Tuesday, February 23, 2010

Geo-Fencing is the new advertising stratedgy

Take a Step Closer for an Invitation to Shop


Do you think advertising has already gone to far? Whether your watching your favorite television show and it cuts out to have 10 minutes of commercials, or your in the car listening to some tunes only to have the song end and change to more tedious radio spots to pop-ups on your computer while your broswing different sites, advertisements are EVERYWHERE. Well as technology grows so do the ideas of different ways to advertise and it is drastically doing so. While there are new social media networks to advertise on the internet including Twitter, Facebook and Digg these sources of media are available as applications now on cell phones. This makes news, media and advertisements very conveinent for people to recieve on-the-go.


Many companies including NorthFace have had trouble bringing customers into their store recently with the economy. Advertising today has dramatically change. The usual TV, Radio and Magazine ads just don't cut it anymore. Now stores like NorthFace are trying new tactics in order to bring in customers. A new way of advertising that NorthFace is going to test out is Geo-Fencing. According to Wikipedia a Geo-fence is a virtual perimeter on a geographic area using a location-based service, so that when the geo-fencing device enters or exits the area a notification is generated. The notification can contain information about the location of the device and might be sent to a mobile telephone or an email account. When companies use geo-fencing through cell phones it basically sends people text messages or e-mails as soon as they get near a store. This text message/e-mail will send the person an advertisement, coupon or discount when there in the vacinity of the certain store.

Like I said earlier most phones now have the internet which means they also have e-mail. Most of the time when I recieve an e-mail it's spam, which I depise! Would these texts be just like it? Will I walk through NYC or downtown New Haven, CT and be in the vacinity of many stores and have my phone start blowing up with annoying messages? I'm sure if I walked passed a coffee shop and recieved a coupon for a free coffee I would walk in and get it and be happy, but I doubt it will be that worth it. Although this article states that you can opt in or out to this new advertising tactic but as much as I try to get rid of spam or put my name/number on the do not call list, it is never enough.

Tuesday, February 16, 2010

Slim and None


Being in the entertainment business and a loyal consumer of many fashion magazines including Vogue, inStyle and Allure to name a few, I see models in advertisements everyday. At work we have celebrities come into the studio on a regular basis who we then promote through our company to be “idols” for all of our viewers. The point I want to bring up is that whether you’re a model, celebrity or an everyday person, people look up to you and your image.

In today’s society our “idol’s” that we look up to in the entertainment industry may not be portraying the right image. Models in particular have the overwhelming pressure to be thin, paper thin. As Ms. Rocha addresses in the "A Model's Propects: Slim and None it is stereotypical that a model needs to thin and if your not you don't get hired. This has also applied to many A-List celebrities like the cover of the People Magazine photo "Pressure To Be Thin."

I think that the problem here is the that when you chose to model your going in knowing the consequences. When it comes to modeling if you're thin you win. These teenagers/women are too skinny and tend to have a whole set of unhealthy behaviors that go with it. This doesn't seem like it will end anytime soon even though models being too thin is advertised in the media negatively.

http://www.nytimes.com/2010/02/16/fashion/16DIARY.html?ref=style

Monday, February 8, 2010

How to Reach Affluent African Americans

By not targeting this key segment, some marketers may be missing out
Feb 2, 2010

According to Mark Dolliver, many marketers have left a significant advertising demographic untapped: The Affluent African American, also referred to as the AAA. Dolliver’s article discusses how most luxury marketers are missing out on this lucrative and uncharted market “even though such households now deploy some $87 billion in purchasing power”. He also addresses how brands smart enough to go after AAAs have not done it well.
There are several reasons leading to the failure of certain AAA targeted marketing campaigns, some of these being: a failure to address contemporary civil concerns in utilizing out-dated messages and themes, failure to acknowledge the matured AAA consumer tastes, choosing the wrong media, and a lack of campaign sincerity and diligence.
To support this, the article uses an example of a recent Gucci campaign featuring the singer, Rihanna, in an attempt to tap into the AAA market. The article argues that although Rihanna is popular among the African American community, the choice is unfitting as if the brand used Brittany Spears for a campaign targeting affluent Caucasian Americans. I couldn’t agree more. Relating this to my life I ask, would my mother, who is 46, relate to a Gucci ad with Miley Cyrus or Nicole Kidman? To me, the answer is obvious considering my mother relatively unfamiliar with Cyrus.
In advertising, there are several important things to consider when targeting ANY demographic: is the message dated, or contemporary? Is the spokes person going to be relatable to the intended consumer? Is this chosen medium appropriate for the targeted demographic, and will they notice the absence of the message in more mainstream media? This article hits on all of these important concerns.
I believe that because so few luxury brands have been able to successfully address this lucrative consumer demographic, there is a huge amount of money to be made for a company that successfully reaches the AAA market. Considering the adversity this demographic has overcome, I am willing to guess that they ready and willing to celebrate and spend what they have worked so hard for. The first companies willing to initiate a partnership with such markets have everything to gain and nothing to lose.

Tuesday, February 2, 2010

Long Tail Article

At first I was very overwhelmed when reading this article. As I went through it again and again I decided to break it up into pieces. I figured during this shot at it I would try to figure out each of Chris Anderson's rules. His first rule stats to make everything available, second rule cut the price in half and third rule, help me find it. From what I make of these rules he is trying to say that to create a thriving Long Tail business you need easy accessability, make prices affordable for everyone and spread the word on how to find these things.
Easy accessability comes faster now then ever with the use of our technology. Like Anderson said you cannot get certain documentaries at Blockbuster because they are not on high demand. But a company such as Netfix's isn't a store that only has a certain amount of space to hold a certain amount of movies. If a new company comes up with a way to have something all existing companies do not have it's a Long Tail business.
Most prices now-a-days are at LEAST doubled then what was spent to make them. Anderson's second rule says that prices should be cut in half and lowered more. He uses the example of iTunes; a single song costing (at the time of the article) $.99 cents. Anderson states "ask the labels and they'll tell you it's too low: Even though 99 cents per track works out to about the same price as a CD." Before iTunes, people would normally have to buy a whole CD just to get their couple of songs they really want to hear, but the labels would still make the full CD amount. Single songs are really worth 65 cents giving the label companies a whole profit of 34 cents PER SONG! This profit is nothing compared to the content thats on the Long Tail is all the older material that had made it's money back in the day when it was a hit, or songs that were cheap to make from the beginning.
"Great Long Tail businesses can then guide consumers further afield by following the contours of their likes and dislikes, easing their exploration of the unknown." What Anderson means by guiding are companies like Rhapsody that have a seperate box next to a product or song in this instance that has "similar likes" to what you are viewing at that point. This can lead to consumer to buy more things because the credited site they trust is telling them that this is another popular item if you like the one you are viewing. This is just one of many tatics to network your business' products, but also proves that this drives the demand down the Long Tail.
I have to agree with Chris Anderson. The secret to surviving a Long Tail business is answered in these three rules; make everything available, cut prices in half, and help me find it. It had never crossed my mind why and how Netflix's did so much better then Blockbuster until reading this article. I didn't realize why the local bookstore in my town closed 5 years ago until Anderson showed me that there's more to offer in online bookstores... The Long Tail is what the world has come too!