Tag Archives: Groupon

Super Bowl Ads – The REAL Best and Worst – – and why

A week ago the impossible happened – a Super Bowl that was WAY more exciting than the ads.

Still, duty calls – – it’s taken a week to fully process the advertising train wreck but the result is worth the wait.

The Armchair MBA carefully analyzed the reviews of 10 respected entities (plus a timid peep from Harvard Business School), summarily ignored them and can now announce the REAL best and worst ads of 2018.

SB 2018 Montage

Super Bowl spots, in particular, need to stand out in a hyper-charged environment, create water cooler (social) chat to extend the brand, and ultimately move the brand forward.

Clicking on this chart will blow it up so you can see where everyone came out.

Included at no extra charge – charming, witty, pithy bons mots!  It’s so worth it!

Super Bowl 2018 ads

We generally subscribe to the ADPLAN evaluation system set up by the Kellogg Graduate School of Management (Attention, Distinction, Positioning, Linkage, Amplification and Net Equity).

Tide

First, a few general observations:

  • When everyone does anthemic feel-good ads to set themselves apart from the competition, everyone starts looking the same.  In some cases I was moved almost to tears and had no idea which brand I should hug.
  • I have a dream that in the future, companies won’t feel compelled to stretch to co-opt (read: exploit) a universal good (cancer research, disaster relief, first responders, and BABIES!) to draw attention. Winner (loser) by a long shot in this category – – Ram Trucks.
  • LCD humor apparently remains a reliable go-to for advertisers (see: Febreze, M&Ms).
  • Not as many animals this year (no Clydesdales, Doberhuahua or Puppymonkeybaby), BUT we still had more than enough with Yellow Tail’s ‘Roo, TurboTax’s monster under the bed…and Steven Tyler.
  • Personality counts a LOT! Morgan Freeman continues to define ‘Maximum Possible Q Score’, Peyton Manning is a reservoir of humor and credibility (especially since the divorce from Papa John), and Eli, he of the permanently blank expression, will always be the little brother.

Selected Best Ads

  • Echo (Amazon) – – witty, creative, great cameos, and the product is the whole point
  • Doritos/Mtn Dew — great pairing, both products and performers, with a high fun factor
  • US Olympic Committee – – in the grand tradition of Up Close and Personal, terrific effort at personalizing the competitors (particularly important in light of current controversies).  Incorporating childhood photo/video a big plus.
  • Tourism Australia – – in a head-fake worthy of Doug Pederson, grabs your attention and keeps it
  • Tide (It’s a Tide Ad) – – P&G threw a long ball with several executions of this campaign spoofing other campaigns (see above), and scored. The premise of ‘if it’s clean, it must be Tide’ could not be more spot-on (pun intended)
  • Rocket Mortgage – – humorous, relatable, and highly relevant to the product
  • Sprint – – a bunch of robots who make the logic work, and then crack wise, make it a strong spot

Selected Stinkers

  • Ram Trucks – – #1 stinkeroo. Someone thought it would be a good idea to use the words of MLK Jr. to elevate…a truck. Shame on Ram Trucks, and shame on the MLK family, for that matter.
  • Squarespace – -in a way, they’ve become sort of a reliable companion in the stinker category.  This year, we had Keanu Reaves riding a motorcycle standing up and…pontificating.
  • T-Mobile – – a high-concept ad which pans over a multitude of infants, and unsuccessfully tries to make some sort of connection to the product. Creepy.
  • Febreze – – ironically in the stinkeroo category. Maybe the man’s *** don’t stink – -but that doesn’t mean the copy is something you want to be around
  • NFL – – I’m apparently a voice in the wilderness here. Most people found the Eli/Odell pas de deux a charming play off the iconic Dirty Dancing scene. I just thought it was forced, clumsy and unfunny.  Plus, not sure what the message was.

Maybe like the E*Trade commercial says, I’m just getting old.

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The Final Mile is The Toughest

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One of the great things about online shopping has been the free shipping, often via retailer promotions (‘free shipping over $50’) or programs like Amazon Prime.

Isn’t it terrific?  You can be prancing around doing whatever one does when one prances, and should a random thought pop into your head like “man, I really need a Teflon fly-swatter”, you can just go online, order it, and before you know it, like Bugs Bunny waiting at the mailbox for his order from Acme, a Teflon fly-swatter arrives at your doorstep, typically in a box big enough to hold a microwave oven.

Screen Shot 2014-05-13 at 11.25.58 AM

Long Haired Hare (1949)

Well, you may want to get your impulse shopping Jones satisfied now, because the sad news is that free shipping as we know it is likely to be changing.  Reality bites.

This past week FedEx announced it was changing its freight policy to include not only weight, but also the dimensions of the shipped product.  This will result in increased shipping costs on about 1/3 of items, particularly large but lightweight products (e.g. toilet paper) that fill up trucks or planes but don’t represent as much revenue (or profit).

Similarly, Groupon, which also sells a few things from time to time, has increased its free shipping threshold from $20 to $25.

Why the changes?  Well, the short answer is that you can’t download stuff you order online.

Amazon might have the most amazing distribution centers, but stuff still has to be shipped with pre-internet technology like TRUCKS and AIRPLANES and HUMANS.  And the cost of fuel of all of these mechanisms is going up, as are fees, taxes and everything else.  Like a bridge that goes 99% across a river, that final 1% really makes or breaks the whole program.
– there are related impacts as well:  retailers will likely now need to stock more box sizes (to reduce over-sizing), which carries inventory costs.

overpackaging

SO – someone has to pay for these increased costs.  And ultimately you know who that is:  you and me.

It’s well known that there’s a high rate of cart abandonment – by one measure about 65% – -and that 44% of these are due to high shipping costs. (cool infographic here).  So retailers are loathe to add or increase shipping charges.

Shopping Cart

What is likely to happen is that costs will be increased throughout the system, for example:
– Shippers like FedEx incorporating package dimensions to increase fees (and UPS likely to follow)
– Retailers raising thresholds for free shipping (like Groupon)
– Retailers increasing prices in other ways (Amazon Prime going from $79 to $99)
– And plain old increased costs of merchandise to cover shipping

There will very likely be increased use of shipping as a promotional tool, but over time costs will inevitably need to increase.  There’s just not enough profit in the system right now.

Until some equilibrium is reached, however, you may still notice overt signs of covering costs – – like $50 for a $2.50 order of screws (actual cart total – – and yes, it was abandoned).  So keep your eye on the ‘shipping cost’ line for the time being.

Screwed!