Category Archives: digital media

I Want To Watch

Yet another brouhaha over privacy has reared its ugly head and the group which represents marketers – the Association Of National Advertisers (ANA) – has weighed in on the topic. In a blog post entitled “Don’t Bother Us With The Facts“, the ANA talks about a new set of privacy rules contemplated by the FCC. Their quarrels have to do with the complexity of the rules and the timeframe given for analysis and comment before the new rules go into effect. That, however, isn’t our topic today.

Logo of the United States Federal Communicatio...

(Photo credit: Wikipedia)

The thing I’d like to discuss is a quote at the end of the post. The new rules are going to be imposed on broadband providers – generally, your cable company or telephone provider. It says:

Most importantly, ANA will remind the FCC that “there’s no free lunch,” and that consumers receive information today at little or no cost in return for companies’ ability to reach them via directed advertising that surveys show are acceptable to consumers. This approach has fostered a healthy, vibrant, and economically valuable Internet and mobile media ecosystem that must not be allowed to be severely undermined.

I have an issue with that since the topic isn’t monetization of websites and content but the ability of ISP’s to make extra money capturing and selling information about their customers. These customers (that’s us, folks) pay handsomely for our broadband service, a service which is generally inferior to that found in other countries with respect to speed and bandwidth caps (we rank somewhere in the low teens in terms of countries ranked by average speed). Is it too much to ask that we give permission to yet another entity monitoring and monetizing our behavior?

Another lobbyist stated that requiring consumers’ opt-in consent to behavioral targeting, would prevent broadband providers “from efficiently monetizing online data in the same way that Google and Facebook have long done, with astounding consumer benefits.” Sorry, my friend. Google and Facebook provide a free service. Anyone you know receiving free broadband access in return for being tracked?

Unless and until everyone involved in marketing recognizes that consumers should control what data they give to which entities in return for what benefit, problems such as ad blocking aren’t going to go away. The customer is in control now, and tracking them just because you want to watch what they’re up to can undermine even the best marketing.  Do you agree?

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Filed under digital media, Huh?

Quit Yelling At The Kids

Any of us who are parents have felt the need to yell at the kids.  Maybe it’s during the terrible twos when every request is met with “no” or maybe it’s when they want to know “why” to any statement that passes your lips.  It’s hard not to use the words you swore you’d never utter: “because I said so.”  Hopefully, you resist the urge to yell as well, since the tone and volume become way more important than the actual words.

There is a business lesson in there, one that’s supported by some research from the folks at Lithium Technologies.  They asked the Harris Poll people to look into how effective ads were in social media news feeds.  As this report summarized it, the research:

…found that 74 percent of millennials (ages 20 through 39) and Gen-Z respondents (16 through 19) object to being targeted by brands on their social media feeds. Even more ominous for brands: 56 percent of the nearly 2,500 respondents to the study said they have reduced social media use or eliminated it altogether due to ads in their news feeds.

In other words, not only are you turning off your target to your stream by force-feeding them messages but you might just be enticing them to be less visible to you as they migrate to other, less cluttered environments.  We all need to remind ourselves that social media is about connecting with friends.  Shouting at them, especially if that about which you’re shouting is not about them but about your brand, is misguided.  It’s the person you invite into your home for a cocktail party that becomes the unwanted center of attention, singing loudly, dancing around, and otherwise embarrassing themselves.  Party over.

The report has a good reminder: we build trust by talking with, not at, our customers.  So quit yelling at the kids, won’t you?

 

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Filed under Consulting, digital media

The End Is Nigh?

Walk around any big city and inevitably you’ll come across some person wearing or carrying a sign proclaiming that the end is nigh.  They’re warning about an impending apocalypse.  While they’re generally seen as a little odd (a polite way of saying nuts), I suppose at some point they’re going to be right.  Hopefully, that time isn’t close.

With that preface, and with the recognition that my timing might be off, I think we’re seeing signs that the end is nigh for the TV industry in which I grew up as a businessperson.  If you’ve been paying any attention to the media landscape over the last decade, you’ve seen some changes in what I’ll call Big TV (cable and broadcast).  To a certain extent, TV has adapted and their basic revenue model hasn’t changed a whole lot.  Sure, broadcast TV has done a good job of mirroring the cable model of dual revenue streams by gaining carriage fees, but the ad model – dollars for eyeballs – is pretty much the same as when I sold, even though the demographics are a bit more precise as the industry adopts additional data sources.

So why is the end nigh?  Let me offer a quote from YouTube’s CEO as presented at their “newfront” and quoted by Cynopsis:

 

To make her case, CEO Susan Wojcicki rattled off a startling statistic: “YouTube now reaches more 18–49-year-olds than any network ­ broadcast or cable,” she said. “In fact, we reach more 18–49-year-olds during primetime than the top 10 TV shows combined.” Her assertion is backed up by a Nielsen study of US viewers that Google commissioned. Wojcicki also confirmed news that broke earlier in the week: Between 2016 and 2017, Magna Global,Interpublic’s ad-buying unit, has committed to spending at least $250 million on YouTube instead of TV.

It’s a truism in media that dollars follow eyeballs (eventually).  Other than live sports and breaking news, those eyeballs have been departing the BigTV guys for a while, at least in the traditional form via the traditional channels (we program, you watch when we offer a show). While the digital dollars have been increasing (and will pass TV spending this year), very few marketers admit to cutting TV for digital.  Magna has because according to them, 18- to 49-year-olds watch an average 26 hours of linear TV per week, down from 32 hours in 2009.  Dollars follow eyeballs. As Adweek reported:

Magna Global’s $250 million investment in YouTube advertising will come straight from its TV budget. The $250 million investment is four to five times Magna Global’s typical YouTube budget. As a result, the firm will spend less on traditional marketing overall this year as TV ratings dip.

So you tell me – is the end really nigh for Big TV or am I just another nut carrying a sign around?

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Filed under Consulting, digital media