Advertising Age - June 28, 2010

VIEWPOINT

Edited by Ken Wheaton, kwheaton@adage.com

EDITORIAL

MARKETERS MAY WANT TO STEER CLEAR OF OIL-SPILL CRISIS

More than two months later, the BP oil spill is still flowing—and still providing a case study in the limits of advertising during a true crisis.

We won’t delve into BP’s attempts at advertising and its own struggles; enough has been written about that already. We will say this: While its PR efforts have been about as successful as its attempts to cap the well, what advertising the company has released has been restrained and as adequate as such things can be.

But what about others affected—directly or indirectly—by the
spill? From the start, states along the Gulf Coast have been
advertising heavily—with the help of BP money—in an attempt to
convince potential tourists that their
beaches haven’t been destroyed yet or that
there are other things to do.
Then there was Spirit Airlines, which
thought it would have some fun in
promoting flights to non-gulf beach
destinations by making oil-spill related jokes.
“Check out the oil on our beaches,” read
copy referring to bikini-clad women coated
in suntan oil. Many consumers weren’t
amused, but the airline held its ground,
saying it was unfortunate that such
consumers didn’t understand the joke.
Perhaps the most interesting response
has come from BP’s competitors. With the
exception of Shell Oil, they’ve remained mostly silent. Marketers
don’t want to be seen as capitalizing on a crisis—especially amid
public outrage. Still, inthe marketplace, thereward goes tothose
willing to take a risk. And that is what Shell is doing.

On the surface it might seem like a clever strategy to remind consumers of your brand name at a time when a huge competitor is most vulnerable. Consumers need to buy the product, and it might as well be yours. And it makes obvious sense to run warm, fuzzy ads about alternative energy as a rival’s rig is spewing crude into the oceans.

But the majority of Shell’s profits come from oil. And overpromising on alternative energy—going beyond petroleum—is one of many reasons BP is getting raked over the coals. A more honest approach would be to compare Shell’s safety record in the Gulf of Mexico to BP’s—but that too is dangerous ground considering Shell’s own record in Nigeria.

Sometimes a crisis can be so serious that advertising around it won’t do anyone any good—and can actually lead to harm. We’re not sure yet, but this might be one of those times.

It might seem like a clever strategy, to remind consumers of your brand name at a time when a competitor is vulnerable. Consumers need to buy the product, after all.

Do you have something to say? Send letters and corrections to viewpoint@adage.com or to Advertising Age, Viewpoint, 711 Third Ave., New York, NY 10017. Please limit letters to 250 words

READER RESPONSE

CREATIVES CAN WORK LEFT-BRAIN,
RIGHT-BRAIN SIMULTANEOUSLY

RE:“WhyaLittleDisciplineIsGoodfortheCreativeProcess” ( AdAge.com,June15)

INTERNET GIVETH AND TAKETH
AWAY IN AUTOMOTIVE WORLD

RE:“ IsDigitalRevolutionDrivingDeclineinU.S.CarCulture?” (AA,May31)

STEVE BRU YN, FORESIGHT RESEARCH, ROCHESTER, MICH.

DAVID NILES, SSA & CO., NEW YORK

We were relieved to see Avi Dan’s
piece on “Why a Little Discipline is
Good for the Creative Process.” As the
progenitors of the Six Sigma
methodology, we’ve long thought that
marketing and creative services would
benefit as much from better process
as any other. But because the
discipline’s history is tied to
manufacturing—notwithstanding that service companies
have provided the majority of our revenues for some years
now—it’s been a tough sell. But the tide is turning.

We know that continuous improvement yields results in environments where creativity and innovation drive the business. In the legal world, where work is considered as much art as science, we’ve been able to help increase margin and efficiency while devising a new way to provide value to clients: that’s innovation. (And happier clients, more clients, returning clients and potentially a new business model in a sector whose clients are demanding it. Sound familiar?) Much of our other work resides in the R&D and design departments of many “creative” companies, understanding customers better and coming up with new ideas.

Our success in bringing process to new sectors has been, as Dan suggested, in customizing the practice to the sector. In professional services, that has meant losing the jargon, deploying fewer statistical tools and maintaining a flexible approach to data, a polite and deeply effective way to both respect and leverage the culture in which one operates. Let’s not pretend that what worked at GE will work at your boutique online agency.

As agencies, you are rightly pushing your clients to adapt to new environments, leverage new ideas and get closer to their customers. We’d suggest that there is big opportunity in turning the same lens on the agency business itself. Finally, let’s step firmly into the 21st century and drop the false assumption that a creative person can’t hold “cycle time” and “magenta red” in his or her mind simultaneously.

Even if you like ordering the world in right brain/left brain or creative-type/account-type divides, current science is showing that those don’t hold up as firmly as we might like— you may need to work a little harder, but wouldn’t it be worth having your creative genius find expression in execution because good process helped it get there?

AVI DAN: Suggested a Six-Sigma light.

There is an interesting dichotomy in the research results reported in your article and research we recently completed at Foresight Research on the influence of the internet and social media on automotive sales.

While it may well be true that the internet is causing fewer young drivers to buy new vehicles . . . that same internet is the biggest single shopping guide to those who do want to purchase new vehicles.

In 2009, 86% of all new car buyers used the internet in their new-vehicle-purchase process. And in addition to that, 36% reported that the internet highly influenced their purchase, making it the No. 1 marketing channel of communication. But what’s most interesting is that nearly a quarter of buyers under the age of 35 used some form of social media to share their decision with other buyers.

Social networking is a fast-growing electronic word-of-mouth, and is often used by folks we call “shouters” because they are nonstop talkers and play a large role in the sale of new vehicles to other people. . . . Ninety-three percent of them used the internet in their shopping, and 29% offered specific vehicle recommendations to other buyers.

When we look at the buyers on the receiving end of those recommendations, 51% said they used anonymous reviews and 75% said they used social networking to consult with a friend or family member.

As the Bible says, “What the Lord (or teacher) giveth, the Lord taketh away.” In this case, with the internet being the teacher, it may be taking some young car buyers out of the market, but at the same time it’s influencing a whole lot more of them to stay in and buy the cars they buy.

CORRECTIONS:

RE:“HowAT&TPlanstoLiftItsImageViaSocial-Media CustomerCare”(AA,June21).ShawnMcPikewas incorrectlyreferredtoasShawnPike.

RE:“TheGlobalCMOInterview:ErinMulliganNelson, Dell”(AA,June14).Thearticleinaccuratelystatedthat Dellisorganizedintofourproductdivisions.Itis organizedintofourbusinessunits.

RE:“What’stheNextOrphanBrandasMarketersLookto Trim?”(AA,May31).Thestoryincorrectlystatedthat PrestigeBrandsisputtingmostofitslineuponthesaleblock. ThecompanyisonlyactivelyshoppingitsCutexbrand.

WHAT YOU SAY

ARE YOU FOLLOWING NEWS OUT OF CANNES?

21%

Yes

One of the grand traditions of Cannes is heaping scorn upon the biggest awards spectacle in the ad industry. This year was no different as 77% of those responding to our poll claimed they weren’t following the news from France.

I’m there now.

77 Say they don’t care about news from Cannes.

Great event for the wealthy and large agencies to pat each other on the back. Zero value and relevance for most agencies and marketing professionals.

–SHAD CHRISTENSEN

Cannes is the right venue if the correct model for the advertising industry is Hollywood and creatives are its celebrities. Can anyone imagine Bill Bernbach or Leo Burnett hoisting self-congratulatory toasts on the Croissette?

–GERRY MILLER

I don’t care about them unless they’re giving me or coworkers an award. In the internet era, I’ve seen most of the ads that are up for awards already; if they were good, they likely made the rounds on the usual advertising-focused parts of the net.

–TONY SANTOS

Cannes is a pleasant diversion. People need to be occupied. Good work deserves to be acknowledged. … Awards are little things, but they make the recipients happy. Let’s leave it at that.