Category Archives: Media

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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Online TV Vs. Traditional TV: Who wins?

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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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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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Why are Ad Rates still that high for Print Media?

chart-of-the-day-ad-rates

You cannot measure the real views,
You cannot measure or track the response from the viewer,
You cannot make it interactive,
You cannot personalize to a profile, not even to a microsegment,
You cannot do remarketing,
Yet… you, marketers, still pay more for Print Media Ads. Far more.*
Why?

The reason men oppose progress is not that they hate progress, but that they love inertia.
Elbert Hubbard (1856-1915)

Nowadays, would Wanamaker allow not to know which half of his ad money is wasted?**

* According to the chart from Business Insider the Cost-per-mille (CPM) of Newspaper ads is around 10 times the CPM of Desktop/iPad ads —and about 50 times the mobile CPM.
** “Half the money I spend on advertising is wasted; the trouble is I don’t know which half.”
John Wanamaker (1838-1922)

*** You can write the exact post for traditional TV ad rates Vs. Online Video ad rates.
Can any marketer explain why the insistence of making Wanamaker’s quote remain true 100 years after it was made?

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How does the Future of TV look like?

YouTube localization

YouTube localization (Photo credit: Wikipedia)

Youtube turns 8 in a few days. Just a kid, but mature enough to tell us what the future of TV will look like.

According to eMarketer, in 2012 advertising spending on online video in the US was $2.9bn. A sizable market, but less than 5% of the $65bn spent on TV ads. 

Not too impressive if it were not because online video grew by 47% year on year. At that rate of growth, it would just take 8 years for online video to surpass TV ads spending. Just by the time Youtube would turn 16.

And there are reasons to believe that the 47% growth we saw this year is just accelerating, led by YouTube. Here are 3 reasons why Youtube will drive an even bigger growth:

1. Better ads.

  • Advertisers are increasing their spending.  “YouTube is […] home for major brand advertisers.  On YouTube, our top 100 global advertisers spent over 50% more in 2012 than they did in 2011,” they said in their last earnings call.
  • Ads are getting better both for user experience, and for brands. Advertisers like the new TrueView skippable ad format, through which they only pay if viewers watch the ad. 
  • The potential of Google to better targeting ads to user profiles and context is unmatched.

2. Better Content.

  • Growing number of Professional content available: VEVO and Liga BBVA are just two fine examples I love.
  • Perfect platform for amateurs to turn pros with an ad-based business model
  • Youtube could soon enter the paid-for-content subscription model. This hints they could start making deals for live sport events, one of the strongholds of Pay-TV operators.

3. Better Features.

  • HD at 1080p is a reality.
  • Multiscreen is a reality. Same content on mobile, tablets, PC and TV
  • Social is embedded and there are huge potential for “second screen” options that could potentially integrate better with online TV than with traditional TV

Online TV and traditional TV borders will blur. And when they do, Online has all the advantages to win.

 Milestones in Youtube early life:

  • First video uploaded (“Me at the zoo”) in April 2005
  • Google buys Youtube in October 2006
  • 720p launched in December 2008
  • One billion daily views in October 2009
  • 1080p Full HD launched in November 2009
  • 2 billion daily views in May 2010
  • Trueview ads launched in December 2010
  • 3 billion daily views in May 2011
  • 4 billion daily views in January 2012
  • First video to reach 1 billion views: Gangam Style – PSY, December 2012
  • #2 search engine (bigger than Bing, Yahoo, ASK and AOL combined)
  • 800 Million+ monthly unique visitors in January 2013
a-brief-history-of-youtube-infographic-shortymedia
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7 Weapons of Digital Disruption

What makes digital so disrupting? These are the 7 traits of digital that may disrupt your industry. Watch out!

Disruption

Disruption (Photo credit: Tsahi Levent-Levi)

1) Zero marginal cost. Digital assets, software apps and online services have virtually zero marginal cost. That is, the cost of any additional sold unit is close to zero.

Case in point: A physical CD, newspaper, book, brochure, paper form, all of them have a cost per item. Copying an MP3, publishing a blog, distributing an ebook, filling an online form have zero marginal cost. Total costs are roughly the same for 1 download than for a million.

Impact: This is the biggest disruptor. This is the enabler of a paradigm-shift business model: freemium. Your revenue comes from a small percentage of paying customers while you give your product for free to millions of users. Why freemium?

  • Free Advertising. The bigger the customer base the bigger impact of word of mouth.
  • You occupy the market to avoid other players in the field. You create your blue ocean as you disincentive other players to enter a market you already serve for free.
  • You get feedback from more customers. That means better insight into customer needs.

The result is a winner-takes-all approach. The goal with freemium is to dominate your space. You rule your own blue ocean.

2) Infinite flexibility. Software is malleable. Unlike product updates in the physical world, in software/digital products, updates have no major impacts. There is no need to change manufacturing lines. Many digital products provide for nearly invisible updates.

Case in point: Chrome release cycle of a major version every 6 weeks is an example of how easy is to keep the product in constant evolution. Users hardly notice.

Impact: That enables the Lean Startup. That is the philosophy behind Agile software development. Years ago building software had waterfall processes that resembled manufacturing. You get requirements, you build it, you test it and you release it. Nowadays it is about shipping the product as early as possible and learn from the feedback. Ship a Minimum Viable Product (MVP) good enough to test the concept with real customers. The insights from your customer are fed into the complete product. That can’t be easily replicated in the physical world. Customers today buy digital products that keep improving well after they purchased them. e.g. mobile apps.

3) Infinite connectivity. Everyone is connected now and everything will soon be too.

Case in point: 79% of North Americans are connected to the Internet. The Internet of Things is just beginning to emerge.

Impact: That means, companies have now more data sources to learn from. That means consumers have access to infinite amounts of information. Social networks have become the way to discover, filter and share information. Today, what is remarkable, spreads like a virus. Marketing has not only gone digital, it has gone social. Never was there the potential to reach so many for so little cost. In the old days, the size of your advertisement budget was a barrier of entry to your market. Those barriers are still working, but are more and more permeable.

4) Moore’s law only accelerates the zero marginal cost of heavier and heavier digital assets, such as video. Moore’s law and cloud computing are also decreasing barriers of entry to play digital, by reducing or eliminating the upfront investment in technology infrastructure.

Case in point: This is one of the forces behind Youtube turning into profits. Serving a 1080i video costs today a fraction of what serving a 240p did cost in 2006.

Impact: Startups don’t need a big investment to launch mass market consumer digital products. Dropbox is a case in point, too. Moore’s law is also partially responsible of the rise of Big Data. Now we can Manage infinite data and get fast insights from it. CIOs, CMOs and an emerging Data Science are all about it.

5) Personalization. This is derived from infinite flexibility. Digital products can be personalized to every single customer. This is mass personalization at virtually zero cost, compared to the physical world.

Case in point: Amazon’s amazing recommendation engine, that always gets to your frontpage those items you like.

Impact: Behaviors, friends behaviors, customer profiling, all is recorded and that makes recommendation and ad engines more and more intelligent. AI combined with big data promise personalized products adapted to each customer and context. From market segmentation, to micro segmentation, to a segment of one.

6) Social Media and Crowdsourcing. The self-service model of supermarkets and restaurants, is even simpler in the digital world. Users will fill in their own data, will review products, and will share to their friends. The crowds create and share content with tribes as never before. Social Media is word-of-mouth on steroids.

Case in point: Paper Encyclopedias released Appendixes units to keep up with updates. Wikipedia is updated in real-time. Second screen: Twitter trending topics are often correlated to TV shows.

Impact: Millions of Facebook users not only personalize their experience, but create content and personalize the experience of their friends. Tripadvisor and Amazon are examples of the fundamental role of customer reviews in the decision to buy. Twitter has become the social soundtrack of TV. That means you need to monitor Social Media proactively. You need to get some clarity from the noise. What they say about your brand will not be so easy to influence with a prime-time expensive ad campaign.

7) Mobility and Ubiquity. Mobile takes the Internet and all your digital assets wherever you are. Smartphones capabilities (cameras, sensors, location, customer info) provide an array of possibilities illustrated by the nearly one million apps available in the App Store and Google Play.

Case in point: Maps applications are replacing standalone GPS devices that were only surviving because of the offline maps. With connectivity everywhere, maps in the cloud become more reliable and up-to-date than stored maps.

Impact: Consumers are more informed than ever. People can check online on the store before to help in the buying decision. They can even ask their friend’s opinions in real-time using their phone cameras. Witnesses to major news end events have become first-line reporters.

Media has already been disrupted by digital. It will not be the only industry. Healthcare, education are next. How many weapons of digital disruption are already affecting your business? Do you have a strategy to defend yourself?

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