Daimler AG's Smart division, which makes ultra-diminutive cars with room for two, is launching new advertising and grassroots efforts. On Oct. 17, Smart will air a new television spot that takes the same general thematic direction of its initial spot this year. Both ads talk about "rethinking," evincing a general theme that people want a less complicated, less materialistic, more simplified lifestyle. The first TV spot for Smart -- launched in July, soon after sibling Mercedes-Benz USA took control of the brand from Penske Auto Group -- shows a vignette of executives, TV announcers and personalities, celebrities and the like chattering away. They are all, however, merely repeating the word "big." At the end of the spot, a junior executive in a boardroom, listening to his boss say "big" over and over again, glances out the window, sees the Smart and says "small," which makes everyone stop and listen. That ad might be something of a metaphor for what Smart has needed and what the company hopes the new campaign gives it: share of voice. Smart sold only 2,556 vehicles in the first six months of the year, representing nearly a 25% drop versus the first half of 2010. The approach may be working: Smart reported an uptick last month versus last September: 469 ForTwo cars delivered, compared to 422 vehicles sold in September 2010. With the new ad, the "rethink" theme offers a supernatural take on the horrors of hoarding and the virtues of the simplified life. A 20-something guy is in his kitchen when a drawer full of kitchen utensils opens, he bangs against it, then moves the other way to avoid it when another drawer slides open, stuffed with remotes and knickknacks. Horrified, he runs out of the kitchen and is attacked by his appliances, toys, coats, sporting goods, scarves, skis, TV, and lots of, well, "stuff" that forms a malicious mountain in his living room and threatens to swallow him. He runs for the door, which is suddenly blocked by his bureau. A pair of skis thwarts him and he falls against the mountain of belongings, gets up, sprints for the back door and escapes. Once in his yard, he gazes with relief at what turns out to be his Smart car. He gets in just as a "Transformers"-like giant comprising his belongings heads toward the car. He starts the engine and the belongings/giant collapses in the street as the Smart drives away. Voiceover: "The tight-turning, space-saving, eco-friendly Smart. Escape your stuff." Tag: Unclutter. Uncar. The ad is running on spot TV and prime-time cable channels like Bravo, Logo, Planet Green, Discovery, Sundance, E and HGTV. Digital ads are on sites like Gawker, Variety, Boy Genius, Wired, and IFC Thrillist. The company, based in Mercedes-Benz USA headquarters at Montvale, N.J., markets gasoline and electric versions of its ForTwo coupe and cabriolet in the U.S., and will have those vehicles on show at Austin's Fun Fun Fun Fest over three days in early November. The festival focuses on lesser-known artists in genres like punk, indie rock, hip-hop, electronic music and comedy. The event will feature Spoon, Passion Pit, Lykke Li, Slayer, Public Enemy, Major Lazer, Odd Future, Henry Rollins and Reggie Watts. The automaker will have several vehicles on display and will be included in all of the festival's advertising, public relations and social media activities, per the company. The company says the idea is to associate the car with what's next in culture and has been involved in Mercedes-Benz Fashion Week as well as arts and sustainability programs. The Smart ForTwo has had a tough go of it in a market where competition for subcompact vehicles is heating up dramatically. High gasoline prices and a renewed attention on the subcompact or b-segment auto market have fueled several new entrants over the past couple of years: Ford Fiesta, Nissan Versa, Honda Fit, Toyota Yaris, the latest Hyundai Accent, and now the Fiat 500 and Chevrolet Sonic. All offer four seats and some offer 40-mpg highway, leaving Smart scant room to carve out its niche for an already narrow market for two-seaters. Smart starts at around $13,000, but Chevrolet is offering a version of the Sonic for $14,000 and change, for example. The new Hyundai Accent is in the same neighborhood.
Owners of Hulu, the premium TV site, say it is now not selling the digital video service. Hulu CEO Jason Kilar has said Hulu is forecast to make around $500 million in revenue this year, up from $263 million in 2010. He says the company is profitable.After months of talks, spurred by an initial inquiry from Yahoo, the voting owners -- News Corp., Walt Disney, and Providence Equity Partners -- say the service is now too valuable to give up just yet.“Hulu holds a unique and compelling strategic value to its owners," owners News Corp., Walt Disney and Providence Equity Partners stated. NBCUniversal remains an owner, but gave up oversight when it was bought by Comcast.Hulu has been a rapidly growing online area. But many believe it still isn't doing enough -- especially in the area of big monetization, including getting consumers to pay for part of the service, started this past year under Hulu Plus. The main part of advertising-supported TV service, Hulu, has been free to consumers who have Internet access.At present, it has more than 1 million subscribers for its $7.99-per-month Hulu Plus service.Walt Disney's President and Chief Executive Officer Robert Iger had been pushing to sell the service, while Rupert Murdoch, chairman/CEO of News Corp., has been on the fence.Hulu attracted offers from Google, Amazon, Yahoo and Dish Network. Dish, which recently bought Blockbuster and started its own online streaming service, had bid $2 billion. Google put in a bid somewhat higher than that -- but it wanted guarantees from the TV network and producer owners for a certain level of TV programming content for the service. That proved to be somewhat of a sticking point. Analysts say grabbing big TV content might be costly in future years. For example, Netflix balked at paying an estimated $300 million a year for Disney and Sony movies through pay TV channel Starz. Other analysts believe that Hulu's value may have fallen as a result of consumers' complaints about other digital providers -- specifically, a 60% price hike from Netflix.
For TV networks, NFL football continues to be the steady and valuable performer among viewers and advertisers, according to new research.Two-thirds -- 64% of all TV viewers -- say they watch NFL football, with three-quarters of males currently watching some NFL on TV and 55% of women viewers. This is according to an Adweek/Harris Poll.The good news for advertisers: There continues to be little time-shifting for NFL TV content -- as well as for other sports. Just 21% say they time-shift sports programming, with NFL content faring a bit better, at 18%. Only 4% say they record all or most of their favorite teams' games. Eight in 10 Americans say they never record televised sporting events, at 79%.More good news for advertisers that spend lots of money buying messaging on traditional TV versus other devices. Sixty percent say they watch a game on TV; 8% on a computer; and 6% watch it live. Those watching on a smartphone come to a 3% tally; and those on a tablet device, 2%.Weekly NFL programming for some viewers can be a heavy time experience. Sixty percent say they spend 5 hours or less per week watching football during the NFL season, and 27% say they watch between six and 10 hours per week.Most current TV watchers still watch football the old-fashioned way -- via an ad-supported network. The study says 90% of U.S. viewers do not subscribe to any specially themed football cable or satellite TV package.NFL fantasy league-related activity continues to be a niche part of the sport, compared to general NFL TV viewing overall: Only 13% say they spend any time on fantasy stuff.
The stock market may be serious business, especially these days, but CNBC is bringing some levity to it in a new on-air campaign. The creative was produced in-house, and CNBC plans only to run it on the network as on-air promos. The ad takes place at Andel’s Deli in Long Island, where CNBC is a mainstay on the TV and customers exchange tips on stocks vs. bonds and bagels vs. bialis. The friendly owner, Jonathan Geschwind, apparently would never think to switch over to “SportsCenter.” “CNBC makes people want to eat,” he says. Presumably, his stock soars no matter the market’s health. There’s celebration food and comfort food. But for at least one customer, a roaring Dow appears to make him a more active buyer. “The market’s up, keep the food coming,” he says. The spot has roots in CNBC personality Gary Kaminsky’s affection for the deli. And it fits with the sometimes lighthearted nature of the campaign that the network believes even stressed-out pros will appreciate. “If you go down to Wall Street and you hang out on any trading floor, humor is all over the place,” said CNBC marketing chief Tom Clendenin. Between the jokes, the deli ad shows CNBC displayed on an iPhone, hitting on a core message: The network offers market information anytime, anywhere and just about any way. The campaign also focuses on watching CNBC at work, accessing it via an iPad and turning to it with a smartphone. “It’s about how they use us day in and day out to win,” Clendenin said. Or at least, try these days … “If nothing else, the volatility feeds right into the need to stay connected at all times,” he added. A second new spot stars the effervescent Virginia McGathey, who owns an options/futures trading firm in Chicago. With a smile on her face as a frenetic day unfolds, she says: “The market can run you over.” She’s a big fan of a CNBC mobile app that provides real-time updates from global exchanges. “The markets never stop -- only when I’m sleeping am I not connected,” she says. Featured small-business owners in other ads include a cattle rancher and the founder of a New York social club who goes by Jennie Enterprise. The characters all end with “I am American business, I watch CNBC.” CNBC uses that tag in another iteration of its broad “I am CNBC” campaign that highlights well-known personalities, such as Donald Trump, Sean Combs and Dana White. There are also a run of ads with CNBC personalities speaking about their personal and professional lives. (Maria Bartiromo plays the accordion and wants to be a backup singer.) The current crop of spots plays into the reality that every American is impacted by the market in some form and the colorful characters might take some of the edge off the current environment. “These are stories that I think anybody in our world would embrace,” Clendenin said. Everyone likes a good bagel, right?
A new study by Starcom MediaVest Group, the Publicis media agency network, reveals that Chinese consumers spend significantly more time online each day than they do watching TV. According to the study, the average Chinese consumer spends 3.25 hours a day online compared to 2.21 hours watching TV. And the heaviest online activity was seen in so-called “tier three” zones in the country, or medium-sized cities, where online consumption averaged close to 3.6 hours a day. “What we are witnessing now is the biggest digital evolution on Earth taking place right here in China, stated Jeffrey Tan, SMG China's national research and insights director. Video content viewing accounts for more than half of the online activity, the study found, with consumers watching about 1.76 hours of video a day on their computers. The study concluded that it is highly possible that online will become the most-used vehicle for accessing video content for consumers living in all but the most rural sections of China. “There is a growing population of netizens in lower tiers who do not even have a TV set at home and instead are choosing to watch most of their video content online," Tan said. The SMG report, entitled the Yangtze Study, took an in-depth look at Chinese consumer and media habits, motivations and values. Researchers conducted hour-long in-person interviews with 13,500 consumers ages 13 to 45 across the country from the most urban to the most rural regions. In addition, a qualitative phase of the project included in-home and school visits and shopping and leisure “tag-alongs” to witness consumer behavior. A key insight, the study found, is the importance of family in Chinese society, with 81% of respondents saying that family is more important than a career. The study also found that the notion of happiness is not consistent throughout the country. In the biggest cities, for example, 64% said they regarded money as a measure of happiness and success. But in smaller towns only 42% said that was the case. Another insight from the report: celebrities boost engagement with brands. An almost universal response across all tiers is that when a celebrity is involved with a brand, they will pay attention to that brand. But brand perceptions vary, with consumers in more urban and affluent areas more likely to link brands to social status. In the biggest cities, 62% of respondents said a famous brand could help improve social status, while just 41% of consumers residing in rural areas expressed that opinion. As China's consumer economy rapidly expands, more agencies and marketers are devoting greater effort to growing market share in the country. Bertilla Teo, CEO of SMG Greater China, said the in-depth study would help clients understand more fully the evolving consumer culture there, particularly outside of the most affluent and better-known urban centers.
Even before the owners of Hulu said they wouldn’t sell the business last week, a top Wall Street analyst was suggesting a sale would be shortsighted. It might bring a short-term gain, but that would be a pittance compared to the potential long-term loss. RBC Capital Markets’ David Bank wrote last Thursday that digital distribution might eventually become preeminent and it would be unwise to cede control of content to a new Hulu owner. He said that a buyer -– a Yahoo, Google, Amazon or Dish –- would likely have demanded the content-providing owners (Disney, News Corp. and Comcast) sign deals of up to four years promising to provide their content. That’s an eternity in the evolving media landscape. It also echoes CBS’ longtime devotion to maintaining control of its content. A “meaningful long-term programming distribution agreement” could leave the networks “at risk of losing control of their own destiny in the digital distribution ecosystem, which over time has the potential to be the dominant distribution ecosystem (versus traditional linear cable),” RBC’s Bank wrote. Bank said that a $2 billion sale of Hulu could have netted the owners $100 million to $200 million each after taxes. (Providence Equity Partners is a fourth owner.) “Is it really worth it … at the expense of losing control over your own destiny?” he said. “We think the networks are unsure of the answer to that, which has delayed a resolution to the Hulu sale. We also think there is a decent likelihood the networks will abandon the sale process for this reason.” Bank also raised the point that the networks might have a better opportunity to use Hulu to “build greater brand equity” for themselves as owners, rather than having an outsider whose interests might be less aligned with theirs in control.
Syfy’s fifth annual Digital Press Tour this week reinforced what regular attendees of this confab have known for years: It is one of the most efficient and innovative publicity and promotion events in the business. One might suggest that press conferences in the digital age that are specifically targeted to Web writers, dedicated bloggers and epic tweeters ought to take place online. But watching attendees interact with Syfy’s talent and executives throughout the one-day tour only reinforced the value of in-person contact, especially in a media-driven environment that encourages instant and continuous communication between all participants. The digerati were asked to tweet as often as possible and update their blogs and Web sites throughout each of the day’s nine panels, and to further talk with, interview or photograph the talent once each panel concluded. (Many of those tweets can be found at #SyfyTour.) They were also invited to shoot video throughout each panel and immediately upload it to their various online platforms. The tour included sessions with “Being Human” stars Sam Witwer, Sam Huntington and Meaghan Rath; “Face Off” host McKenzie Westmore and judge Ve Neill; “Sanctuary” stars Amanda Tapping and Robin Dunne, and “WWE Smackdown” wrestlers Wade Barrett and Alicia Fox. There were also panels for Syfy’s December miniseries “Neverland” (a prequel to “Peter Pan”) with cast members Rhys Ifans, Anna Friel and Charlie Rowe; and upcoming one-shot holiday episodes of “Eureka,” “Haven” and “Warehouse 13” with the stars of those shows, Colin Ferguson, Emily Rose and Eddie McClintock, respectively. The day also included panels for two upcoming series: a supernatural thriller titled “Lost Girl,” about a conflicted succubus, and an observational reality show titled “Monster Man,” which will chronicle the goings-on at a family-run monster movie prop shop in Hollywood. The biggest news of the day was the announcement of a wild new competition series called “Total Blackout,” which is based on a hit Danish series in which people compete in challenges in complete darkness. (YouTube has some particularly attention-grabbing clips from the Danish show.) Syfy’s adaptation is hosted by former “Family Matters” star Jaleel White, who was also at the tour. Watching all of this play out was similar to looking around ballrooms during Comic-Con panels and seeing hundreds of fans busily tweeting, emailing and uploading messages, photos and videos right from their seats. The difference, of course, is that most of them have no direct contact with the panelists on hand and their exposure to them is brief. In most cases there is no relationship-building between communicators and subjects, even in the short term. The Syfy DPT experience excitingly moves beyond that. It is a model for future information gathering and processing of its kind. It is also a prime example of a television publicity event that a network’s talent actually wants to participate in – even though they have to travel to get there, this year to Loews Royal Pacific Resort at Universal Orlando. In fact, by the end of Syfy’s lavish opening night dinner Sunday -- a “Destination Truth”-themed luau hosted by Syfy president Dave Howe, programming chief Mark Stern and “Truth” host Josh Gates -- talent from several of its shows that had planned to leave Orlando the following day as soon as their panels were finished were scrambling to arrange their schedules so that they could stick around and participate in additional activities. Those activities included a post-luau visit to the Universal Studios theme park for guided tours of its Halloween Horror Nights haunted house exhibits; the chance to ride the park’s newest roller coaster, the Hollywood Rip Ride Rockit (which begins with a 90-degree vertical climb that rises 17 stories above the park and features digitally programmable music for each individual seat); and the spectacular final event of the tour: a private party at The Wizarding World of Harry Potter. Tellingly, at each of these events talent would routinely invite the digerati to join them on rides, for drinks or to share tables at meals. This may not seem like such a big deal, but throughout my career I’ve heard more stories than I can remember from network and studio publicists about how difficult it can be to load actors into limos for short rides from their homes to make brief appearances at parties or press conferences (not to mention spending extended periods of time with reporters). The actors and producers who have participated in Syfy’s five digital tours to date have had to travel as far as Vancouver, Colorado and Orlando and then spend two or more days in those locations. They have always done so without complaint, and this year was no exception. But don’t take my word for it. When I talked with Colin Ferguson at the opening night luau, he told me that with his long-running series “Eureka” coming to an end, he was going to miss attending Syfy’s innovative publicity and promotional events as much as he will making the show itself.
I was recently asked what next year has in store for the media advertising industry. Predicting the future is a fool’s errand, but my gut is telling me that if 2011 was the year of mobile, then next year may be the year when television gets the limelight. Here’s why: Apple TV arrives. The big product announcement of 2012 could be that Apple is getting into the television business. This would mean that televisions will truly be part of our digital media ecosystem, interacting seamlessly with Apple’s other devices like the iPhone and iPad. The Apple TV of my dreams will have a Siri-enabled voice interface that makes finding, recording and watching your favorite television shows a breeze. This will solve perhaps the biggest problem with TV today, namely that there is so much content that it is often hard for consumers to discover it. Apple TVs would also include a front-facing camera for making FaceTime video calls to friends and family, further embedding television into our lives. TV ad tech arrives. In 2012 it will finally be possible to serve television ads based on household data to over 15 million homes. Also, thanks to companies like Simulmedia, marketers will be able to target audiences on TV much as we have been able to do online. In 2012, television advertising will join the 21st century. Social TV gets hot: Look for social TV startups like GetGlue and Bluefin Labs to be very hot in 2012. I would not be surprised if at least one of these types of companies exits at a high valuation next year. TV buyers expand their reach. You know the world has changed when TV buyers say that television should just be called video. No matter where it is watched (TV, online, tablet or mobile) the advertising in television programs will largely be bought by TV buyers. This is one of the reasons why the GRP will become a more common metric online. Outside of television, I predict that there are going to be many more fascinating developments next year, including: Magazines go tablet. Time Inc.’s decision to distribute all its magazines through the iPad starting January 1, 2012 will be a smart one, helping to ensure that the company is still around decades from now. I also expect other magazine publishers to announce far-reaching plans for tablets in 2012. With over 25 million iPads in market, there’s enough scale now to support established titles. Conversely, new tablet publishing ventures will fail. I don’t know if it will be News Corp’s The Daily, Aol’s editions or some other upstart effort -- but I expect that, sadly, at least one of these new ventures will fold in 2012. Unlike online, where the cost of entry is low and driving traffic is relatively cheap, we’re going to see that tablet media demands a level of brand awareness and production quality that only established publishers can deliver. Social dominance. The social networks will be dominant in time spent online. By next year Facebook and Twitter will have a combined one billion active users making and curating content for free. It will very difficult for the big portals to compete in this environment. Online consolidation. 2012 will be the year when we’re going to see the VCs and private equity companies make big deals happen, some of which will be shocking. With some of their investments growing long in the tooth, many of the older, banner ad-driven businesses will begin to consolidate. Big ad networks may merge with portals or with each other. Media agencies remain vital. A never-ending supply of media options and technologies, along with steady growth of television, will make agencies more vital to marketers than ever. Over the past decade, agencies have proven their ability adapt to client need by adding services like search and social media. The media agency investment in services, technology and people will continue. Those are my predictions. What do you think will happen?