Galt Global Review

QFS 360

March 18, 2003
Buyer Beware: Uncovering Undercover Advertising
Business
by Jana Ritter


In this age of skeptical consumerism, traditional advertising vehicles are facing roadblocks that have many companies seeking innovative, if not extreme, alternatives. While a more sophisticated and discerning breed of consumers has inspired innovative approaches to slipping past consumer radar, it has also resulted in undercover marketing operations that are avoiding detection altogether.

Whether or not it is considered a fresh approach to product endorsement, or protested as a deceptive form of commercialism, stealth marketing is being unobtrusively infused into our daily lives.

Silencing a sales pitch
Captivating anyone with practically anything appearing on its screen, television was once both a technological wonder and an extremely powerful advertising tool. However, as the fascination faded and the commercials gradually lost their appeal, the remote control became the new wonder that could either silence or "channel surf" past pesky ads with a simple press of a button.

According to the Time Magazine's article, "It's An Ad, Ad, Ad, World", the thirty-second TV commercial is becoming so much less effective that Jamie Kellner, CEO of Turner Broadcasting, is one of several executives who claim that commercial-supported free television is an endangered species.

As well, Gary McCarron, Asst. Communications Professor at Simon Fraser University, Vancouver, says the public is already immune to most mainstream advertising and new research indicates that advertising that doesn't seem like advertising, is the new way to reach our jaded minds.

"We have already seen an increase in the use of celebrity spokespeople for pharmaceuticals and we are also witnessing an increasing amount of 'below-the-radar' practices. A common example is record labels that hire young people to pose as fans of a particular band by logging onto websites and creating hype about their latest album," says McCarron. "Covert marketing has even been integrated into the music itself, and is especially prevalent in the content of mainstream rap lyrics."

However, teenage music fans aren't the only ones being targeted. In addition to celebrities casually endorsing drugs on afternoon talk shows, Time Magazine also revealed that television producers are being paid to build story lines around particular products. Inspired by Revlon's part in a three-month story line on the daytime drama, All My Children, many companies are aggressively seeking opportunities to cast their products in television and film roles.

Beware the secret salesman
While the mainstream media still has the power to hit huge demographics, consumers have also developed an awareness of its objectives, and it is the guerrilla tactics of 'live' stealth marketing that has become a prevailing issue of controversy.

Friendly tourists ask you to take their picture with an impressive camera, a sultry bar patron asks you to buy her a drink of her favorite brand of alcohol, groups of mothers talking about a certain brand of laundry detergent at their children's baseball games are what Time Magazine cites as examples of an increasingly popular alternative marketing strategy known as "buzz campaigning".

Operating in thirty cities across the United States and Canada, Big Phat Promotions has attracted a lot of media attention for leading this contested trend of marketing. The company defends their tactics as "spontaneous" and "virile" approaches to product promotion. Media critics however, argue that paying actors to engage unsuspecting targets in "friendly" encounters is unethical.

According to a recent article, "Are You For Real" in the Montreal-based publication Massoneuve, the media isn't the only one who has a beef with Big Phat. The article reported that although Big Phat's lack of disclosure is raising issues with the Canadian Competition Bureau and the U.S. Federal Trade Commission, they haven't been able to charge Big Phat with anything other than bad taste. Meanwhile, company President, John Ressler, continues to guarantee his events to be "absolutely invisible".

What the "big guys" think
While "absolutely invisible"" may be a lucrative guarantee in North America, it is not a wise slogan for Australian and UK advertising businesses. Following a ruling forcing multinational tobacco giant Philip Morris to pay a huge fine for a cigarette campaign targeted at unsuspecting young women during a fashion show, the New South Wales government has enacted legislation further preventing tobacco companies from using similar stealth marketing practices. Under the NSW Public Health Act, the state can impose a million-dollar fine on any company violating the Act's strict tobacco advertising regulations.

After catching British American Tobacco's internet buzz campaign designed to lure young consumers into specific bars and nightclubs promoting their cigarettes, the British government has become even more determined to rule out tobacco advertising altogether.

Adam Salacuse, CEO and President of Alt Terrain, LLC, a Boston-based agency specializing in alternative promotion services, stresses buzz campaigns should only be used in conjunction with larger, more traditional advertising campaigns. "It is always best to be honest with people and if used properly, alternative marketing can be a unique and relevant experience that the consumer will always remember".

Tom Shepansky of Rethink Advertising in Vancouver favors a more traditional approach. "The mandate of our company is to use conventional marketing vehicles more creatively and simply do a better job. There is no reason why advertisements can't be engaging, entertaining and something that people want to watch." Proof of this is the recent success of a television commercial making "whaz-up" an international phrase associated with Budweiser. It was both appealing and effective while simply remaining upfront and honest.

Aside from the potential legal issues, unethical stealth marketing can be bad for business in general. McCarron warns that if advertising becomes so sneaky that it is unrecognizable from the everyday experiences of defenseless consumers, it will damage corporate credibility and the resulting state of distrust could have an extremely negative effect on social interaction.

When all is said and done, and in the absence of a clear legal mandate for total transparency in advertising, "Caveat Emptor" or "buyer beware" is still the guiding principle for consumers.

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