Interactive Ad on TV?

According to The Wall Street Journal article, “Talking Back to the TV,” in 2008, “more than 60% of big advertisers said TV advertising had become less effective over the past two years.” However, now TV is ready to compete with the online advertising. As I wrote on the last blogging, companies have begun paying attention to engagement with consumers, but it was about the Internet. Since TV commercials were excluded from the feature of engagement with consumers, the online advertisement has grown rapidly. Eventually, TV is now available to engage with customers. How? Some companies have already started TV commercials called “interactive advertisement.”

P&G is one of the companies. Charmin toilet paper ad with interactive features has been appeared on TiVo subscribers’ TVs. As Charmin bears show up on the TV screen, a green thumb emerges in the right corner of the screen which says, “Apply now for a valuable coupon from Charmin.” If audiences click the thumb by using their remote controls, then the program freezes and asks for coupons on the screen whether they want to receive the coupons by mail. If they request the coupons, then they receive it by mail. This is the real engagement and interaction. Other types of interactive ads have aired on the satellite Direct TV and Dish Network as well.


This is the evolution of TV technology. Once, I have imagined that audiences may participate in the TV programs at home while watching the shows, but first ad succeeds to make a connection with audiences who are potential consumers of products. Actually, Unilever already have done 40 interactive ad campaigns, such Axe commercial with a bike game and Breyers ice cream with matching the scoops of ice cream. Those are all happening on the TV not on the Internet. Fortunately, TV is getting smarter. There are still many people who love TV, but TV still has to be stronger and develop against the Internet. I eager to see more that TV competes with the Internet and get back their power.

P&G wants a new payment model

In the past decade, the Internet advertising market has become so powerful. MarketingWeek reports about the importance of the online advertising, so as we all know, the amount of money is flowing into the Internet advertisement. However, the article points out the importance of “massive success of search” that “still accounts for two-thirds of online advertising spend” and strengthen the channels that magnetize most of them.

Since its convenience of containing and formulating information of financial services or products, the online advertising is so attractive to corporations. Therefore, measuring engagement is a big issue. Companies have been measured the engagement of products or services by simple CPM deals or click-through rate.

However, Procter & Gamble had a briefing with media owners about a new payment model: beyond just seeing advertisement or sign up for e-newsletters. For instance, companies pay as consumers watch videos and play games. Online publishers and media agencies responded differently. They worry about the definition of success in advertising because of utilizing their own metric rather than using the apparent click measurement.

Now, the dependency on the Internet in the society has grown tremendously. It truly becomes a part of our lives. The online advertising has been growing fast so far and it will take most of the pie in few decades unless a better device emerges. Therefore, as P&G points out, a new model payment for online ads is inescapable to be more efficient to charge ad payments.

The Mobile Era

The mobile marketing is getting important for companies and the impact of the mobile marketing on the advertisement may change the environment of the marketing industry. Recently, Google bought AdMob.com which is the mobile advertising network. AdMob, which also advertise Procter & Gamble over mobile pohones, will help Google with the mobile ads. Google paid $750 million dollars for this company. We can reach anyone who has a cell phone in a minute, and the cell phone became an essential possession with high technology which enables the Internet access and more.

The Mobile Marketing Association (MMA) recently announced the finalists for its Fifth Annual Global Mobile Marketing Awards, and Proctor & Gamble is one of the finalities recognized by MMA. 2ergo India, a marketing company, promoted the Olay mCoupon campaign via mobiles in India. They offered a complete mobile ticketing, coupon, and customer loyalty solution. There are over 450M mobile subscribers in India, and the number of people using mobiles will rapidly increase not only in India but also China and all over the world.

Within a few decades, I imagine that we no longer receive paper coupons as now we received a cell phone bill and a bank statement via e-mail. Everything seems fast and convenient in terms of getting information because of the smartphone. People bring the most powerful information tool in their pockets, and it sticks us everyday. The media industry should focus on the small device, the smartphone, to reach as many audiences as they possible.

The Online Ad in the Future

Online advertisement becomes crucial. It is believed as the next level of the marketing tool and it already has happened. According to Jeff Levick, AOL President of global advertising and strategy, “marketers can no longer rely on TV to provide them with a safe environment to advertise.” Also, a senior marketer at P&G said, “more than 60% of network programming will be reality television and I can’t put my brand there.”

We already have seen many reality shows and still see some products on the shows. However, it is getting difficult that the products get involved with the reality shows since the reality TV shows are less relevant to the scripts directed by directors and advertisers. That means the products on the shows are less under control of marketers if you do not set up the reality show which directly related to the product. For example, the “Iron Chef” show was sponsored by the soy sauce company, Kikkoman and the candidate chefs made Japanese food, Yakitori, with many different types of Kikkoman soy sauces. As this indicates, the TV advertising will be limited, but it could be more relevant to the product and marketing.

Levick points out the three stages in the life cycle of online:
1. between 1990 and 2000 - getting people online
2. between 2000 and 2010 - connectivity and platforms
3. in the next decade - content, because people are consuming more online.

Digital technology and online have developed and becomes ubiquitous in our daily lives. Lastly, Levick mentions about the “niche.” He said the niche audiences are the real opportunity and also the challenge for brand advertisers. Individual consumers are reached by search on Google, the search engine, and people carry their mobiles in their pockets everyday with the Internet connection. Therefore, advertisers should be smarter and adjust themselves to understand individual tastes rather than general statistic flavors.

De Moda Produced by P&G

AdvertusugAge announced that P&G produce “De Moda,” a Web Fashion Show for Hispanic women. This show is mainly targeting Hispanic women in America. This show is derived from “The Thread,” which also P&G produces. On the first episode, “De Moda” dealt with celebrities wearing cheap clothes on the red carpet, which was the popular topic last year that “The Thread” focused on. During the show, P&G products appear naturally to appeal to the audiences. For instance, “De Mosda’s” host and a model went to a New York salon for a hair makeover involving Herbal Essences, a P&G product. Also, Dawn and Olay will be held on celebrity hands in the upcoming episodes.

P&G’s strategies on “De Moda” that they more selected Latina stars for Latino audiences and hired Spanish-speaking host and producers for this program. Thus, they created the unique and friendly environment for the specific segment. Hispanic audience in America will absolutely like to watch the show since this web fashion show satisfies the Latino audiences’ desire and convenience regarding inexpensive clothes information and language. These points will attract many Latino audiences who speak Spanish and like Hispanic culture.

Since many Hispanic immigrants live in U.S, many media such as TV shows, news papers, and magazines already have Spanish versions. This web fashion show is also one of them. The diversity of ethnics in America forces media industry to become diverse and specific to reach audiences because of the different taste and desire of audiences. Media are the part of our daily routine; we are exposed to media everywhere-TV, the Internet, on the street, and ad etc. It seems to me that media should be smarter to attract many audiences who have their own culture and styles.

AOL Television with P&G

According to MediaPost, AOL Television launched and produced a new free on-demand Web series named “Outside the Box.” This is the interviewing program that popular TV program actors and actresses come out and answer questions submitted by fans. For instance, “How similar are you to your characters” and “What’s been your favorite storyline or 'Active' role on the show so far.” Many popular TV programs’ actors and actresses were on the show-Eastwick, Modern Family, Cougar Town, and Dollhouse etc... AOL expected to attract many advertisers to a new free Web series.

Since “Hulu” succeeded in the free Internet TV show and attracted many advertisers, the Internet TV became crucial for advertisement and TV business. As you see the video clips on “Outside the Box,” you will see the “Pentene” commercial before starting stars’ interviews. So far, P&G which owns Pentene hair products is the first and only company that made the ad partnership with “Outside the Box.” Most companies seek for the best spot for their advertisement, and recently the free Internet TV series became so popular as the powerful marketing tool.

I also imagine that P&G could produce or own their own TV shows on the Internet or broadcast because they have hundreds products and spend the amount of money every year for ads. If they have their own TV channels and programs, then they could reduce the cost of ads. It may sound weird if P&G produces TV shows, but if they buy a TV channel or shows and advertises as much as they want for free , then it might be very efficient to manage their advertisement. This is just my imagination, but you never know as Comcast is considering buying NBC to own "Hulu." P&G could also buy any media company for their own purpose especially for advertisement.