Mini Cooper ad agency wants to buy radio time ... but no "urban formats"

[Newsjock]

Source: Radio Ink

The Minority Media and Telecommunication Council is ramping up its push for a compliance officer to enforce the broadcast nondiscrimination rule that was part of a 2008 FCC report and order on broadcast diversity. That rule was intended to do away with "no urban/no Spanish" dictates from advertisers or agencies that seek to exclude minority-targeted broadcasters from their campaigns.

... Attached with the MMTC's letter is a copy of an e-mail, dated August 5, apparently from an employee of the agency Palisades Media in Los Angeles. The e-mail requests rates for a Mini Cooper campaign in the Boston; Houston; Washington, DC; and Baltimore markets, asking about 30s in several radio formats and adding, "No combos or urban formats."

Honig writes, "The rule requires broadcasters renewing their licenses to certify on Form 303-S that their advertising contracts do not discriminate on the basis of race or gender and that they contain nondiscrimination clauses. Therefore, to remain in compliance with the rule, every radio station in the Boston, Houston, Baltimore, and Washington markets should decline to broadcast Mini Cooper spots."

Kizart Media Partners' Sherman Kizart obtained the original Palisades Media e-mail, and he has written to agency CEO Roger Schaffner concerning the matter, saying the directive is "crystal clear" and "minimally very disturbing and troubling." He writes, "BMW Mini Cooper will not get the benefit of inviting the $900 billion African American consumer market to buy its cars."

Read more: http://www.radioink.com/Article.asp?id=1454056&spid=24698

[Hello_Kitty]

1. Alrighty then.

Fuck Mini Coopers.

[aint_no_life_nowhere]

5. And they're not real Mini Coopers - they're BMWs

Some corporations think that they can buy out a celebrated name and that the masses will flock.

[Realityhack]

19. Doesn't make them a bad car.

Sure avoid them if you like based on the companies behavior but being a BMW sub brand hardly makes them stink.

[KatyMan]

23. And didn't BMW actually rescue them?

I thought Cooper folded a few years ago, and then BMW bought the brand and factory? :shrug:

[aint_no_life_nowhere]

37. BMW kept the name

They initially bought out what was left of BMC called the Rover Group. Then they sold everything off to other companies including Ford but just kept the Mini Cooper name. The present car is technically unrelated to the old one except for having the type of transverse 4-cylinder, front-wheel-drive engine.

[Realityhack]

You mean like every other car on the road...

which are completely different from anything made at that time?

[aint_no_life_nowhere]

41. British cars have a special vibe

German cars have a special vibe. French cars have a special vibe. Swedish cars have a special vibe. Italian cars have a special vibe. American cars have a special vibe. There's nothing British about the new Mini Cooper. And again, the only thing that connects the new Mini Cooper to the glory of the past is the name. There's no tradition in this new car, other than the tradition of BMW, not the tradition of racing glory of the real car.

[Realityhack]

49. Fair enough.

But many brands change over time. And none of that makes the new Mini any worse or better of a car.

[Throd]

50. I think people want the Mini "look" without the classic British car headache.

I think you and I are very similar in our attitudes towards cars, but then again, BMW isn't trying to sell the new Mini to you and me. They are trying to sell it to 20-something hipsters with a vague recollection of the original Mini at best. I love my '59 Olsmobile even though I spend as much time fighting with it as I do driving it. I don't want the same relationship in a new car.

[ContinentalOp]

52. But that's the whole point, they're NOT trying to sell it to "20 something hipsters".

Which is why they don't want to advertise on "urban" radio.

Jim McDowell: We have a very wide spectrum. It is not a barbell distribution. We have a lot of drivers in their early 20s and even in their teens. A lot of them are not purchasers. Somebody in their family buys it for them.

BNET: But that’s not a majority, right? Is it even a goal of yours, to get more of those people?

JM: We have quite a few people in their early 30s, for whom Mini is the fun car in the driveway. Depending on its utilization, they may trade off who drives which car on which day.

We also have quite a few in their 40s. They tend to be buyers making a reward purchase to reward themselves. A lot of them are females who were always saddled with a vehicle they really didn’t want, for family reasons. Mini could be the first car she really wants.

The male counterpart in this age group tends to be adding an additional car to their fleet. They won’t be using it to pick up clients at the airport, maybe, but it’s a fun car for them. Buyers in their late 50s tend to be done with a lot of life’s responsibilities. They may be simplifying their lives, choosing a simpler lifestyle, realizing that they really don’t have to haul all that around with them any more.

BNET: I hate to ask, if it’s not a number that’s important to you, but what’s your median age?

JM: The median, the last time I looked, was 44 years old, but keep in mind that’s purchasers only, that’s not accounting for people who buy a car for someone of driving age in their household.

BNET: What about customization?

People in their early 20s are dedicating a lot of their income to their Mini. We figure that’s because a lot of them are still living at home, so they don’t have that expense. But their Mini is their own personal space, maybe their only personal space.

BNET: I don’t get the sense that you start every day with a burning desire to sign up more 20-somethings. As you know, the knock on Scion is that it’s supposed to be this youthful brand, but they attract a lot of Boomers. Are you frustrated that you don’t get more young people?

JM: That is not our mission.

http://industry.bnet.com/auto/1000531/detroit-auto-show-bmw-vp-jim-mcdowell-on-the-mini-coopers-success/

[aint_no_life_nowhere]

26. I love old cars

The British Mini Cooper, the real one, had a tremendous racing history behind it, winning the Monte Carlo Rally in '64, '65, and '67. I hate it when corporations try to cash in on the glory surrounding certain names or brands. To me, remaking the Mini Cooper by another company is like Hollywood trying to remake a great film from the past and cash in on the title. Why doesn't BMW just brand it as another one of their cars and give it their own shape instead of trying to ride on the coattails of greatness?
I'm not going to comment on whether the new so-called Mini Cooper stinks or not. Personally, I hate all modern cars and love those made during the golden age of the automobile. But I don't like the idea that a name can be bought, thinking that the drooling masses will identify the new product with the glory of the old one.

[kentauros]

44. Yeah, they should have gone back to the old Isetta/600

Imagine redesigning this for modern crash-tests/survivability and such. Still, however it could be redesigned, it would make for a great commuter/city car :D

[KatyMan]

46. I believe someone has...

[kentauros]

48. Yeah, in a way

but that one is even shorter and there's no front-of-the-car door :D

At lest the 600 had four doors and looks a bit like the Cooper. And it would have been all BMW instead of just a re-packaged name.

[newtothegame]

2. Are they being forced to advertise to markets where they've determined they don't sell cars?

What is this about?

[redqueen]

3. Radio stations play in certain markets?

I didn't think that was the case... the urban format stations here are accessible all over the place.

[newtothegame]

8. My point was made by the poster in #6. Are we supposed to be outraged...

that a marketer wants to market to markets that showed themselves to be promising, and not to markets that didn't?

[redqueen]

12. People who listen to urban format are less likely to buy that car?

Maybe so... I'd like to see the market research that backs that up.

[NashVegas]

17. Actually, That's a Pretty Good Point

Hip-hop stations have a good size segment of white youth listening.

Mini's ad agency may be cutting off their own future, but it's their right to be stupid.

[qazplm]

18. maybe

it isnt crazy that some segments of society prefer some types of vehicles over others.

I'd think particularly a car like the mini-Cooper which would seemingly appeal to a very thin slice of folks, not even to the general car buyer.

I'm hard-pressed to get up in arms over this as an African American. If they want to target their advertising to a narrow niche, more power to them. So long as I can BUY a mini cooper should I want to (and I dont) then I dont care who they focus their advertising on.

[redqueen]

24. Ah it's not so weird really...

when you consider how much of fashion/trends/tastes is just trying to 'fit in' with your peer group (who said high school ever ends?)

I'm not up in arms... just shocked... all kinds of people listen to those formats... so it's just surprising to me.

[Hello_Kitty]

20. There probably isn't any

Sounds like an arbitrary assumption by a marketer who assumes that "those people" don't buy that type of car. Which is ridiculous considering that Hip Hop/R&B is an extremely popular format in big cities, listened to by a wide variety of people.

[redqueen]

21. "Hip Hop/R&B is an extremely popular format in big cities, listened to by a wide variety of people"

That's exactly what I was thinking when this article made me go :wtf:

[ContinentalOp]

25. Doubtful.

I guarantee they've done their demographic research.

[Hello_Kitty]

31. I'm sure they did demographic research with New Coke too.

Along with a large number of other products and ad campaigns that have failed and been forgotten because the marketing geniuses were "so sure" they had just the right message for just the right market. Confirmation bias leads people to focus on the ad campaigns that succeed and ignore the ones that fail. There's a lot more trial-and-error going on with marketing than most people think.

[Realityhack]

33. And a lot more research than you seem to think.

Especially with very high end products like cars.

It isn't like the agency is launching a new product. They have plenty of demographic data on Mini buyers.

[Hello_Kitty]

53. I'm in marketing myself. I know what goes on.

I also know that a lot of mistakes are made and IMHO this is a boneheaded insulting move on the part of Mini Cooper.

[Realityhack]

56. Could be.

I am also in marketing and I will admit that I have no idea if urban format stations would be a good choice for Mini ads. Could be it would do well for them, could be it wouldn't. Could even be that they have tested it and know for sure. I don't think we have the facts to accuse them of racism.

Either way I think it is stupid to try to claim their choice not to air ads on those stations should be illegal.

[ContinentalOp]

51. Actually, the market research for New Coke did in fact reveal that there would be a backlash.

They just didn't realize the significance at the time.

The results of that were strong — the high fructose corn syrup mixture overwhelmingly beat both regular Coke and Pepsi. Then tasters were asked if they would buy and drink it if it were Coca-Cola. Most said yes, they would, although it would take some getting used to. A small minority, about 10-12%, felt angry and alienated at the very thought, saying that they might stop drinking Coke altogether. Their presence in focus groups tended to skew results in a more negative direction as they exerted indirect peer pressure on other participants.

The surveys, which were given more significance by standard marketing procedures of the era, were less negative and were key in convincing management to move forward with a change in the formula for 1985, to coincide with the drink's centenary. But the focus groups had provided a clue as to how the change would play out in a public context, a data point that the company downplayed but which was to prove important later.

While it is widely believed today that the new drink failed almost instantly, this was not the case.... Sales figures from those cities, and other regions where it had been introduced, showed a reaction that went as the market research had predicted. In fact, Coke's sales were up 8% over the same period the year before.

Most Coke drinkers resumed buying the new drink at much the same level as they had the old one. Surveys indicated, in fact, that a majority liked the new flavoring. Three-quarters of the respondents said they would buy New Coke again.

Despite New Coke's acceptance with a large number of Coca-Cola drinkers, a vocal minority of them resented the change in formula and were not shy about making that known — again just as had happened in the focus groups.

http://en.wikipedia.org/wiki/New_Coke

[Realityhack]

27. That is very doubtful

Large advertisers like auto manufacturers and their represetitive agencies usually have a VERY good idea what their target market is.

As for a 'wide variety of people' that isn't the point. I am sure there are people who drive pickup trucks and listen to classical stations, but that does not mean it is profitable to pay for all the advertising a truck company would pay for that was going to people who do not buy trucks.

It is a mater of wither the agency thinks that a high enough percentage of people listening to a particular format are likely purchasers of the item/vehicle in question.

[Hello_Kitty]

29. And they always come to the right conclusion with their research.

Which is why product launches and ad campaigns never fail.

[Realityhack]

32. No they are not always correct.

But their research is a hell of a lot more accurate in general than just guessing.

BTW is being wrong a crime now?

Oh that's right it is well within their rights to be wrong. They will sell fewer cars, and eventually be fired for an agency that does better.

[Xithras]

30. No, but they might not respond to that particular campaign.

Advertising campaigns often target particular demographic groups for various reasons. If you owned a company selling product X, and the demographics showed that you're not selling many of your items to urban African Americans, for example, your company might produce an advertising campaign specifically for that audience to try and increase sales. You wouldn't run that new campaign on Country & Western stations simply because few blacks listen to that type of music (yeah yeah i know that some do, but they're an extreme minority). If you were choosing where to spend the ad dollars, you'd run those commercials on the radio and TV stations with the greatest percentage of your target demographic in the audience.

Without knowing the specific campaign details, it's impossible to know what their reasoning behind the decision to avoid those stations was.

[newtothegame]

35. Fair enough. They probably passed up on the million$ in sales cause they don't like rap. n/t

[cbdo2007]

55. No, they're saving millions that wouldn't pay off for them that they can in turn give to their

employees.

Ah good old capitalism....

[Egalitariat]

34. It depends on you whether you define a market as a geography or a group of people

Most advertisers/marketers define their market as a group of people.

[Throd]

4. Am I supposed to be outraged?

[Sen. Walter Sobchak]

60. the fake outrage machine knows no limits

I was accused of racism for posting a link to a movie on Hulu about Malcolm Bricklin and his failed auto venture in Mainland China, in which his Chinese partner fucked him over and went into business with the US dealers he introduced them to.

You would think I had posted a link to a 1920's newsreel about opium dens,

[cbdo2007]

6. Advertisers marketing towards a specific demographic is nothing new or wrong.

I'm sure they've done thousands of $$$ of research to determine that "urban" listeners don't really drive their cars. Therefore, why should they waste money advertising to them?

[Tim01]

7. I don't think I understand this.

Does the law say they have to spend money to advertise in all markets, even if they don't want to advertise in all markets?

How many rednecks are driving mini coopers?

[SoCalDem]

10. This is a stretch, isn't it? How many ads for Huggies are there in Playboy?

It's called marketing, and targeting specific demographics IS what it's all about.

[Realityhack]

28. +1 n/t

[Sen. Walter Sobchak]

9. uhh... wha?

Isn't the point of market research to get the most bang for your advertising buck?

That is racist now?

[snooper2]

11. Are there ads that play specifically to urban "formats"?

what they hell does that even mean? I listen to all kinds of music

Second thought - when I listen to see what rUsh lImpnuts is spewing I hear all kinds of stupid ads targeted at his demographic...

[redqueen]

13. I don't anymore, but I did for a long time...

I still do sometimes, just not regularly.

I find this odd.

[Schema Thing]

16. yes, of course there are.

[hedgehog]

14. I don't think I know enough about what is going on here to

make a comment. It seems reasonable that advertisers target their advertising. That's what ratings are all about. On the other hand, the FCC made this rule to encourage diversity in broadcasting.

[NashVegas]

15. So What?

How many ads do you hear for African American hair products on country radio stations? What? You don't think there are black people listening to country?

Let's be real: Mini targets an Anglophile market segment. And though I think it's possibly a poor business decision to ignore urban, it's also their right.

[ContinentalOp]

22. WTF, I don't get it. It's illegal to target your marketing toward a particular market segment?

That sounds like a big can of worms.

[madrchsod]

45. it`s not illegal.

i used to advertise when i had a business and i targeted a certain demographic for my product. not a lot of young people were going to have their furniture reupholstered or buy draperies. my targets were working adults and the retired.

[ContinentalOp]

47. I know, it couldn't possibly be illegal. That would be absurd.

But it sounds like that's what they're trying to argue. "The rule requires broadcasters renewing their licenses to certify on Form 303-S that their advertising contracts do not discriminate on the basis of race or gender and that they contain nondiscrimination clauses."

[beyurslf]

36. I am not sue this is a race thing.

I would guess that most people who listen to "urban" stations are less likely to buy a mini cooper. My boys all listen to an "urban" station and they make fun of a neighbor of mine who drives a mini cooper. I don't think race was the issue. Young people probably are not the target demo of the car.

[newtothegame]

38. I bet if we tried REALLY HARD, we could make every issue from here to Armegeddon about race...

WOULDN'T THAT BE FUN???!!! It'd be a contest, who can take the most obscure issue and somehow turn it into a racial issue? What should we have for prizes?

[Realityhack]

39. Maybe

we should get mad if a tire company advertises their sweet new rims on an 'urban format' station and not on NPR.
Stupid racists!

Honestly even if there was some racism in play here I don't think the info on hand comes remotely close to proving it. And I am sure the market for the Mini is in some ways fairly narrow (well a set of narrow verticals anyway).

[Codeine]

40. If I'm selling a Nissan Cube,

I'm not going to want to spend my ad dollars on classical radio or a country format.

BMW doesn't want to waste its ad money on urban formats to sell a yuppie car.

This isn't racism, it's basic market and demo research. besides, everyone knows that huge numbers of white kids listen to hip-hop.

[MindPilot]

42. So how is this different from us wanting ads pulled from Fox?

If the people hearing or seeing your ads aren't going to buy what you're selling, why advertise in that market?

Along the same lines if where you are advertising is driving customers away, then why advertise there?

Sometimes the market does need to be free.

[madrchsod]

43. mini coopers are not going to sell well in an urban market

the market is`t there for this car. advertisers alway target a demographic to sell their products.



remember ford was "boycotted" for marketing their products to "the gays" ever notice that mercury is marketed to under 40 middle class white women? the list goes on and on....


much to do about nothing.....

[Hello_Kitty]

54. Yeah, they're small, economical, and easy to park. Who'd want that in the city?

:crazy:

[Realityhack]

57. To be fair...

we are not talking about the urban market we are talking about the demographic that listens to urban format radio.

And if we were talking urban environment they fit in nicely but I would hardly call them economical when you factor in your car payment. The difference in price between a manual Rabbit or a Kia and a Mini buys a shitload of gas. I wanted a Mini but when I went car shopping I found I could buy two Rabbits for the cost of one Mini and ended up going with another brand all together.

[ContinentalOp]

59. Uh, "urban market" doesn't mean "city" -nt-

[Hello_Kitty]

62. The markets mentioned in the article are cities. Big cities.

DC, Baltimore, Houston

[ContinentalOp]

63. Yes and they are advertising in those cities. Just not on the "urban" stations.

Which is a euphemism for black.

[BlooInBloo]

58. I guess I *don't* see a brazillion of them in SFO then.

[Newsjock]

61. UPDATE: Mini USA apologizes

http://www.radio-info.com/sections/2-breaking-news/news_items/6598-client-mini-apologizes-for-the-no-urban-dictate-on-a-recent-ad-buy

Sherman Kizart’s letter to the client got the speedy attention of Mini USA marketing director Trudy Hardy, who says “urban formats have been a part of Mini’s media mix in the past and will continue to be in the future.” She has asked buying service Palisades “to reissue the correct buying instructions immediately” and pledges to “take corrective action with Palisades to make sure this never happens again.”

[Tim01]

64. I don't know why they should appologize.

I sell stuff. I market to people likely to buy what I am selling.