New Balance is tripling its advertising budget and launching a brand-new position, targeting the angst most runners feel when they lace up their shoes every morning. "Running is a struggle," says Christine Madigan, director of global marketing and brand management for the Boston-based company. "It's always a struggle. And the idea of this struggle is the heart of our brand platform." The new national campaign is called "Love/hate. This is the new balance," and launches this week during the NCAA basketball tournament on CBS. "We've always stood for performance and authenticity," Madigan says, "and we still stand for that 100%." But with the ambitious goal of doubling its $1.63 billion in sales in the next five years, it was time to reach out to a new audience, especially high school athletes. "Running may not be their main sport, and they may not even like it. But they know that if they want to win at basketball or lacrosse, they have to excel at running. Better running makes you a better athlete, and they know that." So the new ads, aimed at a core 18-to-29 demographic, include its three targets: Elite runners, fitness runners, and those high-school athletes who are working on their speed. While the total footwear market in the U.S. is estimated at $44.4 billion, growth in performance shoes--one of New Balance's strong suits--has slowed. Instead, younger buyers have been snapping up lifestyle shoes, and the company has been aggressively expanding its offerings in that area, including the upcoming NB Inside for women. The company also owns PF Flyers and Dunham. And while returning to this core of authenticity is essential for the company if it is to meet its ambitious growth goals, it has also been exciting. "This campaign came out of insights from consumers around the world, and it resonated with everyone," Madigan says. "You want to run, and you want that high, but there's always this internal struggle--this battle in your mind." All ads build on what the company calls a "visual red world, representative of the runner's struggle--filled with temptations and obstacles at the start but with an end result of euphoric accomplishment and 'love'." One of the print ads, for example, sounds like it fell out of some Dr. Phil dialogue on dysfunctional romance: "You and running have found a way to keep your relationship fresh. You plan a day in the country, take the road less traveled, and find yourselves an unbeaten path. And then beat the crap out of it." "Today you almost broke up with running," reads another. "Once again, around mile 2, lungs full of air, pupils full of sunrise, you remembered, 'Oh yeah, this is why we got together.' Man. Tough love is complicated." Print ads are running in Runner's World, Running Times, ESPN the Magazine and Running Network. In addition to the five TV spots, the campaign also includes an online component, with banner ads and interactive elements on ESPN, SI.com, CBS Sports, active.com and Max Preps. Events and sponsorships include Major League Lacrosse, Komen Race for the Cure, Rock 'n' Roll Marathon Series and the Summer X Games.
AT&T and Verizon sealed the deal last week on a slew of airwaves that could open new revenue streams for advertising and marketing agencies and provide consumers with better experiences on mobile devices. The carriers spent billions of dollars to secure parts of the spectrum. AT&T paid out $6 billion; Verizon more than $9 billion. The auction included an "open-access" provision that would allow users on about one third of the airwaves to use any phone or software. The open-access provision sent cheers through the advertising and marketing industries, but analysts--who know the network could take years to build and won't generate significant income for several more --were taken back by the financial investments. "This is a big hole in the carriers' finances for several years to come," says Jan Dawson, a telecom analyst at research firm Ovum. "AT&T's purchase of Aloha looks like a smart move, though it still spent a truckload at the auction, but Verizon was the big spender here." Reminiscent of the 3G auctions that took place in several countries eight to 10 years ago, Dawson says, AT&T and Verizon will likely use the spectrum to expand capacity on their existing networks, as well as to build forthcoming 4G networks, although that's a long way off. He notes that locking in the airwaves is a major step toward next-generation services. As AT&T and Verizon drive growth in data offering, it will become important that both have sufficient support for ads, as well as video and other consumer services. Services made possible by the 4G network should replace limitations and latency with innovation and faster bandwidth rates. Sophisticated ads will likely emerge, creating new models on phones, such as video overlays and richer content, similar to those seen on the Web through PCs, according to Mark Pearlstein, SVP/business development at mobile ad network Ringleader. "We saw this with online ads, which started with simple banner ads, video and then flash," Pearlstein says. "The same thing will happen in the mobile space with video. You also will see mobile-specific applications being written. For example, your phone could become the central hub in the car via Bluetooth." The phone becomes the connection device to serve ads into the car. The ads are distributed through the phone, but mobile ad networks like Ringleader will need to know if the consumer views the ad through the handset's three-inch screen, or the video player for the kids in the backseat. Publishers, such as Cellfish, Newsweek Interactive, Washington Post, ToneThis, Go2 and Yahoo that Ringleader works with will need to know, too. The ultimate winners of the 700 MHz auction are likely to become ad and marketing agencies, content providers and the Internet companies that have increasingly felt stifled by the lack of control. "They are objectively much better at creating compelling customer experiences and understand customers in ways that mobile operators have barely begun to understand," according to a research note from IDC analyst Scott Ellison. While both AT&T and Verizon declined to disclose long-term plans for their purchase, both issued statements regarding the Federal Communication Commission's auction results. AT&T said the company's 700 MHz spectrum will cover 100% of the top 200 markets. It gives AT&T the spectrum needed for new services covering 95% of the U.S. population, and continues to offer "the latest technology and best-in-class services to our customers as the wireless industry grows and evolves." Verizon, although equally pleased with the FCC's decision, appeared to be less forthcoming about future plans. "We were successful in achieving the spectrum depth we need to continue to grow our business and data revenues, to preserve our reputation as the nation's most reliable wireless network, and to continue to lead in data services and help us satisfy the next wave of services and consumer electronics devices."
Chrysler this week is launching a new program that aims to bring consumers--some 2,000 of them--into the boardroom, virtually. The industry's first online Customer Advisory Board (CAB) will have consumers offering their takes on product features, designs and technology. The closed, online forum will be managed by Palo Alto, Calif.-based tech firm Passenger, a technology company that makes products for customer collaboration, and which created the platform for Chrysler's CAB forum. Chrysler spokesperson Carrie McElwee says the initial target is to have about 2,000 people on the board. "We have a number of people that have already said yes, and we will be reaching to owners next week as well." She says the effort launched initially with a new consumer-input site, ChryslerListens.com, promoted via a corporate ad push. The site is also the application point for consumers interested in being on the advisory board. "Those are the people this week we will contact, followed by owners," she says. The only parameters are that one cannot be an employee of an automaker or dealer, but you should be an owner or Chrysler prospect. "We are looking for long-term members of the board, an ongoing relationship," she says, adding that discussion topics could be "products, features, design, and fuel efficiency. The thing that makes this different from a focus group is that we will be able to talk to these people in an ongoing way, versus one time." Justin Cooper, co-founder, chief marketing and innovation officer at Passenger, says the company fills a need. "At a time when consumers are actively avoiding marketing, brands are trying to figure out how to engage these people. While it contradicts traditional marketing, it offers a mutual value proposition." Namely, customers have direct access to a company they are interested in, and they get to feel like they are part of the process, and companies get ongoing insight. Cooper says that, unlike other such efforts, there are no cash or coupon incentives to join. "They are here because they want to be. So brands gain insight in a timely fashion, via ongoing--not episodic--conversation." Cooper says Passenger will provide collaborative technology that allows for synchronized events in which CAB members can view rich media (perhaps new TV spots Chrysler is testing, or shots of new vehicles), social networking between CAB members, and analytics. "We scale up to 5,000 consumers per community," says Cooper. Clients include Coca-Cola--which, per Cooper, uses a consumer advisory board to tweak its user interface and strategic partners for its customer loyalty program, My Coke Rewards; ABC Studios and Entertainment to test rough cuts for programming decisions; and JCPenney.
The folks who introduced the original "Got Milk?" campaign back in 1993 are rolling out the 2008 iteration. The new effort by the California Milk Processor Board (CMPB), which accounts for about 10% of national milk sales, focuses for the first time on teenagers with a music and social networking strategy touting the healthful benefits of milk. The effort also includes a separate Hispanic campaign with a mythic theme. The campaign, via Goodby, Silverstein & Partners, introduces a fictive, milk-enhanced rock star, "White Gold," who sings about his love for the (other) white stuff. The star, with a perfect physique, calcium-enhanced hair, nails and teeth, plays a guitar filled with milk and is backed by the "Calcium Twins" on drums and bass. All of which happens, initially at least, on a White Gold band Web site WhiteGoldisWhiteGold.com, to be launched soon, and music video pages on sites like MySpace.com/whitegoldiswhitegold, YouTube and similar sites. The effort is replete with "hit" single "One Gallon Axe," a song detailing White Gold's evolution from undernourished waif (sorry, Angus) to Herculean guitar king. The second phase breaks this month, with TV spots to hit all California markets. Steve James, CMPB executive director, says the band site will have behind-the-scenes footage, music videos, biographical tidbits and other live-action features. He says the effort, which will run at least through the year, will include contests, "maybe around getting your guitar solo on the White Gold site, a battle of bands to join the group for a virtual guest spot. "We are going to see how many possible offshoots we can come up with," he says. "We feel that it's really almost limitless in terms of where we can take it." Paul Charney, creative director at the San Francisco-based Goodby, Silverstein & Partners, says the goal is to establish the band and music as tongue-in-cheek. "We started out with five real songs and created music videos with singles and ultimately, a full album," he says. He added that the campaign will include print ads in youth and music magazines. "I think at this point we are going to let it happen a little organically. We are seeding it with certain Web sites--some music-related, some that scour the Web for weird, wacky things." He says there will also be banner ads. Charney says that since last Monday, when the site went live, there have been some 100,000 views on YouTube "without us advertising it at all." The campaign is matched by a Hispanic market effort that includes TV spots called "Leyendas" that comprise one featuring an Elfo and one a Bruja. The 30- and 60-second ads, via Long Beach, Calif.-based Grupo Gallegos, show a witch on a broom chasing frightened children--part of a monthly ritual. She discovers a glass of milk, drinks it and is transformed into a good person. Tag: "The calcium in milk reduces PMS symptoms." The other spot, featuring an elf, promotes milk as a sleep assistant. In addition to being the largest milk-consuming state in the nation, California--per James--is about to surpass Wisconsin as the No. 1 dairy producer in the U.S. The market, however, is being squeezed by the proliferation of fortified beverages, particularly among teenage consumers. "Things like fortified waters didn't exist a couple of years ago," he says. "Still, we are holding our own; given the competition and rather large spike in dairy prices last year, the fact that consumption remained flat is quite an accomplishment."
If you haven't been mobile banking yet, this may be the year. According to financial industry research company Tower Group, 2008 will be the tipping point for mobile banking to move into the mainstream. "It's the convergence of technological sophistication and a real-world need on the desire of customers," says Virginia Garcia, research director of the Needham, Mass. company's emerging technologies practice. "Within a few years, mobile banking will be the primary touchpoint for all Internet banking." While the banking industry has had mobile banking capability for years, it has been held back by the technological limitations of cell phones. But now the technology has caught up with the capabilities, Garcia says. "Today, the downloads are faster, and the devices are better," she says. In addition, a younger generation that has become accustomed to doing everything on the go and a more transient immigrant population are feeding the need for mobile banking technologies. "There's an entire generation of young people who have an expectation of mobility," Garcia says. "It's not necessarily [something] for the mainstream customer base, but it's going to grow as a factor in retaining and attracting new customers." Garcia estimates that by 2012, 40 million customers will be using mobile banking. Many of those customers will be with smaller regional banks that have just begun to develop mobile banking practices, she says. While the country's top 20 banks have all developed mobile banking practices, there are roughly 17,000 banks and credit unions in the U.S., Garcia says. According to a January 2008 study by Yankee Group, banks may want to target low-income consumers and users of pre-paid cell phones if they want mobile banking to truly catch on. According to the study, 21% of cell phone users in North America are low-income consumers, but most mobile banking programs are geared toward more affluent and tech-savvy users. The Yankee Group advised mobile banking providers to partner with physical banks or national retailers to make the service easier to use. As these bigger banks move into the regional markets, the smaller banks will have to develop technological platforms, such as mobile banking, to maintain parity and keep their customers, Garcia says. "The competition is on a level playing field, forcing the smaller institutions to respond," she says. And as American consumers get more comfortable receiving updates and other banking features on their cell phones, it's possible--even likely--that they'll start using their phones for payments, much as they do debit and credit cards, Garcia says. "Mobile payments will be a strong, robust segment," she says. "Mobile banking is getting people accustomed to that."