Wednesday, April 4, 2007

The Connection: Press Coverage and Buzz

There is most definitely a connection between what people are talking about and the latest news coverage. Local and national news outlets give individuals a sense of what is going on in the community, the nation and the world. Although it seems that media consumers are becoming more savvy and critical, they still trust and depend upon the news hour , the local paper, etc. that they patronize to give them truthful, unbiased information. Therefore, topics of discussion in the news become topics of discussion on the street; this discussion is the payoff that press releases seek and that show sponsors desire.

A brilliant example of the buzz power of the news media deals with the story run on the health benefits of red wine. An article in the Chicago Tribune from about a week ago states that since the 60 minutes story on Red Wine was aired in the early 90s, red wine figures have been on a "healthy roll". And in November 2006, after Harvard released to the press that the reservatol in wines has health benefits, red wine sales jumped by 8% in four weeks. Furthermore, red wine, that typically trailed behind white wine, has now surpassed white in sales as result of its upwards climb since right after October 2006. According to an article in Marketing Daily, blush wines have actually decreased in sales. This same article says that the newest figures from the Neilson Company appear to show a direct link between the the coverage of the red wine health news and volume sales for that type of wine.

Danny Brager, vice president of client service for ACNielsen's Beverage Alcohol Team, said that the marketing efforts of the wine industry have really been a huge factor in increasing sales. Box wines are on the rise by 40% at the same time that many consumers, based on the Neilson data, are also favoring more expensive brands.

But, the point here is that there is definitely a connection between news coverage, particularly television news coverage and creating buzz. It is a powerful medium that carries a great deal of weight. That is why many companies jump at the chance to be sponsors, occasionally putting news programs under pressure to cover or not cover certain stories, for example. The Line Between News and Sales, is a compelling compilation of guidelines that some news station executives put together with the support of Newslab and the Committee for Concerned Journalists. This must mean, unfortunately, that broadcast journalists have folded under pressure once or twice, and that the "line" has been crossed before.

In no way am I insinuating that the wine industry paid for the news coverage previously discussed, but it is a perfect illustration of how news carries and translates to sales.

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