18 lanuary 30, 2012 | Advertising Age

Priceline throws William Shatnerl Negotiator under the hus-literally

PRICELII|E from p.2

which that predias the induttry *ill grow another q% ,hir year to $117 bilIion Amrding to trkntar dat* Priceline spent S31.5 million in measured media *"o"Sh the first 10 months of 201L. In
the same perio4 Tiavelocity spent $50 million, Frryediu $4O7 millioru IGy"k $28.6millioru and Orbia $18.4 million Couldnt Priceline.om have just kept

several new scripts from Butler Shin*-and "one in particular stands out in which we basically Mr Keller said he throw you off told Mr Shatner "He rcok it in great snide and that's the way he's been for 14 years.") How he got the news *ight be in

he was receiving

affi"

Mr'shamer and put'him in a new role

for the fixed-price servie? "You wouJd said. 'tsut they are so imbued with the passion of gefting this message out thaithey thought thi best way to do it was to bite the bullee Or in my case, biting the dust "

thinh" Mr Shatrer

:
Priceline is

question, but one thinds dear: lvfu. Shatner didnt get dr. buu-*,

bmE

Ab but thir is-the world of iiil

"soimbued

withthe

paring three rent Priceline ads with one qpot eadr from Travelociry and Expedia Priceline's averaged 20% bev ter than ie rivals. In fact, it came in almost 5% higher than the average for all TV ads in its index. The only area where the Priceline ads trailed its competitors was in reputation. While the reputation scores
were not low they were not as strong as

INTHEBAI,ANCE:
Priceline
CMO

Brett Keller says The Negotiato/s

s

Nobody is ever really dead, and Mr.1 passionof Shamer acnrdly remains tmder con- | gettingthis tract to Priceline. So udll we see The I rT)essaQsout

,*agoouaorunu,,rr@
cioes

future depends on currentcampaign

results.

wrrh-

out Mr. earlier quarter, Mr. Keller added that the new direaion of the ad campaign
was not a reaction to one-stop shopping

Shatner,

based on the ad, he has perishe4but I *dnki/s also f"ir tq say thaq,

"I think

based

on how this current

campaign

Tiavelocity's or Expedia's.

Mr, Keller also said the clange to focusing ads on its fixed-price service was not precipitated by any'shift in Priceline's financial health. In its most recent financial earnings report, for

offered by Kayakcom. 'Absolutely not " Mr, Keller said. "This is less about the aggregators and more about what we have to offer."

moves forward, we'll make a decision on Keller saidthe direction we go,"

Mr

Between Priceline, Expe&a.com/ Tiavelocity.@rr, Orbiu.com, aggregator Kayak.com, and a new entry,
RoomKey.com, online uavel is a com-

third quarter

207L,

the Norwalk,

Conn.-based company posted revenue of $f.S billion, up 45Yo from the year-

petitivq $109 billion-a-year business, acqording to PhoCusWright Researd:r,

'nVe'revery mudr a rezultsdriven @mpany.The ne>ct phase of the campaign follows the afrcrmath that follows the demise. You will hear from the survivors the crash talking about The Negotiator and what he has done for dreru and some of their feelings about what he has taught them about our new

thatthey thoughtthe bestwayto doitwasto bitethe bullelOrin myGse, biting the

dust'

of

products and services."

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October 17,2011 | Advertising Age

THE CgNSUMER I55UE

Gonsumer potruer shifts to deueloping markets

Kraft,Unilever,P&Gamongpackage-goodspowerhouseslookingtoglobalhotspotsforgrowth
shifting "center of grairy." "I dont ddnk there's any question, if spEAK oF THE consurner to o(ecutives someone loola ba& at ow company 10 years from now, they'll wonder if the from a global company, and the image no longer likely to be a mother in some leadership of the company at this time Mdwestern subr:rb, but more likely took the.rght steps to move the center of gravity of the compny more toward one in China India or Brazil. The combination of more rapid eco- Asia more toward Africa, where the babies are being borru where the new nomic and population growth and
BY JACK NEFF jneff@adage.com

mffiflf,ffiN

ozo

of sates f rom developins markets

kets.It

is

1
Unilever

Reflecting that, of the eht new region-

ss%ru
3UrW
,

i
,

ernerSence oI nsmS ernersence o[ risins middle dasses developing markets stands in stark ontrast to the stagnation of the U.S. economy and erosion of the middle dass. Trouble is, many ompanies are focused by business footprint and-management strucrure squarely in the U.S. But that's starting to c}ange as keters adapt to the market.

the in

households are

b.i.g b.itg

formed, and cer-

iL

tieFinp rwosgf{inie+-6-'Afocused
firimarily on tltr-LlS-and slower-growd ing food categories, the ;s orimarilv on a elobd-.i

rq@^"

tainly we've been in the midst of that " Mr. McDonald saidThat statement was among the factors that led Sanford C. Bemstein to upgrade P&G on the belief that the company is preparing to slim down a mar- Nonh American-heavy organization that's grown too big for the relative size and importance of the North American tr(raftlbods ad&essed the *tl] ;l.ftrot?--=*or,nuner market. Analyst Ali. PbrS

al dwters given rouglily equal werght by Unrlweg six are *holly or mainly made up of dweloping markets. Marketers such as Unilever and others are approaching the shift of conflrrner power to developing markets as a two-step process, said Marc de Swaan Arons, chairman of the global market-

i"S onsultanqy Effdve Brands.

First,

still

Kimberty{arkC.orp.
Mr. Dbadj
said" Hel?ing

AV/oW
SourcetGoldrnanSadts'conparry reporb

they're cenralizing management of

global brands at headquarters and trimming regional organizations, partiarlarly i. developed markets, to foctrs more squarely on sales,local marketing initiatives and "activation" or promotiorr, he said- Nexq he expeas more marketers to move global management of bran& to the places where most sales are--developing markets. But he said the overall revamping proaess is only about 4$% omplete today for global marketers. It's not just the markercrs that will

fuel spm{a-

iss

tion of a

possible paper spinof{, Kirk Perryr, who led a recent yet-to-be-implemented special project looking at how

11rg*that .:5.nr*rye $2 bil]ion to $5 bjllion and involve thousands of layoffs.

t_t

could

I*&

P&G should restructure, last month beame president of the tissuE-towel

business. A P&G spokesman dedined to

:\.. .
; :

Co., if nor takinga step quite so drastiq to reconfigure sirnilarly for the growth of its *r,Io*.r base outside the U.S. Chairman-CEo Bob McDonald h.lp"d c}oice to move. But another \ilay P&cG may lmk to fuel restmcuring speculation during the ompanyi August earnings shift its focus is by divesting some US.. confeience call he mused about P&G's centric businesses, sudr as tissue-towel,

develooinErilets. d"""Jop**Gffi.o. N.,- *mffi Now some e4pea Procter & Garnble

Other analysts, howeve4 believe the restmcnrring is likely to be more modest, and a person familiar with the matbq any restrucnring ir likelv ter said anv restrucnrine is lik"ly to be far more modest. P&G it lik"ly t^ "hi$ pPple to developing markee, .ough often gvi"S existin6 o<ecutives the

Unileve/s recent restucturing in which it split 3p its.8t"P sroul thal oyersees product development and

comment

i{OOfrtgpt
cites Asia, Africa as

BOB

have

to adap[ howeve[

said former

,.center'f advertising into more produa Ifriftiidit --' '--' -: gories while organizing and dolvnsizing Y'v!rL'' its regional operations into eight multi-

fJ"-

ri",ll-6.rep&G6

P&G Global Marketing pffice4 now

marketing onsultant, )im-Stengel.' As markercrs shift more marketing runagement to developing markets, ad agencies and other marketing+ervices firms will need to follow them, and he believes agencies are generally behind marketers in that regard.

ffi;il;--

wheru

counoTr "dustery" was also foctrsed on reshaping the company to matc} its consruners. fr&VJs% pf U"ile"e* _ business comes from devgloping mar-

Ad Age lnsights delves into the intricacies of the media industry in both China and In[Ia
Five things marketers need to know about targeting these booming markets

-fl^^ ^l-..^^. orvr -:ll:^aaillgrs! uuv trullrvtl Dtlvplllt c.tD. I ttg ^,.L^-;L^* recent launch of 3G seryices and better .smarrphone penetration have created

past 10 years has experienced astronomical Sowth from 3.5 million to

'major

opporn:nities for mobile media Over the next five years, the mobile handset will be &" p.i*uty means of internet access for most Indians.
3. OIIITRST lltEDIA SUPPORIII{G AT IIAST 16
LA}{EUAGES

BY BRADLEY

J0HtlS0N bjohnson@adage.com

have access to broadband connections.

industry is highly fragmented with

area to be bullish about, even amidst economic trlcertainry it's the emerging-market consumir. And you am find more of them in China and India than anywhere else. But what do the mefia oppornrnities look like in those markets? How might marketers readr those consumers? Ad Age Insights is offering two comprehensive industry rePorts exarnirdne oppornrnities for me&a marketers and agencies in China and India.

* r"*r,t

"-t

Z.

IOCAT II{TERI{il PTAYERS tlAllE TTCETITIII

PROSPECIS Al{D GTOBAT AlllBITIOl{

large number of foreign and domestic operators led by six main firms.
5. PRtI{T hITDN TACES COllll'lERCIAL AIID RIOUIAIORY CIIAI,TEIIGES

GROl{I}l

China's relatively stria regulatory envihave rorunent and linguistic

PHINT(T nlty INN a. vtltrtLt IIIDIAN ll|TDIA

helped the cor:ntry darclop

its own

group of internet companies that in terms of scale and size matdr some
international players. Companies such as Baidu in seardl RenRen in sodal media and Gobao in e-bommerce hav'e well-established positions in China and have the arnbition to erpand into new
geographic markets.
3. SIATEIt, BROAOCASTERIS }IIUST-BUY TOR
AD'ITRTISERS Al{D SILTS II{IIE}ITORY VIA AIJCIIOTI

"Chinese Media Industry"

and

"Indian Media Industry/' each indude

more than 1,000 pages of analysio data and c}arts in reports that are designed As the only truly national brcadcaster
China's state-owned CCIV is aqguably the sole way to readr a national au&ene. This scartity value allows CCTV

China's traditional print-media indusury remains higlrly fragmented with strong state involvementand a ompler< regulatory environment that can require di[ferent ownership stmctures for commercial and editorial operations In the short temr, these drallenges have been masked by a booming print-ad market. longer terr& publishers rr. ]ik"ly to be undercapitalized as they try to d*lop more 4ggressive didtal strategies.

In the past 10 years,Ir'.&a's ad'rertising markei has quadmpled in size. Its media and entertainment industry is

GotoAdAge.cod
wfiitepapento

downloadfree executive

claracteriz"d by great linguistic and cultural &versrty with traditional and new media operating in 15 key languages.
4. RTI.ATIIJEIYUI{TAPPED
TOTJI{S

summariesort0
purchasethese l'lARIfiIS Il{ Sl'lAIl'

reports

AI{D RURATARIAS

Major cities have media reach similar

to developed markee. But India's small cities, villages and towns represent a relatively untapped market. TV is *id"ly available, but newspapers, @m-

ble. They were produced by G2Mi Researc} (a researcfr service from

U.K.-based Heernet Venttrres, provider of media resear,c} and analyare available ordusively from Adtrenising fue. Key face: CHIIIA I.
TARGEST II{TENNTT il|ARl(ET II{

to be comprehensive and easily accessi-

IllDIA
l.
IY0RLD'S IAAGEST

HtlilED EilIERTAIIII'IEi{T

I}lDUSTRY

mercial ra&o and online rnedia still have relatively low penetration in semi-r.rrban and rural areas.
5. GROIIII{G AI{O PROTIABIE IIEIYSPAPER IIIDUSIAY

iir; *a

ie advertising inventory to the highest bidder The annual auctio&

to auction
held in NovembeS is primarily done in conjunction with mdia agencies and is a must-bid event for leading ompanies.
4. tl IG}l
PEt{ ETRATIOII OT

Infia has arguabb th" world's largest filmed entertainment industry with 1,300 films produced in 15 languages and more than 3 billion admissions
each year, The industry has evolved over the past 10 years from single-

ItlE

}TORTD

DIGIIAT DISPIAYS II{

Ttlt

China has beome the world's Iargest intemet market with nearly 480 milmillion mobile Iion users (with internet users). Web use has Srown rapidly, with a qrpical user nolv spendinq aLout 20 hours a week online. NIady W% of internet users in China

OIIIDOOR II{DI,STRY

2n

China's outdoor ad industry has relied heavily on digital rign displays due to a scarciry of uaditional outdoor in6astructure and lax rules on placing di$tal signs in of6ce buildings and public

multiplexes. screen cinemas Intemational media firms suc-h as WaIt Dsney Co., Sony Co{p. and Viacom have made significant investrnents.
2.

to

Unlike most developed mdia markets, India's newspaper industry continues to grow both readership and advertising. India has a vibrant newspaper indusry, wfth the market leaders published by a

small number

of

family-controlled

groups. Online ad spending still has a

tll0Rtrl0tjs l'l0BltE P0IEI{T|ALlTlIH AL}tl0SI 800 htttti0]tsuBScilBERs

relatively srirall share of the marker Local-language newspapers with a strong readr in small towns and semiurban areas have the best prospects.

transport. The Chinese outdoor

ad

ln&a's mobile-subscriber base over the