PepsiCo, Kraft Foods and Nestle Purina are among major brands participating in a pilot test of 3GTV Networks in nine Bloom grocery stores in the Washington, D.C. metro area. The in-store media platform -- being touted as a breakthrough in the booming shopper marketing arena -- enables measurable digital communications to consumers throughout the store, extending the television model into the retail environment and making retail a plannable media destination, according to its creator, Allendale, N.J.-based Automated Media Services, Inc. (AMS). The network actually consists of two platforms, enabled by a total-store infrastructure or "digital backbone" that combines cloud computing technology and electrical wiring, explain AMS chairman/CEO Bob Wolinsky and president/COO Greg Ralko. The two platforms are storewide "always-in-sight" LCD screens, and smaller "shelf-edge messaging" screens positioned in front of brands that want additional, more promotionally oriented vehicles for their products. The "always in sight" screens are positioned at research-determined intervals within each aisle (overarching the aisle via attachment to the gondolas on either side) at heights in shoppers' line of sight. All of the continuously running marketing content shown on these is synched storewide and tied into the store's overall music/ announcements audio system. Typical messaging is done in category "blocks." For example, a dairy block might show a segment promoting Bloom's organic dairy products/ area, followed by one showing Kraft cheese on a pizza, followed by a "Got Milk" or dairy-related nutrition/health segment, notes AMS VP, content Dan Seliger. This storewide content is designed to drive awareness of, and traffic to, specific areas of the store and specific brands or brand areas. However, content is keyed to "relevance" and "value" for the shopper, and the experience is managed so as to be "discreet" and "non-intrusive," according to Seliger. For example, storewide voiceovers to the audio/visuals are limited, and the store's music track is suppressed when a voiceover comes on. Brand messaging is not allowed to include brands' own music/jingles, and all content has to adhere to "rules," including technical/creative guidelines such as image size, he reports. While audio, as well as visuals, are possible on the individual-brand shelf-edge messaging screens -- which are about four inches to seven inches in size -- pilot brand participants currently are not employing audio on these. The recommended best practice would be to activate audio on these only in response to interaction by a shopper, the executives note. The shelf-edge, OLED-screen units are touchscreen enabled, letting marketers interact with consumers in a variety of ways (offering options to access more information on a particular product or variety without having to go online, for example). The communications are two-way, meaning that AMS is gathering data as consumers interact with the units. Although these capabilities aren't yet being employed by pilot participants, the shelf-edge units can also enable interfacing with cell phones for social networking or driving consumers to a Web site, using on-screen QR codes to let consumers generate digital coupons, and other marketing/promotional applications. "We can plug in many different capabilities," says Ralko. The number of shelf-edge screens within a given aisle will be determined by individual retailers. In the pilot stores, these screens are being limited by category, and generally don't exceed three per aisle, according to AMS. Might consumers feel somewhat overwhelmed by multiple screens overhead and on shelves? AMS maintains that the overall experience is actually less cluttered and confusing for the consumer than traditional POP messaging methods, as well as more effective for the brands and retailers. According to Wolinksy, extensive research during the networks' eight-plus years of development has confirmed consistently that the media system strongly resonates with the 18-to-34 demographic, while older consumers "don't object" to it. Extending At-Home TV Metrics Into the Store The "always-in-sight" system works on a rating-point model that enables purchase of in-store air time using the same metrics as at-home television. Once the infrastructure is in place within a store, devices on carts are used to measure shopper flow patterns precisely throughout the store during a sampling period, and those are mathematically translated into delivery metrics. The metrics remain valid as long as the same store layout remains in place. This model also enables local television networks to use the "always-in-sight" in-store media to reach consumers. In the pilot, Washington, D.C., CW affiliate WDCW is trading airtime with the 3GTV network on an equivalent-audience delivery basis. While WDCW is using the platform for "tune-in" messaging (driving awareness of specific programming) during the pilot, it also can be used to offer a station's advertisers the in-store exposure as part of their media buys. The station's or advertiser's messaging must be adapted to fit 3GTV's content/graphics rules. Reaching shoppers at point-of-purchase is "the quintessential" goal for all marketers, and stores are the "ideal destination" for using television, says Wolinsky. However, employing the television model in-store has up to this point been impeded by inability to provide accountability on video playing and viewing and audience delivery metrics. "3GTV is the first leap of television into the in-store, out-of-home environment," he says. Brands envision the networks as a more effective way than traditional in-store methods to promote product launches, which more than 60% of the time first come to consumers' awareness when they see new products in the store, notes Ralko. In addition, product cross-promotion logistics are considerably easier with the screen-based digital media than with traditional, paper-based in-store promotions, he says. One pilot brand participant summed up expectations. "We are extremely impressed with the capabilities 3GTV can deliver, and are anxious for 3GTV to build scale quickly," said Geoff Kuzio, VP with the PepsiCo, Delhaize America Customer Team. (Bloom is one of Delhaize America's retail banners.) AMS (which foots the costs for the installation of the advertising-supported networks) also cites other advantages of the networks over traditional shelf-talkers and other promotions. One is the ability to provide proof of 100% store compliance in terms of activation of displays and audience reach. (The videos' continuous play, as well as viewership metrics, are verifiable.) In addition, the digital marketing communications' content can be updated at any time at relatively low cost, versus the time and expense involved in creating and implementing paper-based promotional materials, says Wolinsky. Furthermore, digital is "greener" than soon-discarded paper shelf-talkers and promotional signage, he adds. According to Booz & Company studies, CPG brands' investments in shopper marketing continue to grow exponentially, now representing an estimated $35 billion annually. Research shows a majority of CPGs citing shopper marketing as their number-one investment, and projecting, on average, 5%-plus annual increases in this spending.
More studies reveal cord-cutting isn't a threat to traditional TV distribution systems -- yet. Just 3% of subscription TV consumers are "cutting the cord" of TV distribution systems -- cable, satellite, or telco -- per a survey from consumer researcher J.D. Power and Associates. Of those surveyed, young adults 17-34 are the most likely to cut the cord -- 6% say they no longer subscribe to a residential television service. Of those ages 35-46, 4% are going without traditional TV service; for older consumers 47-65, the number is 2%. Frank Perazzini, director of telecommunications at J.D. Power and Associates, stated: "The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options." He adds: "However, with 52% of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum." More than one-fourth (27%) of video service customers watch videos on a handheld mobile device such as a music player, mobile phone or tablet, according to the study. Mobile phones are still the most commonly utilized handheld mobile device for watching videos -- 15%. Tablets have a 12% video use rate among customers. Music players also currently hold a 12 percent share. J.D. Power says video service satisfaction is above average when customers use mobile devices and music players to access content. Overall satisfaction with pay-to-view video service providers averages 743 on a 1,000-point scale. Netflix and Redbox perform particularly well in satisfying pay-to-view customers. The study, done in April 2011, looked at 6,815 U.S. homes that evaluated pay-to-view providers, including Amazon, Apple TV, Blockbuster/Blockbuster Express, Google TV, Hulu/Hulu Plus, local video stores, Netflix and Redbox.
All the recent activity at Kraft Foods finally caught my fancy this morning, quite a few days later and many dollars shorter than it evidently has reengaged Nelson Peltz' affections. The activist investor, who once had a 2.4% stake in the company, agreed not to take a controlling interest after it added two new board members that he supported, as Financial Timesreports. He "began shaving away his Kraft stake" after the company started pursuing Cadbury, which it eventually bought, last year. Peltz has re-accumulated, as StreetInsider.com puts it, a stake in Kraft Foods through his Trian hedge fund "and he didn't want the world to know about it." Could be that he saw some of what Julie Jargon sees in the Wall Street Journal this morning: A resolve "to shuck its stodgy image and adapt decades-old brands like Miracle Whip and Macaroni & Cheese to the denizens of Facebook and Twitter." Presumably, that's how you reach the young 'uns nowadays. At least Kraft CEO Irene Rosenfeld thinks so. "Schmoozing with customers online and reaching out to younger ones are key" to her efforts to get the company's legacy brands off the schneid, Jargon reports. But it's also changing its spots, so to speak, in television ads that shuck old-time wholesomeness for a little racy banter. A spot for Athenos hummus has a "YiaYia" (Greek grandmother type) telling a young hostess that she "dresses like a prostitute," for example. Popular Facebook and YouTube presences followed. (Don't bother filing a complaint; Greek cultural groups have you covered.) And, Jargon reports, Miracle Whip -- no, it doesn't go that far -- has been defying conventional wisdom by airing spots that feature people who don't like it. Adweek's Tim Nudd seems absolutely fixated on work for good ol' Mac & Cheese lately in "Ad of the Day"/"Adfreak" columns. Perhaps that has something to do with Crispin Porter + Bogusky being its agency. Last month, Nudd lauded two new TV spots that built on the theme that parents can't help stealing their kids' Mac & Cheese. (But really! A kid calling the cops on his dad?) Then there was the Twitter game called "Mac & Jinx" that's based on the game where two people say the same thing, or make a similar sound, at the same time. Let's not overlook the billboard for the pasta that claims: "The Most Fun You Can Have With Your Stove On." Ooh là là! Over at Age, we've seen a flurry of reports about accounts in review and rebooted campaigns lately. Stride Gum launched a new campaign this month starring extreme sports star Shaun White. The brand, which it acquired with Cadbury, has been getting chewed up by the competition, EJ Schultz reports, with sales down 17% for the year. "Gum is social currency, it just is," Kraft Foods senior director for U.S. gum marketing Maurice Herrera tells Schultz. And so it needs to constantly "entertain and even look to ways of reinventing ourselves so we maintain [consumers'] loyalty and interest level." Maureen Morrison, meanwhile, reported on June 9 that "in yet another agency shakeup," Triscuit creative has gone into review. Euro RSCG continues as the digital and social media agency of record for the brand, however. A few days earlier, Morrison and Schultz combined on a piece reporting that WPP's Taxi had won the account for Mio, "a first-of-a-kind liquid-water enhancer that the company has said represents its 'biggest investment in a new business in the last decade." Mio "Liquid" is reportedly Kraft's first new brand in 15 years. Tony Vernon, evp-Kraft Foods North America, told analysts in February that "we believe Mio represents the future of how people will drink ...." You can meet it on Facebook to learn how "it allows you to create up to 24 eight-ounce drinks from the palm of your hand." Some bottom-line figures, courtesy of Jargon: Mac & Cheese sales were up 10% in the first quarter, Athenos hummus rose 11% between March and May. As far as Peltz is concerned, he ain't saying nuttin' about his renewed interest in the company. For now.
In what likely is the biggest deal yet since Turner Broadcasting tried to develop an ill-fated place-based video network with McDonald's in the early 1990s, Taco Bell has agreed to install an ad-supported video network throughout its 5,600 locations nationwide. The deal with Indoor Direct will provide free Wi-Fi access to diners, a move that is expected to convert many drive-through customers into in-restaurant dinners, and boost the amount of time and items they order in the restaurants. The deal is a boon for Indoor Direct, which is focused exclusively on building out a network of quick-service restaurants, and currently has a base of 1,036 locations, mostly franchisees of big chains including Denny's, Carl's Jr., Hardees, and Wendy's. The addition of Taco Bell's 5,600 locations, which are expected to be fully installed by 2015, will reach about 48 million customers each month. It will also transform Taco Bell's restaurants from a simple dining experience into a multimedia advertising platform, including large silent video screens at the cashier lines, and even bigger screens with audio in the dining areas, as well as Wi-Fi, which will include opening browser advertising avails for brands who want to sponsor it. Currently, Indoor Direct's advertising roster includes financial services brands like Discover Card, and entertainment brands such as Turner Broadcasting, Fox, and Sony Television. The content mix on Indoor Direct's Restaurant Entertainment Network is similar in format to conventional television, featuring snippets of lifestyle, entertainment, sports, and music programming provided by blue chip content providers such as the AP, the NFL, the PGA, NASCAR, and the major record labels. Restaurant patrons are expected to a mix that includes about 70% content and 30% advertising, and Indoor Direct's most recent Nielsen research indicates the average patron spends about 25 minutes watching its programming. Indoor Direct executives said they did not have research on what the impact of offering chain-wide free Wi-Fi to Taco Bell's customers might do to average dwell time in the restaurants, but they said they expected it to increase and that the more time people spend inside fast-food chains, the more likely they are to purchase more products. The Wi-FI isn't just a value-added gimmick, but is an integral part of the Restaurant Entertainment Network's programming, many elements of which enable users to interact with content to play games, enter polls, and even download content, such as songs from iTunes.
The #1 red soda brand Big Red is returning to TV for the first time in more than 25 years, as part of a new "Tastes Good to Be Different" integrated campaign. The campaign celebrates the nearly 75-year-old brand's "indescribable flavor" and its fans, who "like being different." (The advertising's sub-tagline: "Taste It. You'll Get It.") While Big Red is distributed in 44 states, its strongest markets -- in Texas (corporate headquarters is in Austin), Louisville, Ky., and Southern Indiana -- hark back to its roots, says VP, business development Thomas Oh. The campaign, focused in seven markets -- Chicago, Cincinnati, Cleveland, Columbus, Houston, Indianapolis and Tampa -- coincides with and supports a sampling push to build awareness for expanding distribution in those markets. Targeting the 18-to-34 demographic, the campaign spans social media, out-of-home and in-store promotions, as well as sampling and television -- all of which feature a refreshed logo/package design. "The packaging had not been updated since 1997, and consumer feedback was that it was somewhat dated and cartoonish and didn't look very premium," says Oh. The new look includes a logo featuring a sleeker "splash" motif backing the now-shadowed Big Red name, as well as a new product description line: "So sweet, so smooth." (Replacing the brand's traditional "Big Red Instead Since 1937.") The campaign's two TV spots will begin airing on network cable in the target markets on July 11 in rotation, in two three-week flights. But the brand's Facebook fans are getting sneak previews of the spots. The first spot, posted on Big Red's Facebook page on June 28, features a Robin Hood-like character who uses Big Red to start street parties. The second (to be released online next week), was shot at Hollywood's famous Whisky A Go-Go club, and follows a high school music student who becomes a rock star by deriving inspiration from Big Red. The commercials were produced by GeniusRocket. The agency uses a crowd-sourcing video production model that enabled Big Red to get more than 30 concepts and full production of the spots for "a fraction of the cost of traditional advertising agencies," reports Oh, whose background includes PepsiCo marketing positions. GeniusRocket sent a brief and some concept guidance to select creative agencies within its extensive network, and Oh interacted with these during their process to help them ensure that their concepts and concept development were on target. "With no TV ads for 25 years, we had no TV creative history for them to reference," so the "curated" crowd-sourcing model used for Big Red -- as opposed to just sending out a brief with no interaction during the creative process -- provided the right balance of creative freedom and guidance, Oh explains. He and GeniusRocket narrowed down the delivered concepts to two, and worked to tweak and perfect those prior to production. On the social media front, Big Red currently has about 85,000 fans who have come to the brand organically, and has continued to add about 1,000 per week with little active effort on the brand's part, Oh says. However, the brand is now pumping up Facebook efforts. Having just begun distribution in the Baltimore/Washington, D.C. market, Big Red reached out to Facebook fans to get volunteer ambassadors in the area. Those fans were sent six cans of the soda -- one for themselves, five to give to friends -- with the request that they take photos of the gifting occasions and post them on the Facebook page. Those "guerrilla" efforts are supporting the sampling efforts of the soda's distributor for the region, Pepsi Beverages Company. On a broader scale, Big Red is employing Facebook advertising in the seven markets to target specific fans, with particular emphasis on those who have moved from its biggest markets into these regions, and may not be aware that Big Red is available in their new areas, says Oh. Other targeting will include serving up ads to fans based on specific interests in their Facebook profiles (for example, being into barbequing, because Big Red and BBQ are a popular combination). Big Red also has teams of "guerrilla" brand reps out in the seven markets distributing samples in parks and other community hubs and at events such as festivals and barbeques, Oh reports. Privately owned Big Red, Inc. is among North America's top 10 beverage companies. It also markets Diet Big Red, Big Blue, Big Peach, Big Pineapple, NuGrape and products under the Nesbitt's brand. Its largest distributor (about 75% of volume, according to Oh) is Dr. Pepper Snapple Group. Independent Bottlers, as well as Pepsi Beverages Company, are its other distribution partners.
Is midday the best time to run advertising on mobile phones? According to the latest monthly data from Jumptap, that's when ad interaction rates peak on the mobile ad network. Conversely, click-through rates are at their lowest during the morning commute and early hours of the workday. Separate research has shown that mobile data use -- especially mobile video viewing -- takes place throughout the day as people "snack" on handheld media when they get a chance. Around lunchtime is one of those times, helping to boost ad engagement. The Jumptap data for May also showed that mobile ads increasingly feature calls to action other than clicking through to a branded Web site. More than a third (34%) of performance-based campaigns included a click-to-call option or download offering rather than directing the user to a Web property. Separate monthly research released Thursday by rival mobile network Millennial Media provided further detail on the types of calls-to-action employed in mobile campaigns. Overall, more than half (54%) drove traffic to a company Web site, 28% to an application download, and 18% to a custom landing page. When it comes to post-click options in ads, the most popular were click-to-call (used in 42% of campaigns), an invitation to sign up for an offer or service (34%), retail promotion (25%) and some type of social media feature. Use of social media in ads to acquire followers or gather feedback on movie releases or new product launches was up 36% in May over April. Marketers were more frequently adding a store locator to post-click options. This feature was included in 22% of campaigns in May, representing a 48% monthly increase. Among targeted campaigns on the Millennial network, nearly half (48%) were locally tailored, while 38% were aimed demographically and 12% behaviorally. The company said education-related advertisers, for instance, used demographic targeting to reach so-called Millennials about degree and certificate programs, while financial services companies ran ads for student loans and credit products geared to college students. On the Jumptap network, Android continues to gain share. The Google smartphone platform generated 42.4% of ad requests -- up 3% from the prior month -- while Apple iOS was roughly flat with a 30.3% share. Rounding out the top three was Research in Motion's BlackBerry OS, at nearly 21%. But that proportion was down 4 percentage points from April. Information released Wednesday by InMobi showed a similar pattern, with BlackBerry's share of impressions dropping to 13.8% in May from 18% in February. Android's share, by contrast, grew from about 30% to 30.5%, while iOS jumped from 15.5% to 25.4%. According to Nielsen's May survey of smartphone users in the U.S., 38% own Android devices, 27% have an iPhone, and 21% have a BlackBerry phone. While Android has overtaken iOS in the last year, the Apple platform enjoys the highest average click-through rates of all mobile operating systems, according to Jumptap. Its findings were based on some 11 billion ad requests made across its network reaching more than 83 million unique users. Millennial says it reaches 92 million U.S. mobile users and 142 million worldwide.
Hilton Garden Inn is launching an integrated ad campaign developed to speak to today's travelers through shorthand and acronyms. With the popularity of texting and other social networking, the "We Speak Success" campaign employs the use of terms from guests' business and social lives: EOD, ROI, TCB and B&B, says Judy Christa-Cathey, vice president, global brand marketing, Hilton Garden Inn. "Our goal is to connect with them so they understand who we are, what we stand for and the experience we can offer them as a traveler," Christa-Cathey says in a release. "The language of today's traveler is unique, and Hilton Garden Inn wants to communicate with the traveler in ways that will build familiarity and create emotional connections that lead to lasting relationships." The campaign will be executed through a variety of media outlets with a strong focus on print in publications such as The New York Times, BusinessWeek, Men's Journal, Shape, Budget Travel, More and USA Today. The campaign includes non-traditional placements via double-decker bus wraps in New York City and Washington, D.C., Delta and United Airlines in-flight TV spots and gate displays, and a series of advertorials in Men's Journal. Other components of the campaign include public relations, social media, and an iPad/iPhone app later in 2011. A Facebook app allows users to have a little fun with the over-use of acronyms and business jargon in the form of electronic greeting cards available on Hilton Garden Inn's Facebook page. The "Life's Ultimate To-Do List" contest will provide consumers with the opportunity to fulfill the number one priority on their ultimate to-do list. The campaign comes on the heels of a $25 million global rebranding initiative Hilton Worldwide launched in March for its HHonors loyalty program. Another Hilton brand, DoubleTree by Hilton, in May launched a multibillion-dollar, year-long, global rebranding initiative.
There is much more video watching on iPhones than other smartphones. U.K.-based media researcher Futuresouce says 64% of iPhone users watch video as opposed to 32% of other smartphone users. Alison Casey, head of global content at Futuresource Consulting, says brand loyalty has been shown to be particularly relevant to iPhone owners. And that extends to their entertainment/video usage. Casey says 54% who intend to commit to the Apple brand also utilize their mobile apps. Entertainment content usage is a key component of smartphones -- with social networks and video sites pushing that usage. In the U.S., Futuresource cites Facebook, Google and YouTube as key instigators of Internet and video content. In the U.K., big players are Facebook, Google and BBC. Casey says 33% of U.S. mobile users have smartphones and about 25% in the U.K. In three years, she says both territories will grow to 75% smartphone penetration. User-generated content continues to account for the majority of video watched online via mobile devices, as well as viewing professional TV and movie trailers, short-form content and music videos. Overall, Casey said there were 10 billion app downloads in 2010, amassing $4 billion in revenue. "Gaming is the main driver for app downloads, across all four territories and 65% of smartphone owners regularly playing games on their phones. This is closely followed by social networking and music, with more than 40% downloading social networking Apps across all territories." Apple iPhone users are downloading the most games and most frequently paying for content. One in three are making mobile app purchases compared to other smartphone users and one in ten compared to BlackBerry and Android users. The recent research was drawn from 2,500 respondents, including consumers as young as 12.
The advertising industry's focus is dramatically shifting. Just a few years ago, ad buyer options were limited to print, mail, radio and TV advertising. Today, few campaigns can be considered even remotely relevant or complete if they don't include online, video, social, mobile and more. This is putting a lot of pressure on both advertisers and publishers to create successful online advertising campaigns and programs with measurable return on investment (ROI) and visibility into exactly where ads appear. Online video viewership is reaching new highs each month, presenting a perfect opportunity for media buyers to tap into the massive video audience. New research from Nielsen revealed that during April 2011, Americans streamed 14.7 billion videos, a record for the most streams in a month. In addition, non-premium video site YouTube's usage was at an all-time high in April 2011, with viewers watching 8.7 billion streams, up seven percent from the previous month. Yet most advertisers are still only comfortable buying the 10% of premium online ads that offer comprehensive data about their content. Media buyers commonly believe that online videos can't be measured with traditional TV metrics such as Target Rating Point (TRP) and Gross Rating Point (GRP). Recently, new technology has emerged that can provide the same rating points and can also accurately determine the content of the video, offering a chance for ad buyers to take early advantage of the 90% of non-premium online video inventory, yet to be claimed. Advertisers are also becoming more rigorous in how they target social or viral online video ads and are beginning to turn to more detailed data than audience impressions for measurement. Viral and social online videos often have a much higher niche audience engagement, with successful videos achieving several million views. This content is non-premium, and is therefore much more affordable to advertisers than expensive premium videos. Social media can also offer more detailed metrics than traditional TV advertising, such as how often an ad was passed along on social networking sites and social engagement including tweets, Facebook "likes" or comments. In summary, ad media buyers have been reluctant to buy ad space for online videos as this content hasn't offered the same level of transparency. As a result, ads could potentially run alongside inappropriate or controversial videos, with potentially devastating results for the brand. Now advertisers can have total clarity about online video content and total control through custom channels that allow them to select the exact online videos where they'd like to advertise. From specific subjects such as extreme sports or wine tasting, to exact channels such as ESPN and TNT, advertisers can now target their ads and engage audiences with the same precision for online video that they have with traditional TV spots. A clear opportunity exists for innovative media buyers to shift ad dollars from TV to online video, and claim these devoted, loyal and highly focused online audiences first.