Tag Archive for: Media

Study: Agencies moving to slow for consumers?

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If we can believe in a recent study ‘Beyond advertising: Choosing a Strategic Path to the Digital Consumer‘ by IBM Institute for Business Value, then ad agencies are years behind in catching up to digitally savvy consumers – although consumers are moving their media consumption online more quickly than anybody could have expected.

Now, despite the difficult economic climate there are some good news for the digital industry: IBM’s study states that interactive, measurable formats will be expected to account for 20% of global ad spending by 2012. The interviewed CMOs said they will increase interactive and online marketing spending in 2009 while 63% while 65% will decrease on traditional advertising. Generally speaking, the same trend that we acknowledged from the latest CMO report.

So, what are further interesting findings? Between 2007 and 2008 the proportion of consumers answering they used social-networking tools went up to 60% (from 33%). It even doubled for for online and portable music services to 46% and almost tripled for mobile internet. And believe it or not, the access to mobile music and video quadrupled to 35%.

Seeing these numbers, it is surprising that 80% of the interviewed ad executives forecast the industry to be at least five years away from being able to deliver whatever might be necessary in terms of cross-platform advertising, encompassing sales, delivery, measurement and analysis.

The problem seems to be the agencies according to study co-author Saul Berman, IBM global leader, strategy and change consulting services. Agencies need to identify and keep pace with the value shift in order not to loose out the same way the music industry did, he summarizes.

“To succeed — especially in the current economic environment — media companies will need to develop a new set of capabilities to support the industry’s evolving demands which include micro targeting, real-time ROI measurement and cross-platform integration,” said Saul Berman, IBM Global Leader for Strategy and Change Consulting Services, and co-author of the new study. “Now is the time for companies to move quickly to become more effective with their assets and build for the future.”

Spot On!
Watching the last decade, companies and agencies followed their customer audience and pushed their budgets to more interactive, measurable formats such as the internet and mobile (gaining 20% of the overall spend). This is not surprising as digital advertising enables advertisers to measure more effectively campaign success to prove the value of their budgets.

In terms of platform owners it shows that these need to identify new opportunities to monetize new consumer experiences before it is too late like the music industry has shown. The options are obvious: value of content, visual goods sales, value-added services plus hardware or software offerings.

For this study IBM conducted 70 interview sessions with global industry execs and surveyed more than 2,800 consumers in Australia, Germany, India, Japan, the U.K. and the U.S.

News Update – Best of the Day

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There is a lot happening on Twitter and some companies might ask if their competitor already uses Twitter in the means of some corporate communication, service tool or some thing else. Andrew Kinnear created a wonderful list on ‘Consumer and Business Brands on Twitter‘. And if you are an exec and want to see some cases on how to engage as a top manager with your target audience on Twitter, just check out this new service called ‘exectweets‘.

This years Media Summit 2009 reveals some very interesting insight in the question ‘Can the Media Business Solve a Problem It Can’t Define?’

Budgets for recruitment low in recession times? Well, here is how some companies solve the issue by using Twitter at ‘Businesses Turn to Twitter to Cut Recruitment Costs‘. See some interesting aspects on the Pros and Cons on an still unproven option.

News Update – Best of the Day

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Excellent, the media meltdown by the American group blog Xark …

Great, funny ad by McDonalds…

Some viral campaigns can really deliver what they promise…

Twitter Ads: Thoughts on the test

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Now, there has been a lot, a lot, a lot of thoughts and talk lately on how Twitter will be making money. Finally, Twitter is experimenting with a new revenue model as Techcrunch tells us…

First, it seemed like a nice idea to promote their own service (i.e. widgets and search), which I thought is the case. This well-placed add-on feature makes it easier to work with Twitter, especially heading towards their search site, when you are not using any of the helpful Twitter apps. And there were also some good thoughts on Twitter becoming a search engine and as how this will be a driver monetizing their business. But Overture (now controlled by Yahoo), has patented placement of text ads on a search results page. So, this was probably a difficult pitch.

Now, back to what is happening, see the black box on the right hand side on ‘Widget’…

It is obviously really a ‘simple’ test for some solid revenue stream generating business, we all are familiar with via Google text ads. But can this be an appropriate test to recall on revenue models?

The two test objects, Twitter search and the above mentioned Twitter widget link, belong directly to the Twitter concept. It offers some immediate navigation benefit to the user. This is what users are after for a long time. Thus, ‘Twitterati’ will click on the links and appreciate the easy way accessing their search service. So, the results Twitter sees with the test don’t reflect in any way potential click rates on text ads as these are dependent on results.

Isn’t there a difference if you promote some internal service or feature, or if you run a promotion from some external party or company? In my experience, in terms of text ads, and those generating results, we can definitely say, there is a huge difference on the click rates. Hence, on the conversion rate clients will find the difference as well. Editorial focus is not comparable to advertising, reaching out for awareness, right? And as clicks is the interactive currency ‘No. 1’ for marketers and convergence their need, according to yesterdays CMO report, the test sounds like comparing apples and oranges.

Spot On!
Nevertheless, the test is worth some thought. And just imagine Amazon and Twitter are getting engaged, the business model becomes clear based on some semantic web thoughts: connecting Amazon’s product catalog by connecting tweets and related products. Someone talks about a film and gets an offer from Amazon in the text ad. Or maybe Yahoo could be the new ‘Who is buying Twitter at last’ as they could compete in the long-tail market. In general, Google could finally face a competitor here…

CMO report: budgets better than expected

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Chief Marketing Officer (CMO) Council’s Marketing Outlook 2009 states that CMO’s see their budgets stable. Almost half of all asked CMO’s (54,1%) say their budgets will increase or at least remain.

What is the value of a click? Obviously, the best deal is transforming a consumer into a customer. For 36% this seems to be the biggest issue: converting clicks to sales and finding the value of online marketing. Just 9% of the chief marketers argue about their online performance capability as being “excellent”.

The outlook in the recession is not too bad… The majority of top marketers answered their traditional marketing focus (print, outdoor and TV) remains the same, and especially digital advertising (also social media and search marketing) will increase. But it also has to me mentioned that 45.7% said their spending budgets will decrease.

“Senior marketers are looking to hold budgets steady and not make tremendous cuts in headcounts,” said Liz Miller, the council’s VP of programming and operations. “Instead, they’re reallocating both their budget and talent into those areas that better engage and communicate with core audiences and customers.”

Spot On!
The loyalty of customer becomes more and more an issue for marketers. Who would be surprised… Those who want to study as deep as possible how the customers thinks, don’t ‘owe’ the sovereignty on customer service and support issues, nor have they big influence on CRM, the survey says.

The question remains why the majority of marketers rely on old online measures (i.e. page views and registrations 64.6%) and not focusing on more modern online engagement opportunities which keeps the consumers with the brands. The most obvious options could be personalization and client first programs (i.e. client opinion platforms or community building) which could replace the old-school “watering cans” techniques. The more companies focus on the client, the ‘happier’ the revenue lines will show.

The report was co-sponsored by Deloitte, Jigsaw and Ad-ology and asked 650 worldwide marketers.

News Update – Best of the Day

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Most of big companies are not really relying on social media, nor evaluating it seriously. Susan Rice Lincoln found some answers why ‘big brands struggle with social media’. She found six reason.

Social Media is…
– … often viewed as just another marketing channel.
– … does not fit into current structures
– … a long term proposition
– … promises no guaranteed results
– … measured differently
and… Communities and content are global and corporations are generally national. – A lot of option if you tackle these issues from the right angle…

In some way Twitter is like a search engine. Have we ever thought on how we use this search option?
Danny Sullivan started a research and – although someone might be there who does not believe in research results – there is definitely a very interesting trend in the findings. Yes, I would say, Twitter is an ‘additional search engine’…

– Half ask a question on Twitter at least once per week
– Nearly 40% are “usually” satisfied with the answers they get
– Half “sometimes” or “often” turn to Twitter for questions rather than a traditional search engine
– Only 4% said they’d give up a traditional search engine for Twitter
– Nearly half said they ask questions on Twitter because they trust their friends or followers more than search results or are seeking expert answers
– 40% said they seek answers to “real time” issues or they want a variety of opinions
– Nearly 70% said questions they asked were related to computer or the internet, followed by 44% asking questions about Twitter, then 41% asking about shopping or product advice

Advertising in a social media world always carries the problem that people might abuse your brand in some unfavorable way. Last week some boys made up the idea in “How to Smoke Smarties”. Adage focuses on this latest YouTube phenomenon and posts some important hints how to handle situations where people are ‘messing messing with your brand online’.

1. Don’t fight it. (Brands cannot control client communication!)
2. Survey the extent of the problem. (Brands need to know how big ‘the damage’ is!)
3. Turn to your social-media crisis plan. (Develop one!)
4. Be open with employees. (Social Media guidelines will help!)
5. Respond accordingly. (All spokesperson should have the official response statement asap!)

News Update – Best of the Day

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The fifth annual Digital Outlook Report from Razorfish helps marketers make smarter decisions about their digital media spend – especially in a recession. The latest executive summary of the 2009 DOR summarizes three main statements: Portals continue to lose their grip, social media becomes social influence and long tail TV rises.

Measurement on the spot: How effective are your social media programs? Want to know the ROI of your social media campaigns? Need data on how to make strategic decisions to refine your social media programs? Robin Broitmann has created a ‘Social Media Metrics Superlist’.

Will our business of the future be without email communication, simply done by social networking? Adam Ostrow finds new stats from Nielsen Online showing that social networking has overtaken email in terms of worldwide reach already at the end of last year.

Die Zukunft des mobilen Web: Experimentierzeit ist vorbei

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One-on-One Interview with Olav A. Waschkies
Director Strategic Marketing & Mobile Internet, Pixelpark

Olav A. Waschkies arbeitet seit über 15 Jahren in der Kommunikationsbranche und verantwortet seit Anfang 2008 als Director Strategic Marketing & Mobile Internet, die Mobile-Aktivitäten von Pixelpark Agentur. Der gelernte Betriebswirt mit Stationen an der Universität zu Köln und der Universidad de Navarra in Pamplona ist Marketer der ersten Stunde im digitalen Marketing und seit 2000 bei Pixelpark beschäftigt. Olav A. Waschkies ist stellvertretender Vorsitzender der Fachgruppe Mobile im Bundesverband Digitaler Wirtschaft (BVDW) e.V.

The Strategy Web hat Olav Waschkies über die Zukunft des mobilen Web befragt.

Q: Was sind die Eckpfeiler einer guten ‘mobilen Webstrategie’?
Olav Waschkies Eine gute mobile Webstrategie zeichnet sich durch Zielkongruenz der mobilen Aktivitäten zu den übergeordneten Gesamtzielen der E-Business-Strategie aus. Dies kann von der Erschließung neuer Umsatzfelder im Bereich Mobile Advertising über die Integration des Themas Mobile im Bereich Distanzhandel hin zur Kostenreduktion durch Prozessoptimierungen im Bereich Costumer Self Service sein. Entscheidend sind die Faktoren – Zielgruppe und Akzeptanz des Mobile Internet, Technische Architektur der eigenen E-Business-Aktivitäten und interne Entscheidungsstrukturen und Akzeptanz für neue marktrelevante Themen im digitalen Umfeld.

Q: Ist das Thema ‘Mobile Webstrategie’ in Unternehmen als ganzheitliches Thema angekommen oder eher ein Marketingphänomen? (mit Begründung)
Olav Waschkies Es ist sicherlich ein Problem in der Entwicklung des mobilen Internets, dass das Thema in weiten Bereichen noch als „Marketing-Spielwiese“ und nicht in der Gesamtheit seiner Bedeutung für die Unternehmen gesehen wird. Schlimmer noch, es wird oft nicht einmal Marketing-Thema, sondern enger gefasst als Marketing-Kommunikationsthema gesehen. Mobile Internet wird dabei sehr häufig auf den Kampagnen-Charakter verkürzt, im extremsten Fall noch auf das Thema Mobile Direct Response, d.h. auf SMS-Dienste. Das Potenzial des mobilen Webs für die Bereiche Internet, Extranet und Intranet werden leider in den wenigsten Fällen strategisch aufgenommen und als Gesamtheit in die E-Business-Strategie integriert. Der Grund ist sicherlich die Entwicklung des Themas, da Direct Response Kampagnen lange Zeit die bekannteste Nutzung des mobilen Webs waren und alle Ansätze aus dem Jahrtausendwechsel als Wap-Flop noch in der Wahrnehmung der Entscheider präsent sind. Die Möglichkeiten die sich eine Dekade später ergeben, sind diesen Entscheidern noch einmal nachhaltig näher zu bringen.

Q: Sehen Sie das Thema Social Media und Web 2.0 von großer Bedeutung für die Entwicklung des mobilen Webs?
Olav Waschkies Social Media und Web 2.0 sind bereits immanenter Bestandteil des mobilen Webs. Eigentlich muss man es noch konsequenter formulieren, das mobile Web ist Web 2.0 in seiner reinen Form und wer sich die mobilen Mandanten der etablierten Online-Angebote und die neuen „mobile born“ Angebote sowie deren Nutzung anschaut, wird sich dieses Eindrucks schwerlich verweigern können.

Q: Ist es überhaupt schon die richtige Zeit für Unternehmen mobilen Content zur Verfügung zu stellen?
Olav Waschkies Es ist für viele Unternehmen bereits fünf vor zwölf, da im Zweifel der Wettbewerb bereits mobil vertreten ist. Wir haben es im mobilen Web nicht mehr mit Prognosen oder Trends zu tun, wir stehen in den nächsten Monaten vor belastbaren Marktdaten, die Transparenz schaffen werden über Angebot und Nachfrage und zeigen werden, dass zum einen bereits ein Markt existiert und zum anderen welche Entwicklungsdynamik diese Markt hat.

Q: Was sind die drei größten Herausforderungen für Unternehmen, die auf mobilen Content setzen wollen?
Olav Waschkies Es lassen sich die folgenden drei Herausforderungen charakterisieren:
1. Interne Herausforderung – Wird das Thema mobile Web als unternehmensrelevant erkannt, erhält es Promotoren auf Entscheidungsebene und findet seinen Widerklang in der E-Business-Strategie?
2. Technische Herausforderung – Lässt sich das Thema in die eigene E-Business-Infrastruktur integrieren und wie, bzw. mit wem lässt sich dieses zielführend umsetzen?
3. Markt Herausforderung – Wird von den Unternehmen der richtige Marktbedarf erkannt und ein adäquates Angebot für die eigene Zielgruppe(n) geschaffen?

In Summe münden die Herausforderungen in die Aufforderung das Thema mobile Web aus der Ecke des Experimentierumfelds herauszuholen und anzufangen, das Thema als geschäfts- und somit strategierelevant einzuordnen, da das mobile Web in den nächsten Jahren sich im Massenmarkt etabliert haben wird.

Herr Waschkies, wir danken Ihnen für den spannenden Einblick in eine mobile Web-Zukunft.

Spot On!
Ergänzend hierzu soll eine Studie von TNS Infratest im Auftrag der E-Plus nicht unerwähnt bleiben, die die Usersicht beleuchtet.
– Mobile Datenangebote: Trend zu Handy- und Laptop-Surfen hält an
– Sprach- und Datentarife: Deutsche bevorzugen Flatrates
– Telefonie: Jeder Dritte würde ganz auf einen Festnetzanschluss verzichten
– Deutschlandweit repräsentative Studie unter 2.000 Verbrauchern

Die am häufigsten genutzten Mobilfunk-Anwendungen sind demnach…
– SMS-Versand (81%)
– Telefonieren (69%)
– Foto und MMS-Versand (33%)
– Musik-Downloads (15%)

Die Studie steht zum Download bereit bei E-Plus.

News Update – Best of the Day

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Die richtigen Strategien für Social Media zu finden, ist derzeit ein Versuch von zahlreichen RP- und Marketingexperten. Geoff Livingston, ein bekannter amerikanischer PR Stratege, bringt die Komplexität der Thematik in seinem Post ‘Five Social Media Strategies‘ kurz und prägnant auf den Punkt.

Es gibt viele Leitfäden für die Planung einer Webseite – aber nicht viele für die Planung der perfekten. MintTwist, eine Internetberatungsfirma aus UK, hat eine sehr interessanten Planungs-Leitfaden abgeliefert. Einfach mal durchlesen und selbst prüfen, ob die bestehenden Elemente der Planung, dem Design und der Aussagekarft der Webseite entspricht.

Nach seinem erfolgreichen Post über Personal Branding 101, hat der Autor des Buches ‘Me 2.0’, Dan Schwabel, nun seinen zweiten Teil abermals bei Mashable veröffentlicht. Personal Branding 102. Wer sich diesen Post durchliest, macht sich danach sofort an das Auffrischen seiner Digital DNA und seiner Kontakte in seinen Social Media Netzwerken.

______________________ Spot On!

Wenn Sie einen aktuellen Report zum Thema Social Networking haben möchten, bietet diese Studie Ihnen die Option dazu. Die Studie will herausfinden, wie wir Social Networks im Business-Kontext nutzen, welche wir bevorzugen und wieviel Zeit wir dort investieren. Nehmen Sie sich die Zeit und sein Sie einer der ersten, der die Studie bekommt.

Cost per User – the next digital currency?

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The discussion about the best advertising currency is long-lasting. It may never be ending. Still the discussion needs to be continued. The web publishing space had all the options on the table: cpm, cpi, cpc, cpl, cps and so on. And each and everyone of those failed in a way that makes all sides of the publishing and web value chain happy. The only currency that did not seriously come up as a currency ratio in media is cost per user (cpu) although every company follows this metric to evaluate their website costs.

Advertisers love to purchase ‘cheap’ quality space of extraordinary target groups. Platform owners need premium-price compensation models in order to provide high-quality content to their users. The users don’t care. Although they are the stumbling block, the center of attention, in this issue between platform providers and advertising clients. Now that web 2.0 and social media comes into the ‘cpx-game’, everyone gets a chance to rethink digital currency models. What is missing in this discussion is the cost per user model.

A Retrospect on Controlled Circulation
If we go way back to the beginning of this century, there was an interesting discussion about controlled circulation going on in the publishing industry. This discussion indicated that the best value of a medium is the registered or qualified user. Someone who gives away a lot of personal data in order to receive a medium for free. And there were numerous print magazines in the market that do and did controlled circulation. And today? There are hundreds of community-based business models on the web – all of these are to a huge degree controlled circulation orientated. Only a few of these businesses know about it, or see the premium value of controlled circulation media in this advertising space.

Now, what exactly is controlled circulation?
In a lot of meetings with clients, the question came up a thousand times when we explained our old community model. Controlled circulation is a distribution model, usually free of charge, for newspapers and magazines that wanted to have a deeper control of their target group. Thus, controlled circulation magazines offered the ideal targeting of the best quality audience for their advertisers. The benefit was quite obvious if we read the articles here and there. Advertisers spend more money for an ad in the controlled circulation arena than for the classical news-stand magazine. In booking controlled circulation media advertisers know in details what target group get for their money. This premium model could have been applicable to business models on the web. But only a few saw this option and took advantage of the ‘closed’ access door idea.

Why is controlled circulation a winner?
The big benefit of controlled circulation is that non-profit organizations audit the reader database of magazines or web platforms in terms of database quality and quality reach: for print BPA and for web platforms ABC Electronic. Both independent ‘controllers’ double-check in the means of the advertisers what kind of target group quality content providers ‘pretend’ to offer to the advertisers. Advertisers love the audits as there is some reliable data that marketers could show to their bosses or the management team after the sales people had captured the marketing-office for their sales pitches. It needs to be said that the audits were based on projections – only 10-20% of the total database really was tested, but still the quality check was much appreciated by the advertisers.

Controlled circulation and the modern web communities
The question is: Why did the controlled circulation discussion ‘die’? Why was it not carried on as an idea for a premium-priced advertising currency in the web world? Why did the focus on the high-profile individual user registration get lost when there was such a huge benefit for the advertising industry? Did it get killed alongside the top-valued personalization idea which got stepped down by the advertising cpm valuation? Maybe…

Nevertheless, in days where social media, social networking and community-building is exploding, is it not the right time to focus on the value of the registered user in terms of digital currency and critically scrutinize the ‘odd’ cpm valuation? Does not the individual need to be in the center of attention of the modern web 2.0 world? The modern web individual that communicates with companies. The one that reads, comments, blogs, publishes, networks, rates or reviews?

A vision
Just imagine there was a kind of database that all magazines and platform owner have to use who want to earn advertisign dollars. That database is held by a non-profit organization or the government. A system where all users unite, active and inactive web users. Every user could define their most interesting platforms and status of activity which would lead to a cost per user index for each online magazine or web platform, based on consumption intensity of the average user, social networking value of the active user and staying-time frequency of each individual. In the end, the combined data of the website generates a platform coefficient which leads to a cost per user. This is the cost that advertisers want to book, right?

Spot On!
In the modern social media world registration processes become daily business for users. If it was one database as described above, the users would be held responsible. They would be more careful on how to define access and care about their data. From day to day, users get more open minded about showing their data on other media including registering their preferences, interests and hobbies. And platform owners benefit from that. In the future, it will become a state of the art for publishing houses and digital platform owners to have their own web community visible on the side-bar for new visitors. This is a huge success for web platform owners. What could be a better reference if you can show your audience, visual and accessible for everyone with avatar picture that the users upload themselves? Bloggers already use this option to attract more interest. The single user will become the reference for each platform.

So, what if the best targeting measurement of a platform becomes the cost per user (cpu)? If we think about how connected (via Google, Facebook or Yahoo) these platforms are becoming and see all the website and social media metrics we could monitor, the question rises: Is there an option to standardize registration on web platforms and communities plus integrating all the generated data of these platforms into one non-profit system or organization which calculates a cost per user index based on targeting criteria like b2b or b2c and different demographic data? Is Cost per User the next digital currency? The discussion is yours…