Marcom this week: From A to zinc – 3/4/11 edition

Although Charlie Sheen’s rants made more than enough headlines this week, marketers managed to squeeze in a few of their own. From the announcement of Apple’s iPad 2 to the latest research on what consumers want from brands online, here is a look at what happened this week in the integrated marketing communications industry.

iPad 2 raises the bar for marketers
In case you missed it, Apple announced its next-generation iPad on Wednesday. The lighter, thinner, faster tablet arrives March 11 with a price tag of $499 for the 18GB Wi-Fi version. More important than its new software and front- and rear-facing cameras is the fact that the iPad 2 is driving the post-PC conversation forward at full speed. Just a day after Apple’s announcement, Gartner lowered its growth forecast for worldwide PC shipments in 2011. Looks like the iPad is well on its way to bridging the gap between laptops and tablets, which means it’s time for marketers – who haven’t done much to test the tablet waters – to take notice. Faster browsing means a host of new apps are probably already in development. However, if PC alternatives are the future, then how do marketers get on board in a meaningful way?

For brands, it’s all about being "liked"
Take note marketers: consumers want to hear from you when online – if you’re offering discounts. This is the latest finding of a new Ad Age/Ipsos Observer survey of digital-media habits. Facebook was a clear winner, with 41 percent of respondents preferring to receive communication from marketers via this platform. The runner up was Twitter, which received 18 percent of the vote. Coupons are the most sought-after item, with 65 percent of respondents hunting for online discounts. In fact, for most respondents, this was the reason why they “liked” a brand on Facebook. Not surprisingly, only 22 percent of respondents cared about customer news, a reminder that pushing self-promoting content won’t win a brand many friends.

Taco Bell: Where’s the beef?
This week, Taco Bell debuted a series of commercials in response to a lawsuit claiming its beef isn’t beefy enough. According to the ads, Taco Bell’s beef is comprised of 88 percent premium ground beef and 12 percent signature recipe. Viewers are encouraged to visit the fast-food chain’s website to view the entire ingredients list. Overall, the ads aren’t very interesting. We probably would’ve dismissed them with a shrug had it not been for the commercial’s inopportune airing on Sunday evening during a repeat of Fox’s new animated series, "Bob’s Burgers." Titled “Human Flesh,” the episode is about a misunderstanding surrounding the beef content of Bob’s Burgers signature hamburgers. (Sound familiar?) The first ad to air during the commercial break? Taco Bell, of course. Bad timing for the brand, and a big “oops” for Fox.



Marcom This Week: From A to Zinc is compiled by the Vitamin IMC editorial team. They can be reached at vitaminimc@gmail.com. Miss your vitamins last week? Visit the “Marcom this Week” archive.

Marcom this week: From A to zinc – 1/21/11 edition

From the New York Times’ paywall announcement to Steve Jobs’ medical leave of absence, here is a look at what made headlines this week in the integrated marketing communications industry.

New York Times Will Charge
Nonsubscribers for Access
Beginning by the end of this month, the New York Times will charge nonsubscribers less than $20 a month for full access to its Web content. The yet-to-be-announced price will strategically fall below the paper’s $19.99 a month subscription rate on Amazon’s Kindle. Users will be able to read a certain number of articles free each month; to read more, the reader must pay a flat fee for unlimited access. The paywall will provide the paper with a needed revenue stream in the face of dropping ad sales; however, yet to be determined is whether this fee will chase away readers. Signs seem to point to no, as the pay structure should have little effect on light readers, and loyal readers will most likely hand over the money to ensure uninterrupted access.

The New York Times is not the first paper to initiate a paywall, nor will it be the last. Which media outlets do you think will be next?

Can Apple Survive Without Jobs?
It was a week of highs and lows for Apple. On Monday, the company’s CEO Steve Jobs announced his third medical leave of absence. The following day, Apple announced it sold 7.33 million iPads during the first quarter of its 2011 fiscal year, bringing total sales to nearly 15 million. This is an impressive feat considering the tablet category did not yet exist a year ago. However, Apple’s string of hits, including the iTouch, iPhone and MacBook Air, are a reminder of the important role Apple's CEO plays in the company’s innovation process. In the near term, Jobs’ absence should not hinder Apple’s success. However, with the rapid pace of new product introductions, it is imperative the company keep its innovation process moving ahead at full speed.

Despite “Golden Voice,” Kraft Ad Is Flat
The much-anticipated Kraft Macaroni & Cheese commercial featuring Ted Williams – the homeless man with the golden voice – debuted this week. Unfortunately, amidst all the hype and fanfare the TV ad fell flat. Yes, Williams’ voice added some punch to what would otherwise have been a traditional mac ‘n cheese ad. And, yes, the commercial has become a viral sensation, garnering more than 700,000 views and snagging the No. 6 spot on the Viral Video Chart. But despite a captive audience, the ad did nothing to position Kraft as a forward-thinking brand. Rather, the spot, created by Crispin Porter & Bogusky, reinforces age-old stereotypes of wives cooking in the kitchen and insensitive husbands coming home with last-minute dinner guests. We learn from the ad that Kraft’s Homestyle Macaroni & Cheese is a quick dinner solution, but the brand clearly missed an opportunity to tell us something more.




Marcom this week: From A to zinc is compiled by the Vitamin IMC editorial team. They can be reached at vitaminimc@gmail.com. Miss your vitamins last week? Visit January 14's “Marcom This Week.”

Steve Jobs: The ultimate IMCer?

(A formal invitation for Steve Jobs to guest lecture at Medill IMC)

By Anne Mahoney

In a recent article featuring an interview with Jobs’ old boss at Apple, John Sculley, details about the mythical man had me reeling with pride. “He’s a total IMCer!” I thought as I read about Jobs’ focus on user experience before market share. It illuminated a vast difference between Apple and Japanese companies – and also IMC students and MBAs.

The article was especially timely as we had the opportunity last week to hear Jose Costa speak on the difference between IMC and MBA students. Costa is a Medill IMC grad and currently finishing up an MBA at the University of Chicago Booth School of Business. Among the more conspicuous degree comparisons, the one that had us students applauding was his slide featuring IMC as a Mac and MBA as a PC. Steve, did you hear that?

As IMC students, we are constantly urged to consider the question: “What business are you in?” Jobs was the only person, back in the 80s, to view the computer as a product for personal use. Guess he nailed that one.

We also learn that consumer data is extremely important, but the frustrating part about consumers is that they can rarely articulate exactly what it is they want or need. It is up to companies and mostly marketers to anticipate that need, and to create a product or messaging to satiate it. Jobs did exactly this, too, when he visualized the Macintosh, which was far outside the realm of what calculator users thought they needed.

The article highlights how the success of Apple is most definitely a result of Jobs’ emphasis on product design. Although Medill incorporates a rich and varied amount of elements crucial for integrated marketing into the program, Jobs also makes a great case for why design should be a topic more relevant at Medill. If we as marketers are able to influence the core of the user experience, what a person sees and feels, that will make us more successful in all other communication surrounding it.

So Steve, if you’re not too busy, feel free to stop by Evanston and teach us a thing or two about this design thing you’ve changed the world with. Lunch is on us.

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Anne Mahoney is the Social Media Director at Vitamin IMC and a student in the Integrated Marketing Communications graduate program at Northwestern University's Medill School. She can be reached at AnneMahoney2010@u.northwestern.edu.

Mobile marketing developments enhance brand experience

By Johnny Schroepfer

Mobile and emerging technology have historically had more hype than actual adoption or implementation within marketing campaigns, but with the proliferation of mobile devices and digitization, the mobile channel is slowly becoming a necessity rather than a novelty. From an integrated marketing perspective, here’s a look at some developmental areas of mobile and their impact.

Traditional & Mobile Integration in Marketing

Mobile devices can be an extension of the brand experience which connects the end user with the brand messaging. Mobile is often an overlooked or undervalued channel of communication but in reality, it’s one of the most personal forms of communication in this digital world. When campaigns are successfully crafted and executed, the channel that connects the end user with the message has the power to change both brand perception and consumer behavior. With that said, we will continue to see more brands create mobile campaigns or initiatives that complement traditional marketing channels while allocating a significant amount of their advertising budget towards mobile and emerging technologies.

Advertising

The recent launch of the Apple iAd platform will only further prove this point that there will continue to be a major marketing shift. The iAd platform allows developers to create beautiful and rich advertising executions that are less disruptive and reach the consumer at the intersection of emotion and interactivity. In addition to this innovative approach, the developers will retain 60% of revenues, which have already shown signs of success.

Payment

Payment will be another key developing area in mobile. Allowing consumers to easily pay for various products and services on-the-go will benefit both parties. Apples iTunes payment system is a great example of quick, convenient one-click purchasing. Additional examples of up-and-coming payment models include Jack Dorsey's recent startup, Square, which allows consumers to pay and receive payments through their iPhone or iPad. While these payment models will continue to help the mobile space evolve, privacy concerns are still a very hot topic. The recent news of Apple iTunes accounts being hacked will require companies to provide a "reason to believe" and reassure consumers that their information is secure.

Location

I wrote a post on location-based services a few months ago for Vitamin IMC about the opportunity for small businesses to take advantage of understanding consumer insights and needs. Over the past few months there have been several developments and location-based services which have proven that they're more than a fad. Brands that take the time to understand and develop services based around GPS locations can provide personal messages and incentives to highly-segmented groups thus creating relevant content and messaging for consumers who are looking for it.

All of the above, when used strategically in an integrative marketing campaign, will help provide a flawless user experience for consumers. We will continue to see significant developments in mobile and more brands pursing its highly-targeted and relevant services as a complement to their traditional marketing efforts.

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Johnny Schroepfer is the strategy and content director at Vitamin IMC and is a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. He can be reached at johnnyschroepfer@u.northwestern.edu.

What the iPad means for marketers

By Nathan Kraft

Unless you’ve been hiding under a rock, you’ve likely heard the tidal wave of hype surrounding Apple’s iPad mobile device.

Fitting somewhere on the mobile device spectrum between a smartphone and a netbook, the iPad features a 10-inch touch screen, WiFi capability (3G optional), a battery with 10 hours of active life and tons of memory storage—all wrapped in a sexy, slim Apple design. Steve Jobs probably said it best when he said the iPad is “far more intimate than a laptop, but far more capable than a smartphone.

Market penetration beyond early adopters isn’t expected until next year—after at least one price cut, although the 3 to 4 MM units analysts anticipate in 2010 is nothing to sniff at. More importantly, the iPad will legitimize the tablet device and lift sales for the burgeoning category, just as the iPhone and iPod did in the smartphone and MP3 player categories. However, The iPad is in a category slightly different than the Amazon Kindle or Sony Reader because of expanded capabilities.

What does all this mean for marketers? Here are a few implications:

• More Apps, New Apps – First the iPhone, then the Android, now iPad. Marketers–who have found applications to be one of the best ways to drive engagement, loyalty and consumer value–will need to re-think their approach to application development taking the iPad’s expanded capabilities and different user needs into account. While most successful smartphone apps serve specific, information-now needs; iPad apps may incorporate more entertainment and social components because of its larger size and different consumer use cases. At the same time, marketers will need to figure efficient ways to deploy applications across a growing number of mobile platforms. As Forrester’s Josh Bernoff recently noted, device fragmentation isn’t going away anytime soon.

• Mobile Gaming Gets Bigger – With its bigger, higher resolution screen, the new iPad is already being touted for its much richer mobile gaming experience than smartphones. Marketers should think of ways to integrate brands into popular games or create games that are an extension of their current brand offering.

• A new channel for traditional media and mobile advertising – This new device was built for media consumption, and will create a new distribution channel for legacy media companies. Though no big media company deals have been inked, large publishers will likely create iPad-specific sites or applications that integrate with new pay walls being introduced on traditional wired sites. Will people pay? It remains to be seen, but as iTunes demonstrates, when the user experience and exclusive content warrants it, consumers are willing to pay by the bite. While most of today’s mobile advertising is limited to text links and tiny banners, mobile advertising on the bigger screen is a new canvas for advertisers. Smart advertisers won’t think of this as another place to plaster irrelevant ads, but will find ways to add value to the consumer’s media consumption experience—taking advantage of social, behavioral and geographic data to deliver relevant messaging yet unavailable in other media, including the internet. This will be a boon to retailers and local businesses, which will be able to efficiently serve richer, relevant offers to small, location-specific audiences. Instead of text links and click-to-call buttons, think of maps, product/service preview videos, etc.

• The social mobile web will expand – Social applications for Facebook and Twitter are already among the most popular smartphone applications. But consumers primarily use these apps to skim through status updates or post a status. The iPad’s larger screen will encourage deeper engagement in social applications and use in coordination with behaviors such as point-of-sale research. This makes consumer reviews and consumer generated product feedback more important than ever, as consumers turn to their social networks for advice on what brands to buy while standing in front of the shelf or showroom.

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Nathan Kraft, MSIMC ’09, is a Chicago-based marketing manager at Cars.com, responsible primarily for social and emerging media at the automotive publisher. He can be reached at nathangkraft@gmail.com.