Under the Influence with Terry O'Reilly - S3E25 - Dear Terry 2014

Episode Date: June 22, 2014

Well, this is the final episode of Under The Influence for the 2014 season. As as we do every year, we turn this show over to our listeners. Terry answers all the marketing and advertising questions listeners have sent in, and this year, the questions are better than ever. Terry will trace the history of how Kool-Aid/Lemon-Aid stands came to be, he’ll give a first-hand report on how the very last swan-song Eaton’s campaign was developed, he’ll discuss why #1 brands still feel compelled to advertise, he’ll explore why Cadillac owners don’t like vanilla ice-cream, why advertisers love using babies and small critters in their ads, what the rules are when it comes to the amount of advertising allowed every hour - and more. Hosted on Acast. See acast.com/privacy for more information.

Hi, it's Terry O'Reilly. As you may know, we've been producing a lot of bonus episodes while under the influences on hiatus. They're called the Beatleology Interviews, where I talk to people who knew the Beatles, work with them, love them, and the authors who write about them. Well, the Beatleology Interviews have become a hit, so we are spinning it out to be a standalone podcast series. You've already heard conversations with people like actors Mark Hamill, Malcolm McDowell, and Beatles confidant Astrid Kershaw. But coming up, I talk to May Pang, who dated John Lennon in the mid-70s. I talk to double fantasy guitarist Earl Slick, Apple Records creative director John Kosh. I'll be talking to Jan Hayworth,

who designed the Sgt. Pepper album cover. Very cool. And I'll talk to singer Dion, who is one of only five people still alive who were on the Sgt. Pepper cover. And two of those people were Beatles. The stories they tell are amazing. So thank you for making this series such a success. And please do me a favor, follow the Beatleology interviews on your podcast app. You don't even have to be a huge Beatles fan. You just have to love storytelling. Subscribe now and don't miss a single beat. new year new me season is here and honestly we're already over it enter felix the health care company helping canadians take a different approach to weight loss this year weight loss is more than just diet and exercise it can be about tackling genetics hormones metabolism felix

gets it they connect you with licensed healthcare practitioners online who'll create a personalized treatment plan that pairs your healthy lifestyle with a little help and a little extra support. Start your visit today at felix.ca. That's F-E-L-I-X.ca. From the Under the Influence digital box set, this episode is from Season 3, 2014. Your teeth look whiter than no, no, no You're not you when you're hungry You're in good hands with us You're under the influence with Terry O'Reilly. The New York Mineralogical Club was formed in Manhattan back in September of 1886.

At the end of its first year, it had 46 members, including several notable geologists. The club has amassed a superb collection of more than 700 specimens of minerals that had been found in New York over the years, which is now housed at the American Museum of Natural History. One of their most noteworthy pieces was discovered as a sewer was being dug on West 57th Street between Broadway and 7th Avenue in 1885. One day, the laborer doing the digging noticed an interesting rock in the dirt pile. It was a dark red precious stone that weighed 9 pounds 10 ounces. It turned out to be the finest garnet crystal ever found in the United States. The New York Mineralogical Club was dedicated to increasing interest in the science of mineralogy

through collecting, describing, and displaying of minerals and associated gemstones. Members would meet a couple of times a month. As such, they would invite various experts to speak at their meetings. In 1916, the club started receiving fascinating

correspondence from a person named Robert Oppenheimer. He would detail the rock formations he discovered in Central Park, make detailed and insightful notes, and would pass those findings along to the club in his letters. The members were so impressed with these letters that they invited the author to give a lecture at their next meeting. When Robert Oppenheimer walked out onto the stage

on the designated evening, the audience of geologists was stunned. Robert Oppenheimer was only 12 years old. He had arrived with his parents in tow, and a wooden box was brought out for little Robbie Oppenheimer to stand on so he could be seen over the lectern. Nobody had ever thought to ask his age. Some questions in life are obvious, and some aren't.

Little Robbie Oppenheimer would eventually grow up to become the famous scientist J. Robert Oppenheimer, father of the A-bomb. Questions are a fascinating part of life, and asking them can lead to astounding discoveries. The answers they provoke can open doors, shed light on mysteries, and sometimes even reveal the obvious, like someone's age. Welcome to our annual Dear Terry episode. This is the show we hand over to our wonderful listeners.

We asked you to send in your advertising and marketing questions, which you did, and I'll do my utmost today to answer them. I can't promise to be as smart as 12-year-old Mr. Oppenheimer, and I might need a wooden box to stand on in front of my microphone, but I'm hoping I might be able to throw out a few gems along the way. You're under the influence. Well, folks, this is our last episode of the 2014 season. And we'd like to thank all the Under the Influence listeners who sent in questions.

It was, by far, the biggest response we've ever received. Some questions I could answer, some I had to research, and with a few I had to reach out to my advertising colleagues for help. Some of you even gave me great suggestions for entire episodes, which I'll work on for next season, so stay tuned. Let's begin today with an interesting question sent in via Twitter. It's from Sonia Christensen, and she asks, Why advertise a product that's a solid market leader with little competition like Heinz ketchup for example good question Sonia

a few weeks ago I mentioned that Heinz had been the market leader in the ketchup category for over 100 years every product category is extremely competitive when you're number two or three, you're constantly marketing to dethrone number one. Or, if you're a small player in a category of big brands, you produce feisty, bold advertising just to get noticed. But number one brands are in a perpetual defense mode. They have to constantly market their brand to maintain market share or even steal a little from competitors.

If Heinz Ketchup has, say, 10 competitors, what would happen if each brand stole just 1% market share? Heinz would collectively lose 10% of its customers. In the marketing world, that would translate into a huge revenue loss. Their number 2, 3, and 4 brands are like forwards on a hockey team, always trying to score. Number one brands are goalies. That's why they can never stop advertising.

To me, marketing is like a locomotive. You can unhook the locomotive, and the rest of the train will keep going for a while due to momentum, but eventually that train is going to grind to a halt. And no brand wants that. Here's another Twitter question. Chris Brasher, who sent in several excellent questions, asked, Did kids invent the lemonade Kool-Aid stand, or was that a marketing gimmick?

Excellent question, Chris, and you know how much I love advertising history. Kool-Aid stands were a variation of lemonade stands. Around 1873, a 10-year-old boy by the name of Edward Bach started selling ice water for a penny to passengers of horse-drawn carts in Brooklyn, New York. When other kids started to do the same, little Eddie did what all smart marketers do. He zigged when everyone else zagged. So, he started selling lemonade for three cents a glass. That started the lemonade stand craze.

Kool-Aid was created in the 1920s by an inventor named Edwin Perkins. At 10 cents a pack, it allowed families to make big pitchers full on hot afternoons. And it was then, in the 20s, that kids got the idea to set up Kool-Aid stands in front of their parents' houses. When the Depression hit in the 30s, Perkins decided to cut the price of Kool-Aid from 10 cents to 5 cents a pack. Sales actually increased. It seemed that even in the Depression, everyone still had a nickel to spend for a sweet, cool treat. As Advertising Age magazine said, that price cut was a daring gamble that made the company. And kids continue to put up Kool-Aid stands to this day.

Remember this? Kool-Aid, Kool-Aid, tastes great. You love Kool-Aid, don't wait. By the way, I saw some news articles lately saying that some American cities were clamping down on lemonade and Kool-Aid stands, insisting that parents pay $400 for a street vendor's permit. Yikes. So there you have it, Chris.

It seems Kool-Aid stands were not a marketing gimmick, but were in fact started by Kool-Aid's customers. However, you can bet on one thing. Kool-Aid loved it. Next question. Under the influence listener Jim Hogg tweeted this. Why don't Cadillac owners like vanilla ice cream? Hmm. Very

interesting. Why don't Cadillac owners like vanilla ice cream? Let's consult the Under the Influence XTH5 supercomputer database. Jim, I assume you're referring to this Cadillac commercial.

Vanilla. Yeah? Good old, crowd-pleasing vanilla. Some people can't get enough. But if you're in the mood for something tasty... Then test drive one of these. Vanilla may be the most popular ice cream flavor in North America, but vanilla is also the universal word for plain, boring, and average.

And Cadillac sees its drivers as colorful, exciting, and unique. So, vanilla ice cream was a shorthand way of making the point. Over to our emails now. Listener Rita Gore emailed an interesting question. How do marketers effectively market to people with disabilities, like the visually impaired and the deaf? Great question, Rita, and I'd actually like to dedicate an entire episode to it. As you may know, almost all TV commercials use closed captioning for the hearing impaired, and that function can be turned on with your remote control.

For the visually impaired, programming and commercials are broadcast with described video. Back in 2009, TAC TV was launched in Canada. TAC stood for The Accessible Channel and it was the first to offer described video and closed captions 24 hours a day. The CRTC designated it a must-carry service,

meaning all cable companies had to make it available. I directed some launch commercials for TAC. The idea was interesting. Get Canadian celebrities to describe themselves and see if people could guess who they were. If all you know is my voice, allow me to describe myself.

My head is shaved right down to the scalp. And today, much like every day, I have a three-day or four-day beard going. I have a scar on my nose that I got when I was a rather naughty boy and got into a fistfight. Yes, I'm Carlo Rota, and on TAC, television includes the vision impaired. That was Carlo Rota, one of the stars from Little Mosque on the Prairie, as well as Breaking Bad and 24. We also had Peter Mansbridge and George Strombolopoulos in the campaign, too. Tack has since been renamed AMI-tv. So, Rita, that's just a quick overview.

Hoping to do a complete episode on this intriguing subject next season. Thanks for that great suggestion. Over to John Gunter now who emailed this question. What's the story behind the Eaton's aubergine campaign? What were the decisions made as Eaton seemed to bet the farm

on this commercial? Well, I can fill you in on that story, John, because our company wrote the music for that commercial. If you remember, the year was 2000 and Sears had just bought Eaton's. No one could believe the mighty Eaton's had fallen so far

that they could be swallowed up by arch enemy Sears. But at that moment in time, Sears had a vision for Eaton's. There was a hole in the Canadian retail sector, and that gap was for a more upscale department store. They felt they could turn Eaton's into that experience. Sears had a great marketing department, and they wanted a highly unusual advertising campaign to announce that Eaton's was going upscale. Purple is an upscale color. The Eaton's logo was purple, so aubergine, which means purple, was chosen as the theme. The brief to the advertising agency was to create a revolution, not an evolution. They wanted the advertising to return to the glory days of department stores, so the agency came up with the idea of returning to the glory days of Hollywood musicals.

Copywriter Tom Gowdy wrote the lyrics, our wonderful composers at Pirate wrote the music, and a four-and-a-half-minute advertising extravaganza was created and aired during a movie premiere where Eaton's was the only advertiser. If blue's been done and brown's a bore and pastels have you wanting more, there's something new you've never seen. The future's painted aubergine. Aubert what? Aubergine?

Au-ber-gine. For all the things a lady needs From shoes to hats and in between For young, for old, for hip, for square Try Aubergine to add some flair The commercial definitely got attention. Advertising awareness for Eaton's surpassed Walmart, Kmart and the Bay.

Impressive, considering Eaton's had long been absent from the advertising scene. 24% of those surveyed said the commercial would definitely encourage them to visit the store, and a score of 20% is considered excellent. 81% of the people surveyed knew aubergine was linked to Eaton's, which was extraordinary. So much to do, so much in store, the new was and you wasn't born. But with all that good news,

there was still one big problem. The store experience didn't change enough to match the big promise. Sears couldn't make the Eaton's transition fast enough to keep customers happy. They simply couldn't execute their vision. Not long after,

the greatest department store in Canada closed its doors. It's a sad story, really. But the music was good. You got that right Step inside, see what we see Behind the color of energy And we'll be right back. you. We know how life goes. New father, new routines, new locations. What matters is that you have something there to adapt with you

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and an official sports betting partner of the National Hockey League. BetMGM.com for terms and conditions. Must be 19 years of age or older to wager. Ontario only. Please play responsibly. If you have any questions or concerns about your gambling or someone close to you, please contact Connex Ontario at 1-866-531-2600 to speak to an advisor free of charge. BetMGM operates pursuant to an operating agreement with iGaming Ontario. If you're enjoying this episode, why not dip into our archives, available wherever you download your pods. Go to terryoreilly.ca for a master episode list. Okay, let's go on to our next listener.

Kelly McGinnis has an amusing question. She asks, When I tell people I work in advertising, what is the appropriate response for the obligatory, oh, so like Mad Men, question? Well, I would say it's exactly like Mad Men, except they underplay the drinking.

Kidding. You're a kidder. I'm a kidder. I get asked that question all the time too, Kelly. I tell people Mad Men is pretty accurate when it comes to the advertising. And the drinking, smoking, and running around is probably accurate too, for the 1960s that is. Kate Bergen asks if Mad Men is over because the writers and cast are done or has the era ended? Well, from what I've read,

Kate, Mad Men creator Matthew Weiner has always said the series would end when the 60s ends. And, if you're watching this final season, it's now set in 1969. Joanna on Twitter asked,

How good are Don Draper and company's pitches on Mad Men? Are they conceivable ads or just good dramatically? I think Don Draper is an excellent presenter. He knows how to command a room, and the writing staff at Mad Men has done their homework. However, I find most of the ads Don Draper presents are pretty conservative. Remember, Sterling Cooper is a conservative agency in the midst of a 1960s advertising creative revolution.

As Matthew Weiner has said, quote, everyone on Mad Men is on the wrong side of history. Our friend Heather Greenis asks this question. Companies use babies, kids, and critters to market their brands. Why is this? Nothing gets more attention on TV than babies, kids, and critters. Ask any actor who's ever had to share a scene with a baby or a cute puppy. Attention is the oxygen of all brands, and babies, kids, and critters are a surefire way to get that attention.

Thanks, Heather. Mike Gange asks a very interesting question. The Toronto Maple Leafs are the highest revenue team in the NHL. Would this change much if they won? Wow, that's a great question. You're not 12, are you, Mike? Anyway, it does go against all the conventional thinking in marketing. A winner usually generates the most interest, the most ardent fans, the most revenue.

Yet, the Leafs haven't won a cup since... The Mesozoic era? Exactly. As John Cleese once said, it's not the defeat that crushes you, it's the hope. So, I guess the marketing lesson here is, hope is very profitable. Wayne Jones asks this question on our Facebook page.

What is the current ratio of program time to advertisements and is that amount established independently? In Canada, the CRTC regulates and supervises the airwaves. Generally speaking, specialty TV channels can have 12 minutes of commercials per hour. And surprisingly, there are no limits on conventional TV networks like CTV or Global. The length of the programs dictate what's left for commercials. Most half-hour programs are 22 minutes long, allowing for 8 minutes of commercials. Hour-long shows run around 48 minutes,

allowing for about 12 minutes of ads. Interestingly, there are no limits to the amount of advertising allowed on Canadian radio. But if stations went too far with commercial content, they would just lose all their listeners. The CRTC limits CBC Radio 2, on the other hand, to a maximum of 4 minutes of advertising per hour. In the United States, the FCC governs the airwaves. Like here, there are no commercial limits on television.

The length of programs determine what's left for ads each hour. And, like Canada, there are no limits on commercial radio. Most foreign countries I looked at seem to allow an average of 12 minutes of commercials per hour. Some exceptions include Russia, which allows 4 minutes of national advertising and 15 minutes of local advertising for a total of 19 minutes per hour.

In Australia, viewers can see up to, and sometimes more than, 20 minutes of commercials per hour. During some 60-minute shows, viewers might only see 40 minutes of actual programming, making Australia one of the highest commercial content countries in the world. You know my viewpoint on this subject. Too much advertising is not a good thing. And I'm an ad man. Let's jump back to Twitter, where Ian Boyle asks,

What's the deal with the brand sound at the end of commercials, like Nissan, the Government of Canada, and Rogers? You mean this sound? That's called an audio mnemonic. The Government of Canada uses a snippet of O Canada. It's an earworm created to help aid brand recall. So if you just caught the last two seconds of a Rogers ad, you would still know it's a Rogers ad. It's also a branding device that can carry over to radio,

their website, and to prompts on your smartphone. In other words, it's sonic branding. Max Hurst tweeted to ask a question about our website. He says, Was thrilled to discover all the visuals you talk about in each episode are on your website. Have you always had this? Thanks, Max. We began creating a rich website three years ago.

And if you've never been to our website at cbc.ca slash under the influence, you should know that you can follow along with every episode, with the full script, and all the TV commercials, print ads, and interesting photos of the people we talk about. And you can do it simultaneously

as you listen to the show. Plus, there's bonus material there too. So log on for a great second screen experience every week. As I mentioned earlier, some listeners asked questions that I want to turn into full episodes. Ed Lynn asked,

what are some of the best agency-client relationships of all time? A great question. The answers will probably surprise you. And that will be an episode next season. David Edwards and Ian Fletcher both asked about tips for business to business advertising. Stay tuned. That too will be an episode next season. We're almost out of time.

Okay. One last question from Damien who asks, What has been your favorite show topic to research? Without a doubt, Damien, it was the two-part Happy Homemaker episode, where we traced how the advertising industry created the modern-day housewife in order to sell the multitudes of household products created after the war. Fascinating, historical, and a little alarming too. That's why nearly 80% of the goods and services advertised today

are aimed at the women in our lives. They are the chief financial officers of the family. No question about it. New year, new me. Season is here and honestly, we're already over it. Enter Felix, the healthcare company helping Canadians take a different approach to weight loss this year. Weight loss is more than just diet and exercise. It can be about tackling genetics, hormones, metabolism. Felix gets it. They connect you with licensed healthcare practitioners online who'll create a personalized treatment plan that pairs your healthy lifestyle

with a little help and a little extra support. Start your visit today at felix.ca. That's F-E-L-I-X dot C-A. I want to take this moment to thank you, our listeners, for all your help this season. You not only send me great comments and suggestions, but amazing articles and links, which I love and always read. Thank you for being so kind. We make the show for you, so your input is always welcome and appreciated here. The questions we answered today are no exception.

But of one thing, there is no question, and that is how amazing the people are behind the scenes at Under the Influence. And being that this is our last show of the season, I'd like to tell you who those people are who work their hearts out for you every week. Our incredible sound engineer is Keith Oman,

who has worked on every single episode since day one, nine years ago. Our theme music was created by the gifted team of Ari Posner and Ian Lefevre. There's quite the O'Reilly contingent behind the scenes of this show. All show coordination, shipping, and scheduling is handled by the mighty Debbie O'Reilly. Our great website page and podcasts are managed by Sydney O'Reilly.

Research cataloging done by Shea O'Reilly and audio editing done by Callie Rae O'Reilly. Our amazing under the influence researchers are Lama Balagi, James Gangle, and Tanya Moore-Yusuf. All fantastic and incredibly resourceful. Couldn't do it without them. Thanks to all the wonderful folks at Pirate who help us with the show every week. A big bouquet goes out to the amazing Ananda Korchinski and all the folks at CBC who are always there when we need them. And a big thank you goes out to Chris Straw, Senior Director of Network Talk at CBC, Thank you. Anniversary on CBC Radio. Hard to believe it's gone by so fast.

And I've loved every minute of it. We hope to be under the influence again next January. Have a great summer. I'm Terry O'Reilly. Thank you. Hi, you've reached Terry O'Reilly at Under the Influence. There's nobody here to take your message right now, but if you leave your name and number, we'll get back to you in January. Okay, I won't beat around the bush. I like the cut of your jib. And your jib would look even better in an Under the Influence t-shirt.

You'll find them on our shop page at terryoreilly.ca slash shop.