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Posts Tagged ‘advertising’

In Perhaps its Most Modern Move Yet, One McDonalds Goes Very Low-Tech in Marketing (VIDEO)

Posted on: May 13th, 2013 by Wendy Gittleson

While the quality and nutritional value of McDonald’s food is under constant scrutiny, McDonalds as a marketing mecca is indisputable. Their advertising budget alone is estimated to run about $2 billion a year. They are often criticized for the fact that much of that budget is geared toward children – and it is, but without cooperative parents, marketing to children is a waste of money.

For that reason, McDonalds is attempting to rebrand itself – somewhat. It’s trying to represent itself as a place for fresh and even healthy food and since “fresh and healthy” often harkens back to days when life was simpler – when people grew their own food – McDonalds is taking a decidedly low-tech approach with a very modern and high-tech twist.

Nationally, McDonalds started a TV advertising campaign which featured farmers who grew McDonalds’ food. The back-to-the-earth advertising campaign was followed by YouTube videos and a Twitter campaign with the hashtag, #MeetTheFarmers. The Twitter campaign turned sour once McDonalds moved the conversation to #McDStories where people started tweeting their own opinions about McDonalds, but still, it was an attempt at old meets new. Whether it was a net gain or a net loss is still up for debate, although I suspect that Twitter might not have had the negative effect some might imagine.

McDonalds, according to Neil Gordon, their Chief Marketing Officer, can either change their food or change the way their food is perceived. The problem with changing their food is that a whole lot of people love their food.

One McDonalds in Poland is taking a unique approach to changing their perception. Inspired by local restaurants who have chalk menu boards, McDonalds took that idea and turned it into a billboard – one which is designed and changed twice a day from a famous graffiti artist. From AdWeek:

“If the crowds seem larger than usual at a certain McDonald’s in Warsaw, Poland, chalk it up to the menu. We’re talking about a billboard-sized menu, hand-drawn in multicolored chalk twice daily by graffiti artist Stefan Szwed-Stronzynski as part of a campaign cooked up by the local office of DDB, art studio Good Looking and Krewcy Krawcy Productions. The goal, per the creative team, is to capture “the freshness of McDonald’s food” and the breadth of its offerings in a highly flexible way. I’d say they’ve succeeded, but no matter what this McD’s is serving, the menu itself is the special of the day.”

Of course, a billboard, no matter how hip and creative, won’t ever have a mass audience, so they made a commercial. Here’s the video:

While the video hasn’t yet gone viral, you can be sure that with Americans looking for ways they can feel good about spending their money, we’ll be seeing more personal, old school messages being taken to a very modern place.

It’s Time to Realize that 18-34 Year Olds Don’t Hold All The Advertising Power

Posted on: April 29th, 2013 by Wendy Gittleson

A few weeks ago, an owner of a successful blog lamented the fact that his demographic reach was strongest with women over 45. “My readers should be 18-34 year old men,” he complained.

“Women over 45 are reading your blog,” I stressed, “I would just go with it.”

The blog owner wasn’t happy with the answer, insisting that it was his blog that needed to change, not his target demographic. He needed, he felt, to feature articles that appealed to a younger audience in order to stay viable.

In the blog owner’s defense, he’s not alone in believing that 18-34 year old men are a magic goal – that if he were to reach the proper number of that elusive subset then advertisers would start pouring money in his direction.

There was a time when people over 35 were seen as set in their ways. They already knew the type of detergent or underwear they preferred and they were unlikely to deviate. In other words, young people’s minds could still be manipulated by advertisers.

That idea (largely mythological), began during the “Mad Men” era of advertising. 20+ years after the beginning of the Baby Boom, the American population was young. Specifically, in 1966, 45% of the population was under 25. That meant if a product didn’t appeal to younger audiences, they were potentially cutting their market in half.

But even then, not all advertisers thought of the young Baby Boomers as a gold mine. If a product – like a luxury car – symbolizes having arrived in life, there’s little point in targeting people who probably won’t be able to afford it for another 20 years. Even during the 60s and 70s, much of the advertising had a stodgy feel. Advertisers did know, however, that if they could convince a young person to buy a Ford Mustang, brand loyalty might encourage them to graduate to a Lincoln once they did achieve financial success. But they also knew that if they advertised Mustangs as younger, more sporty vehicles, Lincoln buyers might also purchase a Mustang as a speedy fountain of youth.

Brand loyalty has all but died since the Golden Age of Advertising. Americans are getting older, but we are also becoming increasingly youth obsessed. It’s not uncommon to see parents and teenagers wearing similar clothes, listening to similar music, buying the same electronics and being “friends” on various social networking sites.

18-34 remains the gold standard in advertising demographics, even though today’s  older consumers are nearly as malleable as younger buyers – and the older consumers generally have more money to spend.

From MediaPost.com in 2009:

“According to McKinsey Consulting, by 2010 (3.5 short months from now) 50% of all consumer spending in America will be by people over the age of 50. People 50+ earn $2.4 trillion annually compared to $1 trillion for the 18-34 group (and they spend at the same rate). Also according to McKinsey, people 50+ generate 41% of all disposable income, while they represent only 30% of the population. They buy 60% of all packaged goods, over half of all new cars and spend 75% more per vacation than consumers under 50. And in 2007, those over 50 spent 3 times the national average holiday shopping online.

And yet, less than 10% of all U.S. marketing dollars are spent against the 50+ consumer, and nationwide research shows that the majority of consumers over 50 feel that advertising and marketing either portrays them negatively or ignores them altogether.”

So, why don’t advertisers target older consumers? Perhaps it’s because many 50-year-olds see themselves as 30-year-olds or perhaps it’s because despite the fact that advertising is a creative industry, ad buyers are slow to discard decades-old notions. Perhaps it’s simply because it’s what they were told in college.

If you run a successful business, like the blog owner above, analyze your market. If women over 45 are reading your blog or buying your product, don’t reinvent the wheel. Embrace your market. Expand it if you can, but unless you have the reach of a product like Facebook, there are many millions more that can be tapped in your existing demographic. In other words, often the best marketing plan is simply to do more of what you’re already doing and never, ever, turn your back on your existing customer, no matter how old they are.

 

 

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