THE REPORT A Monthly Newsletter Published By Harmelin Media April 2009 Volume 20 No. 4 Celebrity Harmelin’s by Kristen Warner State of the Media We’ve seen Tiger Woods master the game of golf using Harmelin Media presented its first ever Titleist equipment, wearing Nike shoes, drinking Gatorade, State of the Media address in a pilot pro- shaving with Gillette razors and driving a Buick. Tiger has gram attended by a representative group proven to be a safe bet when it comes to endorsing a of clients, partners and media profes- product. He’s maintained a clean reputation, he’s a house- sionals. hold name and we can believe that he really does use all of While other media agencies may only the products that he endorses. focus on traditional media, or new me- Celebrities and advertising have gone hand-in–hand for dia, we continue our emphasis on inte- many years. In 1979 Coca-Cola grated media. Discussions went beyond used the Pittsburgh Steelers’ de- new media to incorporate the outlook for fensive tackle “Mean” Joe Greene the future of traditional media outlets in in a commercial that is arguably addition to discussing innovative oppor- one of the most memorable of all tunities available across the media land- time. The spot got so much rec- scape. ognition that Coca-Cola decided The following are select highlights from to do a remake of the same ad the presentation. for the 2009 Super Bowl featuring current Pittsburgh Steelers’ safety, Troy Polamalu. In 1980 PRINT Calvin Klein used actress and model Brooke Shields to be What’s Happening: Some print publi- one of the first “faces” of his jeans collection and over 25 cations are slowly shifting to an all-digital years later people are still talking about it. All three of format, delivered via email, websites, these commercials have generated a significant amount of mobile phones and Kindle-like devices. buzz and therefore ulti- This is in addition to the vast iPhone and mately accomplished the iPod universe. E-papers have already companies’ goals by expand- begun to make their debut. ing the product name and Opportunities for Advertisers: Cus- generating more sales. tomization holds the secret to success But what happens when a both for the industry and for the adver- celebrity endorsement goes tisers. As content is being drilled down bad? Unfortunately, we have through personalization, tailored adver- seen it happen in the past tising messages will follow suit. couple of months, beginning with Olympic gold medalist RADIO Michael Phelps. After breaking numerous world records at What’s Happening: Traditional radio the 2008 Olympics, many companies wanted Mr. Phelps continues to reach the largest audience standing beside their product, including Speedo, Omega, and has the highest listener penetration; Visa and Kellogg’s. After signing multimillion dollar con- however, there are new avenues that are tracts with each of these companies, Phelps engaged in helping radio grow and it is not through some alleged illegal activities shown around the world on satellite radio as originally projected. YouTube and found himself in trouble, not only affecting The fastest growth areas have been wire- his own reputation but also potentially that of the brands less and internet radio, with some he was endorsing. While none of the companies that work growth in mobile phone streaming. Wire- with Michael Phelps condone the illegal actions, at this less penetration has increased and inter- point it appears as though Kellogg’s is the only company net radio is growing at a rapid rate. not scheduled to renew its contract with the athlete, stat- (Continued on page 3) (Continued on page 4) April 2009 THE o REPORT Page 2 Support Your Outdoor by Christina Esposito Local Newspaper by Gina Yeakel The economy may be down, but out-of- home has been experiencing a bit of a Philadelphia, do we really want to be a city that cannot sup- boom recently. Outdoor vendors were re- port a daily newspaper? Being known nationally for booing porting a flat first nine months in 2008 Santa and using cheesesteak orders as a litmus test for presi- followed by a 6% decrease late in the dential candidates is bad enough. We have also earned these year. However, OOH is viewed as a good distinctions: America’s value and as providing one of the better Fattest City in 2005 from advertising values. With consumers al- Men’s Fitness, and Amer- ways on the go, outdoor is reliable and ica’s Ugliest City by one of the best ways to reach consumers Travel + Leisure Magazine in 2007. That is rough. Philadel- with higher reach and frequency. It can phia newspaper readers tend to be more educated and afflu- reach consumers that are increasingly ent than average Americans. Perhaps we should shoot for more mobile. America’s most informed city. Throughout the past year, there have Competing local media are circling what they see as an in- been advances, issues, and changes in the jured animal, calling with helpful suggestions for reallocating OOH industry. Digital boards have ad- those newspaper advertising budgets. This is the wrong ap- vanced since they were introduced in proach; we should support the paper as an industry and as a 1996. Lamar, CBS, and Clear Channel es- city. So much of what we hear on morning radio shows is pecially have been increasing their digital read to you directly from the newspaper. A lot of what we see units where legislation allows. The Ameri- on local television, or in local magazines, started with a local can Advertising Federation’s position on newspaper reporter’s work. All of this content is used free of digitals is they that serve the public good charge by the other media. Even if we don’t read a newspa- for real time announcements such as traf- per, we enjoy it’s content. fic, missing children alerts, etc. But in Recent stories uncovered by the Philadelphia Inquirer or California, there have been concerns with Daily News would not have seen the light of day if it were not the advancement of more digital units. for investigative reporting — Vince Fumo, DHS mishandling The Los Angeles city council put a 90-day cases, and the Post Office mail dumping scandal, to name a delay on building more units as they are few. Reporters will serve us as watchdogs monitoring the allo- trying to give the communities more con- cation and use of the incoming stimulus money. These stories trol over where they put billboards in their need to be told by local voices. neighborhoods. OAAA countered the Princeton University studied the effects of the Cincinnati Post moves by commissioning a study from Ar- closure on the towns it served. In the 2007 local elections, bitron showing that public sentiment to- voter turnout dropped, the number of new candidates fell and wards digital boards is favorable. The the number incumbents re-elected increased. study found that 67% of LA County resi- Some say that bloggers can replace local journalists. Again, dents didn’t mind the digital billboards much of the bloggers’ content comes from the footwork of the while 73% of the residents believe the local newspaper reporter. The blogger is simply not held to signs provide important community ser- the same vetting standards as a newspaper reporter; bloggers (Continued on page 3) have no editors to confirm sources and accuracy. It is hard to imagine a blogger going to jail to protect a source. Online classified/job search services dealt a serious blow to THE the newspaper industry, but the internet may get the newspa- pers back in the black. The industry needs to come up with a model that makes online advertising profitable for the paper REPORT and affordable for advertisers. Newspapers are considering Published by Harmelin Media charging an easy-to-use micropayment system for content. The industry also needs to implement an integrated circulation 525 Righters Ferry Road, Bala Cynwyd, PA 19004 sales model that combines hard copy and online circulation in (610) 668-7900 fax (610) 668-9257 a way that is agreeable to advertisers. President: Mary Meder Editor: Terry Maher Philadelphians may not be known for fitness or beauty, but let’s hope we can get together to support our local papers. Visit our website at www.harmelin.com April 2009 THE o REPORT Page 3 Outdoor (Continued from page 2) (Continued from page 1) Celebrity vices (i.e. Amber Alerts). As more digital ing that Michael Phelps is “not consistent with the image signs are built, OOH companies are increas- of Kellogg’s.” ing revenue from a single sign by several Only a short time after the multiples. Phelps incident, it was reported Local zoning has been proving to be an that Wrigley’s would drop R&B issue for outdoor vendors and the clients singer Chris Brown and his they are trying to service. Zoning places branded song “Forever” from the restrictions or prohibits outdoor advertising Doublemint Gum commercial due in certain areas. Some areas can restrict to allegations that he attacked outdoor advertising for specific products and injured his girlfriend Rihanna (i.e. alcohol billboards within a certain ra- in an altercation. It doesn’t al- dius of schools). When areas are zoned, it ways have to be a celebrity mis- can cause complications in finding the right behaving to cause a company to outdoor locations for a specific client. Re- break contracts. Sometimes, all cently our Sheetz client was experiencing it takes is a simple slip of the issues with the outdoor zoning regulations tongue. A few years ago, Jessica in Raleigh, NC. This is a strictly zoned mar- Simpson was reportedly sued for ket, so it has been a challenge to find $100 million for not properly boards that catch the traffic going to and promoting low-priced Princy from Sheetz locations. In markets where jeans by Jessica Simpson. In an interview the singer was there are strict zoning laws, outdoor buyers asked what her favorite line of denim was, and she replied must strategize more in making sure the with a high-end company that outdoor locations make sense for their cli- was not the one she was con- ent. tracted to endorse. Incidents A more recent change in outdoor was the and P.R. like this make us won- transition from standard 30-sheet posters der, is it worth it for companies to the eco-posters. Eco-posters are made to take such risks to put a fa- with polyethylene, a recyclable plastic. mous face with their product? These are also referred Some companies feel that it is to as SSP’s and flexes worth the risk and others dis- from OOH vendors. The agree, which may forever be the transition started in case on such a subjective topic. 4Q08 with a goal of However, it appears as though celebrity endorsements are March 2009 for all ven- becoming less and less common, as they are showing de- dors to have their struc- clines in recent years. According to Greenlight’s Grammy tures converted to fit the AdGauge data, during the broadcast of the Grammys, eco-posters. As of today, there are still a commercials featuring celebrities slid from 21% in 2007 handful of smaller OOH vendors that do not to 13% in 2008 and only 7% in 2009. This could be the have their structures eco-ready. Previ- result of a number of issues. One reason could be that ously, the 30-sheets added 150 million circulation of celebrity magazines is declining. Another pounds of waste to landfills each year, so possibility is the over-exposure of certain “attention- they switched to be eco-friendly. Since grabbing” celebrities. Additionally, consumers may just eco-posters are in essence a “cheap vinyl,” generally be more skeptical now of these types of en- they can last longer than just the usual four dorsements after years of coverage. Lastly, in this type of week time period, they have a less chance economy, companies may not be willing to take the gam- of wear and tear, and the client doesn’t ble that they used to by enlisting a well-known actor or need to produce as many extras. There are athlete to be the face of their product. It’s risky, it’s a few problems with the eco-posters, pricey — and even more so if it doesn’t work out. though. Each company has a different fit While some reports show that celebrity endorsements for the flex (i.e. Clear Channel has one size are declining, it would be surprising if celebrities stopped while Lamar has another). This causes endorsing products completely. There will always be a more work on the production end to make piece of the public that feels they can be more like their sure they are adhering to each vendor’s favorite celebrity if they use the same make-up or wear specs. The production costs can also in- the same sneakers, and companies know that. Sometimes crease. They may not have to provide as it just might be worth the risk. Don’t they say that any many extras, but they have to pay more to press is good press? get them produced. April 2009 THE o REPORT Page 4 State of the Media (Continued from page 1) Each opportunity is subjected to Harmelin’s Opportunities for Advertisers: Internet radio, C.A.S.E. analysis and must be creative, affordable, similar to online, provides detailed metrics, which is a strategic and executable. great advantage for advertisers. Internet radio also provides detailed impression data that is guaranteed, INTERACTIVE MEDIA tracking capabilities, geo-targeting and very specific What’s Happening: Where once interactive media day and time targeting. mimicked traditional media (with banner ads resem- bling print and online video duplicating television), TELEVISION Web 2.0 has revolutionized viewer habits with What’s Happening: “Appointment TV” has disap- added customization and user-driven content and peared as consumers have greater action. With the advance of social media, interac- control over how and where they tion is now two-way – where advertising was once watch television, thanks to DVRs and displayed, now it’s a conversation. Eventually, Web TiVo. In the past year alone, time- 3.0 will bring about media convergence between shifted viewing has grown 37%. Addi- your computer, mobile phone, outdoor messages tionally, consumers can now watch and other communications vehicles. their favorite shows on the internet or Opportunities for Advertisers: Customization is even on their mobile phones. Inter- the key. A mind shift is underway to measure inter- estingly, for every hour of online view- active advertising by interaction rather than impres- ing, consumers are still spending 57 sions. The potential customer needs to be given hours with their TV sets. more control over the message and, if given so, will Opportunities for Advertisers: Content is now become more engaged. Subtlety is important to more important than ever. Video On Demand pro- success. vides a platform like online for advertisers to show- For more information on the State of the Media case their message longer, especially through spon- presentation, please contact your Harmelin account sored content. There is now greater precision in deliv- executive. ering your messages. Most compelling is the ability to provide advertisers with a way to measure their investment. Newer interactive features will allow in- Around the Harmelin teraction with the viewer, the ability to collect valu- Water Cooler able data providing better accountability, and meas- urable results. A Completely Unscientific Survey of Harmelin Media Employees… OUT OF HOME This Month’s Questions: What’s Happening: Outdoor companies are making it their goal to convert every piece of signage they Name the first celebrity product have into a digital format. New options continue to endorsement that pops into your mind. surface, making outdoor advertising the second fast- est growing medium in the country (behind online). Opportunities for Advertisers: Digital formats Name the celebrity and the product. have a higher retention score and reduces, if not eliminates, production costs. The format also allows for quick changes to reflect real-time situations such Tiger Woods as scores, prices, weather, or time-of-day specials. Nike 22% LIFESTYLE MEDIA Alec Baldwin What’s Happening: Lifestyle marketing is all Hulu 18% around you, from the coffee cup you get at your local convenience store, to the ad inside your lunchtime Mean Joe Green check billfold, to the elevator in your office, your con- Coca-Cola 15% cessions at the movies, and everything in between. The market is crowded and, if not handled properly, George Foreman can be intrusive. Foreman Grill 12% Opportunities for Advertisers: The creative still needs to stand out from the crowd, but the place- William Shatner ments must be more strategic — enough to disrupt Priceline.com 10% the flow of your day, if only for an instant, by provid- ing something unexpected, relevant and memorable.