Nissan is setting its sights on the Hispanic market with a soccer-themed reality show, "El Reto Nissan 2," a five-part series centering on a match between Argentina and Mexico. The series premiered on Fox Sports en Espanol on April 29 and will continue airing every Sunday until the final match on Saturday, June 23. The game will be played at Robertson Stadium in Houston. The games are telecast in Spanish on Fox Sports en Espanol and in English by Fox Soccer Channel on June 23. The five, unscripted episodes feature players such as Alberto Garcia Aspe, Luis "Zague" Alves, Sergio Goicochea and Alejandro Mancuso, who were part of the national Mexican and Argentinean teams in 1993. As part of the reality element, they will be tracked down, "ambushed" and persuaded to join their former colleagues. They will then participate in training sessions and practices to prepare them for the rematch. The reality series, leading up to the game, works up a story of the rivalry between the two countries via archival footage of games and interviews with players and fans. Nissan will incorporate product integration in the program by showcasing its Pathfinder, Titan and Altima vehicles throughout. The effort includes retofinalnissan.com, which has background information, player profiles, programming details and news updates. Fans can also enter, via the Web site, a national sweepstakes where three grand-prize winners will get a trip for four to the final match. Nissan will also run video feeds in Miami and Los Angeles, each city having VIP viewing parties-Miami favoring Argentina, L.A. favoring Mexico. The events will include food (Mexican and Argentinean, presumably) and appearances by soccer stars from the respective national teams. Michelle Irwin--senior manager, marketing communications at Nashville, Tenn.-based Nissan--says the program was developed in conjunction with New York-based Vidal Partnership, the company's Hispanic AOR. She says last year's inaugural Reto Final effort garnered strong viewer numbers. "The ratings were fantastic," she says, adding that viewer numbers were 41% above expectations, and delivered 58% more viewers than anticipated for the final game, which last year was in L.A. For that effort, Nissan received over 30 minutes' integration in programming. Irwin says format of the show makes it ideal for vehicle integration "because it involves going in search of players for the teams, so we have gotten great product placement because it involves a lot of driving." She says product placement this time is focused on Titan and Pathfinder because they index very well in the Hispanic community and because refreshed versions of both vehicles are launching now. Advertising surrounding the broadcasts will feature Altima and Titan, and vehicles will be on display at the stadium in Texas, per Irwin. She adds that about 25% of Nissan sales are to Hispanic and African-American consumers, and 15% of Nissan sales are to Hispanic Americans. "That's the highest percentage versus key competitors," she says. The company, which has increased its spend against the Hispanic market in fiscal 2007, is running Hispanic marketing programs this year to promote Altima, Sentra Versa, Pathfinder and the forthcoming Rogue compact. Other programs Nissan is doing include "Copa Nissan," a soccer tournament in the U.S. Hispanic market and South America. In the U.S., Nissan is a sponsor of the Latin Grammies.
Procter & Gamble's PUR water filtration system is adding a new spin on filtered water. It's creating a new version that includes flavors. The Flavor Options SKU lets consumers insert a flavor cartridge into a redesigned PUR pitcher or onto the faucet-mounted version, and use a button to vary the concentration of flavor in the water dispensed by the pitcher or tap. According to marketing consultancy Mintel, which issued a report on water filtration systems in 2006, bottled water has taken the steam out of water filters, but the strength of the bottled water market is an opportunity as well. The consultancy sees bottled-water buyers--25- to-34-year-olds, and parents--as a potential market for filter devices. Younger people, urbanites and African Americans are good prospects because they report being dissatisfied with their tap water. Per the consultancy, after strong growth in the 1990s, sales of water filter systems grew only 3% between 2000 and 2005, to $1.7 billion. Ironically, 2005 saw a 6.5% increase in sales because of natural disasters like Katrina that year. Per the study, fears about water quality and aesthetic concerns about taste drive the market. The consultancy predicts sales will increase as the U.S. continues dismantling the Clean Air, and Clean Water acts. Overall, Mintel sees sales of water filtration products accelerating in coming years, increasing 27% at current prices and 8% at constant prices through 2010. Suzette Middleton, a P&G health products spokesperson, says that PUR is starting to make inroads in increasing public awareness of the need to filter water. "Consumers are starting to respond, and we expect the new PUR Flavor Options will fuel further category growth." She says purification, cost and environmental concerns are points of differentiation versus bottled water. "PUR products are certified to give you healthy water by removing contaminants while bottled water is not; PUR is a better value at one-tenth the cost of bottled water; and PUR is better for the environment because it helps prevent the need for oil usage to produce and transport so many water bottles and also helps prevent some of the 10 billion water bottles from piling up in landfills every year." Middleton says over the course of a year, the product produces the equivalent of 3,200 16-ounce bottles of water. The PUR Flavor Options package comes in Raspberry, Strawberry and Peach. P&G says it has no calories and no artificial colors or flavors. PUR Flavor Options pitchers are sold at an MSRP of $29.99, with faucet mounts at $49.99 and cartridges, which are sold in packs of two, at an MSRP of $9.99. Middleton says the Flavor Options packet will appeal to consumers because it allows them to control concentrations of flavoring. "Since people tend to like different amounts of flavor, being able to control the amount of flavor in each glass by just pushing a button more times puts the consumer in ultimate control." According to Middleton, PUR and Brita are the major players in the home filtration market, and "in the last 6 months, PUR has grown share at Brita's expense, so now the two are equal."
Fueled by strong profit growth in its credit-card operations and its continued determination to "continually delight our guests," Target Corp. said net earnings for the first quarter climbed 18% to $651 million, while revenues gained 9.2%, to $14 billion. Overall, comparable-store sales advanced 4.3% for the quarter. In a conference call discussing its results, the company credited its "Expect more, pay less" marketing strategy for the strong results, as well as its commitment to encouraging shoppers to visit stores more often. Increasingly, food is playing a key role in these more frequent visits, executives said, including Target's Archer Farms label. (The company says it has increased the penetration of private-label food products to 15%.) The company is also expanding its line of authentic Hispanic food, expanding its self-service delis, and selling more organic food and locally grown produce. It has also upped its prepackaged produce offerings, both for convenience and to emphasize food safety. To get more repeat visits from fashionistas, the Minneapolis-based retailer is also still working on shortening its production cycles, to better compete with other fast-fashion chains, as well as increasing its "limited time" assortments. In the coming quarter, executives said, these will include Devi Kroell-designed handbags, in metallic animal skins and jewels, as well as the new Libertine line for teens by Cindy Greene. Weak spots included a very soft two-week period in April, as well as disappointments in seasonal merchandise, music, movies, and intimate apparel. Spending was strong in consumer electronics, as the company expanded its flat-screen TV offerings, as well as in newborn, infant and toddler clothing. For May, Target expects same-store sales to gain a hefty 5% to 7%, followed by smaller June numbers, due to the timing of the Memorial Day holiday. And in the second quarter, the company plans to open 42 new stores, include 10 SuperTargets.
Nascar fans, who up to now have faced a dearth of opportunities to express their passion financially, can rejoice. Bank of America is rolling out a new affinity program that will put Nascar Nextel Cup Series driver Kasey Kahne and his No. 9 Dodge smack dab in the middle of its credit cards and debit cards and a Nascar logo on the checks. The launch of BofA's new national program coincides with the national introduction of affinity banking programs, enabling consumers to display their passion through their everyday banking experience, corporate spokesperson Joseph Goode told Marketing Daily. "Through our acquisition of MBNA, the Nascar affinity [credit card] program was folded into Bank of America enterprises," he said. "But we're taking that model and driving it through deposit products. This bundled Nascar offering includes credit cards, debit cards, checks and statements to really provide the Nascar fan a bundled offering with a supercharged rewards program." Nascar banking customers also can use their personal check card or credit card to earn RacePoints, redeemable for Nascar merchandise, prizes and even exclusive, once-in-a-lifetime experiences--such as having access to the red carpet area for driver-introductions or serving as honorary crew member for a day. The program will be marketed through points of sale in BofA's banking centers, online at bankofamerica.com, on spot radio and newspapers in key markets around the country where the bank has Nascar track relationships such as Charlotte, N.C., Dallas and Chicago. The Nascar rollout coincides with a "significant national rollout of a broader suite of affinity deposit products," Goode said, "some cause-related, college and university alumni associations, special interest groups and professional organizations. "Our customers have passions for a lot of different interests--not just sports--so we've taken this affinity marketing model and developed a whole suite of affinity products so that our customers can demonstrate their passion for their interests in their everyday banking experience." Among the more than 20 organizations are: Habitat for Humanity International; the Humane Society of the United States; Defenders of Wildlife; Ducks Unlimited, Inc.; Precious Moments, Inc.; Boat Owners Association of the United States; New York State Bar Association; The Florida Bar; and the National Association of Social Workers. With every customer sign-up for these affinity check cards or credit cards, Bank of America will financially support these organizations. In addition to Kahne, Nascar banking customers can also carry select products of Dale Earnhardt Inc. in their wallets, including Dale Earnhardt Jr., Martin Truex, Jr. and Dale Earnhardt. BoA plans to expand its Nascar banking program with additional teams and drivers.
Branded display ads and search placements helped the online ad industry post its best year ever in 2006, according to numbers released yesterday by the Internet Advertising Bureau and PricewaterhouseCoopers. Overall revenue increased 35% last year to $16.9 billion, due in large part to record fourth-quarter revenue of $4.8 billion. Both search revenue and display revenue climbed 31% year-over-year, to $6.8 billion and $5.4 billion, respectively. Search accounted for 40% of last year's revenues, slightly lower than the 41% it commanded in 2005. Display advertising, classifieds, and referrals accounted for 32%, 18%, and 8% of last year's full revenues, respectively. "The ability for these marketers to achieve both performance-based and branding objectives with interactive advertising is the foundation for this exceptional growth," explained David Silverman, partner, Assurance, PricewaterhouseCoopers. Consumer-related advertisers accounted for the largest revenue category at 52%, up from 51% in 2005. Financial services, the second-largest category, accounted for 16%, followed by computing advertisers with a 10% share. Within the consumer category, the biggest sub-categories were retail--with a 47% share--automotive with 22%, and leisure with 13%. The industry remained highly concentrated among the top ten sellers, which accounted for 69% of revenue last year. Still, this was less than the 72% that top sellers controlled in 2005. The IAB expects last year's growth to continue apace, according to Randall Rothenberg, president and CEO of the bureau. "We have every confidence that this growth trend will continue as marketers allocate more of their total marketing dollars to interactive and the industry delivers effective and innovative platforms for connecting with consumers," Rothenberg said Wednesday. Search, display, classifieds and lead generation all will continue to grow at a healthy rate with an increase in both performance-based and CPM, or impression-based, pricing, the IAB said. In addition, consumer advertisers will continue to represent the largest category of Internet advertising spending. ADVERTISING FORMATS2006 (Ttl =$16,879)2005 (Ttl = $12,542M)Type of Advertising$% share of market$% share of market Display Advertising 3,685 22% 2,508 20% Sponsorship 496 3% 627 5% Slotting Fees 0 0% 125 1% Rich Media (including Broadband Video) 1,192 7% 1,004 8% All Display5,37332%4,26434% Keyword Search 6,799 40% 5,142 41% Classifieds 3,059 18% 2,132 17% E-mail 338 2% 251 2% Lead Generation* 1,310 8% 753 6% TOTALS:16,879100%12,542100%INDUSTRY CONCENTRATIONFY 2006FY 2005Top 1069% ($11,647) 72% ($9,030) Top 2582% ($13,841) 86% ($10,786) Top 5092% ($15,529) 95% ($11,915) PRICING MODELSFY 2006FY 2005CPM or Impression48% ($8,102) 46% ($5,769) Performance Deals47% ($7,933) 41% ($5,142) Hybrid5% ($844) 13% ($1,630) Source: Interactive Advertising Bureau/PricewaterhouseCoopers
Broadcast TV advertising was predictably down in the first quarter--some 5.3% to $11.8 billion, per the Television Bureau of Advertising analysis of TNS Media Intelligence/CMR's estimates for the top 100 markets shows. The best performance in a weakening market was local TV advertising--down 3% in the period to $4 million. Syndication had it tougher, off 5.9% to $986.8 million. Network television hit a 6.5% decline to $6.7 billion. Much of the local TV decline came from the big automotive category--the category to blame for other down sales periods. Automotive manufacturers' TV marketing dollars were down a big 8.9%. Auto dealer associations sank just 2.7%. Other large categories that registered drops include insurance and real-estate advertising, down 14.9%. Leisure-time activities were 12.8% lower. Not surprisingly, big individual advertisers that made cuts include the General Motors Corp. Dealers Association, down 13.8%; Ford Motor Dealers Association was off 37.5%. DaimlerChrysler dropped 23.3%. Good news for Verizon Communications--it was up 62.3%. AT&T grew 15.4% more versus the same period a year before. Nissan Motor Co. was up 19.7% during the period. McDonald's was 33.2% higher as well. Entertainment companies: Time Warner added 44.7%; Comcast Corp. was up 32.3% and National Amusements soared 130.1%. Restaurants, the second-largest local TV ad category, was up 3.8%. Telecommunications, the third-largest category, was 7.1% higher. The Television Bureau of Advertising, as well as other analysts, expected lower advertising data, since 2007 is a year without an Olympics and lower political ad revs.