Now is the Perfect Time to Buy Print Media

As technology improves, more and more brands are shifting their marketing dollars away from traditional media channels like newspaper to more cost effective marketing channels such as online.  This is happening in spite of the fact that most brand managers still believe that newspaper is a better marketing channel.  The brands are just comparing apples to apples with CPM per dollar, and online always wins the battle.  Newspapers are actively working to stop the bleeding within their ad sales department by any means necessary.

This desperate environment for newspaper ad sales is further compounded by the current economy and a separate trend whereby brands are allocating the overflow of funds from national media buys to more local media outlets.  This is becoming increasingly popular, as the ability and process to purchase local media becomes more and more easy, and local media is proving to be more and more effective.

These three factors have created the perfect storm for brands to re-negotiate their print media costs.  Newspapers are now willing to negotiate rates to maintain and solidify current and prospective clients media spend.

One of the best ways to approach the negotiation is through a third party that acts as the representative media buying agency for a number of big brands.  The agency reaches out to the media outlet with the expected local online spend of their brands.  The agency explains that they’re able to switch their clients spend from on-line to print, if the newspaper can match the CPM that is being offered by its online competitors.

More often than not the newspaper accepts the deal, and the brand can start buying local print media at a much lower rate.

– Erika Grizzanti

The QR Code as a Shelf-Talker?

QR Codes are becoming more common throughout mobile advertising campaigns across the nation.  Advertisers can promote specific events, products, services and more by allowing mobile users to instantly access more information through their mobile phone internet browsers.   A QR code is a 2-demensional barcode that is linked to a particular URL.  Users take a picture using a camera on a smart phone and the embedded URL links to the browser on the phone taking the user to the specified page.  Here, the link may contain video/photos, features, website or anything that the URL has been set up for.

Retailers are taking advantage of QR codes and the ability to connect customers to their products while customers are present in the store.  Known as “Shelf-talkers” a QR code is placed on a products sku tag on the shelf in front of the product.  The customer can then scan the code and learn valuable insight before making a purchase decision.  For example, a retailer can set up a QR code on the sku tag of a DVD.  When a customer is deciding which movie to purchase they can scan the code on their mobile phone and watch a video of the movie trailer.  A retailer can also use a QR code on other products, such as an appliance or electronic to highlight features that wouldn’t be listed on a sku tag in store.

Please click here for an overview for more information on how LiveTechnology is leveraging QR Codes for some of the biggest brands in the world.

QR Codes enable both retailers as well as manufacturers to have a better view of consumer shopping habits, by tracking QR Code and page view activity.   As a result, retailers and manufactures are able to better plan and place their products.

Companies using cutting-edge technology give the appearance of being technologically driven which can translate into a positive foresight.  This is especially important to the customer in a competitive market.  As companies continue to leverage QR codes, they will increase brand and product awareness, learn more about their customers, and eventually develop a stronger bond with their customer.

Local Marketing ROI 4x Higher over National Marketing

In 2007, auto retailers spent $7.3 billion on direct marketing campaigns driving $248.1 billion in sales, yielding an ROI of $33.81.  During the same period, auto manufacturers spent $8 bilion on direct marketing, driving $77.8 billion in sales, an ROI of $9.68.  Source: Direct Marketing Association

When examining the automotive retailers direct mail, one must ask, “Do the local pieces build brand equity or do they only increase the brand awareness of the retailer?” In most cases, unless there is marketing assistance from a dealer association or the brand, the local retailer is branding all communication for the dealership, irregardless of brand.  While this is not a problem for retailers it does not build any brand equity for the brand and could even dilute the brand.

What does this mean for CMOs and marketers?  CMOs need to take the initiative to invest in local strategies that help retailers to “ring the cash register” while building brand equity.  They can do this by implementing solutions that maintain brand standards and use standardized brand-approved themes while being flexible to be used by local retailers.  This ensures brand-building while retaining the ROI of the local campaigns.

Moreover, CMOs should implement these strategies to build brand equity across all forms of media.  Messages that are unified across all forms of media at the local level are the best for overcoming the media fragmentation that exists.

The ROI is clear – local marketing strategies yield the best results.