The Hill
Sunday, November 23, 2008
SEARCH
Home
HillTube
Mobile
White Papers Portal
New Member Guide
BLOGS
Pundits Blog
Congress Blog
Blog Briefing Room
NEWS
Leading The News
Business & Lobbying
K Street Insiders
John Breaux
John Engler
Vin Weber
Dave Wenhold
The Executive
Campaign 2008
Endorsements '08
COLUMNISTS
Dick Morris
A.B. Stoddard
Brent Budowsky
Ben Goddard
David Hill
David Keene
Josh Marshall
Mark Mellman
Jim Mills
Markos Moulitsas (Kos)
Byron York
COMMENT
Editorial
Letters
Op-eds
Weyant's World
CAPITAL LIVING
Today's Stories
50 Most Beautiful 2008
Other Features
In The Know
Bookshelf
Food & Drink
Onward and Upward
Hillscape
RESOURCES
Classifieds
Subscribe
Order Reprints
Last Six Issues
Useful Links
RSS


Home arrow Mark Mellman arrow Changes Accounting for technology
Mark Mellman PDF Print E-mail
Changes Accounting for technology
Posted: 04/20/05 12:00 AM [ET]

Last week I described a coming revolution in the delivery of television programming that will fundamentally alter advertising, with profound implications for political campaigns.

Within 10 years, viewers are going to be able to control the ads to which they are exposed. Unless voters and consumers want to see an ad, they won’t.

Responses by commercial advertisers to this challenge focus on three dimensions: ubiquity, quality and targeting. Ad makers are struggling to make their work interesting enough that viewers actually want to see it. They are then putting it in every possible channel from the Internet to word of mouth. In addition, marketers are utilizing the superior targeting capabilities of cable to focus their resources on audiences most likely to yield results. Sophisticated targeting also enables advertisers to alter ad content to make it more enticing to particular segments.

Perhaps the most celebrated success of the new marketing paradigm was BMW’s short films. The auto company hired top directors to make five short films staring BMWs, which became a rage on the Internet. More than 14 million downloads were recorded, and BMW sold more than 200,000 cars in the United States for the first time ever that year. “The wave of the future,” cheered the marketing world. But think about the differences we in politics face in cost, audience and scale.

BMW spent $15 million making its films appealing. Campaigns spend $18 thousand dollars or less on their average positive ads. No one I know of has spent more than $70,000 making a candidate spot. The average 30-second spot you see on TV costs $375,000 to produce.

A few years ago, top creative agencies offered to make some spots for the party. With “everything donated,” they estimated a spot could be made for as “little” as $1 million. Chanel spent $10 million-$20 million on its recent ad.

When candidates point to a $5 million Coke ad and ask their media consultants, “Why don’t mine look that good,” I want to scream, Sam Kinison-style: “BECAUSE YOU SPENT 10 GRAND AND THEY SPENT 5 MILLION!”

It is possible to make compelling films cheaply (see my cousin’s forthcoming documentary “Mad Hot Ballroom”), but it doesn’t happen very often. Indeed, most of the advertisers who have tried to replicate BMW’s success have failed, even with big budgets and the world’s top directors.

While political spots are vastly less expensive than commercial spots, our audience is also different. Product marketing, whether on TV or the Web, begins with an audience that wants a car and is at least interested in a BMW. The parts of our base we need to mobilize because they vote infrequently are, almost by definition, not interested in politics. The swing voters we must persuade, likewise. How successful would the BMW films have been in a group of hardcore cyclists who weren’t planning to buy a car?

Finally, the scale on which we need to communicate has not been matched, even by BMW. If each BMW download was a different registered voter, those voters represented about 11 percent of those who cast ballots in the last presidential election. And how many of those downloads were in any one state or congressional district?

Of course, it will be very useful, and very expensive, to target ads in a more fine-grained way. But higher-level targeting may not get political ads all the way over the hump to compelling.

The advent of television inaugurated a revolution in political campaigning, with technology driving change. During the next 10 years we will likely see more changes in campaign communication than we have in the past four decades combined.

Mellman is president of The Mellman Group and has worked for Democratic candidates and causes since 1982, including Sen. John Kerry (D-Mass.) last year.

 
 
 
BLOGS
ADVERTISER
Home | Privacy Policy | Terms And Conditions
The Hill
1625 K Street, NW Suite 900
Washington, DC 20006
202-628-8500 tel | 202-628-8503 fax

The contents of this site are © 2008 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.