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Marketing Maestros

Branding Insights from College Road Trips

By Bill Duggan, Group EVP, ANA
Posted: Feb 24, 2014 10:00am ET

I’ve been on a number of college visits recently, as I have triplet daughters who are now juniors in high school.  These visits have provided some insights relevant to brand marketers.

First off, after visiting a few schools, everything starts to bleed together. All the schools have a low student/teacher ratio. They all take security seriously and have a “blue light” system. They all claim diversity – and all have literature, of course, with that diverse group of students on a grassy quad under a tree. Blah, blah, blah. Few stand out.

One school that did stand out was NYU. From the very beginning of the admissions presentation, NYU presented itself as, “The Global Network University.” NYU has campuses in Shanghai and Abu Dhabi – where students can attend for all four years. Alternatively, students who enroll in the New York City campus have the opportunity to spend a year or semester abroad.  Yes, lots of schools have semester abroad programs.  But NYU did a great job in differentiating itself in a cluttered and competitive category.  Marketers please take note – especially those in financial services and automotive.

Another insight has to do with the importance of employees as brand ambassadors.  Whether it’s the call center operator, the store clerk, or the hotel chamber maid, employees are often the face of the brand to consumers. During the college tours, the brand ambassadors were (a) the admissions office rep giving the hour information session presentation in an auditorium and (b) the student leading the campus tour.  More than almost any other factor, my kids formed opinions of schools based on these interactions.  We still joke about the student tour leader who began by saying, “I have class in an hour, so we need to be done by then.” That made us all feel unimportant to the student and that school. Marketers (and colleges) need to understand that every touch point is a branding opportunity … or missed opportunity.

Interestingly, some schools are realizing the importance of branding.  Northwestern University recently named Mary Baglivo vice president for global marketing and chief marketing officer. Previously, Mary was Chairman and CEO, Americas, for Saatchi & Saatchi Worldwide.

I look forward to additional branding insights this coming week, this time from practitioners, at the ANA Brand Masters Conference.

Advertising’s Transparency Crisis

By Bill Duggan, Group EVP, ANA
Posted: Feb 21, 2014 10:00am ET

Marketers, agencies, and media sellers need a trusted environment to build successful and enduring partnerships. But lately there have been increasing concerns about the issue of media and media agency transparency—i.e., sellers and agencies providing honesty and clarity to marketers on costs, placements, and data.

What began as a whisper a few years ago has increased dramatically in intensity.  It’s not an overstatement to say that ANA has heard more concerns about media transparency in the past year than at any other point in memory. The industry is facing a transparency crisis.

There are various issues that have contributed to this transparency crisis, including:

This transparency crisis is global. The World Federation of Advertisers (WFA) recently asked its members to rate a number of “priorities” of interest to marketing procurement professionals. From a list of twenty options, “cost transparency: understanding kickbacks, pass throughs, and rebates” ranked second (surpassed only by agency compensation).

Our business has historically been built on trust and relationships. But this transparency crisis is causing trust to break down and ultimately that will affect the relationships marketers have with their agencies and the media.

Marketers need to be inquisitive and ask questions. “Fool me once, shame on you. Fool me twice, shame on me.”

Thanks to The Economist Group for first publishing this perspective in their Lean back marketing blog.

For Commercial Ratings – Specific is Better than Average

By Bill Duggan, Group EVP, ANA
Posted: Feb 13, 2014 10:30am ET

Both Kantar Media and Rentrak conducted analyses that provide individual ratings of the Super Bowl commercials. Kantar Media’s commercial tuning index (CTI) compares each commercial rating to the game average to produce an index indicating its relative value. Rentrak's Ad Retention Index looks at the second-by-second viewing average for commercials compared to the entire program.

According to both Kantar Media and Rentrak, the most-watched ads each had a 104 index compared to the average ratings of the entire game.  The least watched ads had an index of 91, according to Rentrak and “less than 95” per Kantar.  For the Super Bowl, the commercial rating depends a great part on where in the program it airs. The gap between a 91 and 104 index is indeed big and shows the value of specific commercial ratings versus average commercial ratings.

ANA continues to advocate for increased granularity of commercial ratings, and notably for brand-specific commercial ratings. We’ve conducted surveys (82 percent of members expressed interest – a landslide!), written white papers, and convened industry meetings. Last year, both Kantar Media and Rentrak participated in the ANA Commercial Ratings Summit to discuss solutions that could help facilitate the availability of brand-specific commercial ratings for television.  An output of the summit was the paper, “Brand-Specific Commercial Ratings: Benefits and Solution Providers."

Thanks to Kantar Media and Rentrak for continuing the conversation and showcasing the value of brand-specific commercial ratings.

And thanks to Radio & Television Business Report for initially publishing this blog.

Technologies from CES to Improve TV Audience Measurement

By Bill Duggan, Group EVP, ANA
Posted: Feb 5, 2014 11:00am ET

After this perspective was initially published in Radio & Television Business Report, a senior industry media executive (in fact, a division president), sent me an email that said, “ …while some of that stuff your reference is scary it is all going to happen. if it can be done, it will be done...good stuff.”  Please read on …

I attended CES recently with 150,000+ others including an estimated 10,000 marketing and advertising execs. There were a number of technologies on display at the show that could have applications to improve TV audience measurement.

ANA has been advocating the idea of “brand-specific commercial ratings” for some time now. That is, the ability to measure the ratings of specific commercials. The current industry standard provides ratings for the average of all the commercials within a program. Why settle for “averages” when you can have “specifics?”

Commercial ratings would provide more granular data to better inform the decision-making process.

ANA encourages the TV audience measurement companies to investigate the technologies from CES in order to improve TV audience measurement.

ANA Connection at Super Bowl Gospel Celebration

By Bill Duggan, Group EVP, ANA
Posted: Feb 3, 2014 12:00pm ET
Francisca Brown giving opening welcome.

ANA members American Family Insurance and St. Jude Children’s Research Hospital were both front and center at the recent Super Bowl Gospel Celebration.

American Family Insurance was a supporter of the event for the fourth consecutive year. Francisca Brown, multicultural marketing manager and an active member of the ANA Multicultural Marketing & Diversity Committee, gave the opening welcome.

Seattle Seahawks quarterback Russell Wilson is a spokesperson for American Family.  Myles Romero, advertising director at American Family, was quoted as saying that Wilson, “… really personifies what American Family stands for, in terms of the pursuit and achievement of dreams.” An ad with Russell Wilson, part of American Family’s long-running American Dreams campaign, ran in local markets on Super Bowl Sunday.  At the Super Bowl Gospel Celebration Mr. Romero had the honor of introducing the NFL Players Choir.

Myles Romero introducing the NFL Players Choir.

Super Bowl Gospel Celebration also served as a fundraiser with a portion of the proceeds benefiting national and local charities. St. Jude Children’s Research Hospital was the primary charitable beneficiary this year. ANA helped connect St. Jude and the Super Bowl Gospel Celebration at the 2012 ANA Multicultural Marketing & Diversity Conference.

Congrats to ANA members American Family Insurance and St. Jude.

 

 

 

Farewell to 4A's TV Production Cost Survey

By Bill Duggan, Group EVP, ANA
Posted: Jan 29, 2014 10:00am ET

In a sign of the times, the 4A's just recently announced that they will no longer publish their "Television Production Cost Survey." The survey originated in 1987 and the last published report represented the twenty-fifth year of this continuing project.

For those twenty-five years, the report provided the industry with a method of benchmarking the industry average cost of producing television commercials, providing data including:  

    Average Cost
:30 Commercial
  2011 $354,000
  2010 $324,000
  2009 $323,000
  2008 $342,000
  2007 $361,000
  2006 $335,000
  2005 $381,000
  2004 $385,000
  2003 $372,000
  2002 $358,000
  2001 $358,000

According to the last published report – the 2011 Television Production Cost Survey – the average cost of a 30-second commercial was $354,000.

But today's super-fragmented, content-demanding media environment has made the report obsolete. Who shoots just a 30-second commercial (alone) anymore? And what is a "commercial" anyway?

Content is king and marketers are producing all sorts of video content. For web sites, for online video, for digital place-based advertising, and, of course, television. The traditional 30-second commercial was largely a one-time event for most marketers. But today, many marketers are producing episodic videos, that is, a series, and distributing them on various platforms – paid, owned, and earned. And marketers and their agency partners have gotten smarter over the years and learned to produce video content more efficiently. It's interesting that the average cost of a 30-second commercial in 2011 was actually lower than it was in 2001! See the adjacent chart, from the 4A's reports over the years.

So farewell to the 4A's Television Production Cost Survey. But it's a new era.


Thanks to Radio & Television Business Report for first publishing this blog.

What I Learned in London at the WFA Sourcing Forum

By Bill Duggan, Group EVP, ANA
Posted: Jan 27, 2014 12:00pm ET

I just attended the WFA Sourcing Forum in London with about forty sourcing professionals and learned so much!  Some highlights:

Decoupling Music
Production decoupling has been around for some time now. In this meeting, for the first time, I heard about decoupling the music used in advertising. Most clients cannot answer the question, “How much do you spend per year on the music in your advertising?” And while that’s a bit scary, it also represents an opportunity. According to the consultant who presented at this meeting, big clients can spend tens of millions of pounds (and dollars) per year on music in advertising. Having a consolidated global approach to music can lead to significant cost savings in addition to better quality and greater access to talent. While many companies decouple production, few decouple music. And that is likely to change.

Global Agency Remuneration Trends
The WFA debuted results of their new survey on global agency remuneration trends. Some key insights:

Other Takeaways

At this meeting I had the opportunity to present ANA’s recent work on in-house agencies.

The WFA Sourcing Forum next meets 24 April in Zurich, hosted by Johnson & Johnson.

Attend Super Bowl Gospel Celebration – January 31 in NYC

By Bill Duggan, Group EVP, ANA
Posted: Jan 24, 2014 10:00am ET

The Super Bowl Gospel Celebration (www.superbowlgospel.com) is an event sanctioned by the NFL and will take place Friday, January 31, 2014 at Madison Square Garden in New York. St. Jude Hospital (an ANA member) is the well-deserving beneficiary.

Now in its fifteenth year, the Super Bowl Gospel Celebration is an inspirational music event that traditionally features performances by Grammy Award-winning, multi-platinum selling gospel and contemporary Christian and mainstream artists, marquee NFL players, and the NFL Players Choir.

The event also serves as a fundraiser with a portion of the proceeds benefiting national and local charities. This year the primary charitable beneficiary will be St. Jude Children’s Research Hospital (www.stjude.org). St. Jude is internationally recognized for its pioneering research and treatment of children with cancer and other catastrophic diseases. Ranked one of the best pediatric cancer hospitals in the country, St. Jude is the first and only National Cancer Institute-designated Comprehensive Cancer Center devoted solely to children.

ANA happily feels some responsibility for connecting St. Jude and the Super Bowl Gospel Celebration as the introduction between the two was made at the 2012 ANA Multicultural Marketing & Diversity Conference.

Performers will include: Patti LaBelle, Tamela Mann, Natalie Grant, Mary Mary, Donnie McLurkin, and the NFL Players Choir.

Tix at www.superbowlgospel.com.

CES Highlights

By Bill Duggan, Group EVP, ANA
Posted: Jan 13, 2014 11:00am ET

I attended CES last week and it was their largest show in history. More than 3,200 exhibitors. Attendance of 150,000+, including an estimated 10,000 marketing and advertising execs. Some highlights and points of interest follow.

4K Television
All the major manufacturers displayed 4K televisions – 4K has four times the resolution of current HD TVs. 4K is in its early days as there are business economics and technical delivery issues that need to be solved and a big hurdle will be producing content in a cost effective way. Advertisers need to take notice as 4K could also change the way ads are produced.

Curved TVs and Phones
Curved TVs were popular, promising a “more immersive” and “more cinematic” viewing experience. LG and Samsung even have curved phones. Whether such products have real benefit or are hype remains to be seen.

Wearable Technology
Many of the products with wearable technology have a focus on health and fitness. Others merge fashion with consumer electronics. Some of the more interesting examples:

There were also smart watches, like Samsung’s Galaxy Gear, and wearable cameras.

Connected Homes & Connected Cars
Connected home technology is becoming more common in the household as consumers look for ways to better control and streamline their lives. There was the Cisco Connected Home, the Samsung Smart Home as well as many others. Importantly, the mobile phone has become the remote control for the connected home.

There were many automotive companies at CES with their connected cars that have smart phone technology integrated into them. At the Ford booth a speaker stated, “Technology will differentiate Ford from the competition.”

CES is all about the connected life and is an experience that every marketer should have.

The Connected Home at CES

By Bill Duggan, Group EVP, ANA
Posted: Jan 10, 2014 2:00pm ET

There was lots of buzz at CES about “the connected home” and I was fortunate to moderate a panel at the Scripps Pavilion on the topic. 

What do we mean by connected home? One definition is: individual, smart devices that are useful products on their own merits that can talk with one another for specific uses and are able to be connected with even when the consumer is away from the home.

Connected home technology is becoming more common in the household as consumers look for ways to better control and streamline their lives. Examples of such technology abound in home security and energy automation: smart deadbolt locks, smartphone-controlled LED bulbs, thermostat controls, and video monitoring services for the home.

According to research from Scripps and others, consumers are looking for various benefits in their connected home products: comfort, safety, efficiency, simplicity, and design quality.

Importantly, the mobile phone is the device that controls the connected home. The mobile phone has become the remote control for the connected home.

In walking the floor at CES the connected home was everywhere: LG’s Connected Home, Samsung’s Smart Home, and Cisco’s The Connected Life at Home. I left Las Vegas with a head full of ideas to upgrade and better “connect” my own home!


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About This Blog

To complement our two leadership blogs and build dialogue on the seismic changes happening in marketing, we launched Marketing Maestros. Our in-house citizen journalists will talk about everything from marketing technology to accountability and everything in between. This blog is written for marketers by ANA's marketers whose insights are drawn from the voices of the client side marketing community.