Tuesday, October 31, 2006

Are advertisements that look good; advertisements that bring results?

Recently, we bought an ad. package of 4+4 (you buy 4 ads. you get 4 free) in HT city at Chandigarh. Almost 2 years into the movie rental business now, Chandigarh remains our lab to test and try things out. Our members in Chandigarh are the ones I really need to thank, for they have helped us in shaping our service and fine tuning it to suit the general population.

Coming back to the package we bought, we decided to publish one ad. each Friday. It made sense as that is the day when new releases are listed, and if our ad. was present beside the ad. of a multiplex, the chance of our ad. catching a movie buff’s eye was high.


We had 8 ads. in all, to publish over 3 months (almost). We planned a print schedule based on the inputs we had about what time during the month do people make purchase decisions, when are they pre-occupied with other things, etc. For instance, during diwali people have other things, such as buying Gold, preparations for puja, card parites, etc. on their mind and they may not bother too much about movie releases. Therefore, it made sense to skip an ad. during Diwali.


We thought we would plan an ad. series, with each ad. talking about one USP of ours and culminating with an ad. that highlights our features as against competition in the market. After some thought, I concluded that 8 different ads. spread over three months is too long a time for our audience to remember individual ads. Therefore, it was best that we chose specific messages we wanted to send across and repeat these messages over and over.


Repetition is for recognition. If a person saw my ad. last week and it did not initiate him, if I repeat the same ad. this week, it will help him recognize our previous weeks ad. and will initiate him this week. Therefore, I proposed that we limit the number of ad. designs and repeat each of them over and over again.

Here are some stats related to the ads. we published:

  1. Ads that spoke of Madhouse as the largest video library in the region saw 35-40 enquiries with 50% conversion rates.
  2. Ads that had a message about our low rentals again saw 35 – 40 enquiries with 75% conversion rates.
  3. The one ad. that highlighted all our features, over the competition, saw 7 enquiries and 2 conversions.


Surprising, since most of us really liked the ad. that highlighted our features. Many friends and family noticed the ad., they commended its aesthetic excellence. We all thought we had a winner of an ad., expected enquiries to pour in. But, nothing like that happened. Contrary to all our assumptions, we hardly got any traction to that particular ad.


It is important that we identify the key features of our product, which our target customers relate to and use our communication to sell those features. In madhouse’s case, low rentals was a sure seller, leader in a particular region was a good selling feature too.


For any new product / service in a market, especially so a startup such as ours, it is of utmost importance that we use the marketing channels intelligently. One could spread themselves thin by indulging in expensive above-the-line channels and gain nothing from it, except for a burnt pocket.


Focus on the target customers, their profiles, means to hook them to your service and innovative methods to reach them are vital. Not glamorous Page 1 advertisements, no fancy campaigns, no frills. Just pure entertainment. By way of a satisfying movie rental service in our case.

4 comments:

  1. oyNandini

    I endorse your point of view, as an marketing services company handling nternet marketing for a premier bank in India, we notice that on one hand Internet allow you to showcase flashy creatives which catch the eye and add to the "Branding Value" as an advertising executive will discribe it, does not lead to clicking on them or generate transcations .

    On the other hand plain vanilla banners which with a direct message / offer genrates the required transaction .

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  3. True!! I completely agree with you. A Classic example is Netflix, if you have seen their ads, most of them are offer driven. When you would look at it, you would say that there is nothing in the ad, and that's the best part that their is nothing in the ad except what is actually required.

    As a Advertising guy, I myself have worked on the launch of DVD rental company SeventyMM and the only thing I suggested to them was to concentrate on the core idea on which the service is based that eventually brought them a lot of leads.

    Sometimes it is important not to put things on your ad.

    cheers
    E : real.artist.ship@gmail.com

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  4. Your conclusion in this post is in need of a context. The key behind advertising is without doubt segment targeting. But we must not ignore the product/service type. If your product had been an automobile, then you will agree, most customers ARE looking for a 'one with all in it' kind of ad. That is because cars and bikes are research goods that also require high level of investment. Hence, the customer wants to know as much as possible before putting in that money. On the other hand, DVD rental service is a low investment convenience service. What you are selling is not a product, its a service. What you are selling are not DVDs, its logistics. What your customers are looking for? Two things in the Indian market-convenience and availability. Your low info ads did better than your high info ads simply because they focused on these two things in a clear manner. I do not agree that flashy ads are not required. They work great. Just like sex appeal. It never fails. But clutter is something that can really let you down. Attention grabbing is necessary when there is so much media traffic. But having done that, the message should go like an arrow through an apple. On a separate note on your value proposition, who would want to take up your service? Some one with no DVD player or a puny little TV will not. Some one who has a home theater system and with obese wife and kids will. How about tying up with Home Theater companies? Hey, how about showing your ads INSIDE multiplexes? Inside the lion's lair so to say ;)

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