Welcome to Walmart. Where are we?

March 8th, 2010

As if some great God of marketing was saying to the Walmart happy face ” Wipe that grin off your chin ” the nations retail giant reported the first down quarter in recent history. Walmart is  finding itself squeezed in by  higher-end retailers, and deep discounters and they are losing share. Despite Walmarts huge ad campaign ” Save Money. Live Better. They have been focusing on higher margins. There are only three ways to do that– in simple terms raise prices, lower cost or both. Have you ever negotiated a deal in Bentonville?  I have. It is meant to be a humiliating experience for potential newcomers The kingdom Sam Walton built is hard to penetrate. Even when you’ve breached the castle gates,  you are thrown into a giant bullpen full of cheap folding chairs and tables with a thousand or so other Walmart wana-be’s  You are pitted against your fellow suppliers with little concern for your health as their supplier.  As a representative of several clients I can tell you that even after your first order supplying Walmart is a tough road to go down. Possibly this is just sour grapes.  It’s also possible that Walmart’s hammer handed methodology is passe. Most probably is to blame recent downturn has more to do with the wrong positioning. . The later is more likely . Costco, Family Dollar and Dollar Tree are up as much as 2% and Walmart has swung from a 2.8 % increase in 2008 to a -2.0% at the end of 2009, a 5% negative swing. While at the same time Target did the opposite swinging from -3.3% to +.05% and KMart dug out from a 5.8% loss to a 1.7% gain. I would take a quick study of this reeling giant and note that in tough times it is important to stick to your core values. Sure the competition is tough but that is no reason to change a strategy that is working.

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Skinput: Your body is a touch screen

March 4th, 2010

As the song says “Your body is a wonderland”. Soon you will be able to wonder all over the Internet, listen to music, make a call by touching parts of your body. I don’t want to go any further than that…use your imagination.  Researchers at Carnegie Mellon University and  Microsoft’s have coined the term “Skinput”. Skinput uses a bio-acoustic sensing and a pico-projector to turn your arm (or any other part of your body) into a display or as they term it ” input devise”  Imagine playing Tetris on your tummy, or dialing a friend on your deltoids.  I must say,  this may place us one step closer to becoming part of the machines we invented.  Well, if you can project anything from your iPhone or computer onto your skin the applications for advertising will soon follow. Will those shirtless college boys at football games be selling their bodies to beer companies?  Will this turn attractive women into billboards for Bikinis?  We’ve all seen that person who has a tiny  wireless phone headset walking around talking to thin air. First, I really don’t need to hear their conversation. Second, I  give such folks a wide berth, just in case. Now imagining how we will distinguish a person banging on their body to change tunes on their MP3, from a masochist. How will we tell the difference between someone playing Bloody Warfare II from a junkie in detox?  Yes, your body is a wonderland. I wonder what they will do to it next? As for me, If the  cost per exposure (no pun intended) is right. We might take a look at it.

To watch a video by the inventors :In http://bit.ly/diPCZi

To read more  http://bit.ly/aA0lDa

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Working With Client Schizophrenia

March 2nd, 2010

Agencies are being asked to lower media cost and achieve better results with smaller budgets. It makes sense to every CEO and CFO with slumping sales– a down market should be a media buyers market.  The media doesn’t seem to be getting that message. Networks may be reducing production cost with reality shows but have you priced an episode of Survivor lately? Ad infinitum, the standard unit of measurement for television has been CPM or cost per thousand exposures.  The  problem is that we accept the ratings systems without question and utilize them to prove a buy effective. Enter the Internet, social marketing trends and young people twiddling their thumbs across  keyboards of  PDA’s and Gameboys.   Fellow marketers, you are now in the land of the brave and are attempting to invade the home of the “I want it all for FREE”. Is Generation Y watching your commercials?  Y-no, say certain statistics. It seems a large percentage of You Tube Boobs click away from ads before, during and especially after your marketing offerings. Yet, clients demand that agencies tap this revenue stream with the same withering budget. Marc Goldstein, CEO of Group M at a recent 4A’s  conference called it client “schizophrenia”.  These are difficult times. We need to be as cost effective as possible. Since we are being put to the task should we not begin to question our old benchmarks and determine the validity of the new ones as well?

Marc Goldstein’s remarks can be viewed at :  http://bit.ly/

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Swallow this in :30 sec.

February 26th, 2010

Cadbury Australia and hundreds potential reality show contestants deserve kudos.  Together they developed a homespun recipe for a user-generated campaign that seems to have stimulated the appetite of chocolate lovers down under. Cadbury’s website, http://www.itsnopicnic.tv challenged webcams users to whip up a batch of commercials. The filmmaker must show someone consuming a nut filled, caramel dipped, chocolate covered Picnic bar in 30 seconds. It’s real people doing real things with large candy bars.  Are these people nuts? Not exactly.  True, the visual content is predictably banal but it is rescued by witty commentary from an voice over announcer that Cadburys added in post. Of course they filtered the audio to fit that “ hip real thing”  feel. I knew there had to be professional employed at some point.  Possibly we can all keep our jobs a bit longer. According to Adweek this UGC produced over 200 ads. Who has time to watch 200 ads?  Future film gurus and people who just want to see themselves on TV.  Is that a lot of candy bars?  Sure they say, “it’s a viral thing.” The late, great Andy Warhol said everyone has his or her “15 minutes of fame.” Andy my boy, the world is moving a little faster today. The Internet has cut it down to: 30 seconds. Frankly I hope the quality of the production improves. Although it is effective, I find this technique a bit hard to swallow.

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Site Less Social More

February 24th, 2010

In the midst of rebuilding our out-of-date site, I came across something social media strategist, Paul Gillin wrote, “Welcome to the site-less web.”  http://bit.ly/cLlLA8
After spending all day weaving researched key words into the usual puffery found on ad agency sites, I read this on his blog. “The big change in the landscape is that information no longer needs to have a homepage in order to reach an audience. Facebook kicked off this trend when it created a service that was so popular that some brands found it was more desirable to use Facebook as a homepage than their branded websites.” After a bout with denial, I came to realize he was right.  Mr. Gillin has placed  his finger on the pulse of the living communication. In fact,  I believe he is capable of open-heart surgery on the subject. Still, it can be a struggle to  convince some clients that any marketing effort should speak to the “digitally adept” in concert with the traditional one way communications thrown at couch potatoes. Actually these two media work quite well with one another. Or maybe we should wait to see how Pepsi does with their $10 million investment in the refresh campaign? No,let’s not. I think they know what they are doing. The truth is that web can be it’s own worst enemy. It presents clients with so many choices, such fragmentation of audience, such micro targeting, it is just begging for excuses not to go there. Social Media changed everything and some clients fear the change. The truth is, it not rocket science. It  is just another tool in the toolbox. One  thing we have learned about any business we represent is that their audience will not stand still for very long. Those targets move and today they are moving at the speed of their web connection.  So site less and be more social is the order of the day. Who knows what tomorrow may bring? Mr. Gillin also pointed out that blogs are becoming ”almost irrelevant”. With that thought, I’ll sign off and tweet this.

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Twitter up some ad revenue

February 22nd, 2010

According to techcrunch.com, Twitter COO, Dick Costolo is gazing into his crystal ball and predicting the future of one of the hottest players in the real time field. Twitter, valued at over $1 billion, has recently inked search deals with Microsoft and Google. In a recent San Francisco interview with techcrunch staffers, Costolo hinted that Twitter would soon turn on advertisements. In the past Twitter has said this would not be a part of their revenue model. But when you monetize any of the latest and greatest of Internet you can’t help but ask, “ who is going to pay for all this band width and all these people we  hired?”  Costolo made it very clear, “Twitter will have an advertising business, ready in the near future, and available to partners.“Costolo disclosed a bit about Twitter’s revenue model. Twitter projected 25 million users, $4 million in revenue, and 75 employees by the end of this year. The COO says they are way ahead of those meager projections. Mr. Costolo did confirm that Microsoft and Google are bringing Twitter dollars, though search. He declined to divulge the total. Geolocation API was also part of the projected honey pot. How that works remains to been seen…or located as the case may be. Twitter will know who you are and where your are! So do you really want to buy that double mocha…they are on sale right across the street!!!

With 25 million faithful Twitter deserves to be  making more than $4 million a year. I don’t know of a single traditional media source with 25 million addicted devotees that doesn’t.  Just a side note, 20 million viewers is equal to a good prime time network program. Of course,  Twitter ad costs should be a bit lower…for  now.  What’s in the future? Well, if  Twitter can pick up another 45 million or so then they could conceivably  charge $3 million for 30 seconds. Presto… Super Bowl type revenue!  Don’t hold your breath on my projection.

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February 1st, 2010

The mountain in Mohamed’s handheld

Possibly it’s because I come from the age of the cell phone dinosaurs. A time when cell phones had a cord attached to a huge box mounted under the seat of your car, but I am dumbfounded by the seemingly endless capabilities of today’s mobile devises. Not only can we Tweet our friends, get our email, surf the net or a million other things. We can find just about anything we want and bingo…Google maps out a yellow brick road to their door.  Push a button and It gives me all the critical data. Touch the phone number and it calls them. (Of course I always pull over to the side of the road when doing this. )  A few weeks ago I got lost between Louise TX and Ganado TX while looking for some friends ranch.  Yes, we still have ranches in Texas. The GPS in my Range Rover had the light on but nobody was home. Then again, why should I expect an English car to know where Louise TX  is? Even in this remote corner of Texas. My  iphone and Google maps app found me and guided me out of the badlands.  It seems everyone is bringing out and app. Most of them are designed to make your pocketbook lighter.  Here is one that puts cash in your wallet. I sent all my clients with multiple locations the following:

The 2009 ANA Conference featured a panel of national marketers including Chris Joris, SVP Consumer Marketing, MasterCard. In his presentation Mr. Joris stressed the benefits of reach in traditional media but highlighted importance of integrating strategies like social marketing and mobile media into your marketing strategy. Case in point; MasterCard recently developed an iphone application, ATM Hunter. ATM Hunter directs customers to the nearest ATM where they can use their MasterCard using the GPS technology built into the phone. According to Advertising Age, over 10,000 people a week are now downloading the application. So text and tweet away…someone is making real hay. Just another case of savvy marketers finding a way to bring the information mountain to Mohamed’s handheld.

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Who Makes Most Family decisions?

January 11th, 2010

A 2009 study conducted by Boston Consulting Group revealed that women control 73% of all households spending. That is $4.3 trillion of the $5.9 trillion in total U.S. consumer spending. This leaves little doubt that adult females have the most influence in all issues. Bob Garfield, writer and marketing analyst for Ad Age explained in a recent article, “CVS Pharmacy has experienced rapid market growth. They understand ”The woman who buys the Band-Aids and amoxicillin, is the one who chooses the pharmacist.” A recent white paper published in Advertising Age entitled “Real Women” reveals some interesting psychographics about today’s women including Generation X (ages 30 to 44) and Millennial (ages 18 to 29).  “There’s nothing more important to mom than taking care of her kids and nurturing her family” says Hy Nguyen, brand manager at Unilever foods. In the current economy, there is little doubt that the “throwaway society” mentality has lost its luster. Price is always a consideration but your females are looking to brands that provide lasting value propositions. Women want a brand they can trust. Building and maintaining your brand should be the central focus of any marketing strategy.

To read the entire white paper on real women click the link below

http://adage.com/images/random/1109/aa-newfemale-whitepaper.pdf

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Social Networking is big. But how big?

January 8th, 2010

Without a doubt, social networks like Twitter and Facebook have developed into an effective media. That media category is growing.  According to The Media Business Report marketers spent $800 million in 2009 on the development of social networks, word-of-mouth and conversational marketing programs. This is a 23% increase over 2008 spending. Further growth of 35% is expected for 2010 to more than $1 billion.  Paid advertising, used to drive traffic to social networks, spent $1.2 billion in 2009. This is expected to increase 7.1% to $1.3 billion in 2010 according to eMarketer, Digital Intelligence research.  It’s impressive when we read that large companies are dropping millions into on-line ad strategies. However, before you decide to throw 100% of your ad dollars into social networking, let’s put these numbers into perspective. The total ad spending in the US in 2009 was over $1 thousand billion dollars. Does your marketing budget need to follow this ratio?  Probably not. The relative importance of any media should be based on your marketing objectives.  To effectively build any brand, we believe you need a balanced approach to your media investment. Rhymes Marketing is constantly adding and updating the e-marketing services we offer. For help with your e-marketing plans call Jami Clevenger 713-871-8980 or jami@rhymes.com

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Television viewing up in a down economy

January 5th, 2010

Everyone knows internet use has increased but  a recent survey from The Media Audit* found that adults are spending more time at home watching television. Statistics reveal significant time shifts in consumer behavior. The percent of heavy TV viewers– those watching 5 or more hours per day, has increased by 7.1%. The percent of heavy Internet users increased by 9.2%.  Those who have made at least one online purchase in a year increased by 5.1%, while those who make more than twelve purchases in a year increased by 8.1%.  Internet marketing is extremely important but television is capturing more leisure time. That is a good reason not to overreact when dividing up your 2010 media budget.

*The Media Audit is a multimedia, qualitative audience survey that covers over 450 target items for each rated media’s audience.

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