How far is too far?

 

It’s a random Tuesday and you are scrolling through your Facebook feed just browsing through friend’s pictures, posts, and status updates and then all of a sudden, those black suede shoes you were looking at the day before, pop up. Wait a minute, what the heck? I know we’ve all experienced this, right? This is not something new to any social media user out there, it’s been happening for a while now. These ads are populated as a result of ‘cookies’ and although users are skeptical about the way Facebook taps into targeting ads, they’re analytics and data about users are the driving force behind these ads.

But we haven’t seen the end of this method. Cue Augmented reality and smart glasses. We know these have been in the works as well but the new craze geared towards marketing is something to take a closer look at. According to a recent Forbes article by Joe Surprenant (2018), these will allow for further marketing strategies. The ability to increase brand awareness by tapping into the consumer’s point of view and instantly generate information about the product (Suprenant, 2018). Aside from this feature tracking a consumer during point of decision will be key, the ability to see the individual reaching for a particular brand of product can allow for brands and competitors to instantly influence the consumers during their buying decisions (Suprenant, 2018).

Considering the use of cookies and analytics that are already tapping into our buying behavior, are we doomed as consumers as technology progresses? Do you want to constantly be reminded of what you searched for, thought about, or passed by?

 

References

Scheiber, N. (2017, September 28). Facebook’s Ad-Targeting Problem, Captured in a Literal Shade of Gray. Retrieved from https://www.nytimes.com/2017/09/28/technology/facebook-ads.html

Surprenant, J. (2018, February 06). The Future of Marketing Will Be Heads-Up and Hands-Free. Retrieved from https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2018/02/06/the-future-of-marketing-will-be-heads-up-and-hands-free/#c956d70501e3

 

 

 

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Fake News is Honestly a Problem!

Part of growing up is shedding naïve and overly idealistic concepts or beliefs. For many people, this might include things like the government always has our best interest at heart or that doctors wouldn’t prescribe harmful or addictive drugs to their patients because of financial bribes and pressure from the pharmaceutical industry. The news accurately covering the day’s events with honesty, integrity and truthfulness was, for a long time, taken for granted as fact. However, this has sadly continued to erode for a long time and when there is big money associated with media corporations, the narrative is often completely changed to fit the agenda associated with the political party that company is aligned with.

During the 2016 Presidential election night coverage, it was almost comical to switch back and forth between CNN and Fox News to hear the different and completely biased coverage each network had for their candidate and the unfolding results. Events that would seem to only have one truth, are quickly spun to reflect the ideologies and propaganda of one party or another. While not a part of the American English lexicon prior to Donald Trump winning the presidency, “fake news” was chosen as word of the year for 2017 by Collins Dictionary just a year later.

To add to the uncertainty of what we hear in modern media, well known and highly trusted broadcasters, such as Brian Williams, have been caught in outright lies about stories they’ve told. As if it wasn’t bad enough that the traditional institution of news media has devolved into such a state, we now have countless independent news sources promoting fake stories and false truths. Social media often provides a launching pad for far reaching dissemination at light speed. News, whether real or not, gets spread over the internet to all corners of the world. This growing problem with a lack of reliable information has resulted in a wide range of issues from the relatively benign false reporting of celebrity deaths to the more serious instances of accusations of treason at the highest levels of government. Although mainly a favorite accusation of President Trump, this is a bipartisan issue that has reached both parties and has disrupted the smooth operation of government and the productive discourse of the American people.

There is a growing sentiment that social media, mainly Facebook, has to do more in combating Fake News online. There are a number of tips for consumers of news media to avoid becoming victims of fake news stories. Examples include considering the source and its mission, read beyond the headlines, do a check on the author, investigate supporting sources, and checking the date for currency. Accurate, non-biased reporting of actual events is imperative to a successful and thriving democracy and we need to figure out a way to mitigate or altogether eliminate the problem of fake news.

Phil

References

https://www.npr.org/sections/thetwo-way/2018/01/22/579732762/facebook-says-social-media-can-be-negative-for-democracy
http://www.newsweek.com/fake-news-word-year-collins-dictionary-699740

Social media must curb fake news

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Will the Influencer Market Collapse?

According to an article published by Forbes Agency Council (2017), they predicted that the influencer market is going to collapse in 2018.  In recent years, brands spent millions of dollars to promote their products with social media influencers on various platforms (e.g, YouTube, Vine, Instagram, Facebook, Twitter). But after their large alternative marketing spends, are they seeing a big enough ROI to continue? Influencers are considered middle-tier influencers in the sales and strategy funnel that drive consumer awareness, but is that enough for brands to continue to spend money in this segment?

Here is my position:

I do think companies have to continue to integrate the influencer market in their strategic business plans because the influencer market is not going away. The caveat about being an influencer is authenticity. The moment their followers feel like they are being a sellout, their reputation can instantly become tarnished or worst of all – collapse. The influencer market has become increasingly saturated as YouTube stars like Michelle Phan or Jenna Marble had their rise to fame.  Michelle Phan is a beauty vlogger and is considered a top YouTube influencer as she has 9 million subscribers and more than 681 million views.  Jenna Marbles is a top YouTube influencer as her videos have been viewed more than two billion times and she has over 17 million followers. Influencers like Michelle and Jenna have a platform to ignite conversations, persuade consumers, and ultimately influence consumers to buy the product/service.  In other words, they have a plethora of social capital that brands should not overlook.

For someone who wants their start in the influencer market, they need to find their niche. Don’t do something that someone else has already done. Based on my personal experiences with colleagues, family, and friends; so many people who have a camera capable of recording in 1080p and a set of make-up brushes think they are going to be a YouTube star if they upload a video of them putting on their make-up.  Find a niche category like a channel dedicated to self-help or DIY and the ideas for the videos should be bold and different!

What are your thoughts? Do you think the influencer market will collapse? If so, what do you think the future will look like for the influencer market? Your comments are welcomed and encouraged!

Best,

Jason

 

Reference

Forbes Agency Council. (2017). How digital marketing will change in 2018: 15 top trends. Retrieved from

https://www.forbes.com/sites/forbesagencycouncil/2017/12/18/howdigital-

marketing-will-change-in-2018-15-top-trends/#4c1e84cb2d9a

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High New Horizons: Marijuana Marketing

Marketing is a fascinating field of study to me, as I am endlessly intrigued by the ingenuity and creativity that marketers display. I find myself critically and analytically viewing ads with eye to determining how the marketers went about identifying their products’ target markets, establishing brand recognition, devising discriminators, eliciting customer loyalty, and accomplishing myriad other feats to execute a successful marketing campaign. In particular, with today’s explosion in new product development, general rise in consumer acquisitiveness, and rapid obsolescence of product iterations, I find marketing an engaging and challenging field of endeavor.

Most of the hottest products skyrocketing to consumer attention at present include mobile phones and the endless variety of associated applications, gaming and entertainment devices, and other technology-driven offerings. A rather different new product, however, now coming to the forefront that fascinates me from a marketing perspective is…. marijuana. Legalized, recreational marijuana. For decades, clandestine use of illegal marijuana was ubiquitous, if often intentionally ignored, like the proverbial 800-pound-gorilla in the corner. Thus, though a product heavily in demand among certain segments of the population, marijuana was obviously taboo and could not be publicized or commercially marketed. Even the devices produced to aid in its consumption, though themselves composed of wholly legal materials, were highly controversial and subject to legal restrictions in many locales.

Today, however, marijuana is gradually segueing into the mainstream. Scorned and condemned by some but gleefully, giddily embraced by others, marijuana is still controversial but is now becoming a legitimate subject for marketing campaigns. Furthermore, as is true all hot, new, consumer products, marketers are beginning to establish themselves as viable representatives for this emerging industry, largely in the states where marijuana is legal and especially Colorado, one of the groundbreakers in legalization of recreational marijuana.

What is somewhat surprising about marijuana marketing consultants is that they are unexpectedly serious, sedate, and reserved. For example, Cohnnabis (https://cohnnabis.com/# ), rather than reflect a frivolous or dreamy façade as one might expect given the company’s focus, presents an almost austere image, emphasizing its respectability and successful history in marketing. Similarly, 4blooms Cannabis Business Services (https://www.4blooms.guru/blog/) site is quite heavily laden with statistics, financial projections, and other hard-core business features. The highly respected Atlantic Monthly magazine even published a marketing analysis by Vauhini Vara (2016) about the marijuana industry, contemplating such typical dilemmas as branding discrimination difficulty among producers and the challenge of winning over new, uninitiated consumers.

One is almost led to believe that the legalization of marijuana has turned it into merely another contender in the commercial rat race; yet some playfulness remains, especially regarding its continued illegality and cognoscente aura. The Washington Post, for example, published a chuckle-worthy article by Maura Judkis (2017), on the stealthy marketing surrounding what is known among marijuana aficionados as an unofficial holiday of sorts, April 20, fondly referred to as simply 420. April 20 is the legendarily date of the first marijuana smoke-in held in 1970 and since then, every year, 420 is a day of irreverent celebration. Food purveyors hoping to attract susceptible customers on 420 tantalize audiences with photos of gargantuan sundaes and overflowing burritos, making veiled allusions to the special date

While considered a legitimate new business territory by many, the fact that marijuana has perception-altering properties, is subject to abuse, and may exacerbate substance dependency repulses others. Nonetheless, as a legal product in search of all the benefits befitting an up and coming industry, cannabis may open up new avenues to marketing professionals looking for an unexploited niche.

 

 

References:

Judkis, M. (2017). Brands want to capitalize on 4/20 munchies. Pot advocates say it’s time to grow up. The Washington Post. April 18, 2017. Available at https://www.washingtonpost.com/amphtml/news/food/wp/2017/04/18/brands-want-to-capitalize-on-420-munchies-pot-advocates-say-its-time-to-grow-up/.

Vara, V. (2016). The art of marketing marijuana. The Atlantic Monthly, April 2016. Available at https://www.theatlantic.com/magazine/archive/2016/04/the-art-of-marketing-marijuana/471507/.

 

 

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Advertising For Infinity and Beyond: Musk Also Takes Over Marketing World

From his other-worldly aspirations to colonize Mars to plans for Jetson-like air travel to jumpstarting a revolution in the auto industry, it does not seem anything is impossible for Elon Musk.  It’s safe to say the Tesla founder and head of SpaceX is the closest thing we’ll see to a real-life Tony Stark.  While discovering ways to sustain life on the Red Planet or building state-of-the-art electric cars are remarkable accomplishments, his greatest feat may have happened earlier this week when he produced a car commercial that was literally out of this world.

This past Tuesday, SpaceX launched its Falcon Heavy rocket into space and attached to it was a 2008 Tesla Roadster (Matousek, 2018).  Musk’s thought-process behind fixing an automobile to a rocket ship was to help people view exploration through a different prism and realize how technological advancements are taking space travel to the next level (Matousek, 2018).  Rather than attaching a standard concrete block to his ship, Musk (2018) wanted to use “something that made us feel.”  It turns out the brilliant inventor executed that to a tee as his decision to use the Roadster was widely applauded as a genius marketing move and an ad campaign other auto companies could only dream of launching (Matousek, 2018).  Aside from the stunning visual of a car in space, the other spectacular aspect of the entire SpaceX/Tesla launch is that Tesla did not stray from its marketing strategy and spend anything for advertising (Matousek, 2018).  Unlike most of its competitors which shell out millions of dollars for ads, Tesla’s sales rely solely on a model of word of mouth and media coverage (Schultz, 2017).  While this complete disregard for ad sales bucks industry attitudes toward marketing, it has not hurt the company’s portfolio one bit—as of August 2017, more than 500,000 deposits have been placed on Tesla’s Model 3 automobile (Schultz, 2017).

I find the entire Tesla case study fascinating because the company flips the entire model of advertising/marketing success on its ear.  Tesla shows us that not only is it possible to succeed without spending millions of dollars on ads, but you also do not need a comprehensive marketing strategy.  Instead, Tesla’s success teaches us the power of a strong brand and thinking back to our readings, the company itself exudes so many of the stickiness principles (Heath & Heath, 2007).  In terms of credibility, emotions, concreteness, and unexpectedness, Tesla’s products fulfill all of those criteria because many of us did not expect to see an automobile company make an impact with its state-of-the-art technology at such a rapid rate.  Furthermore, while this may sound counterintuitive, Musk’s concept behind the automobiles is simple—build an amazing car that does not use gas.

Alluding back to what Brandon Rochon said in our recent live session, the geniuses always find a way to package a complex concept into simple terms and that’s exactly what Musk did in his SpaceX/Tesla launch—he didn’t have to explain all the bells and whistles, just show the car.  Another important factor to consider in Tesla’s success is Musk’s ability to be authentic.  Unlike many other billionaires and CEOs who either have no online presence or depend on a media relations team to protect their image, Musk is not afraid to be real and sometimes poke a little fun at himself (Matousek, 2018).  As Coughter (2012) states that kind authenticity goes a long way in endearing followers to a brand because people feel like they can trust someone who is being genuine.  Although most of us will probably never relate to Musk’s technological genius or bank account, he at least makes us feel like we do and many times that is just as important.

With all that said, what are some other popular brands you know of that do not spend any money on advertising?

References

Coughter, P.  (2012).  The art of the pitch: Persuasion and presentation skills that win business [Kindle version].  Retrieved from Amazon.com

Heath, C. & Heath, D.  (2007).  Made to stick: Why some ideas survive and others die [Kindle version].  Retrieved from Amazon.com

Matousek, M.  (2018, February 7).  Tesla created the world’s best car commercial without spending a dime on advertising.  Business Insider.  Retrieved from http://www.businessinsider.com/tesla-made-the-worlds-best-car-commercial-without-spending-money-2018-2

Musk, Elon [@ElonMusk].  (2017, December 22).  A red car for the red planet.  Retrieved from https://www.instagram.com/p/BdA94kVgQhU/?hl=en&taken-by=elonmusk

Schultz, E.J.  (2017, August 3).  Tesla still doesn’t need paid advertising to make sales.  Ad Age.  Retrieved from http://adage.com/article/cmo-strategy/tesla-paid-advertising/310008/

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Responsibly Fit? Fitspo Influencers and Brand Liability

A recent article in Forbes titled 5 Steps To Take Before Starting An Influencer Marketing Campaign On Social Media highlights the benefits as well as cautions and advises brands on utilizing influencer marketing it their campaigns. “Influencer marketing can give your content a huge boost, and you can’t afford to ignore it,” says Andrey Slivka of Forbes. The article summarizes advice from Forbes’ social media editor Natasha Lewka with tips for including influencers as finding influencers with the greatest leverage on whichever platform (or platforms) your targeted audience is found. Then you target the right influencers, which don’t have to be huge celebrities to be successful, but can be “micro-influencers” defined by the article as someone with between 10,000 and 100,000 followers.

There are innumerable “micro-influencers” as well as many larger-reached influencers within the fitness industry. These fitspo models do everything from preach body positivity, share weight-loss and weightlifting transformations and more. Additionally, they align with specific workout programs and workout related brands, from active-wear companies to supplement companies and crossover brands. This industry has really seemed to capitalize on this area of marketing. Take U.K. based company Gym Shark for instance. They have an international roster of Gym Shark athletes who rep their clothing, attend conference meet ups and events, pop-up shops and other publicity efforts that have helped not only fuel the brand, but in turn, fuel the celebrity status of the influencers. It seems to be a win-win situation. As a result, many followers look to these influencers, most of which are not certified personal trainers, as being experts on fitness. And while there’s no denying they have mastered their own fitness and no doubt learned a lot about exercise and nutrition, they have to be careful to stipulate they are not experts with the information of certified personal trainers and nutritionists. And though many do become certified and make money offering their own personal training, many simply make their own work out guides and even products and sell them to followers. Sometimes there is flack for content these influencers create when talking about correct form for exercise or when they don’t talk about it. There is risk for someone to follow what they say to do and get hurt. Should these influencers be held more accountable for their health-related advice and influence? And what does that mean for the responsibility of the brands like Gym Shark to ensure the influencers they collaborate with are not ill-prepared to have followers immolate their fitness routines? Beyond that, what sort of protections should be in place for these brands AND these influencers. It seems only a matter of time before lawsuits increase.

References:

Slivka, A. (2018). 5 Steps to take before starting an influencer marketing campaign on     social media. Forbes. Retrieved from        https://www.forbes.com/sites/forbescontentmarketing/2018/02/08/5-steps-to-take-before-   starting-an-influencer-marketing-campaign-on-social-media/2/#481e04633fac

Sponsorship. Gymshark. http://support.gymshark.com/hc/en-us/articles/207495946-Sponsorship

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The Growing Multicultural Market

Yuriy Boykiv, co-founder and CEO of Gravity Media writes, “Multicultural marketing is no longer an option, but a necessity”. With the consumer market continuing to grow in diversity, it becomes more and more compelling for brands to establish authentic connections with ethnic groups. Those who recognize and respond to this growing market are included among the best brands in the world.

Although many critics say that this year’s Super Bowl commercials did not convey as much political statements and socially-conscious themes compared to previous years, there were a few brands that spoke about diversity. The Kraft 30-second ad was about diversity in family, showing kids with mixed heritage, gay couples and families with different ethnicities. T-Mobile went with a 60-second ad of babies of all different races with the narrator saying, “Some people may see your differences and be threatened by them”. The Toyota commercial featured four leaders of different religions going to the Super Bowl together in one car. Coca-Cola featured a 60-seconder commercial of people, young and old, of different backgrounds, cultural and otherwise, of varying likes and dislikes but all enjoy Coca Cola. While this year’s ad is less political in tone and treatment, it nonetheless effectively delivered the message of equality among people of various backgrounds – “…there’s a Coke for we and us and there’s a Coke for you”.

 

Championing diversity is not new for Coca-Cola. The “It’s Beautiful” commercial that aired in both 2014 and 2017 Super Bowl shows people of different ethnicities singing “America the Beautiful” in various languages. While this strong diversity message is designed to portray the multicultural make-up of the US population, it received widespread criticisms. The hashtag #BoycottCoke trended on Twitter for a while.

Regardless of how we feel toward the issue of diversity, numbers surrounding the growing multicultural market don’t lie. Consider the following statistics from a Nielsen study:

  • Thirty-eight percent of the U.S. population or 120 million people are African-American, Asian-American, and Hispanic consumers. These multicultural groups are projected to increase by 2.3 million each year.
  • The multicultural buying power has increased from $661 billion in 1990 to $3.4 trillion in 2014 – an exponential growth compared to the total U.S. buying power.
  • Multicultural groups comprise over 50 percent of the population in Hawaii, District of Columbia, California, New Mexico and Texas. Nevada, Maryland, Georgia, Arizona, Florida and New York.

Although many brands have embraced diversity, many marketing firms have yet to address the multicultural market. Those that ignore the increasing numbers of this segment of the population risk losing a big market share. Why do you think organizations resist the need for multicultural marketing?

 

 

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Why I’m Not Watching the Super Bowl, The NFL’s Big Problem

The groundhog has seen his shadow, chips and beer are on sale, and there’s nary a car on the road; it must be Super Bowl Sunday! In a world where I have been historically found at a friend’s house, enjoying a cold one, betting on outcomes, and enjoying everything from the Star Spangled Banner to the commercial breaks, this marks the fourth year in a row that I have opted out of the TV-centric activity. Why?

I can no longer glamorize a game that I fear my son will one day take interest in.

Ya, I know…some other school…

I’m a huge football fan. I was a cheerleader in high school before performing in the marching band and the university mascot in college. Four out of five of my brothers played football. We enjoy watching games on Sundays, and going to games whenever possible.

Now, however, I see the way my 3-year-old learns behaviors and norms from me. If I show my interest in photography, I can be certain I’ll find him playing with my lenses. My husband installed a ceiling fan, and our son now carries screws in his pocket and a toy drill with him. Interests and behaviors are learned, and mimicked by young children. If I watch football, my son watches football. If I enjoy the game, or cheer on a team, or shout “Ooooh!” after a big hit, so does my son. And if we keep watching games, someday he’ll look up at me and say, “I want to play football,” to which my husband and I are unified, “ABSOLUTELY NOT.” And I am not the only parent that feels this way.

The links between CTE (chronic traumatic encephalopacthy) and football players is striking. According to CNN, CTE was found in 99% of deceased football players brains’ that were donated for study. Ninety-nine percent. And, the longer you play football, the more likely you are to have CTE.

CTE, which can only be diagnosed by autopsy, is a degenerative disease caused by concussions and repeated hits to the head. Despite significant efforts to decrease the number of concussions in the NFL, 2017 saw a six-year high:

The Intercept created a film, “Concussion Protocol” which depicts all 281 of these violent collisions this year, and more importantly, the dazed confusion after. If you have five  minutes, it’s worth the watch:

The NFL is aware of the problem both for players and for ratings, and is doing its best to focus on player health. It continues to invest in concussion technology startups. However, this problem doesn’t start with the NFL. It starts much younger, with young men playing contact football as young as 6 – 8 years old, and suffering repeated hits through high school and university.

In 2015, a study in the journal Neurology found that former NFL players who began football before age 12 performed significantly worse on tests than those who started later in their teens. This held true even controlling for number of years played.

Indeed, two mothers in San Diego are suing Pop Warner and advocating a change in youth football after their sons separately committed suicide in their 20s after playing football only in their youth, and were later diagnosed with CTE. Illinois is writing legislation to ban tackle football before the age of 12. Yet, Pop Warner continues to fight for it’s right to tackle.

The violence of this contact sport and the extreme pervasiveness of injury are much of the reason I won’t let my son play, and part of preventing his interest is not watching and idolizing the profession, including the Super Bowl. And if he’s not watching, I’m not watching. This should be as big a problem for advertisers as it is for the NFL.

Today we went for a hike instead. I’ll catch up on the commercials tomorrow…maybe.

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Kid Internet Stars: Adorable or appalling?

I recently saw a video by a sassy and hilarious little girl sharing her feelings about about her mother signing her up for pre-school:

The girl, Mila Stauffer, is one of the newest child “stars” taking social media by storm.  With 3.4 million followers on Instagram account run by her mother Katie Stauffer, and more than 3 million views of the above video on Youtube, she is certifiably a viral star.  With Internet fame inevitably comes paid sponsorships and endorsement deals and Mila is no exception, doing paid partnerships with brands like Amazon, Thule Strollers and Volvo.  Mila’s mother acts as Mila’s manager and is the driving force behind Mila’s fame.  She has been so successful that she recently was able to quit her job and is now receiving a salary from the work Mila does (she says she puts the money in a trust for Mila, her twin sister Emma and her three older children).  

Mila’s mom is just one of a growing number of “sharents” on the Internet, defined as “a term to describe parents who actively share their kids’ digital identities online” (Stadmiller, 2017).  While it usually starts harmlessly — the mom of Ava Ryan posted a clip on Vine of her as a baby saying “I smell like beef” — once families start to realize monetary benefits, that can change.  Brands looking to tap into family friendly markets have begun to offer huge sums of money for sponsored videos, posts and experiences and now being the parent of an Internet star is a legitimate profession.

All this attention has led some to question the ethics of this model that thrusts children into the spotlight while advertisers reap the benefits, sometimes to their psychological detriment.  For example, YouTuber DaddyOFive recently lost custody of two of his children after people started taking issue with his cruel pranks often aimed at his 9 year old and 12 year old that involved him yelling in their faces or purposely making them cry.  According to UNICEF, one in four kids indicated that their parents’ online sharing made them feel anxious, sad, embarrassed or worried and nearly fifty percent of all images shared on pedophile sites are taken from social media sites.  Not to mention that unlike traditional third party child star situations where there are rules about what must be done with the money and limits on how much children can work, the waters are murkier when their parents are running the show.  Additionally, the Internet can be a cruel place and putting kids out in such a fashion can invite extreme criticism, pedophiles or unsavory characters could be putting their mental health or even their physical health at risk.  This unfettered child labor has made some parenting groups and psychologists nervous about the longterm effects of being a viral video start.  Unfortunately, it’s just too early to tell.

So, given these statistics, what does that mean for advertisers looking to take advantage of this new wealth of kid influencers?  Working with Internet stars is enticing for brands because they usually have well-defined personalities, built in established audiences and are guaranteed to draw views.  However, there is clearly a seedy underbelly to this world where it’s not always clear that this is in the best interests of the children. As the New York Times put it, it is now a common question to ask “Why isn’t your toddler paying the mortgage?”

What do you all think? Do you think there should be laws or limits on these types of sponsored postings? Do you think this is much ado about nothing? Share your thoughts in the comments!

References

Luscombe, B. (2017, May 18). The YouTube Parents Who are Turning Family Moments into Big Bucks. Time. Retrieved from www.time.com

Rosman, K. (2017, September 27). Why Isn’t Your Toddler Paying the Mortgage? New York Times. Retrieved from www.nytimes.com

Smidt, R. (2018, January 25). Heres What Its Like To Have A Toddler Who Is Famous On Instagram. Retrieved from https://www.buzzfeed.com/remysmidt/mila-emma-katie-stauffer?utm_term=.mvBDZx6VD#.blxQmz7DQ

Stadtmiller, M. (2017, December 24). Kids Don’t Have Parents Anymore-They Have ‘Sharents’. Retrieved from https://www.thedailybeast.com/kids-dont-have-parents-anymorethey-have-sharents

 

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“Give it to me I’m worth it”?

No one can argue that football has become a religious Sunday holiday for many households in America. When the Super Bowl is underway this coming Sunday, many audiences will tune in to the game even though their favorite team or athlete(s) is not playing. For those who aren’t interested in the game, the commercials are exciting to watch and for some, it may be even more fun to watch than the actual game itself. Millions of people anticipate what brand will stand out and what company will have the best and funniest commercials for the water cooler talk at work on Monday. Some of the known brands for viewers to anticipate are ads from Budweiser and Coca-Cola, while other brands such as Doritos and Pepsi are looking to make a comeback for 2018 (Michaels, 2018). There will be many brands fighting for the attention of over 100 (110 est.) million viewers (Orszag, 2018).

The price of advertisement on Super Bowl Sunday is ridiculously high at a minimum of $5 million for a 30-second spot (Spross, 2018). That’s a jump from $2 million just in 2002, and at $4.5 million in 2015 (Spross, 2018). The cost continues to climb and it makes one think as a brand, is it really worth it? At what cost will the investment of the Super Bowl ad will be reciprocated? One of the reasons for the uphill in cost is that the Super Bowl is a social event and in a digital era, it is a live event that can’t be fast forward or viewers skipping through the commercials (Spross, 2018). However, if this cost continues to go up, will the value of ad be profitable for the 30-second spot? At this point, I don’t believe that it’s not worth the money, but that’s not what the NFL wants advertisers to think. I have to give it to the NFL for believing that they are worth it. 

Fifth Harmony, Worth It ft. Kid Ink, Reflection

 

Economists did conduct a study of ads for films that aired during the Super Bowl between 2004 and 2014 (Orszag, 2018). In their research of 70 films, the results were an $8.4 million increase in revenue from ticket sales that does not include sales from the opening week (Orszag, 2018). The success is due to Studios expectation of commercial box office success (Orszag, 2018). Thus, only movies that studios knew would generate a high volume of ticket sales are aired during Super Bowl slot such as summer blockbuster. Measuring the effectiveness of ads on brands, on the other hand, is extremely difficult. According to marketing experts on a recent survey, ads during Super Bowl cost is less effective because the ads don’t translate directly into increased sales or consumers intent to purchase (Orszag, 2018). However, economists argue that ads do pay for themselves and are more effective than what marketing experts claimed. Ads that run in the cities of the team has a 20 percent more viewership than other cities (Orszag, 2018). Of course, no one knows what team or cities will be in the Super Bowl because ad spot is purchased in advance (Bloomberg). Another reason ads work because beer and sodas have high consumption rate during the game (Orszag, 2018).

So based on the research done, it still seems that the benefit still does not outweigh the cost. It only works for specific circumstances such as beer since many people drink during the game. There are no overwhelming results that the cost for an ad will translate into dollars for a brand. The game has already decreased by 10 percent viewership this year alone (Spross, 2018). So why do the cost of ads still going up? The ticket sales are already steep enough and the NFL is making money in merchandise and concession. So why do advertisers still want the spot when they know that the likelihood of investment may not be worth air time. Do they still believe that the more exposure the brand gets, the greater the chances of profitability?

References:

 

Michaels, M. (2018, January 25). The price of a 30-second Super Bowl ad has exploded – but it may be worth it for companies. Retrieved February 04, 2018, from http://www.businessinsider.com/super-bowl-commercials-cost-more-than-eagles-quarterback-earns-2018-1

 

Orszag, P. R. (2018, January 31). Some Super Bowl Ads Are Worth the Price. Retrieved February 04, 2018, from https://www.bloomberg.com/view/articles/2018-01-31/some-super-bowl-ads-are-worth-the-price

Spross, J. (2018, February 02). Are Super Bowl ads really worth $5 million? Retrieved February 04, 2018, from http://theweek.com/articles/752440/are-super-bowl-ads-really-worth-5-million

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