The 21st Century Ad Bribe

June 25th, 2009 - posted by Kevin

A colleague of mine recently made the point that the broadcast TV business has always been based on a bribe. We’ll give you content, if you’ll look at our ads. I guess you could say that a majority of the 20th century ad biz has been based on this model. After reading the article on Gizmodo that states “buying a 30-second ad during a Fox broadcast of The Simpsons costs less than buying the same ad on Hulu.” I think I know what the 21st century bribe is/will be:

We’ll give you content, if you’ll give us your privacy.

So maybe that is a little dramatic, but let me explain. Right now the ad/content ratio on Hulu.com is a fair trade off for most viewers. I’d go as far to say that I’d rather watch Hulu ads than pick up my DVR remote and fast forward commercials. The concern though, is that if and when online TV viewership grows, they’ll try and cram more and more commercial time into each program. With consumers growing weery of irrelevant ads staring us in the face everywhere we go, there seems to be at least some pressure for content providers to not squeeze so many ads into the mix. In fact, the reduced number of competing ads on Hulu programming probably has a direct impact on the high recall of the advertising messages. And while it is entirely possible that the quest for the dollar will increase the current ad/content ratio on Hulu, I think another scenario is more likely.

My first assumption is that eventually some sort of universal authentication framework will provide the necessary platform for advanced ad targeting systems across multiple online video distribution networks. (Facbeook Connect, OpenID, etc…) Higher targeted video ads will result in higher CPMs, but could potentially yield the same ROI for the advertiser. The higher the CPM, the fewer ads content providers have to sell. The big cost to viewers will be the information they’ll collect and use to target the ads.

Let me put this in context. I am a big fan of CBS’s The Unit. It is one of the few shows I watch every week. I also watch a heavy staple of fishing and outdoors shows on weekend mornings. (Yes, I’m one of those people who actually watch fishing on TV.) If I were Mercury Outboards, I wouldn’t run an ad during The Unit in a million years. There would be way too much waste for it to yeild any ROI. But if Hulu knew that I watched other fishing shows (and that I had “fishing” listed as an interest on my Facebook page), it would make sense to serve me ads for a Mercury outboard. As a consumer, I’d rather watch ads about a subject I’m interested in, and as an advertiser they are reaching a much more targeted consumer. It is a win win situation, right?

We have lived with current the bribe for over 100 years. Content in exchange for eyeballs on ads. But if content providers are asking for more than our eyeballs on the ads, will we be willing to continue to live with the bribe?

My guess is yes.

Posted in:  'Advertising, Hulu, Interactive'   |   1 Comment

Tomorrow’s vision creates today’s culture

May 20th, 2009 - posted by Curtis

Working in an ad agency can give you a unique perspective on the world. You work with a wide variety of personalities on a never-ending list of topics, usually within an extremely compressed timeline. It’s this common thread that we all share here at EP on a daily basis. We call it “controlled chaos”. However, within this spinning world of chaos - there are moments in time that really help to shape our culture. This, recently, was a project called the Tomorrow Project.

The Tomorrow Project was an idea by our Account Planners to reach out to EVERY individual within the agency, no matter which discipline (Client Services, Creative, Media, Interactive, Accounting, and many more), and have them develop what they thought tomorrow would “look” like. I use “look” loosely, as it wasn’t meant to have everyone slice together trailers of the upcoming Terminator movie. It was more, however, just a getting a true perspective of seeing what the world would entail tomorrow - whenever tomorrow is.

The project outcome was unbelieveable. With over 125 entries, our entire building filled up with visions of the future. It was amazing to see the depth of the work that everyone submitted. In a time when there is so much negative press about the economy, global conflict and employment - the work really transcended to another level. It was so positive, so intriguing and so varied. You had Art Directors writing poems and Media Planners painting pictures. No matter what was submitted, it showed the positive outlook on the future. It truly showed the belief in the power of good.

The work was showcased for the entire agency to come and see. Everyone was so excited to point out their work and see what their neighbor in the next cube did. It was a time that brought everyone together to really appreciate what we have and see the future through other’s eyes. It’s this part of the project that I think was the unexpected benefit. It grew our culture and showed that while the chaos can spin in every direction - we are doing it all together and bringing our own unique futures to the table to build on something very special here at EP.

Posted in:  'Uncategorized'   |   2 Comments

“A New Car Company”

May 13th, 2009 - posted by Curtis

In watching one of the many “finales” last night, I was skipping through the commercials when a unique ad caught my eye. I quickly found myself rewinding to watch it in full. Suprising to me - it was a new Chrysler commercial addressing the company’s new direction. While I’m not sure what made me stop and rewind, I can tell you that the ad itself was very impactful.

Using vibrant images, uplifting music and a strong announcer read - the spot really gives the viewer a powerful image of the “New Chrysler”. Overall, I thought the entire spot was very well written using language that was very inviting and open about their current situation. In these troubling times (especially for US Auto Manufacturers), it was comforting to see a company truly acknowledge their restructure and provide communication on their path forward. I will be interested to see how they integrate this messaging into the various brands they own.

The spot closed with three new models - two of which, are electric. After doing some digging, only one of those models is cleared for production at this point (2011 Jeep Grand Cherokee). While the other two are concepts cars, they don’t look too far off from something we could see in the near future. It will be interesting to see how Fiat’s involvement will help shape the company’s future.

With all of the turmoil in the US automotive market, I think an ad like this helps reassure Americans that the “Big 3″ will find their way through this tough economic landscape.

Posted in:  'Advertising'   |   No Comments