The lure of cheap online advertising, the new economy... and you

Do you want the good news first, or the bad news? It all depends on which side of the advertising coin you fall on...

Oh, all right, I'll give you the good news first: online advertising is becoming cheaper than ever. According to a recent Business Week article, Ad networks (the ones that buy space on lots of little sites as opposed to a few large ones) are transforming the industry in such a way that many big, traditional advertisers are choosing to shift their budgets.

"Several industry sources estimate that, out of the $8 billion advertisers spent on display ads last year, 70% went directly to Web sites and 30% to ad networks. This year, based on spending shifts in the past month or so, they project the mix could move to 50-50."

What does this mean? First, advertising is a lot less expensive (as low as $2 per 1,000 views as opposed to $40 per CPM) and second, your ads can be viewed by a whole host of target audiences and sub-targets that you might not ordinarily reach.

The bad news? If you're a content provider, times are tough. The whole industry is changing and it would be very difficult, if not impossible for a media outlet to survive on a diet of advertising dollars alone. But I bet you knew that already. Aside from the major kids entertainment players who still churn out original content on a regular basis (i.e. Disney, Nickelodeon, PBSKids, KOL, Discovery) nearly everyone else has shifted to a virtual world, gaming, retail or software-based business model.

The other bad news? If you are advertising to kids or their parents, your ads could show up on sites that --shall we say --aren't exactly in line with your brand. And you might not even know about it.

My advice? It all depends on your brand. What are you advertising? Who are you trying to reach? If kids are your primary target, you might be better off spending your precious ad dollars somewhere else (even if the CPM is higher) for no other reason than to preserve your brand's integrity. However, if the parent audience is the one you seek, go for it. Moms and Dads surf the net constantly, they've completely taken over Facebook, and the Mommy blogging community is growing about as fast as these ad networks are growing rich.

The key to parents' pocketbooks? Free - and family friendly

Like many Americans, I find myself spending a little more time each month reviewing the monthly expenses now that we're in the midst of these exciting economic times. What I discovered though surprised me. I've given up on many of my favorite discount chains, warehouse clubs and specialty retailers in favor of something else entirely: the lure of a kid-friendly shopping environment, often with built-in free childcare.

My children are now almost 2 and 6 - and although I love them dearly; I absolutely despise shopping with them. The whining, the frequent bathroom trips, the standing up in the shopping cart... it's enough to drive a mother away from her favorite stores. Take grocery shopping, for instance. I used to love the convenience, prices and club card discounts at our neighborhood Safeway. The specialty items and inexpensive wines I found at Trader Joe's. Shopping in bulk at Costco. Supporting local farmers and selecting from cleverly selected kid-approved items at PCC. No more. Now I shop almost exclusively at QFC or drive across town to Fred Meyer. Why? Because they offer free childcare. I drop my children off at the "Quality Fun Center" or Fred Meyer's Kids Club and my kids have fun drawing pictures, playing dress-up or racing toy cars while I shop. In peace. Which gives me time to think: wouldn't Trader Joe's, Safeway, Costco or PCC like to have a piece of my family's $800 monthly grocery budget back in their pockets? What's holding them back? And, by the way, does QFC or Fred Meyer have any idea how much more money is coming to them because of their childcare offerings? I don't think so - they don't even promote the service online or offer any information about it other than what you can find out in store.

How about some of my other, formerly favorite retailers: Target? You stock so many great kids products and I love your merchandise, but my kids act so poorly in your store, it's just not worth it. There's no place for my kids to go except go crazy. Nordstrom? Used to love you too, especially when I could breastfeed my children in your luxurious women's lounge areas and park my stroller in an oversized dressing room. No more. The fish tank in the kids department just doesn't cut it.

At this stage (and by the way, retailers, it's a long stage... I don't anticipate that my kids are going to improve their behavior or suddenly gain loads of patience for many years to come) I find myself exclusively shopping at stores or dining at restaurants that are family friendly. Take Barnes & Noble. Never used to shop there before; was more of an Amazon.com or independent book store kind of girl. But now I heart Barnes & Noble and even bought into their membership program because I anticipate shopping there much more in the future. The story times, kids play area and free gift wrapping completely sucked me in. Outside of the holidays, I don't gift-wrap anything. Period. So that means that if a retailer does not offer this service to me for free, I won't shop there. It's just not worth it. I recently joined a gym. Why? Free childcare. Well - it's not free exactly ($3/hour) but free enough for me. Ditto for restaurants. High chairs, kids menus and crayons are so yesterday. Now when our family goes out to eat, we venture to places like the Montlake Alehouse, complete with padded kids mosh pit and dozens of toys, or Vios, an upscale Greek restaurant with a separate kids play area.

Now I do realize that this kind of thinking may not be especially financially savvy on my part. An article in yesterday's Seattle Times outlined 7 Bad Money Habits (and how to cure them). What's the number 1 bad money habit on the list: The lure of "free." Even Dan Ariely, the James B. Duke Professor of Behavioral Economics at Duke University and author of "Predictably Irrational: The Hidden Forces That Shape Our Decisions" is quoted in the article as having purchased the wrong car (car!) because Audi offered free oil changes for three years (about a $200 value.)

All I'm saying is that many retailers, restaurants, grocery chains, fitness centers, nail salons and the like could all benefit immensely from the lure of "free." Need help developing a strategy? Hey, feel "free" to contact me anytime.

Grrrr! Tony the Tiger exploits children, parents and the entire grass-roots community movement

Normally I'm all for rebranding efforts, especially if say, your brand happens to be especially unhealthful, loaded with sugar and empty calories. But when I saw Kellogg's latest Frosted Flakes advertising campaign, complete with a Super Bowl ad, beautifully-designed website, theme song and a mission statement-- I thought: wow, the Kellogg's ad execs (or Leo Burnett) are either really onto something or this is one of the most egregious advertising campaigns I've seen in years. Are we really supposed to buy into the "Plant a seed. Nurture it. Help it Grow" concept from Tony The Junk Food Tiger?

Check out the campaign mission statement:

"Kellogg's Frosted Flakes believes that every kid should have a place to be active and play hard so they can be their very best. But as communities everywhere face difficult financial decisions, many are finding themselves without the funds they need to maintain their local playing fields. This is why we are committed to rebuilding athletic fields across America. On the right field, it's amazing what you can grow.

Here's the fine print listed in the Official Rules: 30 grand prizes will be awarded to local playfields in need of makeovers. Each amount will not exceed $15,000. Not including the cost of the website, publicity or the Super Bowl ad spot, which I'm sure was substantial-- Kellogg's contribution to this worthy cause will not exceed $450,000. This amount is essentially a drop in the pan for Kellogg's-- money that could have been spent on a campaign that is more in line with Frosted Flakes branding, personality and core values.

My final verdict? It' not a bad campaign. In fact, it's a very, very good campaign that just happens to be paired with the wrong brand. If a sporting brand were to embark on the same mission, it would be a perfect fit. Cause-related marketing is one of the best ways to engage your audience and do something good and Kellogg's simply missed the mark. Big time. If I were Kellogg's next time I'd choose something that makes them look less like a bunch of Frosted Fakes and more like a grrrreat cereal brand that understands the nuances of its target audience.