BrandIndex's weekly Brandweek Buzz Report: Nationwide, burger wars, Palm

'Greatest Spokesperson' Boosts Nationwide

March 26, 2010

In a sector with weak consumer perception, Nationwide has traditionally maintained above average buzz scores, although it has trailed behind category leaders Geico and Aflac. In hopes of standing out from its competitors, the insurance provider kicked off “The World’s Greatest Spokesperson In The World” campaign, which, so far, has worked favorably for the brand, according to market research firm YouGov's BrandIndex report.

The Brandweek Buzz Report by YouGov is a weekly consumer perception report that analyzes the most talked about brands based on buzz: The scores are based on weighing positive and negative perceptions of a brand. A +100 score is positive, a -100 score is negative, and a rating of zero means that the score is neutral.

YouGov interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of 1.5 million individuals.

This week, the report spotlights:

• Burger King, Wendy's, McDonald's
• Nationwide Insurance
• Palm


Nationwide Push Gets Consumers Buzzing
Taking example from Dos Equis’ successful campaign, dubbed “Most Interesting Man in the World,” Nationwide introduced “The World’s Greatest Spokesperson In The World” earlier this moth month. The opening spot introduces the insurance company's long-lost spokesperson in a cabin in the woods. Nationwide brings him out of hibernation "to speak passionately on behalf of consumers." The follow-up ad shows Nationwide sending its minions out by helicopter to retrieve the spokesperson, who insists he needs “a list of everyone with insurance . . . and a blue phone.”

"The World’s Greatest Spokesperson in the World" seems to be working in Nationwide's favor, having sent its buzz score upwards from 6.5 to 9.5 since the campaign began. Meanwhile, the sector average has budged from 4.9 to 5.4.




Burger Wars Continue
Burger chains have been fiercely courting customers with value propositions since the recession began. The economy may be getting better, but the promotional wars are as competitive as ever. Since mid-February, Wendy’s and Burger King were neck and neck in buzz among men 18-34. Then, in mid-March, they ran into a wall when Michelle Obama appeared in a Newsweek cover story blaring the headline, “Feed Your Children Well.” Rallying parents to cook at home more as part of Obama's childhood obesity campaign, Burger King lost traction and fell from 16.5 to it current -2.8 buzz score, while Wendy’s dropped from 21.5 to 13.9. Burger King also began rolling out its beer-serving Whopper Bars, which keep the under 21 crowd out.

McDonald’s has been averaging lower buzz scores also, and sometimes traveling into negative perception territory. Yet, the fast feeder didn’t feel the Obama brunt as badly as Burger Kind and Wendy's. McDonald’s even rebounded recently, to the point where it's closing in on Wendy’s with a score of 10.3.




Palm at a Crossroads
In a sense, Palm is right back where it started on June 1, 2009, when the PDA company reintroduced itself to the mobile arena with the Pre. Palm received mostly favorable reviews, but the euphoria was short-lived. Buzz scores peaked at 7.3 on June 9, and then drifted down to 3.7 through the end of September. Even at its peak, Palm was nowhere near Apple’s mid-30s scores and BlackBerry’s high 20s. Palm made a modest comeback to 6.2 last fall, only to tumble even further than before, hitting a score of 1.9 in Feb. 2010.

Palm's recent financial reports have shown lots of back inventory of unsold goods, with a recent analyst estimate of 800,000 units. Palm has given up all of its stock gains from last year. The only bit of good news it that in addition to selling its Pre Plus and Pixi Plus on both Verizon Wireless and Sprint, AT&T will soon carry the devices. Palm’s current buzz score is 3.8, which is exactly the same as it was in June 20009.

BrandIndex's weekly Brandweek Buzz Report: Oscar night winners

Oscar Night's Winning Advertisers

March 19, 2010

With a high female viewership, The Academy Awards are practically the "woman's Super Bowl," especially due to the focus on fashion, according to market research firm YouGov's BrandIndex report. J.C. Penney was among the advertisers hoping to reach that demographic with the launch of a spring ad centered on women. Apple and Hyundai also debuted new spots during the Oscars—a move that contributed to a spike in their buzz scores.

The Brandweek Buzz Report by YouGov is a weekly consumer perception report that analyzes the most talked about brands based on buzz: The scores are based on weighing positive and negative perceptions of a brand. A +100 score is positive, a -100 score is negative, and a rating of zero means that the score is neutral. The report also features scores based on brand quality.

YouGov interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of 1.5 million individuals.

This week, the report spotlights:

• Apple
• J.C. Penney
• Hyundai


Apple's iPad Gets Mixed Reactions
Apple took the wraps off its first commercial for the much-hyped iPad in its usual edgy fashion. The ad featured a highly syncopated overview of everything the new tablet computer does, cut to the tune of “There Goes My Love” by The Blue Van.

When the product was first unveiled in January, the consumer reaction was quite mixed. That seems to have carried over two months later. The new ad gave Apple a short-lived shot in the arm with adults over 18, sending the brand from a buzz score of 35 the day after the Oscars to 38.5 a couple of days later. However, perception has been rocky since then, with the brand’s buzz score now at 32.4, reflecting the public’s indecision about the product.




J.C. Penney Speaks to Women
J.C. Penney kicked off its spring marketing campaign targeting women 20 to 40 years old with a new tagline: “New look. New day. Who knew?” Taking its bold cue from the economic turnaround, the energetic TV spot emphasized trendy styles, while subtly scrolling five brand names across the bottom—all done to British group Sugababes’ anthem “Girls.” Even the chain’s chairman Mike Ullman III likened the ad to seeing “a new day for J.C. Penney.”

The optimistic campaign has propelled J.C. Penney from 43 to 47.6, placing it on top of the department store sector’s quality score ranking. J.C. Penney is currently in a virtual tie with Macy’s and ahead of Target, Kohl’s and Sears.




Hyundai Drives Into the Spotlight
Since its Super Bowl blitz, Hyundai has been on a tear and not looked back. Despite being unable to employ its usual narrator Jeff Bridges for the spots because of Oscar-mandated rules regarding nominees, the carmaker aired eight commercials—including three new ones—promoting the Sonata and Genesis vehicles.

Hyundai has more than doubled its buzz score for adults 18 to 34 since the beginning of March. Its Oscars presence sent that score from 8.8 to the current score of 11.7. Hyundai’s numbers rank it ahead of other international rivals such as Volkswagen, Infiniti, Audi and Lexus.

Free All Music's Brian McCourt interviewed on CNBC... appears on reporter's blog too

South By Southwest: Composing a New Music Model

Published: Wednesday, 17 Mar 2010 | 3:42 PM ET
By: Julia Boorstin
CNBC Correspondent

Eighteen hundred bands, music industry execs, and thousands of fans are gathering in Austin for the annual South by Southwest music conference and festival.

The crowds are huge and the mood is positive ­ you'd never guess that piracy has all but decimated the music industry, with music sales plummeting by over half in the past decade.

Concerts are a rare bright spot, with worldwide touring revenue up 12.5 percent last year despite the pullback in consumer spending. And the booming concert business is played out here at the festival, where over 1800 bands will perform in four days.

Despite the festive concert atmosphere, the big issue at both panel discussions and at music venues is how to revive music industry revenue. One novel idea attracting quite a bit of attention: giving away music for free. Consumers have become so accustomed to pirating music; some labels are starting to give away songs for free, getting paid instead by advertisers.

Freeallmusic.com gives users up to 20 free song downloads from Universal Music and EMI each month. In exchange for each song users have to watch a 15 to 30 second commercial.

Advertisers including Coca-Cola [KO 53.84 --- UNCH (0) ], Warner Brothers Television [TWX 31.20 --- UNCH (0) ], and Zappos are on board ­ they pay the website about $2 dollars per download, much of which goes to the music label. In exchange the advertisers get access to Freeallmusic.com's users who are now testing the system. Music lovers seem excited ­ over 100,000 have signed up for a wait list.

The free, ad-supported music model faces some major challenges.

Billboard editor Bill Werde tells me that he thinks music labels are resistant to the idea of giving away music for free to customers, even if advertisers compensate them. They don't want to get users out of the habit of paying for music, if they still do actually pay for music. But at the end of the day it'll all come down to advertisers. Will advertisers get the kind of return on investment they need to justify spending about two bucks per song download? Will users absorb the brand message or will they procrastinate during the ad by clicking elsewhere? It'll take some major advertising supply for this model to scale to the likes of an iTunes. We'll be watching.

BrandIndex in Automotive News about Toyota effect on Lexus brand

Toyota troubles tarnish Lexus, too

Research shows image takes a hit

Kathy Jackson
Automotive News -- March 15, 2010 - 12:01 am ET

LOS ANGELES -- The recall scandal that has devastated Toyota also has diminished Lexus' standing with consumers.

Market researchers say the luxury brand has been hurt since the crisis escalated in the past two months, though not as much as Toyota.

BrandIndex Service in New York, which surveys consumer brand perceptions, says Lexus' quality reputation has tumbled to its lowest rating ever. And data from Edmunds.com show that purchase intent -- defined as a shopper's configuring a vehicle online, plus other factors -- is down, too.

"Lexus spent 2009 either neck and neck or slightly ahead of luxury rival BMW in quality scores," said Drew Kerr, a BrandIndex spokesman. "The game changed in early February, when the Toyota news exploded and Lexus began descending significantly."

Toyota has recalled more than 6 million vehicles in the United States, mainly to fix problems related to unintended acceleration. About 450,000 have been Lexus vehicles. The ES 350 and the IS 250 and 350 were recalled last fall to fix pedals and floormats. This year the new HS hybrid was recalled to install new software for braking.

Unlike Toyota, which has seen U.S. sales plunge, Lexus is up 5 percent so far this year. But that is due in large part to the addition of the HS and the redesigned GX SUV.

Luxury rivals are doing much better: Mercedes is up 24 percent, and BMW is up 12 percent. Lexus has been the luxury sales leader since 2000, but both Mercedes and BMW outsold Lexus in February.

"Given all the challenges we've faced, we're pleased that our dealers sold more cars this February than last," said Lexus Division chief Mark Templin during a monthly sales call. "That keeps us on pace with our plan for moderate growth this year."

BrandIndex asks respondents whether a brand has high or low quality. A score of 0 reflects an even split in the answers. Lexus' score was 30 on March 8, down from 45 on Jan. 1 and 48 in early February. By comparison, Toyota's score had plunged to minus 5 on March 8.

"Toyota is never mentioned in any of Lexus marketing, as if there's no connection," Kerr says. "But apparently consumers have put two and two together. Both BMW and Mercedes have taken a wide lead in the luxury category."

BrandIndex says BMW's quality score was 44 on March 8; Mercedes had a score of 40.

Edmunds' data show purchase intent for Lexus has slid from a high of 4 percent on Jan. 30 to 2.9 on March 9.

George Kang, senior analyst at Edmunds, says some of Lexus' decline is the result of problems at the parent company. But he says purchase intent also has dropped for BMW and Mercedes, though not as much as Lexus.

BMW went from 3.6 percent at the start of the year to 3.4 percent on March 9. Mercedes slipped from 2.3 percent to 2.2 percent.

"Overall, the luxury segment took a hit," Kang said. "Toyota's purchase intent is starting to rebound because it is a resilient brand. Lexus will recover as well."

Lexus dealers say they are not deterred.

Perry Watson, owner of Lexus of Mishawaka in Indiana, says: "We're not experiencing the kind of anxiety at Lexus as you hear about Toyota in the media. We have a great reservoir of good will with our customers."

He says sales are not where he wants them to be but are picking up.

"The only issue we have is we don't know what effect this will have on the public who don't currently own a Lexus," Watson says.

He says that about one third of his customers are first-time buyers, about the same percentage as before the recalls.

"So for us, nothing has changed yet," Watson says. "We're cautiously optimistic. The manufacturer is giving us everything we need. Our customers are not panicked."

BrandIndex's weekly Brandweek Buzz Report: wireless price wars, Toyota/Lexus, and State Farm

War Between Wireless Carriers Doesn't Sway Consumers

March 12, 2010

The price war between wireless carriers—AT&T, Verizon Wireless and Sprint—hasn’t changed consumer perceptions much at all. All the carriers still get low value marks, and for Verizon Wireless, it’s caused a drawn out lull, according to market research firm YouGov's BrandIndex report.

The Brandweek Buzz Report by YouGov is a weekly consumer perception report that analyzes the most talked about brands based on buzz: The scores are based on weighing positive and negative perceptions of a brand. A +100 score is positive, a -100 score is negative, and a rating of zero means that the score is neutral. This week's report also features scores based on brand value and quality.

YouGov interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of 1.5 million individuals.

This week, the report spotlights:

• AT&T, Verizon Wireless, Sprint
• Toyota, Lexus
• State Farm Insurance


Wireless Price War
After calling each other names throughout the fall, the two largest wireless carriers switched tactics in the one area where consumers see the whole category lacking—value. AT&T came out swinging first by announcing it was lowering the price of its unlimited calling plan from $99 to $69, which Verizon Wireless quickly matched.

The initial impact in early February was immediate. AT&T’s value score jumped from -4.5 in mid-January to 10 in a matter of two weeks. Meanwhile, Verizon Wireless’ score was cut more than half to 9 in the same time period. When the deal was matched, AT&T retreated to pre-promotion negative territory levels, Verizon Wireless did a modest bounce back, and Sprint rose from -36.1 to -16.

Sprint’s recent ad featuring CEO Dan Hesse burst the whole bubble. Hesse pointed out that with Sprint's competitors, what you see is not what you get: AT&T and Verizon Wireless’ deals were just for voice, and all mid-level smartphones would require an additional data or text plan. Sprint then promoted its $69 package as an all-inclusive with unlimited voice, text and Web. Sprint’s attack had a mild effect on the brand, taking it from -25.5 to -23. AT&T slowly climbed back into positive sentiment with a current 5.7 score. Verizon Wireless still leads with 20.5, but still lower than its Jan. 4 score of 36.1.




Toyota's Effect on Lexus
Toyota’s recalls have caused major brand trust issues with consumers, but how have they affected its luxury brand, Lexus? Toyota is never mentioned in any of Lexus' marketing, as if there is no connection between the two brands.

Consumers have put two and two together, but not down to Toyota depths. Last year, Lexus was either neck and neck or slightly ahead of luxury category rival BMW in quality score, while fending off Mercedes Benz’ close approach. The game changed in early February, when the Toyota news exploded and Lexus began descending significantly from 44.5 to its current 30.7. While Lexus still has a good quality score (in line with Volvo), both BMW and Mercedes have taken a wide lead in the luxury category with 42.4 and 40.6 quality scores, respectively.




State Farm's Viral Success
More than a few people raised their eyebrows upon hearing that State Farm insurance was footing the sponsorship bill for trendy rock group OK Go and its new single “This Too Shall Pass.” OK Go’s previous videos have won praise for their viral success.

“This Too Shall Pass” is no exception: A paean to Rube Goldberg’s long elaborate devices—which were usually performed by one object hitting or going into another—has already generated 6.5 million views on YouTube. State Farm literally got the whole contraption moving at the beginning of the video, with its trademark red truck and logo clearly seen on the side.

Leading up to the video’s March 1 release, State Farm had actually been on a buzz score roll, going from 17.1 to 23.9, benefited by a milder than usual hurricane season and news that it warned federal regulators about Toyota’s problems back in 2004. However, after inching forward the day after the OK Go video premiered, State Farm’s score dropped from 24.2 to 20.2. The controversial homeowner rate hikes and President Obama’s increased rallying for healthcare reform were the major contributing factors.

BrandIndex's NBC-TV research in Wall Street Journal article

• ADVERTISING
• MARCH 8, 2010

New Evening Lineup Energizes NBC

Bigger Ratings Provide Momentum, but Ad Buyers Aren't Sure Viewers Will Stay

[EXCERPT]

NBC's evening lineup got a ratings boost in the week after the Winter Olympics, providing much-needed momentum as the network prepares to present potential new TV shows to advertising buyers in a round of meetings this month.

The biggest gains came in the 10 p.m. Eastern time slot, which NBC had scrambled to fill after canceling Jay Leno's poorly performing comedy show early this year, ahead of the Olympics. The network's new shows in that slot include the ensemble drama "Parenthood" and "The Marriage Ref," in which a panel of celebrities weighs in on married couples' everyday tiffs.

On weekdays last week, an average of 8.1 million people watched 10 p.m. shows on NBC, up 57% from the average of about 5.2 million who did so before the Olympics, according to preliminary Nielsen Co. data supplied by NBC.

The network's overall prime-time viewership between 8 p.m. and 11 p.m. on weeknights was up a more-modest 21%, the data showed...

Meanwhile, it appears that the Olympics may have helped NBC improve more than its Nielsen numbers. BrandIndex, a firm owned by market-researcher YouGov PLC that tracks consumer perceptions of more than 1,100 brands, said that in February the "buzz" surrounding NBC improved most of any brand it tracks. It shifted from a negative view to a slightly positive one. But NBC's overall positive rating still trails somewhat behind those of CBS, News Corp.'s Fox and Walt Disney's ABC.

I orchestrate BrandIndex's Winter Olympics consumer perception review in Brandweek

Who Were the Biggest Winter Olympics Advertisers?

March 5, 2010

With the end of the Super Bowl, came another major event where some of the biggest global brands spent millions on advertising: The Winter Olympics. Unlike a one-time football game event, these were long, drawn-out campaign sponsorships across not only NBC (which aired the games) but also MSNBC and CNBC. The good news is that most brands moved the needle in a positive direction, while only a few suffered a backslide, according to market research firm YouGov's BrandIndex report.

The Brandweek Buzz Report by YouGov is a weekly consumer perception report that analyzes the most talked about brands based on buzz: The scores are based on weighing positive and negative perceptions of a brand. A +100 score is positive, a -100 score is negative, and a rating of zero means that the score is neutral.

YouGov interviews 5,000 people each weekday from a representative U.S. population sample. Respondents are drawn from an online panel of 1.5 million individuals.

Nike's Winning Streak
Nike’s chart-topping performance garnered the biggest buzz score jump of 9.2 points. The sneaker and apparel giant powered itself with its pervasiveness on athletic gear every time viewers tuned in. Nike’s last bet on an Olympic athlete backfired. In 2006, the brand ran an aggressive campaign dubbed "Join Bode," leading up to the Torino games. The skier Nike was endorsing, Bode Miller, was going through his heavy partying phase and was disqualified. This time around, Nike put its marketing dollars behind a campaign featuring leading South Korean figure skater Kim Yu-na. The results: The skater put on an outstanding Olympic performance, won the gold, and Nike took home its own perception rewards.

Coors 'Canada Pride' Pays Off
Instead of advertising during the Super Bowl, the Molson Coors Brewing Co. signed up to be the official provider of the Winter Games. By playing up its nationalism with the “Made From Canada” slogan—emphasizing the land’s natural, clean water—two of its brands, Coors Light and Coors, connected with consumers, swinging their buzz scores 8.2 points and 7.4 points, respectively. Molson, the company’s original Canadian brew, rode the campaign’s coattails to a 6.5-point boost, putting it in the top five gainers.

McDonald’s Beefs Up Marketing
The official restaurant of the Winter Olympics, McDonald’s, rolled out a sweepstakes called “How Do You McNugget” during the week leading up to opening ceremonies. The marketing support continued throughout the games, when McDonald's ran its “Bobsled in the drive-through line” TV spot. Those McNugget-eating athletes helped the fast feeder become the fourth biggest Olympic gainer.

General Electric Shines
The "hometown team"—NBC network co-owner General Electric’s healthcare division—used Vancouver 2010 to launch the biggest consumer-directed campaign in its history. The estimated $80-million BBDO New York-created effort featured touching vignettes with doctors and patients, a social media component, and a microsite (www.healthymagination.com). General Electric jumped 5.5 points over the course of the event.

NBC Gets a Boost
Although not noted on the chart above, NBC's perception took a shot in the arm, and the timing couldn’t have be better following its recent late night talk show travails. The network made the biggest buzz score improvement of all consumer brands in the month of February.

Samsung Calls the Shots
Samsung’s new touchscreen Mythic mobile phones wowed consumers and boosted the brand 4.4 points. Samsung ran TV spots prompting consumers to watch the Winter Olympics on the devices. The brand also had a major presence on Facebook, where snowboarding halfpipe silver medalist Hannah Teter blogged about her exploits.

The Underperformers
While some advertisers didn’t stir their buzz scores in any significant way (Acer, Air Canada, Chevrolet), a couple saw the scores fall by the closing ceremonies. Panasonic, which took a modest 3.2-point drop overall, provided the games with cameras, televisions and video screens. Panasonic's Olympic pavilion, which showcased its FullHD 3D Theatre, featured a video of Sarah Brightman performing Panasonic's theme song, “Shall Be Done.” Coca-Cola’s drop of 8.4 points is somewhat misleading, coming after a huge post-Super Bowl campaign boost. If comparing Coke’s post-Olympics score with its pre-Super Bowl number, the brand shows a 26.7-point improvement, and only a 4.6-point drop from the night of the Winter Games opening ceremonies. Visa took the hardest hit at 13 points, but not because of its marketing. After improving 9.3 points during the first week, Visa crashed 22.3 points on the new Credit Card Reform Act that went into effect Feb. 15.