Instagram Is a Marketer's Best Friend — For Now

Via Mashable

Instagram represents by far the best platform for marketers to interact with consumers, according to a recent study from Forrester Research.

Looking at 2,500 posts on seven social networks, Nate Elliott, marketing analyst for Forrester, found that engagement on Instagram roughly 60 times higher than Facebook.

IMAGE: FORRESTER RESEARCH

"What does this higher engagement rate look like in practice? Last month, Red Bull posted a video of a unique snowboarding half-pipe on both Facebook and Instagram," Elliott wrote in a blog post. "A few days later, we noted that the brand’s 43 million Facebook fans had liked the video just 2,600 times (a 0.006% likes-per-fan rate), while its 1.2 million Instagram followers had liked the video more than 36,000 times (a 3% likes-per-follower rate)."

At one time, Facebook had been the favored platform for marketers. Companies devoted marketing budgets to brand pages, some accruing millions of followers.

Changes to the system that regulates the Facebook newsfeed have rendered those efforts somewhat ineffectual. Marketers have been vocal in theirdisappointment with engagement on Facebook, particularly at the fall in organic reach.

Forrester warns that the Facebook-owned Instagram could fall victim to the same issues. As more brands flock to Instagram, it will become more crowded and therefore more difficult for companies to stand out.

A Pepsi-inspired Capsule Collection Is Headed To Bloomingdales

Via PFSK

PepsiCo. has been a part of pop culture since its formation in 1965, manufacturing everything from food and beverage products to music and films. Their latest campaign, ‘Live For Now,’ has so far fostered a first of its kind interactive video, leading to a foray into fashion.

The capsule collection will launch on May 21st at 15 Bloomingdale’s locations across the nation. The products are the result of a collaboration between Pepsi and several fashion and technology brands, including Bang & Olufsen, Original Penguin by Munsingwear, Goodlife and Del Toro. The compilation will include 60 different items, including T-shirts, swim trunks, baseball caps, sneakers and even skateboards. Pepsi’s only rule was that all products incorporate Pepsi’s familiar red, white, and blue colors.

The designs were prompted by another Pepsi project called ‘The Art Of Football’ in which professional soccer players from around the world were paired with artists to create original pieces. That success inspired the brand to move into fashion, and if this project is successful who knows where they’ll go next.

Starbucks 'handcrafted' sodas—our review is in

Via CNBC

The Seattle-based beverage giant is testing "handcrafted" sodas at stores in Atlanta and Austin, Texas, according to Brand Eating. "The kicker here is that Starbucks is using a machine to add carbonation to the drinks so that you can ask them to adjust the level of fizz to your liking," the report says.

(Read more: Is tea ready for its 'Starbucks moment'?)

Flavors include Ginger Ale, Lemon Ale, and Spiced Root Beer, all made on the spot by a barista and therefore promoted as fresher than soda out of a can. The company says the drinks are made with natural ingredients: "no preservatives, no high-fructose corn syrup and no artificial flavors." For example, the Spiced Root Beer is described as "a refreshing blend of classic root beer and signature Starbucks Chai spices that include cinnamon, nutmeg and clove."

How They Taste

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Jason Jepson, a marketing executive in Austin, ordered all three new sodas at a local Starbucks. He said the setup in stores is similar to having a Sodastream machine.

"Get a glass and pour in the 'flavor mix,' add another chemical and put it in a special glass," he said. "Put [the glass] in a very fancy silver soda stream. Close the door and wait 30 seconds. Pour into the proper size cup, and you have a drink." Each drink cost him $2.45.

The results did not impress him (but remember, this is a test). Of all three, the Lemon Ale was Jepson's favorite. "The flavor was okay, but you can really tell that the mix comes from a box." The other drinks received two thumbs down. On Ginger Ale: "Where is the ginger? Where is the flavor?" And as for the handcrafted Spiced Root Beer, he didn't hold back: "Thomas Kemper just rolled over in his root beer bed," he said. "Lack of 'spice,' so Barq's is safe. Lack of sweetness, so A&W is safe. ... The worst by far."

Jepson said he and four friends tried out the drinks, and all agreed that "there is a chemical taste to each flavor, and there is no way any were really 'handcrafted.' " On the other hand, "It is a quick and easy drink."

(Related video: Frequenting of fast food falls)

Other reviews have been positive. "Melody" of Starbucks Melody called the Spiced Root Beer "crazy good ... sweet, refreshing, and a lovely distinctive root beer flavor!" She gave it two thumbs up, though she passed on giving an opinion about the Ginger Ale. "To be honest, I am not a fair reviewer of the ginger ale because I've never been much of a fan of ginger ale." Melody also noticed customers ordering Starbucks Refreshers and having carbonation added to make them "sparkling"—"I tried a sip and loved it."

Starbucks told CNBC that the sodas are handcrafted in the sense that a barista makes them and that the company is soliciting customer feedback.

"This is a test, and that's part of it," said spokeswoman Linda Mills. She said Starbucks is "so far excited with the response" in Austin and Atlanta. Half of sales have been not to carbonate the three highlighted sodas but to add fizz to core products like tea, Refreshers "and in some cases coffee."

It's too soon to tell whether the company will expand the test to other cities, Mills added. "We need to get through the summer season." 

In the meantime, Jepson plans to stick to his usual—"Venti skinny mocha, no foam. That is my 'go to' and I will pay more for that."

DPSG Reports First Quarter 2014 Results

Via BevNet 

PLANO, Texas — Dr Pepper Snapple Group, Inc. (NYSE: DPS) reported first quarter 2014 EPS of $0.78 compared to $0.51 in the prior year period. Core EPS were $0.74 compared to $0.53 in the prior year.
For the quarter, reported net sales increased 1% as a sales volume increase of 1%, favorable product and package mix and net pricing were partially offset by unfavorable segment mix and 1 percentage point of foreign currency. Reported segment operating profit (SOP) increased 14%, or $40 million, on net sales growth, lower commodity costs, including an unfavorable year-over-year LIFO comparison, and ongoing productivity improvements.
Reported income from operations for the quarter was $260 million, including $12 million of unrealized commodity mark-to-market gains. Reported income from operations was $197 million in the prior year period, including $7 million of unrealized commodity mark-to-market losses. Core income from operations was $248 million, up 21.6% compared to the prior year period.
DPS President and CEO Larry Young said, “We had a strong start to the year. Once again, our teams remained focused and executed against our strategy in a highly competitive and challenged environment. We maintained distribution and availability across our key CSD brands and packages and gained distribution on our key juice and tea brands and packages. We continued to invest behind our well-loved brands and engaged with our consumers and shoppers through innovative marketing programs. Rapid Continuous Improvement (RCI) continues to be embedded throughout the organization and we’re making good progress on our lean tracks. Our 2014 priorities remain unchanged. Our teams will continue to build the TEN platform with programming focused on driving awareness and trial, provide consumers with a range of products that meet their evolving needs and execute with excellence in the marketplace.”

EPS reconciliation			First Quarter
			2014			2013			PercentChange
Reported EPS			$0.78			$0.51			53
Unrealized commodity mark-to-market net (gain)/loss			(0.04)			0.02
Core EPS			$0.74			$0.53			40

EPS – earnings per share
Net sales and SOP in the tables and commentary below are presented on a currency neutral basis. For a reconciliation of non-GAAP to GAAP measures see pages A-5 through A-8 accompanying this release.

Summary of 2014 results(Percent change)			First Quarter
			As Reported			Currency Neutral
BCS Volume			(1)			(1)
Sales Volume			1			1
Net Sales			1			2
SOP			14			16

BCS – bottler case sales
BCS VolumeFor the quarter, BCS volume declined 1% with carbonated soft drinks (CSDs) declining 1% and non-carbonated beverages (NCBs) declining 2%.
In CSDs, the category continued to face significant headwinds. Dr Pepper volume decreased 4%. Our Core 4 brands, which include TEN, were flat as a mid-single digit increase in Canada Dry was partially offset by a mid-single digit decrease in Sunkist soda and a low-single digit decline in A&W. 7UP was flat in the quarter. Peñafiel increased double-digits on new product innovation, and Squirt declined high-single digits. Fountain foodservice volume decreased 3% in the quarter.
In NCBs, Hawaiian Punch volume declined 8% on category headwinds and increased competitive activity. Mott’s declined 1% in the quarter, lapping double-digit growth in the prior year. These declines were partially offset by a 2% increase in Snapple and a 3% increase in Clamato.
By geography, U.S. and Canada volume declined 2%, and Mexico and the Caribbean volume increased 3%.
Sales VolumeSales volume increased 1% for the quarter primarily driven by concentrate shipment timing.

2014 Segment results (Percent Change)			First Quarter
			As Reported										Currency Neutral
			Sales Volume			Net Sales			SOP				Sales Volume			Net Sales			SOP
Beverage Concentrates			3			7			13				3			8			14
Packaged Beverages			0			(1)			15				0			(1)			16
Latin America Beverages			2			12			30				2			17			63
Total			1			1			14				1			2			16

Beverage ConcentratesNet sales for the quarter increased 8% on a 3% volume increase driven by concentrate shipment timing, concentrate price increases taken at the beginning of the year and favorable discounts driven by shipment volume timing. SOP increased 14% on net sales growth and lower marketing investments of $4 million.
Packaged BeveragesNet sales declined 1% for the quarter as growth in contract manufacturing was more than offset by branded volume declines. SOP increased 16% on favorable commodity costs, including an unfavorable LIFO comparison, ongoing productivity improvements and lower labor and benefit costs. These were partially offset by lower net sales.
Latin America BeveragesNet sales for the quarter increased 17% reflecting favorable mix, higher retail pricing associated with the pass-through of the sugar tax in Mexico and a 2% volume increase, which was partially offset by increased discounts. SOP increased 63% as net sales growth and ongoing productivity improvements were partially offset by increases in transportation costs.
Corporate and Other ItemsFor the quarter, corporate costs totaled $57 million, including a $12 million unrealized commodity mark-to-market gain and lower professional fees and information technology expenses. Corporate costs in the prior year period were $80 million, including a $7 million unrealized commodity mark-to-market loss.
Net interest expense decreased $9 million for the quarter compared to the prior year.
For the quarter, the reported effective tax rate was 34.3%, as a $2 million deferred tax benefit due to a New York State law change decreased the effective tax rate by 0.9%.
Cash FlowFor the quarter, the company generated $129 million of cash from operating activities compared to $77 million in the prior year period. Capital spending totaled $37 million compared to $46 million in the prior year period. The company returned $135 million to shareholders in the form of stock repurchases ($60 million) and dividends ($75 million).
2014 Full Year GuidanceThe company continues to expect full year reported net sales to be flat to up 1% and Core EPS to be in the $3.38 to $3.46 range.
Packaging and ingredient costs, including LIFO impacts, are expected to decrease COGS by 2% on a constant volume/mix basis.
The company expects its core tax rate to be approximately 35.5%.
The company continues to expect capital spending to be approximately 3% of net sales.
The company expects to repurchase $375 million to $400 million of its common stock.
x

Snapchat 'Live Film' Introduces Taco Bell's Next Locos Taco

Via AdAge

The name of the next Taco Bell Dorito taco is a mouthful: Spicy Chicken Cool Ranch Doritos Locos Tacos.

The chain is announcing the latest in the Doritos Locos Taco line in just as lengthy a format: a four to six-minute-long movie ephermal app Snapchat. Taco Bell said a film of length is a first for Snapchat, which is known for seconds-long messages that disappear after they're viewed. The new taco will be available May 1, with TV, radio and additional forms of advertising launching then, but the social media campaign is kicking off today.

The movie, called "Rush Order," has a script and a cast of Vine and Snapchat "influencers," said Nick Tran, social-media lead at Taco Bell. The plot is about an employee with a despotic boss who insists the employee find out not only what the next Doritos Locos Taco is, but also acquire one.

"Rush Order" was directed by director Jason Zada, co-founder of digital agency Evolution Bureau, which was known for Office Max's Elf Yourself. (He's also known for the interactive short "Take This Lollipop.")

The chain created the film "snap-by-snap" using Snapchat's Stories feature, which makes videos available for only 24 hours after they're first uploaded. Filming of the movie began this morning, and Taco Bell's social-media team, along with the help of Interpublic's Deutsch, added scenes in real time from various locations throughout Los Angeles during the day. The film will conclude at the MTV Movie Awards, just before the start of the show.

An announcement will be made made in the first half of the awards show -- Taco Bell in a longtime sponsor of the broadcast -- during a sponsorship announcement as the program cuts to a commercial break. The announcement will encourage viewers to find out the next flavor by viewing the short flick on Snapchat.

Several marketers have taken to using Snapchat recently, including McDonald's, which in February used the service to announce its new Bacon Clubhouse Burger. Taco Bell also used Snapchat last year to announce the comeback of the popular limited-time Beefy Crunch Burrito.

The latest Dorito taco introduction was more about "innovation on the inside" and flavor combinations, said Stephanie Perdue, VP-brand marketing. In the case of this taco, the innovation is the use of spicy chicken.(The three preceding Doritos Locos Tacos -- the Nacho, Cool ranch and Fiery tacos -- all used ground beef). "We heard from customers that they wanted chicken, and we also heard from them about pairing flavors," said Ms.Perdue, adding that this newest taco was the highest-rated during testing among the Doritos tacos.

Mr. Tran said that the chain's marketing strategy with the Doritos Locos Tacos line is to do something innovative with each new introduction. Since the chain had already used Snapchat for an earlier launch, the chain decided to innovate within the platform itself with an "innovation from the inside" that parallels the product's novelty.

Taco Bell has been among the most active and pioneering in social-media marketing, a strategy that helped it be named Ad Age's Marketer of the Year in 2013.

"One thing we're serious about is how we engage with our fans -- we engage them the way they expect to be engaged," said Tressie Lieberman, director-social and digital marketing. "We do it in a way that provides value back the audience."

Why Bud and Jay Z's 'Made in America' is Going to California

Via AdAge

Budweiser's "Made in America" music festival is going bi-coastal, adding Los Angeles as a venue alongside Philadelphia.

The addition of a West Coast city to the annual fest curated by Jay Z marks a significant expansion for the event, which will once again be held for two days on Labor Day weekend. Musical acts -- which in the past have included A-listers such as Beyonce -- have not been announced yet.

But the brewer is once again cranking up the hype surrounding the event, which typically gets significant ad and marketing support. Jay Z on Wednesday announced this year's plans at a press conference at Los Angeles City Hall alongside L.A. Mayor Eric Garcetti and Budweiser U.S. brand VP Brian Perkins.

The choice of L.A. as a second venue is revealing from a business perspective. The brewer faces deep challenges in the all-important California market, including competition from Mexican imports such as Corona and Modelo Especial, as well as a bevy of California-based craft beers.

The increased investment in the festival is also notable because it signals that A-B InBev plans to continue putting a big push on music-based marketing under its new lead marketing executive for the U.S, Jorn Socquet. Mr. Socquet earlier this year took over as U.S. marketing VP from the departing Paul Chibe, who oversaw Made in America's 2012 launch.

The lead marketing agency for Made in America is Translation with production handled by Live Nation. Proceeds benefit the United Way. The end-game for A-B InBev is marketing, and drawing a younger and more multicultural crowd to Budweiser.

The brand and brewer could use a boost in California. A-B controlled some 50% of the state's beer market 20 years ago, but has steadily lost share in recent years, falling another another 1 share point last year to 37.5%, according to Beer Marketer's Insights. That's far less than the brewer's 45.6% national share. By contrast, Constellation Brands -- which markets Corona and Modelo in the U.S. -- gained a full share point in the state and now has 13.8% share, according to Beer Marketer's.

A-B InBev is bringing the festival "right into one of the largest metropolitan areas where it's been vulnerable," said Benj Steinman, president of Beer Marketer's, who noted that California is home to some 400 craft brewers. "This is obviously an attempt to shore that up with a vehicle that A-B would say has a proven track record."

Much of California's beer market is driven by Hispanics, giving Constellation a natural edge with its Mexican imports. It's no surprise, then, that A-B InBev is planning to give the L.A. event a Hispanic feel. Mr. Perkins in an interview pointed to L.A.'s significant Hispanic population, saying, "we need to make this festival relevant to Hispanic culture."

The brewer is undecided about promoting Made in America with national TV ads, as it has done in the past with spots starring Jay Z.

But as always, the event will be promoted heavily in social media and with related events, Mr. Perkins said. The brewer will host "Made In America" parties in 30 cities in the weeks leading up to the event.

Last year, Beyonce co-headlined the Philadelphia show along with Nine Inch Nails. Made in America celebrates a "mash-up" of styles, ranging from hip-hop to rock to electronic dance music, Mr. Perkins said. Today, "people don't define themselves by music style. And that's an insight that I don't think other festivals have capitalized on," he said.

But the brewer might also have to deal with logistical issues in L.A., where it could draw as many as 50,000 people to the heart of downtown, according to the Los Angeles Times. The newspaper on Tuesday reported that L.A. Councilman Jose Huizar has warned that "street closures and beer sales could create a 'nightmare' for downtown residents."

Mr. Perkins pointed to Philadelphia, where he said officials are "delighted" with the event, which he said helps the local economy.

Scientists Predict Viral Hits With 80% Accuracy

Via PSFK

The mechanics of viral sharing have proved a complicated subject for researchers. They’re just keeping pace with the continual flux in content-sharing tools and mechanisms, but now a new set of variables have allowed researchers at Stanford to predict viral events up to 80% of the time, a statistic that’s catnip to brands trying to keep their products on the minds of customers.

The term that the researchers focused on was a ‘cascade’ – an event in which photos or videos are shared multiple times. Their research will be presented at the International World Wide Web Conference, where a team of scientists, including Jure Leskovec, assistant professor of computer science, Stanford doctoral student Justin Cheng, Facebook researchers Lada Adamic and P. Alex Dow, and Cornell University computer scientist Jon Kleinberg, will present their formula for predicting with 80% accuracy when such a ‘cascade’ will double in shares. Their discoveries are based on their initial finding, using over 15,000 Facebook photos (stripped of names and identifiers), that at any point during a ‘cascade,’ there was a 50-50 chance that the number of shares for a given item would double.

For a long time, it was uncertain whether cascades were even worth measuring. According to research recently provided by Facebook and university researchers, only 1 in 20 photos posted on the site gets shared even once, and just 1 in 4,000 gets over 500 shares. “It wasn’t clear whether information cascades could be predicted because they happen so rarely,” Jure Leskovec, assistant professor of computer science, told Stanford’s news website. Events larger than 500 shares can reach all the way up to the range of Gangnam Style’s 2 billion shares, and was difficult to determine what was worth investigating for cascades. As it turns out, though, these events are essential to how culture spreads on the internet.

The more easily you can think of an example of viral content, the more likely their rules are to have applied to its history. The accuracy of their predictions goes up according to the number of shares a given photo gets, going as high as 88%.

Beer Is About to Invade Your Snapchat

Via TIME

Marketers are taking a growing interest in the ephemeral messaging service Snapchat, using it to debut new sandwiches and offer customers exploding coupons. Now beer manufacturer Heineken has devised a way to make disappearing images engaging. The company will give attendees of the Coachella music festival the inside scoop on a lineup of secret concerts by sending them photo clues throughout the weekend.  

With the promotion, which the company is organizing through an account called HeinekenSnapWho, Snapchat users can receive snaps to help them figure which two artists are planning a surprise joint performance on a given day at the festival. A tightly cropped picture of an artist’s clothing, for instance, might be used as a tip. Users that respond to Heineken with the correct artists get an early confirmation of an act scheduled for the Heineken House, the stage where the beer maker is hosting acts.  


“When you’re at a music festival like Coachella, a lot of people are kind of fueling the rumor mill of who’s going to show up, who’s going to be the surprise act,” says Eric Steele, creative director at Wieden + Kennedy, the ad agency that worked on the campaign. Heineken hopes to leverage this curiosity to get in front of more music fans. “A lot of [brands] are using it as another broadcasting medium. Knowing the way people organically use Snapchat, it’s much more of a two-way conversation.”  

One to two surprise acts per day will be revealed via Snapchat. Pattie Falch, director of sponsorships and events at Heineken, says the company is the first beer brand to be active on the app.  

Social media networks can prove a thorny advertising venue for the alcohol industry. Snapchat in particular has a very young audience that includes many teenagers. In the United States, alcohol makers generally self-regulate their marketing and require that 70 percent of the people likely to see an ad be 21 or older. For the Snapchat promotion, Heineken will initially greet users with a photo of a bouncer and ask them to confirm that they are of age. Users are required to make similar confirmations to follow alcohol brands on Twitter and Facebook.

Despite these limitations, social media marketing is becoming increasingly important for the alcohol industry. Beer and spirits manufacturers spent about eight percent of their marketing budgets in digital channels in 2011, according to a recent Federal Trade Commission study of the industry’s advertising practices.

PepsiCo Eyes Summer Launch for New “Real Sugar” Colas

Via BevNet

Beverage Digest reported that PepsiCo is set to launch three new Pepsi cola products that are marketed and packaged as being “made with real sugar.” The beverages, to be released this summer, will come in regular, vanilla and wild cherry flavors and are labeled with the nostalgic PepsiCo logo.

The new products appear to be taking the place of the PepsiCo’s popular “Throwback” sodas, which included limited-edition, sugar-sweetened versions of its flagship cola and Mountain Dew, both of which were packaged in nostalgia-inspired cans and bottles. The sodas, which also featured the phrase “Made with Real Sugar” on packaging, debuted in 2009 and saw intermittent distribution through early 2011. In March of that year, PepsiCo announced that it would make Pepsi Throwback a permanent part of its beverage portfolio.

PepsiCo also launched another sugar-sweetened cola in 2009 called Pepsi Natural, an all-natural product made with sparkling water, natural sugar, natural caramel and kola nut extract. The beverage was sold in select U.S. markets before being discontinued.

Despite significant traction for its Throwback products, it appears that PepsiCo pulled back the reins on the sodas sometime near the end of 2012. The Pepsi Throwback Facebook page, which has nearly 273,000 “likes,” has not been updated since Dec. 23, 2012. The last post on the product’s Twitter page came on Dec. 28, 2012.

While some consumers will undoubtedly welcome the new sugar-sweetened products, the beverages are unlikely to have a major impact on the sustained slide of PepsiCo’s CSD sales. However, the company is later this year expected to take a significant step toward reducing the sugar and calorie content of its drinks via its partnership with flavor supplier Senomyx. Senomyx markets an ingredient called Sweetmyx, which is said to allow receptors in the tongue to perceive things as sweeter or saltier, thus enhancing the flavor profile of reduced-calorie foods and beverages. PepsiCo has exclusive rights to use the ingredient in all non-alcoholic beverages.

Marketers Return to Summer Music Festivals, Seeking Millennials

Via AdAge

Marketers will again spend more on music sponsorships this year, much of it during the summer festival season that kicked off with Coachella's start last weekend in the California desert. By the time Coachella concludes this weekend, the festival will have charged millions of dollars for connecting its millennial attendees with brands including Heineken, Red Bull, Samsung, H&M, JBL and Sephora.

But it's only the beginning of another active summer for marketers eager to reach young people. More than $1.34 billion will be spent sponsoring music venues, festivals and tours this year, a 4.4% increase from 2013, according to a report from IEG. "If you're a brand you want to be associated with someone having a transformational moment in their life," said Chad Isaaq, exec VP of business development and partnerships at Superfly Productions, co-creator of festivals including Bonnaroo in Manchester, Tenn.

A few brands have tried to fully own such "transformational moments" lately, yielding the springtime Red Bull Music Academy in New York and Budweiser's end-of-summer Made in America concerts in Philadelphia. "There's been increasing interest from brands to take greater ownership in the festivals and events they support," said Chris Johns, director at Frukt, a brand and music strategy agency.

But the high costs and risks of producing a Coachella-sized event mean most brands prefer to support existing festivals, of which there are plenty available. Last year, some 447 brands played a role in 300 music festivals worldwide, according to analysis by Frukt. Not surprisingly, the most dominant category was alcohol.

"When we started nine years ago, there weren't that many big music festivals in the U.S.," said Matt Frampton, VP-advertising, Pitchfork Media, which produces the Pitchfork Music Festival in Chicago. "Now there are more opportunities for brands to be involved."

Organizers from Pitchfork and Bonnaroo say they are careful to choose brands that fit the experience, sometimes even turning away lucrative sponsorship opportunities. But with big festivals like Bonnaroo, Pitchfork, Lollapalooza, the Electric Zoo Festival and many others still on tap for the summer, marketers will keep looking to capitalize, sometimes in surprising or new ways.

Not sponsoring the festival. Organizers don't like it but some brands are putting their spending into bespoke experiences outside festival grounds. General Motors last weekend partnered with McDonald's and L.A. nightclub Bootsy Bellows on a celebrity-studded party that was only near Coachella, not part of it. Guests could ride in G.M.'s new Stingray, with a professional driver at the wheel.

"Our formula is not to be at the festival, because outside the festival grounds a person can have a driving experience," said Dave Barthmus, general manager-GM West Coast Communications. "You can create your own environment, plus it's more cost efficient because there isn't the cost of being on the Coachella grounds."

Pampering sweaty festival-goers. Music festivals can be exhausting and dirty, but marketers are providing respite. At Bonnaroo, for instance, Garnier served up hair-washing stations and Mattel offered gaming tents. Mr. Johns sees even more opportunity in this space for brands. Imagine a toilet-paper company sponsoring a luxurious bathroom experience or a telecommunications company providing reliable service. "It's not being fully tapped," he said.

Invading EDM. Electronic dance music is among the music industry's trendiest genres. Huge crowds of millennials turn out for DJs like Avicii and Skrillex, with brands including Anheuser Busch, Motorola and Heineken now in tow. With EDM, however, booze marketers seem to be paying special attention to responsible marketing and safety: Heineken introduced a campaign this year with the theme "Dance More, Drink Slow."

Mining for content. GM is posting video and photos from its Coachella-adjacent party on its Drive the District blog, according to Mr. Barthmus. "A lot of what we do is driven by media content," he said. "If there is a program that isn't content worthy, we probably don't do it."

Finding attendees on their smartphones. Coachella's mobile app can send users push notifications triggered by proximity to beacons placed around the festival. It's unclear whether sponsors are able to participate in those push notifications, and Coachella representatives didn't respond to a request for comment, but rest assured that the tactic is coming.

Mr. Isaaq said it will become common for attendees with the event's app to get push notifications from brands as they walk near sponsors' tents. "Technology allows brands to disrupt the experience in their favor," he said.

How Big Advertisers Are Using Next-Gen Messaging Apps Snapchat, Kik, Tango, Line and WeChat

Via AdAge 


"What in the world is WhatsApp?" Reuters echoed the question many in the U.S. were asking when Facebook acquired the mobile messaging app in February for a stratospheric $19 billion. WhatsApp was more familiar to the rest of the world, where it had built a bulk of its estimated 450 million users -- and where other competitors were gaining steam.


Each began as "over-the-top" applications to avoid texting charges, but they've quickly blossomed into vibrant social media portals that are robbing users from Facebook and Twitter.

WhatsApp, the largest of the apps, appears to be sticking to its committment to avoid ads. Yet five of its sizable competitors have opened up to marketers. They're all unproven. And overall, the apps collect far less data than social networking sites. "Some of them actually pride themselves in not collecting it," said Etyan Oren, director of partnerships at IPG Media Lab. Despite their hurdles, the apps have growing and tantalizing user numbers that are drawing brands to experiment with the evolving platforms.

Today, IPG is out with a new report detailing the best practices for brand marketers on the platforms. Here's how some of the world's largest ad spenders are tip-toeing into the mobile messaging waters:

Snapchat
On Monday, Taco Bell, an early Snapchat adapter, announced it would premiere its newest taco on the popular ephemeral app with a short movie, a first for Snapchat. By letting companies create pages as regular users, Snapchat allows brands toy around with its playful format. McDonald's recently leapt in with superstar LeBron James. But IPG cautions that the app offers "no analytics beyond seeing the number of followers."

Kik
The three-and-a-half year old service, out of Canada, is less well-known, but IPG is a big believer in its potential. Its user base, roughly 125 million, skews young. Unlike other apps, it is built in HTML5, which allows chatting and sharing to stay inside its own browser. So Kik is positioning itself as a competitor to other chat apps, as well as Google Chrome and Firefox. Brands, the IPG report says, "are already on Kik" -- their web content is readily available. IPG launched a campaign with Kik and Syco/Columbia Records to bring fans of the boy band One Direction onto the app. In its first three months, the effort netted 956,800 installs and over 2.4 million visits to a Kik chat room with the band.

Tango
In December, Twitter's mobile ad network MoPub unveiled an in-stream native ad product to run with Tango, the U.S. app with some 200 million users. Supercell, makers of the mobile video game Clash of Clans, and Dunkin' Donuts have bought space for app-install ads inside Tango. IPG calls it the "blingiest" of the apps, with lively animated stickers gracing the screen. But unlike Kik and Snapchat, which require intensive design and creative efforts, Tango is can be a cheaper platform, said IPG. And thanks to a recent influx of cash from Chinese e-commerce giant Alibaba, Tango is poised to expand internationally.

Line
One Direction aren't the only heartthrobs making use of these apps. Sir Paul McCartney has released eight schmaltzy stickers on Line, where he has some 10 million followers. Sharing and sticking the former Beatle's likeness comes at $1.99 a pop. Line, which is dominant in Japan, has over 500 such sticker characters, whose sale -- together with in-game purchases -- raked in $338 million in revenue for Line's parent company in 2013. This month Line will open up a market for anyone to sell stickers. Over the weekend, the company trumpeted ambitious plans to hit one billion users by 2015.

WeChat
China's popular app is not just a chatting tool. It has ventured into e-commerce and, with Tenpay, the payments service from parent company Tencent, mobile money. Major brands like Burberry and PepsiCo have launched campaigns on the platform. McDonald's ran a "Big Mac Rap" contest. WeChat is wary of turning off users with excessive sponsored content, and its private group chats can keep brands in the dark about feedback. But IPG predicts the app will expand further into online-office retail connections -- and further westward.

"A lot of these companies are gearing up to make a big push in the U.S. market," Mr. Oren said. "That has all the other apps on high alert."

Millennials Trust User-Generated Content 50% More Than Other Media

WHAT'S THIS?

Via Mashable



It seems as if millennials have avoided traditional media ever since they learned how to read.
The results of new research by marketing startup Crowdtap and the global research company Ipsos shed new light on how the connected generation gets its news. When it comes to trust, it turns out, millennials almost always choose their peers over professionals.

User-generated content (UGC) is media created by your peers. It includes status updates, blog posts and restaurant reviews — any content from non-professionals without any real motivation besides adding an opinion to the sea of already existing opinions. In a more logical world, it isn't the type of content we'd trust over a professional's review.

Ipsos' study, however, reveals that millennials trust UGC just as much as professional reviews. UGC is also 20% more influential when it comes to purchasing and 35% more memorable than other types of media. You can chalk that up to the fact that millennials spend five hours per day with UGC.
Click here to view an infographic that gives the visual breakdown of how much time millennials are spending with UGC, where they're getting it and how it's affecting the media landscape.

Mountain Dew Bottle-top Helps Colombian Skaters Tighten Their Nuts

Via Marketing Magazine

PepsiCo brand Mountain Dew has taken packaging design into extreme sports and created a bottle top that doubles up as a socket wrench, which skateboarders can use to tighten their nuts.The 100-second video shows a skateboarder in Colombia doing tricks in a skatepark, with on-screen text stating: "A skater spends 50% of his time riding."He is then seen coming off his board."The other 50% repairing what he breaks," the copy continues. "Moutain Dew presents Dew Bottle Tool. The First Tool in a Bottle Cap.

Dew Bottle Tool from Alejandro Gomez on Vimeo.