Thursday, October 4, 2007
IS ADVERTISING DEAD
PROLOGUE
I have wanted to write a Blog for some time. My background is in the entertainment industry having spent almost forty years in various aspects of entertainment, but I also have other interests and “opinions!” When my good friend David who controls this web site invited me to create a Blog, I was and am still very excited. However, with the opportunity, comes the responsibility to make sure there is “content.” This obligation gives one a greater respect for those people who everyday put out a column in the newspaper - - it is a tough assignment to keep things fresh and more importantly “interesting.” I would right now like to be very candid and personal with those of you who are reading my Blog. I have written for magazines and entertainment publications since the late 1980’s through today. I keep a file of everything I have written and thought, I could use these articles to get me started by updating the information and “editing” a bit. However right in the middle of this “game plan,” I was reading my current issue of Inc. Magazine (I really enjoy this publication - - used to favor Success Magazine when it was around). Anyway, there on page 74 my first inspiration came along. I was at first going to write Kambri Crews about her letter to the Ask inc. column with my thoughts and insight. But then I remembered “I have a Blog!!!” So now I may share my thoughts with Ms. Crews - - who I believe I may help, but pass it along to anyone who happens to read this Blog and may benefit from my knowledge and experiences - - now this is really “exciting!!!” In the past when I have written articles for Night Club and Bar Magazine, I have gotten faxes, e-mails and even telephone calls from readers expressing interest and having questions which I have gladly answered. Now I am looking forward to a wider range of people that I may be able to touch. So with that said, here goes for Ms. Kambri Crews, founder of Ballyhoo Promotions in New York City.
BLOG October 04 2007
Ms. Crews wrote and asked the question: “I’m promoting a new comedy club. We’ve run television, radio, and print ads, each with discount codes to help track responses, but had little or no return. I want to try another campaign, but I’m not sure it’s worth the cost. Is advertising dead?”
With all proper respect to Hap Klopp who responds to question in this column, I do not think he has the first person experience to properly respond to Ms. Crews - -I do.
First let’s answer the question - - “is advertising dead?” Advertising is NEVER dead for the “big boys.” If you are selling cars, soft drinks, beer, and toilet paper - - NO - their main goal is positioning in the mind of the consumer. When it is time for either a car or a roll of toilet paper, the respective manufacturers do not what to be left out of the thought process. Many years ago (late 1980s) when all of the stir was about advertising alcoholic products on radio and television and there was a buzz in the congress about passing a law outlawing the advertising of these products (similar to cigarettes) Mr. Busch, which one I do not remember, from Anheuser-Busch stated at the time, he would “welcome” such a ban because it would save money and probably not affect the bottom line that much, since all the advertising did was maintain their market position. In other words if in a given hour there were commercials for Coors, Miller and Rolling Rock, he needed to run a Budweiser commercial so that the consumer when he went to the package store, would not forget his option to buy Budweiser along with Coors, Miller and Rolling Rock. At the time of this discussion I recall that using cigarettes as an example it was stated that twenty-three (23) new brands had been introduced to the market without benefit of radio or television advertising. Since the mid-1980s I am sure there have been many more cigarette brands that have found their way to the market place and been successful, in addition “line extension” of established brands such as Camel and Salem to name two have flourished and made impacts on the consumer.
Moving down to the businesses that is looking for anywhere from 200 to 20000 potential customers (entertainment venues such as clubs to concert halls such as arenas) it has become a more difficult task to reach the target market.
In 1986 I took over Hammerjacks Night Club in Baltimore, Maryland for the booking of all national talent and the placing of all media advertising. When I walked in the door as a consultant the club was operating at a deficit of somewhere in the neighborhood of One Hundred Thousand Dollars ($100000.00) for the year. Once I proceeded to establish a booking schedule with talent that had market value, I constructed the media plan which we followed with great success over the following years. 1987 saw gross taxable liquor sales of $3.2 Million, 1988 $3.8 and 1989 $5.2 Million dollars. My media budget was in the neighborhood of $350000.0 annually. What I did and why I was successful was to take radio where I had the main A.O.R. (Album Oriented Radio) station WIYY-FM (98-ROCK) and purchase fixed position commercials on Thursday and Friday at 3:45PM, 4:45PM and 5:45PM which captured the afternoon drive people, on Thursday making plans for the weekend and Friday reinforcing the weekend plans. I used the same scheduling for any off nights when I had a national show coming in. These were piggy back spots mentioning as many as six upcoming events and also I voiced my own spots so they were distinctive - - you heard my voice and knew it was about Hammerjacks Night Club. Using a radio station on-air personality to read my commercial when he or she had just finished reading three other night club spots did not get it. I also used the entertainment weekly newspaper (The City Paper) but bought the center section the first weekend of the month, knowing it would stand out. All of this was great in the 1980s and 1990s when the target market I was trying to reach was “locked in” to these main sources for their entertainment information. Also radio station WIYY-FM reinforced what I was doing because their play list was what I was booking in live.
Now let’s look at 2007, it is not your “father’s marketplace!” The entertainment consumer is all over the place and is very impatient. In the 1980s and 1990s we faced a little bit of “button pushing.” Now the entertainment provider faces a real problem of “where is my market and how do I reach them?”
It is the Internet. No question in my mind about that. In order to be successful, whether you have a comedy club that holds 250 or a concert promotion with an arena with a capacity of 20000, you must stat by “preaching to the choir.” Get the core audience used to going to your web site for information on what is coming up and you will be successful and cost effective. From there you can use radio and television effectively, by finding out what the “choir” listens to - - if anything! With satellite radio, iPODS, MP3 plays, CD Players, downloads, My Space, and now You Tube the “buzz” comes from everywhere and the younger the audience you are trying to attract the more carefully you must do the research. For commercial radio I would only use it if I were booking an artist that they have interest in and will work with you on not only your buying spots, but them co-promoting the event with ticket give-away and promo spots. I like cable television because it narrows down the target market you are going after. However, remember just because it is MTV or VH1 does not mean it will deliver because there is a lot of clutter in the mix with age and viewer interests. With a comedy club you have a better chance of success by buying the local inset on
Comedy Central that is going to give you your target market (people interested in comedy) and if you find the programs that feature the comic you are promoting - - home run!!! I also like CNN and Fox News. Why you ask? Because the after midnight buys are so cheap and if you get “lucky” and a big news item breaks, you are right in the middle of the mix for very little investment. I use the example of the Saturday night Princesses Diana was in the car crash in Paris. Ask 100 people where they were and what they tuned into for the news of whether she was alive or deceased and I would guarantee at least 80% will say CNN - - you would be lucky to find 20% with the answer of CBS, NBC or ABC. I can only speak for Baltimore, but when I last checked it was $25.00 for a :30 second spot on CNN after 12Midnight.
I am going to e-mail this to Kambri Crews and I will let you know in a future Blog if I receive a response and what it was.
My answer to the question “Is advertising dead?” Yes, in the 1980s and 1990s format, but you still need it to flourish and profit, but it is a different game now and do not buy into the old “sales pitch!”
I have wanted to write a Blog for some time. My background is in the entertainment industry having spent almost forty years in various aspects of entertainment, but I also have other interests and “opinions!” When my good friend David who controls this web site invited me to create a Blog, I was and am still very excited. However, with the opportunity, comes the responsibility to make sure there is “content.” This obligation gives one a greater respect for those people who everyday put out a column in the newspaper - - it is a tough assignment to keep things fresh and more importantly “interesting.” I would right now like to be very candid and personal with those of you who are reading my Blog. I have written for magazines and entertainment publications since the late 1980’s through today. I keep a file of everything I have written and thought, I could use these articles to get me started by updating the information and “editing” a bit. However right in the middle of this “game plan,” I was reading my current issue of Inc. Magazine (I really enjoy this publication - - used to favor Success Magazine when it was around). Anyway, there on page 74 my first inspiration came along. I was at first going to write Kambri Crews about her letter to the Ask inc. column with my thoughts and insight. But then I remembered “I have a Blog!!!” So now I may share my thoughts with Ms. Crews - - who I believe I may help, but pass it along to anyone who happens to read this Blog and may benefit from my knowledge and experiences - - now this is really “exciting!!!” In the past when I have written articles for Night Club and Bar Magazine, I have gotten faxes, e-mails and even telephone calls from readers expressing interest and having questions which I have gladly answered. Now I am looking forward to a wider range of people that I may be able to touch. So with that said, here goes for Ms. Kambri Crews, founder of Ballyhoo Promotions in New York City.
BLOG October 04 2007
Ms. Crews wrote and asked the question: “I’m promoting a new comedy club. We’ve run television, radio, and print ads, each with discount codes to help track responses, but had little or no return. I want to try another campaign, but I’m not sure it’s worth the cost. Is advertising dead?”
With all proper respect to Hap Klopp who responds to question in this column, I do not think he has the first person experience to properly respond to Ms. Crews - -I do.
First let’s answer the question - - “is advertising dead?” Advertising is NEVER dead for the “big boys.” If you are selling cars, soft drinks, beer, and toilet paper - - NO - their main goal is positioning in the mind of the consumer. When it is time for either a car or a roll of toilet paper, the respective manufacturers do not what to be left out of the thought process. Many years ago (late 1980s) when all of the stir was about advertising alcoholic products on radio and television and there was a buzz in the congress about passing a law outlawing the advertising of these products (similar to cigarettes) Mr. Busch, which one I do not remember, from Anheuser-Busch stated at the time, he would “welcome” such a ban because it would save money and probably not affect the bottom line that much, since all the advertising did was maintain their market position. In other words if in a given hour there were commercials for Coors, Miller and Rolling Rock, he needed to run a Budweiser commercial so that the consumer when he went to the package store, would not forget his option to buy Budweiser along with Coors, Miller and Rolling Rock. At the time of this discussion I recall that using cigarettes as an example it was stated that twenty-three (23) new brands had been introduced to the market without benefit of radio or television advertising. Since the mid-1980s I am sure there have been many more cigarette brands that have found their way to the market place and been successful, in addition “line extension” of established brands such as Camel and Salem to name two have flourished and made impacts on the consumer.
Moving down to the businesses that is looking for anywhere from 200 to 20000 potential customers (entertainment venues such as clubs to concert halls such as arenas) it has become a more difficult task to reach the target market.
In 1986 I took over Hammerjacks Night Club in Baltimore, Maryland for the booking of all national talent and the placing of all media advertising. When I walked in the door as a consultant the club was operating at a deficit of somewhere in the neighborhood of One Hundred Thousand Dollars ($100000.00) for the year. Once I proceeded to establish a booking schedule with talent that had market value, I constructed the media plan which we followed with great success over the following years. 1987 saw gross taxable liquor sales of $3.2 Million, 1988 $3.8 and 1989 $5.2 Million dollars. My media budget was in the neighborhood of $350000.0 annually. What I did and why I was successful was to take radio where I had the main A.O.R. (Album Oriented Radio) station WIYY-FM (98-ROCK) and purchase fixed position commercials on Thursday and Friday at 3:45PM, 4:45PM and 5:45PM which captured the afternoon drive people, on Thursday making plans for the weekend and Friday reinforcing the weekend plans. I used the same scheduling for any off nights when I had a national show coming in. These were piggy back spots mentioning as many as six upcoming events and also I voiced my own spots so they were distinctive - - you heard my voice and knew it was about Hammerjacks Night Club. Using a radio station on-air personality to read my commercial when he or she had just finished reading three other night club spots did not get it. I also used the entertainment weekly newspaper (The City Paper) but bought the center section the first weekend of the month, knowing it would stand out. All of this was great in the 1980s and 1990s when the target market I was trying to reach was “locked in” to these main sources for their entertainment information. Also radio station WIYY-FM reinforced what I was doing because their play list was what I was booking in live.
Now let’s look at 2007, it is not your “father’s marketplace!” The entertainment consumer is all over the place and is very impatient. In the 1980s and 1990s we faced a little bit of “button pushing.” Now the entertainment provider faces a real problem of “where is my market and how do I reach them?”
It is the Internet. No question in my mind about that. In order to be successful, whether you have a comedy club that holds 250 or a concert promotion with an arena with a capacity of 20000, you must stat by “preaching to the choir.” Get the core audience used to going to your web site for information on what is coming up and you will be successful and cost effective. From there you can use radio and television effectively, by finding out what the “choir” listens to - - if anything! With satellite radio, iPODS, MP3 plays, CD Players, downloads, My Space, and now You Tube the “buzz” comes from everywhere and the younger the audience you are trying to attract the more carefully you must do the research. For commercial radio I would only use it if I were booking an artist that they have interest in and will work with you on not only your buying spots, but them co-promoting the event with ticket give-away and promo spots. I like cable television because it narrows down the target market you are going after. However, remember just because it is MTV or VH1 does not mean it will deliver because there is a lot of clutter in the mix with age and viewer interests. With a comedy club you have a better chance of success by buying the local inset on
Comedy Central that is going to give you your target market (people interested in comedy) and if you find the programs that feature the comic you are promoting - - home run!!! I also like CNN and Fox News. Why you ask? Because the after midnight buys are so cheap and if you get “lucky” and a big news item breaks, you are right in the middle of the mix for very little investment. I use the example of the Saturday night Princesses Diana was in the car crash in Paris. Ask 100 people where they were and what they tuned into for the news of whether she was alive or deceased and I would guarantee at least 80% will say CNN - - you would be lucky to find 20% with the answer of CBS, NBC or ABC. I can only speak for Baltimore, but when I last checked it was $25.00 for a :30 second spot on CNN after 12Midnight.
I am going to e-mail this to Kambri Crews and I will let you know in a future Blog if I receive a response and what it was.
My answer to the question “Is advertising dead?” Yes, in the 1980s and 1990s format, but you still need it to flourish and profit, but it is a different game now and do not buy into the old “sales pitch!”
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