Category Archives: digital media

Pro Choice

I never had cable TV until I moved into New York City after college.  You needed the cable there because the big buildings interfered with the over-the-air signal.  Suddenly, a new world opened up, as I had access to several more channels, including HBO.

Cable tv

(Photo credit: Wikipedia)

I had more choice, and I was all for it.  Apparently, I wasn’t the only one either. Cable television contributed to the substantial drop in the broadcast network viewing from 1983 to 1994 when weekly broadcast audience shares dropped from 69 to 52 while basic cable networks’ shares rose from 9 to 26 during the same period according to A. C. Nielsen.  What had been a 6 or 7 channel universe now had almost 40!  100 channels was a dream for down the road and today’s world over several hundred channels seemed impossible.  But of course, as The Boss reminds us, there were 57 channels and nothing on.

Fast forward to today.  Our T/V (television/video) choices are unlimited.  The only real choice we need to make is who is going to do the programming – us or the channel’s programming department.  When we do it, we can watch what we want when we choose to do so.  We can binge on an entire season over a day and we probably won’t have to be interrupted by nearly as much advertising.  Allowing the channel to program our viewing means that those of us who don’t choose to make a decision about programming need not.  We can watch T/V as it traditionally was done – passively.

This changed environment has led to cord-cutters and cord-nevers.  After all, when 75% of people just want a “light” package of channels, paying more for the hundred the cable company chooses to carry seems silly.  As eMarketer predicts:

In 2015, there will be 4.9 million US households that once paid for TV services but no longer do, a jump of 10.9% over last year. And that growth will accelerate in the coming years, with the number of cord-cutting households jumping another 12.5% in 2016. In fact, by the end of next year, the number of US households subscribing to cable and satellite will drop below 100 million…Also noteworthy, the share of viewers who have never subscribed to cable or satellite (“cord-nevers”) is growing as well. This year, the percentage of US adults who have never subscribed to cable or satellite TV will reach 12.9%. That share will grow to 13.8% by 2016.

I have no doubt the cable providers will innovate – allowing you to upgrade your TV, for example, as the wireless carriers do your phone, bundling in streaming music, or changing their business emphasis entirely to being broadband providers (BYO Programming!).  But it’s going to be an interesting transition in the pro-choice video world.  You agree?

 

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Another Nail

Those of us who were fortunate to work in TV used to have a pretty good business, way back when.  You’d find a peach basket, open the window, and watch the basket fill up with money.  OK, it was a little harder than that, but TV has always been a business that grows exponentially in good times and shrinks only a little in bad times.  Growth was as reliable as the US Dollar.  So when I read the piece I’m about to show you, a quote from “The In-Laws” (one of my all-time favorite movies) jumps to mind: 

What do you think will happen when they run off this dough… and there’s trillions of extra dollars, francs, and marks floating around? You’ve got a collapse of confidence in the currency. People are gonna panic. There’s gonna be gold riots, atonal music… political chaos, mass suicide. Right? It’s Germany before Hitler. You can see that. Jesus, I don’t know what people are gonna do… when a six-pack of Budweisers costs $1,200. That’ll be awful.

In other words, when the basic currency of a business has changed substantially, chaos ensues.  It’s my belief that we’ve reached that point in media, as this report states:

For the first time outside of a recession, linear TV ad spend has stopped growing, according to global ad revenue updates by MAGNA Global and ZenithOptimedia, both released Monday. While national TV ad sales grew .3% to $42 billion in 2015, MAGNA predicted it will decrease by .3% in 2016. ZenithOptimedia’s Advertising Expenditures Forecast also found TV’s share of global ad spend will decrease from 38% in 2015 to 34.8% in 2018.

The basic currency – the TV CPM which is tied to the TV rating point – has lost its stability.  There are trillions (OK, billions, anyway) of extra GRPs available.  Pricing pressure has always been downward, but now there are options available that seem to be making that stick. I think we’re in a brief period where live events will hold pricing stable, but when only about a quarter of viewers are watching TV “live”, how long can that last?

This was the most ominous sentence in the piece: A shift in viewer attention and changing advertiser investments may therefore contribute to a decrease in both supply and demand for linear TV impressions.  The shift has happened.  The pretty good business is rethinking itself.  There will be political money and Olympics revenue in 2016 to serve as a band-aid as it does so.  But by 2017, the times could be, in the words of the Chinese curse, interesting.

Thoughts?

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Filed under digital media, Reality checks

Hurry Up!

I know you all want to hear another rant on ad blocking about as much as you’d like to hear an endless loop of Tiny Tim singing Tiptoe Thru The Tulips.  I’ll keep it brief, therefore.  A company called Soasta did some research with the Harris folks about what website users were looking for as they surf around.  Not surprisingly, they found the following (as reported by eMarketer):Most Important Attributes of Website Performance According to US Internet Users, Sep 2015 (% of respondents)

When it comes to website performance, internet users say personalized content is less important than a website’s ease of navigation and speed, according to a September 2015 survey. More than three-quarters of US internet users said that a leading attribute of website performance was that it was easy to navigate. Another top attribute was speed; 73% of respondents indicated so.

Here is a truism (at least one I’ve found) about digital interactions: people hate impediments.  It doesn’t matter if it’s a landing page from an ad that doesn’t go directly to the reason someone clicked on the ad or if it’s just a plain old web page.  People are pressed for time.  Any impediment we put in their way has a high likelihood of derailing the interaction.  Web pages that are slow to load because of external calls get closed.  For you non-technical people, that means when the page calls out for an ad (especially if it needs to fill the ad via a programmatic auction), or some behavioral tracker, or anything else like analytics.  Popups are an impediment as well – it’s something in between the user and what they are trying to do. The research bears this out.  Personalization, on the other hand, can help speed up the interaction since it’s based on the user’s likes and preferences.

Ad blockers generally speed up page loads.  That is one of the main reasons people use them besides avoiding tracking.  If we help people hurry up, maybe they will, in return, be more responsive to the marketing information we present instead of doing all they can to avoid it.

Make sense?  What are your thoughts?

 

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