5 Blogs Before Lunch

Good Times Ahead for the Television Advertising Market

The market for network and cable TV ads appears to be improving, with marketers agreeing to much higher rates than they did last spring.

David Levy, president of sales for Turner Entertainment says: "It is a little too early to declare victory, but the market is definitely improving."

From the Los Angeles Times:

A fourth quarter described by one top network sales executive as "gangbusters" amazed even veterans who have lived through several economic cycles. Only five months ago, the industry was bracing for another dismal year as TV network sales teams were engaged in protracted negotiations with advertisers that were demanding that the networks roll back prices as much as 20%. Networks eventually agreed to trim rates about 5% to 8% to mollify advertisers and begin unloading their time.

But now, in some cases, advertisers have agreed to pay rates 10% to 35% higher than the prices established in June and July, when the networks sold the bulk of their time for the new TV season. In addition, advertisers that placed their orders in the summer are honoring their commitments. Network executives said that few advertisers have canceled their orders for commercial spots, in contrast with a year ago.

"We have all been surprised that the ad market has come back this soon," said Gary Carr, executive director of national broadcast for the advertising firm TargetCast. The networks, he said, also face easier comparisons because last fall, with banks failing and the economy on the skids, companies were afraid to spend on advertising.

Tiger Woods: Keeping Corporate Sponsors On Edge

Tiger Woods' 2am car crash and media drama this weekend undoubtedly kept (and is keeping) a lot of corporate marketers on edge. Was he OK? How badly was he hurt? Were alcohol or drugs involved? Was it tied to a domestic dispute over a mistress?

When signing an endorsement deal with a celebrity, marketers immediately link their brand with the reputation of the celebrity. They sign on for the positive associations--and hope to avoid negative brand reputations.

Tiger has been pretty straight-laced up to this point, and most likely considered "a good risk" by marketers.

But the activity outside Wood's home in Florida this weekend may have thrown millions of dollars in endorsements (and company sales) up in limbo.

Consider the number of high-profile endorsement deals he put on the line when he headed out that driveway in his Cadillac Escalade: Accenture, AT&T, EA Sports, Gatorade, Gillette, Golf Digest, Net Jets, Nike, Tag Hauer, Tatwee: The Tiger Woods Dubai, TLC Laser Eye Center, Upper Deck, not to mention th PGA Tour.

The drama will most likely continue for a little while longer, and keep those marketers with one eye on TMZ.com, and on speed-dial with the their publicity and legal departments.

PETA Thanksgiving ad runs afowl of NBC

An ad promoting a vegan diet from People for the Ethical Treatment of Animals that was to air during Macy's Thanksgiving Day Parade was rejected by four NBC affiliates. The stations who turned down the ad are in Raleigh, N.C., Columbia, S.C., Savannah, Ga., and Little Rock, Ark. and opposed running the ad during the parade.  During late-night, however, the network says it would consider airing the ad.

The commercial depicts a young girl saying grace at Thanksgiving, giving thanks for "the turkey farms where they pack them into dark, tiny little sheds for their whole lives."

PETA says "In hopes of empowering kids everywhere to speak out as their families adorn their Thanksgiving tables with dead birds, PETA offers its Thanskgiving ad, 'Grace.' In the ad, you hear from one straightforward little girl as she tells it exactly like it is for turkeys who are killed for holiday meals when asked to say grace around her family's dinner table."

Source: TVNewsCheck and PETA

L’Oréal Elvive Full Restore 5 Seen As Deceptive By Consumers

An ad in the UK for L’Oréal Elvive Full Restore 5 shampoo and conditioner is coming under fire for deceptive claims.

The ads promise to tackle weak, limp, lifeless, dull or straw-like hair, by making it feel stronger, weightless and silkier.

Problem is, the spokesmodel, Cheryl Cole, a singer and television talent-show judge, uses acyrilic extentions in her hair.

During the spot, a message flashes up, saying her hair is “styled with some natural extensions.” In magazine ads, there is a similar disclaimer. Critics say the disclaimer remains on screen for fewer than two seconds and the magazine advertisements, the hair extensions are mentioned in print a miniscule 2mm high.

The UK advertising watchdog, the Advertising Standards Authority (ASA) said it had rejected 13 complaints that the ads were misleading because the disclaimer about Cole’s hair extensions was “clear and legible”.

So, legally L’Oréal  is in the clear, but what will it do to the company's reputation and sales?

Well, chances are, not much. Consumers tend to have short memories. The problem is, advertising should do much more than "not hurt" sales. The ad should clearly be pulled immediately--replaced by one with a more credible claim.

" Source: London Times

Black Friday: A Good Day to Shop with your Mobile Phone

More consumers are comparison-shopping and making purchases via their mobile phones this year, based on Black Friday numbers. PayPal reportedly saw a roughly 650% increase on mobile payments, while mobile product searches also increased.

Could it be the tipping point for mobile phone shopping use?

We may be getting to the point where there is a proliferation of smart phones and savvier and more comfortable users willing to use them for more than email and as a traditional phones.

From The Wall Street Journal:

Searches from mobile devices jumped from around 5,000 on Black Friday in 2008 to roughly 200,000 this year, said Siva Kumar, chief executive of TheFind.com, a product search engine.

"People were taking advantage of their mobile phones to compare prices once they were inside stores," Mr. Kumar said.