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To: JWC who wrote (34)1/28/2000 8:00:00 PM
From: ztect  Read Replies (1) | Respond to of 177
 
(gbn/ma) Super Bowl Advertising, 2 dots vs 17 coms

According to what I just heard on the news, 17 "dot.coms" are advertising during the Super Bowl this year. Last year only two advertised.

One- ourbeginning.com- advertising this year had annual revenues of only $1 mil, and was spending $2.2 mil on their 30 second spot. All the dot.com competing for time slots have pushed the slot price up to an all time high.

The CEo of this company that only has received 10,000 hits said that this was what they needed to do to direct traffic to their web site. Let me repeat, direct traffic to their website. The CEO said his company could easily handle ten times the traffic.

Now all these dot.coms saw what with Monster.com's (450% increase in traffic) last year, and think the same thing will happen to them. Namely "brand" name recognition from being placed in front of the eyes of 125 mil viewers watching the Bowl game, who- in theory- will remember the site name and go to their web sites.

Only rub is that Monster was one of two new brand names. Other brands advertised were primarily household names like Fed-x, Pepsi, et cetera. Monster's was only one creative ad to remember. Now instead of two, there are 17 !!.

Two hours after the game, I wager people will only be able to recall two or three, and those will probably be the ones that they've already heard of because so many are vying for your attention.

A comparison would be remembering what programs were on the televison on a specific night when there were three stations as opposed to having cable with 30 stations instead.

More competition for your attention means less attention.
Each and every one of these dot.com thinks that there ad will be clever enough to rise above the visual orgy. Unfortunately for many this year, it won't

I heard a survey mentioned on the news or NPR during Christmas time, and that report said that only 15% of these new dot.com ads made any impression during the holiday season. The ads people seemed to remember when asked to recall were primarily just those of Amazon, and per Amazon's lay-offs today- you see what good Amazon's ads did for them.

Probably next year there will be fewer dot.coms running
these ads to these expensive slots after their ads fail to direct the anticipated traffic to their respective sites.

MEANWHILE TSIG.COM GOT PAID BY COCA COLA'S DIVISION FOR PROMO CARDS WHICH WERE PROMOTED BY COCA COLA. .

z

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z



To: JWC who wrote (34)1/30/2000 11:50:00 AM
From: ztect  Read Replies (1) | Respond to of 177
 
(ma/art) Mass Marketing Super Bowl Advertising

ragingbull.com

Super Bowl underdogs
Market Sleuth 01/27/2000 3:30 PM
By Tom Ker

This Sunday's Super Bowl between the Tennessee Titans and St. Louis Rams promises to be one of the most competitive match-ups in recent years. However, the real battle will be taking place not on the field, but between you and the commercial advertisers. One half of this challenge involves big-name traditional sponsors, bombarding you with engaging and clever commercial spots hoping to sucker you into buying their products, and the other side involves dot-com companies simply hoping you will remember their name. Compare this list of advertisers...

Electronic Data Systems (EDS)
Coca-Cola (KO)
Anheuser-Busch (BUD)
Motorola (MOT)
Pepsi (PEP)
Ford (F)
Hewlett-Packard (HWP)
Disney (DIS)
Pizza Hut
Visa
...with this list:

Hotjobs.com (HOTJ)
Kforce.com
Ourbeginning.com
Autotrader.com
Lastminutetravel.com
Monster.com
Lifeminders.com (LFMN)
Netpliance.com
Internet companies this year are expected to garner about one-fourth of the commercial spots during Super Bowl XXXIV, up from maybe just three or four last year. This year's 30-second commercials are costing about $2 million, a 25% increase over last year's prices. In what will become a truly fascinating experiment, these dot-com companies will spend an enormous percentage of their annualized marketing budget -- not to mention some of them spending a frightening amount of their existing cash -- in just 30 seconds.

Blowing cash

Hotjobs.com (HOTJ), the leading proponent of one-shot advertising, spent about half of its revenues last year on one Super Bowl spot, and it continues to claim it was definitely worth it. Five minutes after the commercial ran in 1999's Super Bowl XXXIII, the volume of people accessing Hotjobs.com surged fivefold. The site later in the year was ranked number six in brand recognition, according to an August, 1999 study conducted by Opinion Research Corp. International. This year, it will take two 30-second spots costing roughly $4 million total, which will represent about 20% of sales, or almost 15% of cash on the balance sheet as of September 30, 1999. This is once again an amazing gamble by Hotjobs, because the company generates no positive cash flow, so the commercials are being funded either by your IPO money or venture capital money. Supporters of one-shot advertising will claim it's necessary to be successful in the ultracompetitive world of the Internet, and they're probably right. But is this really an attractive business where this type of marketing blowout becomes a necessity?

And are we even sure one-shot advertising can actually be a singular event? The competitiveness of the Internet would lead us to believe that dot-com companies continually need do this in order to keep eyeballs, as opposed to capturing them just once. Contrast this with a brand like Budweiser,. where after its Super Bowl ads are done, people will continue to see that brand randomly and for free -- in the bar, in the grocery store, in the garbage can -- essentially keeping that brand alive with minimal additional cost. Not so for Internet companies, in which there is very little, if any, free publicity, and a user must make a conscious decision to visit a particular site. Nothing is going to remind me to go to a particular Web site unless I am bombarded with reminders of that presence, and bombarding never comes cheap.

Emptying the coffers

However, nothing is more intriguing from an investment perspective as those advertisers whose Super Bowl ad spending exceeds the entire revenues of the company. Ourbeginning.com, an online provider of wedding stationary, is supposed to generate just $1 million in revenues its first full year of operations. Angeltips.com has not generated any revenues, and was willing to finance its $2 million spot from early investors -- that is, up until a few weeks ago, when it recently pulled out of its spot. Some pre-IPO candidates are even suspected of throwing away a big chunk of marketing expenditures just to create hype in order to jump-start the offering, instead of building a brand over the long term. Ourbeginning.com, Lastminutetravel.com, and Autotrader.com are still private, and Netpliance.com is scheduled to go public this current quarter.

The only sure winner, of course, is Disney (DIS)-owned ABC Television. Last-minute spot sales, in which ABC will buy from existing advertisers and resell to the highest bidder, are reaching $3 million, which is estimated to raise the overall average to about $2.3 million per 30-second spot. With 61 spots available during the game, ABC could enjoy over a $140 million payday, not counting pre-game and post-game activity.

Still playing catch-up

I suspect the dot-com ads will have minimal affect on viewers, because the real interest still lies in the innovative and witty ads from traditional advertisers. Expectations are high for companies like Anheuser-Busch (BUD), the mother of all Super Bowl advertisers, which is spending $30 million this year. That figure happens to be less than 1% of just one quarter's sales. Recent ads from Internet companies have proven to be too quirky and incomprehensible for mass audiences, which makes sense, since a large percentage of worldwide viewers are still not online. Viewers are often hard-pressed to figure out just what these companies actually do after watching a particular ad.

Give me a talking lizard any day.



To: JWC who wrote (34)1/30/2000 5:25:00 PM
From: ztect  Read Replies (1) | Respond to of 177
 
(ma) Not So Super Super Bowl Television Ads

chicagotribune.com

Dot-com firms hop a runaway train
As Super Bowl ads hit top speeds, critics expect crash

By Phat X. Chiem
Tribune Staff Writer
January 30, 2000

HotJobs.com Chief Executive Richard Johnson wants to lay claim to the universal icon of the Internet: the "Hand" that points to the hyperlinks on a Web page.

And he's spending $3 million in 30 seconds in a Hail Mary bid to do so.

Hotjobs.com, an Internet job-search site, is among the rush of companies that will toss out their funniest, wackiest or otherwise most memorable advertising during Sunday's Super Bowl broadcast.

Yet as the ad rates soar, so does the skepticism among marketing experts who believe that few of these commercials will stick with the estimated 120 million viewers after the nachos and dip disappear.

Indeed, the much-hyped game has become a showcase for splashy, self-conscious ads that convey no lasting message, some experts say. And this year, with a dozen or so participating dot-coms that have little or no brand recognition to begin with, more marketing megabucks than ever will be wasted, they say.

"It's really easy to get attention on the Super Bowl," said Peter Krivkovich, president-chief executive of Chicago-based Cramer Krasselt. "It's harder to get attention with meaning that solidifies the strength of your brand. Being memorable without meaning is idiotic."

Still, the advertisers keep coming.

Feeding off the frenzy of cash-flushed dot-coms, ABC boosted the average price of a 30-second bowl ad to a staggering $2.2 million-a 37 percent premium over last season's rates. The network is reaping as much as $3 million for a half-minute's exposure, or $100,000 per second.

Sure, the same $100,000 bought an entire 30-second slot in 1970. But Johnson, for one, thinks the expense is justified. Last year, when Hotjobs.com was only one of three dot-coms to advertise in the Super Bowl, the site's traffic more than doubled to 1.9 million visitors a month following the game, he said.

And Johnson estimates he got $25 million in free, prebowl publicity- in part because the Fox network rejected an initial ad featuring an elephant sitting on a zoo worker.

Hotjobs.com comes back this year with a campaign that features the human-size Hand, with the voice of actor Samuel L. Jackson, going through a series of job interviews. The spots end with the tagline: "The hottest hand on the Web."

"Everybody said we were crazy to advertise in the Super Bowl last year," Johnson said. "But we went from a small Internet company to being a brand overnight. Now we look like geniuses."

Not counting production costs of about $1 million, Hotjobs.com paid $1.9 million for a 30-second slot back in August. "Not only did we buy three months earlier [than usual], we paid full asking price," Johnson said.

Such inflated prices for bowl advertising have prompted something of a backlash. In recent years, several longtime Super Bowl advertisers, including McDonald's, MasterLock and Nike, have pulled the plug on the game. Some companies tried to back out of their commitments this year, and ABC reportedly had a few spots available as late as last week.

An editorial in last week's edition of the industry's trade journal, Advertising Age, called for a "Super Bowl equivalent of a stock market correction."

Most companies will "waste millions frolicking in an overwhelming, forgettable commercial orgy," the publication opined.

And in a blow to eager dot-com companies, a survey this month by Andersen Consulting suggests that banner advertising on the Internet is more effective than expensive TV ads.

"From a mass marketing standpoint, the Super Bowl is one of the biggest events of the year," said Norm Rickeman, partner in Andersen Consulting's media and entertainment group in Minneapolis. "But does it really drive consumers to the Web site? Our research would say that among experienced Web users, what's available on the Internet is more relevant than what they saw on TV."

For some advertisers, though, the number of game-day viewers makes a gamble irresistible.

Hallmark Cards reports that the Super Bowl has overtaken New Year's Eve as the nation's top at-home party occasion. And in an increasingly fragmented advertising world, it's one of the few mass-market venues left.

History has been made in 30 seconds on Super Bowl Sunday-and not only because of a Joe Montana pass or a Marcus Allen run. Consider the famous "1984" commercial for Apple Computer during that Orwellian year in which a young woman smashes the towering image of Big Brother with a sledgehammer.

That one ad not only became a landmark in Super Bowl advertising, but helped fuel today's high-tech revolution by propping up sales of the struggling personal computer maker.

"There's nothing like the Super Bowl. You're going to reach an awful lot of people really quickly," said Dennis Ryan, executive creative director for J. Walter Thompson USA in Chicago, which produced a commercial for Blockbuster Video starring beleaguered ex-Bears football coach Mike Ditka that will air during the pregame show.

Ryan thinks the Blockbuster spot will stand out amid the commercial clutter because of its humor and topicality. Written by Thompson's group creative director Jeff York, the ad has Ditka, who was recently fired as coach of the New Orleans Saints, trying to persuade a popcorn vendor to rent "Runaway Bride."

"Help me out here, fella," Ditka cajoles. "You don't want me to lose this job, too?"

To be sure, the blitz of dot-coms, including such unfamiliar sites as Computer.com, Lifeminders.com, Epidemic.com and Netpliance.com, is bringing a strange advertising mix to the beer-soaked audience. Pets.com has three spots with its rambunctious Sock Puppet crooning the band Chicago's "If You Leave Me Now." OurBeginning.com is spending five times its annual revenue of just $1 million to push its on-line wedding invitation service.

Even companies that don't really advertise to consumers are rushing the crowded field. Chicago-based John Nuveen is spending $4 million for a 60-second spot to highlight its shift from a municipal bond underwriter to a money manager for brokers and advisers.

In the ad, paralyzed actor Christopher Reeve appears to rise from a chair to present an award for research that produces a cure for spinal-cord injuries. "In the future, so many amazing things will happen in the world," the narrator says. "What amazing thing can you make happen?"

Nuveen CEO Tim Schwertfeger said the commercial is intended to "inspire a much higher level of dialogue about investing, away from spending and accumulating to social responsibility."

EDS, a company that offers business-to-business information technology services, comes out with a 60-second "epic tale" that shows Western cowboys driving hundreds of cats across the plains.

"We wanted to show that EDS can create order from chaos and defeat complexity by herding technologies," says David Lubars, chief creative director for Fallon McElligott in Minneapolis, the agency that created the spots.

But whether the ads can translate into increased revenues and stronger brands is a big question. Even HotJobs' Johnson acknowledges that a good number of the game-day spots will fail to connect with viewers.

"The Super Bowl is trending down in terms of effectiveness," he said. "Next year, the prices will be determined by the success of the dot-coms. If it's a bust, you might see a flattening out of the rates and the return of the traditional advertisers."

Perhaps the best example of Super Bowl advertising absurdity- or brilliance- is Lifeminders.com, an on-line direct-marketing company. The company bought a 30-second spot in late November, but its agency, Fallon McElligott, refused to produce the commercial, saying there wasn't enough time.

So the firm's executives made a low-budget ad on their own. An on-screen card with crude black letter proclaims: "This is the worst commercial on the Super Bowl."

This year, Lifeminders.com's ad might prove to be the smartest play of all.