UPDATE on Post #1

This morning, the LA Times posted a story entitled "Business Struggle to Turn Facebook Ads Into Higher Sales".

Read it here.

Post #2: Brands That Breathe

Apple- "Hi, I'm a Mac"

In 2007, Apple began airing a series of 30-second television ads that were perhaps its most underrated innovation. Several of these ads are featured above. The brief spots feature two actors who personify a Mac and a PC. The Mac character, played by Justin Long, has all the features that Apple wants its users to associate with its products: youthfulness, wit, and confidence. The PC character, played by John Hodgman, is boring, businesslike, and insecure.

This campaign was extremely effective in fostering an unrivaled degree of loyalty in Apple customers, and added tremendously to the brand's value as a whole.

It would be very difficult to argue that the Apple brand is not a Lovemark for consumers all over the world. Consumers connect with the brand on a deep emotional level, as evidenced by the fervor caused by each new product launch. Given its breathtaking lineup of innovative, high-quality products, it is no surprise that Apple is successful. The campaign featured above, however, has created the type of "loyalty beyond reason" which has allowed Apple to distance itself from competitors and become one of the most successful companies in human history.

By giving their products a face and personality, Apple has tapped into its consumers' desire for a company that they can see and hear and talk to. Instead of focusing on product attributes, this campaign urged users to fall in love with their computers.

While the "Hi, I'm a Mac" campaign was technically a marketing campaign for iMacs and MacBooks, the ads endeared millions of consumers to the entire brand. Soon after, Apple was able to use that brand equity as leverage in its wildly successful launch of the iPad 1. Droves of Apple fanatics, who were undeniably "loyal beyond reason", flocked to Apple stores around the world, clamoring for the product which many consider to be the crowning achievement of Steve Jobs' unbelievable career.

The impact of this campaign extended well beyond the walls of Apple's Cupertino, CA headquarters. Many companies operating in other "black box" industries, such as insurance and telecommunications, quickly launched their own ad campaigns aimed at creating emotional connections with consumers.

Of these companies, the most notable (and relevant to this discussion), was Microsoft. The first ad shown below is a part of the "I'm a PC" campaign, which was a direct response to Apple's "I'm a Mac" campaign. Although Microsoft's attempts to humanize its offering were encouraging, the company could not bring itself to completely abandon its roots. The "My Idea" campaign for Windows 7, which ran around the same time that the "I'm a PC" ads originally aired, were certainly friendlier that past Windows ads, but still focused on technical capabilities of the operating system.

Microsoft- "I'm a PC"

Microsoft (Windows 7)- "My Idea"

As I noted above, many other companies soon rolled out ads that personified their respective brands. A few examples include Verizon Wireless, Progressive, and AllState.

Overall, the move to this form of advertising suggests that firms have begun to accept the realities of the Attraction Economy, and are doing everything in their power to maintain a competitive advantage.

Post #1: Facebook Advertising

Just days before launching its $19 billion IPO, Facebook was hit with shocking news: auto giant General Motors would be pulling all Facebook advertising immediately [You can read the full story at Reuters]. As investors anxiously gathered capital for Facebook's impending launch, the move by GM led many analysts to question the Facebook's long-term viability. Facebook relies heavily on advertising, and could disappoint a lot of investors if the ripple effect of GM's exit is large enough.

The question remains: Is Facebook advertising effective?

Let's take a look at a few Facebook advertisements. The image below depicts several examples of Facebook sidebar advertisements.

Do these ads look appealing to you? In my mind, they all look like scams. In my opinion, this "scam effect" is what limits the value of Facebook sidebar advertising in its present form. Every firm, from Apple to Joe Schmo's Hardware Shack, receives an identical ad placement and configuration. Because every firm is granted an identical thumbnail-and-two-sentences format, consumers who briefly glance over ads fail to differentiate between them. 

To put this principle in perspective, consider the following example. Imagine that you are paging through everyone's favorite street paper, The Onion. You flip to the back page, where you are hit with a barrage of advertisements for dive bars, fortune-telling hotlines, rummage sales and garage-rock concerts. You miss it on first glance, but upon closer inspection you notice that, nestled inside this circus-like collage of absurdity is an advertisement for the Capital Grille. The ad simply state's that on Friday night, the restaurant will be serving food prepared by world-famous chef Mario Batali. Despite its wonderful, authentic message, doesn't it seem like such an ad placed in such a setting fails to effectively convey its message? 

The same effect is visible in Facebook advertising. The very first time users notice the sidebar advertisements, their interest is piqued. They read each one, hoping to find exciting offers perfectly tailored to their individual tastes. After 2 or 3 times, however, users soon realize that most of the ads on their screen are irrelevant, untrustworthy, or both. Soon, they subconsciously develop the habit of ignoring ALL the side ads and focusing solely on their profiles and time lines. This leads to low click-through volume and even lower sales per click, which may have ultimately led GM to retract its Facebook advertising investment.

So I ask you, fellow classmates and aspiring marketers. Is Facebook advertising and effective use of Advertising dollars?

I look forward to reading your comments and discussing this further.

Ciao.

Welcome to my blog for ADPR 1400, Principles of Advertising. I am excited to begin learning about the thought process that goes into the swirling mass of sights and sounds known as modern advertising. I am looking forward to explored the way that advertising and society simultaneously influence each other. I will do all that I can to keep this blog fresh and interesting.

For now, enjoy KRS-ONE and the homie Lupe Fiasco in this Nike Christmas cut from 2009.