PARIS HILTON RUCKUS EXPANDS CKE MARKETING PLANS
Web Sites Transformed Into Product Placement Entertainment Centers
AdAge.com, June 28, 2005

Extract:
"Boy toys fill virtual living room"
The newly launched home pages for the burger chains resemble the living room of a bachelor pad, where all things cool among young men are at their fingertips."
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“As anybody in the industry is well-aware now, the traditional broadcast advertising’s days are numbered,” Mr. Haley said. “Certainly in a four- to 10-year time frame the 30-second commercial will be very, very inefficient because of [digital] video recorders. Sometime over that multiyear period Web-based advertising is going to replace traditional broadcast.”

Cost for Web outweighs TV
As part of its marketing strategy, CKE is using Web advertising, but is also relying on creating "carrots" -– like the Paris Hilton spot -– so people come to the brands. The Web is still relatively small as a percent of the company’s overall marketing budget, but the production costs and cost per impression are far less than TV.

“For a fraction of our overall media budget, we can have a sizable Web presence,” Mr. Haley said. “But over the next four to 10 years that production and media budget will shift from traditional to nontraditional, where online advertising and promotion becomes our primary medium.”

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