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|Monday AM March 5th, 2007 | | |

|Monday, March 5, 2007 | | |

|By: Ed Mayberry | | |

|Product placement replaces traditional advertising concepts, as companies like HP embrace new | | |

|media...Index ranks Texas 14th in effectiveness at adapting to new global economy...Magazine ranks | | |

|Texas second for ability to secure corporate facilities... | | |

|The last few years have presented challenges for media buyers, with the introduction of YouTube, | | |

|MySpace, iPods and TiVo. Scott Berg, worldwide media director for Hewlett-Packard in Houston, says | | |

|user-generated content has become a significant portion of the media mix. That includes | | |

|time-shifting and the ability to skip past commercials. | | |

|[pic]”And I don’t think there’s an advertiser out there, frankly, that isn’t concerned about it, | | |

|and it’s a debate that goes on every single day. And so what we’ve done is we’ve increased the | | |

|amount of product placement that we do on television, number one, so our products are integrated | | |

|into the actual shows itself. And if you take a look at shows such as ‘House’ shows such as ‘The | | |

|Office’ et cetera, you’re gonna see a lot of HP products there. And what we’re trying to do is | | |

|we’re trying to show that those products can be utilized within a business environment. The other | | |

|thing that we’ve done is, it’s up the ante as it relates to creative. The good thing is that if | | |

|people like to rewind your spot and watch it over again, you’re reinforcing that message on a | | |

|consistent basis. An interesting statistic, though—87 percent of all commercials are skipped by DVR| | |

|users.” | | |

|Berg says HP initiates product placement through the networks. | | |

|[pic]”And you pay a fee to actually engage with that particular product. Now, the thing that we try| | |

|not to do is we don’t want to have logos. What we want to do is we want to actually show the | | |

|product in use to the consumer. We don’t think that it provides enough value—it’s a very quick | | |

|shot, it’s maybe one to two seconds—and just having the logo there doesn’t really explain the | | |

|product itself and what the product can do. So what we’ve chosen to do is we’ve been much more | | |

|focused on putting our products within the actual scenes themselves and in the actual storyline | | |

|context, so that you actually see people utilizing the product or you see unique aspects of the | | |

|product, that they’re utilizing it. ‘24’ is a great example, where we have our products with the | | |

|main character and he gets to use our iPac product and is interfacing with that and our printing | | |

|products and scanning technology, et cetera. That’s a much more powerful message to people than | | |

|just having a logo up on the screen.” | | |

|When traditional commercials are utilized on television, it’s in places where people pay more | | |

|attention—the Grammys, the Oscars or the Super Bowl. | | |

|[pic] | | |

|Texas ranks 14th among states in terms of effectiveness at adapting to a new global economy, | | |

|according to the Houston Business Journal. The 2007 State New Economy Index from the Ewing Marion | | |

|Kaufmann Foundation and the Information Technology and Innovation Foundation looks at how the | | |

|states have transitioned their economies from “how many companies can be lured” to focusing on the | | |

|creation of retention of high-value, high-wage jobs. Massachusetts placed first on the list. Texas | | |

|placed third in the globalization category and sixth in the number and value of initial public | | |

|offerings. But Texas is 43rd in the number of Internet users as a share of the total population. | | |

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