Madison Ave Insights

Dos Equis is Bucking Beer Trends by Going Mobile

Posted in Advertising, Digital, Mobile

UntitledThese are challenging times for major beer makers. Beer sales in the United States have fallen by about 4% since 2008, with the biggest declines being experienced by some of the largest brands. Bud, Miller High Life and Miller Lite have lost a quarter of their sales volume. Some might chalk this up to the encroachment of craft brewers, but while sales of craft beers have grown by roughly 80%, they still represent only 7.6% of beer sales nationwide. A recent article in Forbes suggests that the real reason for the decline in major brand beers sales is that the Baby Boomers who drink them are drinking less as they age, and millennials, partly because the major beer brands have failed to connect with them, are finding other things to drink. Among the exceptions is Dos Equis, which has doubled its sales volume while other major brews have been declining.

Dos Equis’ success can be attributed to a number of factors. One is the ongoing success of its “Most Interesting Man in the World” campaign. But, Dos Equis and its parent, Heineken International, have also been successful innovators in mobile and digital marketing, an especially effective channel with the millennial audience that other major beer brands seem to be using.

Just last Halloween, Dos Equis launched its Masquerade campaign, in which consumers were encouraged to post Halloween-themed photos of themselves to Instagram for a chance to attend a masquerade party in New Orleans that included a performance by rap artist Q-Tip. As part of the campaign, Dos Equis also flooded bars with virtual reality headsets that allowed users to attend a masquerade party hosted by the Most Interesting Man in the World.

As Heineken looks to build on the growth of Dos Equis and continues to make inroads into a younger market, it’s putting even more of its resources into mobile and digital advertising. The Wall Street Journal recently reported that Heineken will be devoting a full quarter of its ad spending on mobile and digital media, and will team up with video ad technology firm TubeMogul to facilitate its push.

The Way I See It

  • Heineken and Dos Equis are in a great position. Not only are they making smart, effective use of digital and mobile marketing, they’re also benefiting from the growth in the United States’ Hispanic market. Hispanics are the fastest growing demographic in the country.
  • Heineken’s brands are also hitting home runs in traditional media, and by blending traditional and digital.  Dos Equis’ Smartest Man in the World has become an icon, and Newcastle’s generated a lot of buzz around last year’s Super Bowl with its “If We Made It” digital campaign, and this year by trying to raise money for a Super Bowl spot by selling portions of its ad to other brands.

The Way the Industry Sees It

AK Headshot

I sat down with Andrew Katz, Vice President of Marketing at Dos Equis, to discuss marketing beer in a time of shifting tastes and demographics.

 

 

 

Q
How have beer drinkers changed over the past few years, and what opportunities do those changes represent?
A
The beer category in the United States is being driven by two major trends – one is the proliferation of Mexican Imports like Dos Equis, as consumers are increasingly seeking more interesting flavors and experiences.  The second is the craft movement where drinkers are exploring different styles of more locally brewed beers.  Another shift on the periphery is the “blurred lines” between beer and spirits.  Early legal drinking age consumers are looking for new, change of pace experiences that are as interesting as they are, like the unexpected taste of the Dos Equis Dos-A-Rita – which is a mash up of Dos Equis and a Margarita. We can’t state enough how important innovation is to the success of growing the millennial segment. Given these trends, Dos Equis is well positioned to win in the United States.
Q
What’s the potential for Dos Equis? Is it a beer targeted to the United States’ Hispanic market, or does it have the potential to become another imported beer that transcends its country of origin?
A
Dos Equis quadrupled its volume in the last decade (according to Neilson) and just passed Stella as the #4 imported beer in America (according to Beer Market Insights)!  This fantastic performance makes us very optimistic about the brands’ prospects for growth, because we know that the brand appeals to people who “seek out interesting” – whether they are, millennials, or bicultural consumers.  Our goal is to not only sell a great beer, but also connect with our fans to deliver memorable, interesting experiences that will make them come back.
Q
I read recently that Ron Amram, Heineken USA’s senior media director, has embraced a mobile first approach. What are the practical implications of that? How does it change the creative process? How does it change the media planning process?
A
Everything we do begins with the question of ‘How are we going to create an experience worth sharing?’  How can we better serve them and their needs?  Where can Dos Equis add the most value in their lives?  Given our core millennial consumer, it is essential that we are where they are which increasingly is on their mobile phones. Some call this the second screen, but with our target, in many ways, it’s neck and neck with television. Creatively, we think about the context so that we are as relevant as possible.  A 30 second commercial works great on a 60” television – but in social for example, we tend to think more “bite-sized” content that is sharable on a 4” screen.  Media-wise, it’s really a function of shifting our investment to most effectively and efficiently reach our core audience.
Q
How do your different consumer segments interact with mobile and digital? Are there different approaches for age, gender and other demographics?
A
We’re very focused on reaching Millennials of a legal drinking age.  For Dos Equis, we are committed to reaching our audience on their terms.  Since they are predominantly consuming content on mobile and digital – we are delivering ads, information, and experiences to them in interesting ways.
Q
What’s the most interesting object in your office?
A
A soccer ball signed by Pele, an original Annie Leibovitz framed photograph of Tina Fey, and a painted portrait of the ‘Most Interesting Man in the World’.  I guess I take inspiration from interesting, talented, iconic people!

Environmental Marketing Needs To Get Real

Posted in Advertising, Environmental, Marketing

Think GreenAs you know, Davis & Gilbert produced our 2014/2015 Lessons Learned Practical Advice document, where our lawyers highlight major developments in the marketing communications industry, and offer tips and best practices for marketers and their agencies in 2015. To view the full 2014/2015 Lessons Learned Practical Advice document, click here. This week, I wanted to share with you the section I co-authored with Matt Smith on environmental marketing.

2014 was another active year for environmental marketing claims, as consumers showed an increasing willingness to change their purchasing behavior based on environmental impact, and regulators made good on their promise to ramp up enforcement. Although the Federal Trade Commission (FTC) sent a strong message to marketers that it takes environmental marketing claims seriously, its principal focus continued to be on the same green claims it addressed in 2013: biodegradability claims and recycling claims.

Previous enforcement actions in the biodegradability area typically focused on the fact that many marketers failed to account for “customary disposal” (i.e., landfills) when making degradability claims. In 2014, the FTC focused its attention on products – especially those made of plastic – containing special additives intended to cause them to degrade in garbage disposal conditions. According to the FTC, when it came to typical U.S. landfills, even special additives were unlikely to result in the products degrading within the necessary one year timeframe. What now should be clear to all marketers is that the FTC strongly disfavors any type of degradability claim for products likely to end up in the trash.

Companies that make plastic lumber products also came under scrutiny for allegedly overstating the amount of recycled content with which their products were made. Additionally, claims that their products were 100 percent recyclable were challenged as being misleading even though technically true, because many of the recycling centers accessible to consumers would not accept the products and the “recycling return” programs created by marketers to account for this were not “a financially reasonable option” for most consumers.

The FTC also proposed changes to its Energy Labeling Rule, which governs labels for many household appliances. The changes would expand the kinds of products covered by the rule and also would modernize the program by establishing an easy-to-reference online label database.

The Way I See It:

  • Marketers must carefully consider how their products will be used by consumers in “real world” conditions when making any green product claims.
  • Because the FTC has spent the past two years focusing on the same kinds of environmental claims, 2015 should be the year that it shifts its attention to the other green claims covered under the Green Guides.

The ANDYs – Honoring the Heroes of Advertising

Posted in Advertising, Marketing

AndysWe all need heroes and people whose bravery, commitment and skill make us feel like there is good in the world. These people inspire us to do our own best work and be our own best personal and professional selves.

That’s a point not lost on The International ANDY Awards. Launched in 1964 by The Advertising Club of New York, the ANDYs honors creatives who’ve done especially bold and courageous work. That’s an increasingly tall order in these days of tighter ad budgets, more conservative clients, and campaigns that have to address a variety of new media channels while still excelling at old school print and television.

And the ANDYs had great fun with the idea of brave heroes in advertising when they put out their call for submissions. They produced a series of three videos, featuring a firefighter, a brain surgeon, and a member of a bomb disposal squad respectively, each discussing in awed terms the pressures faced by advertising creatives. “You need to be some kind of crazy maniac to sign up for a job like that.”

The Way I See It

  • The ANDYs are the first awards of the season and set the tone for the later events. They’re also the only nonprofit awards program. All proceeds from the ANDYs go to fund The Advertising Club of New York’s educational initiatives.
  • While the call to submission made light of the challenges faced by advertising creatives as opposed to people who save lives or risk their own on the job every day; doing brave, ground-breaking ad work is tremendously difficult and takes an enormous amount of talent and skill to create. The people who do it best are truly inspirational, and they deserve the accolades they receive.

The Way the Industry Sees It

dvandevenCMYK

I sat down with Debbi Vandeven, Chief Creative Officer at VML and a member of the jury for this year’s ANDYs, to talk about the awards and what makes for brave creative.

 

Q
What sets the ANDYs apart from the other advertising awards? How are they special?
A
Many of the industry’s top award shows have well-respected juries, as does the ANDYs, but what set the ANDYs apart for me was the distinct focus the jury had on selecting the bravest work from the entries. When a show and a jury president are able to guide a jury in selecting the best work, and also provide a framework for you to evaluate the work, it helps to define the show and sets it apart. I felt the ANDYs were special this year because the discussion was around more than what was great or someone’s opinion of what was the best, it also was about the bravest work created over the last year.
Q
As an ANDY jurist, how did you evaluate the work? What does bravery in advertising look like to you?
A
Being a jury member for the ANDYs is inspiring because you are able to evaluate global work and entries from all categories including traditional brand building, innovative creative ideas that use technology in new ways, and digital communications that constantly change and shape new ways our industry can engage consumers. To evaluate the work, I always begin with the idea and then review to see if the craft of the work will help raise the industry standard. Specifically for the ANDYs, I also challenged the work on the basis of whether it pushed boundaries for the industry and our clients. Brave advertising takes brave clients as well.
Q
How has the nature of bravery in advertising changed over the years? What are some of the hindrances to doing brave creative work?
A
Bravery in advertising has changed along with the how we communicate with consumers. I have found that it can be brave to be the first to do something as long as you and your client are equally willing to fail. We can create better work when we push boundaries, but there are hindrances to brave work, too, such as when a good idea gets lost in the use of technology or choosing all channels of communication to deliver a message instead of choosing the right channels. Creating brave ideas also means that just because you can, doesn’t mean you should — not without consumer relevance at the center.
Q
Do you have a creative hero? Someone whose bravery in advertising has inspired you?
A
I have several peers and friends in the industry who are inspirational with their bravery in advertising. But for the sake of choosing one, Marcus Rebeschini, Chief Creative Officer of Y&R Asia, would be top of my list. It is not the hundreds of industry accolades and awards that Marcus has received that put him there. It’s because every day Marcus is pushing boundaries to change the world with his work. I have been fortunate to work with him on a mobile application for the visually impaired that enables them to be more independent. This work is one example of how he pushes to improve people’s lives, and that’s what I find brave.
Q
What’s the coolest object in your office?
A
I am not sure if a runway classifies as an object, but the VML headquarters in Kansas City, Missouri, are in the Charles B. Wheeler Downtown Airport. Thankfully, the airport is not home to commercial aviation, but my office does look over the runway, and it is common to see smaller recreational flyers, corporate charters for musicians and sports teams, and even Air Force One out my window.

2014 – A Banner Year for NAD Challenges

Posted in Advertising, Direct Marketing, Marketing

UntitledAs I mentioned a few weeks ago, Davis & Gilbert produced our 2014 Lessons Learned/2015 Practical Advice, where our lawyers highlight major developments in the marketing communications industry, and offer tips and best practices for marketers and their agencies in 2015. To view the full 2014 Lessons Learned/2015 Practical Advice document, click here. This week, I wanted to share with you the section I co-authored on the National Advertising Division of the Council of the Better Business Bureaus (NAD).

Despite recent news reports implying that marketers are taking disputes to federal court with greater frequency, 2014 proved to be another banner year for the NAD. Eighty-eight competitor challenges were filed with the NAD in 2014 – a considerable increase from 2013. Challenges involving dietary supplements, drugs and health aids, and telecommunication products and services were the most common.

While the vast majority of NAD challenges are either brought by competitors or by the NAD itself, 2014 served as a reminder that consumers and advocacy groups may also bring NAD challenges. The Animal Legal Defense Fund challenged a tuna company’s claims that its products were “dolphin safe” and sustainably caught. The marketer refused to participate in the process and the NAD referred the matter to the Federal Trade Commission, the California Department of Consumer Affairs and the California Office of the Attorney General. The NAD also reviewed a consumer challenge asserting that the U.S. Postal Service had failed to properly disclose the numerous limitations associated with its claim that “$50 insurance [is] included in Priority Mail service.” In its decision, the NAD instructed the marketer to clearly and conspicuously disclose the restrictions associated with its insurance offer and, in so doing, provide consumers with examples of what constitutes payable and non-payable insurance claims.

NAD challenges involving product disparagement were particularly common. In one decision, the NAD determined that knocking over a box of NyQuil Cold & Flu was not disparaging because it simply reinforced the commercial’s truthful message that NyQuil, unlike the marketer’s competing product, cannot relieve a stuffy nose. In another, the NAD concluded that a marketer’s claim that “we peel our tomatoes with steam, not lye” conveyed the unsupported and inaccurate message that lye-peeled canned tomatoes are unsafe or unhealthful. Accordingly, the NAD recommended that the marketer discontinue the claim or make clear that lye-peeled tomatoes are neither unsafe nor unhealthy.

The Way I See It

  • Marketers and their agencies should recognize that complaints from consumers and advocacy groups ultimately can result in a full-fledged NAD proceeding.
  • Disclosures must be clear and conspicuous and presented in a manner that is readily understandable to the audience to whom the advertising is directed.
  • While marketers may distinguish their products from their competitors by touting certain benefits and/or innovations, these claims cannot falsely imply that a competitor’s product is ineffective, unsafe and/or unhealthy

A Look at the European Advertising Landscape

Posted in Advertising, Digital, Marketing

UntitledEven if (or maybe because) your last exposure to European advertising was a heavy metal cough drop commercial from Finland, you may be wondering how things are going over there across the pond. In general, I think the answer is, “Things could be better, but they were a lot worse.”

Ad spending is a kind of economic indicator. When a business, or a sector, or an entire economy heads south, ad spending is one of the first things to get cut. The European Union (EU) has been slower out of the Great Recession than the United States and ad spending didn’t return to growth until 2013, and even then it only grew by only 2.3% in 2014, according to a report by eMarketer.

Other trends follow a similar path. 4G mobile broadband availability doubled in Western Europe in 2014. And while smartphone usage in Europe lags behind the United States by a few percentage points, it’s expected to surpass ours by 2017. So it’s no surprise that digital budgets accounted for almost a third of European ad spending last year.

But while Europe, like the United States, is seeing a huge growth in digital advertising, Europeans tend to be much more protective of their privacy than Americans. As in the United States, ad agencies and advertisers have been largely – and successfully – self-regulating. But the search engines, ISPs and mobile carriers that collect and sell much of the data that allow for targeted digital advertising are not.

These and other issues were hot topics of conversation at this year’s Advertising Week Europe, which is being held from March 23 – 27.  I moderated a panel of industry leaders entitled, “Crossing the Atlantic” that discussed the impact of globalization and how, more than ever, agencies are expanding across the Atlantic.

The Way I See It

  • It’s easy to think of Madison Avenue as the heart of the global advertising world, but is it? What about Europe, Japan, China, and Latin America and the other rising ad creatives.
  • Europe and the United States face similar changes: a more diverse, tech-savvy millennial generation, an increasingly fractured media landscape through which to reach them and the rise of the importance of information.

The Way the Industry Sees It

Kathleen Headshot

 

I sat down with Kathleen Saxton, Founder of The Lighthouse Company, a bespoke headhunting firm based in London and New York, to discuss the challenges and opportunities of an increasingly global ad industry.

Q
For the past six years you’ve been surveying C-suite executives in the media and communications industry. What trends are you seeing in the needs of agencies for senior talent, and how do those needs differ between the United States and U.K.?
A
There is a universal truth in what is needed across both markets as we emerge from recessionary times. Over the last 5 years we have seen a pattern in agencies who were looking to secure their business for the tough times and relying on the safe hands of the leadership styles of Chief Operating Officers, whereas, we’re now seeing a greater need and desire for a more dynamic and charismatic leadership style on both sides of the Atlantic.  Given the scale of advertising and media accounts in the United States, it’s quite apparent that having the right client leads in place can often have more influence on an agency’s success than the domestic country management. Conversely in the U.K., while client directors are still incredibly important, agency leadership from senior executives tends to drive success. In many ways, this makes the U.K. market easier to navigate as a headhunter and indeed for candidates making choices about where they want to work.

Q
What’s driving those trends? Is there a particular problem agencies are trying to solve? “I need the right person who can do X?
A
The biggest challenge that agencies are facing (according to our New World Talent Survey undertaken in January 2015) is that they are not as attractive places to work as they once were. The long hours, constant pitching, client turnover and squeezing of fees, particularly in the network agencies, are all impacting how talented individuals choose to spend their professional time.  There is equally an overriding macro issue of how agencies work to retain and attract brilliant talent. As you can imagine, this is particularly challenging when many media owners and technology companies are dangling numerous carrots in front of the best candidates; whether that’s financial incentives, creative freedom or simply fresh and exciting challenges.
Q
What about the needs of individual creative leaders looking for more interesting or rewarding positions? How have their needs evolved, and do those needs differ depending on which side of the pond they’re on?
A
I fundamentally don’t believe that the needs of creative leaders differ on each side of the pond. They all tend to want to be professionally liberated and independent in an organization that desires and rewards their entrepreneurship. We’ve seen some of the best Executive Creative Directors coming out of the bigger networks, like Droga for example, to set up a shop that reflects their own working philosophies.  As agency outputs have become more commoditized, and the Chief Financial Officer/Chief Operating Officer influence has grown in strength, I believe that the creative leaders who will succeed will be the ones who can embrace both the passion for their craft and the pressures of efficient and digital delivery for their clients.
Q
In what other ways have you seen globalization change the ways agencies operate?
A
In a truly positive move for our industry, collaboration across disciplines and indeed agencies is more prevalent than ever. Take for example the Havas Villages; these create an almost ‘full-service plus’ environment to meet the broadest possible needs of their clients.  It’s become even more important to not be too introspective. Today, some of the best work at Cannes comes from outside the major territories that are deemed to be at the forefront of creativity. Agencies need to be, and in many cases are, celebrating the great work that comes from every corner of their network, sharing and learning in the globally connected world. At the end of the day, if teams of surgeons can virtually operate on someone in another country, then surely our industry can definitely collaborate creatively across geographic territories too.
Q
What’s the most interesting thing in your office?
A
The most interesting thing in our office is also the most striking! In fact, that thing is actually over 300 candidate photographs that adorn our office walls within beautiful golden gilt frames. Having the faces of those people that we represent, and have successfully placed, is a fantastic reminder of why everyone in The Lighthouse Company brings their heart and soul to work every day.

Regulators Continue Their Focus On Disclosures

Posted in Advertising, Marketing, Regulatory

FTC2014 marked a year of significant change in the marketing communications industry.  To help understand these changes, Davis & Gilbert produced our 2014 Lessons Learned/2015 Practical Advice, where our lawyers highlight major developments in the marketing communications industry, and offer tips and best practices for marketers and their agencies in 2015.

Over the next few weeks, I will share with you a few pieces I authored on the topics of: FTC – Regulatory and State, Emerging Hardware – Robots, Drones and Connected Devices, and the NAD. To view the full 2014 Lessons Learned/2015 Practical Advice document, click here.

 FTC – Regulatory and State:

The regulatory landscape in 2014 was marked by a continued focus on the importance of clear, conspicuous and transparent disclosures, whether relating to sweepstakes and promotions, endorsements and testimonials, advertising claims or privacy practices, with a particular emphasis on making appropriate disclosures in social media and across mobile applications and platforms.

The Federal Trade Commission (FTC) has been closely monitoring the use of endorsements and testimonials in advertising.  Home Security Company ADT settled FTC claims that the company misrepresented paid endorsements from safety and technology experts as independent reviews.

As part of the settlement, ADT agreed to clearly and prominently disclose any paid endorser’s “material connections” to the brand in its future advertising.  As part of “Operation Steer Clear” – a nationwide crackdown on deceptive automobile advertising – the FTC entered into settlement agreements with ten automobile dealerships.  According to the FTC’s complaints, the dealerships made a variety of misrepresentations in their advertisements with respect to material terms such as automobile purchase prices, monthly financing requirements, up-front lease payments and credit-related terms.  The settlement agreements reiterated the requirement that all automobile advertisements must include the federally mandated lease and financing advertising disclosures.

The FTC has also been keeping a close eye on digital and mobile media companies’ disclosure and privacy practices.  For instance, the FTC recently settled a case with a mobile application development company over allegations that the company misled consumers by providing a privacy policy that did not accurately reflect its app’s use of personal data and geolocation data.  Similarly, the Attorney General of Maryland entered into a settlement agreement with Snapchat, Inc., over allegations that Snapchat misled consumers by representing that messages sent through its app were temporary when Snapchat users actually could save and take screenshots of the messages they received, which had not been disclosed to consumers.

 The Way I See It:

  • As online and digital technologies continue to expand and diversify, agencies, brands and publishers will need to be cognizant of the FTC’s guidance regarding disclosures and the agency’s recent enforcement history.
  • Marketers and their agencies should ensure that social media influencers and contest entrants disclose material connections when endorsing company products.  Moreover, companies should make certain that clear and prominent disclosures accompany all paid endorsements.
  • Companies also should ensure that their data security promises are backed up by strong data security practices – especially across mobile platforms – and that applications have privacy policies in place that clearly describe how they collect, use and share consumer data.

NAD Recommends Changes to Online Travel Agency’s Search Engine Marketing Claims

Posted in Advertising, Marketing

UntitledThe Council of Better Business Bureau’s National Advertising Division (NAD) has recommended that, as a result of a complaint filed by Expedia, two online travel sites change several aspects of their search engine marketing (SEM) to avoid misleading consumers.  While SEM is a common and long-standing practice, the NAD’s decision emphasizes that there are still emerging issues that companies engaged in this type of marketing should observe.

Expedia’s Challenges

Expedia filed a challenge with the NAD alleging that the SEM practices of Fareportal Inc., the operator of travel sites CheapOair.com and OneTravel.com, were misleading.

First, Expedia challenged Fareportal’s practice of advertising what appeared to be low fares from a specific origin to a destination identified in a consumer search query, but that actually were less expensive flights from a different origin. For example, if a consumer searched on Google or another search engine for “flights from Miami to Houston,” a resulting Fareportal ad might state “Houston $149 Airfares” even if that fare was for a flight from an originating city other than Miami. Expedia contended that this practice was misleading.

Second, Expedia challenged certain “discounts” and “savings” claims made in Fareportal’s SEM advertising, such as Fareportal’s claim that consumers could “Save up to $15 OFF fees.” Expedia argued that these offers were misleading because Fareportal failed to disclose that the discounts were actually a “reduction” on its otherwise high booking fees, and contended that it was inadequate for Fareportal to explain the terms of these offers on its websites’ landing pages. In support of its argument, Expedia cited The Federal Trade Commission’s (FTC) Dot Com Disclosures, which provide that “if a particular platform does not provide an opportunity to make clear and conspicuous disclosures, then that platform should not be used to disseminate advertisements that require disclosures.”

Finally, Expedia challenged Fareportal’s “Best Price Guarantee,” arguing that Fareportal did not offer the “best price,” but only a refund if consumers could locate a lower price, and that Fareportal did not note the material limits and conditions in “immediate proximity” to its guarantee.

NAD’s Decision

The NAD determined that a consumer who searches for a flight between a specific origin and destination and then is served an ad with a price to the searched destination could reasonably conclude that the advertised price is for a flight from the searched origin to the searched destination. Accordingly, the NAD recommended that Fareportal discontinue displaying specific prices for flights to a destination in response to consumer searches when the specified price is not available for the origin and destination searched. With respect to Expedia’s challenge to Fareportal’s ads for fee “discounts” and “savings,” the NAD recommended that Fareportal “more clearly and conspicuously disclose that the discount is limited to the cost of the booking fee.”

Finally, the NAD noted that Fareportal’s “Best Price Guarantee,” which provides a guarantee to consumers who find a lower fare within 24 hours after booking with Fareportal, gave Fareportal, not the consumer, the option of refunding the price difference or refunding the entire ticket price. The NAD explained that airfare prices can change quickly in the online travel market, and that an offer to refund a consumer’s ticket price may not provide the consumer with the benefit of the guarantee, which is the ability to purchase a lower priced ticket. Therefore, the NAD recommended that Fareportal discontinue its “Best Price Guarantee” claim or modify its terms so that consumers, at their option, can receive either a full refund or require Fareportal to match the lower price.

The Way I See It:

  • The NAD’s decision is a reminder to advertisers and agencies that SEM advertising campaigns, as with other advertising, should avoid the potential for consumer confusion, or risk being challenged by competitors or others.
  • Given the FTC’s continued focus on clear and conspicuous online disclosures, when a reasonable interpretation of a specific SEM advertising claim can be found to be misleading, the advertiser may have crossed the line.

Fast Food that Will Not Derail Your Diet – b.good and Feel Good

Posted in Advertising, Direct Marketing, Marketing

To understand b.good, the healthy sandwich and salad shop that has taken the northeast by storm, we’re going to need to hop into the DeLorean, and go back to 1987 – when the founders met. b.good’s co-founders, Jon Olinto and Anthony Ackil, met in the sixth grade, and formed a fast friendship. After countless shared burgers – and years later – the duo teamed up to create something that they felt was missing from the marketplace.  They set out to create a line of restaurants where the food was made by real people, not factories.  In fact, burgers share the menu with kale and quinoa bowls and seasonal salads, and are all made with ingredients sourced from local farmers who use sustainable farming practices.

It’s a business model that’s been fueling some impressive growth. While b.good currently has 16 stores in their hometown in Boston and throughout the Northeast, their plan is to add 23 more restaurants within the next five years. Of course, world domination was as much a part of the dream as real food that made consumers feel good. As co-founder Anthony Ackil said in an interview, “We set out wanting this business to be huge. We never wanted to open five restaurants. We never wanted 50. We want hundreds.”

The Way I See It

  • I see that b.good is successfully riding trends in the restaurant business.  They are capitalizing on the farm-to-table movement that resonates with consumers who want a closer connection to their food and the people who grow it and prepare it.
  • I see the brand also capitalizing on the “affordable luxury” trend, and offering consumers the option of a “better burger” that is also wallet friendly.  Consumers can still enjoy the American staple of a burger and fries for a reasonable price that’s also made from higher quality ingredients.
  • b.good has done a terrific job of tapping into their own origin story – boyhood friends who start a restaurant based on an uncle’s burger recipe – to create a business where staff, customers, and community are all part of an extended family.

The Way the Industry Sees It

 

I sat down with Jon Olinto, co-founder of b.good, to discuss conquering the world with healthy, sustainably prepared fast food.

 

Q
How has b.good changed since inception?
A
There has been a major shift with people’s relationship with fast-casual and people’s relationship with food in general has really evolved. The only way we could envision that 11 years ago when we started was we wanted to change the industry to make fast food real. We thought we had to change burgers, fries, salads and do it along those menu lines. Transform the food based on those products, and transform the experience and the way it was delivered. Now, what we are seeing lately is that the idea of serving a better burger – or creating a better burger and fries – is really oversaturated and doesn’t really play into our mission of making fast food real.  Over the last 18 months we’ve done some significant menu changes that stay true to the brand, but position ourselves a little differently to our customers. We have never seen such growth over this year, and we are going to be up 30 percent, which is unheard of especially for a company that has been around for 10 plus years.
Q
That’s great! What do you think led to the increased growth?
A
We attribute this to two things, timing was right and we were able to dial-in to what our customers wanted. We started menu changes about 18 months ago, and we were certainly a first mover at least in our markets.  We started pressing our own juice, created a whole new category on our menu (such as kale and quinoa bowls), and we expanded our salad menu. We shifted from milkshakes to smoothies, as well as repositioned ourselves with an item that was fresh as well as healthy. The menu change and the products created have changed our business. Keeping the momentum alive is a big priority for us now, and how to keep pushing our own unique definition of real food so we seize the leadership opportunity. The fact that we have burgers provides us with a widespread appeal, but also allows us the opportunity to serve a more widespread base of customers. The concept of real food and continuing to flesh this out is of the most interest to us right now.
Q
Thinking about the current restaurants, the customer base that you have, and your recent success –  do you attribute that to a new customer base, or are these returning customers? What are your demographics like?
A
One of the first menu changes we made was introducing our green smoothie, which instantly became a crowd favorite of both new and existing customers. That showed us that our existing customers wanted additional healthy items and there was clearly a desired from consumers for health conscious products. We were able to additionally service those who already loved b.good, and expanded the scope of who we were serving every day.  Our demographics have always skewed women, even when we thought we were a burger-centric concept. We’ve always had a wellness mission from the start – we have always served our burgers on whole wheat buns, salads were a big part of our menu, we’ve always had homemade veggie burgers, and offer sides such as crisp veggies. It various by market, but across the board we serve more women than men. I think most brands in our category would say the same.  Our competitors are not in the better burger category – we don’t compete with the “Shake Shacks,” or with those concepts. We compete with companies such as Chop’t, and those who share our same customer demographics and wellness mission.
Q
Looking at your old menu, verse the new menu that you just created, what is the scope of customers like?
A
Five years ago our top selling product was beef burgers hands down. Fast forward to today and our top seller is the kale quinoa bowl. We just open up a store in Raleigh, North Carolina and in the first week of sales there was so much balance in the mix.  It shows that we are able to really position ourselves in the market place.  It shows that customers don’t just look at us like we are a burger company that also sells healthy items. They look at us as a much more broad definition of real food. We don’t define ourselves as just one type of food – the great thing about b.good is we cater to essentially every customer all while ensuring that we deliver real food.
Q
From a marketing perspective, what do you relay upon?
A
We’ve used a lot of tactics such as social media, PR, and advertising. For us, the best approach is combining community based activities with digital. If you can do a community event that captures data such as activation that’s the sweet spot for us. For example, we have a loyalty program where you can use an app or key chain to redeem gifts and rewards that help us track who our customers are and what they like. A lot of our community based events utilize food trucks. The objectives being you get people to try the product and get people to sign up for the app at the event allowing us to collect data. Once a consumer activates the app, there is a free product on there for you, so we can measure conversion based on activity.
Q
The world is undeniably becoming more digital-friendly and apps have seemed to become a consumer’s best friend. Tell me a little about the b.good app?
A
We typically push out new product offers through our app. Consumer’s experiences are built around “best in class” apps such as Uber. We built our app years ago, and we knew that everything was moving to mobile. You can also pay at the store via our app. We’ve had mobile payment options up and running for about six months.
Q
Where do you see the restaurant industry heading – if you could take a guess, what does the future look like?
A
In store experiences are changing so quickly, and I predict that soon there will be no cashiers standing there what you want to order. I see their role changing to more of a host or a hostess – making sure everything is great, and making your experience more personal. Those that change the dining experience first, are going to be the frontrunners. The dining experience will change to become more personable and more human.
Q
What is the coolest object in your office?
A
Anthony and I have been best friends since we were little, and when we were in the 9th grade we started a landscaping company. Before I left for college, Anthony’s Mom framed our original ALM Landscaping flyer.  It reminds me of how special this is, and that I am able to do this with a guy that I grew up with.

From Springsteen to Restaurants to Louis C.K – Charitable Giving is Alive and Well

Posted in Marketing, Media

The Chairman of the Joint Chiefs of Staff sang New York, New York; Louis C.K riffed on rats doing it in the subway; and Bruce Springsteen auctioned off two guitars, a lasagna dinner and a motorcycle ride. That was just some of the goings-on at the 8th Annual Stand Up for Heroes charity show, which raised $6 million to help post-9/11 vets and their families.

In addition to the Boss’s “guitars n’ lasagna” package, this year’s Stand Up for Heroes featured some other new fundraising wrinkles.

One was Dine Out for Heroes, an initiative led by Peter and Penny Glazier of the Glazier Group of restaurants, in which more than 200 participating restaurants donated a dollar for every meal they served on the day of the show.

The other was the first-ever use of “Cause Flash,” a new digital platform that aggregates the social media accounts of celebrities to rally their followers to social action. During Stand Up for Heroes, Conan O’Brien, Sting, Billy Joel and other celebrities reached more than 50 million people.

Stand Up for Heroes is the primary fundraiser for the Bob Woodruff Foundation, whose mission is to provide support for veterans of the wars in Iraq and Afghanistan. ABC news correspondent Bob Woodruff created the foundation after his recovery from a traumatic brain injury caused by a roadside bomb while he was reporting from Iraq.

The Way I See It

  • Ever since the days of the Jerry Lewis telethon for muscular dystrophy, celebrities have been leveraging their name recognition to support causes they believe in. I see brands continuing to work with celebrities to leverage off celebrities popularity and credibility to garner brand exposure.
  • The Bob Woodruff Foundation is one of the most effective charitable organizations out there. It has a clear mission—supporting the needs of post 9/11 vets and their families—and an efficient organization. A full 87 cents of every dollar raised goes directly to programming, and the Foundation uses that money to support more than 90 different veterans’ organizations that have been carefully vetted and selected from more than 40,000.
  • I see charitable giving remaining an important focus for brands and organizations. In addition to events, I see mobile and online giving continuing to be an increasing part of the philanthropic landscape.

The Way the Industry Sees It

 

I sat down with Bob Jeffrey, Chairman and CEO of JWT Worldwide and a member of the Bob Woodruff Foundation’s Board of Directors to talk about fundraising.

 

Q
Tell me about your involvement with the Woodruff Foundation. Why is it an organization you choose to be a part of, and by extension, JWT chooses to be a part of?
A
Bob and Lee Woodruff are great friends of mine but beyond my appreciation for them and what the Woodruff Foundation achieves, our founder, James Walter Thompson, was a Marine and JWT has partnered with the USMC for more than 65 years. Throughout our history we have aligned with and even served with some our nation’s heroes. I strongly believe that it’s about the warrior not the war and the Woodruff Foundation really allows us to show our gratitude to the warriors.
Q
Tell me about this year’s Stand Up for Heroes? What goals did Woodruff set for it, and how did it go about meeting them?
A
The goal every year is to make a positive impact on the lives of post-9/11 injured service members, veterans and their families. With Stand Up For Heroes, the Woodruff Foundation hits the mark every time by bringing together entertainment icons and brand partnerships that really help to raise much-needed funds for injured heroes.
Q
Bob Woodruff’s experience in Iraq gives him a very direct connection to the veterans his foundation is trying to help. There’s good brand alignment there, if you will. Are there other examples of celebrities whose charitable work is particularly effective—or whose personal charities are particularly credible—because the causes they espouse fit their personal brand?
A
When any celebrity lends their voice or image to a cause, it has a positive effect. A Rutgers study last year showed that celebrity endorsements lead to increases in charitable donations from the public. And when people see that these public figures have personal experiences with the cause they’re rallying around, it makes people connect with that person and that cause even more. Brand endorsements have the same effect. Macy’s is in its seventh year of the Believe campaign with the Make-A-Wish Foundation. Macy’s is a family brand and a brand that is big on holidays. Their effort to spread holiday cheer to children with life-threatening medical conditions makes sense for the brand and I think that’s what makes it particularly effective.
Q
What’s the coolest thing in your office?
A
Our photography collection. When I came on as CEO, I had a creative vision for J. Walter Thompson that was all about making pioneering creative work. We overhauled our New York headquarters to transform it from a place that looked like an insurance office into a modern, invigorated environment. The space demanded courageous international art to go with it. So we sold off the old collection of Modern Masters and replaced it with a collection of astounding photographs by the likes of Cindy Sherman, Nan Goldin, Ai Weiwei Alex Prager, Sophie Calle, David LaChapelle, Robin Rhode and Sebastião Salgado. It is a permanent collection of world-class contemporary global photography that is evocative, challenging, and pioneering. Exhibiting these inspiring photographs on our walls stimulates discussion and promotes creativity. I walk by these photographs every day, and each time I do, I discover something new.

SoulCycle is Spinning Its Way Across the Country

Posted in Advertising, Marketing, Media

Candlelight, loud music, and the chance for a potential celebrity sighting – it sounds a bit like a nightclub, or at the very least a trendy bar. While all of the above are nightlife commonalities, they are also a key factor in the success of SoulCycle – an intense, full-body workout done on a stationary bike.  The brand has turned “spin class” into one of the most successful fitness trends around, generating a cult-like following among its devotees, which include Lady Gaga, Katy Perry, Jake Gyllenhaal, and Charlize Theron just to name a few. In addition, celebs such as Lena Dunham and Oprah have even held SoulCycle birthday parties.

SoulCycle has set itself apart from other fitness trends in a few, key ways. The brand creates a hard-to-get product. Most gyms and fitness programs sell its clients monthly or yearly subscriptions. SoulCycle sells individual classes (which can also be purchased in bulk) and markets them like concert tickets.  Registration opens up at noon every Monday, and most classes quickly sell out due to coveted instructors and music-themed classes.

SoulCycle has also partnered with up-scale brands to position itself in the minds of its consumers. The candles that light the studios are from high-end home furnishings brand Jonathan Adler; luxury Manhattan nail salon TenOverTen makes a nail polish in the same yellow as SoulCycle’s bikes; and Lululemon even created custom SoulCycle leggings for riders to purchase. In addition to the chic “Soul” branded workout apparel, the brand sells accessories such as iPhone cases and towels.

With no signs of slowing down, today there are thirty locations nationwide. The company plans to open fifty to sixty studios worldwide by 2015. In addition, SoulCycle is also heavily into worthy-cause marketing. Its charity rides are on track to raise $2 million.

The Way I See It

  • I see that SoulCycle has built itself an extraordinarily loyal fan base through the need-to-be-there vibe of a great party with the discipline of a fitness boot camp, and expanded the following by offering branded gear and clothing. By pairing the cult favorite fitness class with “Soul” apparel, the brand continues to engage its community.
  • Experience-driven exercise regimens like SoulCycle and CrossFit have tapped into the twin desires of wanting to stay (or get) fit and wanting to be part of a community. The result is that its product – the workout experience – is more lasting and effective, and its customers become fiercely loyal brand ambassadors.

The Way the Industry Sees It

 

I sat down with Gabby Etrog Cohen, SoulCycle’s Vice President, Public Relations and Brand Strategy to talk about its branding and marketing efforts.

 

Q
SoulCycle started out as a storefront with a yellow painted rickshaw out front and is now one of the hottest fitness brands in the country. Some of that’s obviously the experience, but some of that is marketing. What’s SoulCycle’s approach to advertising and marketing? How do you get the word out?
A
It is a mix of word of mouth, digital marketing, and relationships. We do not advertise.
Q
How has that approach changed as you’ve expanded out of the New York market into places like Washington, D.C. or California?
A
Certainly we have had to try different tactics but our product is SO experiential, once riders try a class, they become our greatest brand ambassadors.
Q
Pack. Tribe. Crew. Posse. Cult. Gang. Community. These are all words that discuss the brand’s mantra that SoulCycle is more than a class, it’s a community.  How have you leveraged this mentality to attract and retain your clientele?
A
Truly, it is a community of riders who support each other on and off the bike. It is so much more than just an exercise class.
Q
How do video content and social media engagement on platforms such as Instagram, Twitter, and Facebook play into your marketing efforts?
A
They are a natural extension of our rider community.
Q
Though David Beckham, Tom Cruise, and Jake Gyllenhaal have all been known to hop on a SoulCycle bike, your clientele is mostly female. What are you doing to attract more men to SoulCycle?
A
We have a ton of male riders at SoulCycle, but it is certainly a growing market for us. This November we launched a program in support of the Movember Foundation – the leading global organization committed to changing the face of men’s health by raising awareness for men’s health issue – specifically  prostate cancer, testicular cancer, and mental illness.  To support Movember, SoulCycle launched an aptly named #NoMoExcuses initiative. As part of the campaign, SoulCycle offered all first time male riders a complimentary class at any SoulCycle studio across the country during the entire month of November. Through a social media campaign, SoulCycle also posted a photo lineup of bros along with typical excuses to skip exercising. The SOUL community was called to action to tag their male friends and colleagues on the image of the bro with the same excuse they’ve heard them use to get out of working out. Once tagged, a challenge was initiated for the tagged bro to take a SoulCycle class, and get moving! As an incentive and to support the challenge, SoulCycle invited all male riders to take their first class free at all 32 studios across the country. The SoulCycle community was also able to challenge a bro to ride by entering their email address on the www.SoulCycle/NoMoExcuses.com landing page. Once submitted, the bro received an email from SoulCycle saying that they have been challenged to take their first SoulCycle class by another rider (whose name will also appear in the email). SoulCycle then invited the bro to take a SoulCycle class for free.
Q
What is the coolest object in your office?
A
It is a tie between the paper mache face of my dog from my amazing mother-in-law, or my publicist Barbie from my friend Amy.