In the UK Heineken has decided to shift its £6.5m advertising budget away from TV and rather invest in sports sponsorships and point-of-sale promotions. Rob Marijnen, managing director of Heineken UK explains on Times Online:“The enormously cluttered environment in TV ads makes it difficult to make standout ads. It’s also very expensive and it’s questionable as to its effectiveness.”
Media fragmentation makes it difficult to target Heineken’s core market (18 to 26 years old) through TV ads and buying airtime is getting more and more expensive. These are basically the reasons that convinced the Dutch brand to look for new solutions in advertising. Who will follow?
Here is an interesting story from the International Herald Tribune. Stern, one of Germany’s most popular weekly magazine wanted to promote its Aug. 25th issue with a 12-second Tv spot on the leading German channels, but they didn’t manage to buy the space, because the Tv stations refused to air a spot which was actually againt television. The Stern issue featured the headline “Turn It Off: Why Television Has Gotten So Boring”. Even if the ad was rejected, Stern received quite a lot of PR boost so, in the end, maybe they just spared a lot of money…
The Wall Street Journal writes about the disappointing summer movie season and its tight relationship with network-television advertising which appears to be no longer able to deliver results in promoting new films. It would be too simplistic to blame TV ads for movies’ failures. The problem is not (only) with the medium, but also with the target audience: Hollywood is eventually discovering consumers are changing, they spend more time online and/or playing videogames, they don’t watch much TV and they don’t like the idea each movie is always promoted like a huge marketing event. Studios should rather rely on Internet marketing, which can be especially effective in reaching a pre-existing audience. For example, the WSJ points out the online campaign for Batman Begins was successful also because it unveiled the movie trailer online about a year in advance, using a variety of corporate and fan sites. [Advertisement] Subscribe to The Wall Street Journal Europe and save 50% off the cover price.
The Guardian (free reg.) quotes a report by media-buying agency Starcom which claims Tv advertising still drives advertising awareness among viewers. Apparently, the main problem with TV spot is that often non relevant ads are shown. So the discussion is not about interruption but rather about relevance of the commercial content. So if we move our focus to content, Starcom found out some brands will have a better TV future than others. Telecoms and entertainment companies are able to build more awareness among viewers than grocery brands and cleaning products. A detailed graph of ad awareness by industry category is available here. If you’re interested in the future of TV advertising, you might enjoy reading Life After the 30-Second Spot: Energize Your Brand with Bold Alternatives to Traditional Advertising by Joseph Jaffe.
ZenithOptimedia cut its growth forecast for 2005 global advertising spending to 4.7 percent from 5.4 percent. The main reason behind this change is connected to the declining interest in US network television. Reuters reports total 2005 ad spending is now seen at $403.9 billion, with an increase of Internet advertising which is expected to “subtract” $3.6 billion from traditional media.
Consumers today are exposed from 3,500 to 5,000 marketing messages a day. On the street, on Tv, in the newspapers, online. Ads are everywhere but most of the people simply don’t notice them or worst, notice but don’t register them. Usa Today has a good article to introduce the Cannes Advertising Festival and discuss the challenges the advertising industry is now facing. The recurrent idea is “think outside of the box”, which means, look beyond TV advertising which is no longer going to play a pivotal role in promotional campaigns.
The Omma West is currently taking place in San Francisco. Among the presentations Mediapost reports about, the one by Bob Garfield (editor-at-large at Advertising Age) sounds particularly interesting. Mr Garfield talked about the “exodus” from Tv to online advertising, adding that, for now, no one in the industry is ready for the collapse of the old marketing model. In fifteen years the scenario will be completely different, modified by audience fragmentation and technologies for ad-skipping. If you want to have an idea of the future “Chaos Scenario” according to Mr Garfield, don’t miss this article.
Is the standard 30″ commercial becoming obsolete? Newsweek has an interesting article on the future of Tv advertising. More and more brands think it is becoming too expensive and, most of all, the results are difficult not only to measure but also to reach. Once again, the point made in the article, is that advertisers (and advertising agencies) need to adapt to the advance of technology and also to the changes in consumers media consumption. Tv advertising not dead, and is not going to die in the next future, but it needs to evolve and find new formats to resist to the competition of emerging technologies (TiVo and dvd recorders, for examples) and of different advertising channels (Internet…).
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