INSIGHTS AND PERSPECTIVES

Allergy ad spend kicks into gear

BY TS Kelly

A sneeze is no small thing. Neither are itchy, watery eyes or a stuffy nose. Not when they are due to seasonal allergies.

These symptoms translate into big dollars. In fact, a recent TMR report predicted that the demand in global allergy treatment will translate into $41.17 billion in revenue by the end of 2025 — that’s nothing to sneeze at.

March is traditionally the kick-off to ad campaigns designed to get people ready for the pollen that hits alongside the sunshine. And, taking a look at the top TV ads in the category for past month, it is clear that the top-selling over-the-counter allergy treatments are spending big to ensure that they continue being placed in consumers’ shopping baskets this spring season.

According to Alphonso data, GSK Consumer Healthcare’s Flonase was far and away the biggest allergy advertiser on television in March —  with S$11 million in total spend. The brand aired three distinct spots, not including 15-second variants. Two versions in particular nabbed the top two spots on the TV ad spend ranking for allergy medications.

The biggest slice of the budget — $5.7 million — went toward supporting the Flonase Sensimist product line, which includes a children’s variant specifically targeting moms on such parent-skewing networks as VH-1, Nickelodeon, and the Lifetime Movie Network.

ad spend But men weren’t left out of GSK Consumer Healthcare’s focus — with male sports fans specifically in its sights. The company ran an ad touting Flonase’s adult allergy relief products, with commercials airing on over 50 different TV networks, with the largest spend on Headline News, followed by NBC Sports Network and the NFL Network.

Bayer’s Claritin also spent big on television ads in March — in total $9.6 million — with three main commercial spots, as well as a children’s and Hispanic variants.

At $4.5 million, spend on Claritin D made up nearly half of the company’s TV budget that month, with airings on more than 50 various networks.  Discovery Family, Centric, and Spike led the pack. Diving into the programs they aligned with, it seems that Bayer is all about the laughter. Reruns of comforting sitcoms like “Two and a Half Men,” “Friends,” and “George Lopez” were their top three picks.

Claritin concentrated their other two commercial buys on the same three networks. And, although there were slight variations in the TV programming mix,  “Friends” was a constant.

It is telling to see that each allergy brand turns to distinct TV channels, shows, and audiences to maintain and increase marketshare—a recognition, perhaps, that pollen isn’t a problem isolated to one demographic and can affect us all.


TS Kelly of AlphonsoTS Kelly is senior vice president of research for Alphonso, a TV data company that provides real-time TV campaign analytics, one-to-one TV ad retargeting, and closed-loop attribution for brands and agencies. In his role at Alphonso, Kelly deep dives into television data and insights, giving clients guidance on how to optimize their TV spend.

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Digital reinvention

BY Dan Mack

The Idea: Recent research by McKinsey has uncovered that only 8% of companies believe they will remain viable if digital continues at its current speed. Only 16% of companies have taken steps to exit declining businesses & invest in digital reinvention. And even more alarmingly, only 5% of companies actively seeking digital transformation report that they have met their goals. Why are so many companies failing with digital reinvention? We are not embracing fast learning or experimentation and are married to fatal perfectionism. Advantages don’t last forever.

Digital winners act differently and ask different questions. Digital and brick and mortar have become one; the very best brands and operators eliminate buying friction, which is why the price is less important to their customers. They measure digital traffic and awareness but it’s all about converting the right customers. Omni-channel customers spend 4 to 6 times more than store-only consumers.

Our most recent Digital Disruption Summit included ideas shared by Google, Facebook, IBM Watson, Bain, Kantar, One Click Retail, and L2 (Division of Gartner). I want to share 30 growth ideas from this special summit.

  • How to win today: hire “Hackers, Hipsters, and Hustlers.” Embrace outsiders.
  • Quit benchmarking brick and mortar brands; the new standard is “digitally-only” brands.
  • When you are competing against an algorithm, your advantage is “your humanity & your soul.”
  • Value is transient; we must constantly reinvent our current advantages.
  • Organizations today must embrace a “Start-up Mindset” to maintain an advantage.
  • Does your organization struggle with a “Gap in Imagination” or is it a problem with EXECUTION?
  • Move from “Business Plans” to “Roadmaps”; Be adaptable & address changes in context.
  • If you are unable to “flex,” you are operating with a competitive disadvantage.
  • Leaders must be astute at asking better questions to help their organizations get “unstuck.”
  • Does your brand tell emotional stories that inspire others to act? Facts don’t compel, stories do.
  • What new services should you be selling that support your tangible products?
  • Is your brand creating memories that last?
  • Perfection kills. Think Progress, not perfection in all aspects of your business.
  • We have an 8-second attention span. Are you grabbing other’s attention quickly enough?
  • Agility and speed are not options; they are requirements in this new world.
  • 84 percent of the world doesn’t use an iPhone. How does your brand show up on an Android?
  • Currently, 20 percent of search is activated by voice. Are you keeping up?
  • More than 80 percent of millennials EXPECT personalized offers.
  • Who are you looking to for inspiration outside of your business segment?
  • Your brand website is still your #1 brand advocate and is the most persuasive influencer.
  • Which competitors should you think about partnering with today?
  • “Search effectiveness” will drive the next group of brand winners.
  • B-to-B is still about one idea: “Can I Trust You?”
  • Winning the top 6 U.S. cities means winning the 4th largest economy in the world.
  • Build a human-centric, understanding culture. Focus on people’s internal needs, not consumers.
  • Create a learning-obsessed organization, allowing you to “out-think” and “out-listen” others.
  • Currently 79% of consumers would rather learn through video.
  • The Five P’s (Price, Product, Page, Promotion, Placement) leads to Performance (6th P).
  • The digital shelf: 90 percent of purchases begin with search; over 80 percent of clicks stay on first page, with 64 percent of the clicks on the top 3 items.
  • According to Bain, there are 36 elements to create value in the B2B world. Intangibles such as social responsibility, design, esthetics, reputational assurance, vision, reduced anxiety, flexibility, expertise and other valuable intangibles are how we win the price game.
  • Are we trying to sell them something or are we trying to listen intently to help them?

You can’t ignore the new rules. Learn to embrace the act of reimagining everything. Organizations need a wider lens, so they don’t miss new opportunities or partners. Embrace the excitement and ambiguity of the moment.

Digital Darwinism means technology & society are evolving faster than we can all adapt. Are you comfortable being uncomfortable?

To learn more about Mack Elevation’s coaching, consulting, training and leadership events visit www.mackelevationforum.com.

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Living in retail’s digital theme park

BY David Orgel

You can see that deer-in-the-headlights look on the faces of some retail executives.

Fast-paced digital disruption is having its impact.

Amazon-Whole Foods was the highest-profile wakeup call. However, it’s far from the only alert. A range of players are battling for advantage in this space — from ecommerce to digital marketing — all powered by new technologies. These include tech players like Google and Facebook, as well as such traditional operators as Walmart, Target and Walgreens.

Fear can be paralyzing to the retail industry.

Excitement, on the other hand, is contagious.

I felt excitement in hearing recent comments by Narayan Iyengar, the senior vice president of digital and e-commerce at Albertsons. At the Shoptalk conference, he was asked point blank why he decided to leave Disney about a year ago and come to ‘oh-so-glamorous grocery?’

“I’m here because this is where action is,” he asserted during the event’s Grocerytalk track (now being reintroduced as the Groceryshop show). “In the e-commerce and digital space, the next five or so years in grocery will have tremendous change. It’s very exciting and it’s all happening here.”

That’s contagious excitement, and Albertsons has already made some impressive moves. And to be clear, the excitement isn’t just for grocery, far from it. The same can be said for all retail channels, because they are being transformed by digital developments.

The key is to look at the digital battlefront from the high ground. That means getting out of the weeds and going hundreds of feet up.

What do you see? Using a Disney analogy, I see a new kind of theme park. Retail has become a digital theme park — there’s E-commerce Land, Digital Marketing World, Artificial Intelligence Village — and so on.

OK, maybe you say this sounds fairy-tale-ish. Or you maybe you think this isn’t your version of fun. Perhaps you don’t like the rides. But this is where the action is.

Plus, there’s really no choice. There are signs that e-commerce will move faster at retail than expected. Pure-play e-commerce companies are benefitting from access to data that’s more robust than physical-world data. Mobile marketing is proving itself as a retail star. Retailers are already offering case studies on how technologies ranging from augmented reality to machine learning have provided advantages for customer experiences.

No one knows how all this will play out. There’s no guarantee of a fairytale ending.

Nevertheless, this is once-in-a-career excitement. The trick is to feel more excitement than fear.

What does it mean to move forward in all this?

  1. Experiment, test, and learn. No one has all the answers;
  2. Pick your spots. You don’t want to battle Amazon across all its businesses;
  3. Don’t forget about the physical store. Digital strategies will help advance the store; and 
  4. Keep your focus consumer-centric. It’s best to be agnostic about platforms. Let the consumers decide.

It doesn’t even matter if a retailer embraces digital for the right or wrong reasons. There are cases in which retailers decided to switch to digital advertising and marketing because it saved money over print. That’s probably not the most visionary reason to go digital, but whatever gets you there is ultimately okay.

I see some incredible new senior digital talent being added to the traditional retail ranks. They are passionate. Tap into that excitement.

The point is, engage with this new digital theme park.

You can even learn to deal with the digital roller coaster.


David Orgel is an award-winning business journalist, industry expert and speaker who was the longtime chief editor and content leader of Supermarket News. He is currently the principal of David Orgel Consulting, delivering strategic content and counsel to the food, retail and CPG industries.

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