Dowdy Department Stores Start Looking Cool Again
Wall Street Journal

It seems department stores aren't dying after all.

The sector, long derided for dowdy merchandise, maze-like stores and crumbling facades, is making a comeback. Macy's Inc., Nordstrom Inc. and Kohl's Corp. are posting solid sales gains even as consumers remain cautious and manufacturing costs rise—and they are poised to continue the streak this fall.

Attributes previously viewed as problematic are now working in department stores' favor: scale, and a complex business model that involves a web of third-party vendors and in-house lines. While those once left department stores vulnerable to more focused competitors, they now afford more flexibility in picking and sourcing merchandise. The complexity also gives chains the ability to lure customers in with targeted markdowns without resorting to the storewide discounts that kill pricing power and profit.

Department stores have expanded market share after almost a decade of contraction, according to data from Customer Growth Partners, a retail consultancy. "The mid-tier department stores are unabashedly doing better," said Craig Johnson, president of Customer Growth Partners.

Department stores have an advantage with sales and promotions. Unlike specialty apparel stores like Gap, which have limited sale options because of their narrow product ranges, department stores can, say, tout a sale on home goods while keeping jeans at full price Above, Macy's flagship store in New York in May.

Brands embrace social media AOR
Direct Marketing News

As social media encompasses a larger share of brands' ad spending budgets, marketers are seeking social media AORs instead of a roster of firms for project work. Working with one agency, instead of many, eases the burden on brands by streamlining the social marketing process, industry experts said.

Asked if marketers need a social media AOR, Jon Bond, CEO of New York-based social agency Big Fuel, which was acquired by Publicis Groupe last month, replied, naturally, "Yes, and you need it more than any other kind of AOR, because social media is an octopus and invades everything and creates a huge mess for companies."

Bond explained that many of the responsibilities of a social media AOR don't even involve social media, per se. He added that the social world is littered with "a lot of small, cute little agencies that think it's all just about tweeting—it's not."

"It's about relationships, marketing, how to integrate [the agency's relationship with other firms], legal and compliance issues and distribution," he said. "The level of complexity is so extreme that it's like brain surgery."

Coca-Cola’s Futuristic Soda Fountain to Get 2012 Ad Push
AdAge

Coca-Cola Freestyle has been generating buzz, sales boosts and foot traffic since tests for the futuristic machine were first launched three years ago. Now, as the next-generation soda fountain reaches a critical mass -- it will be in 80 markets by year's end—execs are readying Freestyle's first marketing campaign.

"Even without the benefit of advertising, it hasn't been unusual for restaurants to [see overall sales] rise 20% to 30% when they put the machine in," Mr. Fox said. "When word gets out, there's a great curiosity factor, and it really doesn't seem to recede."

In addition to working on a 2012 marketing push, a new Facebook app and mobile app are also in the works, which will allow consumers to mix up and share favorite Freestyle combinations. Mr.Farrell envisions the recipe being converted to a 2-D barcode and scanned at a machine to immediately generate the blend. Barcode scanners will be retrofitted for testing on a limited number of machines in the first quarter of 2012.

"Think about being a brand manager and seeing a snapshot of how a brand, a new product or a product that's not at retail is performing. It's mind-boggling, from a marketer's perspective," Mr. Farrell said. "I don't think we'll really understand the total value for a few more years."

Social channels deliver better ROI, study says
Direct Marketing News (Syndicated to Marketing Daily News)

Social channels deliver deeper consumer interactions and provide marketers with better ROI than traditional media channels, according to a study conducted by social marketing firm Crowdtap and marketing consultant Joanna Seddon.“Social channels outperform when we look to apply qualitative metrics to media by looking at the actual effect on consumers and lift, said Brandon Evans, CEO and founder of Crowdtap.

Evans said social interactions provide lift for such key performance indicators (KPIs) as brand equity, favorability, familiarity, brand advocacy and purchase intent.
The so-called "Brand Influence" study, published August 3, also found that online banner, TV and magazine advertisements were less effective than sampling, house parties and online discussion groups.

“You've got to understand people's reactions to every medium,” said Evans. “How enjoyable and memorable is the experience? Consumers may pay attention to a commercial, but if they don't trust it, that factors in. If a message is delivered in a much richer environment, it will score higher.”

Evans does acknowledge that social, real-world interactions may cost more to produce, but in the end the benefit could potentially provide better ROI.

P&G Ties Up One-Year Deal with BlogHer
Media Post / Marketing Daily News

Women's media network BlogHer is partnering with Procter & Gamble for a year-long program called "Life Well Lived." The program includes both a P&G-sponsored hub at BlogHer.com and specific product engagement opportunities for 10 or so P&G brands across a range of individual blogs in the network.

The program's home base on BlogHer.com uses the thematic verticals: "Looking Your Best," "Getting Organized," and "Getting Happy," with P&G sponsorship of content featuring appropriate products. Bloggers will also lead discussions and sample and review new P&G products, and P&G has a major presence at BlogHer conferences around the country.

The one-year program actually launched at the network's San Diego, Calif. confab, where P&G is a lead conference sponsor, and whose exhibition is a "house" in which 23 of its brands are spotlighted. The four-day conference is one of six BlogHer events this year.

BlogHer President and CEO Lisa Stone tells Marketing Daily the program is the first one-year partnership that the six-year-old blog network has signed. "We have been very fortunate to have Procter & Gamble as a sponsor in the past, and last year they were a lead sponsor of our conference as well."

Many Marketers Disappointed with Mobile Ad Results
Digital Media Wire

New research reports 93% of marketers would increase mobile ad spending if they realized a higher ROI. And of those who are not increasing mobile ad spending, 43% of them cite low ROI as the primary reason.

The survey, via The Relevancy Group and commissioned by mobile and online signup ad platform Pontiflex, also found that just over half of Fortune 500 marketers are dissatisfied with or don't use click-based mobile advertising.

"On mobile, click-based ad units aren't valid options for mobile marketers focused on increasing ROI," said David Daniels, CEO and co-founder of The Relevancy Group. "Mobile advertising requires a dramatic shift that is both focused on and respectful of the user—honoring a good experience with meaningful engagement.

Mobile tagging extends TV ads for brands
Direct Marketing News

The ability to directly attribute a TV ad's conversion path has long eluded marketers, despite TV advertising taking the lion's share of many brand's marketing budgets. However, companies such as HTC Corp. and PepsiCo are lighting that path by using apps for consumers'
mobile devices.

"This is the first opportunity in which we know that this particular creative is driving this number of engagement to that mobile site," says Nicole Saewert, senior manager of digital marketing at HTC, speaking about the ad campaign the mobile device manufacturer launched with Google's Goggles app in June.

The effort, promoting HTC's Sensation 4G smartphone, is running across TV, print and out-of-home. The company has deployed mobile content specific to each channel. Consumers who scan the TV ad with the Google app can view an extended version of a video featured in the ad.