Market Overview

Technology Forces Advertisers To Get Creative

Technology Forces Advertisers To Get Creative

The days of 30-second TV commercials may be numbered. According to the Wall Street Journal’s Suzanne Vranica, commercial-free streaming video content, DVRs and ad-blocking software have forced advertisers to re-think their approach to consumers.

Two of the most popular new approaches involve making ads less obvious and making ads more targeted.

Product Placement

One example of the first approach is PepsiCo, Inc. (NYSE: PEP)’s recent prominent placement in Twenty-First Century Fox Inc (NASDAQ: FOXA)'s FOX drama “Empire.” In the show, a character was offered an endorsement contract with Pepsi. This product-placement-esque approach to subtly integrating advertising messages into video content itself rather than relegating it to commercial breaks is intended to get the message across to consumers without them even noticing.

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Mondelez International Inc (NASDAQ: MDLZ) is currently co-producing a one-hour skydiving special that is being created to promote its Stride chewing gum. The company’s “Twist, Lick, Dunk” Oreo mobile app game also has more than 7 million downloads.

Advertisers now have unprecedented access to data about their target audiences, which they have been using to improve the efficiency of their ads, particularly on the Internet.

'Native' Advertising And Knowing Your Audience

“Native ads have 50 percent higher click-through rates than any of our [display] banner inventory,” Coldwell Chief Marketing Officer Sean Blankenship explained.

Johnson & Johnson (NYSE: JNJ) has been using data to zero in on customers that are most likely to be influenced by ads. For example, the company found that the optimal time to target new mothers with advertising for baby toiletries is during the 26th week of pregnancy.

The company also upped its mobile banner advertising for Neutrogena sunscreen last year for users located close to beaches or pools on days when UV levels were high.

Disclosure: The author holds no position in the stocks mentioned.

Posted-In: ads advertisements ColdwellEducation Top Stories Tech Trading Ideas General Best of Benzinga


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