Nielsen Holiday eShopping Index Up 20%

According to Nielsen//NetRatings, their eShopping Index, comprised of 120 representative companies that give analysts a better sense of online shopping trends, received 20% more visits in 2006 than in 2005.

You can read the whole press release HERE (will open PDF), but to me, this means that online shopping is really hitting its tipping point. More and more people are visiting retailers' sites online, and many are visiting stores like Ebay and Amazon that don't even have brick & mortar locations.

What does this mean? In plain terms, I believe this means that increasingly Web-savvy customers are tiring of the long lines and inconvenience associated with shopping in crowded arenas. While in some categories, there is no substitute for a consumer holding a product in his or her hand, many consumers just don't feel the need to go to a store before buying a product.

Interesting stuff - heavy implications for retailers ignoring their Web presence. You listening?

Talk with you later.

Garret

Emerging New Medium: Soccer Jerseys

Hi All -

I hope everyone had a wonderful holiday. I'm just getting back into the office and getting settled in, but I have a lot of things that have come across my desk that I wanted to post. I'll start with this one from the New York Times, written by Jack Bell. Apparently, United States Major League Soccer has just made the decision to allow the sale of advertisements - "mobile" billboards, if you will - on the jerseys of the players. The minimum cost of these ads is $500,000, but the benefits and value could be staggering. Not only are the ads adorning each player on the League's 13 teams, but advertisers are also seeing the benefits of the sale of thousands of replica jerseys, purchased in droves by the League's loyal fans.

http://www.nytimes.com/2006/12/25/sports/soccer/25soccer.html?_r=1&oref=slogin

What's next? I think I have an idea that could make millions if done properly - email me if you are curious!

Garret Ohm

More Online Buyers are Spending More. Much More.

New trends, as reported by the Center for Media Research...not surprising, though. This is what industry analysts have been saying would happen for years now...

Garret


More New Online Buyers, Spending More, Account for Holiday Spending Increase

According to a recent comScore Networks report on consumer online retail spending, online sales reached $12.42 billion during the period November 1st through December 3rd., an increase of 25 percent versus year ago. They conclude, hovever, that this gain is being driven by a 17 percent increase in the number of online buyers, coupled with a 7 percent increase in the average dollars spent per buyer.

Non-Travel (Retail) Spending (Online Spending Drivers Nov. 1 - Dec. 3, 2006 vs. 2005)
	Percent Change
E-Commerce Spending	25%
Number of Buyers	17%
Dollars Per Buyer	7%
Source: comScore Networks

Gian Fulgoni, chairman of comScore Networks, said "... comScore's data are confirming that... more consumers are becoming comfortable buying online. But, an accentuating factor is that online spending per buyer is also increasing - as a result of more buying transactions and an increase in higher-ticket purchases."

For the 2006 Holiday season, to-date, the computer hardware category has the highest average order value at $292, followed by consumer electronics, video game consoles & accessories, jewelry & watches, and event tickets.

Top Online Product Categories by Average Order Value (Nov. 1 - Dec. 3, 2006 vs. 2005)
Retail Category	Avg. Order Value
Computer Hardware	$292
Consumer Electronics	$153
Video Game Consoles & Accessories	$141
Jewelry & Watches	$128
Event Tickets	$123
Source: comScore Networks

That most of the higher-ticket categories also appeared on the list of fastest growing retail categories confirms that they are significant growth drivers for this year's holiday season.

Fastest Growing Online Product Categories, by Dollar Growth (Nov. 1 - Dec. 3, 2006 vs. 2005)
Retail Category	Percent Change
Video Games	85%
Jewelry & Watches	69%
Event Tickets	66%
Video Game Consoles & Accessories	51%
Consumer Electronics	37%
Source: comScore Networks

Mr. Fulgoni commented, "As broadband connectivity in the home continues to rise, we're seeing some online spending shift from work computers to home computers. Nonetheless, online buying at work still accounts for as many e-commerce dollars as buying from home. This could... (reflect) consumers' valuing of the workplace as the location where they're able to confidentially buy gifts online for immediate family members."

Holiday E-Commerce Spending by Location (Billion $,2006 vs. 2005)
Purchase Location	2005	2006	Percent Change
Home	$4.18	$5.44	30%
Work	$4.51	$5.36	19%
Source: comScore Networks

For more information, please visit here.

From The Why Didn't They Think of That Sooner File...

Here's an article from MediaPost (which, by the way, if you haven't subscribed to, you need to - www.mediapost.com) that talks about a new strategy that Whole Foods is testing out.

Massage In Aisle 7: Whole Foods Opens Spa

by Christine Bittar, Wednesday, Dec 13, 2006 5:00 AM ET

WHOLE FOODS MARKET WANTS GROCERY shopping at its natural supermarket chain to be associated with relaxation. It's testing the waters with an unusual spa-within-a-food store concept. Refresh--The Everyday Spa at Whole Foods Market opened last week in a store in Dallas, where the company is headquartered. The prototype is serving as a test bed for consumer acceptance of spas within grocery stores, before any rollout. Looking to create a tranquil environment within the giant-sized suburban Whole Foods Market, the Refresh spa is enclosed with a soundproof lounge complete with fountains, several treatment rooms, and a private balcony where lunch is served. The 4,500 square foot Dallas trial spa, like other stand-alone spas, offers a mélange of face and body treatments such as massages and facials, and has wellness consultants and nutritionists available by appointment for consultations. Also contained within the spa is a shop that sells treatment products, cosmetics, jewelry, shoes and organic, natural-fiber clothing. The move comes as other retailers, including Wal-Mart and Trader Joe's, have accelerated the introduction of natural and organic food offerings. This week, Safeway stores announced that it is extending its O Organics line into baby food and foods for children ages 6 to 12. Introduced a year ago, O Organics currently features staples such as milk, produce, meats and cereal. With the stated goal of luring customers from Whole Foods Market, Safeway--the third-largest U.S. grocer--also said it is introducing a new line for adults who are dieting or just want to eat more healthfully. It's still too soon to know whether enough consumers will be compelled to stop for a massage after carting baskets of rice cakes and organic granola up and down aisles. However, this isn't Whole Foods' first foray into the market for organics that aren't ingested. Five years ago, the chain launched its first Whole Body section, a store within a Whole Foods store specializing in health and beauty. It now features 152 of them within its 187-store chain. This past October, Whole Foods introduced a full-color cosmetic line called Mineral Fusion, picking up on the currently hot mineral makeup trend.

Digital Billboards

I remember back when I was a young lad. Billboards used to be so simple. Just your average amalgamation of steel and plywood. No muss, no fuss. All you had to do was to contract with a billboard company and they'd print out your graphics and have it up in a hurry. Depending on your budget and marketing objectives, you'd leave it up for one, two, three or more months. If you wanted to get really sophisticated, you rotated boards for maximum exposure.

Then, technology advanced significantly and they actually came out with rotating billboards. It gave advertisers many more low-cost and "tweener" options for outdoor advertising, and allowed the outdoor media companies to sell one location to 3 or 4 different advertisers. This gave them the ability to earn much more from just one billboard - it quickly offset the cost of implementation of these boards.

Well, the next generation of billboards is about to hit the scene: Digital billboards. Digital billboards allow advertisers to change their message often and are being credited with a renewed interest in the outdoor advertising. Computer-controlled LED displays offer many new opportunities, including the ability for companies to sell space in a time-share arrangement.

It's a pretty cool concept, really. Now, outdoor advertising may become even more targeted. For instance, the local Royal Farms store could buy space in the mornings to tout their amazing coffee selections. Then, during the day an advertiser such as Whole Foods could advertise their fully stocked salad bar - perfect for lunch! At night - the local Greystone Grill could do some awareness advertising for their concept in hopes of attracting the dinner crowd. NEAT!

Digital billboards are drawing mostly local advertisers, such as department stores and automobile dealers, but analysts expect more national clients to come around as the technology hits the tipping point. There is only a small number of these digital billboards on US roads so far. As I'm writing this, probably around 500, compared with nearly 5,000,000 regular old billboards.

Pretty neat stuff. I can't wait to see them around here!

Garret

Been A While

Hi Everyone - it's been a while since I wrote last. I'll get my feet wet by posting a little overview of some of the bigger marketing headlines in the past couple of weeks.

Feel free to comment!

Enterprise Rent-a-Car is going to be updating its logo and "look." Not changing - just updating, in an effort to keep the brand "fresh" and up-to-date.

According to the Radio Advertising Bureau, radio advertising revenue was up 6% in October. Pretty good stuff!

The Best and Worst Brand Extension Awards - From Brandweek - The American Red Cross emergency radio--featuring a hand crank, cell phone charger and a siren--was the clear winner as the "Best Brand Extension" in an online survey of 860 branding professionals co-sponsored by Brandweek and TippingSprung, a New York branding firm. Its nearest competitor was Pantone Eurolux house paints.

As usual, 2006 also produced a bumper crop of nutty extensions. A Diesel Jeans wine, "Chicken Soup for the Soul" pet food and a Lamborghini notebook computer rounded out the top five "Most Inappropriate Brand Extensions." Starburst soap, a Cheetos-flavored lip balm and Salvadore Dali deodorant stick were also ill-advised.

Toyota plans a HUGE launch for new Tundra pickup truck - It is planning the largest product launch by far in its HISTORY. This is their strong effort to grab the pickup and light truck marketshare from the Big 3.

The recent Sprint 2006 Sprint Productivity Survey of wireless phone users shows that 93% of wireless phone subscribers bring work-related mobile phones on vacation, 73% have achieved work-life balance (a meaningful daily achievement and enjoyment in one's home and working lives), and 67% are more productive today than two years ago. 84% of the respondents report technology is vital to their productivity, with 35% saying they could not accomplish what they do without technology.

Barbie Reinvented: Barbie is the top toy for girls this holiday season, according to a survey of parents by the National Retail Federation, and Mattel Inc. says sales are up for the first time in several years.

I'll write more later, promise!

Garret Ohm

Advertising Affects The Health of America's Youth

Here's a story that I read recently in the Health section of CNN.com - I thought you might enjoy, even though if you're an ad lover, you might not love what the study has to say.

http://www.cnn.com/2006/HEALTH/12/04/doctors.inappropriate.ads.ap/index.html

I do have to say, though, that we don't support advertising aimed directly at children. Especially not advertising that could lead to something damaging like drinking, smoking, etc. We agree - public health must trump capitalism when it comes to these types of issues.

What are your thoughts? I'm curious...

Garret Ohm

Is That Cookies I Smell?

Hi all -

I found this article in the San Francisco Chronicle about a new guerilla marketing campaign that is being attempted in some parts of San Francisco by the California Milk Processing Board. I thought it was pretty resourceful, and despite being potentially offensive for one or two asthmatics, it should be very effective and will resonate with the target audience (milk and cookie lovers!).

Check it out:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2006/11/30/BAGC2MMHUO1.DTL

Garret Ohm

Will This Work?

Some would look at the article below and think that Dominos Pizza has lost its marbles. Yeah, this promotion PROBABLY won't directly lead to a whole lot of extra Brooklyn-style pizzas being sold, but I do think that it will provide a solid ROI for Dominos. Think about it - what did it cost them to run this promotion. Other than the money they paid some ad agency or creatives to dream up the promotion, the main costs of this promotion are

And look at the press coverage it has already gotten. You're reading this blog, and you're going to probably at least glance at the article I am linking to at the bottom of this post. So the next time you think about having pizza for dinner, chances are it very well could be a Dominos Brooklyn-style pizza.

"Mission accomplished." - Dominos Pizza Marketing Director

http://promomagazine.com/news/dominos_brooklyn_113006/

Garret Ohm

PS3 or Wii ? We shall see!

I'm not a gamer. I used to be alright at some of the games when I was a young chap, but not really any more. I just don't see the graphics like I used to - I can't figure out when to punch those little buttons to win the game, and I just can't see things like gamers can see them. To me, it's just a bunch of abstract graphics. To them, it's a whole 'nother world.

So when I watched in amazement the news stories about people waiting in lines and getting into fist fights over the new Playstation 3 and the new Wii from Nintendo, I just didn't get it. Either way, there are millions of people out there that do get it. They're usually categorized as brand loyalists - passionate about the system they love, and it's either one or the other (although some prefer Microsoft's XBox). But which one is better? I think (and the article below agrees) that it is the system with the best game offerings. Sure, PS3 has hddvd capabilities and the Wii doesn't, but Nintendo's not even sure that matters - they have cheaper games and they think that will drive system sales.

The reason I wanted to put this article out there is because even though these systems are flying off the shelves, I have not seen ONE ad for either of these sytems. Yet, it's all the news talks about and the buzz is out of control throughout the United States. It's just one more example of how if you build a great product that is in high demand, THAT is what drives sales - not the marketing. As a marketer, it's crucial to just have a better product to market, than to have more marketing dollars to spend. It's always easier to advertise when you stand behind and believe in what you are pushing.

Here's the article from MediaPost:

http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=51788&Nid=25450&p=320064

Garret Ohm

Sports ACTIVITY Vehicle

So you're faced with launching a newly redesigned luxury SUV in a slowly shrinking, but very competitive market. Aside from building a car that just kicks the doors off of the competition, what's the best way to differentiate yourself - to ensure that when someone plunks down $50k+, it's on YOUR truck, rather than the competitor's?

BMW's answer? Create a new and exciting product category. In their case, when they went to launch their newly redesigned X5 and X3 SUV's, they didn't want to just release them as another SUV. A SUV is defined by Wikipedia as a type of passenger vehicle which combines the towing capability of a pickup truck with the passenger-carrying space of a station wagon. Sure, the X5 and X3 do that, but BMW wanted to get to the root of what made their trucks stand out.

It wasn't just the towing capacity and the storage space - every SUV has that, otherwise, not many would buy them. Instead of thinking in terms of features, they sought out the benefits of the trucks (marketing 101, right?). In short, they came up with the idea that SUVs allow you to participate in more activities than other vehicles. You can haul sports equipment in them, go on vacations with them, carry your friends and family in them, go off-roading in them, tow a boat in them. Pretty sweet deal if you live that kind of life. Luckily it just so happens that BMW's main TA are active affluent folks - folks that have the kind of money to do a lot of those activities. Neat how that works, isn't it?

From that idea, Sports Activity Vehicle was born. It doesn't hurt that BMW builds one hell of a good-looking and awesome-performing truck. But I have to imagine this strategy of promoting a different kind of truck will help make affluent men and women 30-60 salivate even harder and reach even deeper into their wallets than they would for any normal SUV.

Oh, and because I couldn't leave you with all these words and no eye-candy - enjoy the new X5 and below it, the X3:




















Garret

Nissan To Drive Microsoft Experience

From MediaPost - by Karl Greenberg, Tuesday, Nov 21, 2006

Nissan has a new deal with Microsoft that will give it a broad presence across all of the company's properties, first dibs on Microsoft's Web-based and emerging digital platforms, and a significant competitive twist--access to the Microsoft brain trust to develop unique marketing programs.

The deal was announced yesterday between Nissan and Microsoft's Digital Advertising Solutions group. It involves programs on PDAs, MSN, Windows Live, Live Search, Xbox and Windows Mobile.

The goal, said Steve Kerho, Nissan director of media and interactive marketing, is to flood target consumers' "communication eco-systems" with the Nissan brand.

Some forthcoming products of the alliance are: inclusion of Nissan and Infiniti dealerships in Windows Live local maps, Nissan's sponsorship of an Xbox 360 console game "Forza Motorsport 2," a global tournament on Xbox Live, and an Infiniti and MSN.com-branded magazine and blog called "Open for Design."

Nissan will participate in pilot advertising programs within Windows Mobile and Office Live. In addition, it will use Microsoft adCenter behavioral targeting tools for search marketing.

According to Microsoft, the MSN network reaches some 465 million consumers worldwide each month, with "millions more" tapping into Windows Live, Xbox Live and Office Online.

"It really started with the realization that big portals are really online networks," said Kerho. He said the new deal differs substantially from what had until now been a project-based relationship with Microsoft and its properties. "The breadth of it is different, and the fact that it is all integrated around one particular strategy," he said.

"Media is very fragmented right now," Kerho added. "Consumers are in control of when, where and how they consume media. We sat together with MSN, and carved up the whole day: how and when and where and what does [the target consumer's] day look like? We actually have the opportunity now to sit down with developers and brainstorm on what content will be engaging, where and when."

Kerho added that the expanded relationship with Microsoft reflects an effort to have more flexibility in choosing "push" and "pull" media based on needs of specific vehicles, and which part of the purchase funnel for a given vehicle model needs bolstering.

"Pull has a high level of engagement, but it doesn't scale that well. Depending on media property, and audiences, they have programs that scale very well for us," Kerho said.

For example, the redesigned Altima sedan, bowing early next year, he said, will benefit from awareness-building elements on the MSN portals, Messenger and Hotmail. Meanwhile, lower purchase-funnel activities will occur on Windows Live, and MSN Live Local, as local-dealer and MSN mapping technology drives the dealer locator within Nissan's own consumer Web site.

While Kerho said Nissan isn't abandoning traditional media, Nissan marketing chief Jan Thompson reportedly said at an Automotive News marketing seminar last summer that TV would get less media dollars because Nissan has become so good at analyzing ROI on digital media. Nissan, which spent over a billion dollars in measured media last year between its two auto brands, has also created similar strategic relationships with Yahoo and Google.

"Internally, we are talking about marketing 2.0. What's unique is the breadth and depth of this," said Kerho, who did not disclose the financial terms of the deal.

Microsoft set up its Digital Advertising Solutions group to simplify the buying process for advertisers who want to connect with their target audience across various digital touch points. "It is a response to one of advertisers' key pain points," a spokesperson said.

Christmas Coming (Too) Early?

It's just about that time of year again. You know, when you can't get within a mile of a shopping center without either being run over or getting in a traffic jam. I, for one, am not at all pumped about the mad rush that ensues as soon as the calendar passes November 23....As a marketer, though, I do get excited because I know that this is a big time for many of our clients in the retail world.

As I study the trends in order to keep up with what's going on in the advertising world, I have been noticing a disturbing trend toward advertisers beginning to advertise holiday gift items even earlier - some even beginning before Halloween has even come and gone. If you're like me, you're probably not even in the ballpark of thinking about buying holiday gifts yet, so I was a little skeptical at why some advertisers would choose this strategy. But after consulting the research, it turns out that around 40 percent of people start their Christmas/Holiday (to be PC) in October. Crazy!

So while I get why they're doing it, I still don't know if it's the right thing to do. In a day when consumers are even more skeptical about being marketed TO, many are offended by the mass commercialization of the holidays. They begin to resent people who are marketing AT them 24/7/365.

So I have an idea to make everyone happy - consumers and marketers. Sure, spend more marketing dollars and get in front of more faces in October, but please, please, please don't run ads promoting HOLIDAY GIFT SALES. It's just perceived as too rude, annoying, and perhaps most importantly, intrusive the the customer.

What do you think?

Garret

Thanksgaddy Time!

Hi all -

Most of the folks at our shop now know that we're collecting items for this years ThanksGaddy celebration, in parntership with the Advertising Association of Baltimore. This event is put on each year by the Bea Gaddy Family Center in Baltimore. You can visit their Web site at www.bea-gaddy-family-center.org. For those of you that don't know, Bea Gaddy was an amazing woman who devoted her life to trying to help the poor in the streets of Baltimore.

So if you have some non-perishable food items, or even some paper products, toiletries, etc, feel free to swing them on by. We have a bin that we're going to drop off on November 21st at the center - so let's FILL IT UP!

Garret Ohm

Special K as a Megabrand

From Adage:

In hot pursuit of the next megabrand, Special K is slapping its scarlet letter on everything from water to watches.

Special K, a dieting cereal that has become Kellogg's top brand, is now expanding into meal bars and water products. |ALSO: Comment on this report in the 'Your Opinion' box below.

Diet strategy
In the five years since Kellogg Co. and its agency, Leo Burnett Worldwide, devised the Special K Challenge diet plan, it's blossomed into the company's No. 1 brand, with an estimated $500 million in global sales. Now Kellogg is poised to push its diet credentials even further.

It plans this month to nationally roll out a line of protein waters and protein bars for the diet section already on the shelf at Wal-Mart. It will also launch Special K Chocolatey Delight to help assuage dieters' cravings come diet season this January (see sidebar). Special K Personal Trainer watches which calculate calories burned and are already sold in the U.K., could also find their way across the ocean.

Health and wellness VP
To mastermind this aggressive expansion, Kellogg named Alan Gravely, a former marketing executive in its frozen-foods division, to the new position of VP-marketing of health and wellness. As one executive close to Kellogg noted, Mr. Gravely's position was created "in recognition of the largess of the brand, to put a more coordinated effort against it."

As Special K has expanded in recent years to include new flavors, such as the 2001 hit Special K Red Berries, and new forms, including bars, snack bites and waffles, spending has also increased. Kellogg laid out about $45 million in measured media for the brand in 2005. In January through June of this year, it had already spent $31 million, TNS Media Intelligence/CMR figures show.

"Kellogg has done a great job by not just focusing on overall health and wellness but by segmenting the market within that for different need states, for example touting All-Bran for digestion and Special K for weight management," said Credit Suisse analyst David Nelson. In terms of the expansion of that weight-management area, Mr. Nelson noted that, of course, extensions "have to be consistent with a brand's positioning, but Kellogg has credibility in not taking things too far in the last five years since they've been back on track."

Sales up 16%
In the mostly declining cereal category, Kellogg managed during the year ended Sept. 6 to drive sales of Special K up 16% to $286 million in food, drug and mass merchandisers excluding Wal-Mart and, in the highly competitive bars business, to build its Special K bars up 67%to $96 million in those same outlets, according to Information Resources.

Those numbers have given senior management the confidence to bet in a big way Special K can survive and even thrive in new categories, including the ultracompetitive water arena, with its Special K20 Protein Waters, and in the pharmacy and diet and nutrition aisles, where consumers are not used to seeing the brand.

Retail buyers are bullish on Special K cereal and are confident as well about the protein bars. Water they're not sure about. "You never know with these things. It could be the flavor of the month and only click for a while, or it could be the next big hit," said one. "It's hard to know."

Shelf space commitments
With the Special K name and Kellogg's backing, though, retailers are certainly going to give the new products the shelf space Kellogg is asking for. Advertising for the lines will hit in January, touting their ability to help consumers stay on track with their weight-management goals throughout the day. Observers said that if the initiative is successful, Kellogg will gain a legitimate footprint in the diet arena and stronger credentials to take the brand even further.

Asked during Kellogg's second-quarter earnings call about how far Special K might be expanded, President-Chief Operating Officer David Mackay said: "Wherever we can find ways to bring to consumers things that help against a particular need state and work off our current brands, that's exactly what we're going to do."

(Good) Marketing Really Takes Guts

True story. The husband of one of our esteemed clients, who shall both go nameless came to us a couple of weeks ago as they were starting a new company. The company is involved in high end home electronics integration. They were just getting their company off of the ground and wanted a brochure to use as a leave behind and to give to architects and builders to show that they were a company capable of delivering a quality product and a seamless install. Sure, we can do that. But a little background - this company just started on 10/10/2006. They have a name and no logo, and a Web site only a mother could love.

So our strategy, rather than to take the graphic design approach, was to work to develop the brand before we went ahead and just designed a pretty brochure. The idea here is that we want to work to properly position this brand before we execute any deliverables. Do they want to be high end, low end, or in the middle? What about them makes them a better choice than the other dudes that are priced similarly? Why should someone NOT go with a cheaper bid? Do they hang their hats on quality, scalable product or seamless installs? So obviously there are a lot of things to consider. It's our job to position them properly and then execute this graphically and in print.

The bottom line is, we knew that they were going to other firms that would probably give them just the cost to design a brochure, without this added process of brand development, which IS a significant expense. It was clearly the best approach, though. The question was, do they see the value in this process and do they have the guts to invest in it, even though they are tight on cash? Or would they take the easy way out?

The pitch went well and all signs point to the former, but we won't know for sure for a couple of days. But it really sounds like these guys have guts and are prepared to throw caution to the wind and do it right. Our fingers are crossed.

More later,

Garret Ohm

I Strongly Dislike Logos

Notice I didn't say hate. Hate's a strong word for something that is a staple of the industry that I love. But over the past few weeks, I've come to the realization that I really dread when our agency has to do a logo job. It's not that we can't or we won't - we've done some really cool and awesome logos over the last 17 years - many of which you'd definitely recognize.

You see, it's just that it is one of the projects that we work on that causes the most undue stress, agony and HEARTBURN. The reason this happens, is because many business owners just plain believe that their logo is their brand. They truly believe that this is what defines them; therefore, it MUST be so incredibly mind blowing that they can barely speak real words when they see it.

And what happens when a small business owner thinks this way? They start to fantasize in their mind long before we present creative to them about how awesome it is. Do they realize that these types of expectations can rarely ever be met? Probably not. Inevitably, they are disappointed when they see the logos and don't fall ass first right out of their conference room chairs. It's a task that is seldom met by even the great agencies of the world, especially in the first round.

What we need to work on is making sure a customer's expectations are realistic from the start. The truth is, your brand is so much more than just how awesome your logo is. Your brand is your unique selling proposition (USP), your people, your culture, your product, your service, etc. These aren't things that can be communicated with just a logo or "graphic design." Think about it - some of the best brands in the world have logos that could have been designed by a wanna-be artist.

Don't believe me? Well, you've probably never even paid attention because logos are seldom shown by themselves without their other brand elements - they're usually communicated with an emotion or a message. Nike, Microsoft, VW, Sony - they're not good logos, they're well communicated brands. Check these beauties out:























So, Mr. or Mrs. marketing director or small business owner - the next time you have your agency design you a logo for your brand, make sure your expectations aren't out of whack - you could end up unnecessarily disappointed.

Until next time,

Garret Ohm

Tried Live.com?

Hi all -

I just read an article about it this morning. Has anyone tried www.live.com? It's Microsoft's entry into the search forum, and it seems at first eerily similar to Google. Check it out if you get a chance. One of the coolest things that I've seen about it so far, other than its appealing layout, is the ability to customize your search results.

Play with it a little bit. There's a decent chance that someday soon, www.live.com will be the majority of America's start page.

-Garret

AAB Golf Tournament

Hi all -

I just wanted to let you know that it's official. I am now the chairperson of the 2007 Advertising Association of Baltimore golf tournament. NICE! I played in the tournament this year at Mountain Branch, and hope to deliver an even better event this year.

If anyone is interested in sponsorship, or playing, give me a call or email!

Garret Ohm

Video Gamer Target Audience

If you had to guess what the typical demographic was for video gamers, what would you guess it would be? Me? Before reading the article below, I would have guessed that it would be 14-17 year old boys, with little to no annual income. WRONG. Check it out - this is good hard research from the Center for Media Research that suggests that the average video gamer is actually 41 years old and more than HALF are WOMEN. Stunning marketing research. Talk with you later,

Garret Ohm
We Know Target Audience Research


Average Video Gamer is 41 and Half Are Female

According to comScore Media Metrix, the second quarter results of Game Metrix, a quarterly syndicated study found that video games have much broader appeal than teenage boys. On average, gamers are 41 years of age with an average annual income of $55,000. Further, females account for 52 percent of the gaming audience. The average gamer has been online for nine years and 84 percent have broadband access at home.

When asked about their primary reason for purchasing their last game, more then one-quarter of those using each type of device stated that they purchased their last game because they had played it before and enjoyed the experience. The next most popular responses included "I heard good things about it" and "A friend recommended it," indicating the importance of word-of-mouth recommendations in influencing purchase behavior.

Erin Hunter, executive vice president of comScore's Media and Entertainment Group, says that "...These findings underscore the importance of marketing to, and listening to, experienced gamers. Familiarity with a particular game can influence both the gamers' direct purchase behavior, as well others' purchase behavior through positive word-of-mouth."

Top Motivations for Gamers to Buy Games
	Gaming Device
Reasons for Purchasing Last Game	Console	PC (CD/DVD)	Mobile
I played it before and liked it	24%	27%	29%
It's a sequel to a game that I like	16%	13%	8%
I heard good things about it	11%	8%	15%
A friend recommended it	9%	12%	8%
Price	8%	8%	9%
Got good reviews from critics/reviewers	7%	3%	6%
I saw/ heard an advertisement for the game	6%	4%	8%
I wanted to demo the game	5%	4%	6%
Someone gave it to me, but I did not ask for it	3%	8%	5%
Source: Game Metrix

Heavy gamers were more likely to accept and embrace in-game advertising than light/medium gamers. 37 percent agreed that featuring actual products or companies in games make the games feel more realistic, while 27 percent of light/ medium gamers agreed. Half of heavy gamers believe that advergaming "is inevitable and will be in all or most games in the future," compared to 42 percent of light/medium gamers.

(Heavy gamers played games at least 16 hours per week or played games on two or more devices for at least 11 hours per week. Light/ medium gamers played video games for less than 11 hours per week. One quarter of respondents qualified as heavy gamers, while the remaining 75 percent fell into the light/medium gamer segment.)

Ms. Hunter concludes that "From the advertiser's standpoint, gaming is a potentially powerful medium for reaching consumers who may not be reachable via more traditional means..."

For this release and more information about comScore Game Metrix, please visit here.

Most Affluent Women Have a Relationship With The Internet

Here are some cool research statistics that will definitely help us when planning media for clients looking to reach affluent women. It looks like pretty much all working women access the internet. Many of these women are actually purchasing products or services on the internet! Cool research, give it a quick look - it's from the Center for Media Research.

Almost All Affluent Working Women Turning to the Internet

According to new research by The Media Audit, affluent working women with family incomes of $75,000 or more are growing in number and 94.3 percent access the Internet during an average month. From 2004 to 2005 the percent of affluent working women making five or more purchases on the Internet increased from 54.1 percent to 56.6 percent. The percent making 12 or more purchases in the same years increased from 30.0 percent to 32.2.

Bob Jordan, president of International Demographics, Inc., said "From 2004 to 2005 affluent working women increased from 8.7 percent to 9.2 percent of the 137 million adults in the (markets surveyed)... (and) have also made some rather dramatic changes in their media habits."

"The percentage of working women that spent at least 430 minutes a week on the Internet (heavy users) jumped from 48.6 percent in 2004 to 50.8 percent in 2005," says Jordan. "Heavy use of radio, television, newspapers and direct mail all declined within this group. The collective Internet changes for this group are significant, and other media is... paying the price"

Among all adults, just 35.2 percent have homes valued at more than $200,000. Among affluent working women the percentage is 63.9; 31.0 percent have homes valued at $400,000 or more. "These are mostly college educated (58.1 percent) two income (69.0 percent) families," says Jordan.

The 10 markets with the highest percentages of affluent working women are:

• Washington, DC, 14.7
• Southern New Hampshire, 13.0
• San Jose, 12.5
• Hartford, 12.3
• Minneapolis-St Paul, 11.9
• Little Rock, 11.7
• Omaha-Council Bluffs, 11.7
• San Francisco, 11.6
• Baltimore, 11.4
• Madison, 11.3

On the other hand, Jordan pointed out that a community may not be "poor" even with a low percentage of affluent working women. As an example he noted that even Daytona Beach, which has the lowest percent of affluent working women (3.6 percent) of the markets surveyed, ... is ninth among the 87 markets in percentages (13.9 percent) of affluent empty nesters with household incomes of $50,000 or more."

For more, go to The Media Audit here.

Advertising Goes Down The Toilet

Hi all -

I read this article at www.brandchannel.com and really enjoyed it. I thought you would as well. It's about the power and/or danger of advertising where people do their business. No, not THAT kind of business......

Enjoy: http://www.brandchannel.com/start1.asp?fa_id=335

Sincerely,

Garret Ohm
garret@thecyphersagency.com

Wal Mart's Christmas Gift List

From AdAge...
Wal-Mart's launch of a new kind of "wish list" Christmas site for children has drawn the ire of consumer advocates. "If you show us what you want on your list, we'll blast it off to your parents," says an animated holiday elf named Wally who guides children through a seemingly endless conveyor belt of toys on the retailer's website. Children who click a "yes" button to have a product e-mailed to their parents hear a round of applause. If they click the "no" button, the rejected toy gets boxed up and unceremoniously sent to a dump truck.

The animated Wally, and his elf friend Mary, characters with quirky accents and irreverent attitudes, are also the stars of an upcoming 60-second, 3-D spot that will run in cinemas this holiday season, and they will also appear in TV spots and in a special comic book that will be sent to children who visit the website of the nation's largest toy retailer.

Campaign for a Commercial Free Childhood is launching a letter-writing campaign among its 7,000 members asking Wal-Mart to close down the site. "Families have a hard enough time navigating holiday commercialism without the world's largest retailer bypassing parents entirely and urging children to nag," said Susan Linn, co-founder. "For a company that purports to be family-friendly and promote family values it's very disrespectful of both parents and children." What do you think?

So, did Wal-Mart overstep its bounds with a holiday website that allows children to build a toy wish list that the retailer e-mails to their parents? What do you think?

Garret Ohm

Cool Ads

Hi all -

A friend of mine that is in the business passed along some cool non-traditional advertising techniques that I wanted to pass along. Check them out:

An ad for a plastic surgeon...















Fun ad for a music-related client...





















Folgers Coffee...





















Firearms expo...





















An ad for a solution that helps stop nail biting...





















Pretty sweet, huh?

Garret

Blogging About Blogs

Just a quick note to promote a very good Blog that deals with Internet useage. If you want to check it out, go to:

http://weblogs.hitwise.com/

Garret

Did You Know?

Did you know?

54% of consumers resist marketing?
56% of consumers actually avoid products that are overmarketed?
69% of consumers actually go out of their way to block advertising?

It's true - the research tells us so. So how are YOU reaching out to your target consumer?

When Brands Collide

Hi all -

The other day I bought a pair of shoes. Anyone that knows me knows that this can be a huge undertaking. Usually, it involves at least a lap and a half around Arundel Mills mall. For those of you who are counting, there are 19 stores in Arundel Mills that sell men's shoes. 19! I usually have to stop at every one, just to make sure I'm not missing any.

So the shoes I bought are shown here (well, those are like mine - mine actually have white in the back where the black is....):













Guess what type they are? Most people know that the three diagonal stripes comes from the Adidas brand (four is K Swiss, two is Steve Madden). But it clearly says Goodyear on the side of the shoe. What the heck?

Well, being the brand-phile that I am, I had to buy the pair of shoes that had not one, but TWO brands incorporated into the shoe. Now, I'm not sure how it all went down, but I can totally rationalize why both of these companies probably got together on the deal where Goodyear would supply the rubber for the soles of an Adidas shoe.

My guess is that Goodyear marketing executives were sitting around the conference room table thinking about innovative new ways to get the Goodyear name out in front of their target audience, which I'm assuming is largely Males 18-35 that are into the performance of their automobile. And if you've been reading my other blogs, you know that breaking through to this group is harder than ever....

So someone probably started thinking of how they could cross promote with other brands that are popular with this audience. Maybe they even thought - "hey, maybe we could provide free Goodyear rubber in exchange for prominent brand placement." Someone probably started thinking about what brands use rubber...."hey, shoe companies use rubber. What's a popular shoe brand with Males 18-35? ADIDAS."

Then, someone gets on the phone with Adidas' marketing department and makes the offer to supply the rubber for the soles at no charge, in exchange for them putting out a co-branded shoe. Pretty cool idea, and in my opinion I think it works well. If nothing else, it shows innovative marketing. And I have to say it produced a pretty cool darn shoe. Which, incidentally, is a damn good shoe for driving - it's excellent for the heel and toe downshifting method!

So the lesson here? I think that brands big and small need to look further into cross promotions. I think this is going to be an even more effective way to enhance your brand awareness as time goes by.

Cheers, that's all for now...

Garret Ohm

The New Mass Comm

Hi all - while I was out winning The Brick Companies Classic, this ended up in my Inbox from The Center for Media Research. It's a good article about the "future" of mass communication. With these 16-34's getting older and the new generation being even more digitally savvy, marketers really need to watch how they integrate these new mediums into their advertising budgets. We're working with a couple of new retail clients right now, and this is definitely an area of consideration for us - in fact, we're even suggesting a couple of clients who focus on females 16-34 start a Myspace page! Fun times....

G



Digital Consumers are Transforming Mass Communication

A new study by Universal McCann, "The New 'Digital Divide', How the New Generation of Digital Consumers are Transforming Mass Communication," concludes that consumers are increasingly relying on non-traditional platforms for entertainment, news, social interactions, shopping, and other daily activities.

The Executive Summary reports that there was a time when music was the great divide between generations. Today, technology has become the source of the "generation gap." A younger, tech savvy segment adopting new media platforms, with the 16-34 age group leading the way in socializing:

• The age group 16-34 is 25% more likely than ages 35-49 to use instant messenger, with over 75% of ages 16-34 currently using at least one service.
• About 40% age P16-34 belong to a social network site; this is twice the percentage of 35-49 year olds.
• Nearly 40% of are16-34 have met someone face to face after meeting on the Internet.
• Yahoo, AOL and MSN Messenger are among the top Internet services in terms of awareness and use by ages16-34.
• This is followed closely behind by social networking site, Myspace.com with 43% of 16-34's being current users. In comparison, only 16% of 35-49's are using Myspace.

David Cohen EVP, U.S. Director of Digital Communications concluded that "there is no doubt that we are moving rapidly from a world of passive receptivity to active engagement. No longer can we simply broadcast our messages to a mass audience and hope that our standard metrics of reach and frequency will guarantee success. Accountable engagement innovation is the battlefield of the 21st century..."

The younger set has adopted many of these emerging technologies at a faster rate with three out of four of the 16-34 heavy Internet users currently using instant messenger. Additionally, there are twice as many 16-34s visiting social networking sites than those 35-49. Other findings include:

• 71% of the 16-34 year olds have participated in a blogging activity.
• The 16-34's are three times more likely (25%) than those 35-49 to manage and/or write their own blog.
• While personal and family/friend are the most common types of blogs among the younger group, more than 40% are developing photo and pop culture (music/film) blogs as well.
• One third of 16-34's have participated in peer-to-peer file sharing compared to just 12% of those 35-49.
• Thus far, just 10% of 16-34 year old heavy Internet users say they have used IPTV and only 14% have used voice over Internet protocol.
• When asked which information source they would miss the most, television came out on top, with 27% of 16-34's and 29% of 35-49's saying they would miss this medium
• There are still low levels of usage and intention to use RSS feeds, with nearly half of our sample unaware of what they are.

Email Marketing

So are email marketers getting smarter, or are consumers starting to greet email marketing with (slightly) open arms? You tell me...From the Center for Media Research.

Garret

E-Mail Marketing Getting High Click, Open, and Conversion Relative to Cost

WebSurveyor Corp., partnering with Internet Retailer released an August survey of IR e-newsletter readers revealing that web merchants have very ambitious plans to increase both the size and scope of their e-mail marketing efforts. 18.4% expect to grow their opt-in lists by more than 50% within the next year, while another 25.1% will increase their lists by 16% to 50%.

Reported by Mark Brohan in a recent article, he says that 73% of chain retailers, catalogers, virtual merchants and consumer brand manufacturers taking part in the monthly survey on e-mail marketing, spend 5% of their marketing budget or less on e-mail marketing, yet just over half of respondents, 50.6%, report that 6% or more of their sales come from e-mail marketing, with 25% saying the proportion is over 11%.

The report found that

• 57% of the respondents have opt-in lists of fewer than 50,000 names
• 24.3% have 51,000 to 400,000 names
• 9.1% have 401,000 to 1 million names
• 10% have more than 1 million

63.8% of retailers conduct up to three e-mail campaigns each month and another 25.2% conduct between four and eight campaigns, says the report. 62.8% also indicate that they've increased the frequency of e-mail campaigns in the past year.

E-mail marketing consultants consider an open rate of about 20% and a click-through rate of 4% to 5% to be a highly effective e-mail campaign.

• 26.5% of participants in the survey report open rates of 20% or more (11.2% reported 20% to 25% while 15.3% said more than 25%)
• 11.8% report open rates of 16% to 19%
• 14.6% report e-mail open rates of less than 5%
• 6.2% say open rates of 1% or less.

Click-through and Conversion averages are growing:

• 17% report e-mail click-through rates of 16% or more
• 28.9% report click-through rates of 6% to 15%.
• 20.2% of respondents report e-mail sales conversion rates of 1% to 2%
• 26.5% with conversion averages of between 2.1% and 4%
• 14% with conversion rates of between 4.1%
• 10%, and 3.2% with sales conversion averages greater than 10%

Brohan concludes that by working smarter with existing resources while controlling costs, web retailers expect a sizeable return on their investment in e-mail marketing. Compared to the rising cost of paid search, he says, which can absorb up to 50% of a big retailer's total annual online marketing budget, e-mail marketing remains relatively inexpensive.

• 41.6% of all retailers taking part in the research spend less than 1% of their total annual marketing budgets on e-mail. That compares with
• 31.3 % spend between 1% and 5%
• 13.8% commit 6% to 10%
• 5.6% spend from 11% to 15%
• 3.8% from 16% to 25%
• 4.1% with e-mail budgets that account for 25% of their overall marketing budgets

Branding and ROI Go Hand In Hand

Great article from OnlineSpin, written by Dave Morgan of Tacoda. I thought I'd pass it along to all you folks ravenously searching for great marketing articles.

G

Branding and ROI, Mutually Exclusive?
By Dave Morgan

In the old days of advertising and marketing, people that did branding and people that focused on ROI were polar opposites. They lived on different ends of the world. The former were in the high end of the advertising world, where it was all about sizzle and premium traditional media environments, the latter were in the less glamorous direct marketing world, where it was all numbers, postal rates, telesales and the business of managing lists. Their two worlds couldn't have been more different. The former hung out in glitzy, high visibility places like New York, Chicago and Los Angeles, the latter in more remote, subdued locales, with cheaper real estate, labor and data geeks--places like Central Florida.

Most importantly, brand advertisers cared little about measurable sales and ROI. For direct marketers, that was all that they cared about.

No more. These days, all marketers want measurable results related to sales objectives from their advertising and marketing expenditures, particularly online. A big part of this has certainly been driven by the fact that a large portion of early online advertisers were direct marketers. Many think that this focus on measurability will go away as more and more of the traditional brand advertisers show up online. I don't think that will happen. All online advertisers, including those for whom branding is the primary objective, will want more and more ROI measurability. Why do I believe that?

• Inertia requires it. Online ad budgets have to come from somewhere, and something extra is going to be needed to move it. Traditional media are notoriously bad at ROI metrics, so online buyers will look for better measurability there to justify moving the money.

• Sales channels and marketing are becoming more integrated. As the clients' businesses become more integrated and measurable, so must all of their advertising, irrespective of whether it is branding or promotional.

• The corporate game is changing. Sarbanes-Oxley is the new law of the land, and auditors must certify it. They understand numbers, not emotions. They don't care much about the difference between branding and direct response, and they certainly don't understand (or approve) of the fact that branding campaigns frequently bring with them tickets to the Super Bowl or Cannes.

• All media buying is becoming more sophisticated. The reorganization of the media departments into media agencies has brought much more specialization and sophistication and scale to the business. They can now afford and use technologies that can measure things that were only dreamed of before. Their businesses run on very tight margins, so ROI metrics are super critical to them.

• Competition. Publishers are creating and integrating their own proprietary measurement tools and data as competitive differentiators. Many of these are able to deliver detailed ROI metrics. Keeping up with the Joneses--and their order flow--will do much to drive this market.

• Because you can. Online advertising is measurable, and systems now permit high degrees of post-impression sales measurement. Many brand buyers will want it, just because it is available and of interest to them and their clients.

It's no longer a black and white world of branding and direct marketing. The future, I think, will be much grayer, as branding takes on ROI characteristics, and direct marketing, likewise, will probably take on elements of brand advertising. Whatever the outcome, ROI and measurable sales results are here to stay. Branding and ROI are certainly not mutually exclusive anymore.

Dave Morgan is Chairman of Tacoda.

Analysis Paralysis

Hi all - here's an excerpt I was reading from an article written by Jay Conrad Levinson, the father of "guerilla marketing." It was pretty good so I wanted to pass it along. The full article can be read at the link at the bottom of this post.

Garret Ohm
Guerilla Marketer

Guerrillas are never stopped by analysis paralysis. Don’t let it stop you.

Many business owners realize the simplicity of marketing, but just don’t know where they should begin. Analysis paralysis stops them in their tracks. So many tasks. Where to start? So they don’t start. They know what they must do, but don’t really have a plan, so they make disconnected efforts to achieve a hazy goal. When they don’t see encouraging results right off the bat, they lose confidence, if any existed in the first place.

If there’s any correct time to start, it’s right now. If there’s any proper place, it’s right where you are. You’ll never feel you are completely ready, so you may as well begin immediately.

If there’s any secret to be learned, it’s the secret of taking action and never stopping. You’ve heard Diana Ross sing when she was a member of The Supremes. Hear now what she says about taking action: "You can’t just sit there and wait for people to give you that golden dream; you’ve got to get out there and make it happen for yourself."

Guerrillas have learned that the best time to market is when they don’t need any more business. They know that the best source of new clients is old clients and that the best marketing is characterized by quality and not quantity. They realize that their best marketing vehicle, and least expensive, is a satisfied customer. And they know that the two best ways to measure their marketing are by customer retention and by profits, both a part of each other.

The rest of the article can be found here: http://www.gmarketing.com/articles/read/10/

Mobile TV?

For all you hardcore new media followers, here's a new study from The Center for Media Research that talks about Mobile TV - an emerging form of new media that is going to take over the world pretty soon!

G

Consumers Want TV At Their Fingertips

According to Telephia, researcher to communications and new media markets, the mobile TV audience grew 45 percent to 3.7 million subscribers in Q2 2006. The third screen allows consumers to get news and information while on the go, with news, weather and sports channels topping the list as the most watched mobile TV content. Total quarterly mobile TV revenues increased to $86 million last quarter, an increase of 67 percent since Q1.

Tamara Gaffney, Director of Product Management, Telephia, says "Mobile TV is the fastest growing wireless data service, ... (with) the potential to be the most important new form of media since the advent of the Internet."

Among all mobile TV users:

• ABC News was the most watched mobile TV channel in Q2 2006, with 40 percent of the total mobile TV audience
• Thirty-two percent of the total mobile TV audience watched The Weather Channel
• Fox Sports was third at 31 percent
• ESPN next with and 29 percent of the mobile TV audience
• Fox News fifth at 22 percent

In terms of access reach, people who watch relative to those who had access to the channel, CNN secured the top spot with 65 percent of mobile TV users. The Weather Channel had the widest distribution with an access rate of 82 percent.

Gaffney added, "...Consumers want television at their fingertips... News and information is the killer app for mobile television..."

Mobile TV Channels by Audience Share
Channel	Share of Total Audience
ABC News	40%
The Weather Channel	32%
Fox Sports	31%
ESPN	29%
Fox News	22%
NBC Mobile News	20%
Comedy Central	16%
AccuWeather	15%
Discovery Kids	15%
Discovery Channel	13%
CNN	12%
E!	12%
Source: Telephia Mobile TV Diary Report, Q2 2006

Mobile TV Channels by Coverage Area Reach
	Access Reach (% of Audience with Access to Channel That Viewed)		Access (% of Total Audience With Access to Channel)
Channel
CNN	65%	18%
ABC News	55%	78%
Fox News	49%	38%
AccuWeather	46%	34%
The Weather Channel	45%	82%
Comedy Central	41%	37%
ESPN	39%	63%
Discovery Channel	32%	37%
Fox Sports	31%	79%
NBC Mobile News	30%	64%
E!	26%	37%
Discovery Kids	25%	30%
Source: Telephia Mobile TV Diary Report, Q2 2006

For more information, visit Telephia here.