Posts Tagged ‘Digital’

TRANS-EURO EXPRESS

October 16th, 2012

I have been presenting a great deal in mainland Europe over the past year or so, and I have to say that I am having some of my preconceptions challenged by what is going on over there.

One of the major benefits of a career in media research in the UK is that, on most indicators, we have the most digitally advanced market in the world and the levels of creativity and innovation used to harness digital technology for marketing purposes has been well recognised. Most European broadcasters would accept that the UK is a year or two ahead in most respects, and they are interested in what we are doing here as a result.

Things are beginning to change, though, and the UK could learn a thing or two about what is happening elsewhere in Europe.

For example, I presented in Poland recently and saw firsthand some of the creative solutions that are being presented to advertisers to enable them to more effectively integrate into TV content. It rivalled many of the case studies I have seen from the UK demonstrating how broadcasters, agencies and brands can work together.

Or take Italy. Since Silvio Berlusconi loosened his grip on Italian politics, many of the regulatory restrictions he placed on digital development to protect his analogue-era media powerhouses are being dismantled, leading to a technology-led transformation of the TV experience (according to a recent New York Times article) and a significant shift in viewing from the cocooned Mediaset channels to quality alternatives such as Discovery Channels, which has recently launched two free-to-air channels. The Italian experience shows just how quickly the market can change once digital regulation is opened up and competition, creativity and innovation are unleashed.

Sweden provides a very different example, which also offers potential lessons for UK media. The Swedish market is one of the most technologically advanced in the world, but the advertising powerhouse is considered to be good old-fashioned newspapers. This is because Swedes pride themselves on their education levels and interest in the world around them, and newspaper readership is considered a symbol of these values. It is also in large part due to the power of the local press to service the significant local advertising industry in Sweden; the leading free-to-air broadcasters have invested in dozens of localised transmissions to take a share of those local revenues from an estimated 36,000 potential advertisers.

The local advertising market in the UK has always been considered hardly worth bothering with, especially as television advertising opportunities for local advertisers significantly reduced with the pulling back of ITV’s regional franchise system. I think this is a lost opportunity and offers one of the few substantive opportunities for addressability. I’m generally sceptical about how important addressability will become, but unlocking the regional and local advertising opportunities that still exist could be a simple yet valuable solution to a revenue challenge.

 

 

HAS US PRIME TIME LOST ITS SHINE?

October 16th, 2012

According to a recent academic paper by a professor at the University of Pennsylvania, there has been an increasing collective interest in death and dying within American society, and it has been growing consistently for several decades. It certainly seems to have permeated the US media industry, and particularly its industry press, which has been chirruping recently about the dramatic falls in viewing the US networks have been experiencing in the last month or so, and the signal it sends that Americans are (finally!) drifting away from their television sets for good.

The New York Times reported under the headline ‘Prime-time Ratings Bring Speculation of a Shift in Viewing Habits’ that the combined network audiences were down by double digit levels year on year, with the comment “I think we are at a tipping point in how people are going to watch shows”. The LA Times breathlessly reported that “the prime-time television ratings drop took centrer stage at the Digital Content NewFront presentations in New York, with former ABC Entertainment Chairman Lloyd Braun seizing on the numbers as an opportunity to talk about changing viewing habits — and the rise of digital media”. Well, he would, wouldn’t he?

A single month of poor figures and the prophets of doom and gloom immediately assemble to pick over network television’s carcass. Except, there is no body to scavenge and the numbers being touted suffer from some basic misinterpretations!

Thanks to my good friend, Dr. Horst Stipp of the Advertising Research Foundation, I have managed to get hold of some Nielsen figures, which put a different light on the numbers.

The first thing to note is that the numbers relate to the 4 week period ending 12th April. Now, first of all, a four week period is hardly enough time to suggest the death of the dominant digital media channel, but sadly that is the short-termist nature of the world we live in. However, it wasn’t just any 4 week period; it was a period which contained both the Easter and spring breaks this year, but not in 2011. TV viewing suffers during those two periods, as anybody who has tried to get out of a major US city during Easter weekend will tell you. So, for a start, the analysis compares apples and pears.

The analysis is also incomplete. It only takes into account viewing to the main commercial networks (across one of their traditionally weaker audience periods) and, like most markets with a vibrant multi-channel offering, their share of viewing has been declining consistently, for something like 24 consecutive months. It also only includes live and same day viewing; so much of the timeshift viewing that has long been a feature of US TV viewing is taken out of the equation.

If we were to base the analysis on a longer time-span and a like-for-like comparison of all television viewing, Nielsen data shows a much more settled picture. For example, across the whole of the first quarter, total viewing is up and viewing amongst the all-important 18-49 demographic – the cord cutters and Netflix addicts (supposedly) – was actually up 2% on 2011.  In fact, across the whole TV season, from September 2011 to April 2012, both all individuals and 18-49 TV viewing levels were up on slightly on the previous year – and that, remember, is coming off a very high base.

There is a depressing familiarity to the speed with which this ‘TV is dying’ narrative continues to re-emerge. It only takes a few weeks’ data to set it off again, it is woefully ignorant of the context (e.g. the importance of Easter in the comparison) and it is based on wishful thinking, reminiscent of a time when “if we build it, they will come” was a staple phrase in most digital business plans.

THE OPPOSITE OF A BRAND ADVOCATE

October 16th, 2012

I conducted a piece of brand research a couple of years ago, which dared to raise a question few people in marketing ever ask; “are there any brands out there that you would refuse to buy, at any price?”

The answer, at the time, was an unqualified ‘yes’! It was remarkable how many markets and brands were deemed toxic by consumers, many of them in the services sector. These were spontaneous outpourings of rage – we just gave them time to get it out of their system. There were many numerous examples of poor, almost non-existent customer service, especially at those times when customers are most in need; when the technology goes wrong.

There are several brands already banished from the Brennan household, mainly due to the above complaint, but my recent Escher-esque dealings with Microsoft have resulted in an addition to the toxic brand gang. I won’t bore you with the details, but it consists of many failed attempts to re-access a closed Hotmail account (bloody hackers!) leading to a constant loop around the message boards for a solution. At least I knew I was not alone; endless exhortations to the God of Inaccessible Alternate Email Accounts came from around the globe, with not a single answer to pacify them. It has been more trouble than it has been worth, so I’ve just opened a Google account instead.

But it’s refocused my attention on the problem of toxic brands because, sure as eggs is eggs, if I asked that same question today, there would be even more candidates across even more markets . In fact, I would bet good money that the number of brands spontaneously placed in the toxic category would outweigh those in the ‘buy at any price’ equivalent.

Which is odd, really, because the industry spends so much money on the latter. One of the myths of social marketing is that brand advocates will lead the way, spreading the good word in a way that paid-for media could never achieve. But one thing I’ve learned over the years is that people with a grievance outshout the satisfied every time. Try it the next time you’re at a dinner party and the conversation has dried up. Ask the question “are there any brands out there that you would refuse to buy, at any price?” and listen to the grievances pour out. There will be no more awkward silences, I can promise you.

So why isn’t more invested into the opposite-of-advocates (see, they haven’t even got a recognised name)?  I believe their existence is a failure of marketing and a challenge for media planning – after all, why try to reach them? But it is largely due to the increasingly digital mindset of technology-led services. I explore this whole issue of digital vs. analogue mindsets in my new book (shameless plug), focussing on the enduring ‘analogue’ strengths of TV, but the digital vs. analogue paradigm extends across the marketing spectrum.

For many digital-mindset brands, it is virtually impossible to speak to or even email a real human being representing the company. As a consumer, your key interaction with the brand – when you most need them – will all too often result in an online infinity loop or, at best, a highly scripted, often surreal interaction with what may or may not be a real human voice. There is little room in either ‘brand experience’ for analogue qualities such as ‘common sense’, empathy or lateral thinking. As such, the services industry often struggles to match branding promises against the reality of faceless, commissioned, unresponsive CRM based on algorithms, efficiency and ‘hands-off’ customer servicing.

There are technology-based brands that get it, and these are often what I would call analogue-mindset businesses. Companies like Apple and Sky are far more customer-focussed, responsive and…well, just a bit more human in how they interact with their customers. All of the latest insights emerging from neuroscience, cognitive psychology and behavioural economics have opened our eyes to what those analogue qualities are worth in business terms, and I’m surprised that so many technology brands have failed to grasp that fact.

It’s interesting that I’ve just mentioned two brands with more than their fair share of brand advocates, but they are also two brands that rarely get mentioned when the ‘toxic brand’ question is asked. But then the question itself rarely gets asked in the rush for Facebook ‘likes’ and brand champions.

In the meantime, I’d suggest a bit more focus on the ‘opposite-of-advocates’ would yield a great deal more in the way of business performance. If you want to find out who they are, or how strongly they feel, just ask that question at your next dinner party. Then lean back and listen to the roar. You might not get invited back, but you’ll be much better informed.



CONNECTED TELEVISION – How TV’s Analogue Strengths Have Created a Digital Supermedium’