Is comparative advertising a good strategy?

by John Ellett on February 2, 2010

You can’t watch television today without seeing Verizon touting that its map is better than AT&T’s. Or AT&T rebverizon v att Is comparative advertising a good strategy?utting with how much better its 3G network is. If you’ve read a major magazine lately you have probably seen GM compare its models to its leading competitors. Is this explicit comparative advertising a sound strategy? Based on my experience, I would say, yes, but with some caveats.

In the early ’90s, while at Dell, I was involved in starting a price war in the PC category. The advertising that supported the strategy was an explicit comparison of similarly featured Dell and Compaq products along with their respective list prices. Dell cost usually 30% – 50% less and the campaign caused quite a stir in the industry. It also caught the attention of buyers and helped the company grow from $500 million to $3 billion in a few years. It worked for Dell and it seems to be working for Verizon.

If you are considering this approach, I believe there are four things to keep in mind:

  1. Be the champion of the customer: The foundation of this approach should be based on how the comparison benefits the customer. Poor executions turn into shouting matches between competitors. Good ones endear the brand to the customers for whom they are fighting.
  2. Compare relevant and important information: Make sure the point of comparison really matters to customers. Southwest does this well with its bags fly free campaign. But I’ve also seen tech companies compare features that are low on the priority list for buyers and the brand comes off as a grouchy engineer trying to prove a meaningless point.
  3. Take the edge off with humor: Some of the best comparative campaigns use humor to make their punch seem less offensive but still get the point across. The Mac v. PC guy campaign did this really well for a while. Verizon and Southwest are doing it well now. Chevy’s use of Howie Long? I’m not so sure.
  4. Let your customers make the case: This approach can be most effective, especially in the digital world. Reaching in-market buyers with content from fellow buyers can make a compelling case. Make sure it is authentic and not contrived or it will backfire.

So what are your favorite examples of great or awful comparative campaigns?

4 comments

{ 4 comments… read them below or add one }

Bob Roden February 2, 2010 at 5:41 pm

I couldn’t agree more. Customer/consumer focus must always be the primary lens through which such comparos are made, and if the consumer *thinks* there is a bit of a biting attitude in the ad (as I would say the Howie Long “truck” ad conveys), this is *not* a good thing. It’s interesting how many marketers tout features and benefits the consumer isn’t asking for and doesn’t care much about.

Andy February 3, 2010 at 1:43 pm

The GM “Howie” advert comparing Chevrolet and Honda products is particularly dismal in this regard. At the end of the commercial Howie openly mocks a Honda lawnmower, this is supposed to be the punchline of the piece.

Why does GM think showing a lawn mower is a NEGATIVE brand association for Honda? How is this even relevant? Honda lawn mowers are respected, garner a significant price premium over the competition, and have a reputation for being indestructible. Given GM’s reputation in the last 30 years, how do they think a GM lawnmower would be regarded? Honda’s positive brand image surrounding building small and efficient engines extends beyond cars to motorcycles, marine, and yes, even lawn mowers. *boggle*

Jody Gibson February 16, 2010 at 11:31 am

Is Southwest comparative, or more of a preemptive strategy? I’m not really aware of every airline’s policy on charging for bags, so it may preemptive, but it’s effective nonetheless. It seems any consumers just want straightforward, honest messages of value ( and research defends this) or with something clever thrown in there to hold their attention and gain interest. In my opinion, relevancy for the consumer (where s/he is at in the purchase cycle and what is the degree of brand loyalty for the product/service) is the biggest selling point for any ad.

I’d be shocked if HL and GM are making any sort of dent in Honda’s armor. Honda’s brand equity and positioning in the market seems a bit of a reach for GM. Toyota would have been a reasonable challenger in the comparative arena before all of its reliability issues popped up, but GM vs. Honda is a bit David vs. Goliath for me. (Yes, I must admit I own three Hondas.)

Lawnmowers May 17, 2010 at 10:56 pm

I liked this article quite a bit. What I enjoyed most was that the writing obviously comes from someone with a deep understanding of the field, much like being led by an experienced guide. I’ll look forward to more material like this in the near future. Honda Lawnmowers

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