Screens or Leans?

Is it a multi screen world?  Or is the issue really about leaning back versus leaning in?Interactive TV or multi screen interaction... which is our ad future?

Google/IPSOS/Sterling just released the latest look at screen activity and their info graphic reveals that 77% of the times that viewers watch TV they are using another screen at the same time.  49% report a smart phone and 34% report a pc/laptop.

At the same time, cable companies like my own (Comcast Spotlight) continue to find success on the TV screen itself with Interactive TV.  Using their remote consumers can navigate into additional information screens and/or video or request for more information (RFI) or even respond to polls. A 2011 IAB study shows very promising results with definitive brand lift and response rate.

Debate ensues regarding these two paths of interactivity are now available to the TV advertiser; multiple screen (TV plus other smartphone/pc/laptop/tablet) impact or just the TV screen itself.  Question is; which path offers advertisers the most potential? That answer may lie in the consumption experience of audience.

TV is often characterized as a “lean back” experience.  Picture the viewer relaxed, leaning back on the couch, feet up on the ottoman or coffee table with the remote in his/her outstretched hand. On the other hand the internet is more of a “lean in” media with the user pictured leaning forward, engaged in the screen as they micro manage the control of the screen.

Leaning back, or leaning in.  One screen or two screens? Both experiences are interactive.  Which is the best option going forward?

To be continued….

Virtual to augmented reality eye openers

Eye opening augmented reality - the future of ad inventory?The quickening speed of technology development adoption breeds constant speculation about the future of media.  Virtual to augmented reality is a likely trend given that the advertising business model reigns supreme.

First, consider virtual reality.  It’s a great match with our need to create more inventory to support the advertising revenue stream.  Most commonly connected with the creation of ad modules in mediated sports ( like billboards that appear on TV but not on the football field in reality), virtual reality ads can significantly multiply screen exposures.  Here’s a short example of virtual ads from ADvision – ranging from the subtle billboard style to the more ostentatious and invasive example of a beverage bottle erupting from center field.

Now fast forward to an anticipation of augmented reality that has gained momentum from Google’s Project Glass.  The development of these glasses brings into focus a world that increasingly could be augmented.   There are obviously vast implications of a world where people walk around in their own virtual shell.  One of them is  the use of this augmented reality as ad inventory.  Quoted in this NYT article William Brinker,  graduate director of computer science and software engineering department at Miami University in Oxford, Ohio notes  “…it’s also going to change real-world advertising, where companies can virtually place ads over other people’s ads…”  Or place ads and content where there is none in the real world.

This Fast Company article features a film that is as startling in its depiction of augmentation as it is illuminating regarding visual augmentation’s impact.

From virtual advertising to augmented advertising – technology and the permanence of the advertising business model mean we need to keep our eyes open!

Room for discussion:

Virtual reality is primarily being used in the world of sports.  What are some other entertainment applications?

Local TV Now!

Localism creates a strong climate for local original programmingEverywhere you turn TV and video original content is being produced – except locally. Local original programming still is dominated by news programming, business talk, and a smattering of sports.  Local original programming has the advantage of being more relevant to advertisers and the potential of more ad dollars from owning all the inventory to re-purposing the product via the internet.

Original content production appears to be the evolution for most every TV or video distribution channel.  National entities achieved the critical mass of audience necessary to underwrite the development of original programming either through anticipated advertising or subscription.

Live or time constrained programming such as sports and news is a staple for local TV as well as national cable franchises like CNN, Headline and ESPN.

For ad and subscriber supported cable channels their first non live programming efforts relied on the reruns of network programming as in the case of TBS or TNT or available music videos as in MTV.  Over time and against all odds  the TBS, USA and TNT cable channels have developed their own franchised original programming ranging from the Jersey Shores of MTV to The Closer of TNT.

Advertisers understand the strength of local market relevancy.  As a result focus on local markets continues to grow with CBS combining all radio and TV properties into one portal, AOL’s Patch working hyperlocal news and every app in the market integrating location-based targeting.  Mark Fratrik, VP BIA/Kelsey was quoted in Ad Age in (Nov 2010) as saying that the owners of local TV have discovered that “ they are local media companies, as opposed to TV stations,..”.

Now is the time to start a revolution in locally produced original programming – particularly in the top 30 markets where the audience size can capture ad dollars both on TV and online.

Room for discussion

What kinds of original programming could be produced locally? Brainstorm ideas, choose one, then take a shot at determining what the costs and expected returns could be.

Spotify is to TV as Engagement is to Interruption

The battle between interruption and engagement is being waged on the front line with Spotify on the leading edge.  Forbes quotes  Spotify’s Chief Revenue Officer, Jeff Levick, in a recent interview with Digiday:

Each TV hour has about 15 minutes of ads

“We don’t really want to offer just straight advertising. If our CEO had his way you wouldn’t see ads at all. The way we think about advertising on Spotify is communicating through content, whether that’s an audio experience, or a great app. That’s where we see the future of ads on Spotify – understanding the content itself in order to successfully message to consumers.”

Contrast that approach with the TV – the current king of ad revenue and time spent with American consumers.  According to Kantor media “… an average hour of monitored prime time network programming contained ten minutes, fifty five seconds (10:55) of in-show Brand Appearances and 14:20 of network commercial messages. The combined total of 25:15 of marketing content represents 42 percent of a prime-time hour.” (Kantar Media, 2010)

15 minutes an hour of advertising assault on their own fans.  No engagement there.  Contrast that to the approach taken by Spotify – the Reebok workout mix, the Coke partnership.  Spotify gets it and gives it back to their connected and engaged consumers. My bet is in the long run Spotify will be leading  ad  engagement  victory way into the future.

 

Room for discussion: How can TV content becoming infused with engagement by advertisers?  Select a show /channel and develop two strategies that combine potential advertisers with the content in a fashion that engages their fans.

Idol’s first decade-multi media /multi revenue stream

A lot has been said about the ratings decline of American Idol  over the years.  It seems there’s nothing we like more than a groundbreaking show than the demise of that show.  However, the is much to be said for the continuity of a franchise that has developed phenomenal  live, digital and social impact.  Here are some highlights of that impact from May of last year when the The Hollywood Reporter did a 10 year snapshot of  American Idol.American Idol's phenomenal revenue stream

Although the ratings are undeniable leading indicators, the American Idol franchise has done an impressive job of building out numerous revenue tentacles.  Can those tentacles of digital downloads, live concerts, merchandise, and more survive the decline of the mother ship program?  That remains to be seen.

Conan has last laugh with youthful social core

The "Young Mindset" details the Conan fan expectation

"Random absurdity" is just one of several distinct expectations of a Conan fan.

Despite his lagging numbers the late night TV ratings race TBS has renewed Conan’s contract – a move that makes a ton of sense in light of both a very young core audience and his strong social numbers. Conan’s young audience ensures growth over the long run.   According to the Wall Street Journal, TBS puts the media age of his audience at 32 years old – the youngest of all the late night shows.

Amazingly enough that same article notes; “Television executives say that Mr. O’Brien’s ratings problem lies in part with his niche appeal.” -showing an alarming lack of understanding of the strength of the niche programming in a super fragmented world.  The “Team Coco” brand embraces niche – and defines it clearly.   In a recent presentation that TBS made to our Point Park University students one particular slide (pictured here) stood out as an indicator of how well the Conan team knows and works to connect to their fan base.

Facebook numbers underscore the Conan youth and social media advantage. Conan blows away the top contenders at 1.8 million with Leno lagging at 408 thousand and Letterman at 319 thousandTeam Coco translates Conan’s brand online with a 24/7 presence that combines with the TV audience to bring an estimated 20 million people to their sponsors commercial views according to Turner as quoted in Ad Age article aptly entitle “Conan’s Ratings are Down, but He’s Huge Online”.

Conan O’Brien’s comedic path has had some unpredictable twists and turns but the clarity of his connection to his young socially network savvy market may be the differentiator that creates long-term success.

Wagging the video long tail

The recent release of Deloitte’s The State of Media Democracy”  underscores the speed of the long tail development in a vidVideo long tail of content variety and time flexibilityeo world increasingly dominated by digital.    Continually the data drives the point home that consumers are not shedding a particular channel as much as they are moving towards channels that provide a greater variety of content and flexibility of timing.

Phil Asmundson, vice chairman and U.S. media & telecommunications sector leader at Deloitte LLP notes: “Consumers may be watching fewer television shows and movies on TV, or reading fewer physical copies of books and newspapers, but they have not stopped consuming the content. They are simply watching or reading on different media or platforms.”

A look at digital content transformation from the perspective of the delivery channel charts a dramatically similar long tail progression.  Each new channel grows in strength by offering the consumer more in variety or time flexibility or both.

Flexibility translated into a more variety of content for consumers as a terrified TV industry quaked and then profited with the growth of cable and satellite delivery.  Unchained from the limitations of linear time DVD and Pay per View (PPV) found the next toe hold.  And finally, streaming video is the ultimate in offering the largest scope of content at the most convenient time for the consumer.

“The State of the Media Democracy” reports that streaming adoption is dramatic; “As recently as 2009, only 28 percent of Americans reported streaming a movie; today, 42 percent report streaming.”

While manufacturers battle to develop hardware and operating systems to feed the huge digital appetite, consumer’s speed of digital content adoption remains unchecked. All industry eyes are on this week’s Consumer Electronics Show may show us the next growing channel that will offer even more variety and deliver it whenever or wherever the consumer wants.

Room for Discussion

Each January  the Consumer Electronics Show (CES) showcases the latest greatest innovations in technology.  What will be the latest innovation to video?  Follow what’s going on at  The 2012 CES website .   Are there any game changing disrupters that you see will change the video landscape?

Penn State; It’s all about the money

The Penn State scandal has riveted the nation and the waves of impact are being felt from Happy Valley on out through the various channels of their prodigious football media network.  Discussing the revenue impact feels a bit disrespectful of the children involved, yet the money is likely what prompted the coverup to begin with. It's the money,  dummy.

The most immediate revenue impact came in the form of several advertisers/sponsors withdrawing from the ESPN broadcast of the Nebraska matchup and or on the gopsusports.com website.    For some advertisers that game was positioned as an opportunity to connect with a stronger than normal rating.   Indeed the game delivered with the noon 3.8 being the highest since 2001 for ESPN college football and the game averaging over 120% of comparable games previous year  as reported by USA Today.

CNN reports that Penn State’s $72.7 million placed them 5th of any college program in the county.  Marc Ganic, Head of Sports Corp., LTD estimates there is an additional $24.1 in merchandise/sponsorship to the university.   2011 football revenue seems safe given the end of the season timing of the scandal.

Penn State’s situation aside, dollars attached to college sports will likely continue to grow.  College sports, specifically basketball and football, l enjoy enthusiastic advertising support.  It’s not just that the college fan base is large (over 172 million) it’s also an educated and affluent audience – just what advertisers are looking for.

As for Penn State’s future, the monetary impact of the scandal remains to be seen.  In what appears to be a heinous attempt to protect the value of the Penn State brand at the expense of the lives of boys -  it’s a fair guess that value will decline.

Content Packaging for 2012 Holidays

November is full of content announcements that mean consumers will have some interesting gift giving for the holidays!  Recent announcements by several major players underscore the myriad of options yet to come in content monetization.

Content Gifting for the Holidays brings Lots of Choices

Content for the 2012 holidays- in all kinds of packages

You Tube looks to become more like your local cable company with their talk about multiple channels.  The most recent announcement of a Disney partnership speaks to their efforts to create professional targeted content channels

In a move that signals their view of broadband as a critical content conduit, Charter Communications is reported by Multichannel News to connect subscribers to popular free online video.  The description given explains “…Charter.net will provide embedded playback of Hulu’s free-to-consumer content, alongside its own authenticated video services…   The website also displays listings from Charter’s linear TV and VOD services with information on how to access that content on TV.”  It’s a marriage of unlikely bedfellows that acknowledges the consumer desire to navigate ALL video content in one place.

Amazon continues to break out surprising bundles that mimic and potentially exceed the current cable content options.  Amazon Prime just added a library of Kindles books to their free standard shipping and select video streaming package.  This along with the reasonably priced Kindle Fire tablet could prove to be the break out holiday gift for 2012.

All good.  All mean competition and positive packaging for the consumer.  The Long Tail of content options just gets longer.

 

Your hardest working marketing dollar is the warm body closest to the consumer

Customer service isn’t the sexiest, shiniest or most techno edgy option in today’s entertainment marketing toolbox.  But it is the hardest working most impactful marketing spend.  Customer satisfaction is correlated with  profitability

Customer Service Is:

  • Personal – and best served with real live human being
  • An opportunity to put a face to and create a strong connection to a brand
  • Profitable and sustainable

To the entertainment business customer service is an opportunity to reduce churn and build loyal return customers.  And guess what? It actually correlates with profitability! According to the American Customer Satisfaction Index (ACSI); “Customer satisfaction is a leading indicator of company financial performance.  Stocks of companies with high ACSI scores tend to do better than those of companies with low scores.”

It’s not likely a big surprise to learn that subscription television services (66) and newspapers (65) rank among the lowest (heck, even government services ranked higher!) in the latest ACSI surveys.  Ever tried contacting either?  Plan on several minutes of classic number pushing, sickening cheerful automated voices and overall unhelpfulness.

So it is an ongoing mystery to me why entertainment companies ignore the research, ignore their glaring customer service issues, and barricade themselves behind technology while calling it customer service.  I love technology.  But it doesn’t take the place of a warm body.

Claes Fornell, author of  “The Satisfied Customer” asserts per the ACSI review of his work that; “ global market forces are all pointing towards one inevitable truth: the cost of poor service will soon be borne by the companies that serve it—not the customers that receive it”.

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