2012 is projected to be a big holiday shopping season, with consumer spending expected to return to near pre-recession levels.  The National Retail Federation’s 2012 consumer holiday spending survey forecasts that the country’s holiday spending will rise 4.1% to about $586 billion – the most optimistic forecast since the recession.  But a lot has changed since the pre-recession 2007 holiday shopping season.  The consumer shopping experience has seen significant changes in these past five years, and the holiday shopping season is different today than it was then – a sign of the technological advances that have been made, as well as the strides retailers and advertisers are making with digital, data, social media, and mobile.

The Way I See It

The ‘Holiday Shopping Season’ starts earlier and earlier every year, and this year was no exception, with retailers unveiling holiday displays and deals before Halloween.  And Thanksgiving Day became the new Black Friday this year, with major retailers opening on Thursday evening with outrageous “while supplies last” deals on technology, toys, big screen TVs, and other hot items.

  • I see online shopping continuing to boom with sales on the web and mobile devices continuing to grow – aligned with the growth in advertising on digital and social media, and the increased use of social media by retailers.  The NRF survey estimates that online sales this year will grow 12% during the holidays to $96 billion, with more than half of consumers surveyed – 52% – planning to shop for some gifts online, which is up from 47% last year.
  • I see gift card sales continuing to be a major “gift” for consumers and retailers alike.  Retail gift cards have always been a hot item, even five years ago, but now technology has infused the gift card medium, so some of the hottest gift cards are online gift cards, prepaid debit gift cards, and mobile gift cards.  With the NRF survey revealing that 81.1% of consumers will buy at least one gift card this year, it will be interesting to see how much of the pie is taken by the “new” gift cards.
  • I see the explosion in reliance on consumer data changing holiday marketing and shopping – by far the largest and most influential change for holiday shopping in the last five years.  With data, more relevant information – products, offers, and deals – are being delivered to more consumers than ever before.  This effectively results in advertising and marketing dollars doing a better job of getting consumers to shop and buy.

The Way the Industry Sees It


I sat down with Dana Traci, Vice President in Marketing Rewards at Discover, to discuss the countless ways that the holiday shopping experience has changed for consumers in the past five years.

In your eyes, if you had to choose one development or area of change or growth that has had the largest impact on holiday shopping since 2007, what would it be?

Without a doubt, it’s the access consumers have to information via mobile and Internet channels.  They now have the ability to see a wide selection of products and prices without having to leave their houses.  They can browse deals and/or make purchases on the go, on their own time, without needing to visit an actual store.

How has technology and data changed the way your company prepares for the holiday shopping season and the way you advertise to consumers?

It’s imperative for us to advertise our messages where consumers are, and that means whether they are shopping in-store, looking at products online, etc.  In order to stay relevant and competitive, we need to expand our reach and presence as new technologies change the way consumers shop.

Continue Reading 2012 Holiday Shopping Season: Significant Changes in Only Five Years

The holidays are swinging into full gear, what better time to… reminisce?  Every year, it seems there is a new “hot” item on the shelves that our children, family, and friends have on the top of their wish lists to Santa.  I will never forget the Ty® Beanie Babies phenomenon, the holiday season when people of all ages were frantically hunting for Tickle Me Elmos, or those Tamagotchi keychain games that flew off the shelves faster than you could say “Tamagotchi.”

All of these hot-ticket items were wildfire brands – they launched onto market and became overnight hits with consumers.

And though product makers are thrilled with such rapid-fire consumer hits, there are a number of brand protection concerns that they must work to address while the sales ratchet up in order to protect the brand’s increasing value.

The Way I See It

  • I see new and innovative wildfire products and brands continuing to be launched onto the market through a variety of marketing channels, but especially through viral videos and social media marketing.  As in the past, many of these wildfire brands will become a symbol of a generation and instant pop culture hits.
  • When the products begin flying off the shelves, I see brands working to protect their product and intellectually property from counterfeiters, and other potential threats to the brand – those trying to take advantage of the hit item by trying to produce something similar at a lower cost in order to benefit from the brand’s increasing value, or trying to pass off their goods by using similar trade dress or marks.
  • I see marketers working to launch creative ads and campaigns to continue the sales momentum of the initial brand proliferation period, ensuring the product’s long-term sales growth in addition to its short-term sales spike.

The perfect recent example of a wildfire brand is the Snuggie®, which sold over four million units in three months.  Its launch to market was an interesting one, with a single TV ad, launching the Snuggie® to become an instant pop culture phenomenon.

The Way the Industry Sees It

I sat down with Scott Boilen, President of Allstar Marketing Group, the company behind many high-profile consumer brands, to discuss brand proliferation and protection.

You’ve seen wildfire success with a few leading consumer brands.  In your experience, what is the most critical precaution to take before launching a product to market in order to ensure brand protection?

As a company, the single most important thing we can do to protect our brand is to make sure all trademarks are applied for and all materials are copyrighted prior to debuting a product.  We also seek patent protection when feasible.  When launching brands with an aggressive “As seen on TV” campaign we build mass awareness in a very short period of time. If all pre-launch legal items are not buttoned up, we are leaving ourselves open to companies trying to piggyback off our success with similar marks, logos or other materials in an attempt to create brand confusion.  Right after launch, we also begin to monitor the market and aggressively do what we can to stop the marketing of any infringing product as well as halting counterfeits from coming to the United States from overseas.

The Snuggie® was launched in October 2008, right at the height of the economic downturn, yet sold over four million units in three months.  With a brand as popular as Snuggie®, are there particular obstacles and challenges that arise during the initial time period of the few months during which the brand is skyrocketing?

The launch of the Snuggie® blanket created tremendous consumer awareness.  It was critical that we ensured we were using our marks in a way that was consistent and protectable. We had many companies attempting to bring out similar products with marks or logos in an attempt to confuse the consumer.  We were successful in shutting down every violator.  This was made possible as our marks were registered and used in a consistent way as to make them defensible.  Ensuring that our own employees, agents and representatives used the marks correctly was integral to the education we also provided to folks in the media when the brand was discussed.  While there is a fine line between getting as much exposure for the brand as possible and making sure the marks are not diluted when not used properly, we did a great job of maintaining a strong brand along with a great product in the United States and abroad.

Continue Reading Brand Protection Concerns for Wildfire Consumer Sensations

Cash and credit and debit cards are certainly dominant in the payment space today.  Some think change will never happen, but they are dead wrong.  Mobile payment is in its infancy, but the benefits are clear:  simplicity, convenience, relevance, and targeted offers and rewards.  No more wallets with multiple cards, just one device.  And this is only the beginning. 

Consumers and retailers are eager to participate.  Starbucks – a market leader – already offers a popular payment app.  It has now moved further into mobile payments by partnering with Square to allow mobile payment at all of its 7,000 U.S. stores.  Customers may soon even be able to pay with their phones while they’re still in their pockets.  With Square, a cashier can see your photo as you approach the register, and you complete the purchase by stating your name. Continue Reading Are Mobile Payment Apps the Next Big Thing?

We are in a “perfect storm” fueled by big data, technological change, media transformation (especially mobile), and global competition.  The conventional model of linear digestion of media followed by the linear transaction process is disappearing.  With digital media, consumers have multiple sites and screens open at the same time.  This year the number of Internet users in the U.S. will grow to 239 million, nearly 76% of the total population.  We’re not moving to a digital world, we’re there.

Rapid technological change in mobile devices and wireless service (4G and 4G LTE) fundamentally change how advertisers and consumers interact.  Material information is increasingly delivered to consumers not only at the most relevant touch points, but also – through geo-location – at the most relevant places and times.  Think of it as “just-in-time” marketing.

This means real opportunities, with real questions for advertisers, regulators, and lawmakers – just as the hitchhikers are arguing about in this clip.  Marketers are charged with balancing evolving technological capabilities with consumer protection, including privacy and data regulation, and with adhering to regulatory standards and disclosures.     Continue Reading Settling the Argument: Regulation and Disclosure in the Digital World

Increased mobility and access to information with digital media and mobile gives consumers real power to shape the marketplace.  Yet consumers can be fickle and easily distracted, to say the least.

With so many options and constant change, the question for advertisers is:  how do we determine what reasonable consumer behavior and perceptions are when the norm is rapid change?  Let’s look at some examples of what it means to be “reasonable.”

In a recent class action lawsuit, consumers claimed they were deceived into believing Fruit Roll-Ups and Fruit by the Foot snacks are made with real fruit.  Using the word “fruit” in the name, along with images of fruit on the packaging, could be enough for a “reasonable” consumer to believe that there was real fruit.  The court said that the ingredients list could not correct the message that “reasonable” consumers took away from the rest of the packaging.Continue Reading Choices, Choices: Do Consumers Really Know What They Want?

It’s hard to believe it’s already mid-November.  The Presidential election is now behind us and the devastation of Hurricane Sandy is still all too real for many on the East Coast.  This week, many in the marketing and promotion industry are heading to the Windy City for the 34th Annual Promotion Marketing Association Marketing Law Conference.  This year’s conference is titled, “Converging Platforms & Diverging Laws” and I’m honored to be giving a keynote address again this year.  Throughout the PMA Conference this week, I’ll be sharing my thoughts and perspectives with you.

The Promotion Marketing Association is one of the largest and most influential industry trade associations and has been since its inception in 1911.  PMA represents businesses that motivate behavior, activate response and build brands.  These disciplines include promotion, shopper/retailer, digital, sponsorship and experiential marketing.

The Way I See It

  • I see the PMA’s Annual Law Conference helping marketers and agencies understand the implications of new developments, regulatory updates, legislation, and the effect of new technologies shaping the marketing world.
  • I see candid presentations, panels, and conversations on the critical issues facing the industry:  digital and mobile, data and privacy data security, shopper marketing, the role of the regulators – Federal, state and local, self-regulation, consumer direct action, protection of children, and so much more.
  • I see the PMA changing as the industry changes, and I see the influence of PMA increasing as the industry grows and gains even greater influence.

The Way the Industry Sees It

I sat down with Bonnie Carlson, the President of PMA, to give you an inside look at what is planned for this year’s Marketing Law Conference, current issues driving PMA’s work in the industry, and how PMA – and the industry – has changed since its inception just over 100 years ago.

I can’t believe it’s time again for the PMA Annual Marketing Law Conference. Can you give us some insight as to what the title of this year’s conference, “Converging Platforms & Diverging Laws,” means and how the panels and sessions aim to address it?

The title is a reflection of the continuing evolution of traditional media/tactics converging with new technology and the challenges this brings legally, often pioneering new ground and testing principles such as self-regulation, marketing to children and First Amendment rights.  Consumers are influenced by a myriad of media and are connected globally, especially because of the internet and social media, which also challenges the overlap or divergence of international and federal/state laws.

This year’s program really touches upon the key topics and issues brands and marketers face – the rise of social media, the importance of the mobile platform, the new regulations and regulators (like the CFPB), the focus on consumer activation, and the need to succeed in a global economy.  Given the developments during the past few months alone, what do you think will be the main themes driving your industry next year?

The consumer will continue to be in charge, expecting more transparency, authenticity and value from brands.  Marketers and retailers will continue to be pressured to do more with less, to advance new technology, stay competitive with a speed-to-market mentality, and have accountability for results.  On the legal side, the themes will be a focus on privacy rules (dot com guidelines, mobile app, and International data privacy rules), renewed attention to the COPPA rules, health and food claims, and cyber cafes.

Continue Reading Gearing Up for the 34th Annual PMA Marketing Law Conference

Ahh, America’s favorite pastime. Hot dogs, peanuts, jerseys, and Big League Chew. We have all heard the call at the stadium – “Beer here.”  Major League Baseball commands attention, defining summer for sports fans and inflaming longstanding hometown rivalries.  I live in New York City, though I was raised outside Boston.  Talk about a rivalry – the Yankees and Red Sox – though not a good year for the BoSox this year.  Every home run, broken bat and strikeout adds up to the biggest baseball event of the year: the World Series.

The World Series is one of the key tent pole events of the advertising year.  It is important to big brands and advertisers.  Sports is a great way to reach a key male demographic; so for car companies, beer, snack food, soft drink, and other brands, the World Series is one of the championship venues in which they need to play. This is true not only for national advertisers, but local advertisers as well.  So you might see a major automotive company in the national network television spots and local dealer association advertising in the local spots for a market.  If you are thirsty, hungry, need a deodorant, a new shaver, or a new car – watch the World Series.

The Way I See It

  • I see the best of athletic competition bringing new thrills and touching childhood memories.  I see television advertising at its best touching a key advertising demographic.
  • I see the smart use of online, mobile, and social media by MLB to keep consumers in touch who are not in front of the television, giving advertisers multiple platforms to reach their audience.
  • I see athletes competing and I look for the next breakout star shaving, eating cereal or promoting the features of a new car.

The Way the Industry Sees It

To learn more about baseball’s biggest matchup and what it means to the advertising industry, I sat down with Jacqueline Parkes, the first-ever Chief Marketing Officer of Major League Baseball.  She answered some of my biggest questions about the World Series for advertisers.

[Since the World Series is a competition that lasts anywhere from 4 to 7 games, does MLB view this as a competitive advantage in terms of marketing value over some other sports championship competition that may be only be one game?

Every event is different and presents its own unique opportunities.  The World Series has stood the test of time to consistently stand as one of the jewel events of the television calendar.  From an advertising standpoint, our partners at FOX routinely sell out of all inventory.  We all focus primarily on the first four games since we know they will definitely take place – as MLB did this year by dedicating each of the first four games to an important community initiative (Stand Up To Cancer, Welcome Back Veterans, youth charities and Habitat for Humanity) – and then if and when games 5, 6 and 7 take place we all move quickly to activate around them.  We feel it is very important to leverage our largest promotional platform, the World Series, to build awareness for charities that help drive our communities.

How important are historic or geographic rivalries to baseball and the World Series?  Do they factor into marketing the MLB?

Certain matchups between teams with a long history can sometimes help bring in more viewers at the start of a World Series, but it’s been proven time and time again that in the end, the drama on the field will bring in the viewers regardless of who’s playing.  In 2011, the Cardinals and Rangers came into the World Series having never faced each other, and yet the seventh game of that epic World Series was the most-watched baseball game since the Red Sox ended their 86-year drought in 2004.

Continue Reading Take Me Out to the Ball Game, Advertisers

Data, data, data.  Advertising Week was buzzing with chatter about data – its importance for the advertising industry, future implications, how to improve and maximize data, privacy and security issues… The list goes on.  So it was only appropriate for Ogilvy & Mather North America Chief Creative Officer Steve Simpson’s keynote address at the National Advertising Division’s annual conference on Monday of Advertising Week to be focused on big data.  Adweek reporter Katy Bachman put it well in summing up the key takeaway from Steve’s address: “In the age of big data, advertisers need to get their act together when it comes to online privacy.”

The Way I See It

  • I see a boom in online behavioral advertising and interest-based advertising, which has given rise to the need for stricter consumer data protection standards for the industry.
  • I see a number of challenges and potential pitfalls that advertising agencies and brands need to be cautious of in order to be able to reap the benefits of all of the data that is becoming available.
  • I see the need for increased transparency across the industry in order to educate consumers about privacy policies and the data that is being collected from them.

The Way the Industry Sees It

I had the pleasure of speaking with Steve Simpson, Ogilvy & Mather North America Chief Creative Officer, after Advertising Week to further discuss his NAD keynote address and his thoughts on data, privacy, creative, and more.

During your keynote, you said that this is a “massive creative issue.” Can you elaborate on this point? What steps should the advertising industry take to address this creative issue?

For marketers, privacy is an ethical issue, it’s a legal and regulatory issue, but it’s also a respect issue. This is to say, the new issues are the old issues.  It could be argued that the old days of one-way communication didn’t respect the consumer in the broadness of the messaging or bluntness of the media.  It intruded on your time with messages for products or services in which you often had no interest and for which you had no use. But the difference was the consumer knew what was what: the rules of the game were well known, transparent, and pretty much invariable.  The message was honest about its intent and succeeded by the power of its proposition or the force of its charm.  And when you turned the TV off, the TV didn’t rise from its stand, follow you about, and note all your doings.  It stayed shut off, because the “off” switch was a simple unambiguous technological act: “off” meant “off,” it didn’t mean “not apparently on, but watching you all day to see how you like it.”  While many in the industry declare with dewy eyes and a catch in the voice that the “consumer is now in control,” they are telling only half of the truth.  Because while the consumer can with high dudgeon tell a company exactly how to make a product better according to his own exacting personal standards—“Who’s in control now, you corporate hacks!!!!”—ending his tweet or review with a flurry of exclamation points, and moves on—he doesn’t move on, because the company he’s engaged isn’t ready to move on from him, but is only beginning to track him relentlessly in return for his “valuable inputs and collaboration.”

You said that if an advertiser is not respectful of its consumers’ privacy concerns that the job to be done by advertising, and the role of the creative director for that account, is very difficult.  Can you explain what you mean?

If consumers feel that marketers have relied solely on technology to track and target them, without openness and transparency, or without their knowledge or consent, then we have put the consumer into a state of alarm, resentment and even active resistance to our message.  Hence, the “massive creative issue.” What kind of ad can we create that is so wonderful it can overcome this?  Dear consumer, you feel violated—ready for a funny ad?

Continue Reading Data: A Creative Director’s Perspective

Ask anyone in Ohio what they’re least excited for during the home stretch of this year’s Election season, and I bet you they’ll say the non-stop television, print, and online advertisements from Obama, Romney, and other Ohio politicians trying to win the battleground state. At the Democratic National Convention in August, the crowd cheered and laughed when Obama said he was even tired of saying, “I’m Barack Obama and I approve this message.”  Election season always means a surging tidal wave of political advertising. The 2012 elections are expected to break records for ad spend – after the 2008 elections hit a new record as well. According to Kantar CMAG, the United States will see 43,000 political spots a day until Election Day. We know what all of this means for the average American voter preparing to go to the polls, but what does it mean for the advertising industry?

The Way I See It

  • I see a surge of revenue for local television stations, especially in battleground states, and online ad networks with spots from politicians and campaigns, as well as business groups, interest groups, and think tanks.
  • I see a promising surge in activity for the advertising industry that should have a positive overall impact on advertising spending – perhaps enough for the rumored recession ahead to be postponed.
  • I see an election season that may spell change for the future of political advertising and advertising in general – with a potential shift from traditional, local TV spots commandeering political ad spend to more innovative online, social media, and mobile advertising claiming more of the ad dollars. What has a greater impact on voters?

The Way the Industry Sees It

I sat down with Steve Farella, the founder and CEO of TargetCast, to pick his brain on this year’s political ad spend and what it means for the advertising industry as a whole.

Kantar CMAG projected the total spending on local spot TV advertising in the 2012 elections will be at $3 billion. What impact will that have on the advertising market as a whole?

At this point in the race, the largest ad spends are anticipated to be in those states that are still considered “swing states” where it is unclear whether they ultimately join with other blue or red states in the election. Those states currently include: New Hampshire, Ohio, Virginia, North Carolina, Florida, Wisconsin, Iowa, Nevada, and Colorado. Generally we see little national advertising and it tends to have only slight or no impact on national broadcast. Most agencies work with their clients to plan their local scheduling and daypart utilization so that, where possible, they side-step the heaviest pre-election weeks based on the clients’ needs. Primetime garners 23% of campaign spend, while combined News dayparts gets 32%. Early Morning saw significant growth between 2008 and 2010 and we expect that trend to continue. Access and Early Fringe also see activity while Late Night, Daytime, and Weekend see less.

In 2008, spending on political ads hit a new record. How does 2012 spending and overall advertising compare with the last election?

The explosion of Super Pacs – 501 (c)(4) organizations, trade associations with political arms – are the biggest development in 2012. For example, advertising weight in the market of Columbus, Ohio for the week of 8/15-8/22 reached 1,842 presidential race spots as compared to 832 spots in 2008. Las Vegas saw its presidential spot count go from 925 in 2008 to a record 2,870 in 2012. Wells Fargo analyst Marci Ryvicker has raised political advertising estimates from $4.9 billion to $5.2 billion by Election Night. So far, presidential candidates have spent more than seven times the amount of money spent in 2008 on digital ads (up from $22MM to $159MM). Online ad spending has doubled as a percentage of campaigns’ budgets over the same time period. Thus far, online ad dollars have mostly focused on emails, display ads, sponsored search terms, and audio and video ads.

Continue Reading Paid for by Ron Urbach: 2012 Election Season for the Advertising Industry

On Thursday during Advertising Week in New York City, I hosted an event called “Mission Impossible: Truth & Privacy – The Future is Now,” featuring Commissioner Julie Brill of the Federal Trade Commission, along with Frank Abagnale, one of the world’s foremost authorities on fraud and identity theft (you may know him best from the film Catch Me If You Can – he was portrayed by none other than Leonardo DiCaprio), and Jonathan Salem Baskin, Co-Author of Tell The Truth. Privacy is an issue everyone is talking about these days, and I wanted to share with you some of the thoughts and issues discussed during the session at Advertising Week. Click here to view a video of Ron’s conversation with FTC Commissioner Julie Brill.

Advertising is a fascinating and complex industry, reflecting the latest innovations, the newest technologies, and, of course, the height of creativity. Advertising is a reflection of the fundamental changes sweeping our society – the transformative effect of digital, the changes in all forms of media, the importance of data and the rise of wireless. Amidst this rapid change, privacy is one of the most important issues in the advertising and media business, and one which demands our attention now, not tomorrow.

The Way I See It

  • I see that digital technology and media has created an unprecedented “Holy Grail” opportunity for marketers to have conversations with consumers as individuals wherever they are on a broad array of devices. The question we must answer is, how do we manage the legitimate privacy concerns?
  • I see the FTC’s role and influence in steering the privacy and data security debate and action rising in importance.
  • I see global marketers and agencies working in good faith either alone or in groups to navigate safely through leading edge issues and the concerns of interested parties – the government, agencies, marketers, technology providers, media and consumers.
  • I see “do not track” continue to be a central issue that focuses many of the important advertising industry and societal issues about both what can be and what should be.
  • I see “privacy by design” being a simple concept, but a difficult concept to execute in real time.

The Way The Industry Sees It

Commissioner Julie Brill of the FTC shared some extremely valuable insights with me and the attendees of our Advertising Week session. I then asked Commissioner Brill some follow up questions that touched upon some of the conversation that we had in our Advertising Week session.

Can you highlight what you see as the role of the FTC in regards to its relationship with the advertising industry’s need to focus on consumer privacy and data security?

The Commission has developed a set of best practices, as outlined in the agency’s March 2012 final privacy framework, for companies that collect and use consumer data. (“Protecting Consumer Privacy in an Era of Rapid Change: Recommendations for Businesses and Policymakers,” An FTC Report (Mar. 26, 2012) available at http://www.ftc.gov/os/2012/03/120326privacyreport.pdf.) Because the advertising industry is among the heaviest users of such information, these best practices can be useful to the advertising industry –including ad networks, individual advertisers, and all other players in the advertising eco-system—as they develop and maintain processes and systems to operationalize privacy and data security practices within their businesses. In addition to our policymaking role, the Commission takes action against companies—including those in the advertising industry—that do not treat consumer data in accordance with the laws enforced by the agency. For example, we took action against several advertising networks that misrepresented their practices involving consumers’ ability to opt-out from online behavioral advertising. (See press releases, “FTC Puts an End to Tactics of Online Advertising Company That Deceived Consumers Who Wanted to “Opt Out” from Targeted Ads” (Mar. 14, 2011), available at http://www.ftc.gov/opa/2011/03/chitika.shtm; “Online Advertiser Settles FTC Charges ScanScout Deceptively Used Flash Cookies to Track Consumers Online” (Nov. 8, 2011), available at http://www.ftc.gov/opa/2011/11/scanscout.shtm).

In the fast paced world of marketers and agencies where they must implement “privacy by design”, what is the biggest issue confronting the industry?

Well, there are a lot of big issues. One of the biggest issues is the rapid pace of today’s technological advances. Companies are bringing products and services to market as quickly as they can—and the advertising and marketing have to keep up with that pace. As a result, companies may not be employing a methodical process to consider all the privacy and data security issues that could arise with the product or service, or with an advertising or marketing campaign. I think one of the most important elements of Privacy by Design is for companies to take the time to thoroughly examine the consumer information they are collecting, what is being done with that information, and how it is being safeguarded. In our privacy report, we stress the importance of operationalizing these processes, which will help companies conduct these analyses in an efficient and timely fashion.

Continue Reading Privacy and the FTC: Inside Perspective from FTC Commissioner Julie Brill