GM: Perceptions vs Reality

We got a lot of comments on the Fareed Zakaria story last week. We think this article deserves attention to, so here we go: Warren Brown at the Washington Post starts out:

Perception is everything, or almost everything.

If anything is to be learned from Detroit’s beg-fest on Capitol Hill, it’s at least that much.

Perception influences reality.

Thus we have the General Motors “confession,” its “commitment to the American people” published on the second page of the Dec. 8 edition of Automotive News, an industry trade journal. It presents an object lesson in perception versus reality.

Reality: The “confession” is a rehash of sins committed by a GM that existed 20 years ago, stupidities so enormous — pathetic product quality, dismal marketing techniques, all trumped by corporate arrogance — they opened the ports to foreign competition and paved the way for defections of generations of American consumers to Toyota, Nissan and Honda.

But you should really read the entire article – especially if you commented on the post about Fareed. Warren goes on with ten or so “Perceptions vs Reality.” Some of them might surprise you.

Full article

Filed under: Automotive, Information , Automotive, Bailout, GM

DVRs do not kill advertising – just the ads that are terrible

New TiVo-based research says that more than 90% of DVR users “almost always” or “always” fast-forward through commercials. Data may suggest that skipping through commercials is higher than previously believed. Other studies note that 60% to 70% of the time DVR users skip through commercials.

The research was part of the initial results of Starcom’s custom survey using TiVo’s Power||Watch ratings. Starcom was the first media agency to subscribe to the TiVo Power||Watch ratings service when it was launched in November 2007. The service gives agencies and advertisers access to demographic and viewing behavior data for 20,000 households that volunteered to take part.

While fast-forwarding is a factor in owning and using a DVR, Starcom says that only 10% of viewers view commercial-skipping as the main benefit of a TiVo DVR. 80% say the main reason is to record programs for later viewing.

Other results from the study say that consumers are not totally averse to watching commercials. Around one-third of viewers said they will watch a commercial when it is “relevant to them.” Another 21% say they watched ads because they are “entertaining.”

One sign that there needs to be better creative execution and microtargeting of consumers comes from research: 61% of DVR users would be likely to watch commercials if they were more relevant.

We heard of this study thanks to @BrandCentral on Twitter

Filed under: Market Research, Marketing , Advertising, DVR, TV