Co-write, edit and place quadrantONE CEO Andy Ellenthal's op-ed in Adweek/Mediaweek/Brandweek







Local Target Practice

Sept 27, 2009

-By Andy Ellenthal


If you’ve ever bought or sold cable advertising, you know that local cable is more expensive—albeit much more targeted—than national cable. In a previous life, working with television media marketers, I routinely fielded the question: “Can I buy run of network nationally but target my creative locally?” And my answer was always the same: “Not yet.”

Fortunately, buyers don’t have to put up with that response anymore—thanks to online display advertising. With it, you can buy what you wish: a market, an audience, a context, etc. Generally, we can tell where a user is coming from via their IP, their registration data, their preferences or the site’s geographic footprint.

This has left me wondering, with all this data just waiting to be used, why aren’t more marketers buying nationally and targeting locally? Can anyone argue that a relevant message would be any less effective?

According to an Oct. 2008 study by Sterling Market Intelligence, zeroing in on local customers is more appealing than ever. The firm’s research shows that nearly half of the national advertisers surveyed were pursuing online local advertising, and more than 40 percent were dedicating at least a quarter of their online marketing budget to local targeting.

Geotargeting online is a simple way for advertisers to take advantage of the efficiency that comes with a large footprint buy, while increasing the creative power of being able to reach an audience directly with your message. The campaigns that work best are ones that promote geographic-appropriate products: lawn chairs in Phoenix, say, or snow blowers in Boston.

For those who fear that local targeting means fragmenting the message, remember that an ad can maintain overall brand consistency even as it promotes specific, relevant merchandise. Some of the more inspired creative ideas I’ve seen involve the use of automated tools to serve up perfectly targeted messaging. For example, a geographically relevant campaign serves one message to an urban user and another to a suburban one.
The latter may prefer a lawn mower where the former needs a storage unit. Different needs, tailored messaging, same brand.

Car advertisers are adept at creating ads that keep a real-time count of a local seller’s inventory, which works as a beautiful psychological come-on. Then there’s what I like to call “barometer ads”—retail ads that link up weather systems to sell umbrellas on rainy days, sunscreen on bright days, bathing suits on hot days and chicken soup when the temperature drops.

Some of these tactics are so obvious, you wonder why you never thought of them before. Take, for instance, strategic mapping to a user’s location; think a cruise company buying nationally, but driving traffic to the closest ports of call. How sharp is it when an area insurance agent uses mapping to send users to the nearest event or location to increase foot traffic?

It’s been my experience that direct-response advertisers have been the best early adopters of the Web’s targeting capabilities. The true experts have been the dating sites. They have managed to take the local-targeting technique to the next level by buying wide yet keeping the message granular. One no longer needs to worry that a “local single” will turn out to live in New Jersey when your ad clearly specifies “singles with the 212 area code.” (Talk about geographically desirable!)

While the possibilities are infinite, there is always an opportunity cost. However, new automation tools and technologies can help streamline the creative process. I am continuously impressed at the level of relevancy and engagement that ad units are able to provide when they combine a strong database and breakthrough creative with the right media.

The result is greater efficiency for advertisers to produce more relevant messages—a win for consumers and brands alike.

Andy Ellenthal is CEO of quadrantOne, which offers exclusive ad inventory of premium local news and information sites on a national scale.

QSRWeb profiles how BrandIndex tracks consumer perception data for dining chains





>Branding & Franchising

BrandIndex offers insight into consumer perception
Christa Hoyland

23 Sep 2009

Regional chains Carl's Jr. and Hardee's and their 3,100 stores wouldn't seem like much of a threat to McDonald's prominence in the burger category. But the chains chose to bring out the heavy artillery after McDonald's launch of its Angus premium burger line.

To draw consumer focus to their longevity in the premium-at-a-value category, the sister brands pulled out their versions of McDonald's Big Mac from their research and development stockpile. They supported the launch with snarky comparison ads, promoting the Big Carl's and Big Hardee's bigger size, better quality and lower price.

According to data from YouGov's BrandIndex daily consumer perception research, the ads hit home. The data shows over a period of less than a week, from Sept. 11 – Sept. 16, Carl's Jr. value perception shot up nearly 5 points from 4.6 to 9.4 with adults 18 and older. Hardee's value perception grew more modestly, from 8.8 to a 9.4.

At the same time, McDonald's value perception scores took a nosedive, falling from 25.1 on Sept. 11 to 10.9 on Sept. 16.

Ted Marzilli, global managing director of BrandIndex, a service of YouGov, said the survey results indicate that the Carl's Jr. and Hardee's campaigns seemed to be hitting their mark.

"The short-term data shows that the ad campaigns for both Carl's Jr. and Hardee's have been impactful and that they've improved the value and quality scores for those two brands" while having a negative impact on McDonald's scores, he said. "To some level, that's not surprising because the ad campaigns are very much head to head comparisons with McDonald's on price and quality, so I'd say that the campaigns are having the intended effect to a certain degree."

But those scores don't tell the whole story. During that time and into this week, McDonald's satisfaction and "likely to recommend" scores went up, from 35.6 on Sept. 9 to 41.7 on Sept. 21 for satisfaction. Likely to recommend scores went from 2.7 points on Sept. 9 up to 17.5 percent on Sept. 21.

With those scores improving over that period, it demonstrates that consumers are having a good experience at McDonald's and that advocates of the brand are continuing to recommend it, Marzilli said.

Choosing how to respond

Watching a competitor's results can help a brand choose whether to respond or to wait a few weeks to see if the consumer perception returns to prior levels.

So should McDonald's be worried? Probably not, especially since a look at BrandIndex's data for McDonald's over the last year shows that the brand's quality and value scores have actually improved, he said. But it would be worth it to the brand to keep an eye on the short-term results to determine if the campaign would be having any reaching effect. (By yesterday, McDonald's value scores were up to 28.9.)

And McDonald's is not too concerned about the blip in value scores but remains focused on overall value as well as quality food and convenience, said the company’s spokeswoman Danya Proud.

"Today, we're serving more customers than we ever have. And, according to research from NPD Crest, despite QSR traffic declining among 18-34 males, our share among this group continues to grow," she said. "Additionally, our research shows that we consistently rank among the best in the industry, in consumers' perceptions of value.

"We continue to be focused on long-term growth vs. short-term gains. And business results speak for themselves. As previously reported, the Angus Burger contributed to positive comparable sales growth in both July and August."

Self-service tools, periodic analysis

For BrandIndex clients, which don't include Carl's Jr. or McDonald's, the consumer perception survey service provides brands with data that can be used in a variety of ways, including as a campaign planning tool, a barometer of that campaign's impact, a measurement of brand health and a glimpse at how a brand is standing up to its competitors.

BrandIndex interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of more than 1 million individuals. Results have a margin of error is of +/- 2 percent.

Participants answer questions such as "Is the brand high quality or low quality?" or "Does it give good value for what you pay?"

Marzilli said the service provides breadth of coverage by measuring top brands as well as two years of historical data. The data also can be broken done demographically, allowing brands to determine how it is doing in target segments.

The daily data also can help companies going through a public relations crisis by allowing them to compare their results to other brands that have had similar crises. "They can use it as benchmark so see how serious a crisis they're going through to help decide them decide whether they want to lay low few weeks or act now," he said.

Clients use the service for their daily data mining as well as for receiving periodic reporting and analysis. Subscribers can access the BrandIndex database and can use online tools to create charts as well as note significant and meaningful movements. That service is particularly helpful with campaigns like Carl's Jr.'s to determine their effectiveness.

"You get a very early read on if you're making an impact with consumers," Marzilli said. "The real test is, over the next week or two or three, does that campaign bring more people into the restaurants purchasing the new products or making any purchases? Because ultimately the advertising is made not only to drive awareness but to drive sales."

IMG joint project with Cesar Millan hits nationally on the Associated Press

Add Image

Dog whisperer Cesar Millan adds Cesar's Way magazine to television, book and education empire

———

On the Net:

http://www.cesarmillaninc.com

BrandIndex shows Mediapost that impact of Carl's Jr./Hardee's ads vs. McDonald's came and went

Do Latest Carl's/Hardee's Efforts Hit The Mark?

Carl's Jr/Hardees---JB Smoove

The latest campaigns from Carl's Jr. and Hardee's -- in response to McDonald's July introduction of its Angus Third Pounder burger -- seem to have gotten the chains' value message across to consumers, based on BrandIndex scores between Sept. 11 and 16. But the impact may now be wearing off.

The McDonald's premium Angus burger directly competes with Carl's Six Dollar Burger and Hardee's Thickburger, both of which use Angus burger and sell for $3.99.

In response, the chains' parent, CKE Restaurants, last month launched the Big Carl, a competitor to the Big Mac that's billed as having more meat and cheese and being priced at $2.49 or less, versus the Mac's average price of $3. In addition, on Sept. 14, Hardee's officially launched the Big Hardee, another head-on competitor to the Big Mac. This one's priced at $2.29 and also boasts more meat (three beef patties vs. Mac's two patties, three buns).

Both launches are being supported by commercials on both chains' Facebook pages and on YouTube, featuring comedian J. B. Smoove. The videos, described by CKE as "inspirational rants" against "the oppression of over-priced, under-whelming products," make direct comparisons between Big Macs and CKE's new competing burgers.

In addition, both chains are now airing TV ads featuring CKE CEO Andrew F. Puzder that directly compare the Angus Third Pounder against the Six Dollar Burger and Thickburger, called the "Nothing" campaign.

BrandIndex, which gathers consumer opinions across seven brand-health indicators on a daily basis from 5,000 U.S. adults, shows the key "value" perception scores for Hardee's and Carl's taking noticeable upturns in recent days. Between Sept. 11 and 16, Carl's rose from 4.6 to 9.4, and Hardee's went from 8.8 to 9.4. The chains' quality and "buzz" scores also rose during the period.

McDonald's value score, meanwhile, declined from 25.1% to 10.9% during the same period, and its quality score declined from 3.6 to 0.3, although its satisfaction and "willingness to recommend" scores remained stable during the period.

Further, as of Sept. 17, the value score for Carl's was back at 4.6, and Hardee's' was down to 7.4.

What's one to make of all this? The simultaneous rise in value scores for Carl's and Hardee's and dip in value score for McDonald's do seem to indicate impact from the Carl's/Hardee's campaigns, at least initially, says BrandIndex SVP and global managing director Ted Marzilli.

However, overall, the positive impact for Carl's/Hardee's was more significant than the negative impact on McDonald's, Marzilli adds. And judging from those latest scores, possibly also short-lived.

More consumer press coverage for my IMG project with Cesar "Dog Whisperer" Millan

Famous People And Dogs: A Super Team


Celebrities and pets: The last two subjects that Americans care to read about.

Here we have America's newest magazine Cesar's Way, combining a popular television personality, dogs, and celebrities talking about their dogs. Every other magazine in America is worried about folding, but this invincible trifecta of American interests makes Cesar's Way the surest media bet until Jill Abramson's god damn 'Puppy Diaries' book comes along.

"Can your dog fix your marriage? Just ask Jada Pinkett Smith." That seems like a bizarre conversation.

Dogs and famous people, together at last!

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Dog Whisperer is starting magazine 'Cesar's Way'

By Richard Vogel, AP
Can't get enough of the Dog Whisperer's advice?

Cesar Millan is launching a new magazine Sept. 15 that has two publication dates in 2009 and goes bi-monthly in 2010.

While it is tough times for many in the publishing industry, pet fans seem to be hanging onto to their publications. Both Dog Fancy and Cat Fancy have seen their circulation hold steady, according to Mediadailynews.com. Cesar's Way will cover various aspects of dog ownership.

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The Dog Whisperer In Print

jpgmagcover.jpgLast year, as our economy was beginning to crumble, I was walking by a doggie boutique with my friend Randall. As we peered in at the couture collars and tutus for Shitzus, he predicted that the pet industry would be among the first victims of the recession. But I knew Randall was wrong. Certainly our country's deep bond with the canine species would help us get through these troubled economic times. We co-evolved with these beasts, they've stuck by our side through wars and famines, and they will see us through to a healthy stock portfolio, I just know it.

Cesar Millan seems to see things my way. The "Dog Whisperer" is launching a new magazine called Cesar's Way, and it hits newsstands tomorrow. The Wall Street Journal had a peek at the publication, and says it is:

filled with slick photos of celebrities such as Mariah Carey, Paris Hilton and Jennifer Aniston with pets in tow. Articles include "Can Your Dog Fix Your Marriage? Just Ask Jada Pinkett Smith" and "7-Day Doggie Detox."

Okay, so it sounds like utter schlock. All the more reason to think the mag will be a big hit. Wouldn't you rather look at pictures of puppies than read the Economist?

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'Dog Whisperer' Cesar Millan Launches New Magazine

Categories: Dogs, Pets in the News, Celebrity Pets


On newsstands now! The debut issue of Cesar Millan's new magazine. Photo: IMG Publishing/Cesar Millan


Known by millions as the "Dog Whisperer," Cesar Millan has been helping problem canines and their owners for the last twenty years -- and has become a media sensation in the process. There's his wildly popular show "The Dog Whisperer" -- about to launch its sixth season on the National Geographic channel on October 9 -- multiple best-selling books, and a foundation that Cesar and his wife of 15½ years, Ilusion Wilson Millan, created to rescue dogs across the country.

Now, the Millans can add a magazine to their list of achievements.

Entitled Cesar's Way, the magazine is a joint venture between IMG Publishing and the Millans. The glossy bi-monthly publication, which debuted its first issue yesterday, features training articles penned by Cesar, health tips, real life tales, and celebrity profiles.

Recently, Paw Nation spoke with Ilusion Millan, the magazine's editor-a t-large, about Cesar's Way.

How did the magazine come about?
It's a labor of love. Once we published our books, we decided we needed something to reflect our worldview of what we do, that people can subscri be to, and get up-to-date information about our lives.

How would you describe the magazine?
It's a lifestyle and pet magazine. We wanted to really engage the reader with information and just make it a fun thing for everybody to read. It's not purely educational.

What do you hope to achieve with Cesar's Way?
We hope readers can see a little of themselves and their dogs in this magazine. We want to enhance people's knowledge about their dog, so they have better, more bonded, loving relationships that are fulfilling both for the person and the dog.

Will Cesar be on the magazine's cover every month, as Oprah Winfrey is on O, The Oprah Magazine?
We're still determining that. We wanted to launch the magazine with Cesar being the face because there are people who may not know who he is. [Editor's note: Over 10 million viewers tuned in each week to watch The Dog Whisperer last season.]

What will you be doing as editor-at-large?
I'll be approving and overseein g the content, putting in my two cents creatively, and ensuring the Cesar Millan brand and philosophy are represented accurate ly. I'll also be writing a column for each issue where I get to share a little bit about myself and how my life works around Cesar, our children [sons Andre, 15, and Calvin, 10], our businesses and our dogs.

Like sharing how you met Cesar at an ice-skating rink when you were 17 years old?
Yes! [Laughing.] My friend called him for a ride and he and I just looked at each other and smiled. I heard, "He's the one." I looked behind me, but there was no one there. It was so crisp and clear. Right the next morning, he called to ask me if I wanted to go out for tacos. Now, normally you don't ask a girl to go out for tacos for breakfast -- that doesn't work. But I knew exactly what he was up to. I agreed. And we hit it off from there.

You have famous fashion photographer, Gilles Bensimon, doing the photography for Cesar's Way.
I was very excited about that and proud that Gilles was going to take the pictures. We love him very much.

Are you amazed at all that you and Cesar have created?
I'm just really grateful that God has put us in this place and given us the opportunity to grow in an immense way. Dogs are so amazing; they have taught us so much. An d I'm really grateful to our fans as well. They have given us the opportunity to help them and learn from them, too. People say, "Oh, the teacher is going to come and teach us," but we forget that the teacher is also learning.

What types of articles can readers look forward to in the magazine?
Stories about people who've made their dogs a part of their family and been inspired by these amazing relationships that exist between people and their dogs. We want to give you the information to be a better pack leader not only with your dog, but in your life, as well.

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Is the 'Dog Whisperer' leaving behind his pack for a new venture?

The “Dog Whisperer,” Cesar Millan is unleashing a new venture in his media enterprise with the launch of his magazine – Cesar’s Way. The dog behavior expert is already credited with a television show, DVDs and books in his empire.

Surprisingly the magazine will not focus solely on dogs and dog behavior. It is being called a “lifestyle” magazine by publishing company IMG Worldwide. It features glossy pictures of celebrities such as Mariah Carey, Paris Hilton and Jennifer Aniston along with their pets. And the magazine features stories like, “What’s Sandra Lee Cooking for Her Secret Love?”

Lee Rosenbaum, vice president of IMG says, “We show (people’s) lifestyles and how dogs fit within their lifestyle. It’s a bit of a mixed breed.”

Cesar’s Way was created to compete with successful pet magazines such as The Bark, Modern Dog and the online magazine PEOPLE Pets and cash in on the pet craze. It is also trying to gain readers and advertisers from other publications such as Martha Stewart Living and Country Living which have expanded their pet coverage.

But do we really need another “lifestyle” magazine? Perhaps Cesar Millan should stay in his area of expertise of correcting dog behavior and educating people to be responsible pet owners. This is especially important in-light of stories like the one coming from Maple Valley, WA where an irresponsible owner allowed his five dogs to attack and kill two rescued horses at an equine sanctuary last week.

Instead of trying to become a household name through his relationship with celebrities, perhaps Millan could stay in the public eye by continuing his worthwhile projects that have saved the lives of many animals.

For instance, earlier this year Millan worked with Last Chance for Animals to uncover abuses at a puppy mill. He also spoke in support of a pet shop called Pet’s Delight that promoted the concept of “humane adoptions” by selling dogs that have been rescued from city shelters.

And he could further his public image by speaking about the accomplishments of his non-profit organization called the Cesar and Illusion Millan Foundation that rescues, rehabilitates and adopts abused and neglected dogs.

IMG sees a lot of potential for Cesar’s Way which will hit the streets on September 15th. They want to make Millan a recognizable name in every home. Let’s hope this new venture doesn’t make Cesar Millan forget about his roots and leave behind all of the good work he has accomplished on behalf of dogs and abused animals.

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Dog Whisperer launching magazine


Shh. What's that? It's either the rustling of money or Cesar Millan whispering about a new venture...maybe both.

The canine trainer famously known as The Dog Whisperer is launching a new magazine called Cesar's Way. This is in addition to his book, products and TV show about helping dogs with behavior issues.

The Wall Street Journal reports: Cesar's Way, which hits newsstands next week, is filled with slick photos of celebrities such as Mariah Carey, Paris Hilton and Jennifer Aniston with pets in tow.

Articles include "Can Your Dog Fix Your Marriage? Just Ask Jada Pinkett Smith" and "7-Day Doggie Detox." IMG says it plans to publish two issues this year and six in 2010.

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Look what Cesar’s stepping into now


cesarmagTV’s “Dog Whisperer” has sniffed out some new turf: He’s launching a

magazine that will hit newstands next week.

The magazine — dubbed Cesar’s Way – will be a joint venture between Cesar Millan and the New York sports management and entertainment firm IMG, the Wall Street Journal reports.

The Journal reports that the premier issue is heavy on celebrities, with Mariah Carey, Paris Hilton, Jennifer Aniston and their pets filling many of its pages. Articles seem to have a celebrity bent as well, including “Can Your Dog Fix Your Marriage? Just Ask Jada Pinkett Smith” and “7-Day Doggie Detox.”

IMG says it plans to publish two issues this year and six in 2010.

Millan, following in the footsteps of Opray Winfrey and Rachel Ray, will see if his fame parlays into newsstand sales. He’s listed as editorial director of the magazine.

The new magazine joins about 60 other dog-related titles in the U.S., including Dog Fancy, Doggie Aficionado and Urban Dog, according to the National Directory of Magazines.

The Journal says Cesar’s Way faces the worst ad climate in decades — one that has forced the closure of such magazines as CosmoGirl, House & Garden and Domino. In the first half of 2009, magazine ad revenue plunged 21% from a year earlier, according to the Publishers Information Bureau.

Nevertheless, IMG and Millan think they can profit from the 75 million dog owners in the U.S. and the “recession-resistance” of the pet industry. “People have continue d to spend on their pets,” Millan said. “You always want to make sure your family is taken care of, and Americans believe the dog is part of the family.”

IMG isn’t the only company to see dollar signs in the pet market. Martha Stewart Living Omnimedia added a pet destination to its Web site this year. People Magazine introduced PeoplePets, and Honda is touting its pet-friendly Element with features such as a cushioned pet bed in the cargo area and a pet-restraint system.

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Pet Pro Profile:
Ilusion Millan


ilusion millanAs Cesar Millan has become a household name thanks to his National Geographic Channel series "Dog Whisperer" and his bestselling books, a powerful force behind the scenes has been wife Ilusion Millan. Serving as president of Cesar Millan, Inc. and Editor-at-Large of the newly-launched Cesar's Way magazine, Ilusion Millan is at work on a variety of projects from developing a school curriculum to foundation work to help homeless dogs. Recently DogTipper.com interviewed Ilusion Millan about her work and the new magazine.

In an economic climate when sadly many magazines are folding, "Cesar's Way" has launched. What is it about dogs that you believe is helping the pet industry go against the odds and succeed during this downturn?

In households all across the country, family has really become the focal point. The state of the economy doesn't change the fact that you take care of your family as best you can, no matter what. You do what you can with what you have, even in a downturn. Dogs are a part of that family unit, and I think more and more people are recognizing that. That's why the dog industry is still going strong.

As a mother, you've been able to introduce your sons to all types of dogs

and made sure they understand the proper way to safely meet a strange dog. For parents new to the dog world, do you have a tip as to where they can begin to introduce their children to dogs even if their situation doesn't permit them to have a dog at home at the present time?

No touch, no talk, no eye contact! That's a rule that my husband teaches to adults when they meet dogs for the first time, and it's something that is important - maybe even more important - for kids to follow.

Many parents teach their kids that it is okay to be excited when they see a dog, so the child will run up, give the dog a big hug, and look him straight in the eye. Dogs can see this unstable energy as a threat. Imagine if a complete stranger ran up to you and did those things.

So I would recommend that you treat every encounter with a dog as an opportunity to teach how to properly interact with an animal, and I would recommend taking time to talk to your child about compassion towards animals. If you can touch the heart of a child, that message will stick with them forever, so this is an issue that Cesar and I feel very passionately about. Our non-profit organization, the Cesar and Ilusion Millan Foundation, is currently working on a curriculum to teach kids the safe way to interact with dogs.

The goal of the program is to teach kids social and emotional skills, so they grow up to become more respectful, compassionate, and confident - skills they to become pack leaders in both the human and the animal world!

As a former preschool teacher

and a mother, you've been working with North Shore Animal League and Yale University developing the "Mutt-i-grees" Curriculum to teach preschool and primary age children empathy and care for homeless animals. Can you tell us more about your work with the program and your goals for the project?

The Mutt-i-grees® Curriculum teaches empathy and caring for homeless pets. It is a unique approach to humane education. But it is so much more. It teaches empathy and caring within the broader context of social and emotional learning, which is the classroom application of emotional intelligence.

It will teach a generation of children to be aware of their emotions and of other people and animals, to be able to think about people's actions, and our reactions - as well as make informed and socially-aware decisions. The message is take care of yourself, take care of other people and animals, take care of your community and the environment.

I am very excited about The Mutt-i-grees Curriculum and its potential for children to grow up humane in the broad sense - toward animals as well as each other.

What is remarkable is that when children learn about emotional intelligence - when they acquire social and emotional skills - they become better learners. There are so many studies that have shown the link between social and emotional learning and academic achievement.

As a former teacher and mother, I know that these skills are so essential in today's global environment. And knowing how important this will be in saving animals is especially gratifying to me.

The Curriculum starts with preschool and the primary grades, but we hope to have follow up with versions for older students in the upper elementary grades, middle school, and high school.

What's the most rewarding part of your job as president of the Cesar Millan, Inc.?

I am so proud of the work we do through the non-profit Foundation; of our efforts to help in the rescue, rehabilitation, and re-homing of abused and abandoned dogs. I love knowing that we're helping people to experience the growth and self discovery that come from realizing their potential for pack leadership. The relationship between humans and dogs gives us insight into who we really are, and I think that makes us all better people. Being a part of that transformation of human beings by way of this relationship is very exciting.

What would you like the readers of DogTipper.com to know about "Cesar's Way" and your goals for the coming months?

Our chief goal is to produce a magazine that helps you better manage the relationship between you and your dog. We hear inspiring stories every day from owners all over the country describing how their dogs have enriched their lives and given them a better sense of themselves. The magazine is about sharing those stories with a wider audience, because we think that the personal lessons those people have learned can be applied to anyone. That's very important to us. And, of course, there will be plenty of tips to help you develop your inner pack leader.

For More Information:





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BLOG MAGAZINE: "Cesar's Way Latest in Pet Lifestyle Genre"

POP HANGOVER: "Dog Whisperer Getting His Own Magazine"

I break BrandIndex's research on AT&T losing consumer favor in Adweek, Mediapost, ZDNet, AppleInsider, MacDailyNews

AT&T consumer perception drops during summer '09

Despite rumors that Apple may be looking into extending its contract with AT&T, consumer perception for the carrier has dropped lower than it has all year.

In a comparison of Verizon Wireless and AT&T consumer perception among adults 18 and older, goodwill toward AT&T has dropped precipitously compared to rival Verizon, according to daily YouGov BrandIndex data.

Urban iPhone overload and data outages during the summer season may be to blame.

BrandIndex measures “consumer perception” by averaging scores in response to questions about the quality, value, satisfaction, recommendation, reputation and impression of a brand.

AT&T has always lagged behind Verizon Wireless, but the gap began widening noticeably in mid-June, according to the data. Between June 16 and Sept. 10, AT&T’s Index score dropped from 18.3 to 14.6, “a substantial drop for this kind of score,” a BrandIndex spokesman said.

Verizon’s score dropped less than two points’ worth in the same time period.

Drops in quality (”Is it high quality or low quality?”) and recommend (”Would you recommend the brand to a friend?”) scores contributed to the overall drop, according to the spokesman.

YouGov’s BrandIndex interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of more than 1 million individuals. Margin of error is +/- 2 percent.

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AT&T IPhone Data Woes Depress Perception

iphone

For AT&T, the benefit of success that comes as the exclusive carrier of the iPhone may very well also be a burden.

Amid press reports that AT&T's network is having trouble keeping up with its customers' data usage (directly related to the iPhone adoption), company perception among adults has dropped steadily over the summer, according to YouGovPolimetrix's BrandIndex, which measures daily consumer perception of brands.

"There's been a significant amount of high-profile press in the past couple of weeks about AT&T's data problems," Ted Marzilli, CEO of YouGovPolimetrix, tells Marketing Daily. "There's no question it implies that there are some serious concerns for AT&T and Apple as they consider [extending the exclusivity of] the iPhone."

According to the company, AT&T's "Index" score (which is the average of its Quality, Value, Satisfaction, Recommendation, Reputation and Impression scores) has been dropping since mid-June. On June 16, the company's Index score was 18.3. By Sept. 10, it had dropped to 14.6. (By comparison, Verizon Wireless' score on Sept. 10 was 21.2, about the same as it was at the beginning of the year.) The company's biggest score drops were on the Quality and Recommend scales, suggesting that stories addressing data outages were having an effect on company perception.

"I think there's still only a small number of people who've given up the iPhone and AT&T," Marzilli says. "I think there's a larger number of people who want to buy an iPhone, but are hesitating because of these problems with AT&T's data coverage."

In the meantime, some damage control may be in order for AT&T [such as] putting together a plan to tell the public how they're going to address the problem and a timeline for putting it into place, Marzilli says. "AT&T has to work very, very hard to make sure those [iPhone] subscribers are profitable and happy, particularly before the exclusivity agreement runs out. Because once they leave, it's going to be very hard to get them back."

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Study shows steady decline in AT&T brand perception


Since the launch of the iPhone 3GS, public perception of AT&T has progressively decreased, while opinions about competitor Verizon Wireless remained relatively unchanged, a new study shows.


In a daily survey of 5,000 people 18 and older, YouGov's BrandIndex tracks companies based on factors of quality, value, satisfaction, recommendation, reputation and impression. When combining those categories, AT&T's index score of 18.3 on June 16 had eroded to a 14.6 on Thursday -- a change company senior vice president Ted Marzilli told AppleInsider is "statistically significant."

He said the survey could indicate that some people may pause before they buy an iPhone because they don't want to be locked into an AT&T contract. Though he believes the contract between AT&T and Apple has likely been beneficial to both parties for the last two years, the timing of AT&T's public perception decline suggests the

issue can be traced to the launch of the iPhone 3GS -- or, more specifically, the network's inability to meet the bandwidth needs of users with the device.

"It may be hindering iPhone adoption at this point," Marzilli said, "and I think Apple is going to take a hard look at what they will do next."

AT&T has always been perceived as an inferior brand to Verizon Wireless in the index rankings. However, it was in mid-June that the gap between the two companies began to widen. Though AT&T's 14.6 score in overall feedback remains relatively positive, it still lags behind well behind Verizon in consumer perception. In the last three months, AT&T's biggest hits came in the quality and recommendation rankings.

"AT&T can come out with its initiatves and its announcements, but the problem is people on the Web are starting to blog about their problems with the AT&T network," Marzilli said. "It's a bit of a snowball effect."

While the study found AT&T's score to consistently drop over the last three months, Verizon has stayed much the same as it was in January. Its Sept. 10 score was 21.2. Scores can range from 100 to -100. A score of zero would mean equal positive and negative feedback.

The BrandIndex rankings sample a representative portion of the U.S. population. The company said it conducts more than 1.2 million interviews

per year from an online panel of more than one million individuals. The company said its survey's margin of error is +/- 2 percent.

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Report: iPhone Adoption Uncovers AT&T's Flaws



NEW YORK While it was certainly a coup for AT&T to get the exclusive rights to the Apple iPhone, the agreement hasn't been entirely positive for the wireless giant. Consumers who flocked to AT&T to use the device were disappointed with the quality of the service, according to new findings from YouGov's BrandIndex.

AT&T's perception among adults over the age of 18 has steadily eroded throughout the summer, while Verizon Wireless has retained its standing, per an online poll of 5,000 consumers.

Consumers were asked to rate quality, value, satisfaction, recommendation, reputation and impression to generate an overall index score. Thanks to drops in the quality ("Is it high quality or low quality?") and recommendation ("Would you recommend the brand to a friend?") rankings, AT&T's index score fell to 14.6 as of Sept. 10. That was down from 18.3 on June 16 and is considered a substantial drop for this type of index, per YouGov.

"For AT&T, it's beginning to look like a case of 'be careful what you wish for' with its overloaded network and dropped calls," said YouGov svp Ted Marzilli. "While there are no other options for iPhone users, BlackBerry's new ultra-competitive products and two-for-one deals at Verizon Wireless may make both Apple and AT&T vulnerable to 'iPhone flown.'"

Verizon Wireless' index score on Sept. 10 was 21.2, which is consistent with its rankings throughout the year.

AT&T rep Jenny Bridges said the survey is off base. "We continue to have low churn rates, which can be attributed to the fact that our customers are pleased with the services we're providing them," she said. "We care about the experience customers have with AT&T. That's why we continue to invest billions of dollars a year in making network improvements, including the continued launch of our 3G wireless services in markets across the U.S. and the launch of HSPA 7.2 in six major markets by the end of this year."

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AT&T brand perception steadily declines as Apple iPhone taxes network capabilities
"Since the launch of the iPhone 3GS, public perception of AT&T has progressively decreased, while opinions about competitor Verizon Wireless remained relatively unchanged, a new study shows," Neil Hughes reports for AppleInsider.

MacDailyNews Take: For the umpteenth time: Take those 10+ million U.S. iPhones off AT&T and plop them on Verizon and watch AT&T satisfaction soar (especially in metro areas) and Verizon come to a grinding halt. No carrier, including Verizon's, is ready for 10+ million devices that are actually used for serious data consumption. Verizon's network accommodates inferior devices that only sip data in comparison to iPhone due to their unusable web browsers (if they even have them) and generally indecipherable user interfaces which, only benefits the carrier as they get to sell phones on features that most people will never use. The iPhone's ease-of-use (snap a photo or even shoot a video and send it over AT&T's network to wherever; robust, real Web Browsing; data-consuming apps which include streaming video over 3G, etc.) combined with the vast, rapidly-growing number of iPhones would cripple any carrier. If AT&T can't get a handle on it, Apple would do well to reconsider their exclusive U.S. arrangement and spread the wealth - and the data consumption - to other carriers, as soon as (technically and legally) possible.

Hughes continues, "In a daily survey of 5,000 people 18 and older, YouGov's BrandIndex tracks companies based on factors of quality, value, satisfaction, recommendation, reputation and impression. When combining those categories, AT&T's index score of 18.3 on June 16 had eroded to a 14.6 on Thursday... [YouGov's senior vice president Ted Marzilli] "suggests the issue can be traced to the launch of the iPhone 3GS -- or, more specifically, the network's inability to meet the bandwidth needs of users with the device."

"While the study found AT&T's score to consistently drop over the last three months, Verizon has stayed much the same as it was in January," Hughes reports. "Its Sept. 10 score was 21.2. Scores can range from 100 to -100. A score of zero would mean equal positive and negative feedback."

More info in the full article here.

MacDailyNews Take: No wireless network was ready for Apple's revolution which brought 10+ million of devices that actually use copious amounts of data coming online within a few short years. Of course, AT&T is struggling with it. Any network would. Especially in the U.S. where the land mass is huge and the terrain varied. Suffice to say, it's much easier to properly cover Belgium*, for just one example (hold the emails, we love Belgium, send beer instead!), than the entire United States of America. AT&T is somewhat unfairly paying the price in perception when any wireless carriers' network would show similar strains. As usual, Apple is pushing forward, disrupting the status quo. It's not pretty, for AT&T especially, but Apple has caused a paradigm shift in mobile computing and more rapid mobile network improvements will come from it.

All that said, the market will take care of this by either forcing overwhelmed AT&T to keep the pedal to the metal and press even harder if they want to keep U.S. iPhone exclusivity or, if AT&T's can't or won't rapidly improve their network capacity/coverage, causing Apple to pursue a non-exclusive U.S. carrier strategy lest iPhone sales and brand perception begin to suffer.

* Belgium is about about the size of the state of Maryland.

Land IMG's new "Dog Whisperer" joint venture on front of The Wall Street Journal, followed by Mediaweek & Mediapost



'Dog Whisperer' Hopes to Lead Pack at Newsstand

With New Magazine, IMG and Cesar Millan Join Chase for Ad Dollars From Recession-Resistant Pet-Care Industry

IMG Worldwide and TV's "Dog Whisperer," Cesar Millan, are looking to take a bite out of the growing pet-care market.

In the face of a harsh advertising climate, the New York sports management and entertainment firm is launching a magazine dedicated to dog owners and their pets. The new publication, Cesar's Way, is a joint venture between IMG and Mr. Millan, a dog trainer used by celebrities like Oprah Winfrey. The partners declined to discuss the project's finances.

[Cesar]

Inaugural issue of Cesar's Way. A second issue is planned this year and six in 2010.

Cesar's Way, which hits newsstands next week, is filled with slick photos of celebrities such as Mariah Carey, Paris Hilton and Jennifer Aniston with pets in tow. Articles include "Can Your Dog Fix Your Marriage? Just Ask Jada Pinkett Smith" and "7-Day Doggie Detox." IMG says it plans to publish two issues this year and six in 2010.

The magazine is the latest example of TV personalities trying to parlay their popularity into newsstand sales. Mr. Millan, who will be editorial director of the magazine, has starred in National Geographic's popular canine reality series -- think "Super Nanny" for dogs -- since 2004.

Some of the magazine industry's biggest hits have been celebrity-edited, says Lee Rosenbaum, vice president of IMG's publishing arm. "Just look at Oprah and Rachael Ray," he says.

But it's a you-know-what world out there. The new magazine joins about 60 other dog-related titles in the U.S., including Dog Fancy, Doggie Aficionado and Urban Dog, according to the National Directory of Magazines.

"Like all publications, it's been a little slow for the past two years," says Norman Ridker, founder and president of BowTie, a privately held publisher of dozens of pet magazines, including Dog Fancy and Dog World.

[advert]

In addition to its many rivals, Cesar's Way faces the worst ad climate in decades -- one that has forced the closure of such magazines as CosmoGirl, House & Garden and Domino. In the first half of 2009, magazine ad revenue plunged 21% from a year earlier to $9 billion, according to the Publishers Information Bureau.

Celebrity-edited magazines, too, have been stung by the downturn. Ad pages in Every Day With Rachael Ray fell 14% for the first six months of the year, while ad pages in O, The Oprah Magazine, slid 29%.

IMG knows firsthand how tough the recession has been. Earlier this year it closed down Tennis Week, which had been around for decades.

Still, IMG and Mr. Millan think they can profit from the 75 million dog owners in the U.S. and the pet industry, which has proved to be somewhat resistant to the recession. Sales of pet food and supplies are expected to increase 2.9% to $27.5 billion in 2009, according to research group Mintel International.

"People have continued to spend on their pets," Mr. Millan says. "You always want to make sure your family is taken care of, and Americans believe the dog is part of the family."

IMG isn't the only company to see dollar signs in the pet market. Martha Stewart Living Omnimedia added a pet destination to its Web site this year. Honda Motor introduced an Element with features such as a cushioned pet bed in the cargo area and a pet-restraint system.

Media buyers says it's a tough time to start a new title, but some of them say having a narrow audience can be appealing to advertisers.

"Niche magazines today are more important, because marketers are trying to be more efficient with their ad dollars, and this would be a way for pet food and pet services companies to reach their target audience," says Robin Steinberg, director of print investment at Mediavest, a media-buying firm owned by Publicis Groupe.

The first issue of Cesar's Way includes ads for pet-supplier retailer Petco, Del Monte Foods' dog treats and Halo pet food.

While ad spending on pet food has fallen, it has fared better than other sectors. Ad outlays by pet-food companies slid 5% to $299.2 million in 2008, less than the declines of 15% and 5.7% seen among auto makers and telecom companies, respectively, according to TNS Media Intelligence. For the first three months of this year, spending on pet food ads rose 24%.

The magazine is part of a marketing effort to turn Mr. Millan into a household name. IMG has represented him since 2007, during which time he has written several books, created a popular Web site and produced several dog-training videos.

Almost half of America's consumers already know who he is, and consumers' awareness of Mr. Millan has grown 12% since May 2008, according to Davie-Brown, an Omnicom Group company that tracks the appeal of celebrities.

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Nat Geo's 'Dog Whisperer' Adds Magazine to Portfolio


mw/photos/stylus/105055-CesarM.jpg
One area that seems to defy the down market is the money people spend on their pets. And marketers have taken notice, as a growing genre of slick, pet-lifestyle magazines suggests.

The latest to be unleashed is Cesar’s Way, a spinoff of the popular National Geographic Channel’s The Dog Whisperer starring dog behavior expert Cesar Millan. Launching Sept. 15, Cesar’s Way is the first regularly published consumer magazine from IMG, the sports, media and entertainment marketing company behind such events as Fashion Week and its related publication The Daily (and Millan’s rep).

It’s also the latest in Millan’s growing media empire, wh ich includes the show going into its sixth season in October, a line of products at Petco, books and a one-hour strip on Twentieth Television starting in fall 2010.

Cesar’s Way will publish twice in 2009 with a guaranteed circulation of 150,000 and six times in 2010, when the rate base will rise to 250,000. Stories will feature celebrities and their dogs, human-interest tales and dog-training tips.

But don’t call it a dog magazine, said Lee Rosenbaum, vp, publishing at IMG and ex-publisher of the erstwhile music magazine Blender. “We show [people’s] lifestyles and how dogs fit within their lifestyle,” he said, adding, “It’s a bit of a mixed breed.”

Indeed, this new breed of pet magazines considers itself a different animal from the older, less-glitzy pet titles like Dog Fancy and American Kennel Club publications. (That top fashion photog Gilles Bensimon shot the cover of the first issue of Cesar’s Way is bu t one indication.)

“I think we try to transcend that Best in Show stereotype,” Rosenbaum quipped. Other such “dog culture” magazines include The Bark, a six-times-a-year magazine and Modern Dog, a quarterly.

“Dog Fancy, the old, traditional take on dogs, was just basically about service, how to show [and] breed dogs,” said Cameron Woo, publisher of 120,000-circ The Bark, adding that his title “launched a whole wave of pet coverage.”

Such titles are making inroads with not just pet food marketers but blue-chip auto, travel and packaged goods advertisers. The Bark is on track to car ry about 200 ad pages this year including Bissell, Jeep and Subaru with its irreverent coverage (recent topics included the South Korean practice of dining on dog and canine representation in Renaissance painting).

“It has broadened from the traditional advertisers—dog food, accessories, toys and leashes—[from] companies that…carry those things as part of their business to car companies who want to reach out to this demographic,” Woo said.

Similarly, Cesar’s Way is carrying Sketchers, JetBlue and Best Western in its launch issue in addition to Frontline and Del Monte pet food. “The dog is really part of the family, and a caregiver is a caregiver,” explained Rosenbaum. “So if you can engage that caregiver, it’s easy to engage them in talking about the other members of the family.”

Established print media also have taken note of the pet craze.

Martha Stewart Living Omnimedia this year launched a new pet channel on its Web site and added related content to its TV and radio show and in its magazines Martha Stewart Living, Everyday Food and Body + Soul. Nestlé Purina PetCare was the sponsor.

Also, Hearst’s Country Living has expanded its pet coverage this year under editor Sarah Gray Miller and has seen an uptick in pet advertising. People.com started a pets channel in December to tap into reader interest in celebrities’ pets.

Betsy Baltzer, media acquisition director for Kansas City-based agency Bernstein-Rein, sees a lot of growth in the pet media category, reflecting consumers’ continued spending on their pets.

Yet Baltzer said national publications’ efforts to add pet content don’t a lways succeed. “Some just want to do advertorial sections,” she said. “It’s not as committed. The advantage of the pet enthusiast [title] is you know someone is reading the publication because they truly are a pet enthusiast.”

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National Geographics' The Dog Whisperer


Mag Bag: Dog Whisperer Debuts Pub

Cesar Millan, who has built a media and merchandise empire by getting neurotic dogs to behave, is adding another medium to his media portfolio: print. In partnership with IMG, a sports and entertainment marketing company, Millan is launching Cesar's Way Sept. 15, which will have a guaranteed circulation of 150,000 with two publication dates in 2009.

If all goes according to plan, Cesar's Way will increase its rate base to 250,000 in 2010, when it will publish bimonthly. The launch issue includes natural endemic advertisers like Del Monte's pet food brands, but also human-focused brands like Skechers, JetBlue, and Best Western.

The magazine will cover various subjects pertaining to human-canine relations, including stories about celebrities and their dogs, regular people and their dogs, and dog-training tips. Cesar's Way will also feature lifestyle content focused on how people adapt (or fail to adapt) to dog ownership. The magazine will probably feature the information that makes Millan's show on the National Geographic Channel, "The Dog Whisperer," so fascinating: His almost supernatural understanding and faculty for communicating with dogs.

While it's launching in a difficult environment for consumer magazines, Cesar's Way is banking on Americans' enthusiasm about pet ownership. Indeed, established titles about pets have held up better than other consumer magazines in recent years. From June 2004-June 2009, according to the Audit Bureau of Circulations, Dog Fancy and Cat Fancy have both seen their total circulation hold steady at about 240,000.

Nation's Restaurant News focuses on BrandIndex's burger QSR research








Study: Perceptions of burger chains improve

NEW YORK (Sept. 4, 2009) Whether it’s because consumers are “trading down” from casual dining or due to aggressive value promotions and advertising, quick-service burger restaurants have improved their standing in the eyes of customers in the past 12 months, according to a new study by BrandIndex.

The New York-based consumer perception research firm tracked several indicators of brand health from August 2008 to August 2009 for McDonald’s, Burger King, Wendy’s, Carl’s Jr. and Hardee’s. All five chains logged steady improvements in their overall brand health scores, as determined by BrandIndex’s method of surveying 5,000 consumers every weekday from an online panel of more than 1 million people who have opted to participate.

Ted Marzilli, senior vice president and global managing director for BrandIndex, said the chains studied not only benefited from value-seeking consumers trading down to quick service, but also through their value- and quality-focused marketing.

“It’s actually a little bit of both,” Marzilli said. “A lot of casual customers are now open to eating at a quick-service restaurant. I also think [the brands] have been doing heavy advertising on the value side, and folks like McDonald’s are promoting McCafé and targeting Starbucks, trying to improve their quality.”

The best-perceived brand overall remains Wendy’s, the data revealed. Its brand health score was consistently in the mid-30s for the 12 months ended in August, compared with averages in the high teens for Burger King, a range from low single digits to a high around 10 for McDonald’s, and scores that went from slightly negative to slightly positive for Carl’s Jr. and Hardee’s.

Scores can range from 100 to negative 100 and are compiled by subtracting negative ratings from positive, meaning that more positive feedback from consumers surveyed yields higher scores for the brands.

Wendy’s also had a commanding lead in consumer perception scores on several factors, including its “quality” scores in the mid-30s, “value” scores trending flat around 40, and scores in the mid-40s for “satisfaction.” It also was the only chain with a positive score for “reputation,” which measures whether respondents would be proud or embarrassed to work for the brand.

Marzilli said Wendy’s scores reflect not only good branding and execution, but also the tendency for its larger rivals to take most of the heat for quick service’s negative perceptions.

“McDonald’s and Burger King have taken the brunt of the backlash at times among different government groups or consumer groups saying fast food contributes to obesity,” he said. “Wendy’s, being the No. 3 player, escapes that spotlight, and it also has a history of differentiating itself from QSR.”

Wendy’s restructured its brand strategy following its September 2008 merger with Arby’s parent Triarc Cos., and its subsequent “Waaaay Better” ad campaign focused on food quality. Its latest round of commercials, featuring its boneless wings, encourages customers to pay for flavor, not flair, in a jab at casual-dining brands.

McDonald’s made significant improvements in overall brand perception, distancing itself from Carl’s Jr. and Hardee’s in the rankings and narrowing its gap with No. 2 brand Burger King.

McDonald’s widening the gap in overall scores from Carl’s Jr. and Hardee’s — its August 2009 scores hovered around a value of 10, while scores for both CKE-owned chains were just above a neutral score of zero — comes as the two regional chains have escalated a premium-burger war with the segment’s sales leader.

Carl’s Jr. unveiled in August the Big Carl, a burger with twice the beef and cheese as a Big Mac but meant to be sold for less than McDonald’s iconic sandwich. CKE Restaurants also unveiled an ad campaign urging consumers not to believe the “McHype” surrounding McDonald’s July rollout of its Angus Third Pounder line of burgers. The marketing efforts include a money-back guarantee, beginning this month, where CKE will give consumers refunds if they don’t think the Six Dollar Burger at Carl’s Jr. or the Thickburger at Hardee’s tastes better than McDonald’s new premium burger.

Carl’s Jr. and Hardee’s lag behind the three main burger brands in overall brand health in part because they’re regionally focused, Marzilli said, with Carl’s Jr. primarily in the West and Hardee’s in the Midwest and Southeast.

“Even if Hardee’s and Carl’s Jr. make an impact, on a national scale it’s hard for them to gain ground,” Marzilli said. “There’s an advantage of scale in this industry. There are lots of folks driven by their stomachs and time of day when they decide they’re going to eat, and they’re more likely to be in the proximity of a Burger King or McDonald’s.”

Burger King benefits from its branding advertising, Marzilli added, as its commercials starring mascot The King, developed by agency of record Crispin Porter + Bogusky, keep the brand top of mind.

“Burger King takes a different path, working with Crispin Porter, which is known to be a more creative shop,” Marzilli said. “But when you look at the BrandIndex numbers, Burger King’s made improvements steadily and they’ve been generating really positive buzz. ‘Whopper Virgins’ rubbed some people the wrong way and got some negative press, and that’s one of the dangers of a creative shop, but in general that approach is working for Burger King. It’s a little more risky, but over time it reinforces this message that Burger King is cool.”