Monday, December 29, 2008

In-Flight Ads Flying High

JetBlue Lands at Airline TV To Avoid Fees, Industry Is Using Product Sampling, More Entertainment

Air travel may be getting hit by consumers counting their pennies, but that hasn't stopped advertisers from investing in in-flight TV.

This week, JetBlue Airways becomes the third partner to join Airline TV, an aerial ad network from IdeaCast, an out-of-home company that provides content and advertising to health clubs and Six Flags locations nationwide. Its other airline partners include Continental Airlines and Frontier Airlines.

Airline TV will be Nielsen-rated by year's end. JetBlue, which has offered in-flight TV to its customers since 2006, had been selling its TV platform with a different partner before aligning with IdeaCast. "They already do this for other airlines, so we just saw this as an opportunity to leverage their expertise but also give us a broader view and access to advertisers," said Fiona Morrisson, JetBlue's director of brand management and advertising.

Industrywide, airlines have boosted in-flight entertainment as a means to create revenue to help avoid some of the fees they might otherwise have to charge their passengers in a hard hit travel economy. Delta was the first airline to partner with HBO for an on-demand channel featuring full episodes of HBO movies and original programming, a move that was echoed last month by Richard Branson's Virgin America. The fledgling airline teamed with HBO's "Entourage" for its inaugural flight from JFK to Las Vegas' McCarran International Airport, offering passengers an exclusive look at the season premiere of "Entourage" weeks before its release.

Porter Gale, Virgin America's VP-marketing, said the airline has actually been able to add features to enhance its customer experience at a time when other airlines are charging for extra luggage and bottled water. Passengers who rode Virgin's flights from JFK to Las Vegas in September received noise-canceling headphones, champagne, Godiva chocolates, Kiehl's personal products and Altoids.

Ms. Morrisson said JetBlue has tested product sampling on its flights with several advertisers, including a recent campaign with Maybelline. "Our approach is to give the people everything they need within the cost of the ticket and give them an opportunity, if they need to upgrade their experience, to pay for more leg room or get a premium beverage onboard.

"In these times, it's not just looking at [in-flight TV] as a way to make revenue," she said. "Rather than taking away from the customer experience, we want to add to the customer experience, whether it's through advertising or sampling."

IdeaCast's Airline TV also will be Nielsen-rated by year's end, which Jason Brown, the company's president-sales and marketing, said will allow it to offer specific passenger traffic numbers and even-more-granular viewing data. "We'll know who's watching at every single foot," he said. "Imagine you're delivering a sample, you just saw it onscreen, you read about it on a card on the back of your seat, and the sample's in your hand for two hours. That type of connective tissue is one that builds a brand ambassador."

Cost-per-thousand rates for Airline TV are premium within the out-of-home sector and equivalent to prime-time CPMs for cable TV audiences, Mr. Brown said. Some advertisers are buying the network on a monthly basis, while others have already made annual commitments.


Larson Notes: Its all about discrete revenue enhancements that adds to your experience, not take away. Ads with movies is not what struck me here. What really made me stand up and take notice is the idea of product sampling. Wow! This is great. You’re there, stuck on a dumb airplane, what a time to sample some products. What a great way to test market some new products to a captured audience. What do you sell that could be test marketing to an group of people on a plane?

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
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Wednesday, December 24, 2008

In-Flight Ads Flying High

JetBlue Lands at Airline TV To Avoid Fees, Industry Is Using Product Sampling, More Entertainment

Air travel may be getting hit by consumers counting their pennies, but that hasn't stopped advertisers from investing in in-flight TV.

This week, JetBlue Airways becomes the third partner to join Airline TV, an aerial ad network from IdeaCast, an out-of-home company that provides content and advertising to health clubs and Six Flags locations nationwide. Its other airline partners include Continental Airlines and Frontier Airlines.

Airline TV will be Nielsen-rated by year's end. JetBlue, which has offered in-flight TV to its customers since 2006, had been selling its TV platform with a different partner before aligning with IdeaCast. "They already do this for other airlines, so we just saw this as an opportunity to leverage their expertise but also give us a broader view and access to advertisers," said Fiona Morrisson, JetBlue's director of brand management and advertising.

Industrywide, airlines have boosted in-flight entertainment as a means to create revenue to help avoid some of the fees they might otherwise have to charge their passengers in a hard hit travel economy. Delta was the first airline to partner with HBO for an on-demand channel featuring full episodes of HBO movies and original programming, a move that was echoed last month by Richard Branson's Virgin America. The fledgling airline teamed with HBO's "Entourage" for its inaugural flight from JFK to Las Vegas' McCarran International Airport, offering passengers an exclusive look at the season premiere of "Entourage" weeks before its release.

Porter Gale, Virgin America's VP-marketing, said the airline has actually been able to add features to enhance its customer experience at a time when other airlines are charging for extra luggage and bottled water. Passengers who rode Virgin's flights from JFK to Las Vegas in September received noise-canceling headphones, champagne, Godiva chocolates, Kiehl's personal products and Altoids.

Ms. Morrisson said JetBlue has tested product sampling on its flights with several advertisers, including a recent campaign with Maybelline. "Our approach is to give the people everything they need within the cost of the ticket and give them an opportunity, if they need to upgrade their experience, to pay for more leg room or get a premium beverage onboard.

"In these times, it's not just looking at [in-flight TV] as a way to make revenue," she said. "Rather than taking away from the customer experience, we want to add to the customer experience, whether it's through advertising or sampling."

IdeaCast's Airline TV also will be Nielsen-rated by year's end, which Jason Brown, the company's president-sales and marketing, said will allow it to offer specific passenger traffic numbers and even-more-granular viewing data. "We'll know who's watching at every single foot," he said. "Imagine you're delivering a sample, you just saw it onscreen, you read about it on a card on the back of your seat, and the sample's in your hand for two hours. That type of connective tissue is one that builds a brand ambassador."

Cost-per-thousand rates for Airline TV are premium within the out-of-home sector and equivalent to prime-time CPMs for cable TV audiences, Mr. Brown said. Some advertisers are buying the network on a monthly basis, while others have already made annual commitments.


Larson Notes: Its all about discrete revenue enhancements that adds to your experience, not take away. Ads with movies is not what struck me here. What really made me stand up and take notice is the idea of product sampling. Wow! This is great. You’re there, stuck on a dumb airplane, what a time to sample some products. What a great way to test market some new products to a captured audience. What do you sell that could be test marketing to an group of people on a plane?

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488
larsonassoc1975@yahoo.com
http://componga.com/larson.html
http://member.merchantcircle.com/larsonassociates
http://teamcircle.ning.com/profile/HowardLarson
https://twitter.com/LarsonAssociate

Tuesday, December 23, 2008

KitchenAid will add DVDT to marketing mix

KitchenAid, a division of Whirlpool Corp. will launch a new DRTV campaign non November 3rd to promote is high-end stand mixer.

Produced by direct response ad agency R2C Group, which has worked KitchenAid for more than 5 years now, hopes to drive sales though a 1-800 number, online and at the retail level.

The campaign is being released in the forth quarter because the mixer is a popular gift possibility. The company actually filmed real families around the country making if a mini personal testimonial.

The creative consists of 60 second, 120 second and a 28.5 minute spot. A transactional microsite www.buykitcheaid.com also has been launched for the campaign

R2C has put an operations team in place to keep a consistent reporting method between the site and the call center that they are using.

Larson Notes: Let’s see how many different channels are they incorporating into their campaign? Ad spots, info commercial, 800 number, microsite. That is 5 plus retail which will probably include point of purchase work. Not too shabby. The more ways and levels that you can be hitting people the better off you are. With your product if it works at Christmas, how many ways can you reach out and touch people?

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488
larsonassoc1975@yahoo.com
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Monday, December 22, 2008

Kellogg’s Keeps Marketing High and Sales Sore

As the economy goes downward Kellogg Company is finding it a sweet deal. Kellogg’s reported double-digit increases in third-quarter earnings. They credited stepped-up marketing support for the gains. AS well as help from companies like Wal-Mart.

Kellogg's net earnings were up 12% to $342 million

"Our success was driven by price realization, effective advertising and continued business momentum," Kellogg CEO David Mackay told analysts during the earnings call. "We achieved solid [third-quarter] results, which were above their long-term targets despite the economic slowdown, commodity inflation and higher tax rate."

Kellogg has been aggressively increasing advertising over the past year, spending nearly 9% of sales, or more than $1 billion. John A. Bryant, exec VP-chief financial officer, noted that competitors spend about 5% of sales on advertising. But moving forward, he said, the company said it is scaling back in terms of increase and will be focusing on the efficiency of its spending.

"We are also driving a series of initiatives across brand building to further improve the efficiency and effectiveness of lead investments in the new media environment," he said. "We began to see the benefits of these initiatives during the third quarter."

Together with companies like Wal-Mart, Kellogg has some of its retail partners willing to advertise its products for free. At the same time, the company has been advertising its cereals with milk as a meal for 50 cents; Wal-Mart has taken up this messaging as a way to pitch its own in-store value proposition.

"Wal-Mart has been constantly pushing their angle as being the retailer that gives the best value," Mr. Mackay said. "They paid for the advertising that I think featured an array of Kellogg products, and suggested that the consumers could save $900-plus a year."

Larson note: Coop advertising to sell more. Kellogg Company and Wal-Mart selling cereal with MILK which they sell (of course). Who can you work together with to share the expenses of your advertising and marketing? Who can you form a synergy with? As a Guerrilla Marketer I really like the 9% figure, although something over 10-15% is even better. For a company I am really impressed by Kellogg’s boldness and agressiveness to marketing!

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
http://member.merchantcircle.com/larsonassociates
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Friday, December 19, 2008

Virgin America Expands its Frequent Flier Program?

Domino’s Pizza, McDonald’s and Hardee’s have all signed up as advertising partners for a new site witch will initially serve the St. Louis Mo market. The site helps hungry people find a place to eat within their area based on the location, type of food and the price. Moosylvania plans to roll out the same service to other US markets early next year.

Larson note: Can’t say this idea has not been tried before. Heck a company I was doing work for 9 years ago floated out the same basic idea for multiple industries. Perhaps with better controls and a little Web2 help it can work for those involved

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
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Thursday, December 18, 2008

Clear Channel's Digital Offering Gains Traction

'IHeartRadio' iPhone is Among Top Most Added applications for the iPhone.

Looks like radio is starting to figure out digital media. IHeartRadio, a streaming radio application developed by Clear Channel for the iPhone, has become the 10th most-added free application in the iPhone's App Store.

iHeartRadio is currently streaming 12 Clear Channel stations, including Z100 in New York and DC101 in Washington, with plans to expand to more than 20 by year's end.

Driving that rapid growth is the home-page placement iHeartRadio received in the App Store on Oct. 21, when downloads surged from the 2,500 range to 19,000. The app is currently streaming 12 Clear Channel stations, including Z100 in New York and DC101 in Washington, with plans to expand to more than 20 by year's end.

Evan Harrison, exec VP of Clear Channel's online music and radio unit, said the app has also grown the stations' cumulative streaming audience by 3% to 5% in its first two weeks.

"It's extremely encouraging ... that people are turning to our network and also experiencing different kinds of products not available on air," he said. IHeartRadio joins a suite of music-discovery sites Mr. Harrison's team has rolled out in recent months, including eRockster, an indie-music site launched at Coachella; Pride, a site aimed at the LGBT audience; and iHeartMusic, iHeartRadio's sibling site, still in beta, that aggregates all 1,100 of Clear Channel's stations.

The incremental growth iHeartRadio has seen in just two weeks could lend some acceleration to the Buy From FM platform developed by Clear Channel and Microsoft, which currently allows radio listeners to purchase songs directly from FM tuners on the Microsoft Zune across 35 different radio stations. That initiative, coupled with a recent study from Paragon Research that found time spent listening to the iPod down 13% among 14- to 24-year-olds, has provoked major radio groups such as Clear Channel to ramp up their efforts to monetize their online platforms.

Mr. Harrison said Clear Channel stations have collectively added 10,000 new advertisers on a local and national basis in the past year based on the growth of their streaming online audiences. So a station that averages 35,000 and 50,000 on Arbitron's portable people meter, which measures time spent listening to radio on-air or in cars, can gain an additional 10% in audience through streaming. "You can certainly see the day when streaming listening is just as impactful as terrestrial," Mr. Harrison said.

Larson note: Well all you people and businesses aiming at the 14-24 year old market, where are you? Your competition is there, would you be? Get a data sheet and rate sheet and see if this is a place some of your marketing money should be going.


Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
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Wednesday, December 17, 2008

Gander Mountain adds private credit card

With the recent launch of Gander Mountains catalog and e-commerce site, the sporting and outdoor goods retailer has signed a private label credit card agreement with Alliance Data Systems Corp.

Alliance has provided co-brand credit card services to Gander Mountain since 2005 and will continue to support that relationship. Under the new agreement Alliance will also provide the retailer with private label credit card and database marketing services, analytics, customer segmentation and modeling. Alliance will also build and maintain a consumer marketing database for the chain and assist Gander in promoting and running its reward program.

Casey Ramm director of marketing said “The goal is to get people to come back into the store as often as possible and reward them for coming in”

The cardholders for both the co-brand and private label Gander Mountain credit cards are eligible to earn Rewards Club points which can be used for savings at Gander Mountain stores or its e-commerce site.

It operates 115 stores in 23 states and had close to 1 Billion in sales in 2007


Larson note: With the idea being to get people to but things Rewards Programs are a way to tie them in to you, and who better to reward than current customers you already have. B2C is a big user of this but I ask, why not B2B rewarding your customers at other times other than Christmas? Start to think out of the box all you B2Bers, there are things you can do. Why not your own rewards program? Every business I know should have their very own club. Sales people have for years used sports tickets to professional sporting events, Why not concert or opera tickets? Here in Chicago you could get dinner tickets on a ship out on Lake Michigan. Think out of the box


Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
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Tuesday, December 16, 2008

Wal-Mart has new E-commerce site in Brazil

Wal-Mart has launched a new e-commerce site in Brazil. Wal-Mart opened its first store in Brazil in 1995 and now has 322 outlets in 17 of the country’s 26 states. It is reportedly looking to expand in the vast central states of the country where it is currently non-existent.

Larson note: Love em or not Wal-Mart knows how to move into a region and take over their market.

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488larsonassoc1975@yahoo.com
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Wednesday, November 26, 2008

Kellogg’s Keeps Marketing High and Sales Sore

As the economy goes downward Kellogg Company is finding it a sweet deal. Kellogg’s reported double-digit increases in third-quarter earnings. They credited stepped-up marketing support for the gains. AS well as help from companies like Wal-Mart.

Kellogg's net earnings were up 12% to $342 million

"Our success was driven by price realization, effective advertising and continued business momentum," Kellogg CEO David Mackay told analysts during the earnings call. "We achieved solid [third-quarter] results, which were above their long-term targets despite the economic slowdown, commodity inflation and higher tax rate."

Kellogg has been aggressively increasing advertising over the past year, spending nearly 9% of sales, or more than $1 billion. John A. Bryant, exec VP-chief financial officer, noted that competitors spend about 5% of sales on advertising. But moving forward, he said, the company said it is scaling back in terms of increase and will be focusing on the efficiency of its spending.

"We are also driving a series of initiatives across brand building to further improve the efficiency and effectiveness of lead investments in the new media environment," he said. "We began to see the benefits of these initiatives during the third quarter."

Together with companies like Wal-Mart, Kellogg has some of its retail partners willing to advertise its products for free. At the same time, the company has been advertising its cereals with milk as a meal for 50 cents; Wal-Mart has taken up this messaging as a way to pitch its own in-store value proposition.

"Wal-Mart has been constantly pushing their angle as being the retailer that gives the best value," Mr. Mackay said. "They paid for the advertising that I think featured an array of Kellogg products, and suggested that the consumers could save $900-plus a year."

Larson note: Coop advertising to sell more. Kellogg Company and Wal-Mart selling cereal with MILK which they sell (of course). Who can you work together with to share the expenses of your advertising and marketing? Who can you form a synergy with? As a Guerrilla Marketer I really like the 9% figure, although something over 10-15% is even better. For a company I am really impressed by Kellogg’s boldness and agressiveness to marketing!

Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488

larsonassoc1975@yahoo.com
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Tuesday, November 25, 2008

Vail Resorts Creates Better SEO Site

Want to go skiing? What to go to Colorado and go skiing?

Vail Resorts have parternered with search agency iCrossings to develop and launch www.snow.com which will serve as an entry point for all Vail Resort Locations.

Elizabeth Lee, director of online marketing and sales for Vail Resorts said that the goal of the launch is to create a better prospecting tool for customers and increase SEO through paid search.

The idea is to be able to better target people who were searching online for skiing and to be more specific Colorado ski vacations and not loose out to other Colorado ski venues.


Larson note: Knowing who you want to attack is haft the battle. How to do it is the other. I personally tested a search on the site and found it wanting. The site did not come up when I put in Colorado ski and Colorado resorts but did come up with ski Colorado and Colorado skiing. The idea is a good one to co-op a SEO plan and key words.

Who could you be partnering with who augments with your business and creates a synergy?


Howard Larson
Larson & Associates
Telesales & Target Marketing Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488
larsonassoc1975@yahoo.com
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Wednesday, November 19, 2008

Virgin Atlantic Airways launches “Airphoria”

Virgin Atlantic Airways new US campaign called “Airphoria” will be highlighting the experiences of flying Virgin America, regardless of class. It was created by McKinney, Virgins agency of record and the campaign stated around the 1st of October and will be running through February of 2009. They will be targeting business travelers who might choose the airlines Upper Class or Premium Economy services. They will also try to tie the campaign in with the leisure traveler who tends to ride economy class.

Larson note: Not sure if their idea on one push to catch all is a good one. I like the concept of positioning when going on a brand marketing attack. Trying to hit both the business traveler as well as the causal tourist might not make it. What would you do?

Howard Larson
Larson & Associates
Target Marketing & Telesales Professionals for new account acquisition
Making good businesses great and great businesses even better
847-991-0488
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