Getting the WORD Out

K.C. Neel

Cable operators have always dodged footing the bill for brand building, whether for themselves or the programming they offer to subscribers. Indeed, programmers have long complained that cable operators couldn't market their way out of a paper bag.

And even though competitors have been trickling onto the scene, cable operators efforts to improve their image has been slow. A few acquisition campaigns to bring in new subscribers over here, a few retention campaigns or upgrade campaigns. But take a stab at building image? Talk about ... gulp ... customer service?

Forget about it.

Now, however, the tide is turning. As the broadband race becomes more intense with a variety of competing products and programming becomes more of a commodity that can be found by any number of distributors, the need to build brand becomes increasingly important.

"My sense is there is a significant amount of interest among cable operators in brand marketing," says Craig Leddy, SVP-market analysis for The Myers Group. "There's a lot of talk about doing it. But I'm not sure how much execution has been done."

Branding power Cox Communications Inc. is one company that's committed significant resources to brand marketing. The company launched a major branding blitzkrieg last spring with the tag line, "Now You're Living" The program is running on top of existing acquisition and retention campaigns and Joe Rooney, VP-marketing, says Cox's marketing budget has increased to as much as 7% of gross revenues.

"We've punched things up a bit," he says, noting that Cox is preparing to reevaluate the campaign in December.

Cable operators really need to look at the relationship they have with their customers, Rooney says. "If we want to transition from being a cable television provider to a full service telecommunications provider," he says, "we have to say that message loud and clear. We can't market the way we used to. We need to tell them we'll enhance their lives. It's emotional."

For its part, AT&T Broadband & Internet Services is gearing up to launch a major brand awareness and identity campaign in early 2000, says Doug Seserman, SVP-marketing. The company spent most of 1999 marketing the transition from the TCI moniker to AT&T.

Next, AT&T is gearing up for traditional holiday acquisition campaigns for both its traditional cable and high-speed data products. The video campaign will focus on the company's digital service and highlight pay products, says Cathy Kuo, VP-video marketing.

The campaign is a joint effort with programmers. "The new era of customer marketing is a truly cooperative effort," Seserman says. "The programmers are working with the operators to create specific plans that meet both parties' needs."

Leddy agrees. "Our research is telling us that operators want to be able to focus on individual markets and systems," he says. "Localism is a hot button and is becoming very important in marketing. Operators are looking for more local event and local ads sales support. Of course, there are revenue issues involved in this, but it also helps both the operator and programmer with their image."

Image campaigns "Our campaigns are generally related more to the things we do in a community like the on-time guarantees," said Time Warner Cable spokesman Mike Luftman. We also tell people about the charitable things we contribute to and the local things we participate in each market. We're doing things that benefit our image, and then we're telling people what those things are."

An operator has to tell his story, but he has to have a story to tell, Luftman says. "It's not just image," he says. "It's a way of doing business. It's the kind of corporate citizen you are. Image means nothing without those components."

Cox's "Now You're Living" campaign talks about the present and the future. "If we're going to get people to pay us $150 a month for video, data and telephony services," Rooney says, "We need a firmer place in their minds of what Cox is and what is stands for. We need to remind them what we've done in the past, but also let them know what we'll deliver to them in the future."

Image advertising is taking on a more important role in the area of marketing, says Sullivan Advertising president and founder Neal Sullivan. But it's not the top priority with most operators and it probably doesn't need to be at this point, he says.

"Image advertising and brand awareness is becoming more important," he says, "because as an operator, you're trying to keep your existing subscriber base so you can sell more services to them. But acquisition advertising can't be put on the back burner because you've got competitors breathing down your throat and it's a dog-eat-dog world now. You've got to be the first one to get a customer."

"If I had $100 in my pocket to spend on marketing," Sullivan says, "I'd spend about $90 of it on customer profiling and acquisition. I'd only spend a little bit of attention and money on the squishier, warm and fuzzy aspects of selling my product."

But Rooney believes that people have to have a more enthusiastic connection to their provider. "We need to develop a more emotional foundation with our customers than we've had in the past ... We want to remind them that we've given them good service in the past and tell them that we'll give them that same kind of quality customer service in the future with all the products we offer."

Selling new stuff While AT&T puts the finishing touches on its brand awareness campaign, the company is concentrating on selling its products. In addition to the digital campaign its launching over the holidays, the company is undertaking its more aggressive campaign to sell AT&T