Pedaling in place

Advertising is often a hit and miss proposition. Some ads generate tremendous buzz and resonate with audiences, while others miss the mark altogether. That being said, I have to say I am a little surprised at the backlash Peloton is getting on their latest TV commercial.

The commercial begins with a young women whose spouse/partner surprises her with a Pelton bike on Christmas morning. She then chronicles her yearlong fitness journey on her phone and makes a video diary that she plays the following Christmas.

So what’s the problem? Many people (I assume they are not BOTS or the Russians) on social media are blasting the ad for using a thin, young women who apparently does not look like she need to exercise. Some have gone so far as saying the ad had a dystopia vibe and brought visions of a horror film.

While criticizing an ad is not uncommon, the fact that the company’s stock lost 9% of its value in one day will certainly make people in the corner office take notice. A representative for Peloton released a statement to CNBC, stating that while they “were disappointed in how some have misinterpreted this commercial,” they were also grateful to their existing community.

One of the problems Peloton faces is that their “existing community” is pretty small. The bikes are really expensive. The basic package runs $2,245 with membership costing $39 a month and you need to figure out where it fits in your homes décor.

The ad missed the mark, not on the messaging, but the delivery. The women appears terrified at times and it feels like she is being forced to ride. Perhaps if the spouse/partner joined in and made it a fun, family thing, it would have gone over better.

The whole thing comes across as snobbish and arrogant, but then that’s how I picture the people that own one.

Is he really running?

Michael Bloomberg has filed to be a presidential candidate, but does that mean he wants to be in the Oval Office?

CNBC is reporting that Bloomberg has purchased a whopping $57 million on TV ads, outspending almost every other Democratic candidate on TV and digital ads since he entered the race just over a week ago (billionaire Tom Steyer, has spent a little over $60 million since July).

Advertising Analytics, a data company who tracks spending, reports Bloomberg has paid over $6 million on national TV spots, plus $3 million in local ads focused on the New York and Los Angeles markets, and over $4 million on commercials airing in Texas.

That being said, Bloomberg is not participating in the Iowa caucuses and is not on the ballot in some of the other early states (New Hampshire, South Carolina and Nevada).

So what gives?

There has been speculation that Bloomberg is not interested in being president, but wants to ensure Trump is a one-term president and is running ads that are critical of his term in office. So why file and be a candidate?

Three words…Lowest Unit Rate.

By law, federal candidates are entitled to the lowest rates in the “class” of time they purchase (this only applies in political protection periods) thanks to Communications Act of 1934. The math can get a little complicated, but the bottom line is that candidates running for federal office are entitled to buy advertising at lower rates. By filing as a candidate, Bloomberg has access to purchase advertising at these rates which extends his buying power.

This also puts pressure on the Republican Party to keep up with the spending taking place. Advertising Analytics tweeted this graph Dec. 2, 2019 showing a wide disparity in spending.

There is still a long way to go, but it will be interesting to see how much of a candidate Bloomberg will be.