Skip to main content

General Motors embraces embedded advertising

It is not a big secret any more among the advertisers that traditional advertising ROI has rapidly dropped. In fact it continues to surprise us that there is still so much advertising budget for television despite the low return. Sometimes you actually wonder why some companies continue to waste their dollars on what everyone knows does not work effectively. (Related article: Traditional advertising in danger)

When we proposed the 3Es of advertising, we were not sure how many advertisers we will see who will embrace embedded advertising but one example that we want to point out is that of General Motors giving away over 200 cars to the audience in Oprah's show. Wow! What a smart move? The publicity is incredible and would not have been possible even if they had spent $100 million on traditional advertising. The overall cost to GM: less than $10 million.

Tips on implementing embedded advertising

  1. Think outside the box. An emerging high-end restaurant in the Boston area recently served dinner to a group of entrepreneurs, management consultants, and venture capitals attending a conference. Price charged: $0. ROI: Infinite. We have already brought our clients twice at the restaurant since then.
  2. Make it obvious but keep it subtle. In our analysis, we have found that the value derived actually declines if you push it too hard. So do not call it the "ABC dinner". Instead dazzle the target with an excellent "customer experience" and then let them find out who created it. (Related article: How to create a delightful customer experience?)
  3. No matter what you do but think of something that is associated with a repeat experience so that every time the target customer does it again, s/he can establish the connection with your brand. The most effective embedded advertising is the one that becomes part of the everyday experience.
  4. Focus on quantifiable results. Oprah just did not give away the cars. The audience was chosen on the basis of their "need" for a new car. That is what results in "stories" and stories are what people talk about ("word-of-mouth") rather than yet another pen that you gave away at a conference that people left in their hotel room because they couldn't find enough room in their suitcases to bring all the junk home.