All posts by jd

Embedded advertising not detected by consumers

When I watched the Academy Awards this year, I noticed that Ellen DeGeneres was goofing around and I did not pay much attention to the selfie but I did notice that she used a Samsung Galaxy Note 3. It was not until a few minutes later that I noticed that Samsung was a sponsor and running commercials promoting its products. So when she challenged the television audience and Twitter followers to make that particular selfie, with several other Hollywood stars, the most retweeted image of all time, the masses who have nothing better to do than to waste time on social media went nuts. Of course, the record was set and some users reported that Twitter crashed (which is occasionally a deliberate act in order to create buzz — you must have noticed that no one cares if a website is performing normally but it becomes news if it crashes). It was only later on that I found out that DeGeneres used an iPhone to tweet backstage. Now we know for sure that these days on the red carpets, most of the big stars are walking billboards for brands, so it makes perfect sense that Samsung as a sponsor insisted that the host could not use a competitor on screen. But, the masses don’t seem to care if something a paid placement or someone was compensated for using a product, and while it might have sounded like a fun, cute thing to do, in reality they all contributed to making an ad for Samsung without being paid anything. An excellent use of embedded advertising.

Image of selfie by ellen degenerest at oscars

The second case study I wanted to discuss is the so-called First Kiss video that went viral on YouTube. It is one of those heart-warming cute films that females and bloggers love. In addition, all those masses on Facebook who too have nothing better to do than to share/like love this sort of stuff. What they did not know that they too were trapped by a business into sharing an advertisement without being paid a penny for doing so. A clothing company Wren made the short video not to showcase people kissing for the first time but to show off their clothing line. In other words, go out there and exploit the masses with plenty of free time who will contribute to advertising your product as long as it is cute, heartwarming, or funny.

Image of couple kissing for first time

MINT is probably as much fluff as BRICS

If you were disappointed by the BRIC hype, you are not alone. A lot of investors were even more upset when it was revealed that BRIC (Brazil, Russia, India, China) became BRICS not because South Africa was truly an emerging economy, but because there was a hue and cry over not adding an African country and adding Nigeria (the other fast growing economy in Africa) was not going to sound very well, they added South Africa.

If you have lost money trying to invest in these economies (the growth has not sustained and unless you invested massive amounts of money, you probably lost it through index funds), don’t fall into the trap replacing them. It is yet another catchy acronym: MINT (Mexico, Indonesia, Nigeria, and Turkey).

Mexico: I mean, seriously! Yes, things are slightly better than before, but if you read the news carefully, there is a civil war underway between militias, drug cartels, and law enforcement (no one knows if they are on the side of the people or the criminals).

Indonesia: This is a country that reminds me of Brazil in BRICS. Not too poor, lots of people, and a rising middle class. I can’t imagine how they can sustain the growth when Indonesian Rupiah is in free fall.

Nigeria: Be careful investing in a company because you cannot trust any financial information. Granted that this is a country rich in resources but almost all the businesses are run by thugs and crooks. So not right for individual investors.

Turkey: We have heard this music before. The country is undergoing enormous turmoil and the fight between the progressives and mullahs is about to get ugly leading to multi-year chaos.