I can't recall, since the venerable "grey lady", The New York Times went to color several years back, a full page color ad in the sports section. Yet, on this morning's read, there it was--page D2, inviting me to "Be a Part of History, Summer 2007, when "Beckham comes to America".
Right, for a cool million a week (including endorsements, we don't actually know his team salary, according to the second front page feature in The Times, The New York Post reports his actual salary at $10M a year); with his "co-brand" Posh in tow (who apparently has hopes of launching an acting career).
So, it is fundamentally a marketing bet, made by those who have nothing to do with football (er, "soccer"). As for Becks himself, he claims his motivation is to bring soccer to the same level of prominence as other sports among American kids--right again, the million a week has nothing whatever to do with it 
First impact? His new team, the LA Galaxy sold 1000 new season ticket subscriptions yesterday. Not bad. With a top ticket price of $3000, he needs only 2000 more tickets to offset the salary (after all, the Galaxy doesn't pay his endorsements). So, potentially a better deal than Real Madrid (his former team), who paid him $8M a year, and sat him for most of this season (Real also retained 50% of his "image rights"; the Galaxy get none of this). When his previous team Manchester United, of the English Premier League unloaded him to Madrid, they sold his contract in its last year. Madrid got nothing for the transfer to the States. For you fans of the world's most popular sport, you may recall his less than stellar perfomance in last year's World Cup (won by Italy), with his subsequent forfeiture of the captanship of the side; followed by his unceremonious dismissal from the English team roster.
So much for the math. Here's the sport/business/marketing crux of the issue--at 32, can Becks still play? (Or, as I expect he is thinking, can he shine against the decidedly second tier talent of the Major League Soccer?). If so, The Galaxy, MLS, and the sponsors presumably win--if not, a big gamble costs lots of people lots of money for little return. Think about it this way--Michael Jordan, in his prime, was as big a bankroll as Becks. Past his prime? When I last looked, Michael does hot dogs and tee-shirts, and Nike's Air Jordan range is nowhere near the on-fire brand it once was.
Past the momentary buzz, past the glare of the paparrazi, and their near ADD attention spans, the proof of this deal will be on the pitch--can Becks still "bend it"?
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| Posted by Ira Matathia at | | | |
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Anyone who's been following our work knows we have a lot of time for Marshall McLuhan, and his core notion that "the medium is the message."
A lesson that seems to have been lost on two recent "new" media initiatives, one of which, happily has been abandoned before getting off the ground:
--Banner advertising across the toll plaza of New York's George Washington Bridge. Geico was the mulit-million dollar sponsor; the program was killed by civic activitsts, on the basis of "visual blight"
--Ads placed in the trays used to pass carry-on luggage, coats, computers, etc., at airport security.
What do these two examples have to learn from McLuhan? Simply this: both toll plaza traffic tie ups (often running upwards of an hour in New York rush hours) and airport security are probably two of the most unpleasant, stress-producing experiences one can imagine. Not sure I'm feeling particularly receptive to brands in these environments, nor am I likely to generate favorable impressions of the brands that become part of those experiences?
Just a thought
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| Posted by Ira Matathia at | | | |
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| There are many new segments of women emerging today, largely because the definition of “having it all” is changing: It is becoming self-defined rather than society-defined. Women are accepting, even embracing their imperfections and limitations as they realize that trying to be everything to everyone all at once is both unrealistic and unnecessary in a post-feminist world.
The follow are some emerging trends for women, some of which are outlined in Next Now: |
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| Posted by Marian Salzman at | | | |
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| One of the most divisive issues facing the European Union is Turkey’s application for membership. Politically, strategically and economically, there are good reasons to bring Turkey into the fold and foster progress there. But Turkey is a large, poor and populous country, sprawling from Europe into Asia, and culturally it presents a worrying prospect for many Europeans. The world will be watching as Turkey continues its push for EU acceptance--or perhaps opts to join a more aligned Gulf States.
Among the other emerging trends in Turkey:
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| Posted by Marian Salzman at | | | |
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Two interesting, and unrelated (?) items from the same newsletter (Agenda Inc's Live Feed).
As reported by The Wall Street Journal (12/2), the nation's leading natural and organics food chain reported projected 2007 growth slowing to the 6-8% range (which sounds pretty bloody good to me , off from 11% growth for 2006 and a peak of 14.9% in 2004. The street punished the stock -23% on 11/3.
I'm guessing (despite the denials of Whole Foods chairman), that what's really on the mind of Wall Street is WalMarts earlier this year announcement of a major push into the organics space.
So, what's a niche marketer to do?:
The chairman cut his salary to $1--admirable, but not likely to improve the bottom line
Far more interesting is the announcement of a Dallas test of a full-service, in-store spa, with a full menu of treatments, including a 10 minute "pick me up" massage, and a full spa food menu. Dubbed, REFRESH, it includes the sale of a range of natural cotton clothing and bedding, a range of high end beauty and body products, and a full service "food concierge" , who will shop, meal plan, suggest gifts, and deliver (all for a mere $20/hour).
Small luxuries, time as currency--spot on.
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| Posted by Ira Matathia at | | | |
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Had the chance to attend Yahoo's research summit, where their new "Brand Advocates" study was unveiled. The study concentrated on 4 key categories (automotive, hotels, consumer electronics, and home loans). It suggests that the Internet is functioning as an "amplifier", enabling the advocates to reach significantly larger audiences. Acvocates now represent a full 40% of online purchasers. The key differences between advocates and non advocates lie in their communicativeness: 44% interact in an online community, vs. 16% among non-advocates; 44% read a friend/family blog, vs. 15%, 40% answer, comment or give an opinion online, vs. 14% (and the overwhelming majority of the opinions are positive).
This notion of peer to peer advocacy was one of the underlying principles of our book, Buzz. When we did the work in 2003, we estimated the cohort represented about 20-25% of the population, and we expected it would continue to grow. What Yahoo is suggesting is that it's getting quite near "mainstream".
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| Posted by Ira Matathia at | | | |
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| Next year, look for the nuclear family will go even more “nuclear,” with sperm-donor siblings seeking each other out. At the same time, dating will turn more traditional, as the West puts a modern spin on the arranged marriages of the East. And while we’ll never know whether Tom Cruise’s marriage to Katie Holmes was “arranged,” look for more unlikely alliances—seemingly strange pairs will become friends as fast as they become foes and then friends again, feeding the insatiable tabloid machine.
These trends are poised to shatter cultural norms, redefining once-hallowed ground such as family, religion and marriage, to name only a few. When we look back a year from now, we’ll ask, “Have we gone too tabloid?”
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| Posted by Marian Salzman at | | | |
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| Today more than ever, we are what we eat. However the thought is served up—plain and unadorned or garnished with wit—“You are what you eat” is proving true on many levels. On the most superficial level, people have always identified other nationalities with distinctive foods. On a deeper level, cultures are often strongly influenced by their predominant foods. And we now understand that “You are what you eat” applies at a cellular level as well.
Among other emerging food and beverage trends:
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| Posted by Marian Salzman at | | | |
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| As time becomes increasingly valuable in our busy lives, we rely more heavily on catchphrases to quickly express new ideas and concepts. They help us express where our society is at during a particular moment in time. These are some “now” phrases that serve as snapshots of where we’re heading: |
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| Posted by Marian Salzman at | | | |
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Interested to read on Brandweek.com a note that BzzAgent, who have had quite a success as a provider of buzz marketing services to clients and agencies has discovered a reduction in their rewards system resulted in no significant drop off in "agent" activity.
Indeed, "being in the know" is its own reward to those who are the critical "human media" of buzz. See our 2003 book, Buzz, for more information on "Alphas", and the all critical "buzz spreaders", the "Bees"
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| Posted by Ira Matathia at | | | |
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