Club, Spa, Resort, and Healthcare Marketing

What Advertising Channels Should Your Business Use?

An experiment was recently conducted examining the effectiveness of seven different types of online advertising.  The researchers’ conclusions were interesting and relevant to businesses trying to figure out how to properly leverage social media and online marketing to engage their customer base.  It turned out that corporate pages with logos (such as Facebook Fan Pages) and widgets (such as interactive elements) were the most popular in engaging users but weak as far as creating intent to purchase.  Banner ads and email newsletters (traditional online media) had the opposite effect.  Though these traditional online media channels had the lowest engagement rates, they produced the highest rates of purchasing intent.

What does this mean for the average small business trying to figure out where to concentrate their efforts?  According to this experiment, just having a social media presence would not be enough to drive purchases, but only focusing on traditional advertising like banner ads and email newsletters will not effectively increase your customer base.  In fact, the most powerful strategy would seem to be using social channels to engage new users and create community and then complement the social media advertising with traditional banner ads and email newsletters to re-engage the community and drive product purchases.

Many advertising analysts have pointed out that new customer acquisition is a weakness of traditional online advertising, even if the re-engagement of existing customers was stellar.  Social media advertising provides a solution to customer acquisition and effectively complements but does not replace traditional online ads. By using traditional advertising channels to reinforce social media, businesses can create a self-reinforcing virtuous cycle, increasing both their engagement and reach with customers.

What Advertising Channels Should Your Business Use?.

Foxwoods Debt Talks Prove Test of Tribal Bets

With a mid-July deadline looming for a big payment to its lenders, the Indian tribe that runs the nation's largest casino is in talks with banks and bondholders about how best to restructure more than $2 billion in debt that it can no longer afford.The Mashantucket Pequot Tribal Nation, which owns and operates Foxwoods Resort Casino in Ledyard, Conn., wants bondholders to wipe out a significant portion of its roughly $1.3 billion in bond debt, in some cases paring the tribe's obligations by at least half, people familiar with the matter said.

The bondholders are working on a counteroffer that could include small cuts in the debt and would ease the repayment terms, the people said. The bondholders haven’t yet coalesced around one approach, these people said.

The talks have raised issues unique to Native American gambling that investors once dismissed, such as tribes’ rights as sovereign nations. The talks also have broached questions about the way the Pequot tribe spends the income from its casino, which is the largest in the U.S. by space and gambling positions like slot machines.

The deadline involves a $700 million revolving credit facility the tribe tapped from banks led by Bank of America Corp.’s Merrill Lynch. The facility matures on July 13 and the tribe would need to pay off the entire credit line on that day, though it is likely to seek an extension because of the slow progress of the talks. The Pequots breached a covenant on that debt in the fall and have received several waivers on that breach since.

via Foxwoods Debt Talks Prove Test of Tribal Bets – WSJ.com.

Social Networking Study: Facebook Use Continues to Rise; Brand Participation and Engagement Heavily Welcomed by Social Networkers

51 Percent Say Social Sites the Best Way to Communicate with Friends and Family; 40 Percent Use Social Sites to Connect with Brands and ProductsPerformics today released results from “S-Net The Impact of Social Media,” a report from ROI Research Inc. roiresearch.com sponsored by Performics. The study explores how social media permeates consumers’ lives and affects communication, shopping and other activities. Despite increased industry chatter over privacy concerns, the findings illustrate how social networks continue to drive changes in consumer behavior online and offer insights for marketers seeking to capitalize on emerging social media opportunities.The study of 3,000 U.S. social network users tackled not only general behaviors and platform preferences for social sites; it delved deeper into how social sites affect family and friend relationships and consumer attitudes towards brands and products. The most staggering statistics include: Eighty percent of respondents have an active Facebook account, and 23 percent of those without an active Facebook account plan to join in the next six months Sixty-seven percent of respondents have reconnected with people through social networking sites that they never would have otherwise Thirty-nine percent of Twitter users respond to other people’s tweets once a week or more More than thirty percent of respondents access Facebook and/or Twitter from their mobile phone through a browser or application once a day or more“Social networks have made real and substantial changes in the lives of their users, in part by empowering them to more actively participate with brands and each other,” said Daina Middleton, CEO of Performics. “More than a third of all respondents reported using a search engine to further learn after seeing an ad on a social networking site, for example, and more than a third think social networking sites are good sources of information about companies and products.”Consumers reported a desire to connect with brands throughout the study: Fifty percent of Facebook users click on Facebook ads to “like” a brand Thirty-seven percent learned about a new product or service from a social networking site Thirty-two percent of respondents have recommended a product/service/brand to friends via a social networking site Thirty-two percent of Twitter users re-tweet content provided by a company or product

via Social Networking Study: Facebook Use Continues to Rise; Brand Participation and Engagement Heavily Welcomed by Social Networkers – Performics Search Engine Marketing Blog.

Coffee and Email

A new study released today by ExactTarget found 58 percent of U.S. online consumers begin their day interacting with companies on email, compared to 20 percent who start their day on search engines and 11 percent on Facebook.

Based on more than 1,500 consumer interviews and surveys, Digital Morning, the first research brief in ExactTarget’s Subscribers, Fans & Followers research series, found that consumers’ early morning online preferences reflect key differences in their motivations for interacting with companies across email and social media.

“Consumers who check email first tend to be more task-oriented, subscribe to more emails and interact with brands across email and social media to obtain deals, promotions or new product information,” said Morgan Stewart, principal, ExactTarget’s research and education group. “This stands in stark contrast to people who initially check Facebook, who tend to draw firmer, more segregated boundaries and become fans of brands for entertainment purposes or to show support for a company or product.”

Key findings of the research include:

• 93 percent of U.S. consumers subscribe to email marketing messages.

• 42 percent of U.S. online consumers use Facebook at least once a day and, of these, 69 percent are a fan of one or more companies.

• 54 percent of U.S. consumers between the ages of 18 and 24 are fans of brands on Facebook.

• While consumers between the ages of 18 and 34 are the most active demographic on Facebook and Twitter, they are also among the most active on email.

• Nearly half (43 percent) of all online consumers are either fans or followers of at least one brand on Twitter or Facebook.

• 68 percent of daily Twitter users follow at least one brand, yet only 7 percent of U.S. consumers participate on Twitter with that frequency.

via Email Marketing Software, Services & Solutions from ExactTarget.

Internet Can Drive Word Of Mouth Even Better Than Television

There’s no arguing that word of mouth WOM marketing impacts sales. And while a large number of people talk about content they found online, three-quarters of the time those conversations take place offline.A recent study from Yahoo on WOM marketing demonstrates that the Internet has grown more influential when it comes to informing people through conversations about brands, even more so than TV in certain categories. The study also finds that the best vehicles for influencing WOM come from consumers who play in social networks. These “Conversation Catalysts” drive a disproportionately higher percentage of WOM activity.While many marketers have little doubt that the Internet can influence WOM marketing nearly as much as TV, the huge gap in budgets for online versus television tells a different tale, says Radha Subramanyam, Yahoo vice president, who heads corporate and media research. “There's a bit of an intellectual gap in how marketers spend their budget that doesn't exactly tie to ROI,” she says.Although only 7% of all brand-WOM conversations occur online, 38% of people have brand-WOM conversations both online or offline influenced by the Internet, which Yahoo estimates at 74 million people.Among the media channels influencing WOM, the Internet has grown while others like television and print remain flat. The level of Internet references rose to 15% in January 2010, compared with nearly 12% during the same time in the year-ago period.Despite the buzz around social media and its role in WOM, most conversations take place face to face. Media — both online and off — are influential in driving these conversations, but it's important to note that 76% of WOM conversations take place in person.

via MediaPost Publications Yahoo Study: Internet Can Drive Word Of Mouth Even Better Than Television 06/14/2010.

Agency clients focused on TV

TV is tops for advertisers, for now. That’s the conclusion of a new STRATA quarterly survey of advertising firms, which shows that while more dollars are moving to digital advertising, corporations continue to spend the majority of their ad budgets on television. STRATA is the leading provider of media buying/selling software and conducted the quarterly survey.TV remained the top advertising choice in the first quarter of 2010, with 41.8% of ad agencies saying their corporate clients are more focused on TV than any other medium. The number was down a whopping 27% from a year ago. Internet/digital advertising continues to increase with 68% reporting that their customers are more focused on digital than they were a year ago. “To advertisers, TV still matters,” said John Shelton, STRATA President/CEO. “But just as radio gave way to television, we can see that TV is slowly giving way to digital.

via STRATA | News.

Wiser, cautious luxury retail buyers are back in the game

(I’d rather watch this story for a while longer, than actually act on it… bc)

High-end retailers Nordstrom and Neiman Marcus are reporting stronger sales. At the Ed Morse car lot in Brandon, Cadillac sales in April nearly tripled from a year ago, while its sister dealership in Tampa is having a run on the high-end SRX SUVs.

And Jackie Colson-Miller, a South Tampa real estate agent dealing in luxury properties, has trouble finding enough houses in the $1.2 million and up range to satisfy deep-pocketed, out-of-town buyers.

The luxury buyer is coming back.

Perhaps wiser, decidedly pickier and more practical. But back in the game, nonetheless.

And with the combination of plenty of disposable income and plenty of bargains, the wealthy are best positioned to lead any nascent recovery of consumer spending. Last week, retailers reported tepid sales for May, up less than 3 percent, with luxury spending one of the few bright spots.

Luxury sales, in fact, grew more than three times faster last month than overall retail sales, according to a report from MasterCard Advisors SpendingPulse.

In their annual survey of affluence and wealth in the United States, American Express Publishing and Harrison Group predicted the first comeback year in three years in retail spending. That infusion, it predicts, will be confined to the wealthiest 10 percent of Americans. “The remaining 90 percent of the population will spend either the same — or less — than they have been spending since the Great Recession began in 2007,” the survey found.

via Wiser, cautious luxury retail buyers are back in the game – St. Petersburg Times.

The Politics of Oil

Frankly, I am tired of the media continuously hammering the “political” ramifications of the oil spill in the Gulf. I am tired of on camera talent (?) spinning what the political fallout might be. I’m tired of the President doing what his handlers think might (?) spin the administration in a better light.

This is lazy journalism… It’s nothing but ass energy to sit on your duff and pontificate how this will play out politically. It takes some actual work and brain cells to pick an aspect of this disaster and explore it – tell the story with passion. Give an angle that illuminates why people should care.

And I think the networks, cable news shows,  and newspapers are going to continue to pay the price as viewers and readers get tired of the same old drone. They used to like hearing the view that agreed with theirs on issues. I think now – even that – has become boring.

The President needs to get in a room with the CEO of BP,  and discuss the course of this recovery, and what role each is going to take. He needs to stop chest beating about the stock dividend and PR campaign. BP is going to act like a company. Let’s get them to focus on solving this disaster. And the President needs to assemble another “brain trust” like he has done in the past – with the focus of how to mitigate the damage; not look better on TV.

It’s clear we have lost a lot of journalistic talent over the past several years – and turned to a style that really doesn’t do any of us any good. Not the media – not the public.    bc

Two Different Takes On Advertising While Under Media Scrutiny

Good news or bad news? When do you stop and start your advertising to contradict “news” messages?

For Toyota Motor Sales, the answer — right now, anyway — is to stop advertising, first at Southeastern TV stations and now at some Northeastern TV stations.

A couple of months ago the Toyota dealers association in the Southeast thought that it wasn't getting a fair break from ABC News, which continues to cast a hard eye on the car company and the sudden-acceleration problems of some of its cars. So the group withheld ad dollars from those local ABC stations.

Now, the Greater New York Toyota Dealer Association is getting into the act, pulling back some $5 million dollars from TV stations in its markets, including WABC-TV in New York.

The underlying message is that car dealer associations obviously don't believe in the separation of church and state — advertising sales and journalism. Another message: They don't want to reward any part of a media company's activities.

via MediaPost Publications Toyota, BP: Two Different Takes On Advertising While Under Media Scrutiny 06/04/2010.

Rival Nets Angry At Fox For Upfront Pricing

Are ABC, CBS and NBC angry at Fox for its upfront negotiations?

Media executives say Fox could have set pricing for its upfront inventory higher than the average 8% or 9% price hikes it has received. In the weeks before the upfront market started, most senior network executives had been talking about hefty double-digit price increases over a year ago for the CPMs.

“Fox moved quickly, but it could have set pricing higher,” says one veteran media agency executive. “If you are ABC or CBS, you'd be angry,” and other networks as well. Says another executive: “Everyone is pissed at Fox.”

As the market leader, Fox has the ability to set the price bar. Now, many other networks, in theory, need to be priced under where Fox has settled. Media sources say ABC and CBS are now hoping to get at least the 8.0% to 8.5% price hike, just under Fox. Struggling NBC hopes to land a half a point to a point just under ABC and CBS.

But Fox may have the last laugh — especially if the TV ad market continues to be strong.

(this is actually pretty funny… what’s that old saying “pigs get fed, hogs get slaughtered…”  – bc)

via MediaPost Publications Rival Nets Angry At Fox For Upfront Pricing 06/04/2010.