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Choof.org "News"

April 19, 2005

News & Advertising = Newsvertising

The Wall Street Journal reports on newsvertising:

In November, Child magazine's Technology Editor James Oppenheim appeared on a local television show in Austin, Texas, and reviewed educational gadgets and toys. He praised "My ABC's Picture Book," a personalized photo album from Eastman Kodak Co.

[...]

There was one detail the audience didn't know: Kodak paid Mr. Oppenheim to mention the photo album, according to the company and Mr. Oppenheim. Neither Mr. Oppenheim nor KVUE disclosed the relationship to viewers. During the segment, Mr. Oppenheim praised products from other companies, including: Atari Inc., Microsoft Corp., Mattel Inc., Leapfrog Enterprises Inc. and RadioShack Corp. All paid for the privilege, Mr. Oppenheim says.

One month later, Mr. Oppenheim went on NBC's "Today" show, the U.S.'s biggest national morning news program, which is part of NBC's news division. "Kodak came out with a great idea," he said to host Ann Curry, before proceeding to talk about the same product he'd been paid to discuss on KVUE. Ms. Curry called it a "nice gift for a little child." Kodak says it didn't pay for the "Today" show mention. But neither Mr. Oppenheim nor NBC disclosed the prior arrangement to tout the product on local TV.

In the "Today" segment, Mr. Oppenheim talked about products made or sold by 15 companies. Nine were former clients and eight of those had paid him for product placement on local TV during the preceding year.

[...]

Mr. Oppenheim is part of a little-known network that connects product experts with advertisers and TV shows. The experts pitch themselves to companies willing to pay for a mention. Next, they approach local-TV stations and offer themselves up to be interviewed. Appearances frequently coincide with trade shows, such as the Consumer Electronics Show, or holidays including Christmas or Valentine's Day.

The segments are often broadcast live via satellite from a trade event and typically air during regular news programming in a way that's indistinguishable from the rest of the show. One reviewer may conduct dozens of interviews with local stations over the course of a day in what the industry calls a "satellite media tour." While this circuit is predominantly focused on the local television market, the big prize for marketers is a mention on national television shows, which carry far more clout with viewers.

[...]

Mr. Oppenheim's pitch is typical. Late last year, he invited electronics and game companies to join two satellite tours, according to a copy of his solicitation. "We expect these tours to sell out fast," Mr. Oppenheim wrote. "So please contact us as soon as possible to reserve a spot." The $12,500 fee per company, he explained, covered development, production and "spokesperson expenses."

[...]

For several years, Wal-Mart Stores Inc.'s Sam's Club paid trend and fashion expert Katlean de Monchy to get its jewelry mentioned on local TV. Ms. de Monchy's company, Nextpert News, charges $25,000 for a "special option" that includes Ms. de Monchy touting products on local shows, according to a copy of one of its pitches.

Then in January, Ms. de Monchy appeared as a guest on a "Good Morning America" segment explaining how to replicate fashions worn at the Golden Globe awards. "It's the accessories that really caught my eye, though. A lot of bling-bling," Ms. de Monchy told host Diane Sawyer, singling out a pair of diamond earrings available at Sam's Club.

Dee Breazeale, Sam's Club's vice president and divisional merchandise manager for jewelry, says the company didn't pay to get on ABC's "Good Morning America," but that the mention was "the icing on the cake." Ms. Breazeale adds that Sam's Club would probably not hire Ms. de Monchy if the payments were disclosed, because that would make her appearance seem too much like an infomercial. Ms. Breazeale says the paid segments are more effective than buying an ad. "It brings [the product] more to life," she says.

During the same "Good Morning America" segment, Ms. de Monchy showed off a pair of pointy-toed pumps, sold by another paying customer, shoe retailer DSW. Mike Levison, DSW's vice president of marketing, says he believed his company paid to get on "Good Morning America" as part of the satellite tour. With 10 being the ultimate marketing coup, he described the appearance as a "9 or 10."

Posted by chris at April 19, 2005 01:48 PM

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