Coca-Cola Ends Sponsorship Of 'American Idol'
12-16-2014, 12:28 PM,
#1
Coca-Cola Ends Sponsorship Of 'American Idol'
Quote:Coke adds life, or so a popular 1976 ad slogan for the popular soda once bragged. It has certainly done just that for “American Idol,” the venerable Fox program that has long featured big cups festooned with logos for various drinks made by Coca-Cola laid out on its judges’ table. What Coke adds, however, it can also take away.

...“After 13 years, we feel it is the right time for the Coca-Cola brand to venture into new spaces and pursue other opportunities to connect with teens and leverage music as a passion point,” the Atlanta beverage company responded when asked why it was leaving the show.

Coca-Cola departs as Madison Avenue has noticeably cut its support of “American Idol,” a program that holds a significant place in the medium’s history but which has suffered significant ratings declines. In 2012, advertisers spent nearly $781.9 million on the show, according to Kantar, a tracker of ad spending. In 2014, they committed $394.7 million – representing a drop of 49.5% over just three seasons. Coca-Cola spent about $49.1 million on “Idol” in 2012, Kantar said. In 2014, it spent about $16.3 million. Ford Motor, another longtime “Idol” advertiser, spent $76.3 million in 2012, but $27.3 million in 2014.

AT&T, which used “Idol” for years to promote text messaging, left the show in January. Ford will return in 2015.

Quote:Coke’s departure brings to an end one of the best-known ad placement deals of modern times. When the company’s red cups were spotted on the judges’ table in 2002, it signaled a new era: TV networks, sensing the disruption to advertising caused by the rise of the digital video recorder, began to allow sponsors prominent entry in reality programming and sports broadcasts. Coca-Cola even transformed the show’s “green room,” where participants could hang out, into a “red room.”

Within five years, advertisers had gained access to dialogue in scripted dramas and comedies on dozens of networks, echoing the medium’s earliest days when sponsors actually owned programs like “Kraft Television Theatre.” Coca-Cola’s decision to appear in “Idol” was “a huge risk,” David Raines, the vice president of integrated communications for Coca-Cola North America told the Atlanta Journal-Constitution in September of 2002, “but it paid off.”

Quote:The company that negotiates Coca-Cola’s ad placements recently advised its clients to find new ways to mix their ad messages with music. MediaVest, a large media-buying firm that works for Coke and Procter & Gamble, among others, released a study in June suggesting advertisers stop linking ad messages to music and instead find ways to curate musical experiences for customers.

MediaVest spent a year interviewing more than 2000 U.S. consumers and making use of online discussion groups and ethnographic studies of 8 U.S. markets and found younger consumers thought less of music that was delivered to them in conjunction with traditional commercial message, but would view more positively any party that might offer more information about songs and artists or even deliver experiences associated with music. In 2014, Honda Motor, a MediaVest client, launched “Honda Stage,”a YouTube channel to present original content from top bands and musicians.

Quote:Ad buyers think “Idol’s” age, in combination with other factors, like a glut of similar shows that have cropped up in the show’s wake over the years, will prevent it from rebounding – unless new celebrities at the judges’ table renew its allure. “Unfortunately, we don’t expect ‘Idol’ to bounce back,” said Billie Gold, vice president and director of buying and programming research at Carat, a large ad-buying firm.

http://variety.com/2014/tv/news/coca-col...201380360/
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12-16-2014, 01:13 PM,
#2
RE: Coca-Cola Ends Sponsorship Of 'American Idol'
Interesting read.

I wonder if Haley would be better off if Idol closed shop ?

Its been discussed that being known as a former idol is a mixed blessing but I think it would be even more mixed if the show struggles on instead of being a positive thing that had its "days in the sun".

Just expanding the discussion. I don't have a strong opinion on it.

Also.. wow those are big numbers for ad revenues near high water marks. No wonder they were willing to through huge money out to get judge names. Still I'm not sure that priority was right.. they didn't focus enough on clearing songs and rehearsal and production to have great current performances from all comers.
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12-16-2014, 01:37 PM,
#3
RE: Coca-Cola Ends Sponsorship Of 'American Idol'
(12-16-2014, 12:28 PM)Miguel Wrote:
Quote:Coke adds life, or so a popular 1976 ad slogan for the popular soda once bragged. It has certainly done just that for “American Idol,” the venerable Fox program that has long featured big cups festooned with logos for various drinks made by Coca-Cola laid out on its judges’ table. What Coke adds, however, it can also take away.

...“After 13 years, we feel it is the right time for the Coca-Cola brand to venture into new spaces and pursue other opportunities to connect with teens and leverage music as a passion point,” the Atlanta beverage company responded when asked why it was leaving the show.

Coca-Cola departs as Madison Avenue has noticeably cut its support of “American Idol,” a program that holds a significant place in the medium’s history but which has suffered significant ratings declines. In 2012, advertisers spent nearly $781.9 million on the show, according to Kantar, a tracker of ad spending. In 2014, they committed $394.7 million – representing a drop of 49.5% over just three seasons. Coca-Cola spent about $49.1 million on “Idol” in 2012, Kantar said. In 2014, it spent about $16.3 million. Ford Motor, another longtime “Idol” advertiser, spent $76.3 million in 2012, but $27.3 million in 2014.

AT&T, which used “Idol” for years to promote text messaging, left the show in January. Ford will return in 2015.

Quote:Coke’s departure brings to an end one of the best-known ad placement deals of modern times. When the company’s red cups were spotted on the judges’ table in 2002, it signaled a new era: TV networks, sensing the disruption to advertising caused by the rise of the digital video recorder, began to allow sponsors prominent entry in reality programming and sports broadcasts. Coca-Cola even transformed the show’s “green room,” where participants could hang out, into a “red room.”

Within five years, advertisers had gained access to dialogue in scripted dramas and comedies on dozens of networks, echoing the medium’s earliest days when sponsors actually owned programs like “Kraft Television Theatre.” Coca-Cola’s decision to appear in “Idol” was “a huge risk,” David Raines, the vice president of integrated communications for Coca-Cola North America told the Atlanta Journal-Constitution in September of 2002, “but it paid off.”

Quote:The company that negotiates Coca-Cola’s ad placements recently advised its clients to find new ways to mix their ad messages with music. MediaVest, a large media-buying firm that works for Coke and Procter & Gamble, among others, released a study in June suggesting advertisers stop linking ad messages to music and instead find ways to curate musical experiences for customers.

MediaVest spent a year interviewing more than 2000 U.S. consumers and making use of online discussion groups and ethnographic studies of 8 U.S. markets and found younger consumers thought less of music that was delivered to them in conjunction with traditional commercial message, but would view more positively any party that might offer more information about songs and artists or even deliver experiences associated with music. In 2014, Honda Motor, a MediaVest client, launched “Honda Stage,”a YouTube channel to present original content from top bands and musicians.

Quote:Ad buyers think “Idol’s” age, in combination with other factors, like a glut of similar shows that have cropped up in the show’s wake over the years, will prevent it from rebounding – unless new celebrities at the judges’ table renew its allure. “Unfortunately, we don’t expect ‘Idol’ to bounce back,” said Billie Gold, vice president and director of buying and programming research at Carat, a large ad-buying firm.

http://variety.com/2014/tv/news/coca-col...201380360/
No more Coke for you AIBig Grin
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12-17-2014, 11:17 AM,
#4
RE: Coca-Cola Ends Sponsorship Of 'American Idol'
(12-16-2014, 01:13 PM)Tom22 Wrote: Also.. wow those are big numbers for ad revenues near high water marks.

"In 2012, advertisers spent nearly $781.9 million on the show"

Nearly a billion dollars after the ratings began to slide.

"In 2014, Honda Motor, a MediaVest client, launched “Honda Stage,”a YouTube channel to present original content from top bands and musicians."

What's that get you?

http://hondastage.honda.com

https://www.youtube.com/user/HondaStage/Music
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12-17-2014, 02:45 PM,
#5
RE: Coca-Cola Ends Sponsorship Of 'American Idol'
I meant the "high water marks" of advertising revenue.. which as we saw were a trailing indicator. Not an uncommon thing in the business world for the majority of "highly educated" (lacking common sense sometimes) to jump aboard a train because of how fast it was going in the past without expecting trouble ahead (see the real estate bubble and bank practices easing qualifications even as properties sold at higher and higher ratios to replacement costs in regions where there wasn't much barrier to entry.. and at percentages of family income requiring the rosiest of scenarios to stay solvent)

The highest ratings were around season 6 I believe.. .highest revenues may have been 2012 perhaps.

As for the Honda thing.. I'd add that its not about quality for the $ but viewership for the money...viewership in their prime demographics for customers (and I believe they will pay more for first time buyers because people often stay loyal to a brand over their life times.. or semi loyal). The article also mentioned the associations of their products with hip things (that speaks to the effectiveness of the ad per Eyeball)

I think I get your main point... for less money they get big name acts instead of amateurs singing many dated songs. Whether we're fans of the format or not (and I still like the singing competitions.. but I see them as variety shows with the host and coaches/judges and guest artists being almost more important that the contestants performances) it is a cheesy sort of thing.

Cheesy is fine when it is a "fad" .... and at one point AI was a national fad... a guilty pleasure. Those things don't last at that level of mindshare but some people will stick around for other reasons.

My teens won't watch idol.. (gosh got the oldest starting college next year.. yikes).. they'll barely tolerate The Voice (they've got too much homework anyway).

They do watch all sorts of stuff on their phones though .... I think the marketing people are dead on with that.

I don't think its' about quality of Idol as a show .. even if Idol had another alum make it to mega stardom (and many are doing fine who aren't mega pop stars) I think that will be irrelevant. No matter how high quality the show might become again... it needs to feel hip to people under 30 and be on the mediums (mostly phones) where they get their entertainment from.

One thing "The Voice" has done to _partially_ (an only partially) bridge the gap is that they've had all their perfomances available on youtube or their private streaming hours after the live shows.

They've also selected contestants with cult or even large YouTube followings (christina Grimie had millions huh).

That doesn't make The Voice better at launching stars. It doesn't make The Voice have immense TV viewer ship... but I bet it does rope in the existing followers to track their favorites progress... or at least to watch their favorites performances on formats where The Voice gets part of the revenue and their advertisers get contact with people who already have a favorable connection to the singer they're about to watch.
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