Branded entertainment is not new; it certainly may prove the adage, what is old is new again. I do predict that the typical :30 commercial will one day go the way of the dinosaur. Sponsorship programming will allow brands to break through clutter and is virtually DVR proof. And as television becomes more interactive, viewers/users that want to know more can click a button to either flag the ad for future viewing, move to another device for download, or simply send an email to remind you to go to the corresponding website.
The challenge is that only large advertisers can afford to sponsor shows and smaller advertisers may find that broadcast is no longer the ideal medium to introduce or sell their product or service. But the death of the :30 linear commercial means that new avenues to advertise can emerge. And alternative choices have already popped up: VOD advertising, web advertising, overlays, and other creative new media options.
Wednesday, April 2, 2008
Tuesday, April 1, 2008
The New Rules of Media
Great article that looks at the changing print media with some great words of wisdom. The highlights:
There is a move away from traditional media and toward online media. Newspapers ended 2007 with 8.4% less circulation daily and 11.4% less Sunday than in 2001. Plus, print newspaper ad revenues experienced their worst drop in more than 50 years, according to the Newspaper Association of America.
Meanwhile, online news consumption is up. In 2000, 60% of people said they had got news online ever; 22% said they did it “yesterday” — a gauge for regular readers. In late 2007, the number who got online news ever was up to 71% and 37% said they were online for news “yesterday.
The New Rules of Media
1. The Audience Knows More Than the Journalist
2. People Are in Conrol of Their Media Experience
3. Anyone Can Be a Media Creator or Remixer
4. Traditional Media Must Evolve or Die
5. Despite Censorship, The Story Will Get Out
6. Amateur and Professional Journalists Should Work Together
7. Journalists Need to Be Multi-Platform
Read the full article here.
There is a move away from traditional media and toward online media. Newspapers ended 2007 with 8.4% less circulation daily and 11.4% less Sunday than in 2001. Plus, print newspaper ad revenues experienced their worst drop in more than 50 years, according to the Newspaper Association of America.
Meanwhile, online news consumption is up. In 2000, 60% of people said they had got news online ever; 22% said they did it “yesterday” — a gauge for regular readers. In late 2007, the number who got online news ever was up to 71% and 37% said they were online for news “yesterday.
The New Rules of Media
1. The Audience Knows More Than the Journalist
2. People Are in Conrol of Their Media Experience
3. Anyone Can Be a Media Creator or Remixer
4. Traditional Media Must Evolve or Die
5. Despite Censorship, The Story Will Get Out
6. Amateur and Professional Journalists Should Work Together
7. Journalists Need to Be Multi-Platform
Read the full article here.
Hulu or Hula: Either Way, Strong Start, Quick Drop
From Silicon Alley, "Traffic to Hulu shot up the week of its public debut on March 12, but dropped off during the following week, according to Hitwise. That's not too surprising given curiosity around the launch. But it is a sign that Hulu's growth curve is going to be bumpy. The week after its debut, Hitwise ranked Hulu as the 13th video site in terms of market share. (No. 1: YouTube, of course). But in its second week, Hulu dropped down to 18th place, one spot behind AOL's Truveo, and one ahead of LiveLeak."
Magazines Join Digital-Ad Wave
Social networking, e-commerce, online promotion, interactive marketing - print magazines are indeed preparing for the future, as this article talks about the work that magazine publishers like Conde Nast and Hearst are doing to maintain their relevence. The deep pockets of these companies enables them to purchase new media companies to incorporate into their business strategy.
Most interestingly was the two different approaches these magazine publishers were utilizing to expand their reach. I was intrigued to read the campaign Conde Nast has created with Dillard to showcase hot trends in merchandise, voted on by web viewers, that would be highlighted and available for purchase at their store. "This takes publishers further into the realm of marketing services. Instead of simply selling marketers ad space, they're rolling up their sleeves and designing the promotions as well." What I didn't see was how it incorporated back to the magazine's content.
Hearst has taken a different tack by acquiring Kaboodle, an e-commerce site, to enhance their own web page value. While this relationship is not helpful for big box retailers like Dillard, it strategically may make more sense. The shift in ad dollars may move away from brick and mortar businesses to products and services. And the Hearst web sites can be both editorial and a link to social networking and shopping. The companies purchasing ad space may find more value as they can more closely track advertising to purchase online. At the very least, through social networking links, to learn what customers think of their product.
For these magazine publishers to remain profitable in the digital age, the magazine's content must adapt to mobility, social networking, and online purchase behavior. Their reader/user must be successfully transitioned from print to digital usage while maintaining the value of the subscription as the predominant source for editorial content. Once that connection is made, consumers will value the new relationships (products & services) offered to try, rate and potentially buy.
Most interestingly was the two different approaches these magazine publishers were utilizing to expand their reach. I was intrigued to read the campaign Conde Nast has created with Dillard to showcase hot trends in merchandise, voted on by web viewers, that would be highlighted and available for purchase at their store. "This takes publishers further into the realm of marketing services. Instead of simply selling marketers ad space, they're rolling up their sleeves and designing the promotions as well." What I didn't see was how it incorporated back to the magazine's content.
Hearst has taken a different tack by acquiring Kaboodle, an e-commerce site, to enhance their own web page value. While this relationship is not helpful for big box retailers like Dillard, it strategically may make more sense. The shift in ad dollars may move away from brick and mortar businesses to products and services. And the Hearst web sites can be both editorial and a link to social networking and shopping. The companies purchasing ad space may find more value as they can more closely track advertising to purchase online. At the very least, through social networking links, to learn what customers think of their product.
For these magazine publishers to remain profitable in the digital age, the magazine's content must adapt to mobility, social networking, and online purchase behavior. Their reader/user must be successfully transitioned from print to digital usage while maintaining the value of the subscription as the predominant source for editorial content. Once that connection is made, consumers will value the new relationships (products & services) offered to try, rate and potentially buy.
Monday, March 31, 2008
Internet Newspapers
As Green is the new buzzword and digital is replacing print, it is not unusual to hear news that newspaper print advertising continues to decline. From Bloomberg, "U.S. newspapers suffered their worst drop in print advertising sales since industry record- keeping began 57 years ago, hammered by the housing-market slump and competition from the Internet." But the death of print, seems to be not the end of newspapers, but simply the end of one delivery method for another.
The web continues to bring us the news at a much faster rate. And aggregate sites, like the Huffington Post, provides us a blend of fact and opinion from recognizable names. Web versions of print, like the New York Times and Wall Street Journal are still considered to offer expert news sources, unmatched by others. But like email vs snail mail, we want our news delivered lightning fast and not simply once a day.
The newspaper industry has gone through this type of change before. Years ago, the afternoon edition was considered the ultimate way to stay informed of the activities from earlier in the day. Readership changed as the morning edition provided similar information through faster printing mechanisms, so that late news was included in early editions. The afternoon paper has gone away.
And so, the combination of factors: technology, green environmental issues, lifestyle changes, and others may lead to the death of the print edition. And while smaller batches may be printed, more and more people will purchase digital subscriptions or agree to see ads in exchange for downloading the news. Which sites become more popular to view or subscribe will ultimately depend on marketing activity: demonstrating brand value, building author/writer expertise, and viral buzz.
And what will the device be to view these sites from. Well... mobility and size rank up there; download speed is key and security/privacy of the subscription matters. Will Kindle or iPhone or Blackberry or laptop or someother technological innovation be it? The landscape keeps changing. But if I were print newspaper, I'd be looking ahead toward this transition and start to offer a digital stream. And if I am a bookseller, I'd get on this quickly too. Borders is up for sale, Barnes & Noble is looking over their shoulder, and Amazon is already there.
The web continues to bring us the news at a much faster rate. And aggregate sites, like the Huffington Post, provides us a blend of fact and opinion from recognizable names. Web versions of print, like the New York Times and Wall Street Journal are still considered to offer expert news sources, unmatched by others. But like email vs snail mail, we want our news delivered lightning fast and not simply once a day.
The newspaper industry has gone through this type of change before. Years ago, the afternoon edition was considered the ultimate way to stay informed of the activities from earlier in the day. Readership changed as the morning edition provided similar information through faster printing mechanisms, so that late news was included in early editions. The afternoon paper has gone away.
And so, the combination of factors: technology, green environmental issues, lifestyle changes, and others may lead to the death of the print edition. And while smaller batches may be printed, more and more people will purchase digital subscriptions or agree to see ads in exchange for downloading the news. Which sites become more popular to view or subscribe will ultimately depend on marketing activity: demonstrating brand value, building author/writer expertise, and viral buzz.
And what will the device be to view these sites from. Well... mobility and size rank up there; download speed is key and security/privacy of the subscription matters. Will Kindle or iPhone or Blackberry or laptop or someother technological innovation be it? The landscape keeps changing. But if I were print newspaper, I'd be looking ahead toward this transition and start to offer a digital stream. And if I am a bookseller, I'd get on this quickly too. Borders is up for sale, Barnes & Noble is looking over their shoulder, and Amazon is already there.
Friday, March 28, 2008
Social Nets as your Address Book
I have come to find myself relying on my online social nets as my address book. Someone has a birthday - Plaxo and Facebook remind me and I click from the site to send them a message or write on their wall to wish them well. If Linked In reports a change to a job, new title or new company, a quick click lets me acknowledge their success. I know longer have to remember special events, these sites prompt me in advance to take action if I choose.
And while it is nice that birthday wishes are being spread around, the level of information being shared could become a slippery slope. Should I put my personal activities on a social calendar only to have others hope that I have a successful root canal or fun manning the snack bar at the local little league game. How much sharing should be allowed. What is private anymore.
The article attached talks about Business Week's partnership with linked In that allows BusinessWeek.com users to access contact and company information and find people they know via LinkedIn connections. As a networking tool, it provides great information and opportunity. With regard to privacy, we are all an open book.
And while it is nice that birthday wishes are being spread around, the level of information being shared could become a slippery slope. Should I put my personal activities on a social calendar only to have others hope that I have a successful root canal or fun manning the snack bar at the local little league game. How much sharing should be allowed. What is private anymore.
The article attached talks about Business Week's partnership with linked In that allows BusinessWeek.com users to access contact and company information and find people they know via LinkedIn connections. As a networking tool, it provides great information and opportunity. With regard to privacy, we are all an open book.
Thursday, March 27, 2008
Net Neutrality Solution
Well the old adage goes, if you can't beat them, join them. Comcast seems to have recognized that the best way to resolve net neutrality issues is to work in partnership with BitTorrent to find a solution to the issue of bandwidth hogging.
Will this new partnership curtail the FCC efforts to resolve net neutrality claims; probably not in the short run. But if a technological solution can be found, it may delay action to allow a business approach to run, as opposed to a legislative one. It reminds me of the day multiple files were zipped into smaller packets for easier emailing. Clearly those that understand bits and bytes are looking to that type of quantum change to reduce the size of the files so they are easier to transport.
Bandwidth continues to be the ultimate issue and efficiencies of the infrastructure is needed. We are moving away from hardware storage of content. CD and DVD sales are declining. Audio files are small compared to video files. And as more people move toward downloading large video files, bandwidth issues will become more challenging. Mobility of content is key; holding data on ipods and other portable devices is far easier to carry than cases of cds and dvds. It is the natural evolution of the product.
Will this new partnership curtail the FCC efforts to resolve net neutrality claims; probably not in the short run. But if a technological solution can be found, it may delay action to allow a business approach to run, as opposed to a legislative one. It reminds me of the day multiple files were zipped into smaller packets for easier emailing. Clearly those that understand bits and bytes are looking to that type of quantum change to reduce the size of the files so they are easier to transport.
Bandwidth continues to be the ultimate issue and efficiencies of the infrastructure is needed. We are moving away from hardware storage of content. CD and DVD sales are declining. Audio files are small compared to video files. And as more people move toward downloading large video files, bandwidth issues will become more challenging. Mobility of content is key; holding data on ipods and other portable devices is far easier to carry than cases of cds and dvds. It is the natural evolution of the product.
Product Placement Rules
Tivo killed the ad inserted spot. VOD tries to disable fast forwarding, but people always find away around it. Success in monetizing content requires smart advertising and a keen understanding of how much is enough. The article in the New York Times demonstrates that branded entertainment can fund projects and can uniquely break through the clutter to get noticed. As the article suggests, "Integrating a brand or product into the plot of a movie, a TV series or a video game is intended to thwart the increasing ability of consumers to zap, zip through or otherwise dodge — so to speak — traditional advertising tactics like television commercials."
Certainly these are not new ideas. The golden age of television was all about sponsors who integrated their messages into the title or plot of the show. Uncle Miltie and his Texaco Theatre, the Jack Benny Program weaved products like Lucky Strikes and Jello.
Ultimately, the success of the sponsorship and promotion rests on the appeal of the content. Viewers will watch "Soccer Mom" if the storyline appeals, the actors are engaging, and the interest is peaked. First and foremost, the content must be engaging and interesting; otherwise, it becomes seen as a long commercial message to avoid.
Certainly these are not new ideas. The golden age of television was all about sponsors who integrated their messages into the title or plot of the show. Uncle Miltie and his Texaco Theatre, the Jack Benny Program weaved products like Lucky Strikes and Jello.
Ultimately, the success of the sponsorship and promotion rests on the appeal of the content. Viewers will watch "Soccer Mom" if the storyline appeals, the actors are engaging, and the interest is peaked. First and foremost, the content must be engaging and interesting; otherwise, it becomes seen as a long commercial message to avoid.
Wednesday, March 26, 2008
Strike Effect? Online Video Jumps In February
Well, people are not bored with online video. In a short month, video usage jumped back up in February, slightly higher than December. Silicon Alley Insider reports the topline Nielsen VideoCensus info for the last three months, including avergage time spent viewing per month:
December - 6.2 billion/130 mins
January - 5.9 billion/124.4 mins
February - 6.3 billion/130 mins
At the same time, Nielsen broadcast TV ratings were down 20% in February, perhaps finally due to the effects of the writers strike and lack of original programming on TV. My family, like most I believe, were tuned in many nights in a row for all the American Idol shows. Will online viewers be as loyal to their web shows as they are to their TV shows. An these usage numbers need to be dissected further to determine what types of video are of most interest.
I am a fan of short form video on the web, but I wonder if the low barrier to entry will simply create more glut and less quality. Will the 80/20 rule apply and the vast majority of views come from aggregators like Hulu, Joost, You Tube, and perhaps also broadcast websites. Or will the glut of bad video create dissatisfaction which in turn causes people to start to turn off online video for other activities like gaming. All bets are on...
December - 6.2 billion/130 mins
January - 5.9 billion/124.4 mins
February - 6.3 billion/130 mins
At the same time, Nielsen broadcast TV ratings were down 20% in February, perhaps finally due to the effects of the writers strike and lack of original programming on TV. My family, like most I believe, were tuned in many nights in a row for all the American Idol shows. Will online viewers be as loyal to their web shows as they are to their TV shows. An these usage numbers need to be dissected further to determine what types of video are of most interest.
I am a fan of short form video on the web, but I wonder if the low barrier to entry will simply create more glut and less quality. Will the 80/20 rule apply and the vast majority of views come from aggregators like Hulu, Joost, You Tube, and perhaps also broadcast websites. Or will the glut of bad video create dissatisfaction which in turn causes people to start to turn off online video for other activities like gaming. All bets are on...
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