Archive for May, 2008

40% Jump in Profits Indicates that spending your advertising/media budget on improving your product and experience delivers better ROI than advertising

By shunning TV, Gap looks to turn itself around.

The brand once known for its peppy, elaborate commercials has struggled in recent years to attract consumers in an increasingly competitive retail environment. But now that it's shelved TV advertising — the brand has been off the airwaves for several quarters — and is focusing on merchandising initiatives, Gap seems to be on the right financial track.

Marketing expenditure at Gap Inc. was trimmed 18% during the quarter, driven by the absence of TV ads for the Gap brand, company executives said. That contributed to a 40% jump in profits at Gap Inc., compared to the same period a year ago.

"At Gap brand … they are on a journey," Gap Inc. Chairman-CEO Glenn Murphy said during a conference call with analysts last week. "They are moving the brand in the right direction, and we are delivering on driving our healthier margin dollars."

The move revives the old argument of whether it's wiser for a troubled company to spend on advertising or hunker down to protect the bottom line — one all the more vociferous today given the state of the economy.

Reducing adspend has not hurt like for like sales YOY which only fell 7% while Old Navy (who is still advertising) fell 18%. Gap reports a 40% boot in profitability, compared to JC Penney (down 50%), Kohl's (down 27%) and Macy's, which posted a $59 million loss

Full article here

Conclusion: GAP is following in the path of Jeff Bezos, who's own test for Amazon revealed that using their ad/media budget gave better return when used to subsidise shipping (ie reducing the cost of the product)

 

Were they retouched …. weren’t they retouched? 

Long post, so’ll put my conclusion here:

 I guess we’ll never know the real truth – I certainly would like to believe that they were not touched up and the campaign still has authenticity.

What is easy to see from this though, is the level of distrust there is. We all so quickly accepted (and some people continue believe) that we were lied to, and that when that is so contrary to the brands position the news, fueled by indignation spreads like wildfire … maybe this is the real lesson.

Post:

Ogilvy and the Dove have come out on the offensive to defend their campaign – AdAge prints a piece 2 days after the original with their counter claim  “Marketer and Celeb Photographer Deny Reports of Retouched Images for Campaign”    reads the headline.

And John Bell, who heads up Ogilvy PR’s latest interactive discipline designed to manage brands – The 360° Digital Influence team – drops a comment on my blog

Simply put – you have it all wrong.
The photos were not retouched. The brand came out with a clear statement about it ableit a little late for the speed of our digital world.
http://adage.com/article?article_id=126945
Be careful not to be too quick to jump on the bandwagon ultimately fueled by trade press' need to sell papers. While I did not work on the Dove campaign, I strongly believe their heart and their practice was firmly where it needed to be – challenging the media's portrayal of women's beauty. As a father of a "beautiful" 10 year old daughter, I am grateful for what a traditional advertiser did to challenge status quo".

Having had the opportunity to chat with John in the past I am sure that he is genuine – and this is not simple PR Spin.

 But the debate rages on … and in fact grows more complex.

James Danziger who runs a New York Gallery – Daniger Project – writes on his blog that there is some confusion over who shot the images in question. He also claims that The New Yorker is standing by its article

These, according to him are the images shot by Leibovitz

Dove by Leibovitz

Dove by Leibovitz 2

Dove by Leibovitz 3

And these images – more widely used – were shot by a British photographer Ranklin.

Dove by rankin

Dove’s full press releases (below)

Statement from Dove about The New Yorker Article

Dove's mission is to make more women feel beautiful every day by widening the definition of beauty and inspiring them to take great care of themselves. Dove strives to portray women by accurately depicting their shape, size, skin color and age.

The "real women" ad referenced in recent media coverage was created and produced entirely by Ogilvy, the Dove brand's advertising agency, from start to finish and the women's bodies were not digitally altered.
Pascal Dangin worked with photographer Annie Leibovitz (Ogilvy has never employed Mr. Dangin on the Dove Campaign for Real Beauty), who did the photography for the launch of the Dove ProAge campaign, a new campaign within the Campaign for Real Beauty. There was an understanding between Dove and Ms. Leibovitz that the photos would not be retouched – the only actions taken were the removal of dust from the film and minor color correction.

"Let's be perfectly clear — Pascal does all kinds of work – but he is primarily a printer – and only does retouching when asked to. The idea for Dove was very clear at the beginning. There was to be NO retouching and there was not," confirmed Annie Leibovitz, commenting on the ProAge campaign.
Mr. Dangin responded, "The recent article published by The New Yorker incorrectly implies that I retouched the images in connection with the Dove "real women" ad. I only worked on the Dove ProAge campaign taken by Annie Leibovitz and was directed only to remove dust and do color correction — both the integrity of the photographs and the women's natural beauty were maintained."

 

Conference Speaking Pack

13.05.2008

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Biography



Ian is CEO and chief strategist for Vocanic, a company that specialises in Identifying Influencers and crafting strategies to engage and activate them to launch word of mouth, and Social Media campaigns for clients such as Heineken, StarHub, Discovery, Top Shop, Nokia, Symantec, Adobe and others


Prior to Vocanic, Ian was MD for Informative Asia Pacific working on customer dialogue and Influence marketing projects for brands such as Zuji, DBS Bank, HP, Nokia, BP, and Mars brands such as Cesar, Pedigree, Starburst, M&Ms and others.


Originally from the UK, Ian has called Singapore home for the last 13 years.


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Dove_lies Ogilvy and Mather has earned many a plaudit for the thinking behind Dove ‘s Campaign for real Beauty.   

And kudos too to the brand owners Unilever for going with the contrarian position.

BUT now it seems that the whole thing lacked true authenticity. And consumers have been lied to again.

Those images of supposedly real women had been extensively retouched to make them “poster ready”  attractive. 

Advertising Age  reports that Pascal Dangin, master retoucher (I think poseur speak for DI artist) in an interview with the New Yorker , spills the beans that they had been heavily “improved”

"I mentioned the Dove ad campaign that proudly featured lumpier-than-usual ‘real women’ in their undergarments," wrote Lauren Collins in the New Yorker article. "It turned out that it was a Dangin job. ‘Do you know how much retouching was on that?’ he asked. ‘But it was great to do, a challenge, to keep everyone’s skin and faces showing the mileage but not looking unattractive.’"

What a pity the brand could not truly embrace the position and that O&M actually simply did more of the same by serving up retouched unreal images to sell a product.

Just watch for the backlash from duped consumers who feel let down by a brand that did not walk the talk.

Look at it this way

Conversion = reach x trust x some constant factor you cant change ie:

No reach – no one know about you, no sales
No trust – no one believes in your product/brand, no sales

Reach is expensive – and getting more so every year
Trust is free, always has been, always will be …… (but you have to earn it rather than buy it)

With fixed marketing budgets the only way to make the reach you can afford work harder, and the most durable thing to invest in, is trust.

Look at these figures – trust comes from “other people like us” – so getting them to recommend your brand can be the best thing you can do to lift the results (ROI) of your ATL

Trust_of_peers

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