Bermuda and Its Advertising Industry

Megan Handerhan

COM 4040

Dr. Aycock

November 29, 2012

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Bermuda and Its Advertising Industry

Nestled off the coast of the Carolinas is the island of Bermuda. The island attracts

thousands of visitors each year and thousands more call the island their home. Its attractiveness

is a result of its famous pink sand beaches and clear blue water. Not only is the island attractive

to vacation-goers, but it also attracts international business with its prosperous economy.

Bermuda’s healthy economy is a result of a booming tourism and offshore financing industry. As

a result of a successful tourism industry, the island has a successful advertising industry that

keeps travelers visiting. Advertising on the island is mainly focused on tourism and public health

awareness while focusing on print media. The island’s British heritage and healthy economy

gives way to a successful advertising industry that focuses on tourism and one that has a bright

future.

Spaniard Juan de Bermuedez first discovered the small island of Bermuda in 1505. With

only a sightseeing trip in mind and no effort to claim the island as Spanish territory, colonization

did not begin then. It was not until one hundred years later in 1609 that the island was first

settled by a group of shipwrecked Englishmen bound for Virginia. Sir George Somers set sail

from England on the Sea Venture with a goal of settling in Jamestown, Virginia. Unfortunately,

the ship was caught in a storm and the group was forced to land on what is now known as

Bermuda. Using the remainders of the wrecked ship, the crew set sail for Jamestown while

leaving three settlers behind. Others later joined these settlers and a British colony was born

(Morison, 1974). Bermuda’s first capital, the Town of St. George, is currently the oldest

inhabited English town in America (“Bermuda”, 2007). Because of Bermuda’s English founders

and rich British heritage, the country is still considered an overseas territory of the United

Kingdom ("The world factbook," 2011).

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With Bermuda’s British background, it is no surprise the government system is a scaled

down version of Westminster. Bermuda practices laissez-faire and is dedicated to private

enterprise. The island’s political and economic elite is referred to the Board of Directors and this

administration works hand in hand with the government to support the tourism industry and

foreign multinationals. According to Kersell, education is the only area which government looks

to advance human resources (1985). While governing as an overseas territory of the United

Kingdom, Bermuda is not immune to talk of independence.

In the mid 1960s, talk of independence was popular throughout the island. The

Progressive Labour Party (PLP) fueled the movement and pushed for independence from British

rule. In 1977 the United Bermuda Party (UBP) created a 54 page Green Paper on Independence

for Bermuda. However, many of the UBP members were opposed to the idea of independence.

On the other hand, the PLP argued that democracy and colonialism is incompatible. Throughout

the 1980s there was a wide range of support for independence but nothing was put to test at a

referendum. It was not until February of 1995 that a 24 page Green Paper on The Implications of

Independence for Bermuda was arranged and brought to referendum. Overall, advertisements for

opposition of independence flooded the local media and Bermuda is still considered an overseas

self-governing territory of the United Kingdom (Connell, 1997). Talk of independence is

currently on the back burner of the country’s to-do list.

Bermuda’s economic situation is a prosperous one with their GDP reaching $4.5 billion

and a per capita income rank of number four. The island’s economic history is a somewhat

smooth one. Throughout the 17th century, English settlers started whaling, shipbuilding and

tobacco growing. This is also when slaves were being introduced to Bermuda from the West

Indies. In the 18th century, sailors, cedar and salt fueled the economy. Bermuda became an

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agricultural economy in the 19th century and at the start of the 20th century, tourism became the

dominant sector (Connell, 1997). Bermuda’s current successful economy is based on businesses

providing financial services for international business and luxury facilities for tourists. Currently,

their main industry is banking with tourism not far behind. The island exports $16 million while

importing $940 million. Its imports are mostly food and capital equipment. The currency

exchange rate for the Bermudian dollar to the US dollar is 1:1. Overall, the Bermudian economy

is focused on the services sector, with tourism and banking crucial to a healthy economy ("The

world factbook," 2011).

This isolated island has a fairly young history when it comes to mass media

communications. In 1771 the Bermuda House of Assembly encouraged a press in the colony and

communicated this need to London. Almost ten years later in 1784, the Bermuda Gazette and

Weekly Advertiser began their first run (Lent, 1977). Up until the 1990s, British Government had

some control over the mass communication industry. External telecommunications and

intercontinental cable television are provided by the United Kingdom based company Cable and

Wireless. Throughout the 90s, independent Bermudian companies worked to gain a foothold in

the industry. This lead to the licensing of TeleBermuda International and commercial operations

began in 1996. Following soon after, the Bermuda Broadcasting Company managed two

commercial television stations and five radio stations (“Transport and communications”, 1996).

Currently, Bermuda has a well-established mass communications system in place. In

2010 there were 57, 800 main telephone lines and 88,200 cell phone subscriptions. There are

three television stations in operation with cable and satellite services available. Ten radio stations

are broadcasting and there are 54,000 Internet users ("The world factbook," 2011). The leading

company in Internet services is currently Logic Communications. The company is a subsidiary of

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KeyTech Inc., which in turn owns the Bermuda Telephone Company. Logic Communications

recently signed a deal with Voice Mobility International, Inc. This partnership means that

customers will be allowed to receive all of their phone, cell, and fax calls through a single phone

number and receive all of their messages in just one mailbox (“U.S. firm”, 2000). As a result of

this partnership, Bermuda is now seen as one of the leaders in mass communication technologies.

The advertising industry in Bermuda began take off when the tourism industry began to

flourish during the Victorian age (B, 1949). Before this time, Bermuda’s main industry was

agriculture but once refrigeration was invented, California took the business (Royle, 1995).

Before 1900, places with warm climates did not attract many tourists due to previous

promotional materials that linked warm weather to illness and “backward dark-skinned peoples”.

However, it was between the Victorian age of 1880 and 1940 that warm climates, one like

Bermuda’s, were marketed as an elixir for colder weather (Cocks, 2007). Promotion became a

necessity for Bermuda in order for travelers to choose this island instead of the other tropical

locations. When considering local Bermudian business advertising, in the early 1900s it was very

cut and dry. Market research and merchandising was on the backburner to straight advertising

placement. Since local businesses were very small and inexperienced, they advertised in the two

newspapers at the time, The Mid Ocean News and the Royal Gazette. These newspapers provided

their own advertising departments. Because of this, individuality was lost and advertising was

ineffective throughout the early 1900s (“Advertising”, 1959).

The current state of Bermuda’s advertising industry is somewhat small and is focused

mainly on tourism as well as public health awareness. Ethical issues are also evident in some

Bermudian advertising and should be analyzed further in order to avoid them in the future. More

often than not, local advertisers seek out advertising from international agencies (“Advertising”,

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1959). There are a few advertising industries operating on the island; however, there are people

who are fighting to keep advertising dollars on the island.

Tourism is vital to a healthy Bermudian economy and it is even more important to keep

the travel destination in the minds of travelers. Bermuda spends $10 million on advertising

yearly. There are a few examples where advertising agencies take hold of the Bermuda image

and mold it into a vacation hot spot. One example of Bermudian advertising at work is during a

2002 campaign by Arnold, NY. The island experienced a declining number of visitors and the

Tourism Department was looking to increase their numbers. The advertising agency worked to

target high-income travelers from eastern and southeastern United States. The new

advertisements focused on “timeless glamour and charm” to lure travelers to the island. Looking

at Image 1, it is obvious that the campaign tried to highlight the nightlife and the beautiful

beaches of Bermuda. The campaign started with two television spots followed by print a few

months later to coincide with the television spots (Van der pool & Rountree, 2003).

The Bermuda Department of Tourism also reached out to a marketing agency to advertise

their island suited for specific customers. The agency, Euro RSCG 4D created custom brochures

for each prospective tourist. The agency contracted APT Digital Marketing Solutions to use eight

data elements to create a twenty six page brochure that represents something that the reader is

actually interested in. Using the data sets, the brochures can be customized into nine million

different configurations. They are based on twenty two primary interest categories, eighteen sub

interest categories, five events, eleven gateway cities, twenty two dining choices and nineteen

hotel options (Grapetine, 2004). These brochures are just an example of the Bermuda

Department of Tourism advertising for specific target customers and using outside agencies to

appeal to a mass consumer target in the United States.

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The Bermuda Department of Tourism also reached out to potential travelers by using the

Internet and hiring their global digital marketing agency of record, iCrossing. The agency, based

out of Scottsdale, Arizona, launched gotobermuda.com. Their main goal was to reflect the

“Bermuda Experience” online. Since 2008, iCrossing not only created the successful and popular

website, but the agency also provides search engine optimization, paid search, display

advertising, research, and social media for the Department of Tourism (“iCrossing, 2011).

Tourism is a vital aspect to the Bermudian economy and the department advertises heavily by

using overseas agencies to reach a wide range of consumers.

Bermuda advertising also focuses on public health awareness. Covidien Ltd, a Bermuda-

based global healthcare product company, ran a campaign during Prostate Awareness Month in

2008. Pauline Girling, marketing and PR Director of Bermuda Cancer and Health Centre,

launched the campaign that spanned over print, television, radio and included a free public

seminar. The campaign was wide-reaching and was advertised in local daily and weekly

newspapers. Public service information bulletins and talk show interviews were broadcasted over

local radio. Girling also created a partnership between the global healthcare product company

and a local Bermudian business, Coopers Men Store by hosting two special evening events to

promote prostate health (“Bermuda cancer”, 2008). This campaign is an example of local

Bermudian advertising done by an in house agency of Bermuda Cancer and Health Centre.

Bermudian advertising not only focuses on tourism, but also the current inhabitants of the island.

When looking at which medium Bermuda advertising favors, it is evident that print takes

the lead. The island’s tourism advertising is relying heavily on print media instead of television

advertising due to a failed campaign from DDB Needham Worldwide, New York. The campaign

failed to generate visits from tourists that the Department of Tourism was hoping for with only

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3,000 more Americans, a meager 2% increase. The publications that carry these new

advertisements are fashion and lifestyle oriented, including Elle, Town & Country, Forbes,

National Geographic and Sports Illustrated. The print ads have sport-oriented themes and

highlight the island’s proximity to the United States. With an emphasis on print, the campaign

hopes to remove the “staid and stuffy” image of Bermuda and reimage the island as an affordable

vacation spot (Zbar, 2007).

The current state of the advertising industry in Bermuda is not immune to a few ethical

issues. Misleading campaigns, redirection of overseas spending, and embezzlement are some

issues that have been brought to the attention of Bermudians. Arnold Worldwide, based out of

New York City, ran a campaign in 2003 that used photographs from other tropical locations to

promote travel to Bermuda. Image 2 provides an example. The advertisement shows a woman in

a hat with a Hawaiian beach in the background. Some say that the advertisement is a

misrepresentation of the island while others claim it is not harmful or misleading. Bermuda’s

Minister of Tourism, Renee Webb claims it was, “intended to create a mood.” The ethical issue

of using misleading photographs can be a problem for Bermudian advertising, however no one

pulled the advertisements (O’Connell, 2003).

Another ethical dilemma is the constant reoccurrence of overseas companies selling

advertising and taking more than $2 million out of the Bermudian economy. A publishing

division was created within the Bermuda Chamber of Commerce to help stop this business

activity. The number one concern is to stop overseas publishers selling advertising to local

businesses and taking 100 per cent of the revenue. The members of the division will work

independently to lobby Government and to win publishing contracts that are currently being

awarded to overseas publishers. Ian Coles, the spokesperson for the division, knows about the

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multitude of overseas publications that are supported by the Government and the opportunities

that are being lost to the local publishing houses. The division is in place in order for local

publishers to get a shot at these advertising dollars (Burgess, 2012). This may be a step towards

local businesses using local advertising agencies instead of going overseas for promotional help.

The final example of a current ethical dilemma involving Bermuda advertising is in direct

relation with the Bermudan government and an ad agency. Michigan based advertising agency,

GlobalHue, was Bermuda’s tourism agency of record in 2006. That year the agency won a $28

million two year contract. Allegedly, the contract was a repayment of a favor owed by Bermuda

Premier Ewart Brown to Al Sharpton. During a 2009 audit of GlobalHue it was found that the

agency and its media buying partner, Cornerstone, overbilled the Bermudian government by $1.8

million. It is also said that the agency made “dubious ad buys” with a $200,000 purchase on an

unwatched gospel music television channel and only $44,983 in bridal magazines. Suspiciously

enough, just a few weeks after Brown’s term of office came to an end, GlobalHue decided not to

renew their contract (Edwards, 2011). This ethical dilemma involving Bermudian advertising is

something to be aware of. If Bermuda is looking to become a tourist hot spot, it is extremely

important for their tourism department to be completely transparent with the advertising agency

of record. Once ethical issues start becoming apparent, it will be hard for Bermuda to gain

credibility in the advertising world.

Currently, the Department of Tourism is reaching out to a new target market in order to

increase traffic to the island. In 2005, the Department introduced two campaigns to help

rejuvenate the slow January- March period. The campaign was put together in hopes of

rebranding the golf and spa season and to seek out African American travelers. With a $10

million budget, the campaign targeted the wealthy, ethnic, and activity oriented. An example of

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an advertisement is an African American woman in a pool with her eyes closed with images of

chocolate covered strawberries and tropical drinks with the slogan, “the official destination of

chill” (Beirne, 2005). By reassessing the target market, the Department of Tourism hopes to

attract more visitors to the island.

The outlook of the advertising industry in Bermuda is looking to continue its focus on the

tourism industry while changing its target market and to start focusing on local advertising

agencies. With tourism being a vital part of the Bermuda economy, it is crucial to keep travelers

booking their flights and cruises to Bermuda. Given this, the focus of Bermuda advertising does

not look like it will be shifting focus. However, the way in which Bermuda reaches potential

visitors may change. As mentioned previously, campaigns are starting to target affluent African

Americans as potential visitors (Beirne, 2005). By continuing to target different market

segments, advertising efforts to increase the slow months of January-March may succeed. Also,

with the creation of the publishing division in the Bermuda Chamber of Commerce this may shift

focus from international advertising agencies to more local ones (Burgess, 2012). The branch is

fighting to keep advertising dollars within the island and if their efforts prove to be successful,

local advertising agencies will benefit from it.

Overall, Bermuda’s advertising industry is focused on revitalizing the island’s tourism

agency while keeping locals informed about health issues. The industry is not without some

ethical issues, but the issues are not immune to scrutiny. The future is promising for advertising

in Bermuda given the growth of the tourism industry and the focus of advertising dollars on the

island.

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(Van der pool) Image 1 Campaign highlights the beaches and nightlife of Bermuda.

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(O’Connell) Image 2 The print advertisement promotes Bermuda while using a model on a Hawaiian beach.

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Appendix

Bermudian Advertising Agencies • 3264 Group Address: Suite 560 48 Par-la-Ville Road Hamilton HM 11, Bermuda Phone number: (441) 297-3264 Website: www.3264.bm Contact: info@3264.bm • Aardvark Communications Ltd. Address: Chevron House 11 Church Street Hamilton, Bermuda Phone number: (441) 495-0361 Website: http://www.aardvark.bm/ Contact: Ben Fairn – Owner and Manager - ben@aardvark.bm • AAC Saatchi + Saatchi Address: 29 Front Street Hamilton, Bermuda Phone number: (441) 295-2626 Website: www.aac.bm Contact: Peter Hebberd – VP and General Manager – phebberd@aac.bm • AdVantage Address: Suite 206 Commerce Building 54 Reid Street Hamilton, Bermuda Phone number: (441) 295-6900 Website: www.advantage.bm Contact: Shelia Semos – Co Owner, President, Creative Director • Adworks Address: 18 Studio Lane Hamilton, Bermuda Phone number: (441) 292-0035 Website: www.adworks.bm Contact: Carole Havercroft – carole@adworks.bm • Cosmic, Ltd. Address: 13 Tumkins Lane 2nd Floor Island Satellite Building Pembroke HM 09, Bermuda

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Phone number (441) 292-8275 Website: www.cosmic-studio.com • Emedia Address: AS Cooper Building 7th Floor, 26 Reid Street Hamilton HM 11, Bermuda Phone number: (441) 236-2025 Website: www.emedia.bm Contact: Jennifer Ward – Owner, Managing Director • Insight Visual Communications Address: 63 Pitt's Bay Rd Hamilton HM08 Pembroke, Bermuda Phone number: (441) 292-3414 Website: www.insight.bm Contact: Hugh Murray-Mason • RBK Advertising and Design Address: John S Darrell Building First Floor 99 Front Street Hamilton HM12, Bermuda Phone number: (441) 296-2013 Website: www.rbk.bm Contact: Chris Fagg – Senior Production Manager • Strata G Advertising Address: PO Box HS 151 Harrington Sound, Bermuda Phone number: (441) 333-2341 Website: www.strata-g.bm Contact: Anna Laura Hocking – Managing Director • The Tofumedia Group Address: PO Box HM2677 Hamilton, Bermuda Phone number: (441) 234-0451 Website: www.tofumediagroup.com Contact: Lynwood Tuzo – CEO