GMC, General Motors' SUV and truck division, will join siblings Chevrolet and Cadillac in the Super Bowl ad lineup. The company bows the first effort during the Bowl game by its new agency of record, the Detroit office of Leo Burnett, which also handles Pontiac, and which wrested the account away from GMC's long-time agency, Lowe, N.Y. The 60-second spot features an animated short by Hungarian animator Marcell Jankovics that was nominated for an Academy Award back in the '70s. The ad--"Why Push?"--focuses on GMC's new hybrid gas/electric version of the Yukon full-sized SUV. The spot also bows a new theme line that will be introduced in a new brand effort next month: "Never Say Never." The first part of the advertisement shows a black-and-white, constantly morphing drawing of a man, alternately muscular, sometimes merely a representation in lines, rolling a boulder up a hill. During his struggles, a voiceover says: "Why push? Why change? Why grow? Why dream? Questions you don't have to ask yourself. When you never say it's good enough. When you never say it can't be done. When you never... say never." The short shifts into images of a white Yukon hybrid and text, noting that the vehicle gets 50% better mileage. Mary Kubitskey, national advertising manager for GMC, says the ad doesn't reflect a departure from GMC's decade-old "Professional Grade" positioning. "We aren't changing strategy from 'Professional Grade'," she says. "We like to think [the ad] catches the emotional appeal, that the spot personalizes the Professional Grade theme." She says the "Never Say Never" line will be incorporated "throughout our new campaign." Also, per Kubitskey, the new minute-long spot is slated for the Academy Awards broadcast as well. She concedes the new spot will be a striking contrast to the usual mid- to lowbrow Super Bowl ad fare. "We didn't set out to create a Super Bowl ad," she says. "It's not a funny spot; we think it's simple and emotional, that it delivers good, simple messages." The ad will also be posted on GMC's Web site just before the game, and also on YouTube. As for GMC's new brand push, which launches next month around the time of the Academy Awards, ads will feature GMC's Sierra pickup truck, Acadia crossover, Yukon and possibly--per Kubitskey--a full-line brand spot. The casual observer might see irony in the new advertisement's Sisyphean imagery, given high gasoline prices that have driven consumers away from truck-based SUVs that are GMC's stock in trade, and toward crossovers. Indeed, while the company officially posted sales of 505,746 vehicles last year, versus 481,222 in 2006, the increase came entirely from the division's only crossover vehicle, the Acadia. Sales of all other GMC vehicles were down last year.
AT&T and Yahoo will share revenue from advertising on mobile phones and personal computers, having announced the multi-year deal this week. Financial terms were not disclosed, but the deal expands an alliance the companies formed in 2001. Yahoo will provide search and display advertising for AT&T customers on mobile devices and PCs. As part of the deal, the search engine will create a new look and feel for the carrier's Web portal. The agreement also creates new advertising-based revenue opportunities for both companies from search and display capabilities from either a mobile handset or a PC. AT&T spokesperson Jenny Parker says that while the agreement paves the way for an "even richer and more innovative online experience for consumers, it also reflects the changes in the marketplace where search, advertising and mobile have become increasingly important growth areas." Consumers also benefit, Parker says. The new att.net portal will allow AT&T wireless customers--even those who don't subscribe to the carrier's Internet service plan--to establish att.net e-mail addresses. All of AT&T's 14.2 million broadband customers will gain access to co-branded versions of Yahoo's mobile Web properties and the Yahoo! Go application. Yahoo also will become AT&T's provider for search and display on both mobile devices and the PC; and yellowpages.com becomes the lead local search engine on both screens as well. As for AT&T U-verse TV customers, they will continue to have access to Yahoo content through the service's interactive AT&T U-bar feature, where available. The AT&T U-bar enables subscribers to view stock quotes, weather forecasts, traffic information, and sports scores on their TV screens in an area below the program they're currently watching, without interrupting their program. While this feature provides Yahoo content to U-verse subscribers, it doesn't provide opportunities for marketers. Meanwhile, Yahoo on Tuesday confirmed it would cut 1,000 employees, or 7% of its workforce, in the coming quarter. The search engine has experienced increasing competition with Google. Yahoo's reported net income for the fourth quarter fell to $206 million--or 15 cents per share--from $269 million, or 19 cents a share, in the year-ago quarter. Revenue rose 8% to $1.8 billion. Research firm eMarketer says Google took 75% of U.S. paid search advertising in 2007, up from 60% in 2006. Yahoo, ranked No. 2, raked in 9% share, with other search engines splitting the 16% of the pie. U.S. online ad spending should reach $42 billion in 2011, up from $27.5 billion in 2008. Compare that with U.S. search ad spending reaching $16.6 billion in 2011, up from $11 billion in 2008.
Everyone knows Vogue's famous cost-per-wear formula--$600 sunglasses are a steal if you wear them every day, but a mistake if they only go with one outfit. And while marketing experts still haven't crystallized the Super Bowl's buzz-for-buck formula--just how many beer drinkers have to laugh to justify a $2.7 million price tag?-the math is getting a lot less fuzzy. Cymfony, a TNS Media Intelligence company in Boston, tracked the audience engagement levels and returns-on-investment of last year's Super Bowl ads, and discovered that some marketers really know how to make the most of the media spotlight. For one thing, stealth is a lousy strategy: The more marketers plug their ads in advance of the game, the better, in terms of generating pre- and post-game coverage. And that turns out to be true in both conventional media and on such social media sites as YouTube and MySpace. Cymfony devised a volume index score, comparing the total volume of coverage and discussion of Super Bowl advertisers to all advertisers. Marketers that announced more than two weeks before had a volume index score of 203, twice that of a typical advertiser. Advertisers that tipped their hands in the two-week pre-game period scored 176. And those that either announced their ad plans on Super Bowl weekend or just let the ads speak for themselves during the game had a volume index of just 18, "substantially below the median." And advertisers who revealed their actual ad online before the game, Cymfony reports, "generated 4.3 times greater post-game coverage than the average of the companies that only announced their participation." That buzz is critical, says Jim Nail, Cymfony's CMO, given the stratospheric pricing of a Super Bowl spot. "You're paying a 10-times premium reaching a similar-size audience in prime-time programming," he says. "So you better get a lot more out of a Super Bowl buy than just 90 million viewers--you can buy them elsewhere, for a lot cheaper." Another way to quantify an ad's impact is the increasing consumer interest in ranking them, either with snarky comments on social Web sites or simply by casting a vote. The Super Bowl seems to turn many viewers into members of the academy: These ad cognoscenti don't just want to laugh at the ads, they want to judge them. In fact, that may be the most perplexing thing about the Super Bowl. Most of the time, people don't just passively hate TV ads--they actively thwart them, via high-tech methods (like TiVo) or time-honored traditions (bathroom breaks.) And while advertisers have long known that isn't true for the Super Bowl, a recent National Retail Federation study found that 41.5 million consumers say they will tune in because of the commercials. By getting the news about ads out early and often, as Doritos did last year, and as advertisers like Pepsi, Bud Light and Taco Bell are doing this year, Nail says companies have a better chance at boosting word-of-mouth among this critical group. "Marketers are a narcissistic lot. They think: 'My ads are so cool, consumers will want to watch them.' And of course, consumers don't care that much. But a few of them really care--they want to be the ones at the Super Bowl party saying, 'Have you seen this spot?'" They also want an opportunity to make themselves heard. This year, Steve McKee, president of McKee Wallwork Cleveland and co-founder of the original Ad Bowl, predicts a big voter turnout. Last year, more than 2,800 people voted at Adbowl.com--something McKee and friends invented with little slips of paper back in 2001 and took online the following year. Others rate ads, most notably USA Today, using focus groups. "While the others get more attention, we actually think ours is the most democratic and the largest--I'm not saying it's scientific, by any means, but 2,800 is bigger than a focus group," McKee says. While it has intrigued McKee to watch the way the YouTube phenomenon "has transformed Super Bowl ads from a one-day event to a 10-day season," he's still a little mystified by the intense pressure Super Bowl advertisers face to make their Super Bowl spots absolutely incredible. "If the Super Bowl is your one shot to make an impression on people," he says, "you've got a strategy problem, not an advertising problem." Others insist that it's critical for advertisers to bring only their A game. "Not only do companies spend a lot to buy the spot, they also spend a great deal on the creative," says David Reibstein, a professor of marketing who specializes in metrics at the Wharton School. "And, usually, you had to convince senior management to buy into this, so it really is important to have an ad that breaks out from all the other advertisers--this is your big fanfare. And if it's bad, and if it gets panned in the press, that creates tremendous internal pressure. Remember when Glaxo introduced Levitra? It wasn't funny. It didn't really explain what the drug did. And it was one of the lowest-rated ads." Nail agrees that the "blockbuster mentality has prevailed, ever since Apple's iconic "1984" spot." But Cymfony has also found that controversy for controversy's stake isn't always effective. After measuring the consumer response to Nationwide's Kevin Federline spot last year, Cymfony found most consumers were quite positive about it--even if some fast-food workers were offended. But the opposite was true for the General Motors ad that featured a cute little robot offing himself: "Social media's Favorability Index was very low at minus 122," Cymfony reports. And for Snickers, which drew so much heat for its ad that had two alpha-male mechanics accidentally kissing, "while the overall favorability remained positive, the high 196 Polarity Index indicates the controversy overshadowed the ad's selling message."
"Hannah Montana" has been reportedly sending fans into frenzies as parents pay ridiculously large sums for concert tickets. Now fans will find the hugely popular brand at Wal-Mart stores. Together with Disney Consumer Products, the retailer plans to give families more affordable access to "Hannah Montana" merchandise and activities this year. Wal-Mart aims to offer more ways for fans to "express their inner pop star," with approximately 140 unique "Hannah Montana" products. Marketing and advertising efforts to promote shirts, shoes, purses, belts, socks and other merchandise are planned to run through the fall and back-to-school season. The Bentonville, Ark. retailer and Disney will collaborate on launching in-store promotions this weekend, according to Wal-Mart spokeswoman Melissa O'Brien. Several 30-second spots will appear on television, and moviegoers at approximately 4,000 theaters will see ads running this weekend, too. In the first cinema ad, two girls--in anticipation of seeing "Hannah Montana" live--are shown picking out accessories to wear to the concert. Wal-Mart and Disney also plan to launch a microsite filled with games and fashion tips. "Since the concert is difficult to access for some consumers, we are trying to provide mothers and daughters who love 'Hannah Montana' a special place where they can purchase affordable accessories," O'Brien says. "We want folks in small towns to have access to purchase shoes and clothing to celebrate their favorite pop star, too." Known for locking in special deals with entertainment companies, the retailer inked exclusive rights to sell a line of "Hannah Montana" products in its stores and on the Web. Wal-Mart now has exclusive rights to sell a collection of sportswear, T-shirts, watches, handbags, luggage and room accessories, and shoes and flip-flops. Other products sold through Wal-Mart include sleepwear, makeup, spa and bath kits, fragrance, nail kits, wigs, assorted dolls, microphones, play stages and play sets, board games, and electronic games for Nintendo DS and Wii. The "Hannah Montana" apparel and accessory line launched in October 2006. During that holiday season, it was the No. 1 selling line in the tweens category at Macy's stores nationwide, and continues as a top seller at Macy's, Dillard's, Club Libby Lu, Kohl's, Target, JCPenney, Toys R Us and Kmart, among others, according to Disney. Celebrating the theatrical release of "Hannah Montana & Miley Cyrus: Best of Both Worlds Concert Movie" in Disney Digital 3D on Friday, fans can pick up an all-access pass at Wal-Mart stores, which gives them a secret code to download "Hannah Montana's Rock Star" music video at DisneyChannel.com/AllAccess. The latest "Hannah Montana 2 Non-Stop Dance Party" CD released Wednesday includes an additional track when purchased at Wal-Mart. To coincide with the CD release, Wal-Mart will also offer the "We Got the Party (Remix)" ring tone for $1.99 on Wal-Mart mobile. Consumers can access the ring tone at wmtmobile.com/hannah, by texting HM to 77888. Since Walt Disney Records released the "Hannah Montana" soundtrack on Oct. 24, 2006, more than four million have sold. In its first week, it debuted at No. 1 on the Billboard chart, and it also reached No. 1 on both the Billboard Kids' and the Billboard Soundtrack chart. In June 2007, Walt Disney and Hollywood Records released the first solo CD from the then 14-year-old Miley Cyrus, a double set, "Hannah Montana 2/Meet Miley Cyrus," which went double platinum with sales of more than 3.7 million. Miley Cyrus, the singer, is the daughter of former country western singer Billy Ray Cyrus.
Auto dealers spent $7.3 billion on direct marketing campaigns in 2007. But according to the Direct Marketing Association (DMA), that outlay resulted in $248.1 billion in sales. The industry and lobbying group's first "Direct Marketing Facts and Figures in the Automotive Industry" report says that boils down to $9.68 return on investment for every dollar spent. Anne Frankel, senior research manager, says the numbers in the report are derived from calculation of the direct-marketing driven sale with ad expenditure. "There's always a code or key associated with direct-market efforts, so the sale can be tracked to the source of expenditures. That's the strength of the direct market: you can track effective outlays." The group's study said that in the third quarter last year, Toyota led the industry in mail drops for dealership service promotions. Of the domestic brands, Ford, Chrysler and Dodge sent out the most direct mail sales campaigns during that period. Toyota, Mercedes-Benz, and Honda topped import brands. The firm says campaigns offering direct-order opportunities (versus lead generation) produced at least 40% of direct-marketing sales last year. Frankel says that last year, 17.8% of new-vehicle sales came via manufacturers' direct-marketing efforts, and that by 2012 it will likely hit 21.2%. The study predicts that by 2012, auto manufacturers will spend $9.8 billion on direct marketing, which the group says will return $108.1 billion in sales. "The compounded annual growth rate [of direct-marketing sales] is running at a faster pace than overall sales for the entire industry," she says. "It's growing twice as fast." While the group's purpose may place a big question mark on the study's objectivity, Frankel says the firm does not generate its own data, but contracts to third-party firms--in this case Lexington, Mass.-based Global Insight, which "developed models and provided the data," says Frankel. "We actually thought the numbers they provided weren't conservative enough," she says, adding that the numbers and projections in the DMA's study reflect a more conservative estimate. "And we use external consultants to review reports to make sure what we are reporting is consistent with what they have observed. So, we have a number of checks and balances."