Archive for March, 2009

Newspaper Industry Makes the Front Page

Monday, March 30th, 2009

The Ann Arbor News in Michigan is going the way of the Rocky Mountain News and the Seattle Post-Intelligencer: by July, it will cease to exist in print form. The list of at-risk newspapers is growing at an alarming rate, with more bad news recently coming from the Tucson Citizen, Charlotte Observer, Christian Science Monitor and three Michigan papers. In fact, Paper Cuts, a website tracking newspaper layoffs, reports that 120 newspapers in the U.S. have shut down since January 2008. Worse still, staff that are retained as newspapers are downscaled and digitized are still forced to take a pay cut.

The challenges that newspapers face are very real. The demands of a 24/7 news cycle make accessing the news via the Internet and smart phones an easier, more efficient choice. Advertising, already diminished in the recession, is increasingly shifting to the Web. The success of Monster.com and CraigsList.com has taken away the need to turn to the newspaper for listings for things like jobs and houses. The pull of the Internet may ultimately prove too strong for traditional papers to resist against, but the persistent closures and layoffs in the newspaper industry leave me troubled for a variety of reasons.

This past weekend, I was in Washington D.C. and made a visit to the Newseum. The Newseum is a relatively new museum that is completely dedicated, as you might imagine, to the history of news. While there, one major thing stuck out to me in light of the recent closures of many of our nation’s newspapers: what medium will serve to document the events and happenings that shape our lives? Sure, there’s the Internet. But the headlines change every ten minutes and it’s not like I’d take a screenshot to commemorate an historic moment. I just think of the entire wall at the Newseum dedicated to the front pages of newspapers across the world reporting on the 9/11 tragedy. I think of the expansive room dedicated to newspaper reports chronicling every major event that has happened from the assassination of Lincoln to the Oklahoma City bombing to the election of our nation’s first African American president.

Are we right to let these newspapers fall idly by the wayside? Or should we be trying to save a medium that serves as a blueprint for the history books? Call me old fashioned, but I can’t imagine this historical coverage as anything but a big, bold newspaper headline.

Marketing Madness

Thursday, March 26th, 2009

It’s that time of year when Cinderellas dance, office pools make for make-shift stimulus packages and college athletes take center stage. Of course, I’m talking about March Madness. Situated perfectly between the end of the NFL season and before Major League Baseball gets underway, March Madness gives everyone a little hope that the winter blahs are behind us. But this year’s tournament has much greater significance to both sports fans and advertisers alike. Though spring is upon us, we’re still thick in the winter of one of the worst recessions in American history. And with all that this country is facing, businesses spending money on advertising during a national event of this magnitude is, believe it or not, beneficial.

With one or more members of the household out of work in so many families, cash becomes tight, making the forms of entertainment that once brought joy no longer prudent — or in many cases — possible. As a result, more families than ever find themselves turning to their television sets for the obvious reason that it does not cost them anything to do so. In fact, a Nielsen study found that Americans watched more than 151 hours of television a month — that’s up 3.6% from 2007.

Luckily, one of the best features of the tournament is that all of the games are covered by CBS, a station every household can receive. People everywhere regardless of their economic status can tune in and enjoy….which creates a perfect forum for companies trying to market their brands effectively.

So who’s top-seeded among the field of advertisers? Companies that sell essential products like food and water will benefit the most from advertising this tournament, because these are the products Americans still need and are most likely to buy.

Coca-Cola has made a wise decision by marketing their Coke Zero and Vitamin Water brands significantly throughout the course of the tournament. Vitamin Water is even the official drink of March Madness, making it the beverage of choice used during games. Items of their nature are less likely to be plagued by the struggling economy.

Contrary to what the bean counters might be saying, now’s the time to increase that marketing line item. And if you’re a company that is looking to ramp up your advertising when not many competitors are, marketing your brand during a significant sporting event like March Madness is the perfect opportunity. Not only will you increase your share of voice when many others have gone dark, you’ll also reap the benefits of connecting your company with one of the feel-goodest events of the year.

Mom-Based Marketing

Thursday, March 26th, 2009

Have you caught the new Goldfish commercial encouraging kids to go outside and get active? How about all the Mott’s commercials aired recently featuring Desperate Housewives’ actress, Marcia Cross, on how their apple juice and apple sauce is a good way to give children their daily source of fruits? It’s no coincidence that increasingly you may be seeing commercials and ads targeted towards moms and children. According to the New York Times, when times are tough, whatever merchandise consumers are still buying is purchased in the following order: first, for the children; then for mom; next, for the pets; and finally, for dad.

Apparently advertisers are following this same trend, in many cases expanding efforts around selling products aimed at children and mothers in an effort to increase market share. For example, Pepperidge Farm Goldfish recently partnered up with the Cartoon Network cable channel for a “National Recess Week” promotion, centered on encouraging school-age children to be more active. And after a ten year hiatus from television advertising, Mott’s apple juice and apple sauce returned to television in a campaign intended to convince mothers that those products are a good source of the fruit their children ought to eat daily.

Also pointing towards this mom and child marketing trend are a couple of soon to be announced agreements between the Walt Disney Company and two major marketers – J. C. Penney and State Farm. The Penney deal is centered on the popular “Hannah Montana” series on the Disney Channel, and also includes Disney Online, Radio Disney and Family Fun magazine. The State Farm campaign is focused on the Disney Channel and stars actress Selena Gomez of Wizards of Waverly Place in ads to help encourage safe driving among teenagers.

So what does this mom-based marketing trend all really mean? For one thing, amidst these challenging times and ever-shrinking budgets, more and more advertisers are choosing to focus all of their efforts on one demographic instead of trying to expand their reach. Is this a smart choice? Is it wise to ignore other demographics that still have value? It’s hard to say. One way to judge is to look at a brand that has managed to thrive during this recession.

While most companies are struggling to stay afloat, McDonalds’ profits and stock price are up, and business couldn’t be better. So what’s their secret recession-proof sauce? According to a CNN interview with McDonald’s Company Executive, Karen Wells, “There’s two things that’s really attributed to McDonald’s success. First and foremost, listening to our customers. It’s menu variety, it’s value and affordable prices at McDonald’s and the convenience that only McDonald’s can offer. The other piece is our system alignment around one plan. You know, under the arches we have a term called the three-legged stool. It’s our franchisees, our suppliers and our corporate staff working together. Those are the two things that have worked for McDonald’s and our success.”

If advertisers can take any lesson away from McDonalds it seems to be that success during a recession means working together internally to know your audience and cater exactly to their needs. So if it’s the moms and children of the world who are watching these commercials and buying these products, then these advertisers might be onto something. And while I can’t predict when the economic situation will finally become brighter, I can predict many more kid-friendly commercials in our future.

HARO Turns One

Friday, March 20th, 2009

HARO, the (free) upstart rival to ProfNet that connects reporters with expert sources, turns one year old today and the results are noteworthy: 10,000 participating journalists, 25,000 posted queries, and 70,000 expert sources. More than anything it’s a testament to the incredible potential of social media to virally spread an idea and create a vibrant community that connects strangers who share a common interest. The outcome is a nimble, Web-based entity capable of challenging an industry leader.

The success of HARO lies in its ability to connect with professionals in a personal way via Twitter, Facebook, blogs, email and more. Reporter queries aren’t emailed out anonymously – each adopts the quirky personality of founder Peter Shankman and engages HARO member with contests, giveaways, and calls to action. Similarly, PR professionals aren’t just using HARO to benefit their clients but also to interact with their fellow peers. As a result, HARO members, by and large, are passionate, outspoken advocates of the service. Want proof? Yesterday, more than 6,000 members pledged to post “Get Sourced. Get Quoted. Get Famous. www.helpareporter.com” on all their social media feeds in response to a challenge from Shankman to grow membership by 10,000 in 24 hours.

HARO is one of the best examples out there of an organization that successfully harnessed the power of social media to launch a small idea into a big success. It remains to be seen, however, whether it is a sustainable practice. What happens when HARO grows too big for itself? Members may not be as favorable towards HARO when they discover that there are suddenly 100,000 experts competing to be sourced in just 75 stories a day. That day is fast approaching and when it comes, members may ultimately turn to the same social media networks to voice their displeasure.

Cramer vs. Stewart

Monday, March 16th, 2009

Has anyone seen the carcass of Jim Cramer?

By now, you’ve probably seen, or at least read about, the much anticipated and reported on public lynching of the CNBC “Mad Money” host. If not, you can see all three parts of the humiliation here. For proof that tons and tons of people watched it, click here.

(And, by the way, a little PR advice for Cramer – I know it’s too late, but maybe he should’ve asked me beforehand – next time you’re weighing whether or not to go before a live studio audience to be “interviewed” by a quick-witted host who isn’t too concerned with playing it down the middle, DON’T GO. And if you ignore that advice, please at least show up with some sort of defense.)
Beyond the primal joy humans seem to take in watching someone else being eviscerated, the showdown raised several interesting questions:

For Cramer, was it a crushing, potentially career-ending embarrassment?
For me, the biggest question is, why would you take any of these people seriously? Anyone who hosts a talk show, whether it’s Jon Stewart or Jim Cramer or Rush Limbaugh or Angelo Cataldi, is, to a certain extent, full of crap. Trust me … I host a talk show. It would be wonderful if talk shows existed to shed light on topics like the economy, politics and sports. But they don’t; talk shows are tabloids on steroids – most exist to entertain. If they deliver a little information along the way that’s fine, but you need to know that when push comes to shove, they are going for ratings. Ratings = job security. Period.

When Stewart steps over the line, his excuse is the same as Cramer’s – “Whaddya want from me? I’m an entertainer.”

Cramer has always been dangerous because people take him seriously. While his goal is clearly to entertain, some people bet their life savings on his “advice.” Stewart hides behind the fact that he started as a comedian, but he is increasingly seen as an important voice on important topics. For a growing number of people, the Daily Show is their go-to source of news.

For me, the biggest question is, why would you take any of these people seriously? Anyone who hosts a talk show, whether it’s Jon Stewart or Jim Cramer or Rush Limbaugh or Angelo Cataldi, is, to a certain extent, full of crap. Trust me … I host a talk show. It would be wonderful if talk shows existed to shed light on topics like the economy, politics and sports. But they don’t; talk shows are tabloids on steroids – most exist to entertain. If they deliver a little information along the way that’s fine, but you need to know that when push comes to shove, they are going for ratings. Ratings = job security. Period.

When Stewart steps over the line, his excuse is the same as Cramer’s – “Whaddya want from me? I’m an entertainer.”

Cramer has always been dangerous because people take him seriously. While his goal is clearly to entertain, some people bet their life savings on his “advice.” Stewart hides behind the fact that he started as a comedian, but he is increasingly seen as an important voice on important topics. For a growing number of people, the Daily Show is their go-to source of news.