Thursday, July 11, 2013 | Edited by Daniel Moores
||Sprint, T-Mobile to Spend Big in Pursuit of Verizon, AT&T
Nos. 3 And 4 Wireless Carriers Are Expected to Boost Ad Spending to Gain Share. But Customers Resist Switching.
U.S. wireless customers are proving to be a stubborn bunch when it comes to changing providers. But that's not stopping carriers from pumping big bucks into advertising in hopes of grabbing market share.
Wireless is one of the country's big-spending ad categories -- carriers collectively dropped $5.3 billion on measured media last year, according to Kantar Media.
Analysts expect T-Mobile and Sprint to increase ad spending to persuade consumers to switch from the long-time industry leaders. T-Mobile has adopted a combative message under CEO John Legere, aggressively advertising itself against AT&T specifically. Sprint Nextel shareholders recently approved an acquisition offer from Japan-based mobile provider SoftBank, giving it the deep pockets needed to contend with AT&T and Verizon.
Buying market share isn't a surefire strategy. Last year, the top four wireless providers by share -- Verizon, AT&T, Sprint and T-Mobile US, in that order -- changed their respective measured-media spends by hundreds of millions of dollars but saw little change in terms of their pieces of the market.
Verizon decreased its measured-media spend 10.7% to $1.19 billion last year from $1.34 billion in 2011. Still, it retained its position as the No. 1 U.S. wireless provider as market share fell slightly to 31.2% from 31.6%, according to ComScore.
During that time AT&T's measured-media spend dropped 13.3% to $1.25 billion from $1.44 billion, but its market share rose a full percentage point to 27.3%.
Sprint's market share was essentially flat at 15.7%, even as spending dropped 8.6%. T-Mobile upped measured spending 39.5% only to see its market share decrease to 11.6% from 12.7%.
"The wireless market is saturated, so the advertising spending and the underlying market shares are related to churn," Forrester analyst Charles Golvin said. "The marketing is really about switching."
A big piece of Sprint and T-Mobile's marketing will be their unlimited-data offerings. AT&T and Verizon don't offer unlimited data plans to new customers, and Verizon customers can't get a subsidized upgrade to a new phone without surrendering their unlimited plan.
Sprint may look to undercut competitors' prices after the SoftBank deal is completed. When SoftBank bought Vodafone Japan, it reduced monthly charges to about a quarter of what its competitors charged.
But IDC analyst Carrie MacGillivray said marketing messages in the coming years will focus on network speed rather than data or pricing.
"Pricing plans aside, we invest in and build the best network and we have that message in our advertising," said Brian Angiolet, Verizon's VP-advertising.
Similarly, AT&T Chief Marketing Officer David Christopher said in a statement that it is committed to "building the nation's fastest 4G LTE network."
(Source: Advertising Age, 07/09/13)
||Halftime Report: Highlights of U.S. Auto Sales Through June
Six straight up years? After June's buoyant auto sales, it seems that 2013 will finish on the plus side, the fourth growth year in a row. And many analysts also expect increases through at least 2015.
TrueCar just raised its outlook to 16.5 million in 2014 and 17.2 million in 2015.
Long strings of U.S. sales growth are rare. The industry eked out a five-year string, 1996 through 2000, but to top a six-year streak we have to go back a century: 1909 to 1917.
Races at the Halfway Mark
Top brands by unit sales
1. Ford -- 1,251,448
2. Chevrolet -- 1,015,134
Top automakers by unit sales
1. General Motors -- 1,420,346
2. Ford Motor -- 1,289,736
Top brands by % gain
1. Cadillac -- 33%
2. Porsche -- 30%
Top automakers by % gain
1. Subaru -- 25%
2. Ford Motor -- 13%
1. Toyota Camry -- 207,626
2. Honda Accord -- 186,860
Growth brand shootout
Volkswagen -- 206,792
Subaru -- 204,597
(Subaru cut lead in half in June)
Top luxury brand: After 6 months, Mercedes-Benz leads BMW by 1,519 units. BMW won in 2011 and 2012.
Truck-only brands: Jeep leads GMC, 229,405 to 220,696. Can GMC catch Jeep before Cherokee arrives?
• The Detroit 3 each individually gained market share in the first half, the first time in the first 6 months of the year since 1993.
• Sales of light vehicles made in North America hit 80.2 percent, the first time since 2005 that they were 80 percent or more. The percentage has risen steadily since 2009 showing the shift of Asian and European brands' production to North America.
Numbers (through June)
16 million: June SAAR
16: Number of units by which Chevy Volt leads Nissan Leaf
10: Brands with falling sales (excludes Suzuki)
67: Number of months since SAAR was higher than June's
14: Number of brands with double-digit gains in the first 6 months
31: Unit lead of Toyota RAV4 over Ford Explorer, 101,274 to 101,243
124,900: Ford F series lead over No. 2 Chevrolet Silverado
15,564,111: 2013 sales if first half total hits 10-year average of 50.25% of full year
(Source: Automotive News, 07/08/13)
||2013 Radio Show to Feature Super Session on Radio and the Connected Car
Organizers of the Radio Show, jointly produced by the Radio Advertising Bureau and the National Association of Broadcasters, will present a Super Session entitled "Radio and the Connected Car." The session will take place on Thursday, September 19 at 9:15 a.m. at the Radio Show in Orlando.
Leading strategists, analysts and researchers will discuss developments in the connected car, what consumers want and where the technology is headed. This session will reveal data from surveys, focus groups and consumer clinics along with sneak peeks at what car makers and their suppliers have in store for the dashboard of the future. Participants will offfer specific recommendations on what radio can do now to maintain its prominence in the automobile for years to come.
The Super Session will feature research and insight from experts in both connected car technology and the radio industry, including presentations by Roger C. Lanctot, associate director, Global Automotive Practice at Strategy Analytics; and Fred Jacobs, president of Jacobs Media. Bill Rose, senior vice president, Marketing at Arbitron, will provide introductory remarks.
Roger Lanctot's expertise includes defining future trends in automotive safety, powertrain and infotainment systems. He has 25 years experience as an analyst, journalist and consultant. At Strategy Analytics, he specializes in tracking, analyzing and forecasting in-car infotainment systems and in-vehicle connectivity.
Fred Jacobs is a top radio consultant specializing in helping radio stations maximize their audience by optimizing marketing, branding and content across all platforms including on-air, social media and mobile. Jacobs' company, Jacobs Media, is a leading mobile application developer through its jacAPPS division, which has created more than 800 apps. Earlier this year, jacAPPS was selected by The Ford Motor Company as House Developer to help researchers configure their apps to adapt to vehicles equipped with the SYNC AppLink system.
Bill Rose heads U.S. marketing efforts for Arbitron, a leading media and marketing research firm serving broadcast and online radio, broadcast and cable television, advertisers and advertising agencies. Rose leads marketing related to Portable People Meter (PPM) electronic and diary-based audience measurement services. "Radio and the Connected Car" is underwritten by and developed in coordination with Arbitron.
About the Radio Show
The 2013 Radio Show will be held September 18-20 in Orlando. This year's show brings radio broadcasters and industry colleagues together to share knowledge, discover the latest innovations, network with industry leaders and explore creative business strategies for the digital age. To learn more about the 2013 Radio Show, visit www.radioshowweb.com.
Daily Sales Tip: Avoiding the Stall
While salespeople like to blame the buyer for stalls, they are usually the result of an incomplete sales job. A stall means you haven't hit the right emotional hot button, and it's your job to find it.
Translate a stall as a request for more information rather than something negative. A stall is nothing more than a hiccup in the relationship if you handle it right and don't overreact.
Source: Adapted from Contagious Selling, by David Rich