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New Face of TV Advertising and other articles


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Market Watch is a snapshot of current issues and insights that can influence your consumers or customers and, therefore, impact your brand

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New Face of TV Advertising and other articles

  1. 1. ©XPotential 2011 March 2011 Feature Focus: New Face of TV Advertising With rising numbers of people watching TV on demand on-line, and on digital video recorders it is feared that numbers of people watching TV adverts are depleting, and that they are no longer an effective marketing investment. However, according to Thinkbox, commercial TV still reaches 70% of people in 1 day. The number of TV sets sold last year reached double that of 2002, and the average number of sets per house increased to 3. Most adults watch more TV than they even realise, a BBC report suggests up to 1hr more a day. Ad skipping is only possible for the 7% of TV that is watched time-shifted. Although 86% of people skip through recorded adverts, even those watched in fast-forward are claimed to have 65% of the recall that they do at normal speed, because skipping needs fixed attention. Web 2.0 has changed the importance of TV ads. Now an engaging TV ad campaign can be pivotal in creating online search and discussion of the brand. In fact 57% of people have searched online as a result of a TV ad. IPA research shows that campaigns involving TV are 35% more effective than ones without, and combining TV with online communications delivers up to 50% increase in positive brand perception. With online brand search following a TV ad being such a common behaviour, it is essential that TV campaigns are supported by SEO, social media management and good official pages. With mobile internet devices like laptops and phones being used in front of the TV, a TV ad can lead to purchase immediately through e-commerce. This could be part of Consumer Connections: Can Own Label Match Brands? The recession has given retailers the chance to grow the success of their own label products, with shoppers trading down to save money. As financial matters improve, will shoppers return to the brands? “Top tier” own label ranges such as Tesco Finest have narrowed the gap in quality between store and manufacturer brand. Aldi’s recent campaign even used the line “Like brands only cheaper”. Growing “word of mouse” (e.g. online reviews), is increasing the focus and transparency of product performance, which could benefit own label products that match brand quality. However, for brands image and perception offer additional benefits that can even enhance perceived quality. (continued on next page) the reason why marketers increased their TV spend last year more than any other channel. Savvy TV ad campaigns build in opportunities for online conversations. BT’s Adam and Jane campaign pushes people to engage online by offering the chance to vote for future ad content, e.g. what will their first dance be to. For many, simultaneously watching TV and engaging online reflects the way they already discuss the programmes’ content. Even the diffusion of audiences across more channels benefits TV advertisers in terms of more specific targeting. TV ads can also be embedded in relevant on-demand web content. Although it is expensive to create, TV looks to remain the cornerstone of many brands’ advertising, although its purpose and response behaviours from viewers are changing. - 1 -
  2. 2. ©XPotential 2011 March 2011 Apps live and die by reviews, so quality and relevance are key to success. Unilever Axe built their “Angel wake-up” app around the insight that most young males use their phone as an alarm clock, creating a brand integration rather than interruption to the users’ life. Consumer Connections: Can Own Label Match Brands? cont. When students were fed wine through a tube, they enjoyed the same wine better when told it was more expensive. This suggests that favourable perception of a brand could improve enjoyment vs. own label regardless of actual quality; this could be reflected in online reviews, making them less objective and making it harder for word of mouth to demonstrate own label quality. Aside from branding’s effect on enjoyment, consumers are conscious of desirability of brands among their peers. They may swap to own label to save money, but when buying a food gift 69% would choose branded, showing that they value branded items higher and would chose them when others are aware of their brand choice. Brands can afford to focus more of their message on the relevant category, making their expertise seem stronger than own-labels marketed under the retailer’s name, which has to represent their retailer brand across a wide range of categories, diluting their expertise. Retail Therapy: Pop-up shops Pop-up retail was welcomed as a recession- time trend, but its benefits go beyond a quick fix of rent for high street landlords, and the trend is still going strong. Clarins recently used pop-up retail during London Fashion Week to promote their new range, learn about their consumers and gain ambassadors to be seen carrying their gift bags. Last half term, Moshi Monsters (children’s online game) “popped up” in Whiteley’s shopping centre in London, selling merchandise and building awareness. The awareness and buzz created by limited period pop-up retail extends to the online world, where news of the limited offer spreads through social media, improving search engine results. (continued on next page) Trend Spotting: Mobile Marketing With an increasing number of smart- phones in the hands of consumers, brands offer apps for almost everything and with new location based communications, possibilities are widening, but so is the danger of damaging brand affinity with bombardment. Metro offers location-aware restaurant reviews; a useful service when looking for somewhere to eat, but with talk of retailers and brands using the technology to flag up nearby offers, it is easy to imagine annoying over-communication. Some argue that mobile-based offers could improve redemption rate, (only 1% of paper coupons get used). But if shoppers are not interested, targeting their mobiles could be damaging; people consider mobile marketing more intrusive than direct mail. Constant internet access provided by mobiles presents key opportunities. Online campaigns optimized for mobile can gain 80% higher click-through. Google advises being ready and visible – so interested users can find you, rather than have you intrude on them. - 2 -
  3. 3. ©XPotential 2011 -2- Market Watch is a snapshot of current issues and insights that can influence your consumers or customers and, therefore, impact your brand. If you would like further information about these articles or our services, you can reach us on: (+44) 01628 485847 or visit our website XPotential aligns individuals, functions and organisations, throughout the world, to create and deliver brand equity. Retail Therapy: Pop-up shops cont. Britney Spears has made the most of this by making fans wait on her official pages to find out the location of pop-ups selling her new album merchandise, including 36 signed t- shirts. Cadbury’s Nibbles took things a step further by creating an online pop-up shop with a limited edition designer scarf offer. The shop appeared for brief periods on selected fashion sites and blogs, teaming up with them to build the brand image whilst providing the sites with visitors, in the same way physical pop-ups can create micro-tourism for their locations. Beyond selling and creating awareness, pop- ups also provide a live platform for the “two- way conversations” brands aim for in social media, encouraging consumers to engage and ask questions, discuss their needs and take the brand further into their lives, and become promoters through “checking-in” with location based media. Many of these benefits could be provided by a brand store, but at a higher cost and commitment. So the benefits of pop-up retail are many, however the term does get over-used. Some argue that pop-up is no more innovative than the traditional market stall, but if it is done well then the excitement of pop-up comes from the break from regularity and thrill of catching a short term offer. The proposed Boxpark pop- up mall in East London (a world first, made of packing crates) could be a step too far. Brand Barometers: Product placement February saw the UK product placement ban lifted, providing new opportunities for brands to reach TV audiences. Adverts embedded in a show have no skip-threat, and research has shown viewers to prefer placement to spot ads (so long as it fits with the show). Getting the right fit will involve sharing of information which could be of mutual benefit to broadcasters and brands, e.g. information about audiences (potential consumers), 13% of whom say they are more likely to buy a product having seen it in a show. One example of a smooth brand-entertainment tie up is Wallace & Gromit with Wensleydale cheese, helping to authentically define Wallace’s character, whilst bringing positive attention to the brand. Product placement is often talked about negatively for damaging viewer trust and obscuring content quality (1 in 5 say they find it distracting), but when used tastefully and matched carefully, brands can add to the depth and realism of stories and characters. Until now, brands have been sneaking into programming through prop placement (by paying prop suppliers to use their products). However, in this set-up brands have far less control over exposure than the new product placement opportunities will offer. March 2011- 3 -