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Do Micro-Targeted Online Ads Work?

February 24, 2021 by Joe Cannon Leave a Comment

subprime attention crisis coverA lot of digital advertising is based on the idea that firms like Google and Facebook have data that allows them to microtarget advertising. These two companies now dominate advertising media. But do they really work? On the one hand, you might expect that advertisers can (and should) be tracking the success of their online advertising. Unlike John Wanamaker, a retailing pioneer who is supposed to have said “Half the money I spend on advertising is wasted; the trouble is I don’t know which half,” today’s marketing managers are supposed to know what works and what doesn’t. They can see which ads bring click-throughs that result in sales. They can track those new customers over time and see if they continue to buy and how profitable they are. In theory.

In a new book, Subprime Attention Crisis, former Google employee Tim Hwang argues that theory is overblown. I have not yet read the book — it is on my Amazon wish list. That said, I did read a pretty good review of the book in Wired, “Ad Tech Could Be the Next Tech Bubble” (October 5, 2020). There I read, that Hwang’s book makes the case that “Microtargeting is far less accurate, and far less persuasive, than it is made out to be…” Most ads are never seen because of ad blockers or poor placement. Many are only clicked on by ad fraud.

I do need to read the book. As noted above, advertisers should be tracking this stuff themselves. But it does give me reason to pause.

Filed Under: Advertising, Chapter 13, Chapter 15, Chapter 16

Advertising in a Pandemic…

April 20, 2020 by Joe Cannon Leave a Comment

A few weeks ago we posted on a couple of articles discussing the question about how to advertise in a pandemic. This week, I thought I would share some favorite advertising that directly addresses the pandemic. It is amazing how quickly some brands (and their agencies) have created powerful ads in a short time.

Check out these ads (links to a YouTube video of the ad you can watch and show your students):

  • McDonald’s: Unskippable Ad is a handwashing reminder that runs pre-roll (before online video). While such ads are usually skippable after 5 seconds, this one cannot be skipped. It was part of a McDonald’s Russia campaign “We are for safety. With both hands.” The ad educates while also letting everyone know that McDonald’s is a safe option.
  • The Ohio Department of Health created “Flatten the Curve” to educate Ohioans (and others) the theory behind social distancing. A great example of how a short video can communicate a great deal. It is also a nice example of Marketing for a Better World (#M4BW). This simple video communicates a lot.
  • Nike: Play for the World, You Can’t Stop Us shows Nike athletes and everyday people who are still playing — though now indoors. Nike has long used its advertising to encourage us to “Just do it” or get out and play. This ad fits the times.
  • Dove has long been a leader (that link shows they have been doing it for more than 15 years!) in re-defining beauty. In a pandemic, they show some “beautiful” front-line healthcare workers in “Courage is Beautiful.” Great fit with its image. Authentic. But maybe uplifting for some of our students who are struggling with the current situation.

Filed Under: #M4BW, Advertising, Chapter 13, Chapter 15, Chapter 16, Promotion

Amazon’s advertising platform turns off customers…

February 20, 2020 by Joe Cannon Leave a Comment

It seems like we talk about Amazon a lot here at Teach the 4 Ps. For several reasons Amazon is a great class example. First, it is a brand that everyone knows and most of our students use on a regular basis. Second, they are at the leading edge of so many new marketing practices. Third, Amazon offers the opportunity for examples that reflect many marketing practices (and many chapters). Today, we are talking about Amazon the online retailer, as an advertising medium. After Google and Facebook, Amazon is growing fast as an advertiser. A Wall Street Journal article earlier this year pointed out that “54% of people looking for a product now begin their search directly on Amazon…” Search advertising has traditionally been Google’s sweet spot.

This article, “Ad Business a Boon for Amazon But a Turn-Off for Shoppers,” (November 26, 2019) points out that Amazon may need to be careful with all the advertising. Some customers are getting annoyed with the online retailer for serving up too many ads. Customers just want the product they are looking for–but they often have to search through many “sponsored posts” before they get there.

This article or example may be used in your marketing classroom in a number of ways. If Amazon wants to do well by customers, is this the right way? Is this customer-oriented behavior (Chapter 1)? An interesting counter-example might be drawn out by asking students if they have ever gone to Amazon looking for one thing, then seeing an ad for a competing product, and ended up buying the competing product. Was that information useful?

The question gets further muddled when the article also notes that ads like this might help Amazon deliver one-day service that customers love (Chapters 10 and 12). It also suggests changes in consumer behavior (Chapter 5). And then of course the article highlights how Amazon is becoming a new advertising medium (Chapter 15). Lots to potentially talk about here.

Filed Under: Advertising, Chapter 03, Chapter 05, Chapter 10, Chapter 12, Chapter 15, Competition, Consumer behavior

Adweek’s “The 25 Best Ads of 2019”

January 30, 2020 by Joe Cannon Leave a Comment

Earlier this week I posted a list of the “8 Best Brand Moments of 2019” from CMO by Adobe. Today, I have Adweek‘s “The 25 Best Ads of 2019” (I am not sure if you will have to sign up to get access — but you should not have to subscribe because I don’t but I do get 5 free articles per month). Once again, an expert identifying a bunch of great examples. Of course advertising examples can fit anywhere (the McDonalds ad below could add to our Place Chapters 10, 11, or 12), but work particularly well to demonstrate positioning (Chapter 4), segmentation (Chapter 4), branding (Chapter 8), Promotion (Chapters 13 and 15). Check out the full list.

I love this commercial for Jif Peanut Butter…

And of course McDonalds always has great advertising campaigns…

Filed Under: Advertising, Chapter 04, Chapter 08, Chapter 13, Chapter 15

MillerCoors sues AB InBev over Super Bowl Ad

April 3, 2019 by Jon Firooz Leave a Comment

Budweiser has a history of creative and amusing Super Bowl ads but this year’s ad which centered on their competitor’s use of corn syrup has definitely been the most controversial ad of the year and one that continues to garner headlines.  By the way, the ad is a great example of the comparative class of competitive advertisements.  The ad sparked a Twitter war between MillerCoors and AB InBev and the latest development is a lawsuit filed by MillerCoors against AB InBev.

You might ask how MillerCoors can sue if they do in fact use corn syrup in their brewing process (which they do).  MillerCoors conducted focus groups and through those groups they determined that most consumers don’t know the difference between corn syrup and high fructose corn syrup which are two different products.  They claim the Bud Light ad deliberately confuses and frightens consumers into thinking the unhealthy high fructose corn syrup is an ingredient in Miller and Coors products.  In reality the corn syrup is used in the brewing process but during fermentation it is broken down by yeast and leaves no corn syrup in the final product.  It’s also worth noting that Anheuser-Busch uses corn syrup themselves in some of their other products but they don’t use it when brewing Bud Light (which uses rice instead).  You can read more about the lawsuit and MillerCoors’ claims in this NY times article.

The lawsuit and continued objections from MillerCoors suggests Bud Light’s campaign was (and is) effective but it also brings up an interesting marketing ethics question.  Is Bud Light’s commercial ethical?  If their statement is factual should they be allowed to advertise that point of differentiation?  Should they consider the fact that consumers would likely misinterpret the message or is that not their problem?

Filed Under: Advertising, Chapter 15, Chapter 19 Tagged With: Comparative advertising, marketing ethics, Super Bowl

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