ACTON Marketing's Bright Ideas Marketing Newsletter

Issue #3, April 2008

“Employ your time in improving yourself by other men’s writings, so that you shall gain easily
what others have labored hard for.” — Socrates

 

Marketing Insights

Advertising clutter has reached a crisis point in America.

"The average American sees three thousand ads a day."

— Barry Schwartz, The Paradox of Choice

As a result, billions of dollars are being wasted each year on TV and radio spots and print ads that are ignored by overwhelmed consumers...the same consumers you are trying to reach with your marketing dollars.

Fortunately, you have some options for spending your scarce marketing dollars.

One of them is buzzmarketing.

Now you can learn the secrets of buzzmarketing by reading Mark Hughes' tell-all book, Buzzmarketing: Getting People to Talk About Your Stuff.

Mark Hughes is the CEO of Buzzmarketing and the keynote speaker at next week's ACTON Marketing symposium in Charleston, South Carolina.

In his book, Hughes shares his Six Secrets that are the critical building blocks to creating killer buzz.

The Six Secrets are:

BUZZ BASICS

The First Secret – Push the Six Buttons of Buzz

The Second Secret – Capture Media

The Third Secret – Advertise for Attention

BUZZ LEADERSHIP

The Fourth Secret – Climb Buzz Everest

The Fifth Secret – Discover Creativity

The Sixth Secret – Police Your Product

This month we present Hughes' insights on the cluttered media market from Chapter Ten, "The Third Secret – Advertise for Attention."

Hughes writes, "Once upon a time, there were three little networks.

"TV clickers didn't exist, and door-to-door salesmen were actually given the courtesy of the time of day. From a marketer's perspective, things were great. People paid attention to you, and you had few ads competing for attention.

"The Way It Is

"That was the way it was. Today, as you very well know, TV remote controls are a must. Viewers zap more than 63 percent of TV ads. The average cable watcher can choose from more than a hundred channels. Some 25 percent of all TV time is ad related. Most TV shows get one-tenth the ratings that they did thirty years ago. Marketers are launching new products and extensions of their products left and right (as just one example, over 166,000 book titles will be launched this year). People are sleeping less, working more, and feeling inundated with the more than a thousand ad messages each of us is bombarded with every day.

"Hello, marketers – are you listening? The truth is, your ads aren't having much impact.

"Proof? According to a study by the American Academy of Advertising, when a TV commercial comes on, 92 percent of us change the channel, mute the commercial, ignore the commercial, or divert our attention to something else. Don't forget TiVo, either; 71 percent of people interested in TiVo said the feature they liked the most was the ability to skip the commercials.

"One of the most comprehensive advertising studies of the magazine sections in Sunday newspapers performed in the 1970s showed what you might expect: One's ability to recall advertising relates to the thickness of the magazine. The more advertising in a given medium, the less effective each advertisement.

"More clutter, less impact.

"Bad news for those in the United States, because it's the most cluttered ad market in the world. America spends more on advertising than Mexico's entire gross domestic product (something over $230 billion each year).

Inside this Issue

The Way It Is

For the Math Obsessed

 

Barry Schwartz's book, The Paradox
of Choice


Professor Schwartz's book is available new in paperback for $11.16 at amazon.com.

 
 

"How do you measure clutter? On a macro level, it's easy. In the graph to the right, you'll see what I call the Clutter Curve – an index of total ad spend as a ratio to total TV sets. It shows the U.S. ad clutter, with a 283 Index. China ranks second, Japan third, Mexico fourth.

"The less ad clutter in a country, the more likely an advertiser's message will break through.

"An average night of prime-time TV presents to the American viewer approximately 128 commercials and promotional messages. One TV commercial would command 1/128 share of mind (presuming the viewer was paying full attention to all the commercials). Take that 1/128 of mind share and multiply it by the 8 percent of us paying full attention to TV advertising – and what you get is not a pretty picture.

"For the Math Obsessed

"Clutter-free media is not your conventional media. But the economics are simple: Your one TV ad competing with 128 other ads in a night provides you a statistical chance of breaking through the clutter of 1 in 128, or 0.8 percent. Now index this 0.8 percent against the 8 percent of us who give TV ads our full attention, and you've reached 6/100 of the people Nielsen tells you you're reaching. Nielsen provides audience statistics for programming, not for commercials.

"But Nielsen says you're reaching 5 million people with that one ad, and you pay the network $10 to reach every 1,000 people (the ad cost you $50,000). Multiply 6/100 by 5 million, and divide by the $50,000 you paid for that commercial. You effectively reached 3,125 people at a cost of $16 per person.

"Hell, at $16 per person, it would be cheaper for you to pay people $10 to stop what they're doing and devote their full attention to watching your ad for thirty seconds. Ten bucks per viewing – much cheaper! Do you understand the difference between impressions and connections now? Pay attention to the economics.

"Media expert Ken Sacharin said it best: 'Our "rules" [of advertising] are rooted in another time – a time not too long ago when it was far safer to assume that we already had people's attention and that all we had to do was inform, persuade, educate, and sell.'

"The smart folks are catching on. If you assume you have people's attention, you are dead wrong. Rule number 1: Get their freakin' attention. Don't follow the herd, because you won't get heard.

"Merrill Lynch's media and advertising industry analyst Lauren Rich Fine has pointed out the challenge. 'Advertisers have many new choices as well as a yen for more measurement of results,' she has said.

"Remember the question about a tree falling in the forest and nobody hearing it? If an advertisement is placed and nobody notices it, was the brand ever advertised?

"So what should we do? Here's a place to begin:"

The remainder of Chapter Ten is covered under the following subheads:

Clutter Index

Adding to the Media Clutter


Adding to the media clutter is a credit union ad appearing on the back of a Sacramento, CA rapid transit bus.

 
 

"Maxim 1: Balance Your Media Diet to Maximize Attention

"Maxim 2: Use Clutter-Free Media to Capture Attention

"Maxim 3: Take Off the Shine

"Maxim 4: Turn Your Traditional Media Buys into Buzz to Capture Attention."

If you haven't already acquired Hughes' book, Buzzmarketing: Getting People to Talk About Your Stuff, you can buy it new, in hardcover for $16.29 at amazon.com. Used copies are also available.

If you're currently spending some or all of your marketing dollars on mass media advertising, you'll definitely want to read Hughes' book.

Mark Hughes' book, Buzzmarketing

Buzzmarketing Book
 
 
 
 

Past Issues of the Newsletter

All past issues of the ACTON Marketing, LLC newsletter are available online in the archive.

Comments?

We’d love to hear from you! Please send any questions or comments about this newsletter to newsletter@actonfs.com.