Addressable Advertising

TV ads have always lagged behind their technologically advanced cousins...interactive web ads. Not any more.

<- Pic via WSJ Online

According to WSJ Online, "As Comcast gets close to a deal for control of General Electric's NBC Universal, the big cable operator and Madison Avenue think the merger could lead to some major changes in the $65 billion U.S. television advertising market.

The potential new company could speed the development of interactive TV ads and "addressable advertising."

Interactive ads let viewers vote in a poll or use their remote controls to request more information about a product or apply for a coupon. Addressable, or targeted, advertising uses set-top boxes to route commercials to specific households or neighborhoods based on data about income, ethnicity, gender or other characteristics. It lets an advertiser send a sports-car commercial to a childless home and a minivan spot to a home with children."

This summer, Procter & Gamble Co. teamed up with TiVo for Charmin Toilet Paper. As shown in the pic above, the animated ad has an option in the top-right corner with which viewers can interact. If interested, one can apply for a Charmin coupon using their TiVo remote control. For this kind of one-on-one interaction, Madison Ave is ready to spend the big bucks. Of course, the program remains paused and no part of it is lost during the exchange. The coupon is sent by mail but according to WSJ Online, TiVo has declined to provide results for the ads since the campaign is still on.

While this degree of involvement is every advertiser's dream, the actual process behind interactive ads is far from easy. The ads have to be customized for different TV companies which almost always use different technologies. But what seems tough today can be made simple tomorrow. Soon interactive ads may become the norm rather than the aberration that they are today!

Advertising Budget in a Slow Economy

Click on image to enlarge

As the cartoon by Tom Fishburne suggests, this is exactly what some premium brands are doing or thinking of doing. My advice: DONT! In times of economic downturn, the last thing you want to do is lose your premium advantage. Instead,

1. Focus on your core brand value and maintain it.

2. Try and avoid advertising budget cuts as much as possible. When the economy revives as we all know it will, you think it will do your brand any good if you had zero consumer contact during the slowdown.? Naah! I didn't think so.

3. No need to get all sappy. Just maintain brand loyalty through presence in multi-media. Nobody likes to be patronized, right?

4. This maybe a good time to go digital. Saves you money, expands your reach. According to Advertising Age, Procter & Gamble slashed U.S. ad buys 18% in the first quarter but more than doubled digital spending. "Our media strategy is pretty simple: Follow the consumer," said Marc Pritchard, global marketing officer. "And the consumer is becoming more and more engaged in the digital world."

5. Brush-up on SEO (Search Engine Optimization) and SMO (Social Media Optimization). These are the advertising tools which will rule the coming years.

6. While buying media, this is the time to take advantage of the low cost of entry and increase your share of voice across categories.

The points mentioned above are not new to many as is evident from the fact that brands like P&G did not slash their advertising budget even during the Great Depression. According to TNS Media Intelligence (via Media Post), U.S. media spending declined 14.2% in Q1, mainly because of automobile brands. But companies like GE, Sprint, Johnson & Johnson and Verizon increased their media spend during the same period! Apart from financial gain, these companies will be perceived as stable and consistent, both desirable qualities for any brand. Don't you think?