Author Archives: Jose Miguel Cansado

Why it is time to kill Digital Marketing

ad-pages-sold-by-news-magazines
You will find more statistics at Statista

Digital Marketing and Digital Communications have been so far the little arms of the Marketing and Communications departments.

It is now time to kill Digital marketing and Digital Communications. Because now everyone in Marketing and Communications should understand Digital. Digital is no longer the rare species. Digital is emerging as the future in Marketing and Communications.

The world has changed. Growing kids ignore the once powerful world of print and traditional media. You too can ignore the chart above at your own risk, but Digital is taking over offline media, very quickly.

Many top executives in Marketing and Communications still come from traditional media. Some of them treat their digital teams as those guys that manage this thing they don’t actually understand well and they don’t actually care much.

Some of them still love press clipping from print papers and magazines as their lens to see the world. They need to change or they will be changed.

As the well-respected spanish newspaper director Pedro J. Ramirez put it: “For news, the future will be digital or won’t be.

 

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The iPad’s Disruption Of The Windows PC Market

Windows PC vs iPad
Chart via Horace Dediu

Now we can actually confirm that the day the iPad was introduced, Personal Computing changed forever.

Two years earlier, 2008 was the year of the netbook. Analysts would doubt whether Steve Jobs was right to dismiss netbooks when he insisted Apple would never launch one.

And once a gain his genius was spot on. In 2010 the iPad created a new category that made netbooks completely irrelevant. The rise of the netbook signaled a need for light computers with long battery duration and just powerful enough for everyday use. Now we know the answer was not going to be just a smaller PC.

The inevitable growth of broadband pipes and services in the cloud are a perfect fit for tablets, phablets and smartphones to become a more and more frequent replacement of laptops in our daily life. In emerging markets the leapfrog to wireless broadband and mobile computing is a reality. It will only accelerate the trend the chart shows.

Microsoft has a big problem with mobile and tablets. Windows 8 is a compromise to address tablets and desktops, but it is not working neither of them. Microsoft faces disruption in the personal computing space they used to dominate. Compromises have never worked well in face of disruption.

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Online TV Vs. Traditional TV: Who wins?

adoption-of-pay-tv-services-in-the-us
You will find more statistics at Statista

Remember the charts in 2008 showing iPhone’s market share under 5% versus Nokia’s above 50%? Doesn’t the Cable TV chart above remind you to those Nokia charts trying to show that the inevitable won’t happen? And then, it is only a matter of time.

For TV, the shift to online might happen sooner than what a first glimpse at the chart may suggest. If you add Netflix, Hulu, Amazon and iTunes shares on the chart, you get that online TV has already surpassed Cable TV. Yes, data can tell many different stories depending on how you show it.

Internet bandwidth is less and less a bottleneck for online TV to offer the same picture quality as Cable or Satellite. As we get more connected TVs, the difference between traditional and online TV blurs. For live TV, the consumer TV experience is the same whether the signal is carried over a cable, a satellite or an IP connection.

Very soon the only difference between traditional and Online TV will be the technology that carries the signal. While live TV on cable and satellite use a broadcast carrier, live TV for online is unicast.

To a viewer that does not change much. For an advertiser that is a big difference.

– With broadcast, all consumers must watch the same ads. You can only target your ad by understanding what content/TV-show appeals to what demography.
– With unicast, each consumer can watch an unique personalized ad. That means that marketers can tailor their message to the segment of one.

It is not only that marketers could program TV ads with the same granularity as you can program a Facebook or LinkedIn Campaign (e.g. I want my ad to be seen only by male people working for AT&T in Illinois). It is that you could even imagine to personalize your ad with the name of the viewer, or if permission given, with his customer history.

What do you think will be more valuable to advertisers? A mass media ad, like those aired on TV today, or the possibility to target specific niches, and even persons?

That is the hidden power of online TV, and this is what traditional media agencies (and TV broadcasters) don’t want you to know… so that you keep wasting half of your marketing budget.

“Half of the money I spend on advertisement is wasted. The trouble is I don’t know which half.“
—John Wanamaker (1838-1922)

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Can you measure TV Audience with Twitter?

chart-of-the-day-more-evidence-that-twitter-is-disconnected-from-the-mainstream

Trying to make a straight correlation between TV audience and Twitter activity is as nonsense as ignoring the potential Twitter provides to get insightful metrics for TV.

Some shows will trigger more Twitter activity than others. Granted. That does not make any attempt to map TV audience with Twitter invalid. It just shows that getting meaningful insights requires some more thoughtful analysis and modeling than the mere counting of tweets.

 

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2 Key Ideas on Marketing Disruption

These are the key points that Brian Solis makes about Marketing Disruption in this video:

1) How to equip marketers to deal with disruption?
The answer from marketers should also be disruptive. That means you should stop looking at the same companies you looked in the past and everybody looked.

By the very nature of the process, if you keep working with the same agencies and companies you won’t be very disruptive.

My comment: I can only agree. Incumbent players tend to protect the status quo and will have a conflict of interest to disrupt themselves. AT&T did not invent Skype, and Time Warner would have never invented YouTube. The disruptive guys are the ones that shake the established model.

A traditional media agency has no incentive to shift your offline dollars to digital.

2) What are the recent Disruptions in marketing?
One of the greatest disruptions is that of consumer behavior. The way I make a decision, how I use technology, where I go and what I share today Vs what I shared yesterday is different and it is changing over time.
“What I do, where I go and how I do it, this is what marketers should pay attention to. This is what should inspire them to get in front of consumers.”

My comment: Having a mobile and being connected everywhere has changed the way people buy, research or share what they like and dislike. This is an opportunity for marketers to better understand their customers. And this is why Big Data Analytics has become the key for marketers to understand the on-going changes in consumer behavior and the opportunities they bring.

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Why iOS is not doing that well in Europe?

platform-share-of-smartphone-sales
You will find more statistics at Statista

Among all regions, Europe is by far the worst for Apple, as the chart shows. Surprisingly even Windows Phone is getting close to iOS market share in Europe.

The reason is quite simple:

ipad-price-spain ipad-price-US

The price for the lowest spec iPad in US is $499 while in Spain is 499 Euro. For years Apple has maintained a pricing policy where prices for their products in Europe follow the 1 Euro = 1 USD rule. At today’s exchange rate, an iPad costs 36% more in Europe than in the US.

We all know the Apple target client is not price sensitive, but in a Europe in recession with an impoverishing middle class (specially in southern countries) it is not a surprise that Samsung and Android are doing pretty well.

If Apple wants their market share in Europe to resemble US, they’d better change their pricing policy in Europe. Otherwise they risk to be beaten by (shame on you Apple) Windows Phone!

 

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7 Dimensions of Influence in Social Media

“I find that, as a rule, when a thing is a wonder to us it is not because of what we see in it, but because of what others have seen in it. We get almost all our wonders at second hand.”

—Mark Twain

English: Infographic on how Social Media are b...

English: Infographic on how Social Media are being used, and how everything is changed by them. (Photo credit: Wikipedia)

Marketers have mined social media data for “influencers” for years. To identify those people whose favorable tweets and posts can boost your sales, you need to be able to measure the influence of your customers.

A tool like Klout measures the influence of a person, based on popularity and potential reach in social media. But popularity and influence do not necessarily align.

If you plan to buy a tennis racket it is unlikely you follow Oprah’s advice on which brand to pick just because she has a Klout of 92. You’d rather listen to David Ferrer’s advice, Klout 73, for that choice. And still, you might just buy what your friend Carlos, who is a tennis pro, posts in a forum despite he has a Klout of 36.

Klout’s measure of influence is too shallow to give you the insight you need to figure out who influences your customers and how.

These 7 dimensions provide a framework to better understand influence in social media:

  1. Activity: how active a user is in a social networks is the simplest measure of influence. Combined with reach, it provides a basic two-dimensional model.

  2. Maximum reach: Understanding the potential impact of a user post will depend on factors such as number of followers, his recent influence upon them (number of RTs, favorites, lists) and the number of high-influencers among his following. The potential maximum reach of a user translates into what we could call OTSS (Opportunity To be Seen Socially)

  3. Social role: Malcolm Cladwell in The Tipping Point, defined 3 types of roles played by key actors in social epidemics. It maps perfectly into social media roles:

    • Connectors, or people that know who is who and who does what and can reach to them

    • Mavens, or “information specialists”, or people that know the marketplace on their area of expertise and are willing to share what they know.

    • Salespersons or “persuaders”, charismatic persons that makes other want to agree with them

  4. Authority: One of the key principles of persuasion in Cialdini’s work Influence. Authority is not universal, but rather linked to a subject. The authority of an user, can only be asserted as it relates to a subject. Mossberg’s authority in consumer gadgets will influence me in what tablet I choose to buy, but his opinion on a brand of jeans might be irrelevant to me. Oprah’s authority in regards with tennis rackets will not influence you as much as an ATP tennis player recommendation.

  5. Intimacy / affinity: Nielsen says that 26% of people are more likely to pay attention to an ad that has been posted by one of their social network acquaintances. If the tennis pro is my friend, then his chances to influence my buying decision will be higher than those coming from a pro unknown to me. How close you are to a person, and how many things you have in common will increase the likelihood you pay attention.

  6. Context: A given topic, time and place define a context in which the influence of a person can spark. Three examples of the role of context:

    • During the Egyptian revolution, the tweets from Tahrir Square provided live coverage during the protests and raised awareness regarding the protests.

    • A person that suffers a customer care issue with a brand, can see his level of influence multiplied in a topic related to his issue.

    • A person who is actively searching for the best tennis racket in the market, and posts a comparison of his findings in a forum, becomes an authority for a while. Once he’s made his purchase, he won’t maintain his comparison and his influence will diminish. As the web becomes a stream of content, the real-time dimension of influence becomes crucial.

  7. Stickiness of the message. Is the message memorable? The impact of a message will not only be linked to how many times it was displayed and how many people it reached. How effective is the message to trigger action? How effectively is it retained? If it is worth a remark, the same message will reappear in social media and influence new contexts. Sticky stories work in setting trends. Being able to identify them early gives you an edge.

Social Media is a powerful source of insight. For making business decisions in designing and measuring campaigns, in segmenting the market, or in customer care, you need a deeper understanding of influence in social media.

Have you asked yourself, what opportunities you are missing for not dealing with the true influencers to your brand? What advantage would your competitor get by mapping the top influencers in every context? Can you afford it?

 

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