Why does Boeing advertise on TV?
Why does a company like Boeing advertise in prime-time? Boeing doesn't sell airliners to the average audience of "Mad About You." How is having an ad about Boeing on television going to help them? It's not like someone is going to rush out and buy a 737 because they saw an ad.
There are others too -- I remember ads for General Dynamics from years back. To a lesser extent, Cisco often advertises its big, business hardware on TV, even though the percentage of viewers with direct purchasing power hardware like this is perhaps 0.01%.
Every once in a while you'll see an ad for a company that just appears to be promoting its brand, without any realistic hope of anyone seeing the ad being in a position to purchase their product.
Are these just PR moves? Is Boeing just trying to build general consumer goodwill? Is there a big trickle-down effect of these ads that's escaping me?
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Mike C
Group Account Director, Associate Partner
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Here are my thoughts:
1. They run these ads to build their Brand. Now what this means is key. In this case, building a Brand for Boeing means positioning their firm against their rival - AirBus. Big picture, the firm does this to reinforce in the mind of consumers (I.e. Fliers) that Boeing is the top quality name in airline manufacturing. People in the US fly Boeings more than AirBusses - so in part, these ads could be leveraged to reinforce 'Why Boeing'? Soft, I agree, but logical...
2. Boeing is targeting the financial community with these ads as well. Investors (whether brokers or people like you and me) look at these ads/see these ads - and whether we like to admit it or not - the ads help us form an opinion about that company. (Same reason why electric companies advetertise. We have no choice but to use their services... so why are they advertising?)
3. They are challenging their main competitor - and making sure that their message is heard and differentiated here in the States.
4. Lastly, I agree with others that these spots are in part PR - and that their audience is wide. However, deals get made based on Brand name - a reality everyone needs to wrap their arms around. There is a reason why there is saying like "No one ever gets fired for hiring IBM'. Other firms produce comprable products/Etc, yet IBM's repututation (build largely along Brand value over time) is what sustains that organization, in part. Their Help Desk commercials serve the same role as the Boeing ads... No C-Level IT person is going to choose IBM based on a TV ad... but seeing IBM out there keeps IBM top of mind - and directly impacts their competitors.
Anyway, just one more person's POV...
Shawn T
Software Engineer at Wells Fargo
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This is a very interesting question, and while I do not have the background to answer your question (even for myself), I think that you have the idea right, but that it is all of the things you said, and not just one of them. Boeing's purpose may be to build positive PR after the recent negative PR they've had: http://en.wikipedia.org/wiki/Boeing#Unethical_conduct
In the case of Cisco, no PR balancing seems necessary, but like you said, building the brand is important. It seems logical that a company with a larger consumer following would attract more big business clients. Plus, those 0.01% of viewers that are executives and IT professionals probably don't need to see an ad to know who Cisco is, but they might not be familiar with all the latest developments in the industry (especially if they work for mid-sized companies).
I'm afraid I didn't offer an answer, just more conjecture. I wish I understood the matter better as well.
Ryan T
"The simpler our means, the more we communicate."
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Everyone above is much closer than they realize. What seems like "advertising" is in fact "public relations" by corporations that normally one wouldn't think would need the exposure through the particular forms of media chosen.
The exposure, however, is *not* about gaining investors (though that's always a welcome side benefit, nor always putting on the best public face in the wake of a crisis (hence the visibility of spots when it seems like nothing critical s happening).
Think instead about the audience being policymakers and current investors. Commercials and print ads tend to be constants, keyed to geographically strategic regions of influence.
Strategy also involves more subtle aspects, such as sponsorship of public affairs or public broadcasting shows.
You might also see heavier media buys timed to expected policy deliberations or key corporate calendar milestones/deadlines (like corporate earnings reports, goverment economic data releases, etc.).
For large firms like those you cite that particuarly tied to, and dependent upon, such cycles, perception is everything you make of it on a continual basis.
Clarification added July 16, 2007:
Other thing to notice: "advertising" from these players (e.g. industrials) when there's a particularly big product launch especially targeted to heavy-duty customers to reinforce confidence and distance against competitors in key regulatory arenas.
I hear Boeing launched a really cool new plane (787) worth a look recently that even made the morning show rounds.
Compare this to the numerous stumbles faced by foreign rival Airbus (A350) in realizing commercial flights and then ponder whether there will be a shortage of "gleaming celebratory flag waving" messages
Those will no doubt help promote advance orders from major carriers as soon as possible,while reinforcing government relations along defense contract ties, keep investors happy, etc..
You have to send a big signal by showing the product in use, instilling confidence among the public, and building connections to the players you actually want who listen to the public to varying degrees. The value of mass advertising...
K Naresh K
Brand, Marketing and Business strategy consultant
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This is a very good question, Deane, and I'm not sure I agree fully with most answers above.
The common refrain seems to be that they are doing it to "build a brand". But a brand is built in the minds of specific stakeholders, so the logical question that then arises is - "In whose minds are they trying to build the brand and to what purpose?" which I suspect is the essence of your question anyway.
While people who actually buy aircraft do watch TV, it is obviously tremendously wasteful to use what is by definition a MASS medium to address an audience of at most, what, 20 people? 50?
Of course the truth is that company brands address many different constituencies, not just the customer, so there is some merit to the hypothesis that it was meant to address investors. As a matter of fact, it might quite plausibly be trying to address other constituencies as well, such as prospective employees (to attract more talent), current employees (to boost morale and pride in working for the company) prospective partners / alliances etc.
But all said and done, there are more accurate and efficient ways of addressing all of the above mentioned, without resorting to mass media, which is really a shotgun approach in this context. All in all, I agree with your viewpoint - to me it smacks largely of sub-optimal media planning.
Clarification added July 16, 2007:
Of course, a lot depends on what the CONTENT of the ad is, and it is difficult to have a more informed discussion without knowing that. For instance, it could well be to counter bad press, or clarify some controversy etc.
Siebe S
Marketing Consultant, business coach, five to twelve problem solving
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Most of the obvious is already mentioned. But I would like to add the following.
First, OFCOURSE it has to do with branding. The image is everything and companies like the ones mentioned need to address a number of targetgroups (see Ryan's answer). How many people are involved with the brand, through their work? Don't forget the people who actually work for the company itself!
Second; it seems that everyone believes in some sort of Big Advertising Scheme of these kind of industrials. Get off it. I wish it was true. Do you really believe that the average advertisingagencey, media buyer or planner, thoroughly works out a dedicated mediaplan? What do you think the marketing budget of Boeing is. That itsybitsy tv-exposure is nothing and probably just the idea of the agency to boost their turnover. Even better: maybe the CEO of Boeing got an hard on, by the idea that "his" company would go national.
Robin C
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Having not seen the ad, it's difficult to do more than speculate, but here goes. Boeing advertises to make people feel good about flying in a Boeing plane. At the moment it's winning against its major competitor Airbus, it's a couple of years ahead with its Dreamliner, and it needs to leverage its advantage in sales with equivalent gains in consumer confidence, and awareness of the type of plane their airline chooses for their comfort and safety. It wants the airlines it does business with to be happy they purchased Boeing, and to purchase Boeing again, and those airlines do listen to what passengers tell them. So it pays Boeing, rather as it pays Intel, to build public trust and confidence in the Boeing product. There can be spin-offs in terms of investor confidence, but Boeing will have its own specialist investor relations programme.
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Maybe so that their investors feel good about owning stock in Boeing. Average audiences like those watching "Mad About You" invest their money too! Boeing probably dedicates a certain budget to TV advertising to keep the investors happy.
Sheilah E
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They want to remind others how successful they are so the average Joe will invest in their stocks.
Sheilah
Andrew B
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How many advertisements actually cause people to run out and immediately purchase that product anyway?
It's more about brand equity and name recognition. The perception that a company is well known and a market leader will come into play whenever a purchase of the product is going to be made, or other transactions related to the company, such as B2B partnerships.
You never know who is watching what show when they see an advertisement, and the influence that person has might be sufficient to influence a deal.
Terri L M
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I would assume it is to keep their name out there in the public's minds, show their success. Remember, those people who actually DO purchase their products also have homes with televisions too. Kind of the concept of those businesses that do radio advertising during 'drive time'...to get the attention of business people on the way to and from work.
