Volaris

Volaris Airlines earlier this month announced a new daily flight between Chicago’s Midway airport and Guadalajara starting in December 2010, which will come as great news to travelers in that area, since currently the route from Guadalajara to Chicago was only being served by Aeromexico, and they suspended operations in August.

The airline has been extremely successful in Mexico as well as in the U.S., particularly the international routes in and out of California at airports in Los Angeles, San Francisco, and San Jose.  As a patron of Volaris for my trips to Mexico, when possible, I have to say that it is a very Latin experience as shown in this entertaining security video explaining safety in the context of a telenovela featuring the Mexican actress Claudia Lizaldi.  With its first flights starting as recently as 2006, sporting a vibrant logo,  new planes and a sense of humor similar to that of Southwest Airlines (its U.S. domestic partner), Volaris, which is currently second to Aeromexico in Mexico, should continue its success.

While currently the international route map is developing, if you happen to be in a market and see one of their ads, you should check out their website and find some very competitive rates.

Internet Use in Mexico

According to a study prepared by MillwardBrown,  a marketing and brand research agency, (part of of Kantar, the information and consultancy division of WPP), the average internet usage in Mexico increased one hour from 2009 to 2010. The research was based on 1,292 interviews.

The biggest jump was in teenagers’ internet usage, which jumped from 3.1 to 3.9 hours for those ages 12-18. Higher demand is the main factor associated with this increase. There has been an increase of Internet infrastructure in Mexico, in metropolitan areas and more internet cafes in medium-sized to small towns (in every corner of main streets and plazas, at least).

In terms of marketing, these numbers mean a great opportunity for ALL businesses.  Advertisers will have to create a smart digital strategy that will call and keep the attention of young web surfers in Mexico. It will be interesting to see new cyber strategies from companies and agencies. I say, know your surfer, be creative and prepare for more hours of internet viewing in 2011!

Rafa Nadal

According to the Italian sports publication La Gazzetta dello Sport, Rafael Nadal, the number one ranked tennis player in the ATP, will be the new face of Armani for their Spring-Summer 2011 line of underwear and jeans. Rafa has already commented on his Facebook page that he has been posing in Mallorca for the ads.

The Spanish tennis player is taking a cue from other world-famous athletes, like the Portuguese soccer player Cristiano Ronaldo and David Beckham, who starred in a high-profile Armani campaign along with his wife Victoria. The campaign, which sees the light of day, next February, will project Nadal’s image on billboards at train stations and airports of the major world cities.

Ana de la Reguera for Kahlua

Ad location: National television and YouTube

Medium: Video

Brand: Kahlua

Overall Grade: A

Quick Review: Did you know that Kahlua comes from the Mexican state of Veracruz? I didn’t know that before the most recent TV commercial.  So give it ten gold stars for educational value.  Also, did you know they speak Spanish in Veracruz?  Ok, if you didn’t, Mexican film actress Ana de la Reguera tells you, pronouncing some Spanish words in a very “intriguing” way, and proving that the name “Roberto” is much more sultry than plain old “Robert”.

From the opening shot of Ana de la Reguera (girlfriend of Univision reporter Jorge Ramos) wearing large gold hoop earrings and a stunning green dress, walking through an open-air market, to the last shot of her raising her glass of kahlua with others as a flashbulb is flashed, this commercial grabs your attention and is entertaining through and through.  Yes, if you know Spanish it seems silly that some words like “shoes” and “stapler” would be appealing- but let’s face it, “zapatos” and “engrapadora” sound much more appealing (this was the first time I have heard “engrapadora” instead of “grapadora”, but I understand that both words are equally used).  This ad seems to be part of a trend in silly, over the top messages delivered by attractive spokespeople (see: Old Spice Guy).  And it works.

I like this trend towards ads that manage, in 30 seconds, to make you laugh and reconsider an old brand in a whole new light.  Sipping on kahlua as a way of feeling like you’re on the shores of Mexico?  It’s a smart move.  And I also like that the ad targets the general market with the use of a Latina actress, speaking Spanish mixed with English, in a Mexican setting.  As I said, to Spanish-speakers there is little novelty to the “exotic” words pronounced by de la Reguera, but her beauty can appeal to all audiences.  Well done, Kahlua.  Delicioso.

Visit Mexico

On August 28 of this year, Nuevo Grupo Aeronautico (NGA) suspended all Mexicana Airlines operations due to financial insolvency and the failure of negotiations that could have helped them transition to a new acquisition or transfer. The group of companies includes: Compania Mexicana de Aviacion (CMA), MexicanaClick and MexicanaLink.

At the international level, there is a tremendous opportunity for major airlines, including Volaris, Alaska Airlines, and Continental Airlines, among others, to pick up the traffic of travelers that were left without options for getting to Mexico.  At the national Level, AeroMexico, Interjet and Volaris are expected to cover most national routes within Mexico.

The challenge for these airlines will be how to reach out to these travelers. How can they build their brand name and trust for the traveler to Mexico? In my opinion, the most popular way to shop for airline tickets is the internet. Whatever airline comes up with the most effective digital campaign will definitely be the most successful of all.

Private

“Private” is a series produced by Sony, Spanish department store El Corte Inglés and the agency MPG.  It’s based on the saga of novels of the same name by Kate Brian. The series, just like the books,  tells the story of young scholarship student Reed Brennan to fit in at an exclusive all-girl boarding school where mysterious deaths occur.

According to José Luis López de Ayala, Director of Google’s Agency Division, “Private” represents YouTube Spain’s first foray into consumer entertainment via TV production.  López de Ayala considers initiatives like “Private” to offer “new opportunities for users to enjoy audiovisual content in different formats and multiple platforms.”

Promotion for the series will include some of YouTube’s most notorious ad formats, like the “autopromos” on the main page, in addition to advertising on social networks.

The series will be available beginning on October 25th on the “Private” channel on YouTube, and can also be viewed starting on November 1st on andy of the three channels owned by Sony Pictures Television in Spain: Animax, AXN and Sony TV.

Amazon

Amazon is once again making headlines in Spain’s business pages, since just a few days ago it announced the purchase of the Spanish company  BuyVip. BuyVip is an online retailer that offers brand name clothing at reduced prices.

Now Amazon once again has its sights on the Spanish market, and now the shipping costs from Amazon UK to Spain will be free.  In addition to Spain, this initiative has launched in the following European countries: Italy, Norway, Greece, Poland, Belgium, Luxemburg, The Netherlands, San Marino, Sweden, Portugal and Denmark.

Businesses in Spain that run operations that are similar to Amazon may start to tremble with fear. In any case, we’ll have to wait to see the response from the publishing world and distribution in general before the arrival of the giant from the West.  The choking regulation of book prices in Spain- where discounts are barely permitted, for the protection of mom and pop bookstores- could simply be trying to stem a growing and inevitable tide.

Mexican Americans love the "Tri"

In the U.S., soccer and the World Cup have their detractors- making comparisons of watching the sport to watching grass grow, for example. Yet advertisers have shown interest, and in many cases are being rewarded by a U.S. audience that is now tuning in.

According to a recent article in the Wall Street Journal, 30 seconds of commercial time for the World Cup finals is costing roughly $250,000, compared to $100,000 for the NHL’s Stanley Cup Final- a steal compared to the Super Bowl’s roughly $3 million for a 30 second spot. Ad executives are jumping into the fray due to the increasing diversity of the U.S. audience, and specifically the ability to reach U.S. Hispanics.

Previously we have discussed the soccer advertising rivalry of Adidas, Puma and Nike, although many other traditional advertisers are involved with World Cup South Africa 2010, including Budweiser, Samsung, Allstate and Sony, just to name a few. According to Nielsen, this ad from Hyundai is making a very strong showing:

In advertising, just as in every sport, there are winners and losers.  While Hyundai is scoring with the “Die Hard” commercial shown above, they decided to pull an earlier ad showing an Argentine church with stained glass depicting a soccer ball and worshippers receiving slices of pizza instead of traditional communion, due to complaints from the Catholic church and others claiming the ad was insensitive.

Overall, advertisers have welcomed the World Cup; a big reason is their recognition of the importance of the Hispanic market and overall diversity of the U.S. market. This is a boon for an advertising industry that is coming off one of the worst years ever. With forecasts from ZenithOptimedia expecting global ad spending this year to grow 2.2% to $456 billion (which is $1.2 billion more than it would have been without the World Cup), there is reason for those agencies focusing on diversity to be encouraged.

Go U.S.!

The debate always continues for the countries that decide to host major sporting events, such as the Olympics or World Cup, as to overall long-term value to the country.  For countries such as Chile, who qualified for the World Cup for the first time since 1998, the spending on jerseys, televisions and other products present an immediate boost to the economy.

In terms of advertising, the final numbers will be very interesting, and estimates have companies spending more than a billion dollars to promote their products at the World Cup.  In the U.S., we are already seeing some excellent ads from the retail side (Nike, Puma, Adidas).

However, there is an economic downside to the World Cup that will be seen on a global level- that of the loss of worker productivity.  While in the U.S. the effect will most likely be less than that of NCAA Basketball’s March Madness, you can certainly expect a significant loss of productivity from the fans of all teams involved in the World Cup who will be setting up their brackets at ESPN, or who may be just a little less focused than usual when their team is playing.

According to a recent article in U.S. News and  World Report, the World Cup will likely cost American companies 10 minutes of productivity a day for 21 days, which is estimated to be about $121.7 million in lost productivity in the U.S.    In other countries, the figures are much higher, with the British economy forecasts estimating a cost of $7.36 billion. While I haven’t yet seen calculations for countries such as Brazil, Italy, Mexico and Chile, I’m sure the costs will be staggering as well.

From a business perspective, it is just good business to know the World Cup schedule, so that if you need to call on a company in Mexico on game day, you’ll know to wait until after the game is over before calling.  If you are happy about a U.S. win over England (hopefully), you may want to keep the gloating to a minimum when speaking with a client who is English.

So check your local World Cup viewing guides such as this one for San Francisco, download the appropriate app for your phone, pick up your team’s jersey at Nike Online,  set up your office pool, work on your fake cough, and of course  get to bed early as the games are at odd hours (all South Africa time).  For those who are even a bit more daring there is of course numerous online gaming options such as this one

Write The Future

Slate.com’s Seth Stevenson regularly reviews ads for the site’s Ad Report Card feature, and the reviews are often a chance to dissect why an awful ad is so awful. Yet he gave a glowing review to Nike’s now famous World Cup ad, giving it an A+.  Reading his review, I learned a few things about the ad I hadn’t known before, like that the cheesy Italian TV show that Fabiano Cannavaro appears on is hosted by “Italy’s Elvis”, Bobby Solo; that the billboard above Wayne Rooney’s trailer is a parody of one he appeared in back in his native England, which was a bit contorversial; and that the whole cinematic spectacle was directed by Oscar-nominated Mexican director Alejandro Gonzalez Inarritu.  The video can be viewed again here.