Kudos Coca-Cola, the Coke-Pepsi challenge continues online

Kudos go out to Coca Cola, thought a bit late….

When we looked at the TSN’s recent numbers for “top media buyers” in December 2007, we were….well I don’t know the word…happy….yes, we were happy to see the “MyCokeRewards” campaign coming in at a strong #33.

Now, everyone who looks at this data http://www.clickz.com/showPage.html?page=3628559 knows that knows that it is absolutely inaccurate. I won’t go into details, but I’ll refer you to a colleagues blog here: http://www.blogation.net/2008/01/there-are-lies-damn-lies-and-online.html

If you didn’t know this, then you should not go to an ad exchange, you should go back to Display Marketing 101. Terrible joke.

While this data is widely skewed, there are two reasons we use it:

1) It is directionally accurate

and

2) It skews heavily towards those advertising on Yahoo.

(If you didn’t know that, go back to Display Marketing 201.)

So while the representative spends are inaccurate (the top company NexTag could not have spent $17M in online display marketing….assuming this is 50% of their spending and they are doing 30% margin, this would assume they do $612M in online revenue for 2007 and given that they were purchased last year for 1.25 billion…there is no way they merely sold for 2x 2007 revenue…but we digress)….back to our point.

So while the representative spends are inaccurate, they are directionally accurate *and* if you are purchasing on Yahoo you probably are managing your spend. And lo and behold, Coca Cola (or their agency or someone spending on behalf of their agency) was #33.

We’ll repeat a CPG company running a performance marketing campaigning (a user gains Coke rewards) was spending on metrics on Yahoo Mail.

Congratuations, we are getting somewhere!

And to show that they were: a) paying attention and b) understanding the product, our other favorite beverage Pepsi, came out with a similar product (backended by Amazon) in Q4 of last year.

CPG companies, spending on some metrics, what’s next?

– Yahoo opening up Search (wait, that just happened)

– Google valuing page load time in terms of scoring (wait, that just happened) (…and let me get this one straight using an offline analogy…”I” advertise for “The Best Knicks tickets at the Cheapest Prices on the planet” and my store arguably has the absolute best pricing. I have the best prices by 10%. My store is located a block away although sometimes there is a line outside the door and I have to wait. But I am willing to wait…because they are the best tickets…..I think you get where we’re headed)

– The Knicks fire Isiah Thomas….(not yet, but we can wish)

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1 comment so far

  1. Matt Hanson on

    Good writing. Keep up the good work. I just added your RSS feed my Google News Reader..

    Matt Hanson


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