John Akerson's Thoughts

Business, technology and life

Smart Advertising

NPR had a really wonderful Morning Edition about the value New York City’s Times Square billboard Space on December 30th of 2010. Their piece had the inaccurate (but executive pleasing) title:Billboard Advertising In Times Square Pays Off   I was listening while driving to NYC to see the ball drop.   Does that advertising really pay off? Not necessarily.  SMART advertising pays off but there were two pieces of advertising in Times Square that could have been vastly improved.  Looking at the TDK advertising, as I did for about 5 hours on New Years Eve, it was striking how counter-productive it was.  I went back to the podcast and transcript, and confirmed that in the radio piece, Lisa Chow of WNYC interviewed John Connolly, Chief Operating Officer of Duncan Donuts.

Lisa said “Let’s see who’s advertising here. We’ve got Toshiba, Budweiser, Dunkin’ Donuts.”

Lisa did not even mention TDK. Lost in the crowd of a million freezing new year’s eve rockers in Times Square, I saw the enormous TDK billboard too. I researched it, and found that  TDK upgraded their billboard in December of 2010.

Everyone noticed the TDK billboard. How could you NOT notice it? Lisa Chow may have noticed it, but didn’t say a word. The problem is that advertising isn’t always SMART advertising.  In the New Year’s Eve crowd, I heard several people ask aloud if Cassette Tapes were making a come-back.  

I suppose that just KNOWING what a cassette is qualifies me as an old person, but if the old people know what TDK is because of cassettes, and the younger people don’t know what TDK is, what value does TDK get from a multi-million dollar billboard in NYC’s Times Square?   I think their value is less than zero. the billboard does nothing to tell any of their possible customers what TDK does, and because there is no connection to current products, viewers are left with the “are cassettes making a comeback” thought – or for younger viewers, the billboard gives absolutely no idea what TDK is.

What is TDK today, beyond the cassette? It is a huge, successful company that reported during their 1H FY2011 period – coverinf April 1, 2010 to Sep 30, 2010 –  they had $5.2b in net sales and  >84,000 employees.   TDK makes billions by producing and selling huge quantities of unmentionable electronics bits: capacitors, displays, print heads, transformers, etc.  Impressing people in Times Square is likely one of the purposes of their advertising. That billboard isn’t very smart advertising because only an extraordinarily small percentage of people passing One Times Square will ever look at their website, products or financials. The billboard doesn’t mention their website, their products, their global scope If they are spending this much money on advertising, perhaps they should use the display space to let people know that TDK is more than cassettes.  Perhaps a newly inspired “TDK-Inside” logo for this century??

Perhaps smart advertising could tell people what TDK is, what it does, who benefits from its products and why there is some advantage in selecting or using products that have TDK inside… Smart advertising could illustrate features, benefits and competitive advantages for TDK. (just like it does for anyone)

*Thanks to TDK for all those SA-C 90’s, and thanks to Tapedeck.org.

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January 4, 2011 - Posted by | Competitive Advantage, Marketing

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