Interviews

Whats ahead for political adverting? -- Exclusive Interviews

In a series of exclusive interviews with $ALE$-FAX NEWS, industry insiders and experts predict that this fall's mid-term election season will see a plethora of advertising for political campaigns, but there still remains debate over which medium will see the most ad dollars or how and whose media budgets will be used directly.

New Rules for Political Advertising

According to James Thurber, American University's Distinguished Professor of Government and Founder/ Director of the Center for Congressional and Presidential Studies at American University, the fact that so much attention will be paid to candidates this voting season is perfectly natural due to the outcome of the 2008 election. "There's always a decline to the party in power," he says and cites the rarity in U.S. history of such an event. Professor Thurber adds that this season also will be especially different because it will be the first election since this year's Supreme Court ruling in the Citizens United Case which overruled campaign finance rules preventing corporate, both profit and non-profit, funding of political advertising. In essence, Professor Thurber explains, not just campaigns will be buying ads. "There's going to be more citizen groups and businesses involved," he says. "The restrictions on 527 groups are off." The term "527 group" is an independent organization that works to
influence an election and is not officially connected to any candidate; 527 is in reference to the section of the tax code for such a group.

For Professor Thurber, the effect is already visible. He points to recent ad campaigns from different private organizations, like the Chamber of Commerce, that have highlighted hot button political issues. "We've already seen those for issue centered organizations pay $100 million for ads," says Professor Thurber, citing recent campaigns by groups like the U.S. Chamber of Commerce as examples. He adds later: "There's a seamless web between issue campaigns and candidate campaigns."

Ken Goldstein, Professor of Political Science at the University of Wisconsin-Madison and Director of the Wisconsin Advertising Project, tells $ALE$-FAX NEWS that even without the addition of political advertising by private groups, spending on ads would have increased anyway. "It's the most popular story of every election season," says Goldstein. "The numbers are always record breaking. I would expect record levels this season as well. "

A big year for spending, but campaign budgets are never what they seem

According to Scott Perreault, a Minnesota-based political advertising consultant who has worked on numerous campaigns on all levels, though there may be the belief that political candidates' campaigns have plenty to spend on advertising, most actually don't. "It's transient," he says. "A political campaign is cash in advance. "

Perreault explains that despite bitter party lines and the classic stereotype of politicians, most candidates are well meaning and driven by sincere reasons. "It doesn't matter where you are on the political spectrum, they all have heartfelt stories and motivations," he says. But such aspirations can inhibit practical planning for advertising. "They don't know what the reality is," says Perreault, adding later: "You don't have a budget, you have dreams." Perreault tells $ALE$-FAX NEWS that most political campaigns plan to buy most of their ad placements for the last two weeks before the election. "Everybody is saving for the last two weeks," he says. "[Campaigns] budget for the last two weeks and work their way back." He adds that most will spend their time until August focusing on fundraising.

But according to Professor Thurber, because of the recent highly politicized atmosphere, he believes that we'll probably begin seeing ads breaking well in advance of the election. "The advertising is going to be earlier, there's going to be more of it, and it's going to be dirtier," he says, explaining that from the looks of things the general attitude in the ads will be negative. "When it goes negative, they spend more. It's going to be long and dirty. This is going to be a big time for spending."

Most Effective Medium to Reach Voters?

Depending on whom you ask, the opinion on the most essential medium to have varies. "We don't actually know [how important advertising is to political campaigns], but no one is willing to take that risk [of not using it]," says Professor Goldstein. [The choice of media] depends on what you're trying to do. I know [of] no study that definitively shows one thing over another."

According to Perreault, a well-rounded media presence is the most effective approach. "It's not just television, it's not just radio, it's everything," he says.

It's a sentiment Professor Thurber agrees with. "These days you've got to do it all," he says, explaining that that includes digital. "We do know that you can't run a campaign without an Internet presence," he adds. According to Peter Pasi, Executive Vice President for emotive llc, a firm that specializes in getting primarily right of center political campaigns get their message out in the online world, having digital presence is a must for any political advertiser. " It is as though you're not running a real campaign without it," says Pasi. "Studies show that a majority of voters turn to the web first for information about a candidate. Having a strong advertising campaign online allows you to tell your side of the story - and also helps voters find you."

Pasi credits the extensive use by both candidates in the 2008 Presidential campaign with highlighting the use of online political ads. "You have a lot of campaigns who are seeing that online advertising when done properly is very cost effective when compared with traditional methods," he says. "There have been enormous advances in targeting online ads, and the ad networks have made the political marketplace a priority for new business. " He adds later: "I think you'll hear stories about highly targeted messages and the use of narrowcasting online. Campaigns will develop dozens of messages and use the technology available to them to deliver those messages to persuadable voters based on age, ethnicity, household income, and interests."

According to Danielle DeLauro, Senior Vice-President of Sales & Marketing for the Cabletelevision Advertising Bureau, a trade organization for the cable TV industry, politicians have the same goal as other advertisers. "Political advertisers are similar to commercial advertisers in they are looking to deliver their message to the right target, at the right time, in the right place," she says. DeLauro explains the key to a successful voter-reaching medium, like cable, is the ability to not only attract "highly engaged, politically savvy audience of influencers" across a broad range of demographics but also in specific geographic regions. "This allows political advertisers to minimize waste and therefore maximize their campaign dollars," she says. It also allows for a media presence to offer a presence for local candidates. "We anticipate that the upcoming political season will be strong, as there are many hotly contested local elections," says DeLauro.

But no matter what media used, reaching voters is not the same as reaching consumers. "It's a different beast and you cannot approach it the same way," says Perreault.

"You're not selling soup," says Professor Thurber. "You're selling an idea in a democracy that affects everyone."

---D.O.

Brands Strive to Reach Hispanic Consumers

Earlier this month, Chicago based wireless carrier U.S. Cellular announced that it had tapped Lapiz as its Hispanic agency of record. An official statement released exclusively to $ALE$-FAX NEWS by the nation's fifth-largest full-service wireless carrier states: "We believe that our partnership with Lapiz will position our programs in a compelling manner with Hispanic consumers and that the power of our customer-focused messaging and business model will shine through in all of our communications."

A Growing Group of Consumers

According to Gisela Girard, Chair of the Association of Hispanic Advertising Agencies, such announcements are just another sign of the increasing demand by advertisers for insights into Hispanic marketing; noting the swell of independently owned Hispanic specialized agencies that are catering to brands. "We are seeing many more new entrepreneurs opening agencies across the country," she says, adding that it's all in relation to the ever-expanding number of Hispanic shoppers in the U.S. "The 2010 Census will again, similar to the 2000 Census, notate the exponential growth of the Hispanic consumer market."

Felipe Korzenny, Ph.D, Professor and Director of the Center for Hispanic Marketing Communication at Florida State University, tells $ALE$-FAX NEWS that it makes sense for marketers to court Hispanic consumers, who, as a group, are wealthier than most countries. "U.S. Hispanics have about one trillion dollars in spending money, about a 10th of the U.S. economy," Korzenny says, adding: "Marketers are looking for opportunities to grow their brands and Hispanics represent a very interesting way of doing this. Also, CEO's are getting the message that there are groups in the country that can mean revenue but have not been properly addressed. Basically, the 'general market' is dead, the new multicultural market is slowly replacing it."

The Difference between Hispanic and General Marketing

"The core difference between Hispanic marketing and the general market approach is very simple. It's all about insights - the consumer insights," says Girard, who adds that one of the key considerations is language preference. Another is understanding the cultural differences and similarities between the Hispanic and general market. "Culture is a bundle of variables that include obvious aspects like dress, food, language, and architecture, and aspects that are more subtle and hard to observe like values, beliefs, attitudes, etc. What makes marketing to Hispanics different is that by understanding the culture both in its objective and subjective dimensions you are able to use a 'shorthand' for communicating with members of the culture and basically communicate better and more effectively," says Korzenny. "Marketing assumes consumer understanding, and understanding the culture is a great part of it."

According to Korzenny, Hispanic marketing originally amounted to nothing more than English advertisements translated to Spanish. "Now it goes far beyond that, it is cultural marketing," he says. "It is not about the language alone anymore but about understanding what makes consumers tick, as a culture." One recent example is Coca-Cola's "Unleash Your Dreams" campaign which launched last March as the Hispanic version of its "Open Happiness" branding effort. The effort included TV spots in which Hispanic adults (while drinking a Coke) see their children's successful futures flash before their eyes. In one, a little boy grows into a college professor; while another is of a little girl becoming a surgeon. Both adult versions of the children turn and break from their dreamy triumphant futures to thank their parents in Spanish. "[The campaign] recognizes the hard work of Hispanics and their achievements in the United States at a time when anti-immigration sentiment is strong and the self-esteem of many
Hispanics has been hurt," says Korzenny. "Thus, via cultural insights, Coca-Cola helps elevate the self-esteem of the Hispanic consumer and reinforces the power of its brand."

Such efforts rely on traditional media channels to reach their targets, which Girard explains isn't too difficult. "We have seen a proliferation of Spanish language media - particularly radio and print to serve the marketplace," she says, but also notes growth in non-traditional media as well. "Social marketing, grassroots' efforts, events and promotional activities are now gaining larger shares of the media budget based on their effectiveness as consumer 'touch points' - simply, we need to reach them where they live, work, play and shop."

Of course, an advertising campaign that overtly reaches out to the Hispanic consumer does run the risk of offending its intended target. "Stereotyping is always a danger," says Korzenny. "Cultural marketing is about directing messages to the mindsets shared by many. Those who do not understand the culture well are likely to stereotype. This is similar to when people learn that I am from Mexico and immediately say 'oh... I love tacos.'" For Girard, the key to preventing such a mistake requires learning about the audience. "If advertisers and corporate America believe they know how to reach this consumer without doing research, it will fall into the trap of stereotypes and offensive messaging," she says, adding: "I can't stress enough, that advertisers and corporate America need to engage the brain trust of Hispanic-specialized agencies."

How to Attract Hispanic Consumers

For the media, both Korzenny and Girard recommend studying and creating content for Hispanic audiences to attract their attention, which advertisers crave. "Learn the new folkways of the new identity of Latinos in the United States and create programming that reflects these lifestyles," says Korzenny. "The programming needs to be relevant to the consumer in order for them to tune in," says Girard. "Research is important so that media outlets are able to assess those elements that help them to better attract listenership, viewership and most of all attract advertisers."

Interview and Story by Dave Odegard

The Future of Apps in Mobile Marketing

Article Date:07/20/2009

Since iPhone apps were introduced a year ago, they have become the forefront of the mobile marketing industry. Shorthand for "applications," apps are programs that Apple iPhone and iPod touch owners can download directly to their devices through Apple. Developers create the apps independently, then submit them for approval to the computer company, which will then, if accepted, sell them at their creator's suggested price (which can be no cost whatsoever). They can range from video games to restaurant guides. Through a series of exclusive interviews with mobile marketing experts, app developers, and others, $ALE$-FAX NEWS has found that although the majority of apps are geared for entertainment purposes, many brands have begun to use them in their mobile marketing strategies and thus can help in future sales opportunities.
A prime example is the recently released Barnes & Noble app. Users who download the free app just need to take a picture of a book's front cover with their iPhone to find out its title, price, reviews, purchase it online, and even reserve a copy at the Barnes and Noble that's nearest to their current location (along with receiving directions on how to get there, as well as a list of upcoming in-store events).

Creating a Shift in the Industry

"The app allows us to provide better support for busy customers who want to find a store, see in-store inventory, and even reserve products while on-the-go," says Miles Williams, Mobile Product Manager for Barnes & Noble.com. Williams tells $ALE$-FAX NEWS that with the growing use of smartphones and mobile technology "Barnes & Noble wanted to give our loyal customers the ability to connect with our brand from anywhere and at any time."
"It's causing a definite shift," says Mike Wehrs, President and CEO of the Mobile Marketing Association. "The first question from a new client is: 'How quickly can you get me an iPhone app?'" When asked if the initial buzz of using iPhone apps to promote brands may be starting to wane, Wehrs laughs. "I think if anything, it's going to increase," he says. Wehrs explains that marketing with an iPhone apps, features increased audience engagement. "The return on the investment in the program goes up," he says. "Brands find it very attractive."
According to Apple, there are more than 50,000 apps available. "Developers now have the incredible opportunity to reach more than 37 million iPhone and iPod touch users around the world," say Elisa Hickey, a PR Specialist for the computer company. Hickey also says that in nine months, one billion apps were downloaded.
But for developers, it's more than just the vast number of users that piques their interest. "There are finally devices that offer the full experience for the end user," says Karl Stillner, Vice President of Business Development at Zumobi, a mobile media company that creates apps, most recently for MSNBC. According to Stillner, Apple created a "more frictionless content distribution," for its apps via similar system requirements across devices (an app that works on original iPhone will work on any newer models, like the 3G or 3GS, as well as the iPod Touch) and the already built-in billing mechanism of iTunes. All allow developers to easily create an app for the multiple iPhones without any changes for platform and seamlessly deliver them to the user.
For Bernard Kravitz, owner of TheCoderie, an Internet consulting company that creates apps (their slogan is "like a bakery but with software,"), there's also the draw of what a developer can do with the iPhone's capabilities. "The iPhone is a fully comprehensive device," says Kravitz, who explains that apps can take advantage of the hardware's ability to connect to the Internet, take a picture, and pinpoint its location via GPS. "It's all these things we've been using already, just separately," he says.

Two Types of Apps for Brand Communication

Advertisers can connect with consumers through iPhone apps two ways, either directly via their own full branded apps or as a third party advertising on a publisher app. Full branded apps, like the one released by Barnes & Noble, are meant to continue communication with already loyal consumers. "The end user has to opt in," says Wehrs. "They say 'I to want to be a part of this brand.'" Publisher apps, on the other hand, utilize a more traditional media advertising strategy to cast a wider net for what Wehrs describes as "a broader type of audience, people not aware of the brand."
An example of a publisher app is the one recently released by MSNBC. One of the first brands to advertise on it was the national electronics' chain Best Buy. "The Best Buy campaign is woven into the content of the application, and is not just sitting static at the bottom of the page," says Stillner, who explains that ads appear as messages in the scrolling news feed and users have the option of following Best Buy's twitter feed. "Also, when you go into a particular story, a BrandFrame with Best Buy messaging frames part of the story," adds Stillner. "The BrandFrame is fully actionable and leads to a landing page that is built into the application that has a featured deal of the day that is updated each day."

Risks and Advantages Over other Media

Although experts praise iPhone apps as means for advertisers to have a dialogue with their customers, they warn that its rapidly growing popularity may also pose a danger. "Unless you have a huge brand, you risk the situation of getting lost in the noise," Stillner says, and suggests that anyone planning on releasing an app should be sure to appreciate it as part of a whole strategy and not the entirety of the effort. It's a sentiment seconded by Wehrs, who warns of the danger of being caught up in the excitement of an iPhone app when their target user might not even be an iPhone user. "It [the application] looks great, but they haven't done their due diligence to find out that the iPhone is the right platform for them," he says. "You have to get the rest of the formula right. It's not just throw the app up there and people will start being a part of my marketing program. It just doesn't work like that."
But dangers and risks aside, most in the mobile marketing community are still excited about advertising through iPhone apps. "It has all the advantages of traditional digital advertising, but also can be location-aware and is presented on the most personal and referenced device anyone carries," says Stillner. According to Wehrs, it's this constant access that ensures consumers will get the advertiser's message. "They're going to stop what they're doing and see it," he says. "You can't say that about TV. You can't say that about online. You can't say that about any other media."

Sales-Fax