Archive for the ‘Case Studies’ Category

Case Study: Girding for a Leaner P&G

Thursday, June 11th, 2009

An expected change in top management at Procter & Gamble could further an already troubling trend for Madison Avenue: a winnowing of the number of advertising firms used by big ad spenders.

Ad executives greeted with some trepidation the news that P&G was poised to appoint a new chief executive. On Monday, The Wall Street Journal reported that P&G’s board was expected to approve a plan to replace longtime CEO A.G. Lafley with Robert McDonald, currently its chief operating officer. Mr. Lafley would remain chairman.

[procter and gamble and advertising]

The change is expected to be announced Wednesday morning, according to a person familiar with the matter.

In ad circles, Mr. McDonald is regarded as a no-nonsense executive who, along with P&G’s global marketing chief Marc Pritchard, has been streamlining the way the company works with advertising and marketing companies.

That effort could cut a number of ad agencies and marketing firms out of the spoils, according to ad executives close to the company. P&G, the world’s biggest advertiser, spends about $8.7 billion annually on promotions ranging from TV ads to in-store marketing programs for products like Tide laundry detergent and Pampers diapers.

“They are pushing to get more service for less money,” says one ad executive familiar with the company.

A P&G spokeswoman declined to comment.

Madison Avenue is undergoing a broad contraction sparked by the economic crisis and tumult in the auto industry. General Motors, which until last year was the second-largest ad spender in the U.S., behind P&G, has already slashed the fees it pays to its ad firms and — ad executives familiar with the company say — will likely cut down on the number of ad firms it employs.

Mr. McDonald’s expected appointment raises questions about how P&G’s massive advertising budget might be affected. The consumer-products company slashed its U.S. ad spending on conventional media, including TV and print, and Web display ads by 6% last year to $3.2 billion, according to WPP’s TNS Media Intelligence.

P&G has been moving more of its ad dollars to digital media, and has been pressuring media companies for price breaks. Ad executives familiar with P&G suggest that both patterns will continue under the new regime.

[procter and gamble ads]

With Mr. McDonald, people will see “much leaner and more efficient ways to build a brand than P&G has in the past,” says an ad executive familiar with the matter.

P&G now works with thousands of ad and marketing firms around the globe. Mr. McDonald probably will seek to cut down on the number of firms it uses, according to people familiar with the matter. One executive suggests that smaller firms are likely to be more vulnerable as P&G seeks to further consolidate its ad business in an effort to save money.

P&G recently said it was continuing with a new approach to marketing in which it pulls together a team of experts culled from different ad and marketing companies to work on a given brand under one leader. It’s a process, dubbed internally “the brand franchise leadership model,” that P&G began slowly adopting in 2007.

P&G, like many marketers, has become frustrated with the lack of collaboration between its ad and marketing-services firms. Marketing services include in-store marketing and direct mail, among other functions.

The new approach is intended to eliminate turf wars. The company is hoping to foster collaboration among the people who create ads for TV and print and the other experts who do things such as research consumer behavior and design Web promotions.

“We are establishing a brand-agency-leader design that will simplify our business, lower our costs and improve capability by eliminating thousands of individual contracts and generating much more holistic advertising and marketing,” Mr. Lafley said last month at an investor conference in New York.

One executive close to P&G suggests that the company may ultimately try to reduce the number of ad-holding companies it deals with to two. It currently uses Paris-based Publicis Groupe, Dublin-based WPP Group and New York-based Omnicom Group.

Over the past few years, under Mr. Lafley and Jim Stengel, P&G’s former global marketing czar, the company expanded the number of firms it employed as it sought to bring more creativity to its marketing. For example, it added Wieden + Kennedy, the Portland Ore. firm known for its Nike campaigns, to its roster of ad shops in 2006.

Case study: A Facebook Campaign that Connected

Friday, May 29th, 2009

Article HIghlights:

  • Adobe wanted to increase awareness of its discounts for college students
  • The company created a game in Facebook that challenged users to spot doctored photos
  • The campaign also made use of Facebook engagement ads
  • Results surpassed all of Adobe’s expectations

In this age of transparency, it’s no secret that college kids aren’t big fans of brands that are “fake.” Most of the time, that is.

Last fall, Adobe, the maker of popular software titles such as Photoshop, Acrobat, and Flash, worked with interactive advertising agency Traction to create a social media engagement initiative. The core of the campaign was a game that asked fans of the Adobe Students page on Facebook whether they thought a series of images were “Real or Fake?”

And users responded, with more than 11,500 plays in the first two weeks — 6 percent of which culminated with the user clicking “Buy Now” for the product promoted on the final game page.

The challenge
The business problem Adobe was addressing was very clear: It wanted to increase awareness of Adobe discounts for college students. We wanted students to know that Adobe offers college students up to 80 percent off the full retail prices of the Creative Suite 4 products with Adobe Student Editions.

Adobe already understood the popularity of Facebook among college students and had established a company page on the network about a year earlier. The page had attracted 11,500 fans, but a static message and lack of interactivity did little to encourage return visitors.

To drive page traffic and overall awareness for the new pricing offer, Adobe and Traction set out in late 2008 to engage the student market with a more interactive user experience.

Real or fake?
Adobe products like Photoshop are great tools for modifying photos, so we created a game in Facebook called “Real or Fake?” Each week, five images were provided, and users were challenged to decide whether they were original photographs or whether they had been doctored. Of course, the entire game was designed and developed using Adobe Creative Suite products — Photoshop, Illustrator, and Adobe Flash.

Answer screens for the Photoshopped images included links to tutorials, which showed users how the effect was achieved using Adobe’s product.

At the end of the game, users were presented with a promotion for Adobe Creative Suite 4 Student Editions and a button to “Buy Now,” as well as options to “Play Again” and “Share” the game with their friends. In-game and end-of-game messaging further encouraged return play by letting users know that five new images would be posted each week.

The game was prominently featured on the Adobe Students Facebook page, and a discussion board post on the page encouraged users to share their scores and talk about the game.

In addition, during the first two weeks after launch, Adobe placed a Facebook engagement ad, which targeted students by major and demographic, linked to the game, and allowed users to become fans of the Adobe Students page directly within the ad.

The results
The campaign results surpassed all of Adobe’s expectations. “Real or Fake?” — which launched in November 2008 — ran for one month. During that time, the game was played more than 14,000 times, including 5,469 in the first week and 6,160 in the second.

During the first week, 40 percent of players returned to play again that same week, 22 percent checked out the tutorials, 6 percent clicked the “Share” button at the end of the game, and 6 percent clicked “Buy Now” at the end of the game.

The Adobe Students Facebook page also received 3,000 new fans and more than 53,000 page views that week, compared with an average of 5,057 views per week prior to the campaign.

Numbers also remained high in the second week, with 21 percent of players accessing the game tutorials, 4 percent sharing the game with friends, and another 6 percent clicking “Buy Now.” Week two also brought in an additional 2,500 new fans to the Adobe Students page and almost 50,000 additional page views.

Lessons learned
Engage, engage, engage. The Adobe Students page had featured the student pricing message for some time before the game was launched, but the engagement factor just wasn’t there. Having engaging content on the page was a way to bring students to the page and clearly communicate this, and to support the launch of the Adobe Student Editions. By deploying the application, Adobe not only generated new awareness for its offer but also introduced a fun, interactive feature to the page. The game itself was particularly effective because it captured user attention with an interaction that clearly demonstrated the value of the product.

We also crafted game-related messaging to appeal to the student population and draw users in, often challenging them with gritty wording — such as “Can you spot the real from the fake?” on its engagement ad and “Gotcha! This image is fake. Mother nature doesn’t do mohawks” on one of the puzzle answer pages.

We wanted to engage students where they are and in a way that they enjoy — not just push the product out to them. With any company, when you’re going out and trying to talk to a segment like students, who see through corporate-speak and deal with a lot of media, the challenge is how to be clever and still be true to the corporate brand. We were able to do both.

Use an integrated push strategy. Another key reason the game was successful was because we allowed one of our social ads to be dedicated to promoting the game. Simply launching an application does not guarantee engagement, no matter how cool the application.

Many companies spend a lot of money building the coolest widget, game, or application. However, if they don’t actively do something to drive traffic and awareness of it, then they are not likely to be successful. That was an important learning for us.

With so much competition for user attention on the Facebook network, it’s important to take a multi-pronged approach to let users know what you’ve put out there. For Adobe, this was achieved by using targeted ad placements in combination with key placement on the Adobe Student page, where the company already had around 11,500 fans.

Encourage return visits. Adobe was able to further increase engagement by giving users a reason to come back to the application each week. It ensured users knew that new images would be available each week by posting messages throughout the game. Having the ability to “share” was also critical to the campaign’s success.