Archive for the 'Schwab' Category

ThirdWay “Most Effective Advertising” Awards 2005

Tuesday, January 3rd, 2006


Today the ThirdWay Advertising Blog announces our Awards for Most Effective Advertising for 2005. These are, in our judgement, the most effective single ads or campaigns running during 2005 (regardless of when they were produced). In the selection process this year we noticed a few trends. Here are five trends in effective advertising for 2005:

  1. Few Celebrities - Only two of our top 10 picks employed celebrity spokespeople. For one of these (USA Networks) the celebrities were an integral part of the brand offering that was being advertised.
  2. Small Budgets - The Most Effective Advertising for 2005 was not the most expensive. Fully half of our picks feature people talking directly to a camera. None involved elaborate production numbers or expensive stunts. A few involved visual effects, but only those where the effect reinforced the brand.
  3. Not So Funny - Only three of our picks used humor. While we believe humor can be effective, it can distract if it doesn’t link back to the brand. Nothing is worse from the brand manager’s standpoint than a funny ad that everyone remembers selling a brand that nobody remembers.
  4. Not Just “Buzz-Worthy” - Several of our picks for 2005 generated lots of Buzz. But for these brands, the Buzz reinforced the brand positioning. Buzz without the right connection to the brand is just static on the screen to brand marketers.
  5. Old Brands Return - Four of our picks are for brands that have used these campaigns to stage a comeback in 2005. For all of these brands, the advertising campaign was central to the resurgence of the brand.
Most Effective Advertising Awards: 2005

#10 “Talk To Chuck” - Charles Schwab (click here to see the campaign)
Company : Charles Schwab
Agency: Euro RSCG
ThirdWay Ad Blog Review: click here
Rationale: Schwab receives a major overhaul with these engaging and creative print and television ads from Euro RSCG. The campaign balances visual novelty with an aggressive, consumer-oriented message that gets attention.#9 “The Art of the Heist” - Audi (click here to read a BusinessWeek description of the campaign)
Company : Volkswagen AG
Agency: McKinney & Silver
Rationale: This campaign started off with the theft of a new Audi A3 from a New York Audi dealership and evolved as Audi posted handbills seeking information about the heist at the New York International Auto Show. It wasn’t clear at first that this was advertising, and that is what is intriguing and noteworthy about Audi’s approach. Audi recognized that car sales are largely driven by the opinions of the most fervent brand followers and found a way to mobilize them with this game around the A3. The campaign was so complex that BusinessWeek reports that Audi had to staff an attorney fulltime on the game. The result was the sale of 500 A3’s in the first week of availability - a pace well beyond expectations.

#8 “The Family Farmer” - Ben & Jerry’s (click here to see the campaign)
Company : Unilever
Agency: McKinney & Silver
ThirdWay Ad Blog Review: click here
Rationale: Cause-based advertising is notoriously difficult to get right. Some brands with strong affiliations to causes get little credit for their efforts. Other brands are so heavy-handed with their self-promotion that they damage their image. Unilever and McKinney & Silver have combined efforts to make Ben & Jerry’s look and feel small again by promoting the Campaign for the Family Farmer. It is a socially and politically astute choice that leaves little room for disagreement. By focusing on the cause and using the Ben & Jerry’s name as an endorsement of the cause and to ask for support, Unilever brilliantly capitalizes on the full affiliation value of the campaign.

#7 “Characters Welcome” - USA Networks (click here to see the campaign)
Company : NBC Universal
ThirdWay Ad Blog Review: click here
Rationale: One of the great advertising challenges of 2005 was to entertain while still delivering a relevant brand message. It was surprising to see a cable network show how this could be done with witty, unique spots that created a clear brand character for the network. In fact, these spots were some of the best advertising on the network.

#6 “Alter Ego” - Motorola ROKR (click here to see the campaign)
Company : Cingular/Motorola
Agency: BBDO
ThirdWay Ad Blog Review: click here
Rationale: It seems like a tough job to explain a phone built by Motorola available from Cingular which features iTunes from Apple in a single :30 second spot. But BBDO does a marvelous job of threading the need with a visual metaphor that embodies the way that we listen to music better than most iPod commercials.

#5 “How We Earn It” - Smith Barney (click here)
Company : Citigroup
Agency: Merkley + Partners
ThirdWay Ad Blog Review: click here
Rationale: Newly freed from Salomon, Smith Barney reaches to the past for inspiration in this fresh, hard-hitting campaign. Taking a similar tone to both the legendary John Houseman spots and Charles Schwab’s overhauled campaign, these spots feature aging people in idyllic situations who interrupt the storybook to explain the dirty business of actually making enough money to retire. Merkley does a fine job of building on the long-dormant brand equity of Smith Barney.

#4 “Employee Discount For Everyone” - General Motors (click here)
Company : General Motors
Agency: McCann Erickson
ThirdWay Ad Blog Review: click here
Rationale: Of all of the advertising campaigns of 2005, none drove more sales than General Motors’ Employee Discount For Everyone. Of course, announcing a huge discount on your products is always a good way to get attention. But, as this advertising blog argued in July, General Motors went one step further with this promotion. The employee discount for everyone not only lowered the price for everyone, it gave everyone the same price. This helped women and African Americans who traditionally pay more on negotiated car prices. This simple commercial represented an important step forward to a tradition-bound industry.

#3 “I Can’t Believe I Ate That Whole Thing” - Alka-Seltzer (click here)
Company : Bayer
Agency: BBDO
ThirdWay Ad Blog Review: click here
Rationale: One of the most successfully advertised brands of all time returns to fighting form courtesy of BBDO, with the help of Peter Boyle and Doris Robert from “Everybody Loves Raymond.” This simple spot features an unhappy Boyle repeating the slightly updated signature line for Alka-Seltzer “I can’t believe I ate that whole thing.” The spot draws on our historical affinity for Alka-Seltzer advertising to bring us back to the brand - a neat trick which BBDO manages splendidly.

#2 “New Yorker Issue” - Target
Company : Bayer
Agency:
ThirdWay Ad Blog Review: click here
Rationale: 2005 may be remembered as the year when Target launched “Design for All” and sought to bring value and design together for ordinary people. The most extraordinary step in this long process was their capture of an entire issue of the New Yorker magazine. Rather than run conventional advertising, Target commissioned new artwork which had the red bullseye as a common them. As we discussed here, we think Target is up to big things in the future and the breakout in 2005 is only the beginning.

#1 “Dance Party” - Nextel (click here - the link is to AdForum, a pay site)
Company : Sprint
Agency: TBWA/Chiat/Day New York
ThirdWay Ad Blog Review:
Rationale: The best spot that ran in 2005 was actually launched late in 2004 by Sprint (the corporate parent of Nextel and TBWA/Chiat/Day). This is a breezy little spot that in 30 short seconds finally explains why you should care about Nextel if you are a business. Three distinctly uncool-looking white men gyrate to tunes in an office. The boss walks in and asks angrily about three important things. Using Nextel walky-talky phones, the GPS function and messaging service the three men find the answers and cheekily return to dancing. By repositioning the end benefit of the phone network to “More time for stuff you really want to do,” Nextel successfully shows why those squawky little phones are worth having. And amazingly, this spot becomes funnier and more memorable each time it is viewed - without losing the brand in the process.

Those are are picks for ad campaigns running in 2005. Here are a few caveats about our selections:

  1. Our Vision is Limited - We only cover what we see, hear and read and what you, dear readers send us. We spent most of 2005 focusing on television advertising because it is still the lingua franca for advertising. We plan to extend our coverage of other media in the new year, but we acknowledge that other media are underrecognized in our awards.
  2. Our Perspective is Different - from consumers and media commentators. We focus on just three criteria in choosing effective advertising:
    1. Did it Capture Our Attention? Even the best strategy fails if nobody is watching.
    2. Did it Position the Brand? Great advertising must reinforce the brand positioning that exists in the mind of the consumer
    3. Did it Build the Brand? We really want to know if these spots added to the equity of the brand both directly (increasing revenue) and indirectly (increasing the brand premium over competition)

  3. Our Information is Limited - We don’t have inside access to financial data that might support or contradict our picks for effective advertising. Our picks are based on publicly available data and our experience as brand managers and trainers.

Schwab Goes Grunge

Monday, December 12th, 2005

Brand: Charles Schwab
Execution: TV
Link: Click Here - Watch the four :30 second TV ads on the right
Target: The Average Schlub buying stocks
Rating: ****
Reviewer: David

Description:
This campaign features animated spots. In the first spot of the campaign, called ‘Broker’s Kids,’ a middle age man stares into a camera and talks about his relationship with his broker. “So I was talking with my broker the other day. The usual small talk, you know - how’s the kids, how’s the family?” Then the man becomes more serious, his animated, craggy face hardening, “And then it dawned on me - You think about all those years that I payed those big commissions on everything we bought and sold. Were we really discussing my kid’s future or his kid’s future? Then we see the line “Make sure your money’s working hard. For YOU,” followed by the tagline “Talk to Chuck” and the Schwab logo.

The three other ads in this campaign follow similar lines. They all feature average men talking directly to the camera about their anger with the system and how it takes advantage of the little guy.

What Works:
This campaign features ads that might slip unnoticed through the collective consciousness of consumers and advertising blogs alike except for two startling choices. First, instead of showing an actual consumer, this spot uses cartoons. Well, not cartoons exactly. These spots are shot on film and then colored over using a technology from MIT Media Labs veteran Bob Sabiston. This tracing technology was featured in the movie ‘Waking Life’ and lends a visually distinctive edge to these spots that helps attract our attention.

The second surprising choice is the new slogan, “Talk to Chuck.” Charles Schwab has suddenly become ‘Chuck,’ somehow pulling a Mr. Rogers on us by putting on the loafers and the blue sweater. It is a signal that Schwab has reappraised the customer and the market and come to some striking conclusions about the state of the average consumer.

It is not unusual for single spokeperson spots to feature an angry, dissatisfied consumer. Combined with the unusual visual style of these commercials and the slightly cheeky music and “Talk to Chuck,” it adds up to something memorable.

So what is Schwab doing here? They’re doing what good advertisers do - acknowledging a universal truth that is much felt but little expressed in advertising today - that the little guy gets screwed by Wall Street. We believe that Schwab has made a good read of the prevailing winds in our culture. This advertising blog cannot pick up a newspaper without reading how Harvard’s fund managers can’t recruit good help for under a few million a year, how CEO’s get cushy insider IPO shares or how hedge funds rake in the dough for fatcat investors.

So in order to reestablish its preeminent position as the discount broker, Schwab reminds us why we hate those traditional brokers.

It is a clever strategy. It conveniently ignores web-based Internet brokers like Ameritrade (or dismisses them saying that they give you a great trading price if you “make like a gazillion trades a year”) and focuses on the greater evil of traditional brokers. Schwab already has lots of brand equity as the giant killer among these stalwarts so this campaign effectively reinforces the long-standing positioning that did so much for Schwab early on.

Schwab’s strategy meets our three tests for brand positioning - it is ownable (because Schwab invented the discount brokerage and has consistenly been identified with the concept), it is unique (primarily the execution) and it is consistent (carrying on a long running them for the broker in much plainer terms).

What Doesn’t:
Two bad things can happen when you use a visual device to attract attention to your spot. Either you can distract consumers and fail to get your message across, or you can be so successful that everyone copies you and suddenly your breakthrough ad is lost in the clutter again.

We think Schwab has a bigger message here and that message helps balance the execution of this spot with branding that will stick. Ideally, Schwab could transition smoothly to another executional style without confusing consumers if the “Waking Life” traced style used here becomes too common. Still, it represents a risk, albeit one that Schwab was wise to take.

This advertising blog admits to have been secretly horrified when we first saw the “Talk to Chuck” tagline. Chuck Schwab?? Isn’t this just one more example of the vulgarization of the language and the dumbing-down of the culture, we asked? Almost as bad as hearing creepy name-droppers casual-izing celebrities: “Yeah, I know Bobby DeNiro and he is a great guy.” Upon reflection, however, we understand why Schwab believes that the hero of the middle-class little guy can hardly be called “Charles.”

Branding Bottom Line:
We’re on a first-name basis with Schwab and we like him.