Brands such as Coca-Cola, Hertz and Starwood are increasingly turning to mobile as a way to reach consumers at live events. The medium's portability makes it a natural fit for connecting with fans during live shows and serving as a real-time link with other digital marketing platforms.
In a recent presentation at the IAB's Mobile Ad Marketplace conference, Russell Wallach, president of Live Nation Network, discussed the close link between mobile and concert enthusiasts. Based on a new study of some 2,000 Live Nation customers, he noted that almost two-thirds own a smartphone and a third (34%) have a tablet -- both figures far higher than the average.
Since last year, the company's mobile traffic has jumped from 9% of all traffic to 23% as of May, while ticket purchases via mobile have risen from 0.3% to 5.9% in the same period. "Smartphones and tablets are creating more buying opportunities for our product," said Wallach, calling them "the driver of our business long-term." He added that Live Nation launched its first app about 18 months ago.
While its mobile users tend to have somewhat lower household incomes than its overall users ($85,000 versus $94,000), he said they are more active customers. Mobile users buy 24% more tickets per year, spend 16% more on tickets a year and go to 29% more events annually. They are also slightly more male and younger, with an average age of 36 compared with the overall ticket buyer's average of 42. They tend to be iPhone and iPad users.
Search plays a key role in driving business in mobile for Live Nation. In that regard, more than a quarter (27%) of people who attend live events search for related information on their smartphones, with 7% regularly using their phones to purchase to buy tickets.
Wallach stressed that mobile has become a key part of sharing the live concert experience, with 42% of smartphone owners using their devices to do things like sharing photos (75%), texting (63%), 40% connecting with friends on Facebook, and one-third calling friends from shows. That activity in turn opens up additional marketing opportunities tied to events.
Plus, mobile can help a brand like Coca-Cola drive on-site promotions at concession stands or other venue locations, he said. Wallach pointed out that a number of companies employ simple marketing programs using location-based services. Coca-Cola brand VitaminWater, for instance, has run a campaign that offers the chance to win upgraded concert seats in return for checking in at a venue via foursquare.
But he also suggested that creating a one-time app that integrates different screens -- including those at an event location -- is more effective than creating a traditional integrated promotion. "What years ago may have cost three or four times more to figure out the activation" can now be done with few additional resources, according to Wallach.
Looking ahead, he said Live Nation aims to broaden its use of emerging mobile technologies, including near field communication and augmented reality to power m-commerce. The entertainment company is also exploring the use of geo-fencing at venues to be able to deliver targeted messages and offers on behalf of advertisers.
(Source: Online Media Daily, 07/16/12)
Online video has grown massively in the past two years to the point where it is no longer just "nice to have," and is instead a vital part of many brands' marketing strategies.
As people are becoming more comfortable watching video online, the power of video advertising is also growing.
To help brands take advantage of this opportunity, social web video platform Ebuzzing has put together seven tips for maximizing engagement with premium video advertising...
1. Keep branding discreet
People have an unconscious aversion to being persuaded, so they are more likely to be turned off by video content that includes huge corporate logos.
Rather than immediately going in for the hard sell and shouting the name of your brand, include logos discreetly.
2. Story matters most
With video advertising, engagement is key. You need your audience to feel involved enough with the content to keep them watching for the entire ad.
Therefore, marketers need to think more about the enjoyment a video offers to a viewer instead of how well it serves the brand.
While product managers may not agree, with online video the story matters more than the product.
3. Kick off with a bang
The window of opportunity for grabbing the consumer's attention is small, so video ads need to hook people within the first five seconds.
The best way to do this is by creating an emotional connection, so give them either joy or surprise. People get bored easily and long drawn-out stories can cause people to stop watching.
4. Build an emotional rollercoaster
Even if your video is quite short, your audience will quickly lose interest if the emotion is constant throughout the ad.
To maintain engagement, the video must briefly remove viewers' feelings of joy and surprise and then quickly restore them again.
5. Have multiple scenes
Having multiple scenes/mini stories is more effective than only having one or two.
Each scene should have its own dose of emotion -- great examples in practice are VW's The Force and Evian's Roller Babies.
6. Surprise but don't shock
While surprising the viewer will help keep them engaged with the ad, people won't share something that is too shocking or crude.
To give your content the best chance of gaining shares online, it needs to be something that people will be willing to have their name associated with.
7. Target people that are prone to sharing and have a voice
Social influencers are often the best people to target when it comes to distribution, as these people have extroverted and egocentric personalities on the social web and are most likely to share content.
(Source: David Moth, Econsultancy, 07/09/12)
Cris Baldwin was 7 when she commandeered her brother's minibike on their Wisconsin dairy farm and first felt the wind in her face. More than 250,000 miles and 42 years later, it's still two wheels and a gas tank for the school administrator.
Baldwin is an assistant dean at Washington University in St. Louis, but that's just one part of her. She's also past president and a chapter founder of the 30-year-old Women on Wheels, one of the country's oldest and largest motorcycle clubs for women at about 2,000 members.
"It really is freeing from your day-to-day obligations, enjoying the moment, not thinking about bills or sending kids to college," Baldwin said. "I wouldn't trade it for anything. It's my two-wheel therapy."
The number of women motorcycle operators in the U.S. has increased slowly to about 7.2 million of about 27 million overall in 2009, according to the latest survey by the Motorcycle Industry Council. About 1 in 10 owners is a woman, said Cam Arnold, a vice president for the trade group.
The American Motorcyclist Association has about 225,000 members. The number of women is under 10 percent, but the number of new women members has increased, driven in part by a higher profile for women on two wheels, more training opportunities and better equipment, said AMA board member Maggie McNally.
Dozens of female-only motorcycle clubs have joined more established groups like Women on Wheels. The makers of bikes and gear are reaching out to women like never before through special events and marketing campaigns that include Harley-Davidson's "No Doubts. No Cages." program.
Women no longer have to endure jackets, gloves and helmets designed for men. And it's easier to find or modify bikes for shorter bodies, said McNally, the AMA's vice chairwoman and the highest-ranking female in the group's 75-year history.
McNally started riding in 1981 after hanging out with friends, thinking up dream cars, in a Troy, N.Y., parking lot, the same parking lot where she now teaches newbies of both sexes how to ride safely.
"I said that I wanted to get a motorcycle, and one of the guys said, 'You can't; girls don't ride motorcycles,'" she said. "I thought, 'He shouldn't be telling a temperamental redhead what she can and cannot do.' I had my permit within a week."
Women are generally more interested in formal safety training than men, with 58 percent of women taking a rider course, compared with 44 percent of men, according to the AMA.
Harley-Davidson, based in Milwaukee, is the market leader in sales to women. The company travels around the country offering training and safety tips for women, including a recent event outside Manhattan's Flatiron Building.
"We've heard from enough women who think they might like to do it but don't know how to get started," said Claudia Garber, director of women's outreach for Harley. "They're worried about things like the bike seems too big and too heavy for me, or maybe I don't know other women who ride."
Roshani Dubel, 33, an eighth-grade math teacher and mother of three in Gilbert, Ariz., was more than ready, but she had to face those fears after winning an essay contest telling Harley why she wanted to learn to ride. She and three others were flown to Milwaukee for mentoring and training last summer.
A video documenting her struggle shows her breaking down emotionally as she tries to walk the bike back and forth. "I'm 5 feet tall. I kept thinking to myself, 'How am I going to ride if I can't even walk this monster?'"
Things clicked eventually. She's logged more than 800 miles on her Harley since, cheered by her students and fellow teachers when she rolled up to her school on it for the first time.
(Source: The Associated Press, 07/05/12)
Flexibility and a Willingness to Go Beyond Terms of a Contract Can Help Properties Stand Out from the Pack
What do sponsorship buyers want to hear in a pitch? What are the attributes of desirable properties?
IEG SR posed those questions to a handful of sponsorship buyers. Below, they share feedback on what properties need to do to stand out from the pack.
Make sure there is a relevant fit. When targeting prospects, sellers need to make sure there is a natural fit between the property and prospect.
"Not every partnership is relevant to a company. I wish properties would consider that before soliciting a company. I've received offers that make absolutely no sense for a luxury car brand," said Susie Rossick, Acura brand manager.
At the most basic level, properties should make sure their audience represents a demographic the prospect is interested in.
"If we are going after 18-to-34-year-old males, it doesn't make a lot of sense to review a sponsorship for 35-to-45 year-old women. I know this sounds simple, but you would be amazed at how many proposals we receive that are off target."
Treat sponsors as partners. To ensure a relationship is a success, properties need to move away from transactional relationships in favor of multi-dimensional partnerships that provide value to both parties.
That is the thinking of Mercedes-Benz USA, LLC.
"We understand Mercedes-Benz is a great name for a property, but we want someone who will not take that for granted. They need to provide what we need, and we will provide what they need," said Stephanie Zimmer, Mercedes' department manager, brand experience marketing.
Zimmer points to the automaker's relationship with Four Seasons Hotels & Resorts as an example of a partnership. In addition to providing customers complimentary rooms, the automaker promotes the hotel, its services and chefs at its own events.
Similarly, Mercedes leverages its partnership with Nike Golf by giving the company exposure at sponsored events.
"We bring them to the PGA Championship and Ryder Cup. We use their product in everything we do."
Be flexible. Tony Schiller, executive vice president of Paragon Marketing Group, looks for properties that are flexible and willing to go beyond terms of a contract.
Schiller points to the NHL New Jersey Devils as an example. The team embraced a new activation idea that was brought up as part of PNC Financial Services Group, Inc.'s renewal discussions despite the fact the program extended beyond terms of the original relationship.
"There wasn't talk of 'We don't do this or we haven't done that.' They embraced the idea and said How do we make this happen?'" said Schiller, who reps the bank.
"The days of transactional relationships are disappearing. If a property can't engage with brands to build a platform, it's not going to be a long-term sponsorship."
Tim Collins, Wells Fargo & Co.'s senior vice president of experiential marketing, sums it up: "Like any good relationship, desirable properties listen, are flexible, go above and beyond and are proactive in providing information and resources."
(Source: IEG Sponsorship Report, 06/25/12)
3Seventy, a provider of mobile engagement solutions, has announced the launch of a new SMS marketing campaign for Harman Management, the owner of A&W Burger franchises with almost 200 locations on the West Coast.
For the initial campaign, 3Seventy teamed up with AFA Krause Advertising and Harman Management.
The franchisees wanted to drive more traffic to specific locations with mobile and developed an offer for one free Papa Burger for customers who texted the keyword BURGER to short code 70626. The response exceeded initial expectation, with more than 36,700 opt-ins during the first month.
"We know SMS coupons are a highly effective way to drive customer response, but are overwhelmed by the success of this mobile campaign," said Amber Hampshire, account supervisor at AFA Krause Advertising.
"This is an excellent example of the immediate results you can see from text marketing and this is a great case study in the quick service restaurant industry," said Carrie Chitsey, CEO and founder of 3Seventy.
(Source: QSRweb.com, 06/29/12)
Luxury is back, but with some caveats. For one thing, affluent consumers are less inclined to scarf up such big-ticket discretionary toys as sports cars and full-priced jewelry than they were before the recession.
Post-recession luxury consumers are, in fact, more pragmatic, per a new study by market research publisher IBISWorld, which finds that the wealthy are looking for practical luxury.
IBISWorld expects certain industries to benefit from this more subdued mien, and to generate more than $1.5 trillion in revenue in 2012 because of it.
The study says that the consumer sentiment index, which measures consumers' feelings about current and future financial stability, fell 25% in 2008 and that it hasn't really recovered.
"Consumers will continue in their budgeting ways. Luckily, there are a slew of options available for the price-conscious indulger," says the study. Benefitting from this will be daily-deal sites and channels like Gilt.com, HauteLook.com and RueLaLa.com that offer steep discounts on designer apparel, accessories and shoes.
Another beneficiary will be the day-spa and nail salon business, which, per the firm, is stealing traffic from high-end health spas. "Instead of dedicating a large portion of their discretionary incomes to a traditional destination spa experience, consumers have increasingly turned to local day spas and nail salons as a way to pamper themselves on a budget," says the study, pointing out that day spas and nail salons have expanded in metropolitan areas and suburbs over the past five years.
Players in the segment are also expanding their experience offerings to benefit from the trend. "For example, hair salon Drybar provides women with $35 blowouts, saving them from having to make a much more expensive trip to an all-inclusive hair salon," says the firm.
Health consciousness is also becoming a luxury driver because of the increase in health consciousness and knowledge of genetically modified foods and pesticides. Luxury consumers are buying organics from grocery stores and farmer's markets.
"It is definitely a luxury since organic goods are significantly more expensive than conventional produce in most locations," notes the study, quoting Rodale Institute data that in Los Angeles a 48 count of green onions costs $48 for organic and $10 for conventional.
The organics boom is also benefiting supercenters and grocery stores with companies Kroger and Walmart increasing their organic offerings just to satisfy customers. High-end reusable grocery bags, expensive natural cleaning products and eco-friendly clothing are also more popular with wealthy Americans.
"In order to be eco-friendly, though, you have to have the money for it: Eco-friendly goods are typically more expensive than comparable conventional products due to their more expensive raw materials."
IBISWorld says gym memberships and fitness classes are also seeing increases in business because of the same trend. The firm says that since memberships are often pricey, participating in such activities indicates an elevated level of wealth.
"Consumers must also have time to spend on fitness and free time can also be a symbol of affluence. As a result, fitness is a luxury people are willing to splurge on," the study says.
(Source: Marketing Daily, 06/27/12)
Wal-Mart Easily Maintains No. 1 Ranking
There were only modest shifts in position among the nation's very largest retailers last year, according to STORES 2012 Top 100 Retailers report. Wal-Mart -- bigger than the next four largest retailers combined -- remains in the No. 1 spot.
Indicative of a supermarket growth trend seen throughout the report, Safeway moved back into the top 10 following a five-year absence. The annual ranking of U.S. retailers by domestic sales, featured in the July issue of STORES magazine, was compiled by Kantar Retail and sponsored by American Express Merchant Financing and SAP.
"Full of peaks and valleys, the scope of the retail industry leaves every company vulnerable to evolutionary changes, which in recent years include consumers' shopping behaviors, price index changes, economic factors, and good old-fashion competition," said Susan Reda, editor, STORES media. "When it comes to grocery retailers, fundamental shifts in how their customers shop -- primarily because of the 'need versus want' argument -- have changed which companies might excel faster than others."
Maintaining its No. 2 spot and still the largest supermarket company in the United States, Kroger has found success nationwide while still maintaining its locally-recognized banners and is looking forward to expanding its footprint even more in the year ahead. Sales at Kroger ($85 billion) grew 9.1 percent from 2010 to 2011.
With sales topping $36 billion on growth of 5.6 percent, Safeway (10) rejoins the top 10 for the first time since 2007. New programs like its mobile-driven "Just For You" platform, which offers its customers a personalized digital shopping experience, are helping boost the company's growth. Safeway swapped positions with No. 11 Sears Holdings on this year's list. The only other change within the top 10 was a swapping of positions by No. 5 Costco and No. 6 The Home Depot.
New to the list this year is Harris Teeter Supermarkets, which secured the No. 80 spot. The Charlotte-based company saw sales grow 4.5 percent to $4.2 billion in 2011, while its store footprint in the United States grew 2.5 percent over that same time frame.
Roundy's Supermarkets (89) also made the list for the first time. Sales at the Milwaukee-based grocery company grew 2.2 percent last year to $3.8 billion. The company went public on the New York Stock Exchange in February.
Grocery chains H.E.B. (26), Whole Foods Markets (37), Aldi (40) and Wegman's (65) also enjoyed double-digit growth last year.
Rounding out the overall top 10 are Target (3), Walgreens (4), CVS Caremark (7), Lowe's (8) and Best Buy (9).
"Food and fuel inflation contributed to the rise of many grocery and club retailers, but there was a real separation amongst those that were able to deliver strong brand and value propositions, including pure value players like Dollar General and Aldi to higher-end companies like Whole Foods Market and Apple," said Alexandra Mansfield, global data manager for Kantar Retail. "Amazon was the real standout this year, continuing to change the landscape and shoppers' expectations by capitalizing on the desire to save time and money, the 'new convenience'. It will not surprise us if they crack the top 10 in 2012."
The 10 largest retailers, based on 2011 U.S. sales (totals in billions), with change from 2010:
1. Wal-Mart, $316,083,000, 2.6%
2. Kroger, $85,491,000, 9.1%
3. Target, $68,466,000, 4.1%
4. Walgreens, $66,330,000, 8.3%
5. Costco, $64,221,000, 8.9%
6. The Home Depot, $62,075,000, 3.1%
7. CVS Caremark, $59,688,000, 3.9%
8. Lowe's, $49,282,000, 2.3%
9. Best Buy, $37,551,000, 1.2%
10. Safeway, $36,923,000, 5.6%
(Source: National Retail Federation, 07/02/12)
