TV Viewership is Changing in Hampton Roads

Is your ad strategy on course?

If you’re a business in Hampton Roads weighing your advertising options, traditional TV (broadcast and cable) continues to provide huge reach and impact. But how people consume various media, and more importantly how their video viewing habits are shifting, is essential for you to know to effectively plan where your advertising dollars should be spent.

Microsoft Word - proofed_TV Viewership is Changing in Hampton Ro

Nielsen numbers show that US consumers still watch over four hours of traditional (Nielsen calls it “live”) TV every day. But that number has dropped from four hours and 29 minutes per day in 2013 to four hours and 11 minutes over the past two years. The pace is precipitous and consistent. The amount of DVR viewing has held pretty steady, but the amount of time spent on smartphones has nearly doubled.

Three very important points to keep in mind here:

  1. The shift to online/streaming viewing is generationally driven. A recent report from ABC showed that 28% of TV watched during prime time by 18-34-year-olds is online streaming or video on demand, compared to 11% for those age 25-54. Microsoft Word - proofed_TV Viewership is Changing in Hampton Ro
  2. This shift will accelerate. Smartphones are already in the hands of 80% of US consumers, but the lion’s share of mobile online TV is viewed by only 20% of those folks. This is not an “80-20” rule that will stand. As network apps and “TV anywhere” gain awareness, that number will experience a hockey-stick effect. Add to that the fact that nearly 60% of households now have an Internet-connected TV, and the opportunities to stream video skyrocket.
  3. These are no longer individually unique media consumption behaviors. People don’t consume one medium at a time. Look around in a restaurant, airport, doctor’s office—or your own family room. Who is looking up, and who is looking down at their mobile device? Nielsen reports that 84% of smartphone and tablet owners use those devices while they’re watching TV. YOU NEED TO BE IN BOTH PLACES.

The graphs here are published data from Nielsen’s “Total Audience Report.” It’s a great deep dive to understand what’s going on in the world of media consumption. But to help understand what’s happening, and what will happen with TV viewership locally, I reached out to some local media experts for insight.

The bulk of ad spending for local broadcasters and cable still ties to traditional TV advertising: :05-:60 spots inserted into linear broadcast (that includes cable) programs. And, of course, the stakeholders feel that will continue. “Local newscasts (including weather, traffic and high school/college sports) remain some of the highest-viewed programming on local broadcast televisions in any market.” Says Doug Davis, president and CEO of WAVY. “Newscasts provide a daily, engaged viewer for local advertisers…a viewer who is watching the news…not DVRing it.”

Kari Jacobs, WVEC president and GM, agrees. “I believe TV viewing will remain strong largely due to locally produced news, live sports and big events (e.g., the Oscars). It will be interesting to see which (streaming) delivery methods (Netflix, Roku, etc.) will excel.”

But Gordon Borrell, CEO and president of Borrell and Associates and nationally recognized expert on local market media trends, is a bit more pragmatic. “The fact is, people are watching more ‘video’ than ever, but it’s the old model—broadcast TV—that’s in trouble. I wouldn’t recommend that a TV advertiser necessarily cut back TV. Rather, I think an advertiser needs to determine the appropriate mix of media available today that is needed to support whatever promotion they have at the moment.”

Local broadcasters, as well as Cox, have long offered digital advertising packages and online content to help you diversify your media mix and reach their viewers online. “We certainly recognize the impact digital has on traditional viewing patterns,” Jacobs adds, “and our digital options for content and advertising options reflect this change and will continue to evolve.”

But with the shift to streaming and on-demand viewing through Internet-connected devices, advertisers are clamoring for a way to measure their text boxvideo advertising investment that makes sense online and offline. That shift is underway. Sharon Fanto, vice-president of Cox Media, explains. “Most [advertisers] want to measure how they reach consumers with a metric of impressions rather than simply gross rating points (GRPs). Those impressions are found on multiple screens across multiple devices, which makes sense since consumers are spending more time with video on multiple devices. Our focus has to continue to be making it easier for our clients to reach consumers wherever they are, on whatever device they are using.”

This shift in planning and measurement from GRPs to impressions, cost-per-impression, and ultimately cost-per-conversion (sale) tied to your impressions are what ultimately open the door for effective cross-platform planning. Hopefully, all media reps, planners and buyers are headed in this direction because digital advertising options will drive it.

An impressions-based video strategy can level the playing field in comparing costs for reaching TV viewers in a mass broadcast audience vs. an individually targeted and streamed insertion online. Add to that the efficiency that real-time bidding (the ability to set budget limits on how much you are willing to pay for each individual impression) online can bring, and you have the ability to make your video advertising achieve results that you could never afford in a broadcast-only world.

Your online-to-broadcast mix percentage will vary based on your objectives as well. In Borrell’s words, “TV is the number one medium for branding. No one can touch it.” But if your goal is to drive online engagement, having at least a companion digital video strategy is vital. The Virginia Dental Association, in a statewide campaign that has been running for the past three years, has been able to increase traffic to a targeted page from 200 page views a month to over 500 A DAY by integrating a targeted digital video campaign. That’s how effective it can be.

Bottom lines:

1. If you are a local advertiser whose ad strategy is heavily leveraged in TV, and you are not already consistently and diligently deploying a SIGNIFICANT online video component to your strategy, you are behind the times.

2. If you’re are a local business that has not been able to afford TV advertising because of budget or geographic scope, you could be losing ground to competitors who have learned to geographically and demographically target video messages online to your prospects and customers.

Video advertising is king. It carries more emotion and credibility than any other medium. Consumers will find it wherever they go. More and more, they are going online with devices in hand. Your media mix needs to recognize that.

Outdoor Stands the Test of Time

Outdoor stands the test of time–and technology.pic4

Billboard, the most well known facet of out-of-home (OOH) advertising, has long had a bad rap in Hampton Roads. Many communities have enacted and currently enforce strict signage regulations that severely limit the number of locations and their availability. Still, even with the seismic shifts in media consumption brought on by untethered Internet access, OOH remains an impactful and efficient medium for location-based and brand messaging. As more boards convert to digital signage, the limited space can accommodate more total advertisers in rotation. The future of buying that digital space – in fact, all OOH – will continue to get caught in the wave of technology change that is programmatic planning and buying, but that is a topic for a future conversation.

To get a broader perspective, I reached out to Rob Smithwick, VP of OOH media strategy for EMC Outdoor, to answer a few questions about the comparative state of OOH in our market.

Q: How does Hampton Roads compare with other markets its size relative to billboard saturation?

A: Hampton Roads struggles with billboard coverage in its largest cities: Virginia Beach (containing about one-third of the market’s population), Chesapeake and Hampton. These cities’ laws governing locations are so strict that finding approved and available locations to build on is very difficult.  Many years ago, Virginia Beach created laws to remove all boards through attrition. As time passed, and roads were widened, boards were lost forever.  What good locations do exist in these cities are expensive due to demand. Coverage is “good” in comparison to other markets / cities in Norfolk, Portsmouth, Newport News and Suffolk.

Q: What does the conversion to digital signage look like?

A: The space owners have converted their BEST locations to digital, just like they did when Trivisions were the newest option (mechanical, three-sided, rotating faces).  Those “best” locations provide more advertisers the ability to reach their targeted traffic / demographic by offering up to eight “spots” per complete rotation. Each spot stays up for eight seconds as a national average, in most cases nationally.  Some space owners run six advertisers at 10 seconds each. Both would allow each ad to be seen about once per minute.

Q: What percent of boards are digital?Kathryn Moore, Media Director for Seventh

A: On a percentage basis, the number of digitals may seem low, but keep in mind that the space owners are only converting those boards with the highest client demand and traffic, so their impression counts are good.  In Hampton Roads, about 4% of the total number of boards are digital. That percentage will certainly grow over time.  The cost of the construction and installation of digital faces is coming down with the national demand.

Q: What has that meant to the industry?  What should advertisers expect in terms of cost/exposure with digital v. static boards?

A: Digitals have basically expanded the quantity of “faces” in the best locations. There are no production or installation charges; you can change creative throughout each day, week, 4-week period or day-part, and much more. In my opinion, there are downsides.  You now share that space with other advertisers, so your Impressions are lower than buying a comparable static board, because of the increased number of advertisers. Additionally, the space owners have determined that they can charge a premium for each “turn” on each board.  While it is less than buying its static neighbor, per 4-week period, it is not one-sixth or one-eighth of the rate. If a static face in the same area has a cost of $8,000 per period, one digital turn, with the same traffic, would likely be $4,000 to $5,000 per period.

Q:  Any comment on overall spend – up or down here, and here vs. nationwide?

A: BilWonder what your billboard design wouldlboards in Hampton Roads are about 15% more expensive than other comparable markets, and evenly placed coverage is a struggle. You have to buy a little deeper (or more boards) to achieve your TRPs.  That is why we offer alternatives like trucksides, gas pump tops and transit in Hampton Roads, and other markets with similar challenges.

Q: Anything different about outdoor here that advertisers, big or small, need to know and be aware of in planning their advertising?

A: There are good billboard opportunities to be found.  Like most businesses, occupancy drives rate, so checking on availability often, buying at the right time and finding the best locations to reach your target audience is key. Don’t buy boards that you, your family and friends see.  Buy boards that your POTENTIAL CUSTOMERS see. Keep your target in mind.  Leave your ego out of advertising. Again, considering other Outdoor Media options may be helpful, and there are many in Hampton Roads.  Most advertisers stop at Billboards.


Bottom line, as a part of an integrated strategy, OOH is a traditional medium that bears strong consideration in your media mix. Digital conversions should continue to help provide inventory relief. While not comprehensive, these maps will give you a good feel for locations across the market.

Hampton Roads Poster Map-EMC

Hampton Roads Digital Map-EMCHampton Roads Bulletin Map-EMC(1)

You’re gonna see an ad anyway,

 it might as well be something you like…Marketing Hampton Roads

One big debate these days in advertising circles (of course there are many) revolves around privacy, and just how much we as advertisers know about our prospective targets.’s recent wishy-washiness about sharing consumer privacy information helped fuel the conversation. While I’m not a fan of privacy invasion or over-the-top hacking and snooping, I do fall firmly on the side of the statement above. I know I’m going to see ads on websites, in apps, in TV programs and ahead of that tile-grouting video I just searched for. My sense is, it might as well be an ad for something I give a hoot about as opposed to something totally unrelated to my world. In fact, for me, the more relevant the better. And that’s exactly how it’s supposed to work.

 Three ways to see who’s watching you online.

If you’ve ever wondered who’s watching you, or who knows what about you, it’s not hard to get a good view. Just about everywhere you go online…no matter what platform…you’re picking up cookies or in some way leaving a trail of data. Here are three ways to get a glimpse of when someone’s watching and who knows what:

1.)      Website trackers

Ever wonder who’s lurking behind the browser? Who’s warehousing data every time you mouse over a picture or click a link? Fly over to Ghostery and click on the button that says “Add to (whichever browser you’re using).” After you do you’ll be treated to a magical looking-glass on each page that looks something like this:Ghostery

The list will change from page to page and site to site, but it shows you who the data aggregators are that have placed pixels and are collecting data on that page, as well as the ad exchanges and traders that are serving ads on that site. Clear your cookies if you want, but every time you come back they will still be there. Your only choice in thwarting them is to block cookies…but remember, you’re gonna see an ad anyway…

2.) What Facebook thinks of you

Those guys at Facebook are so smart, and transparent, that if you want to know why you’re seeing a certain ad, all you have to do is ask. Not only that, if you’re not seeing what you want, you can actually add to your preference list. Here’s how:

a.     When you see an ad on Facebook, hold your mouse over the upper right hand corner until an X appears. Click on it, then click on “Why am I seeing this?” Another box will pop up with the answer. Could be you’re the right demo. Could be you like to do certain things or go certain places. Or it could be a lot vaguer, like “this company wants to reach people like you.”

b.     Within the second box, click on “Manage my preferences.” Within the box that opens you can see everything Facebook thinks it knows about you relative to the ads you see. Click on each content area to see individual data tags relative to your content, profile or activities within the site. Some of it will be dead wrong, some right on the money.

c.      If you think Facebook has it wrong, or is missing some things, you can actually customize this profile. You can delete individual preferences, or, at the top of the page is a box that allows you to add preferences. In fact, you can do this whole exercise on practically any ad on any website. Click on the arrow or box in the upper right corner of an ad, then look for the link to manage your preferences. Rather see ads about Disneyworld? The NFL? Here’s your chance. Because remember, you’re gonna see an ad anyway…

3.)   What the Shadow knows

On the creepier side, try out the Digital Shadow and let it build your virtual profile. The site, which is really a clever app built by Ubisoft to market the game Watchdogs, lets you log in using Facebook and then builds a rather eerie, contrived picture of you and your life using your profile data. With claims like, “We know who you are,” “We know who you care about,” “We know how to find you” or “We know what you’re worth,” you can’t help but feel paranoid. If you’re like me, you’ll find quite a bit of it laughable (yeah, try looking for me in the Bahamas). But the idea of getting a glimpse at how data trackers may see you is interesting.

Bottom line is that advertising will continue to become, more and more, a technical business. As an advertiser, you want to know as much about your potential customer as possible. Data trackers and online profiles help you do that, help make the online user experience more relevant, and I believe make it more efficient for all of us. So go ahead, serve me ads for SCUBA diving and sport fishing off of Freeport. Because, hey, I’m gonna see an ad anyway…

Will Your Customers Unlock the Door?

There are 728,800 potential problems every day in Hampton Roads.

Market a message of trust and deliver on it.

A man at your door with a van in your driveway. If you’re the consumer, as a marketer I know two things about you for sure: 1) you have a problem, and
creepy Guy With Shirt2) the biggest decision you will make is whether or not you are willing to open the door. If you’re a marketer in the home services category, everything involved with your marketing strategy and your advertising campaign has to deal with these two fundamental precepts.

The sheer amount of advertising weight aimed at this category would seem to indicate that a huge chunk of the 1.5 million adults living in 728,800 households across Hampton Roads must have a problem every day. The most popular broadcast-media dayparts in particular are chock full of HVAC, plumbing, pest control, kitchen remodeling, carpet cleaning (name your favorite problem) spots every day.

A man (OK, could well be a woman…I didn’t create the category name) at your door with a van in your driveway. Really, by the time the van is in your driveway, you’re most likely going to open the door. The decision was essentially made prior to or during the phone call you made to the company. According to Bill Day (@Bill_Day_) with consumer research company Frank N. Magid Associates, whether you will be comfortable opening the door and letting this company, or person, in your house is the first and most emotional decision you will make. The marketer and the business owner must project and establish a level of trust. When the consumer has a problem, he or she will make a decision to invite that company to his or her home based on an existing perception of trust for the company or brand.

That relationship, an urgent response based on brand perception, is at the core of why a company like Michael and Son, one of our market’s most persistent promoters, spends so heavily and so consistently. I talked with Eiman Bassam, founder of ESB Advertising based in Northern Virginia, and agency of record for Michael and Son. “We don’t know when someone will need us, so we have to stay top of mind,” Bassam said. For that reason, it doesn’t do any good for the company to focus on specials or sales.

“Price,” Day said, “is one of the least effective tactics for convincing consumers.” Magid’s Advertising Performance Research — a series of dozens of local studies done on markets from coast to coast with local consumers — bears out the most important attributes of advertising for this category:

What you say.

How you say it.

Where you say it.

“And production quality counts,” Day added. “Being your company’s own TV spokesperson is not for everyone.” Without naming names, I believe we have some in our market that could be putting themselves at a disadvantage on this point. It’s not hard to test commercials in a focus-group setting.

What you say, and how you say it.

Make no mistake, this is a business category driven by marketing. Think of 728,800 households with potential problems; the best marketer is going to win here. For a company that’s not based here and has only been operating here for about three years, I believe Bassam and Michael and Son have a winning formula. Maybe you didn’t know that Michael and Son isn’t locally owned. That “and Son” in the name makes it sound small-biz and local-yocal. The brand imagery and truck design is not over the top, and the advertising is well produced for the category but not expensive in look or feel. And even a highly recognizable voice talent, unique in sound, conjures an image of a helpful office person as opposed to a professional announcer. “Absolutely that’s on purpose,” Bassam said when I asked. “We have to look local from afar. When 70% of the decision-makers are women, we know we have to be trustworthy.” And consider the jingle/slogan, “If you can’t, we can.” Well at least they give me credit for trying.

Where you say it.

The most recognizable and the largest service-industry companies are fairly visible in traditional channels: @123bugfree, @MichaelandSon, @OneHourVirginia, @RSAndrewsinc, @VB_Plumbing (Atomic), and others. And most in the category spend a considerable amount on search marketing, which is necessary. But 2015 marks the point when advertisers will be spending more in online video and display marketing than search due to the advanced-targeting capabilities that behavioral data-tracking, ad exchanges and real-time bidding bring.

If you own or operate a business in this category, you should be considering what a more profound digital strategy could do. TV works well aDigital Advertisingnd will continue to work well in driving brand awareness. Not all players in this category can afford TV, but those who do should be looking to align their messages across all screens — TV, PC, tablet, and mobile. New data and technology advancements make that very possible and effective. If your budget doesn’t place you on TV, it’s even more important that you learn about new online-targeting tactics that can raise visibility of your brand. These advancements make it more efficient than ever to be top of mind for the right target.

So will the consumer unlock the door? It’s a matter of trust. Trust in you, and in what, how, and when you say it. And it all makes the assumption that the man (or the woman) at the door doesn’t look like Freddy Krueger.

If you have questions about anything in this article, feel free to post or contact me at

Creating Demand

 How to gross people out and keep mattresses moving in Hampton Roads

I’ve often wondered just how many mattress stores a town needs. Seems more and more like mattress stores in Hampton Roads are competing with Starbucks and 7-Eleven for the title of “most stores per capita.”

Mattress Firm, which bought the locally owned Mattress Discounters stores in 2010, now lists 28 stores across the metro area and nearly 1,500 across the US. Sleepy’s took the market by storm starting in 2011 and now lists 21 stores across the DMA. The firm, which has over 900 stores, mostly in the northeast, purchased the Mattress Discounters chain (separate from the locally owned company) from RoomStore in 2012.Advertising with fear

Add to that a half-dozen Original Mattress Factory stores and large and small furniture retailers along with several other outlets and you’ve got a mattress dealer on every corner. So what drives all of this demand?

If you’re Mattress Firm, you don’t wait around until people are ready to buy. You create the demand. You tell them when and why they should buy their next mattress, even if the message gets a little scary, creepy or gross.

The execution of “Replace Every Eight” is the Mattress Firmperfect example of creating FUD (fear, uncertainty and doubt) in the marketplace and stimulating sales. People who buy a mattress with a 10- or 15-year guarantee expect the mattress to last that long, but hit them with a message that says your mattress is soaked in “gallons of sweat, pounds of dead skin and millions of dust mites” and they might just replace their mattress sooner. Eeeww.

Most mattress advertising centers around getting a better night’s sleep, which is the top reason people replace their mattress, according to the National Sleep Foundation. Consumer Reports recommends changing every five to 10 years, and The Better Sleep Council (BSC) says every five to seven years. So replacing a mattress every eight years, as a benchmark, probably isn’t so far-fetched. But now I’m only worried about sleeping better (the number one reason the BSC says five to seven years). Mattress Firm’s creative team found the happy middle ground to capitalize on a great (no pun intended) alliteration opportunity. All that gross stuff will accumulate(8), so don’t procrastinate(8). Cute and clever.

But scary. Scary is motivation. It carries across media channels, it sticks in your brain: eight years’ worth of dust mites crawling around chewing on pounds of … well, you get the picture. FUD is a powerful, effective advertising tool (no product does this better than mouthwash). In many cases it’s based on fiction, not science or reality. So good for Mattress Firm in this case to at least have some real advocates to lean on.

TV Advertsing Postage Stamp

Hampton Roads–Is your TV advertising losing its edge(s)?

Make sure your spots are running as you expect.

Quick disclaimer: This is one of those posts with the true intention of helping all parties. High definition TVs have become mainstream, but merging all of the technologies involved means that sometimes commercials aren’t running as designed. Everyone involved wants the best result every time. More eyes, and more awareness will help.

Read on.

Here’s the quick math from Nielsen: 718,930 TV Households in Hampton Roads. Around 75% of those households have at least one TV that’s high-definition enabled (widescreen, 16:9 aspect ratio), and 77% subscribe to some type of HD subscription service (cable, satellite, Netflix, Chromecast, etc.). So if you’re a TV advertiser, the vast majority of households are watching your commercials in HD on a widescreen format.

TV Advertising Full Screen

Here’s the view when your image fills the HD screen.

But are your spots always filling the screen? Are you using the full real estate your spot was produced to fill?

According to some of the market’s most prolific videographers and producers, nearly ALL the video produced for commercial TV for the past several years has been shot in HD and produced in widescreen format for HDTV. Yet I find it amazing the number of spots that appear on HD channels that are either “clipped” on both sides, reducing the image to the smaller, standard definition (SD, 4:3 aspect ratio) image, or reduced in all directions, creating a “postage stamp” impact with a black frame all the way around.

Why does it happen? How do you avoid it? How can you make sure it doesn’t happen to you? Well, the bottom line is the only practical way to really know it’s NOT happening is to keep a human eye on your spot schedule as it runs.

Because cable and satellite providers still carry some channels in SD at the old 4:3 aspect ratio, advertisers either need to provide a version of their commercials that have been edited down to the SD width, or allow the broadcaster/cable

TV Advertising Center Cut

Image “Center Cut” to fit the 4:3, standard definition screen.

system to shrink the entire image to fit, which results in the “letterbox” black bars at the top and bottom of the image. Since some programs, and even some ads, run intentionally this way, you may well be conditioned to not even notice.

According to Mark Johnson, Chief Engineer at WAVY-TV, the problem can happen a couple of different ways. 1) Since all

commercials are digital files, they must be uploaded, labeled and encoded properly by the advertiser, production house, or agency. Then the directions or “tags” need to be accurate as to which version of which spot runs where. 2) The proper spots must be loaded into the commercial insertion systems with the proper directions. When a system finds a mis-match it defaults to “fill” the screen, top or bottom, with those black bars that, to me, symbolize wasted screen space and wasted ad dollars. The other factor that can affect how spots (and programs) look on air is actually how the viewer has his/her own screen formatted, which none of us can really control.

“All of the spots are looked at before they go on air” said Johnson, “but we can’t always tell how the advertiser intended the spot to look.” Cutch Armstrong, Director of Marketing and Client Solutions at Cox Media Virginia, says that each spot is uploaded to the Cox system in Atlanta and viewed by technicians before airing. With both Cox and WAVY, as well as most video providers, the file upload process goes through servers located centrally (national or regional locations) and are added to the schedule through an automated process.

TV Advertsing Postage Stamp

“Postage Stamped.” Full 16:9 frame, but reduced to fit the 4:3 width.

The bottom line is, if a spot is running counter to how the advertiser expects, the first time anyone notices may be when the spot runs live.

Armstrong says it best, “Everyone wants the best possible result. They want their stuff to run perfectly every time.” But the systems can create difficulties. “Cable systems and broadcast networks require certain ‘codecs’ [file types] in order to be compliant with the diverse format standards set by the networks.” Most stations or outlets post the requirements and codecs on their websites and can tell when a file is uploaded improperly (Armstrong sent me an 11-page document, as well as a one-sheeter that Cox Media uses.)

So preventing it comes down, quite simply, to attention to detail. The computer systems do not malfunction; they respond to incorrect inputs and the result is painful. Spots have to be produced, labeled, trafficked, scheduled and inserted properly. I’ve resisted the temptation to add actual examples to this post, because this is not intended to be a finger-pointing exercise. It does happen often, and if you want examples email me at

The only way you know it happens is if you see the spot run. I guarantee, if it happens the broadcaster or operator wants to know. Cox (who also handles commercial insertion for Verizon in Hampton Roads) has set up a specific inbox,, for customers to notify the operator of any problems. We’ve actually created systems to monitor and spot check schedules for clients. It is possible to receive actual air-checks of every spot that runs from third-party services such as Kantar Media or Media Monitors, but the cost could obliterate the ROI of your campaign. Instead, have someone set up spot checks of your schedule on various channels using a DVR, then scan the spot breaks and verify that the spots are running correctly.

Of course human error happens, and a spot that runs in the wrong aspect ratio is not a wasted spot. But until HD formats completely replace SD and until one universal codec becomes standard, the potential problem will exist, and as an advertiser you want to maximize every inch of the screen.

What’s a Sponsorship Worth in Hampton Roads?

Five Key Elements to Valuing a Sponsorship.ODU

Of course the big question here is, “What’s a sponsorship worth ANYWHERE?” One of the hardest things to do in marketing is place a tangible, measurable value on a high-profile sponsorship opportunity. Whether you’re talking a single event, seasonal series, fixed venue, even spokesperson or celebrity visit, the variables and intangibles make pricing and measuring return on sponsorship extremely squishy.

“The fact that there is not one standard measuring stick across our industry nationally is very frustrating,” says Chuck Gray, general manager of ODU Sports Properties. Gray works with sponsors at every level for ODU Athletics opportunities. “You can find three or four models” used in various places he added. “We look for ways to create value multiples, as much as 2-1, for the dollars invested in a sponsorship.”

Velvet Marshall is sales director for IMG in Hampton Roads, handling sponsorships for the nTelos Wireless Pavilion in Portsmouth and Beachevents at the Virginia Beach Oceanfront. “Every package we Virginia Beach Ball 2put together is customized based on the sponsor’s budget and needs,” she says. According to Marshall, ”We always meet and exceed what is required by the city of Va. Beach for the Beachevents program. And while a good portion of revenue generated does go back into the program, we always maintain the quality of the acts we have regardless of sponsorship revenue.”

Fine. But when you’re faced with the decision of committing six-or maybe even seven-figure line items in your marketing budget to a major sponsorship as opposed to increasing your online or offline media weight, how do you decide? Sarah Marshall Elliott, director of marketing and brand strategy for Virginia Farm Bureau, says the company looks for several kAmphitheaterey elements, including audience compatibility and fit, statewide reach, strong digital/social media aspects, and category exclusivity.

“When the Farm Bureau Live sponsorship was created four years ago”, Elliott says, “the company’s marketing strategy was largely built around raising general awareness for the bran  d.” It was important to capture the loud promotional voice and leverage digital as well as traditional reach and frequency to bolster Farm Bureau name recognition. “Today,” she says, “we develop consumer-facing promotions which drive prospects into our local county offices for an insurance quote. We have also ramped up our digital marketing efforts via our sponsorships which provide real-time data.”

A Little Structure, Please.

As a corporate marketer and as a consultant I’ve had to find ways to help make sponsorship investment decisions. The challenge led me to develop a model of my own that has proven successful over time. One major caveat; the key steps below assume that you have already done your homework and determined that the audience you will be positioning your brand or product in front of is a good “fit” for your brand and overall strategy. Here are the five key elements of the model:

1) Discovery. Put boots on the ground. You’ve got to attend the venue, see the audience, see how they move and act.

2) Measured Media Analysis. Calculate the real value of the impressions based on a valuation for your market. In my model I’ve created a valuation based on several local-market, multi-media CPM figures. Add in frequency based on number of events, attendance at events, media coverage, insertions and reach of paid spots inserted in broadcast or exposed on websites. After that, add a quality score to each component of the package; for instance, a :30 TV spot or feature position on a home page is a much more valuable impression than a static sign in a concourse. The grand total of this analysis gives you a real-dollar value.

3) Qualitative Analysis. What is the emotional value to your company or brand? Rarely will the quantitative, real-dollar value reach the actual cost of the package. In every case you will have to assign a value or multiple to your analysis that attaches a value for associating your brand with the promoter, event or product. Expect the real-dollar value to equal at least 50-75% of the asking price for the package. The subjective value has to get you the rest of the way.

4) Negotiation. Once you know the value to your marketing plan, you’re ready to negotiate a fair value price. Two choices here: Present the venue, promoter, or agent with your price based on the package as it exists, or (usually more successful) negotiate for additional value in either reach or frequency elements.

5) Activation. This may be the most critical element, and it cannot be an afterthought. The whole purpose here is to promote your brand and engage with the audience. Plan for and budget to leverage your sponsorship. Invest in creative concepts to make your signage stand out. Plan to staff events and make personal connections through creative promotions. Brainstorm and identify unique ways to present your brand to make you stand out from the sea of other sponsors.

ODU’s Gray says he values inventory and packages based on three key elements; attendance, location and availability. Scarcity and demand of particular inventory will drive the price up, as with any other product. The key is to understand the value, budget for it appropriately, and activate in unique and engaging ways.

Seem like a lot of work? Well it is. You can do most of it in your head if you’re talking a $2,000 golf tournament sponsorship. But when you’re looking at a six-figure naming-rights or premier sponsorship that may span 3-5 years, you need to know what to expect.

Elliott councils others to carefully consider the term of the contract, as strategies can shift over time. “It wouldn’t surprise me at all if more ‘mature’ companies, those who already have relatively high brand awareness, are looking for a more traditional return on their investment these days,” she adds. Velvet Marshall is faced with that kind of big hole right now, filling the name and title slot for the American Music Festival at the beach, vacated when Verizon Wireless decided to pull all of its event sponsorships.

Bottom line on sponsorship evaluations? When the money is big, there’s no such thing as a no-brainer. Find a way to engage the quantitative structure and measure it against your primary business objectives. It can be done.

So Now What Do You Name Your Business Hampton Roads???

The latest salvo in the “Name Your Region” battle has been fired, and it’s game on. By constantly referring to our hometown region as “Coastal Virginia” during his recent State-of-The-City address, VirgiCoastal Virginia Signnia Beach Mayor Will Sessoms re-invigorated the name change initiative.

It wasn’t hard to spot; in fact I mentioned it to people as I walked out of the VB Convention Center following his speech. The only time we heard the words “Hampton Roads” was in reference to another bridge tunnel across “the Hampton Roads.” A good reference to the history of the name can be found here. The Pilot and Virginia Business were quick to pick up on the topic, and coverage spread across the state.

“Coastal Virginia” is a tourism-driven name. It’s born out of a desire to find something more easily identifiable to people outside of our region. To me, tourism does seem the right driver, considering the three economic pillars of our region: tourism, defense spending and the ports. I don’t believe either “Defense District” or “Port Place” are going to be very well received (I made those up.) The name change gained real steam when the Southeastern Tourism Alliance changed its name to The Coastal Virginia Tourism Alliance.

Rather than debate the name, let’s focus on the impact of changing the name at all. If you’re a marketer in Hampton Roads, and you’ve tooled your company or business to reflect the place where we live, the impact can be huge. Hampton Roads Chamber of Commerce, Economic Development Alliance, Naval Museum, Convention Center, United Way — the list is almost endless. And if you’re starting a new company, what name do you bet on?

David Mele, publisher of The Virginian Pilot, including responsibility for all of their specialty and online properties, acknowledges that his enterprise is heavily invested in the name Hampton Roads. “We actually raised the question from our editorial side when the name Coastal Virginia first surfaced and have had a lot of people weigh in,” he said.

Asked what it would take to truly consider changing the names of websites or sections of the paper, Mele said, “The region is heavily invested in the name ‘Hampton Roads.’ The prevailing thought right now seems to be that we should put more marketing support behind the current name before we consider a change. If we found that it was really the right thing to do,” he added, “if it truly improved our (market) competitiveness, we would get on board.”

But the degree to which local businesses are invested in the name is huge. From small businesses like Hampton Roads Termite and Pest Control, founded in Chesapeake in 1986, or Hampton Roads Harley Davidson, operating under that name on the Peninsula since the ’70s, to Hampton Road Transit, whose name symbolizes the creation of a truly regional transit authority, the impact would be huge.

My prediction is that the true coastline will embrace Coastal Virginia, which makes sense. The farther to the left you go on the map, the more it makes sense to stay the course. And if you’re starting or renaming your business today? “I’d stick with Hampton Roads,” Mele suggests. I agree. But I did just purchase a new URL: Roads

Hampton Roads: Is Traditional Media Dead?

How do you know that your marketing efforts are as efficient as they can be?  How do you or your marketers know how to allocate budgets and shift from traditional to emerging media?

Not a day goes by that I don’t engage in either an internal or an external conversation about how to properly allocate media budgets in today’s ever-fragmenting world.

  • Mass media outlets are losing eyes and ears to online and mobile sources.
  • Direct marketing efforts are under siege by regulatory and technical limitations.
  • Ad agencies are hell-bent on identifying and monetizing ways to connect clients and consumers in the digital world and to do so in a way that actually converts into sales.
  • At the same time, marketers in every business segment struggle with dividing their budgets into smaller and smaller pieces, managing them with fewer and fewer resources.

But where is the tipping point? Yes, it’s critical to maximize marketing dollars. Yes, accountability rules the day. But has the historical ruling class of advertising media weight lost its power? No. At least not yet. And that’s a very important perspective for marketers to maintain.

Even though online video viewership grew 40% from 2012 to 2013, traditional video is consumed at a rate more than 18 times greater, according to Nielsen. And that number has remained rather steady for the past five years.

Traditional broadcast and cable/satellite TV outlets still win the day in delivering the bulk of a brand’s message. Nielsen reports that adults 25-34 still spend an average of 3.7 hours every day watching traditional, linear television.Andy Fox

Throughout history, every disruptive technology and emerging media has created a sense of panic that it would supplant an existing mainstream medium. In reality these media become additive to the overall environment; new choices and sources for information or entertainment. It’s very easy to be distracted and affected by the amount of hum created by the shifting video landscape.

Every media plan needs to start with a critical evaluation of where the intersection points are between the target and the available media, but advertisers who have historically found TV to be the most productive medium will continue to do so, at least for the next few years. Any media planner will involve transitional elements of online video placement, properly researched, measured and priced, in all plans.

Hampton Roads: Lean on your agency to bring your vision to life.

I’m not an ad guy.  Pretty risky statement for an agency VP who’s supposed to be a strategy guru.

I’m not an ad guy.  I’m a marketing guy.  Marketing@HamptonRoads

A marketing guy raised on the client side of the business.  And after many years on board with the agency that was my primary resource as marketing director for some pretty big communications companies, I have to share my biggest learning.

Clients simply do not lean on their ad agencies enough.  At least not for the right things.  See, I’m not talking about overnight turn-around on email blasts or video spots.  I’m not even talking about “will you guys explain that SEO SEM PPC SMO BFF LMAO WTF thing to me.” I’m talking about marketing.  Ideas.  Innovative media strategies.  Competitive set analysis.  Brand differentiation.  As a corporate marketer, it’s the stuff that I figured could only be really well thought out inside the walls of my own department, by my own staff.  That’s the stuff that I was accountable for; how could I push it out to others?  But I was selling myself short, and putting way too much pressure on my staff. A CEO or business owner that is really willing to engage its agency SHOULD find a valuable experience base to leverage

Agencies are full of energy, fresh learning, initiative and yes, creativity.  Lean on them for new media strategies, completely zero-based thinking and budgeting.  Challenge them to develop your marketing plan.

You’ll be amazed at the depth of thinking, assuming of course that you’re talking to the right agencies.   Start your work with an agency by providing just one piece of information; your BUSINESS objectives.  Find out if your agency is built on marketing muscle or not.  Make the agency accountable for the marketing strategies and ideas that will achieve those objectives.  At least lean on them for fuel and energy to ignite marketing ideas within your company.

If your agency is not willing to play at that level, to start from that position, then you have the wrong partner.  I’m so much smarter now than I was on the client side.  If ever I find myself back there again, I know exactly where my marketing muscle will come from.