Departments Six Trends in Advertising: Analysis of Successful TV Commercials LEE Dong-Hun For a long time now, advertisements have been used as a strategic tool to promote product awareness and strengthen brand preference, thereby boosting sales, as well as to foster customer loyalty by building customer relationships. Indeed, the American Marketing Association (AMA) defines advertising as an activity to introduce products (ideas, services, organizations, individuals) or boost sales via information-transmitting media. Thus, the primary goal of advertising can be said to be delivering information to people for a particular purpose. These days, successful commercials, both at home and abroad, are evolving from companies unilaterally informing consumers about a product (“telling type”) to those in which consumers voluntarily participate in the spreading of the message (“passing along type”). Thanks to the spread of digital technology, consumers can now actively choose and edit information they want and even control the messages carried by commercials. Flooded by commercials via various media channels, consumers are no longer so easily influenced by them as they were in the past. Accordingly, various innovative ways of advertising are emerging to capture consumer appeal. In other words, characteristics of Web 2.0 (i.e., openness, sharing and participation) are also appearing in the advertising industry. The digital, internet era is demanding a new role of advertising as a means of communication. This report takes a look at recent, popular Korean commercials to identify current trends in advertising and considers their implications for corporate management. This is possible as advertisements are not simply strategic tools for businesses, but a window into society, and so can be used to deepen our understanding of a country’s social fabric. At the same time, successful commercials can act as a powerful means to bring about changes in society. Trend 1 Commercials = New Entertainment A notable change has occurred in how the public perceives TV commercials: they are no longer considered just a method of information delivery, but also have become a source of enjoyment. In the past, commercials were a nuisance to consumers, considered meaningless images to be endured between program segments. The terms “zapping” and “zipping” were coined to represent consumers’ propensity to avoid commercials as much as possible. Today, many viewers enjoy commercials in and of themselves for their artistic value and trendy and humorous plots. For instance, there are websites where netizens can view current and past commercials at their leisure. One of the more frequented sites, TVCF (www.tvcf.co.kr), replays commercials and provides information about models, voice actors, music download services and advertisement reviews. Also, Naver, Korea’s largest portal site, recently created “AD CAST,” indicating how the current trend in advertising has become a part of cultural content. July 2009 | SERI Quarterly | 103 Six Trends in Advertising: Analysis of Successful TV Commercials Also, consumers have gone beyond their traditional parodying of commercials by spending their time actually producing, editing and criticizing commercials. For example, a Kookmin Card commercial “Take it out, it has too many benefits to keep it in your wallet” used the basic concept, copy, and music all of which came from a UCC (User Created Content) contest. This is a prime example of how consumers are increasingly participating in the production of commercials, and reflect the public’s increased interest in advertising. Also, SK Telecom’s “Thinking in T” campaign, the biggest hit commercial in 2008, was used as the foundation for various UCC, where consumers incorporated the commercial’s song into their own creative concepts. Maeil Dairy’s 2007 commercial for its bananaflavored milk called “The Banana was Originally White,” which used UCC-type style filming, raised product sales four-fold, as the realitybased content gained popularity among consumers. The commercial, referred to as “Manager Baek’s Humiliation” by web users, managed to gain huge popularity on the Internet. In the three-episode series, Mr. Baek, a mid-level manager, relentlessly attempts to convince his supervisor of bananas originally being white. The commercial’s success can be attributed to its hidden-camera setting, seemingly placing the viewer in a real-life situation. This added humor, interest and reality to the piece. In addition, the commercial effectively delivered product information through the use of a twoperson dialogue. Maeil Dairy’s Advertisement for “The Banana was Originally White” 104 | www.SERIWorld.org Such originality exemplifies how current commercials have dramatically departed from traditional styles, more closely matching consumer needs and leading advertising campaigns to success by clearly differentiating themselves from competitors’ products and brands. Trend 2 Long-Term Advertising Campaigns Catch Consumers’ Eye Brand image-based commercials, such as “A Second Family” by Samsung Electronics, “I’m Going Home” by Samsung’s Raemian, an apartment brand, and “The Young Days of Choice” by Bacchus, a popular energy drink, have been set firmly in the minds of the Korean consumer. According to the advertising industry, however, companies/advertising agencies usually find it difficult to decide on long-term advertising campaigns or commercial series for their products. This is because the impact of advertising campaigns tends not to be immediately visible. In addition, both advertisers and advertising agents are used to thinking that commercials need to be different from previous ones to appear fresh and new. This explains why popular celebrity models are commonly chosen to showcase products; companies are geared to maximizing the short-term effects of advertising. However, advertising campaigns that use a consistent tone and manner have become the latest trend in the Korean advertising industry. The most representative example would be KTF’s “Do the SHOW” campaign, the most frequently referred to commercial among TVCF’s Best Advertisements for 2007/2008. Its creators were also invited to a seminar at the Cannes Advertising Festival and took the Grand Prize at the Korea Federation of Advertising Associations’ Korea Advertising Awards for two consecutive LEE Dong-Hun years (2007 and 2008). Only three months after the “SHOW” advertisement was launched, its top-of-mind awareness and unaided recall recorded 31% and 99%, respectively. On the fourth month, KTF “SHOW,” which used to be ranked second for a long time, rose to the No.1 brand with over one million subscribers. KTF “SHOW” formed a unity in its series by using consistent tones and manners. Furthermore, subsequent commercials such as the “Korea Report” in 2007 and “Show of My Life” in 2008 became so popular that consumers eagerly awaited future installments delivery through a series of commercials raises not only product awareness but also increases appeal and persuasive power. Long-term campaigns often have effects similar to public service commercials and so help to appeal to the hearts and minds of consumers. Campaigns that depict the periodic changes in Korean society not only arouse nostalgia but also convey that the brand has lived through important events in Korean history together with the viewer, embodying the product as a member of Korean society and consequently raising the brand’s appeal. Trend 3 Humor Increasingly Influential in Advertisement Success According to the Korea CM Institute’s “CM Value Annual Report,” the importance of humor has increased the most in determining brand appeal over the past three years. As a popular source of creativity, humor had been widely used in commercials for food & beverages and household goods because it is an effective tool in attracting the attention of consumers. However, humor had not been used much by companies that cater to consumers who base their decisions on trust and technological prowess (such as companies in the financial, telecommunications and electronics industries.) SHOW “Korea Report” This type of long-term advertising campaign, emphasizing consistency of tone and manner, has been subsequently adopted in product as well as image marketing. Continuous message Recently though, products of “high involvement” as well as “low involvement” use comic motifs for more effective message delivery and enhanced brand competitiveness. Notably, male consumers in their 40s and 50s who are usually unaffected by advertising when purchasing goods showed higher brand preference for those companies that provide humorous advertising. For example, a BC credit card commercial titled “China Trip” created higher brand appeal July 2009 | SERI Quarterly | 105 Six Trends in Advertising: Analysis of Successful TV Commercials |Table 1 Changes in Factors for Advertisement Appeal (Unit: %) 2006 2007 2008 Sensibility Humorous advertisement 5.22 5.96 6.19 Model Attractive models or characters 6.49 6.82 7.20 Audio & Visual Good background music or sound 5.31 5.81 5.73 Audio & Visual Good images or pictures 3.47 3.70 3.83 Model Model matching the product 8.47 7.30 7.17 Brand Reliable company 3.79 3.76 3.50 Expression Technologically-savvy advertising 1.80 1.70 1.53 Sensibility Sexy advertisement 1.13 1.34 0.94 Factors to produce likable brand character Upward Factors Downward Factors Source: Korea CM Institute for males than it did for females. With exaggerated depictions of China, the narrator, through four-syllable Korean phrases comically pronounced with a noticeable Chinese accent, recommends using the BC credit card on excursions to China. The commercial appealed to males in their forties who often use credit cards on overseas trips. Other commercials have used humor to advertise products that are difficult to differentiate from competitors’. For example, LG Powercom’s “Taxi” successfully illustrated the characteristics of optical LAN networks through funny scenarios. Similarly, LG Telecom’s “OZ Trading Company” adopted a sitcom-based form of delivery. By placing a veteran actor and actress in amusing surroundings, the commercial helped raise advertisement appeal and improve brand image. In addition, LG Telecom posted on its homepage a 15 minute blooper-filled, “behind-the-scenes” clip of the commercial to induce consumers to visit their website. Trend 4 Use of Characterful but Non-Celebrity Models The model used in an advertisement is widely 106 | www.SERIWorld.org considered the all-important factor that determines success. As it is increasingly difficult to differentiate between products, the importance of brand image has become that much more emphasized, thus the role of the protagonist has 1 2 3 1 BC Card “China Trip” 2 LG Powercom “Taxi” 3 LGT “OZ Trading Company” LEE Dong-Hun become a crucial element. Certain celebrities have become the “face” of a company brand amid a heavy dependence on a small pool of high-profile celebrities. However, commercials that do not use famous celebrities have been enjoying considerable success of late. Indeed, relatively unknown models have helped to add a touch of reality to com- 4 5 1 2 3 1 KTF “Old Parents in Their Hometown” 2 KTF “One-Year Old Boy’s Show” 3 KTF “Seven-Year Old Boy’s Show” 4 Nongshim “Instant Rice” 5 Woongjin “Lihom” mercials. KTF’s “Old Parents in Their Hometown” explains the convenience of video calls using 3G phones in an easy and persuasive manner through the unlikely use of a plainlooking, elderly couple. In addition, KTF’s “One-Year Old Boy’s Show,” and “Seven-Year Old Boy’s Show” have gained huge popularity among consumers without the use of star power. Non-celebrity models and real life settings are effective in increasing persuasive power and eliciting consumer sympathy. Interestingly enough, the couple featured in “Old Parents in Their Hometown” were later employed in other commercials by Nongshim Instant Rice and Woongjin Lihom on the back of their sudden popularity. KTF SHOW has enjoyed recurring reverberation effects through these two commercials as the couple continues to be associated with their KTF stardom. July 2009 | SERI Quarterly | 107 Six Trends in Advertising: Analysis of Successful TV Commercials Trend 5 Revival of Addictive Advertising Jingles In the 1960s and the 1970s, when Korea started to produce various kinds of consumer goods on the back of rapid economic growth, advertising jingles were the most effective tool in boosting sales. For example, KoKo Syrup’s “Children’s Baseball Games and Boxing Matches,” Bravo Corn’s “Meet Us At 12 O’Clock” and Nongshim Ramen’s “Old Brother First, No Younger Brother First” have stamped an indelible mark on the Korean consumer’s psyche. Then, with the emergence of color TV in the 1980s, a more visual-oriented delivery had become vogue. However, today, many advertisers are finding that new and catchy tunes more easily differentiate advertisements from others than do splendid images or products attached to celebrity imagery. Current jingles focus on heart-moving lyrics and humor, a change from those of yesteryear that simply communicated product features. For example, Lotte’s “Lotte Is the Best Chewing Gum” enjoyed popularity in the past, while the popular songs of today include BC Card’s “Cheer up, Dad” and S-Oil’s “Why on Earth Does My Car Drive So Well Today?” Repetitive exposure to jingles creates significant residual recall about commercials and brands. It also helps raise the commercial’s appeal to consumers and creates long-lasting effects. SKT, which has been on the defensive in light of KTF’s aggressive advertising activities, created a huge sensation in its campaign of “Thinking in T” by employing heartthrob Korean actor Chang Dong-Gun’s lyrical prowess. SKT continued in this direction in 2009, bombarding the airwaves with “Bibidi Babidi Bu.” Jingles have outgrown their simple function as mere background music. They now act almost independently to the 108 | www.SERIWorld.org commercial, attracting consumers with their memorable melodies. This can be illustrated by the numerous renditions of popular jingles available on the internet. They can also elicit brand attachment. Consumers participate in the promotion of brands by remaking the easy and simple lyrics of commercials and spreading their work to others in their community. Trend 6 Shift in Message from Product Features to Consumer Benefits A common rule in the advertising industry is the “one message” strategy. In short, it is based on the premise that one unique selling proposition (USP) is effective. This reflects concerns over how communicating a multitude of messages in a single advertisement may easily distract consumers and cause difficulties in understanding the underlying message, thus weakening the advertisement’s effects. So, a common and frequently made mistake made in current commercials is that they often end up communicating product features while obscuring their message and emphasizing technological prowess. In particular, this trend was noticeable in industries where technological capability was a differentiating point and complex functions were the competitive edge. Recent successful commercials have instead adopted a strategy of soft appeal focused on consumer benefits, rather than one of hard appeal, communicating product characteristics. The keys to success for these advertisements have been the use of consumer language and attractive images when communicating features and technologies. Selecting a simple and clear message as well as delivering messages focusing on consumers' benefits is helpful to raise message appeal, brand awareness and brand power. LEE Dong-Hun A prime example would be Samsung Electronics' “Anycall Haptic Pop,” a popular mobile phone, and PAVV LED TVs. Anycall entered the full touch-screen mobile phone market later than its competitors such as Apple’s iPhone and Cyon’s Prada Phone, but rose as a market leader with its successful advertisement titled “Touch, It Will React.” The company garnered its success through what were considered its most crucial factors: the delivery of messages focused on consumer benefits and a unique, specialized name, Haptic. The commercial for Haptic Pop, “Raise Your Index Finger,” heralded the advent of the “Index Finger Tribe,” another new group of digital users after the “Thumb Tribe.” messages “TV of light” and “Finger-slim.” The commercial also highlighted product differences from previous TVs, pronouncing itself as the next-generation TV. Despite a global economic recession, PAVV continues to reign as the world's first LED TV brand in terms of both brand awareness and sales. As product functions become more complex and competition mounts, the focus of advertising should be placed on consumer benefits. A simple and clear advertising message has more impact than communicating abundant information. As for commercials for high-tech products, communicating core functions and technologies in the language of the consumer is more effective than delivering product features through advertising messages. For PAVV LED TVs, key product features were showcased. Its luminescent diode and slim design were thoroughly emphasized through the 1 2 3 1 PAVV LED “TV of Light” 2 PAVV LED “Movement of Light” 3 PAVV LED “Finger-Slim” LEE Dong-Hun is a research fellow in the Management Strategy Department at SERI. He received his Ph.D in Business Administration from Sogang University, and was a visiting scholar at Columbia University. His areas of expertise include marketing strategy and consumer trends. Contact: [email protected] July 2009 | SERI Quarterly | 109
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