Break BrandIndex's politics and brands charts all over Ad Age, Gawker, CNBC, NY Post and Brandchannel

Consumers' Hearts Bleed Red -- and Blue

Top U.S. Brands Favored Much Higher Among One Political Party or the Other, Survey Finds

By Nat Ives
Published: October 25, 2010

NEW YORK (AdAge.com) -- Forget red states and blue states for a second. Is your brand a red brand or a blue brand?

Many of America's top brands rate much higher among one political party or the other, according to an analysis of YouGov's BrandIndex survey results.

Google is the top brand for Democrats, according to an index incorporating consumer impressions of its quality, its value, their satisfaction with it, its reputation, their willingness to recommend it and their general impression of it. Google doesn't appear in Republicans' top 10.

Republicans, on the other hand, rank Fox News tops; Fox News, perhaps not surprisingly, doesn't appear on the list of Democrats' favorite 10 brands.

JetBlue is the third-ranked airline brand among Democrats, but doesn't crack the top five among Republicans, the BrandIndex analysis shows. Republicans rate Aflac among their top five insurers, while Democrats make room for Progressive.

Although consumers aren't usually buying a big brand because they think its owners are actually on their political "side" -- potential exceptions such as Ben & Jerry's aside -- marketers may well benefit from knowing how political partisans view them.

Target says it didn't suffer any bottom-line damage after gay-rights support

ers and some customers protested its $150,000 contribution to a group supporting a candidate opposed to gay marriage. But it might have avoided the whole mess if it considered its perceived political image first. Target is the fourth-ranked retailer among Democrats, according to BrandIndex, but is nowhere in the top five for Republicans.

Many brands perform well among members of both parties: Cheerios, UPS, FedEx, Craftsman, J&J, the History Channel and the Discovery Channel have appeal across political divides.

Source: YouGov BrandIndex

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Red & blue voters on own brand w

agons

By S.A. MILLER, Post Correspondent


WASHINGTON -- It's more than politics dividing the country -- Democrats and Republicans also split on which top American brands they buy.

A top-rated airline for true-blue Democrats is -- you guessed it -- JetBlue. And when choosing an insurance company, Democrats lean toward Progressive, a survey by YouGov's BrandIndex found.

Republicans don't even list JetBlue among their top five airlines and they prefer Aflac as an insurance company, the survey showed.

When it comes to beer, great minds drink alike. Both parties reach for Samuel Adams and Heineken as their two favorite brands and include Michelob in their top five.

But Republicans also chug Budweiser and Coors, while Democrats prefer to knock back Corona or Guinness.

Ted Marzilli, global managing director for BrandIndex, said sometimes the appeal of a brand is as simple as a name that resonates with one group or another -- such as "progressive" having a positive ring for liberals.

Other times, he said, it's more complicated.

"When you look at a brand like JetBlue scoring well among Democrats, is it because 'blue' is in the title and 'blue' is more associated with Democrats than Republicans? I'm not so sure," he said.

"JetBlue is also home-based in New York City and it doesn't have a national footprint, so it may have more exposure among cities or locations that tend to be more Democratic than Republican," Marzilli said.

Other divergent tastes included Democrats shopping at Target and drinking Peet's Coffee but Republicans shopping Best Buy and drinking Caribou Coffee.

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political brands

Red Brands, Blue Brands: Dems Love Google, GOPers Favor Fox News

Posted by Dale Buss on October 25, 2010 03:05 PM

Does the current polarized political climate in the U.S. even extend to favored brands? A new survey of brand preferences by political affiliation suggests the answer is, well, yes and no.

Google is the favorite brand of Democrats, an analysis of YouGov’s BrandIndex survey results found, while Fox News topped the brand list of Republicans. Maybe Democrats feel at home with Google’s inherent techie elitism masquerading as populism; and clearly Republicans appreciate a brand that treats their opposition like a foreign occupier.

Interesting questions abound. JetBlue is the third-ranked airline brand among Democrats, for example, but doesn’t show up in the Republican top 10. Could be JetBlue’s strong presence in

liberal coastal cities mean that its cabins are filled with Democrats, flying blithely over heartland Republicans (who can’t see the JetBlue logo from their conservative small towns).

And why is Aflac ranked among Republicans’ top five insurers in the YouGov survey, while Democrats favor Progressive? Is it because Progressive’s strong online quoting and marketing platform make it naturally appealing to young-skewing Democrats, while Aflac – known a disability insurer for small businesses and the self-employed– caters to the entrepreneurial streak of Republicans?

There’s more. Target is the fourth-ranked retailer among Democrats – but is nowhere near the top five for Republicans, even after the chain incurred the ire of ultra-liberal political action committee MoveOn.org for contributing $150,000 to a group backing an anti-gay-marriage Republican candidate.

Also interesting but harder to explain are the marques that get high marks from both Republicans and Democrats. With some parenthetical theories as to their appeal, these universally embraced brands included: Discovery Channel (giving hope that maybe there is such a thing as non-partisan knowledge out there); Johnson & Johnson (everybody hurts); Craftsman (even liberals need tools); and FedEx (everyone’s been burned by the Postal Service). Perhaps most intriguingly, Democrats and Republicans both rank the History Channel in the top 10, suggesting that, if there’s one thing partisans of all stripes seek, it’s to ground their present-day battles on a solid historical foundation. They may both be watching the same

shows, but, one suspects, they’re drawing different lessons from that programming.

A less jaundiced eye might view these areas of overlap as signs that great brands do strong work in appealing to everyone. Another political aisle-crossing brand was UPS, leading one to speculate: Can Americans both red and blue find common cause in what brown can do for them?

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Study: Democrats and Republicans Love Lots of the Same Brands

We all know that Democrats love Starbucks and Hustler, while Republicans love Skoal and Soldier of Fortune. Or do they? A new study of the favorite brands of liberals and conservatives show some surprising agreements.

Nat Ives breaks down the latest YouGov BrandIndex numbers, showing which brands are most beloved by members of the two political parties. Observe:

Only Democrats love: Google, Sony, Amazon.

Only Republicans love: Fox News, Fox, Lowe's.

Both love: Discovery Channel, History Channel, Craftsman, Johnson & Johnson, UPS, Fedex, Cheerios.

So America, let's lay back with a bucket of tools and some Tylenol, watch a nice WWII documentary, and ship boxes of cereal across the country­together.

[Ad Age]

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CNBC VIDEO

BrandIndex's Friday column in Brandweek: Dining Chains, Taco Bell and Long John Silver's

YouGov Names Top 10 Restaurant Chains

Oct 21, 2010

Since Labor Day, consumers have seen new campaigns and promotions crop up to replace summer marketing efforts, per YouGov. Below is a look at the 10 major dining brands, which have moved the buzz score needle the most in the past 30 days with adults over 18.

The Brandweek BrandIndex 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 measures quality and value.

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.

The report spotlights:

• Top 10 restaurants
• Taco Bell
• Long John Silver’s


Top 10 Dining Brands Named
Applebee’s stands out from competitors, when it comes to a restaurant brand that has improved its buzz score the most. Applebee's benefited from sponsoring “back-to-school” nights with contests and prizes. It also announced its third annual “Thank a Soldier Day”—another effort that resonated well with consumers.

Meanwhile, Whataburger held a month-long search to find the chain’s biggest fans, followed by a menu expansion with a chocolate brownie pie. And with football season in full swing, Hooters was out promoting its chicken wings as a lure for large groups.




Taco Bell Catches Up to Peers
Taco Bell’s introduction of street food-inspired Cantina Tacos at participating stores in early August significantly improved its quality scores from early August through the third week of September.

The Mexican QSR sector normally averages in the single digits when it comes to quality. Taco Bell had been scoring in negative numbers since April, bottoming out at -14 in the middle of June. However, since Taco Bell’s new menu items debuted in August, its quality score for men 18- 49 rose and reached positive territory through the end of September. The chain’s single-digit scores were inline with the rest of the sector.

Then Taco Bell launched the MLB playoffs campaign featuring Yankees general manager Joe Girardi and closer Mariano Rivera. The effort has been unable to keep the chain's score afloat since the post-season began. Taco Bell’s quality scores recently started sagging down to -2.1.




Long John Silver’s Pushes Value to Families
The $10 price point has become a battleground for dining chains, notably Pizza Hut, which has been offering any pizza for that price. Seafood chain Long John Silver’s has joined the fray with a two-week “$10 Family Pack” promotion on Oct. 10, targeting families of four.

Long John Silver’s is even throwing in a free dessert, along with eight pieces of Alaskan whitefish, a family-size order of coleslaw, and 12 pieces of hushpuppies, as part of the $10 deal. The catch? Consumers must provide a competing pizza chain coupon (including fellow Yum! brand Pizza Hut).

The Long John Silver’s promo impacted its value score among adults with kids under 18 almost immediately. Leading up to the promotional period, value scores jumped from negative numbers to 7.5.

BrandIndex's Friday column in Brandweek: Facebook, Gap and TBS

'The Social Network' Effect

Oct 15, 2010

Despite the controversial depiction of founder Mark Zuckerberg, The Social Network dramatically boosted Facebook's consumer impression (general positive feeling) with adults 18 to 34, per research firm YouGov. TBS' perception also got a lift, as the network continued to promote Major League Baseball playoffs. Meanwhile, Gap's buzz score suffered a steep drop, soon after the retailer changed its logo, and later reverted to the old one.

The Brandweek BrandIndex 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 measures impression.

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.

The report spotlights:

• Facebook
• Gap
• TBS


'The Social Network' Lifts Facebook
Adults 18 to 34—more than any other age bracket—gave Facebook a major impression lift, following the release of The Social Network. Older consumers, however, have reacted differently. For the 50 and over demo, The Social Network had a decisive negative impact. Here’s a look at how the movie affected each demo bracket:

Adults 18-34: More than doubled Facebook's impression score (originally 23.5) between Sept. 22 and Oct. 6. By the movie's opening day on Oct. 1, the score rose to 46.4, and then inched up some more to 51.5 almost a week later.

Adults 35-49: Created minor impression score growth, but showed indecision before and after the movie opened. After rising 10 points from Sept. 22 through the end of the month, this demo's impression score downshifted several points. It then rebounded after the movie opened and settled at a score of 35 on Oct. 6.

Adults 50-plus: Already trending in the low 20s, the Facebook brand declined to 13.7 by Sept. 28 among this group. The impression score increased a few points by Oct. 1, but is now back to 20.




Gap Loses Buzz
Gap’s unveiling of a new logo has sent its buzz score with adults over 18 nosediving.

While retailers’ buzz scores often zigzag due to sales and ad campaigns, Gap took a distinct sharp turn downwards from 11. 7 to 5.5 on Oct. 4, the day the company proposed a new logo on its Web site. After sharing the logo on its Facebook page, the retailer received backlash from consumers.

Even though Gap had reverted to its old logo on Oct. 11, its buzz score did not bounce back and dropped lower from 4.9 to 3.3.




TBS Scores With Men 18-49
Nearly two weeks of nonstop MLB playoffs—sometimes as often as three games a day—and promotions on Conan O’Brien’s talk show, have boosted TBS' perception score with men 18 to 49.

From Sept. 1 through Oct. 6, the network's buzz score for the demo shot up 10 points from 11.9 to 21.8. The score then dropped a few points and regained momentum, ending at 18.6 on Oct. 11.

Place AARP Media Sales/JD Power survey in Brandweek, Edmunds.com, The Car Connection

Adults Over 50 Dominate Car Purchases

Sept 27, 2010

- Elena Malykhina

When it comes to car purchases, adults over 50 surpass younger consumers. In fact, this demographic is responsible for three out of five new car acquisitions, according to a report by AARP Media Sales, in conjunction with J.D. Power and Associates.

Sixty two percent of adults over 50 currently account for new vehicle acquisitions, compared to two years ago, when they accounted for 50 percent. The number is even higher for hybrid sales. Adults over 50 make up 73 percent of hybrid purchases.

Out of the 39 car brands measured in the study—which examined the media habits and profiles of more than 41,000 new vehicle buyers—32 credited the bulk of their sales to consumers over 50 years of age.

As a comparison, car sales were down 36 percent in 2009 versus 2008. And, according to the study, adults 18-49 were responsible for 71 percent of this drop.

"The primary reasons for this escalation is the huge population of baby boomers turning 50 and their ability to spend on higher-ticket items during harsh economic times. [Meanwhile] younger adults are moving back home to ease basic financial burdens, such as housing and food," said AARP Media Sales research director Mark Bradbury.

Additionally, the study found that 33 percent of adults over 50 pay cash for their cars, compared to 13 percent of consumers under 50. Consumers over 65 are also an increasingly important demo for carmakers. Nearly 24 percent of new vehicles are purchased by adults aged 65 and older, which is nearly double (12.7 percent) compared to 2001.




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Car Buyers Shop Online, Wear Out Their Old Vehicles and Are Increasingly Over 50

Car buyers today shop online first, buy a car because they need one and are likely to be over 50. And those over-50s dig hybrids, accounting for 73 percent of their sales. That's the portrait emerging from two recent surveys, one by Chrome Systems, which looked at buyer research and purchasing behavior, and the other from AARP Media Sales and JD Power, which looked at the age of car buyers.

In the Chrome survey, 83 percent of respondents said they were likely to shop for a vehicle online before making a purchasing or leasing decision. Those researching vehicles on manufacturer and dealer websites cited price and preferred equipment selection as the leading factor in purchase decisions. Fewer respondents said they purchased or leased a vehicle simply because they wanted something new: just 21 percent in 2010, down from 32 percent in 2009. The No. 1 reason cited for purchasing or leasing a new vehicle was that the respondent's current vehicle was unreliable or broken down (26 percent, up from 19 percent in 2009).

Brand loyalty is fading, with consumers saying they are less likely to want to purchase the same brand of car they previously owned (35 percent in 2010 versus 39 percent last year). Dealer loyalty is also increasingly a thing of the past: Only 24 percent said they selected a dealer because they or someone they knew had previously purchased or leased from that dealer. That's down from 37 percent in 2009.

The AARP-J.D. Power survey held a few surprises for anyone who thinks the 50-plus crowd isn't interested in buying cars -- or in buying hybrids. According the survey (as reported in Brandweek), 62 percent of adults over 50 currently account for new vehicle acquisitions, compared to two years ago, when the over-50s accounted for half of the new car purchases.
The percentage is even higher for hybrid sales. Adults over 50 make up 73 percent of hybrid purchases.

The shift toward older buyers is the product of the huge baby boom generation (those born between 1946 and 1964). Baby Boomer Headquarters estimates that 75.8 million people were born in that period, and in 2010 alone, 4 million of them are turning 50. It's also a group that has money to spend on higher-ticket items during tough economic times, AARP Media Sales research director Mark Bradbury told Brand Week. Older-buyer dominance is likely to continue. In 2010, 40.2 million people in the U.S. are 65 or older. By 2050, that figure will double to 88.5 million, according the U.S. Census Bureau.

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Shoppers Over 50 Account For Most New Car Purchases

By Richard Read Reporter September 28th, 2010

Car shopping

Ever since Baby Boomers came of age in the late 1950s and 60s, America has been obsessed with youth culture. Each week, it seems there's a new report talking about the spending power of Millennials or Tweens or some new, even younger demographic. But when it comes to cars, young people are just kid stuff: according to a new study from AARP Media Sales and J.D. Power and Associates, it's the 50+ crowd that really spends the dough.

The data from that study (see below) reveals some very interesting news. At first glance, we see that shoppers 50 and older account for a whopping 62.5% of all new car sales. That in itself is impressive, but doubly so when you consider that just ten years ago, that same demographic accounted for less than 39% of new cars sold. That's a surge of over 20% in nine years. What's more, a huge chunk of that is due to the 65+ crowd, who make nearly 24% of new car purchases.

Chart from AARP Media Sales, in conjunction with J.D. Power and Associates

At the other end of the scale, shoppers under 35 used to account for almost 25% of showroom sales, but today, that figure has slipped to 12.7%. Even the highly coveted 35 - 49 year-old segment -- the demographic characterized by growing families and high earning potential -- has slid to less than 25% of marketshare.

All this goes to show who's fared well during the economic downturn and who hasn't. While many younger Americans don't have the income or reserves to spend on a new ride, older shoppers are capable of laying cash on the barrelhead. (We mean that literally: the study found that 33% of buyers over 50 paid for their cars in cash.)

Of course, there are a few sticking points with the study. For one, the study was carried out in part by AARP Media Sales, which is part of the AARP family, which depends on the 50+ market. Proving the potency and value of older Americans is pretty much the AARP's job description, so to see the AARP put together a study proving the potency and value of older shoppers...well, it's to be expected.

Also, there's no word on how many 50+ adults are buying cars for their kids -- though even in those cases, it's still the adults who are doing the buying. (Mary Kate and Ashley may have some say in the color of the twin MINIs that mommy buys them, but she's the one signing her name on the dotted line.) The figures might also shift somewhat if the study were re-done with used car sales, but for now, the 50+ crowd is tops.

BrandIndex research on chicken wing dining competitors in Nation's Restaurant News

Krystal's new wings boost customer satisfaction, traffic

October 13, 2010 | By Mark Brandau

Krystal's new Game Time Wings are driving increases in its customer satisfaction scores to levels near those of larger wing competitors, according to data from YouGov BrandIndex.

The 376-unit chain said it also has seen a boost in customer traffic since introducing the wings, which were targeted at its core sports-loving customers.

New York-based BrandIndex, which measures consumer perceptions of hundreds of brands, said Krystal’s “satisfaction” and “buzz” scores have improved markedly from negative levels in August before the rollout of the wings.

Krystal’s satisfaction score — calculated by asking BrandIndex’s sample of 5,000 consumers whether they’re satisfied customers of a certain brand and then subtracting negative responses from positive ones — started at negative 9.8 on Aug. 2 and ended at 36 on Oct. 4.

Buffalo Wild Wings finished the period with a satisfaction score of 46.3, higher than Krystal’s but still down from its scores in the 60s and 70s through August, when the chain aggressively courted football fans by hosting fantasy football draft parties and rolling out its NFL “Pick ’Em Challenge.” Meanwhile, Hooters began August with a 23.6 satisfaction score, but tapered off to end the period at 12.8.

“Satisfaction scores tend to be a lagged metric following a promotional period, and Krystal’s scores would be good news for any brand,” said Ted Marzilli, senior vice president for BrandIndex. “Satisfied customers tend to be repeat customers and tend to spread the word. Krystal should feel good about those numbers, especially with Buffalo Wild Wings’ and Hooters’ scores declining, which tells you that it’s not an industry effect.”

Brad Wahl, Krystal’s vice president of marketing, said the gains in traffic that Krystal has seen since rolling out Game Time Wings in late August are exceeding the company's expectations.

He added that gains in BrandIndex’s data and Krystal’s own internal measures of guest satisfaction reflect the efforts the chain took during the research and development process to ensure consistent preparation of the wings. The brand’s goal wasn’t necessarily to bring in new customers but to spur incremental visits from its loyal core customers, he said.

“The strategy is still about giving our loyalists another reason to choose the brand, to get the extra visit,” Wahl said. “We’re definitely seeing the gain in transactions we wanted, and our internal tracking shows that the frequency of our core customer has improved.”

Krystal will continue its promotional tour of the Crave Cruiser, a branded truck outfitted for sampling Game Time Wings at college football games and NASCAR races. The tour wraps up Halloween weekend at the Amp Energy 500 at Talladega Superspeedway. But Krystal will continue to promote the wings through football season and into basketball season, Wahl said.

“The other strategy with the rollout was, rather than do an LTO and walk away for a while to talk about something else, we’re going to stay on wings for a full six months,” he said. “So the sampling tour will conclude, but it won’t stop promotional support for Game Time Wings. We plan to promote them all the way through March Madness.”

Chattanooga, Tenn.-based Krystal's restaurants are located in the South and Southeast.

BrandIndex's Friday column in Brandweek: chicken wings, Southern Comfort & beer

Chicken Wing Chains Battle Over Football Fans

Oct 8, 2010

Looks like chicken wings are the unofficial food of the football season, supported by the numerous promotions recently launched by restaurant chains. In its latest report, YouGov examined the satisfaction scores of three wing chains since early August, zeroing in on men 18 to 49.

The Brandweek BrandIndex 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 measures satisfaction (whether consumers are pleased with a brand) and index (overall indicator of brand health).

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.

The report spotlights:

• Budweiser
• Chicken wing chains
• Southern Comfort


Wing Chains Step Up Marketing Efforts
According to the National Chicken Council, 1.25 billion wings were consumed during the last Super Bowl weekend. So it's easy to see why restaurant chains have started marketing more aggressively to football fans.

Buffalo Wild Wings rolled out its “Pick’em Challenge” to predict NFL game results. Meanwhile, Southern chain Krystal introduced Game Time Wings as a permanent menu item and set out on a six-city sampling tour. Then there's Hooters, which promotes its wings all year long.

BWW ended August with scores in the 60s and 70s—well ahead of its rivals. But the chain has since tumbled significantly. In mid-September, BWW crossed paths with the surging satisfaction scores of Krystal. Krystal is the success story of the football season, propelling itself out of negative satisfaction scores in August (as low as -9.8) to its current score of 36.

At present, BWW has bounced modestly to a score of 46.3, just ahead of Krystal. Hooters began August leading Krystal with a 23.6 score, but has tapered off during the past two months and is now standing at 12.8.




Bud 'Happy Hour' Giveaway Disappoints
Anheuser Busch’s free Budweiser giveaway on Sept. 29, as part of a “National Happy Hour” promotion, didn't help the brand's perception. Budweiser barely moved its index score (which measures quality, value, reputation, satisfaction, impression and willingness to recommend) for adults 21-29.

The lack of sizzle is a snapshot of the perception issues facing large beer brands such as Budweiser, Coors and Miller—all tracking at zero or below zero when it comes to index scores. Bud sales were down 9 percent last year and are expected to stay the same this year.

Bucking the trend are the craft and niche beers, which may not have the massive distribution as the larger brands, but their marketing tactics have earned them high index scores in the prized male demo. For example, Samuel Adams and Dos Equis have been hovering in the 50s and 30s index range, respectively. Both took 10-point jumps once football season began.




Southern Comfort Returns to TV
Brown-Forman’s Southern Comfort rolled out its first TV campaign in two years, promoting a new lime liqueur brand and reintroducing the name to its target 21-24 demo. The 15-second spots appeared on many male-focused networks, including ESPN, ESPN2, Spike and Comedy Central, as well as on entertainment networks. In addition to TV, Southern Comfort launched digital, social media and in-store ads.

So far, the campaign seems be catching on. Southern Comfort’s buzz score for adults 21-24 jumped from zero in early September to 11.9 in October. The brand surpassed the spirits sector average by mid-September.

Break NBC Universal's INVIDI investment in Wall Street Journal and Advertising Age

• October 4, 2010, 9:00 PM ET

NBC Invests in Targeted TV Ads Business

By Jessica E. Vascellaro

A company that delivers targeted ads to television sets has scored another endorsement.

Getty Images

NBC Universal plans to announce Tuesday an investment in Invidi Technologies Corp., according to the companies. Terms of the deal aren’t being disclosed. A NBC Universal spokeswoman called the investment “small.”

Google, Motorola and WPP’s GroupM are already investors in Invidi, which targets ads to set-top boxes based on the geographic location of the box and other data.

Ed Swindler, executive vice president and chief operating officer for ad sales at NBC Universal, said the company made the investment to be able to test future advertising models. “We would anticipate doing some testing as soon as it becomes possible,” he says, adding NBC hadn’t worked out any details.

The promise of the technology is big: allowing advertisers to show multiple ads during the same commercial slot. It is the kind of targeting that Internet companies continue to brag they can pull off online but hasn’t been possible in the TV world.

Invidi, along with other technologies companies like Visible World, are trying to change that. But progress has been slow. Invidi was founded ten years ago and has raised around $90 million in financing to date.

Its system works like this: Advertisers specify which audiences they want to reach, like women in the market for a car; then Invidi serves their ad to the set-top boxes of people it believes are likely female car buyers. Invidi can target ads according to gender and age inferred from data about the types of viewers who generally watch a show, without knowing what the show is.

Advertisers can also target users – say customers who have purchased their products recently — based on household purchase behavior from third-party databases. In those instances, television operators permit the data provider to program the set-top box with data specific to each household, like whether there’s a pet in the household or the family frequently travels. When it’s time to run ads, the box “votes” for the most appropriate ad based on how it has been programmed as well as factors such as the time left in the advertisers’ campaign. Invidi doesn’t see the data.

If a commercial slot is a pizza, Invidi can “take that pizza and slice it up in very very small slices,” says Michael Kubin, Invidi’s executive vice president.

The company has landed a few partnerships. Verizon’s FiOS TV service began targeting ads to specific geographic zones through Invidi in March and Dish and DirecTV are planning to start selling Invidi-targeted ads in the first quarter of 2010, Kubin says.

NBC’s investment comes as Comcast is close to closing a deal to acquire control of the company from General Electric– a partnership that could provide some interesting ad-targeting possibilities.

“Comcast has a large set-top box infrastructure that would be helpful to all these technologies,” says Swindler, referring to TV ad-targeting tools in general. But “we have to wait for the merger and see what comes of it.” He says NBC’s decision to invest was made independent of Comcast’s bid to acquire control of NBC Universal, and that NBC hadn’t discussed the company with Comcast.

For its part, Comcast last year tested Invidi’s technology in its Baltimore market through a partnership with Starcom MediaVest Group. The viewers who saw targeted ads were less likely to change channels by about a third when compared to viewers who saw non-targeted ads.

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NBC Universal Invests in Addressable-Ad Concern Invidi

NBCU Wants to "Test" Future Models as Ad Business Grows Complex

by Brian Steinberg
Published: October 04, 2010

NEW YORK (AdAge.com) -- NBC Universal has made a strategic investment in Invidi Technologies Corp., a company that has developed software that enables marketers to send different commercials to different households via use of a set-top box. The alliance is a signal that TV broadcasters are growing more interested in the technology behind so-called addressable advertising, that could change the way in which media outlets conduct business.

"This is just one in a long record of things we've done with partners and advertisers and third-party technology providers," said Ed Swindler, exec VP-chief operating officer of NBC Universal ad sales, "with the goal of testing the future models for advertising as the environment becomes a lot more complicated, and to learn how the business model is going to change over time."

NBC Universal is the first TV broadcaster to join Invidi's ranks of investors, which also include Google, Experian, WPP and Motorola. NBC Universal and Invidi declined to elaborate on the amount NBC Universal invested or the size of the stake, but indicated the transaction did not make NBC Universal a majority stakeholder in Invidi.

Addressable advertising, in which a single piece of ad inventory can be "split" into multiple spots, each sent simultaneously to a group of households more likely to be interested in the particular message or product being conveyed, has long interested the ad industry. Yet even as the words crop up on executives' salivating lips, actual implementation of the technology seems to bob continually in the distance.

Invidi, which holds several patents for a system that distributes addressable ads and measures response to them, has begun rolling out in different systems, said Michael Kubin, an exec-VP at the company. Mr. Kubin said Invidi has installed software with Verizon's Fios system since March and expects to do the same with DirecTV and Echostar Communications' Dish Network in the first quarter of 2011.

"This is not an easy thing to figure out," said Mr. Kubin. "The technology is hard. There are a lot of barriers to implementation. Putting software into set-top boxes is not easy. There are a lot of barriers, but we have narrowed them down one at a time, and we are getting there."

NBC Universal has demonstrated in the past its interest in testing out new systems of advertising. In September of 2008, the company unveiled a partnership with Google that would allow the search-engine giant to sell pieces of advertising inventory on some of NBCU's cable channels. The theory at the time is that the pact would allow some advertisers to customize their ad plans to reach particular audience segments and also that the agreement might bring new categories of smaller advertisers to TV who might not normally by the medium.

TV broadcasters have reason to investigate the technology. One idea being floated around some ad-buying agencies is to have them buy up addressable inventory from sellers and then allocate it to their clients -- a notion that might upset TV programmers accustomed to controlling the advertising inventory that accompanies their well-known shows.

"Content owners need to make sure that the business model is respected so that we can continue to invest all the money -- the billions of dollars -- we invest in programming," said Mr. Swindler.

The pact with Invidi comes just weeks ahead of when Comcast Corp. is expected to complete its acquisition of a majority stake in NBCU. Comcast has in the past expressed an interest in using NBC Universal's programming to reach broader audiences and get them to test out emerging technologies such as video-on-demand and more. Invidi said its technology was recently tested in Comcast's Baltimore systems, where the addressable ads "proved to be 65% more efficient and 32% more effective."