Life Without TV. Will Radical CMOs Reshape Marketing?
As the upfronts loom many big brands – like General Motors and Citibank – are slashing their spends on television advertising out of necessity. But another factor to consider is the maverick CMO who is willing to spend a lot less on TV advertising or cut it out entirely. Partially, it’s a response to market conditions, but some marketers say the economy is prompting them to take a chance on new forms of marketing. Susan Lintonsmith, CMO for Red Robin, said the economy is definitely one impetus for going without TV. “It’s a little of everything,” she said. At Best Buy, CMO Barry Judge has another view: TV advertising is important, but can be undermined by a bad consumer experience, so he cut his TV spends by 40 percent and opted to spend it on increasing staff in the company’s stores and on improving the company’s Web site. Other marketers are moving away from TV because they feel that there are other needs their communication budgets need to fulfill. Like in the case of Century 21st, where the CMO felt that the brand had 98% awareness, and that their customers were looking for information in other areas. Research has shown them that most potential home buyers or sellers—about 87 percent—go online before making a purchase. So they took money out of TV and are reallocating it to online—namely paid search, display ads and social media. Read the full story in BrandWeek.