Kmart & Draftfcb: The Viral Dynamic Duo

In 2007, Kmart switched its $740 million account from Grey New York to Draftfcb Chicago and even after a creative review this year, the two remained partners. Draftfcb is responsible for most of Kmart’s viral videos this past year which have contributed to the growth of its Shop Your Way membership program.

Though the company has experienced losses, Eddie Lampert, Sears Holdings’ Chairman and Chief Executive Officer, spoke highly of the increase in Shop Your Way participation.

“We made meaningful progress this quarter [Q2] in our transformation to a member-centric company. Shop Your Way members represented over 65% of our sales and they redeemed rewards points at a significantly higher rate than last year,” commented Lampert. “While the increase in Shop Your Way promotional activity and member redemptions resulted in a meaningful increase in our costs, it demonstrates that our members are deepening their engagement with our program which will allow us to further accelerate our transformation.”

Draftfcb has generated this engagement through creative viral videos that have earned millions of YouTube views and social shares. Kmart’s most popular video “Ship My Pants” depends on some clever, if not adolescent word play.

This video has racked up almost 20 million views and two million social shares. In the same fashion, “Big Gas Savings” uses word play to cater to the humor-loving public. It earned six million YouTube views and 378,000 social shares.

The next heavy-hitter campaign focused on “Back to School” clothes and Kmart’s free Layaway program for Shop Your Way members. Featuring an original, Kmart-related rap song, “My Limo” is the company’s third most popular video with 2.7 million YouTube views and 52,000 social shares.

Kmart used “Yo Mama” jokes in its next spot, but kept the tone positive as the playground kids complement each other’s’ mothers for purchasing such awesome apparel. It has received 2.3 million YouTube views and 73,000 YouTube views.

Draftfcb is putting Kmart’s advertising dollars to good use on original, engaging content that is driving growth for the company’s membership program. Surprisingly, the agency shows no signs of slowing down—it produces a constant stream of viral videos for Kmart. In the past few weeks, Kmart released two more videos that have great viral potential. “Boardroom” and ‘Show Your Joe” have appeared on prominent advertising sites and attracted significant viewership.

“Boardroom,” posted below, has generated over 400,000 YouTube views in just under two weeks.

“Show Your Joe” launched three days ago and has already been featured on Adweek and MediaPost. It currently has 76,000 YouTube views, but the number is still rising.

Draftfcb and Kmart have become a viral dream team, releasing a slew of witty, humorous video content for television and online audiences. Though the company may not be seeing results when it comes to total revenue, the spots have bolstered Kmart’s Shop Your Way membership program which engages customers on a deeper level.

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