Learn from the director of digital media & marketing how this giant company is moving marketing efforts from TV to online.
As director, digital media & marketing of Pepsi-Cola North America, John Vail is responsible for developing internet strategies for brand building and promotional initiatives. Prior to assuming his present position in June 1999, Vail was in the media & entertainment marketing department where he held a series of senior positions, and originally joined the company in 1990. Before joining Pepsi, Vail was a vice president, assistant media director with Ogilvy & Mather Advertising in New York. He holds a BA in Marketing from Pace University.
iMedia: With P&G's recent announcement that it's pulling some dollars from network TV, and ZenithOptimedia's new predictions showing internet advertising increasing, it seems "spray and pray" is starting to feel some pressure. Is this a good thing for interactive marketers? Has it opened some budget for you?
John Vail: We have evolved our media plans over the last six years to reflect the changing consumer landscape. Thus, there have been no knee jerk changes; just planned evolution, which has seen an increase in our interactive investment.
iMedia: Following up on that, how has the media mix changed for you over the last few years?
Vail: We have had steady growth fueled by brand initiatives and offline to online code-based national promotions (four this year alone).
iMedia: What was your most successful online or integrated campaign recently and what made it successful?
Vail: On June 1st of this year, we re-launched Pepsi Smash from a two-year run as a Summer TV show to a full VOD online program partnering with Yahoo! Music. Pepsi Smash on Yahoo! Music is a 24/7/365 effort for which initial results have been very positive. We are executing radio, print and grassroots efforts to support this integrated effort.
iMedia: What do you think is the greatest benefit of online advertising? The ability to measure? Precisely target? Gather data? Something else?
Vail: Yes ... all of those! Plus, as rich media has now evolved powered by the penetration of broadband, we are finally able to deliver high impact online advertising.
iMedia: Is there a "killer app" for you? What is it (email, search, advertising on certain sites, integration of advertising)? Why do you believe that works for your company/product/service?
Vail: Two things that jump out for me are our ability to integrate our campaigns -- the recent launch of Pepsi Lime TV and then a microsite and online advertising that is seamless is an example in the market now -- and second, the growth and health of our database marketing efforts have been a secret weapon for us to jump-start programs and have a continuous dialogue with our best consumers.
iMedia: What still frustrates you most about online advertising? What can be done to improve the situation?
Vail: Sites that continue to deliver pop-ups -- get over it and just stop.
iMedia: What's the next big thing and how will it affect you?
Vail: As consumers move to on-the-go connectivity, we have to ensure we can deliver compelling, engaging experiences that compliment and integrate into the overall communications mix.
iMedia: Have you done much with wireless, iTV or other emerging mediums?
Vail: We have used SMS effectively for a number of promotions and are gearing up for 2006.
iMedia: Are you doing any behavioral targeting? If yes, please describe.
Vail: Yes, we are targeting based on online behavior and purchase behavior where it makes sense and is available.
iMedia: Are you being affected by any consumer-generated marketing (CGM) -- blogs, user groups, etc.? Are you using any blogs or other social networking tools to market?
Vail: We have used message boards a number of times but have made a decision to monitor CGM and not jump into the fray.
iMedia: What's the key for having a successful relationship with agencies?
Vail: Our online agency, Tribal DDB, has been with us from our first initiative in 1995. Having an open, honest dialogue and ensuring scalable resources are in place have proved fruitful for us -- and of course, that is a two-way street.
iMedia: Any final words of wisdom for other marketers? Something you've recently learned, perhaps, or some advice someone has given you?
Vail: Check your rearview mirror occasionally -- but never take yours eyes off the future.