (VOD) allow viewers to watch content on their own schedule and avoid traditional TV advertising.
At the same time, the slowing economy drives advertisers to demand the greatest return on their advertising investments. With interactive digital platforms allowing more measurability, the business case for traditional TV advertising is becoming increasingly weak.
VOD would seem well-positioned to capture a rising share of ad spending, but the way consumers use it may limit its potential as an ad medium.
Most cable TV operators offer free VOD content in combination with pay-per-view options, but time-shifting with DVRs is proving more popular.
According to Comcast—the leading cable operator in the US with 14.7 million subscribers—the most popular free VOD content is karaoke, music videos and programs for children.
VOD’s ad potential is somewhat limited by use. An August 2007 study by IBM indicated that only 48% of US adult Internet users had used VOD.
eMarketer estimates that VOD is available in one-third of TV households today, and will reach over 60% of households by 2012.
Content is the big driver of VOD usage. ChoiceStream data from December 2007 shows there would be greater viewership of VOD if there were “more content of interest.” Notably, however, 57% of respondents said they would not watch more VOD even if the content were better. Clearly price, awareness and usability are also factors in VOD usage.
Increasing the VOD audience (and ad revenue potential) may depend in part on advertisers and marketers: Better content, supported by ads, combined with VOD awareness and education campaigns, could be part of the solution.