Reference no: EM132264948

Case Problem Marketing:

Scripps Networks Interactive: An Expert at Connecting Advertisers with Programming

Television advertisers have faced challenges in the past several years. People tend to watch fewer television shows at the time of airing or choose to watch them on Internet platforms such as Netflix or Hulu. The use of digital video recorders (DVR) has also contributed to this challenge as viewers can fast forward through commercials while watching their favorite shows. Scripps Networks Interactive, parent company to Food Network, HGTV, Travel Channel, DIY Network, Cooking Channel, and Great American Country, has found a way around this issue through product placement and integration, use of social media platforms, and promotion.

Scripps Networks Interactive is unique in that their programming appeals to similar target markets with similar interests. The director of Digital Media and Database Marketing for Scripps Networks Interactive states, “Our programming lends itself so well to speaking to lifestyle and what people are passionate and interested in, and I think our marketing communications strategy is a natural extension of that.” This presents a strong opportunity for gaining real results through advertising. At the same time, these promotional initiatives do not always seem like advertising to viewers. One way this is accomplished is through cross-promotional activities across networks. For example, while watching an episode of Paula’s Home Cooking on the Food Network, viewers would see a commercial for a Design Star episode on HGTV featuring Paula Deen. (In 2013, Paula Deen’s contract was not renewed after a racial slur controversy, demonstrating the downside of using celebrity advertisers for spokespeople.) These marketing promotions appear to be natural extensions of the show rather than advertising that is deemed intrusive.

Product placement and integration works well with the lifestyle content of the company’s programming because viewers are interested in the content being provided. In most cases, “our audiences…actually look to our advertisers’ products for ideas and as resources,” states the Senior Vice President of Interactive Ad Sales Marketing for Scripps. This creates an opportunity for the company to build strong relationships with advertisers. Advertisers seek out Scripps Networks not only for placement in their shows but also for integration into their social media space. The integration of television product placement and social media advertising has been a benefit for both parties. The Senior Vice President of Interactive Ad Sales Marketing explains, “If we tie a specific advertiser to Iron Chef or to Chopped, then there’s opportunities for them to be driven from on-air to say ‘check out the recipes from this specific episode online at foodnetwork.com’.” Despite the culinary nature of these shows, the advertising platform Scripps has established attracts other vendors, including automobile manufacturers. Lexus, for example, was featured as the car driven by Restaurant Impossible’s host Robert Irvine. These clips were then shown on the show’s webpage, packaged as a Lexus advertisement.

Scripps has also found a way to integrate product placement into brick-and-mortar locations as well as on digital space. After Food Network host Guy Fieri won recognition as “The Next Food Network Star,” he partnered with TGI Fridays in an endorsement agreement. Fieri hosted a recipe showdown on the Food Network, and TGI Fridays promoted these recipes in their restaurants. Partnerships between chefs and brands have also been developed to create co-branded products. Alex Guarnaschelli, a judge on Chopped, was approached by Fisher Nuts to share recipes containing their product. These advertisements were shown on both the Food Network and the Cooking Channel.

Another benefit of this integration is that the company and the advertiser become cooperative marketing partners, where both are working from different directions to promote both the show and the product simultaneously. The General Manager of New Business for the Food Network explains an example of this kind of relationship with Kohl’s and Worst Cooks in America: “Kohl’s is advertising in it—they are sponsoring it. They are putting things on Pinterest or tweeting. We are doing the same thing in the context of the character, so you get both this top-down and bottom-up thing coming together.”

Promotions also work well on this platform. A digital marketer for Scripps Networks describes the effectiveness of promotions. “What makes it more than just a giveaway for money is tying in hooks that engage people to not only sign up to a sweepstakes to win a trip…but making it part of the entertainment experience.” For example, the Food Network ran a promotion for its show The Great Food Truck Race, where people were asked to go to the Facebook page and nominate or vote for their favorite local food truck. The winners would then be featured on the show’s website. This event generated buzz and brought attention to the food trucks around the country that were being nominated. The nominees were featured on commercials aired during the show, where they asked viewers to vote for them online. The fans, businesses, and the show were all involved in generating buzz and promoting one another, creating an effect that is advantageous to all parties.footstar.png

Questions for Discussion

Why is the Food Network such an important venue for many advertisers?

Describe some of the ways that Scripps uses product placement on the Food Network.

Why do you think even non-food advertisers are attracted to the Food Network?