New Ways of Promotion

Why General Motors, McDonald's and American Express like online video advertising? How to save company's costs for advertising? Just follow new branding ideas...

Yahoo! and the advertising agency OMD made an experiment: a group of volunteers did not have to use the Internet for two weeks and had to write their impressions in the diary. One quarter of the volunteers was not able to finish this experiment, and those who did, felt quite depressed.

Ipsos-Reid in its turn asked the interviewers what kind of information source they would take with them to a desert island. 64% chose a computer with an access to the Internet, 18%- books, 6%-TV and radio, 1%-newspapers.

Data of these researches may be useful for marketing specialists to make a proper choice for promotion of the company's products. For instance, today the General Motors Corp. thinks that sometimes, the online video advertising is better than a thirty-second long TV commercial.

Moreover, $198 billion is annually spent for the Internet advertising, whereas the same amount is spent for the TV ads within thirty six hours. The online video is a kind of laboratory, with the help of which the company may easily find new customers. It is sequential to the TV commercial within the company's advertising campaign.

However, the Internet gives an opportunity to track the online customers' reaction of various types. It is easy to study their behavior and perception of the promoted brand in the online showrooms.

In 2004, American Express demonstrated a video starring Jerry Seinfeld on the company's site. After its TV release the internet traffic of the site was increased by 31%.

Nowadays, McDonald's is the leader in the field of promoting its product by means of the TV and Internet. The company used only to advertise on TV prime time - today it is spending less money and is expanding the sphere of its effect by the online video with the Destiny's Child participation.

In 2005, it was decided by the General Motors Co. to spend $20 billion for an online video of its popular brand Cadillac. It comes out that sometimes the name of a brand whispered is heard better, than the one cried out aloud. For instance, Cadillac V found a way to make people watch its online advertising. First, it was a set of 5-second online video, which was demonstrated before sport or news matters on such sites as The General Motors Co. softly made people watch it and participate in a clip- makers' competition.

In 2004, Fox, sponsored by Ford, started a talk show discussing "24" in the Internet. Today the company intends to double its costs for the Internet branding.

According to the researchers, today the Europeans prefer to read news online, whereas the Asian people - in the newspapers. Therefore, it is a matter of every company to choose how to promote its products- by means of advertising in the printed issues or online. However, the paradox may occur when advertising in Japan-its newspaper Yomiuri Shimbu with daily circulation of 14,067,000 may compete with its quickly developing Internet technologies.


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