Archive: entertainment

TV still the lead medium?

In a recent post, emarketer quoted a study by Deloitte stating that TV was still the lead influencer of purchasing decisions by consumers, even in the US.

I beg to differ.

Studies on the share of TV in media consumption do not differentiate enough as to the level of attention that the medium is consumed with. So many households have TV running virtually all day with a minimum of attention as opposed to an online usage that is still predominantly active, targeted (in the sense of the user pursuing a search or e-commerce activity), or socially interactive, that the two types of consumption cannot be equated – it’s comparing apples and pears.

The is all the more true if we consider the demographics, with a larger portion of low-income households letting the TV running indiscriminately. Besides, if you discount the number of TVs running 12 hours a day in Bars and Restaurants, I would wager that in terms of full attention media consumption, online has already overtaken TV.

We lack a study that compares – from the vantage point of an advertiser – conversion rates on campaigns running on TV and non-display-ads online.

The trend will increase with the further roll-out of online video.

Marketing on a tight budget during a recession

The “Gretchenfrage” most discussed in the advertising industry right now is whether we will have a full-fledged downturn in advertising spending across all media, or whether there are niches and segments of the advertising /media industry that could even benefit from the recession. This being the 2nd downturn that I have experienced in my career, I am firmly convinced that the latter will happen.

I make this assumption based on several factors:

  1. A new generation of marketing decision makers now has control over most large budgets. This generation understands the power of digital communication- even though in the past years it has underestimated the potential impact of Web 2.0 and has continued allocating a disproportionate amount of money to traditional media without measuring that performance.
  2. Cutbacks in marketing and sales budgets are rather absurd when the real problem is crumbling sales, but this happens in every recession and it will happen this time around again. Since at the same time marketing performance will be measured more and more in terms of contribution to sales, marketing decision makers will focus on campaign tools and media that either directly or indirectly increase sales performance. Gone are the expensive TV commercials with bikini clad, young beauties on a tropical island, and in comes unsexy sales-driven below the line marketing. The past 2 ½ years have proven, however, that marketing in a Web 2.0 world need not be dreary at all even while contributing directly to sales lead generation.
  3. Web 2.0 advertising formats and communication models have reached a level of maturity and a critical mass among users that allow them to have a measurable impact on brand communication and sales lead generation.

The coming year will see providers of Web 2.0 campaign solutions and media ad placements achieving disproportionate success considering the downturn and cutbacks of media budgets. This will happen for precisely the reason that in the past 1 ½ years many showcases of Social Marketing have been started that have proven or will prove to have been successful to an unexpected degree. After the Beacon disaster these showcases will turn the tide, much in the way keyword advertising established itself in 2002 – 2004.

Our best reference is http://bmw-web.tv, which generated considerable brand awareness for our client BMW. BMW itself doubled that success by creating, at the same time, a national web TV project that was equally successful called BMW TV which greatly enhanced traction to its own site. For confidentiality reasons I cannot give you figures, but trust me the impact was measurable.

Advertisers of the old school often argue that performance marketing or traditional lead generation marketing does not help the brand gain emotional traction and awareness. That dichotomy is of the past. Social relevance, rich media and video formats allow the digital sphere to create a branding experience that is as emotionally compelling as television and as measurably successful as search engine marketing. That has always been the holy grail of advertising, and we seem to have found it.

If you want more information or need help achieving that success, contact me.

Videos and More

The world is abuzz with the changes spurred by the (third) arrival of video to the internet. There is truth in the perception, but many questions are unanswered by the hype.

The way we see it, three factors will create the actual value of video on the web:

1) ubiquity: it will evolve from a feature to a standard component of every website
2) involvement /interactivity: the business models that will succeed are those that combine the emotional appeal of moving pictures with a wide and differentiated range of interests reflecting long tail segments which in their combination reflect any given markets population diversity
3) cannibalization of existing markets: there is still no new money out there, so startups have to decide who’s pockets they’re after. The Advertising World? Media Budgets? B2C Entertainment? E-Commerce -> Retail? That is the Gretchenfrage.

Incidentally, that’s the exciting part of

http://www.sevenload.de

the board of which I just joined. they will beat YouTube in Europe, not as a copy. Al Ries in “The Origin of Brands”:

“If you want to beat the incumbent, you have to be the enemy of the incumbent”

So be it.

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