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April 25, 2005

Too Little Too Late

FOX plans to become the first major television broadcaster to offer advertisers the opportunity to customize commercials with different voiceovers, graphics, etc. For example, a Budweiser commercial could be customized to refer to the score of the football game viewers are watching. Or Campbell’s Soup could insert a graphic with the current frigid temperature in the city where the ad is airing. [SOURCE: Wall Street Journal article (sub req’d) | April 21, 2005]

And, some high-end advertisers are beginning to offer high-def versions of their commercials to air on HD broadcasts. Citing spendy incremental costs and low household penetration, very few advertisers are currently offering high-def commercials. HD industry experts believe ad agencies would develop more high-def commercials if they better understood the potential of the medium. [SOURCE: Wall Street Journal article (sub req’d) | April 25, 2005]

Hmm ... no matter the customization or if it’s in high-definition, television commercials will not affect my purchasing behavior. Yours?

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Comments

Congratulations on becoming immune to TV ads. You are in the minority though.

Case in point: A local car dealer (Sundance Chevrolet in Michigan) advertise a lot on TV and is in fact the biggest local advertiser. I hate their ads. But they sell a lot of cars. In fact, according to some sources, they sell more cars than the 2 other local competitors combined. And almost all of their advertising dollars is spent on TV.

When one sees their ads (really lousy ads too) 500 times a year, guess what name comes up in their mind when they are looking to buy a new car?

There are 2 tricks to TV advertising, imo. Make an ad that has a good impact. And then frequently show that ad to people.

Many people are loyal to the same TV programs and tune in day after day to watch the same show. And so, its easy to get high points on frequency. Where most people fail is making ads with impact.

I think, I've become immune to frequency, and TV ads that are frequently shown won't change my behaviour one bit.

But, an ad with good impact will affect my behavior. The latest ad that made me take action is the ad by http://www.one.org/

Ankesh ... you really think I am in the minority when it comes to TV ads no longer having an effect? Hmm ...

Now, I bet Sundance Chevrolet sells more cars because of the great service they provide to current and prospective customers more than the great amount of money they spend on buying advertising time.

I agree that the frequency of seeing an ad can create awareness and get a product in the consideration set of a consumer. But the customer experience will play a greater role in going from awareness to preference. And preference is where sales happen.

Not only am I immune, but I'm impervious. I started a log the day I bought my TIVO (01/12/05). Since then I have accidentally watched only 14 commercials in over 90 days. I don't want to be interrupted anymore. If the car dealership down the street is so great, I'll hear about it.

And on a car dealership note: Mini Cooper has only one or two dealerships per state, reducing the need to shout about which one to go to, and relying on the strength of the corporate brand to carry the day. And Saturn actually requires their dealers to own every dealership in a region to reduce infighting.

If I see one more silver car barreling down a lush mountain road I'm going to puke.

"Now, I bet Sundance Chevrolet sells more cars because of the great service they provide to current and prospective customers more than the great amount of money they spend on buying advertising time."

Actually, from what I've heard, their service isn't that good. I personally haven't bought a car from them. So can't speak from first hand experience. But from what I hear, they use all the tactics in the books that has given a bad name to car salesmen. They do have low car prices, but its not too low too.

The problem is, hardly any competitor of theirs advertises as much as them. So even though they have lousy ads, they are better recognized and remembered than their competitors - who have no ads.

I side with Laura Ries, when she says that TV advertising (and other mass media advertising) can't build a brand as before, but they sure help a lot in maintaing the brand. (The only way TV advertising can build a brand anymore is if the competition doesn't advertise much.)

You know, I would love to get my hands on the godaddy.com sales figures... if and by how much their profits have increased or decreased after their TV advertising...

The problem is, hardly any competitor of theirs advertises as much as them. So even though they have lousy ads, they are better recognized and remembered than their competitors - who have no ads.

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