Is It a Product?

If I were talking about ice-cream, you would probably have no problems answering my question. But I have something more controversial in mind and more specifically – TV. Is it a mass medium, a platform for promoting and selling goods and services, or is it a product itself? I guess there is no doubt it is the first two and even though we are not used to thinking of it as a product, it actually is. And interestingly enough, it is not only the middleman between advertisers and viewers but it is, in fact, trying to promote itself to both these groups.

What makes it attractive to the first market segment is its capability of reaching mass audiences at a relatively low cost (what I mean here is not that paying tens and thousands of dollars per ad is cheap, but that it is relatively cost-effective given the number of people that could potentially be exposed to the advertiser's message). Whether or not it is doing that efficiently and effectively has been under scrutiny these days, however, that is not the point of this post. To its second target market it is appealing for three main reasons – it is a source of information, it is entertaining, and it provides reinforcement.

As all other products on the market, TV has also had some difficulty “selling” itself recently. And the reason underlying this problem is not only the fact that there are hundreds and thousands of different channels competing for the attention of “just” 200 million people or so, but also the fact that there are so many other sources that provide the same benefits (if not more) to the same target market. And so, as all other products, TV (personified by its top management of marketing) has been trying to come up with creative ways to break through the clutter and attract people’s attention. If you have been following the marketing trends these days, you would probably not be surprised to hear that the solution they come up with is called viral marketing.

Ever heard of MTV or Laguna Beach? The answer is definitely “yes” to the first question and most probably “yes” again to the second, especially if you are between 10 and 55 years old and a U.S. citizen. How bout Virtual Laguna Beach? If you have not yet heard, this is the new virtual game that has been introduced days before the third season of the TV show with the same name began. It gives players the opportunity to experience first hand what life in the Laguna is life. All you have to do is create an avatar and enjoy yourself. And to make your experience even better you are invited to join with your frineds. Sounds like the epitome of viral marketing, doesn't it? One of the things that is interesting about VLB is that players would have the opportunity to watch the new episodes before they have actually aired on TV. They can compete to become queen and king of the Winter Formal, go shopping and partying, make friends, chat, and flirt. And since I mentioned going shopping, a thought came to my mind. How do people pay for their purchases? It turns out the creators of the game have thought of that - you can either win MT$ (the official Virtual Laguna currency) or… turn some real dollars into MT$ - as the website complaisantly announces, “all major ATM and credit cards are accepted.” Since I was really intrigued, I right away made myself an account and went shopping to see what other surprises I would encounter. To my surprise, I could not buy any branded sneakers (all were under the common category “sports shoes”) or any other piece of clothing, however, I got a pretty good idea of what is to be worn this season. As a matter of fact, I still believe that once the game gains popularity and marketers perceive it as a viable channel, we would start seeing product placements in it. For now its sole purpose is providing Laguna Beach fans with the opportunity to enjoy their favorite show 24/7.

And did I mention that it can only be accessed through Internet Explorer!?

To Be, or Not to Be – That Is the Question

It seems like British legislators are now facing this question. The reason – a debate over whether or not product placement should be allowed as part of programming after being banned for more than half a century, since the first ads occurred. The European commission is now reviewing the directive guarding cross-border broadcasting regulations and the Office of Communications in London, commonly known as Ofcom, is waiting for its decision before taking an official position.

The greatest obstacle to the introduction of product placement into broadcast programming is the “separation principle.” According to the European legislative framework this principle ensures that viewers are not misled about the nature of the content they are watching. And as the media watchdog, it is Ofcom’s duty to guarantee that distinct separation exists between programme and advertising content. And while viewers may see some controlled prop placement integrated into media programming, where it is considered to enhance the quality of the broadcast, product placement is implicitly prohibited because of its indisputably commercial nature.

Many people, however, correctly notice that people in the EU, in general, and the UK, in particular, have been exposed to product placement long ago because of the integration of US-produced programming into their media. If one just thinks for a moment of all the imported shows and films that are televised, they would understand that product placement has already crossed the ocean. So it seems the question legislators are facing is not whether or not product placement should be legalized but rather whether European program and film producers should be able to benefit from it. It appears that Ofcom is nodding approvingly “yes” to this question, however, it does not have the jurisdiction to officially do so without the prior approval from the European commission.

So European producers will have to wait to see whether legislators would finally “let them be.” As for now, their US counterparts are reaping all the benefits.

The Other Player in This Game for Two

Correct me if I am wrong, but there are these brands that just go in couples. For example, when you think cereal you think Kellogg’s and you also think Kraft. As it comes to toothpaste it is Crest and Aquafresh (or maybe Colgate, depending whether you want the best “cavity fighter”, or you aim to “get and keep” your teeth white, or you want someone to care for the overall health of both your teeth and gums). But it is not cereal or toothpaste I want to focus on but sodas. And as you think pop there are two names that come to mind momentarily – Pepsi and Coke (I long deliberated which one to put first but for the purposes of this post, let us assume they go in this order). Or it might be just me making these strange associations, probably because of the tons of SWOT (strengths, weaknesses, opportunities, threats) analysis we’ve been doing in school these days. Forgive me if that is the case.

Since in my last post I talked a lot about Pepsi quite successfully putting into action the innovations in the marketing field, I would know look at its archrival and see what they have been doing to keep their market-leader position. I am sad to admit this (as a Coke-for-life fan) but The Coca Cola Company has been falling a bit behind its competitor in following the marketing trends. Or at least it was like that before the new head of marketing, Mary Minnick, headed the company’s efforts to come back on track.

Minnick has been with the company since she earned her MBA degree in Duke University in 1983. In 1997 she was sent to Japan to run the company’s South Pacific group (including Australia, Indonesia, New Zealand, and all of the Pacific Islands) because her visions of the way the Coke brand had to develop were quite too innovative and non-soda-centric to be well accepted by her diehard traditionalist colleagues in the U.S. There, “introducing as many as 100 new products a year, some with a life expectancy of just a few months” (Queen Of Pop; Meet Mary Minnick. She’s blunt. She’s impatient. And she’s putting the fizz back in tired Coke.) , despite the economic crisis that struck the entire region shortly after she took over, Minnick managed to position Coke’s products as market leaders in almost all key categories of the nonalcoholic-beverages market. There she hardened her belief that that it is “innovate (in order to meet consumers needs and to stay on top of the market trends) or die” and that the future market winners “will be the beverage companies that develop breakthrough products that, more often than not, cross over traditional beverage categories.” (Queen Of Pop; Meet Mary Minnick. She’s blunt. She’s impatient. And she’s putting the fizz back in tired Coke.) The ultimate goal is to anticipate future customer wants and needs and to produce products to satisfy them ahead of time.

When, after her doubtful indisputable success in Asia, Minnick was offered to become a head marketing in the headquarters of the Coca Cola Company. Since she moved back to the U.S. a lot of changes have taken place. The soft-drink manufacturer is moving away from its soda-centric strategy that was only reactive to the changes in the industry to a more proactive attitude. A lot of catch-up products were developed, including Tab Energy – the response to the call for energy drinks such as Red Bull in the market; the Godiva series under the license of the luxury chocolate manufacturer, to try and steal market share from Pepsi’s Frappuccino in a joint venture with Starbucks; Coke Zero – the male diet coke; and Gold Peak – a new bottled tea, are just to name a few.


Another major change was that the company changed its lead agency, Berlin Cameron & Partners, for Weiden & Kennedy, the creators of Nike’s brilliant “Just Do It campaign”. And the results are now obvious. After several years of mediocre, forgettable ads, the company has introduced the “Coke Side of Life” campaign earlier these year which reminded us of the times when Coke’s ads were synonymous of great ads. The campaign aims to rejuvenate Coke’s image and to make it the first, last, and only soda in consumers’ eyes and not just another beverage alternative. There are various variations on the theme including The Coca Cola - Dream Factory, The Coke Side of Life GTA Style, and World of Warcraft Coke Ad. It seems old-new formula to integrate the advertising message into some kind of advertainment is working well for now. The company also operates The World Coca Cola – a three-storey exhibition of Coke’s history from the creation of the brand to the present. In its gift shop the visitor can find Coke’s limited red Sega Game Gear, designed specifically for the Coca Cola Kid cartridge. This year the soda manufacturer has also entered into a contract with Smartphones Technologies to deliver make its branded content downloadable to cell phones. Coke’s fans will now have the opportunity to have the world-famous polar bears as a background on their phones or have it ring with one of Coke’s famous jingles.


As you can see the ever-lasting war is not over. On the contrary, we can say that it is entering into a new stage, where advertising and entertainment walk hand in hand for the ultimate satisfaction of the customers.

Pepsi – I’m Playing It!

It seems that Pepsi’s marketing agents discovered long ago that there is no better form of advertising than word-of-mouth. Probably that is why the soda giant has been applying very successfully various viral marketing techniques, ranging from advergames, to interactive sites, to co-ops with other brands, for the last six years or so.

In 2005 Pepsi launched Jet Ski game as part of the Pepsi Max Ultra Park. This game gave the players the opportunity to experience a fast and furious and yet funny ride on a wakeboard. Monkey Taxi, another advergame that had Pepsi’s logo associated with it, was introduced to support the controversial TV ad campaign that featured a chimp. This game challenged the player to guide around the city Arthur, the fastest taxi driver in town who is also a monkey, picking passengers while trying to avoid the police. Some other games include Pepsi Sumo Twong, Pepsi Handball, and Pepsi Finger Footy. And if you are wondering what is it about them that makes them so successful the answer is simple – they have the Pepsi logo but it is not intrusive, they are entertaining, and you can quit whenever you feel like doing so. And one more thing – they are current.

This summer soccer was the biggy all around the world. Predicting that Pepsi launched mydadada.com – a site that fully integrates digital and marketing activity, letting consumers identify with Pepsi’s football credentials. What made this campaign so successful is that “it was stuffed with things to do” according to Patrick Baglee, Executive Creative Director at EHS Brann. Pepsi also launched its “What’s in my locker” campaign which not only gave visitors to the website the opportunity to look behind the curtains of the World Cup’s locker rooms but also opened up the opportunity for direct one-to-one communication between the brand and the consumer.

Now that the football rush is over, Pepsi’s new campaign is on the way. For many years the company has been a sponsor of the MTV Video Music Awards (VMAs) and this year, for the second time, it is hosting an online karaoke contest whose winner will get the chance to attend the award ceremony, walk the red carpet, and host his/her own show on MTV Overdrive. What more can Pepsi fans want but a can of their favorite soda to make the experience complete.

Advergaming – A New Solution to an Old Problem

Marketers have always aimed at increasing brand awareness and brand loyalty among consumers. However, the traditional mass media ads have long ago proven to be unsuccessful in achieving that so advertisers are now searching for a creative way to communicate brand messages in an entertaining and engaging manner. In their article Can Advergaming Be the Future of Interactive Advertising?, Jane Chen and Matthew Ringel discuss the relatively new trend of advergaming and its potentials for solving the marketers’ problems.
According to the authors, advergaming can be defined as the “the use of interactive gaming technology to deliver embedded advertising messages to consumers.” This is a new approach to interactive marketing that can provide an effective solution to the problem of efficiently reaching consumers. It can also be a source of valuable information through the processes of registration and playing.

Chen and Ringel distinguish four types of advergaming depending on the levels of brand immersion and data captivity and provide examples for each of the four possibilities. In Quadrant I with high brand immersion and low data captivity they place General Mills Cinnamon Toast Crunch’s Advertory and Jack Daniels’s Real Pool. In Quadrant II, where both indicators are low, are Nabisco’s Candystand.com and Fruit Roll-ups’ Scouts in Space. In Quadrant III with low brand immersion and high data captivity is Paramount’s Lucky Numbers. And finally an example of a game in Quadrant IV, with high brand immersion and data captivity, is Nike’s Shox Dunk Game.

Advergames can also be classified according to the degree the brand message has been incorporated into the game. Using this classification there are three types of advergames – associative, illustrative, and demonstrative. In the first type the product is associated to the particular lifestyle or activity featured in the game. In this case, advertisers should make sure that the brand and the lifestyle/activity it is associated with are compatible and reinforce each other. The real pool by Jack Daniels falls into that category. In illustrative games the product is integrated in the game (i.e. what you are doing to play the game directly involves the product), increasing the possibility of remembering the brand. Toast of the Town is an example of an illustrative game. And finally, demonstrative games “allow the consumer to experience the product in the virtual confines of the gaming space.” (Chen, J; Ringel, M., Can Advergaming Be the Future of Interactive Advertising?, 2001, p.4) According to the authors, Nike’s Shox Dunk falls in this category, effectively communicating the brand message by presenting the product in its natural environment and allowing the player to interact with it. Nike even had a Nike Shoxploitation video to go with the game.

It is expected that advergaming will become widely use by marketers whose products allow the incorporation of the brand into a game. However, a good brand-game match is vital to the success of the campaign.

A Fine Red Line

Have you ever asked yourslef what is the difference between marketing, advertising, and public relations (PR)? I have to admit that as a marketer-to-be I have spent numerous hours reading various textbooks and articles, trying to explain to myslef what the differences were. And then I have spent many more hours in futile efforts to convince my friends that it is not "all the same" whether they use one term or the other, because they actually refer to quite distinct things. In my last post I discussed the new trends in today's marketing industry but in order to be able to better comprehend what is going on behind the scenes we should get a better understanding of who-is-responsible-for-what. So let us draw a fine red line.

Marketing is the systematic planning, implementation, and control of a mix of business activities in order to ensure that mutually benefitial exchanges of products and services could occur between buyers and sellers.

Asvertising is the paid, public, nn-personal deliveryof a persuasive messageby an identified sponsor to its existing or potential customers with the goal of selling the sponsor's goods or services.

Public Relations (PR) is probably the hardest of the three to define. But the definition I think best captures the nature of PR is the one adopted by the Public Relations Society of Amrica (PRSA) that states that "Public relations helps an organization and its publics adapt mutually to each other."

As it can be seen from the forementioned definitions, marketing is an "umbrella" for advertising and PR (two "business activities" that help the company sell itself to its customers). However, important differences exist between the two. In her article 10 Differences Between Advertising and Public Relations, Apryl Duncan outlines most of them. First and foremost, as she points out, advertising professionals pay for their ad space while PR is often referred to as "free publicity" because typically PR practitioners do not pay the mass media to publish their press releases or vido news releases (VNRs). This takes us to the second difference between the two. Because advertisers pay for their space, they have ultimate creative control over what gets published, while in the case of PR the medium has the final say on what makes it through to the audience and what - not. Another distinction is the shelf-life of the promotional effort. While one ad can be repeatedly used over a period of time (or, at least, until the advertisers realize that the consumers are already tired of seeing the same thing over and over again) a press release can only be published once. There is also a difference between the way people view advertising messages (ads) and PR messages (press releases, press confreneces, etc.)Generally, people accept PR as more objective because it often involves a third party endorcement and because they do not feel like someone is overtly trying to sell them some product (or service).

Probably to best summarize what we have said so far we can say that " advertising's function is to sell goods and services the PR function is to create an environment in which the organization can thrive." (Wilcox, D.; Cameron, G., Public Relations: Strategies and Tactics, 2006, p.17)

Hard-to-reach consumers = Highly creative marketers

As a future marketer I am always in search of the answer to the question “What makes a good ad?” Why is it that an ad that has a brilliant copy and according to all researches should be highly appealing to the target audience remains almost unnoticed? What is it that is missing?
It turns out that there are two concepts that are vital to finding the answer to these questions and probable many more; two words – relevance and permission – give marketers the key to successfully reaching consumers.

In today’s harried world people do not have the spare time to spend on watching and listening to information that is not relevant to them, their wants and needs. When watching TV, listening to the radio, going to the movies it is not advertising that people are seeking but entertainment, escape from the harsh realities of their own lives. And when advertisers, always trying to sell them the next unnecessary gadget, insensitively invade this private world of escapism the only thing they are getting is annoyance. Probably that is why when time comes for commercial break the remote control is the best friend of the humans. This is also the reason for the boom of such devices as iPods and TiVos, which help people enjoy their favorite leisure activities without being interrupted. That and the growing technological literacy of the population, also contributed to the growing importance of the Internet as a source of both information and entertainment.

According to some professionals (one of whom is Seth Godin), when people go to the Web and search for something they give marketers the permission to send them their relevant messages. We can talk of relevance because ads appear according to the key words the person used for his/her search (for example if I typed in coffee and a together with my search results a Starbucks ad appeared on the side, it is going to be relevant to what I am looking for at the moment). We can also speak permission because it is the surfers who decide whether to click on an ad or not, by clicking on the ad they allow the advertiser to send them the brand’s message. The results of the permission/relevance era in the marketing sphere are the decreased ability of traditional (non-permission, non-relevance) mass media to reach consumers, the increasing potentials and importance of the Internet, and the great challenge for advertisers – to reach consumers when and where they want them to with the bit of relevant information that is going to solve their problems.

And marketers got creative!

Branded entertainment, sponsored content, product placement, and advertainment came to the scene. So what is what any reasonable person might ask, staring in bewilderment in these words?

Branded entertainment also known as branded programming is the integration of a brand into a television programs or motion pictures. However, recently marketers have reinterpreted this concept by aligning not the brand to the content but developing content that is going to fit the brand. A good example of this is the Bud.TV - an online entertainment network that Anheuser-Busch, the manufacturer of Budweiser beer, will launch the day after Super Bowl.

Sponsored content encompasses a large number of promotional activities, ranging from the weather forecast (or any other show) that ends with the words “this program is sponsored by…” to Larry King’s show, hosting a spokesperson for some brand. The latter, however, might be deceitful because programmers sometimes “forget” to mention that the person is actually paid for to appear in the show.

Product placement as defined in video and PC games. However, advertisers should be very careful in this case because the ad is only going to be successful if the product relates in some way to the game and it enhances its real feel. Otherwise, if at all noticed, it would be disregarded as just unnecessary and undesired noise.

Avdertainment as you have probably already noticed has two key components to it – advertising and entertainment. This is an interactive form of entertaining online advertisement. This can involve a product demonstration or a branded game or some other engaging presentation which identifies the sponsor and involves the viewer (www.revolution.ca/knowledge/glossary.cfm?t=205). A cool example of advertainment is Burger King’s “Subservient Chicken” that attracted tens of thousands of people to its site.