Google Executive Sees Online Ad Market Reaching $100 Billion

The Wall Street Journal
February 28, 2011
By Scott Morrison


An executive at Google claims the online display-advertising market could to $100 billion in a few years.  Google currently has thousands of engineers over the world working to eliminate complexities from the internet display-advertising market.  Currently the ad market is somewhere between $20 and $25 billion.  YouTube, generation more than two billion views per week, is bringing in $2.5 billion a year in ad revenue.  These recent figures represent the first time Google has ever provided details about its financial performance from ad revenue.

Taco Bell, in New Push, Defends Its Beef

The Wall Street Journal
February 28, 2011
By Julie Jargon


In a follow up to a previous post on this journal, Taco Bell is continuing its defense against a lawsuit that claimed its beef has too much filling.  A calculated risk, marketing experts say the ads pertaining to this issue could pay off.  Taco Bell will air television commercials and radio spots claiming its 88% beef - 12% signature recipe combination.  The president of the company has also explained what the mixture is made of on YouTube videos.  They are also trying to draw customers in by dropping the price significantly on their crunchwrap surpreme.

As Ireland Staggers, Guinness Reels

The Wall Street Journal
February 25, 2011
By Paul Sonne and Guy Chazen

The recent economic downturn in Ireland is hurting its national drink, Guinness, just as much as it is hurting the banks.  Consumption has been fallen in recent years as many decide to drink at home, instead of in pubs because it is cheaper.  Also, alcohol consumption in Ireland in general has fell.  Nearly 1,500 Irish pubs have close in the last five years.  The closures have hurt Guinness especially because the drink is generally preferred on draft rather than in a can or bottle.  Ireland accounts for 20% of Guinness's sales.  One out of every pint sold in Ireland is Guinness, so the future of the company is still very bright.  But for now, there is little reason to believe that confidence  will grow and spending on premium brews will increase soon.

United Continental Launches Ad Campaign

The Wall Street Journal
February 27, 2011
By Susan Carey


Five months after the merger of United Airlines and Continental Airlines, the company will introduce an interim advertising campaign.  The new ad will combine both names for the first time. It will debut on billboards and in magazines.  United, based in Chicago, is the world's largest airline by traffic.  The new ads, which won't have a slogan, will emphasize the airline's larger route network.  The company will also change its logo in March.  155 airplanes have been repainted.  The two carriers will not combine website until 2012.

Hoteliers Build on the Hipness Factor

The Wall Street Journal
February 22, 2011
By Kris Hudson and Alexandra Berzon

New hotels that boast elaborate bars and fancy restaurants and decor are in the works.  The format costs more to build than a standrad chain hotel, but it can also be more profitable.  This new trend doesn't even have a commonly accepted name for these buildings.  This is a clear example of a new product-new market strategy as our class learned.  These hotels can also be more profitable because they attract large crowds other than hotel guests.

Marketers Ready to Interact on Oscar Night .

The Wall Street Journal

Frebruary 23, 2011

By Emily Steel

Marketers will be using new ways to get across to their market during Sunday's Academy Awards.  Consumers are watching it on televison, but more and more they are also online while they watch.  Last year 13% of viewers were simultaneously on the Web, up from 8% the previous year.  During the Super Bowl a few weeks ago Twitter noticed that 30% of its messages were related to the game.  One important task for marketers will be to not over-step their bounds to the point where they annoy consumers.  Ad exectutuves claim that their efforts into real time marketing are in the early stages.  They are certainly on the forefront of how marketing will be done in the future.

Whitens, Brightens and Confuses

The Wall Street Journal
February 23, 2011
By Ellen Byron

There has been an explosion of new toothpastes in the last few years.  New kinds that whiten, reduce plaque, curb sensitivity, and fight gingivitis come in all forms, shapes, and sizes.  They are certainly cluttering the toothpaste aisle.  Manufacturers realize this and are beginning to hold off on new product development.  69 new kinds were introduced last year, down from 102 the year before.  Proctor & Gambel, makes of Crest, are realizing that fewer is better, reducing their number of oral-care products in the past two years.  Even during the recession, the price of toothpaste rose.  Many dentists think the difference between brands aren't very meaningful. 

Heinz Adopts Greener Ketchup Bottle

The Wall Street Journal
February 23, 2011
By Mike Esterl

Heinz ketchup is borrowing Coca-Cola's plant bottle packaging in an effort to go green and use less petroleum.  The new bottle will look and feel the same as the old one, except for the label which will read "Guess what my bottle is made of?"  This will be Heinz's biggest makeover since 1983 when they introduced their plastic bottle.  Heinz is also looking t partner with Coca-Cola in other areas such as supply chain management, which we learned about.  Interestingly, the cost of this new packaging is slightly higher than the tradition technique, but that could change in time as they build more scale of oil prices continue to rise. 

Ryanair to Target Advertising on Boarding Passes

The Wall Street Journal   FEBRUARY 21, 2011 By DANIEL MICHAELS

Irish budget airline Ryanair Holdings is attempting to generate more sales in other ways than tickets.  They will be tailoring pitches directed at the individual to make higher ad rates, therefore keeping ticket prices low.  Their business model is selling tickets cheap then making money selling other products and services.  Airlines world-wide are trending to focus on generating ancillary revenue, which accounts for less than 5% of revenue for most carriers.  Ancillary revenue for Ryanair is about 20%.  Ads will appear on airplane tickets, targeting spending before the flight rather than after arrival.  This new technique using passenger data may cause for an overhaul of computer systems.

Jameson Pours Out Tall Tale

The Wall Street Journal
FEBRUARY 17, 2011
By CHRISTINA PASSARIELLO And MAX COLCHESTER

Irish whiskey brand Jameson continues their humorous company history ad campaign.  The latest commercial will again feature founder John Jameson caught up in a fiction tale about saving his beloved whiskey.  Jameson has made use of tradition and company heritage to enhance their aura and justify premium prices.  Jameson's target market is men ages 25 through 35.  Some consumers tend to buy premium labels such as Jameson for its status rather than taste.  Jameson's storytelling has helped is achieve a 2% whiskey market share in the United States and and 72% Irish whiskey market share.

Tropicana Swaps Carton for Carafe

The Wall Street Journal

FEBRUARY 17, 2011

By MIKE ESTERL

After extensive recent market research, Pepsi is switching Tropicana's old carton to clear plastic carafes.  This is in response to Coca-Cola's Simply Orange packaging, which is steadily gaining close to Tropicana's market share.  Tropicana failed at attempting repackaging two years ago.  Research has shown that customers like to see the juice in the container.  Based on an online survey, a source of primary data, consumers tend to choose their juice based on quality first, then price.  However, nearly half noted Simply's nice packaging.  Both Pepsi and Coca-Cola have found that non-carbonated drinks are a key growth area.  Tropicana will be have the new packaging out in the coming months.

Nascar Revs Up Rough Side to Win Back Fans

The Wall Street Journal
FEBRUARY 14, 2011
By VALERIE BAUERLEIN

Having recently seen a declining number of fans and viewership, Nascar looks to bounce back this season.  Only a few years ago Nascar was a booming sport in popularity. The television contract signed in 2001 broadened Nascar's fan base greatly.  Nascar's most loyal fans, the blue collar type, were hit especially hard during the recession.  Attendance and sponsorship declined.  Many fans find Jimmie Johnson, the driver who has dominated Nascar for the last five years, to lack charisma.

Apple's Subscription Rules Raise Possible Antitrust Issues

The Wall Street Journal
FEBRUARY 15, 2011
By NATHAN KOPPEL

Apple's new subscription service has fallen under antitrust scrutiny.  Publishers will be allowed to sell subscriptions of various media via Apple products under two conditions: subscriptions must be sold through Apple's store and subscriptions outside of Apple must allow Apple to sell for the same price or less.  What will be key is determining how much control of the market Apple currently has.  As we learned, trusts limit competition and therefore raise price, hurting the consumer.  Publishers may be concerned that Apple is using their dominant control of the market to restrict competition.

New York Times Ad Revenue Slips, Profit Falls

The Wall Street Journal
FEBRUARY 3, 2011
By RUSSELL ADAMS

Transformation in the newspaper industry and the economy has recently hit the New York Times hard.  Declines in print advertising helped contribute to a 26% decline in fourth quarter profits for the New York Times.  Print Advertising accounts for about 80% of profits for the company who has over half a billions dollars of debt.  Nytimes.com will start charging its most frequent readers.  Plans are to offer readers the first few articles in full for free then force them to subscribe in order to read further.  The company continues to cut costs and sees no end in near sight.  It is sad to see what was such a powerful industry in tatters, and fading fast.

Promoter Crowds Ticketmaster

The Wall Street Journal
FEBRUARY 3, 2011
By ETHAN SMITH

Since Live Nation has merged with Ticketmaster it seems as if they have had a monopoly in concert ticket sales.  Anti-trust regulators have required that new-to-the-business  Anschutz Entertainment Group be allowed to compete for sales.  AEG expects to be selling tickets by the end of the year.  Many people in the concert business have been concerned that the Live Nation - Ticketmaster merger created a force too powerful.  Personally, I am happy to hear about this considering the high service charge fees I've paid in the past when ordering concert tickets.  Hopefully the new competition puts an end to that.

GM Makes Hybrid Push

The Wall Street Journal
FEBRUARY 7, 2011
By MIKE RAMSEY

Trying to improve fuel technology and compete with rising new miles per gallon targets, GM will be promoting the Buick LaCrosse this summer.  For a company who has traditionally has trouble launching and marketing new products, this will be a key test for the new management.  Taking a unique approach from its competition, GM will not call it a hybrid, but an eAssist.  Perhaps this is a move to differentiate themselves from Toyota.  GM exectutive Mark Reuss wants to under-promise and over-deliver.   The 2012 Buick LaCrosse, a full-size sedan, will get as much as 37 mpg on the highway and 25 mpg in the city.

From Diapers to 'Depends': Marketers Discreetly Retool for Aging Boomers

The Wall Street Journal
February 5, 2011
By ELLEN BYRON


The oldest of the Baby-Boomers Generation (born 1946-1964) are beginning to retire, and marketers are carefully adjusting to their needs.  Boomers are independent and don't want to be treated like they're old.  However, to accommodate the largest generation, companies in all industries are changing the way they come across to this group.  They are doing things such as making type-faces larger and rearranging stores to make them more accessible.  In the past senior citizens weren't targeted greatly because they weren't seen as spenders and rarely tried new products.  Now, that conventional idea will be flipped around.  One concern is that the recent economic downturn has caused boomers to break into their nest-egg early.  Research shows that 60% of boomers feel younger than their age, so it is important to provide changes without being explicit.

At Super Bowl, Many Ads Fail to Score

The Wall Street Journal
FEBRUARY 7, 2011

By EMILY STEEL

Published immediately after the conclusion of Super Bowl XLV, this article says 2011was a weak advertising year.  Compared to past years, this one was relatively unmemorable.  One reason is the heavy amount of ads by automakers and film studios, which tend not to create the most appealing commercials.  Some highly anticipated ads were flops.  The winners this year were Pepsi and Doritos, each having a few strong spots.  Most importantly, the real winners will be the ones that stick in the mind of the people. 

Taco Bell Counters Lawsuit

The Wall Street Journal
JANUARY 29, 2011
By MAXWELL MURPHY

Taco Bell, who has recently been on the wrong end of a lawsuit which claims their ground beef is in fact not 100% beef, has taken out full page ads in major newspapers to try and stop the bleeding.  The suit wants Taco Bell to refer to its beef as "taco meat filling."  The damage control campaign includes a YouTube video by Taco Bell President Greg Creed.  Unfortunately for Taco Bell, they must invest in this marketing campaign in order to prevent losing customers - not attract new ones.  I can recollect similar circumstances for other big fast food chains in the recent past, which leads to my opinion that this will blow over quicker than expected - fast food eaters seem to be a loyal bunch.

Take Two: TV Ads Boost Players' Personas

The Wall Street Journal
JANUARY 14, 2011
By JOHN PAUL NEWPORT

December and January make golfers feel a little out of their element.  During the Winter, the professionals have a little extra time on their hands, and if lucky enough, use it to do some promotions for their sponsors.  Davis Love III, Fred Couples, and Paula Creamer know the importance of branding.  Love said he is at the age where he is a brand himself.  After all, aren't we all?  Surely our class knows we ourselves our the most important brand.  Anybody who has watched the final round of a golf tournament on Sunday knows the commercials are a little different.  Their target market are golfers, who tend to be older males with high income.  There should be no surprise then, on Sunday, as why we see ads for not only golf brands, but retirement agencies and high end luxury cars.

At P&G, Beauty Makeover Needs to Prove It Has Legs

The Wall Street Journal
JANUARY 26, 2011
By ELLEN BYRON



Proctor and Gamble, the company of many brands, invested billions of dollars into their beauty products and are not satisfied with the weak growth of the that division.  P&G is breaking one of their oldest and most important rules: manage each product like its own company.  Instead P&G is now pooling products together in ad budgets.  Also, they are expanding target markets outside of North America.  Results of these changes are pending, but they have seen some growth in the past few quarters.  This article reminded me of what I read in Chapter 2, which defended Proctor and Gamble's multiple product strategy.  Rather than having all their eggs in the same basket, P&G has the benefit of diversification.  A slow product line can be "picked up" by the others.

Mobile Apps Drawing in Shoppers, Marketers

The Wall Street Journal

JANUARY 31, 2011

By GEOFFREY A. FOWLER

Marketers have found a new bait to reel customers into stores: cell phone applications.  Apps such as Shopkick and Foursquare offer rewards and discounts to shoppers just for walking into a store.  The Chief Marketing Officer at Sports Authority claims that there has definitely been more traffic in stores because of the new experiment.   Users accumulate loyalty points when they use the app in stores, and can redeem the points for gift cards and other prizes.  Also, product purchases via cell phone rewards apps can be easily measured.  Giving customers an incentive to go into the store has certainly been done before, but never like this.  Technology again is changing how marketers will communicate with their customers.

The Week Ahead: Surging Viewers Draw Super Bowl Ads

The Wall Street Journal

JANUARY 31, 2011

By SAM SCHECHNER And EMILY STEEL

I thought it would be fitting that the first entry into this marketing journal would be about one of the most talked about and expensive advertising efforts every year: Super Bowl commercials.  Advertisers will sure get their money's ($3 million) worth this year.  The game features Green Bay and Pittsburgh, two teams with huge followings - which, according to the article, is more important than the size of their home city in predicting ratings.  Several marketers, such as CareerBuilder, will include digital extensions of their campaigns.  CareerBuilder, who has seen great return in revenue and traffic, will be advertising on the last Sunday of the football season for its seventh consecutive year.  This reminded me what I read in Chapter 2; marketing must be looked at as an investment, not an expense.