8/13/09
Hi All!
I’m back and I thought I’d devote this week’s blog to follow-up on some of the issues discussed previously.
1. Magazines with ad page increases
Not surprisingly, given what I pointed out in the 7/16/09 post, some magazines posted advertising page gains in the first half of 2009.
Those on the winners list include: Fitness, Cooking with Paula Deen, OK!, Family Circle, Scholastic Parent & Child, Organic Gardening, Sports Illustrated for Kids, Country Weekly, and Muscle & Fitness.
It seems pretty obvious that most of these magazines are addressing current lifestyle trends – health concerns, more home cooking, and our obsession with our children. Meanwhile, OK! benefited from the fact that it is now being measured by MRI and Simmons, which means that established advertisers are now including it in their consideration set.
What I’d like to see now is the readership trends for these publications. I bet they’re up too.
2. This round goes to Powerade
As discussed in the 3/30/09 post, I believe that when companies engage in spitting matches, neither side wins.
Manhattan District judge John G. Koeltl has ruled that Gatorade failed to prove its case that Powerade’s advertising claims were false, and that it was guilty of trademark dilution. In addition to pointing out that all the claims were literally true, the ruling also stated that SVC (Gatorade’s parent company) “has not shown either a likelihood of irreparable injury or a likelihood of success on the merit.”
I’m still betting that both brands suffered by pointing out the chemical content of their products.
Roberts, J. (2009, August 10). Now Read This. newsweek.com. Retrived August 12, 2009 from
http://www.newsweek.com/id/211289
Hein, K. (2009, August 6). How Powerade Defeated Gatorade in Court. brandweek.com. Retrived August 12, 2009 from
http://www.brandweek.com/bw/content_display/news-and-features/direct/e3i43f8401a4817748c139d1d9d293d0b12?pn=2
Thursday, August 13, 2009
Sunday, July 26, 2009
Thursday, July 23, 2009
Does this ad make you want to buy a PC?
7/23/09
Perhaps you have noticed that Microsoft has been running a series of commercials with the key message that PCs are a better value than Macs.
Here’s the URL for one on YouTube: http://www.youtube.com/watch?v=EqvRi2akZMA
We’ve already discussed the fact that many companies have switched to a value strategy because of the economy, and this is yet another example. So what do you think? Is it compelling? If you were considering buying a Mac would this change your perspective?
Apparently the folks at Apple are concerned; so much so that they contacted Microsoft to ask that they stop running the ads because Apple has lowered their prices. (Parekh, 2009)
And according to yesterday’s Wall Street Journal, revenue on the Mac business fell 8% last quarter due to price cutting. Kane, 2009)
Parekh, R. (2009, July 16). Microsoft Undeterred by Alleged Legal Threat From Apple. adage.com. Retrived, July 22, 2009 from
http://adage.com/article?article_id=137989
Kane, Y. (2009, July 22, 2009). Apple Net Up 15% on iPhone Surge. Wall Street Journal, p.B1.
Perhaps you have noticed that Microsoft has been running a series of commercials with the key message that PCs are a better value than Macs.
Here’s the URL for one on YouTube: http://www.youtube.com/watch?v=EqvRi2akZMA
We’ve already discussed the fact that many companies have switched to a value strategy because of the economy, and this is yet another example. So what do you think? Is it compelling? If you were considering buying a Mac would this change your perspective?
Apparently the folks at Apple are concerned; so much so that they contacted Microsoft to ask that they stop running the ads because Apple has lowered their prices. (Parekh, 2009)
And according to yesterday’s Wall Street Journal, revenue on the Mac business fell 8% last quarter due to price cutting. Kane, 2009)
Parekh, R. (2009, July 16). Microsoft Undeterred by Alleged Legal Threat From Apple. adage.com. Retrived, July 22, 2009 from
http://adage.com/article?article_id=137989
Kane, Y. (2009, July 22, 2009). Apple Net Up 15% on iPhone Surge. Wall Street Journal, p.B1.
Thursday, July 16, 2009
Are advertisers missing an opportunity with magazines?
7/16/09
On June 26, 2009, the MPA (Magazine Publishers of America) published a white paper on the state of the business which shows that the number of magazine readers has actually grown +5.7% over the past 5 years. And, even young readers, i.e. Adults 18-34, are showing a +2.6% increase over the same period. (“Consumers value magazines in their media mix. Do You?”, 2009)
A study from McPheters & Co., published in 2007, indicated that Gen X and Gen Y are in fact reading more magazines monthly than do Baby Boomers and The Silent Generation. Specifically, 19-24 year-olds reported reading an average of 18.3 titles in the previous 6 months. 25-34 year-olds read 18.9, while those 45-54 said they read 16.7, and people over 65 said they read 14. (Ives, 2007)
So, why were magazine ad pages down another -29.4% in 2nd quarter 2009? (Sass, 2009)
I sense a disconnect here. Do you? Are you still reading magazines? Do you want your favorite brands to continue to support them?
(2009, June 29). Consumers value magazines in their media mix. Do you? magazine.org. Retrived, July 15, 2009, from
http://www.magazine.org/advertising/advertising-white-paper.aspx
Ives, N. (2007, May 22). Young Adults Bigger Mag Readers Than Their Parents. adage.com. Retrived, May 24, 2007, from http://adage.com/print?article_id=116831
Sass, E. (2009, July 10). Magazine Ad pages Tumble 29.4% in Q2. mediapost.com. Retrieved, July 15 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109601
On June 26, 2009, the MPA (Magazine Publishers of America) published a white paper on the state of the business which shows that the number of magazine readers has actually grown +5.7% over the past 5 years. And, even young readers, i.e. Adults 18-34, are showing a +2.6% increase over the same period. (“Consumers value magazines in their media mix. Do You?”, 2009)
A study from McPheters & Co., published in 2007, indicated that Gen X and Gen Y are in fact reading more magazines monthly than do Baby Boomers and The Silent Generation. Specifically, 19-24 year-olds reported reading an average of 18.3 titles in the previous 6 months. 25-34 year-olds read 18.9, while those 45-54 said they read 16.7, and people over 65 said they read 14. (Ives, 2007)
So, why were magazine ad pages down another -29.4% in 2nd quarter 2009? (Sass, 2009)
I sense a disconnect here. Do you? Are you still reading magazines? Do you want your favorite brands to continue to support them?
(2009, June 29). Consumers value magazines in their media mix. Do you? magazine.org. Retrived, July 15, 2009, from
http://www.magazine.org/advertising/advertising-white-paper.aspx
Ives, N. (2007, May 22). Young Adults Bigger Mag Readers Than Their Parents. adage.com. Retrived, May 24, 2007, from http://adage.com/print?article_id=116831
Sass, E. (2009, July 10). Magazine Ad pages Tumble 29.4% in Q2. mediapost.com. Retrieved, July 15 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109601
Thursday, July 9, 2009
Is this the beginning of the end for free online content?
7/9/09
The topic du jour at this week’s Sun Valley Allen and Company conference, is predicted to be a debate over paid online content. After giving away their content for free for the past decade, newspapers are now folding in droves as their offline revenue declines. The remaining media companies don’t want to make the same mistake. (Li, 2009).
So, what do they do? The first thing is to clamp down on unauthorized use of copyrighted material. While past legal rulings, in the form of the Digital Millennium Copyright Act’s safe harbor provision have held that web sites are not liable for copyright infringement committed by users provided the sites remove the clips upon request, and they haven’t financially profited by the content; one could argue that YouTube’s entire business model is built on pirated material. (Davis, 2009)
An intriguing solution currently being offered by the Financial Times is tiered pricing for access. When I attempted to access the article above, I was given 4 registration options offering various levels of access to current and archived materials. Lighter use was free, but unlimited access was $3.49 per week, and full access, including the offline newspaper was priced at $5.75 per week. (“FT.com”, 2009). That seems reasonable to me. How about you?
Li, K. (2009, July 7). Sun Valley set to consider paid content. ft.com. Retrived, July 7, 2009 from
http://www.ft.com/cms/s/0/38da0ffc-6a8c-11de-ad04-00144feabdc0.html
Davis, W. (2009, July 8). YouTube Wins Partial Victory Against Copyright Owners. mediapost.com. Retrived, July 9, 2009 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109359
(2009, July 7). FT.com registration page. ft.com. Retrived July 9, 2009 from
http://www.ft.com/cms/275bc334-3063-11dc-9a81-0000779fd2ac.html?segid=70000&location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F38da0ffc-6a8c-11de-ad04-00144feabdc0.html
The topic du jour at this week’s Sun Valley Allen and Company conference, is predicted to be a debate over paid online content. After giving away their content for free for the past decade, newspapers are now folding in droves as their offline revenue declines. The remaining media companies don’t want to make the same mistake. (Li, 2009).
So, what do they do? The first thing is to clamp down on unauthorized use of copyrighted material. While past legal rulings, in the form of the Digital Millennium Copyright Act’s safe harbor provision have held that web sites are not liable for copyright infringement committed by users provided the sites remove the clips upon request, and they haven’t financially profited by the content; one could argue that YouTube’s entire business model is built on pirated material. (Davis, 2009)
An intriguing solution currently being offered by the Financial Times is tiered pricing for access. When I attempted to access the article above, I was given 4 registration options offering various levels of access to current and archived materials. Lighter use was free, but unlimited access was $3.49 per week, and full access, including the offline newspaper was priced at $5.75 per week. (“FT.com”, 2009). That seems reasonable to me. How about you?
Li, K. (2009, July 7). Sun Valley set to consider paid content. ft.com. Retrived, July 7, 2009 from
http://www.ft.com/cms/s/0/38da0ffc-6a8c-11de-ad04-00144feabdc0.html
Davis, W. (2009, July 8). YouTube Wins Partial Victory Against Copyright Owners. mediapost.com. Retrived, July 9, 2009 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=109359
(2009, July 7). FT.com registration page. ft.com. Retrived July 9, 2009 from
http://www.ft.com/cms/275bc334-3063-11dc-9a81-0000779fd2ac.html?segid=70000&location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F38da0ffc-6a8c-11de-ad04-00144feabdc0.html
Thursday, July 2, 2009
Does Turner Have a Winning Strategy?
7/1/09
As the upfront season progresses, Turner has announced a new sales strategy. Rather than selling their individual networks (TBS, TNT, CNN, etc.) as stand alone opportunities they are reaching across all their properties and selecting programming that reaches a specific target, and selling those as a package.
So, for advertisers seeking to reach Men 18-34, they suggest the following line-up: “The Office” (TBS), “Family Guy” (TBS), “Operation REPO” (TruTV), and Adult Swim (Cartoon).
They are also including their digital properties in the packages, which can be further customized with selected movies or other programs that advertisers believe are suitable for their audiences.
And, they are providing companies with creative help to develop advertiser-sponsored content, e.g. microseries.
Clearly, they have recognized that most advertisers these days are interested in niche audiences, not mass ones.
What do you think? Will advertisers respond?
Steinberg, B. (2009, June 29). Turner Lets Marketers buy Shows Rather Than Networks. adage.com Retrieved, July 1, 2009 from
http://adage.com/mediaworks/article?article_id=137607
As the upfront season progresses, Turner has announced a new sales strategy. Rather than selling their individual networks (TBS, TNT, CNN, etc.) as stand alone opportunities they are reaching across all their properties and selecting programming that reaches a specific target, and selling those as a package.
So, for advertisers seeking to reach Men 18-34, they suggest the following line-up: “The Office” (TBS), “Family Guy” (TBS), “Operation REPO” (TruTV), and Adult Swim (Cartoon).
They are also including their digital properties in the packages, which can be further customized with selected movies or other programs that advertisers believe are suitable for their audiences.
And, they are providing companies with creative help to develop advertiser-sponsored content, e.g. microseries.
Clearly, they have recognized that most advertisers these days are interested in niche audiences, not mass ones.
What do you think? Will advertisers respond?
Steinberg, B. (2009, June 29). Turner Lets Marketers buy Shows Rather Than Networks. adage.com Retrieved, July 1, 2009 from
http://adage.com/mediaworks/article?article_id=137607
Thursday, June 25, 2009
Can advertising persuade people to eat healthier?
6/25/09
If as critics believe, advertising leads people to buy things they don’t need, then is the reverse also true? Can advertising help people to make smarter choices and eat better?
Here comes Tropicana to take a shot at it. Since their orange juice is 100% non-reconstituted juice, and contains no additives, it is uniquely positioned to tout the health properties of its product. They intend to start by focusing on the fact that 7 out of 10 adults, as well as most children, are not consuming the USDA-recommended 4 fruit servings per day.
Interestingly, according to the CMO, “We’ve learned a majority of orange juice drinkers are unaware that 100% orange juice contributes to their daily fruit intake”. (Lukovitz, 2009)
Hmm. What does this say about non-drinkers? Are they equally ignorant, or perhaps more so? Will this campaign help educate a public that just doesn’t want to know? Will it sell more Tropicana orange juice?
Lukovitz, K. (2009, June 16). Tropicana Promotes OJ As Daily Fruit Serving. mediapost.com. Retrived June 22, 2009 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=108063
If as critics believe, advertising leads people to buy things they don’t need, then is the reverse also true? Can advertising help people to make smarter choices and eat better?
Here comes Tropicana to take a shot at it. Since their orange juice is 100% non-reconstituted juice, and contains no additives, it is uniquely positioned to tout the health properties of its product. They intend to start by focusing on the fact that 7 out of 10 adults, as well as most children, are not consuming the USDA-recommended 4 fruit servings per day.
Interestingly, according to the CMO, “We’ve learned a majority of orange juice drinkers are unaware that 100% orange juice contributes to their daily fruit intake”. (Lukovitz, 2009)
Hmm. What does this say about non-drinkers? Are they equally ignorant, or perhaps more so? Will this campaign help educate a public that just doesn’t want to know? Will it sell more Tropicana orange juice?
Lukovitz, K. (2009, June 16). Tropicana Promotes OJ As Daily Fruit Serving. mediapost.com. Retrived June 22, 2009 from
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=108063
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