Why Two TV Ad Sales Execs Hit the Road

 

As a result of the Seahawks’ championship-calibre play en route to their sole Super Bowl appearance in 2005, Northwest TV advertisers were rewarded for their investments. Enroute to the Super Bowl, the Seahawks generated sky-high Seattle Nielsen TV ratings in their playoff victory over the Carolina Panthers – an astounding 52.8 rating, which basically equates to an 80 percent share of viewers.

That was even higher than the 51 rating in 1999 for the Seinfeld finale and the 50.5 rating for the Mariners’ playoff victory over the Yankees in 1995.

But national advertisers had reason to be alarmed about their investments of $2.6 million for a 30-second commercial in the Super Bowl, according to Nielsen. The playoff game’s national ratings were down significantly in the desirable 18-49 demographic. The game drew a 10.7 overnight rating – down 33 percent from a comparable time period last year.

Two reasons for the decline: 1. The Seahawks and Panthers didn’t have massive national fan support. 2. The Seahawk victory was never in doubt.

National ratings dropped by more than 50 percent in the final 30 minutes. For viewers in other cities, the game was as dull as a dark, overcast Seattle sky in January. 

A lot has changed since Volney B. Palmer opened the first advertising agency in Philadelphia in 1841; and in 1976 when the Seahawks entered the NFL, the U.S. Supreme Court ruled that commercial speech is protected by the First Amendment in the Constitution.

Several new mediums were created in the last century including radio, television, cable, and the Internet.

But those proven mediums are being challenged. As newspaper ad revenue remains a flat and the viability of television ads is under attack in this complex mobile age of business, new techniques are constantly being implemented as marketers and ad agencies relentlessly scramble for new ways to reach customers.  

Competition for Ad Dollars

Whether it’s mobile couponing or click-to-calling, media buyers are frantically looking for the next opportunities in mobile data services to connect with consumers using hand-held devices. Other techniques, of course, include honing trend-spotting skills, blogging, podcasting, and word-of-mouth advertising.

Some participants in Word of Mouth Marketing Association, www.womma.org, have erroneously indicated they believe traditional advertising is dead, and that word-of-mouth marketing agents do not have to divulge they’re being paid to hawk products. Fortunately, at a recent convention, they heard a report on truthfulness from Walter J. Carl, Ph.D. of Northeastern University in Boston. He also said 75 percent of consumers approached by word-of-mouth agents will react favorably, if they trust the person.

It takes a lot to motivate people to trust marketers. That includes sports fans who have been weary from decades of mediocre performances. Selling requires a “happy buying environment” so the buyers feel an emotional connection.

Many of the 67,837 fans just outside Qwest Field attending the Seahawk victory experienced a new twist in marketing, GoMobile Advertising. Two well-known former Northwest TV advertising sales managers – Chris Schuler and Mike Seifert – are the partners in the firm taking advantage of the happy buying environment. (Note: I’ve known them and some of their clients for many years.)

Considering their extensive media experience, their new medium, is a surprise. They tout their environmentally friendly biodiesel-fueled truck as an advertising complement to TV, newspapers, and the Internet.

Before and after the game Sunday, thousands of Seahawk fans streamed by the parked GoMobile truck.

It has eight scrolling billboards on each side that change every 6 seconds. It’s a high-tech truck but is reminiscent of the old-fashioned whistle-stop election campaigns of Franklin Roosevelt. When not parked at high profile events, the truck is driven on heavily traveled routes, much like a bus.

Why Change Careers?

So what motivated the two respected television advertising professionals? “People are clamoring for new ideas. They’d say give us something new and creative,” said Schuler, the GoMobile president.

“We did a lot of revenue models – we just kept finding limitations,” he said. Then they found a company that uses an Isuzu chassis to build box-like trucks with the technology to scroll advertising signs.

GoMobile Vice President Seifert says they’re also donating space: “12.5 percent of the panels, for non-profits such as Pacific Northwest Ballet, for the price of an $800 production fee.”

“Their approach is different than what PNB usually purchases in our advertising mix, and that’s why we wanted to try GoMobile,” said Lia Chiarelli, the ballet’s associate director of marketing and communications. “Their routes are well targeted to get our message into neighborhoods we might not reach with traditional outdoor advertising.”

Chiarelli is enthusiastic about other GoMobile benefits: “The promotional component of having the truck at targeted events, passing out coupons, etc., adds value to advertising with GoMobile, she said. “It’s a new vehicle to share our message and it’s exciting to be a part of something fresh.”

An anchor sponsor concurs: “I see it as we have a very mobile society, the majority of the population loves their vehicles and spend time driving vehicles instead of taking the bus,” said Ken Huttman, CEO of www.AutoExpressUSA.com. “We have found increased traffic from the Eastside ZIP Codes since we have been with Go Mobile.” (Note: Huttman also owns a TV production studio, which produces commercials for my clients.)

But is the GoMobile business model profitable? “After 90 days, we’re in the black,” said Schuler. His firm also has a second source of revenue.

The truck’s designer granted GoMobile marketing rights, which allows them to sell the trucks, too. They’ve developed a relationship with a business lender, Westover Financial, www.westoverfinancial.com,, which finances GoMobile’s truck deals.

The truck sells for $99,000, which is why some buyers prefer a lease option. “Two, so far, and we have 10 in the works, as we speak,” said Richard Abbajay, a Westover regional account rep. 

When media salespeople approach me about my advertising clients, one of the questions I ask is “What are you doing to promote yourselves?” What is Seifert doing to promote his company? “We’re also working with Violeta Strash.” (She’s the General Sales Manager of Radio Sol/Salem Radio, which broadcasts the Mariner games in Spanish.)

“We’ll get high visibility at Safeco Field by parking our truck next to theirs,” said Seifert. “Mass advertising generally only reaches 71 percent of consumers; so it’s very important to reach the other 29 percent. This helps us set up a dialogue with minority groups.”

From the Coach’s Corner, here’s a  Seifert tip on marketing: “Diversify, serve the community, reach out to minorities, be environmentally conscious, look for ways to provide value, and work hard.”

Postscript to a recent column: One of my conclusions was that North Carolina has a healthier economy than us. That’s primarily because North Carolina is more progressive in public policy – its lawmakers and public officials have a spirit of cooperation with business for economic development and job creation.

A Tacoma reader responded by sending me an article, “California Ranked Worst for Business,” from www.chiefexecutive.net, which has interesting conclusions from a poll of 339 readers.

Their priorities in picking states to establish business operations: Work force quality, 20.6 percent; labor costs, 18.3 percent; and taxes, 15 percent.

The article included a map of states, which named North Carolina as one of the top five states “to do business.” The Northwest states weren’t ranked as leaders. Oregon was named one of the “worst.” Idaho and Washington fared better; they were rated as “good.” (The five grade levels: Best, good neutral, not good and worst.)