Recession Reflections

Last night they were shooting a commercial at my next door neighbor’s house. The actual production for a 30 seconds spot took a few hours. The preparation probably took months. When I asked who the client was, I was told that it was Wal Mart. I was surprised by the fact that the low price leader was shooting the spot in a neighborhood that is considered upper middle class. The house itself is valued at over one million dollars and does not qualify as the house of a Wal Mart shopper. As a matter of fact my neighbor does not shop at Wal Mart. As I thought about what was happening next door, I remembered the true purpose of advertising: to create an emotional connection with the consumer that drives sales.

Regardless of what media we use to convey the message, we need to work with strategic and creative folks dreaming up ad formats or spots that create a memorable experience and drive consumer action. Google has its search algorithm that basically increases options for the buyer and s/he will eventually make a choice and purchase a product or service. Marketers and agencies need to develop strategies and campaigns that place their clients at the top of brand awareness as well as online searches. It is at this stage when that emotional connection plays a key role. Brand awareness and brand marketing are important, but only in their direct correlation to intent and purchase. At the end of the day the only metric in marketing that really matters is revenue and agencies that generate revenue for their clients will keep happy clients.

Media buyers and planners need to understand the new rules of play. Ratings still count and provide you critical mass. However, old media is transitioning to new media and new media is about two way communication and engagement. Planners and buyers, please understand the relationship between media and their audience, how media affects, if it does at all, the behaviors and patterns of audiences. Understand how exposure to advertising on different media can affect the business your clients are running.

Recent metrics indicate that the average user spends 32.7 hours each week on the Internet, and only 16.4 hours watching TV. (IDC). Consumption of newspapers and magazines have declined dramatically and in part that is due to the increased use of internet. TV still commands the lion share of media budgets but online has seen double digit growth in the last 5 years. In countries like England, online budgets already surpassed TV buys and the US is not far behind. A recent study by IBM reports that online video is cannibalizing TV viewership and that corroborates that statement.

The Web has also increased options for measuring and therefore accountability for agencies recommendations. Digital media can almost always be used to measure some element of response and this makes all marketing either direct or indirect marketing. Direct marketers embraced the medium early on because it is the best platform for getting consumers from awareness to transaction the world has ever seen, yet few advertisers leverage the Web as a transaction platform. Marketers are still learning how to integrate branding and transactional ads. Most are just moving TV ads to the new medium and failing to take full advantage of the engagement capabilities of the Web. Just look at the fact that 90% of online ad dollars are invested in two media that fail to drive memorable engagement: banners and text ads. Keep in mind that ROI is what every client measures at the end of the year.

We Have Been There Before

Radio Was the New Media in the Late 1920’s. The Web and Mobile are the New Media in 2008. Are You Ready to Embrace Them?
In the late 20’s, new media “radio” underwent a seismic shift. Successful companies were trying new types of advertising. Procter and Gamble tried something more creative and radio 2.0 turn into a content marketing machine. P&G outspent their competitors by 30% with the creation of their own content and programming. They were so successful during the 30’s that by the time the depression was over they had created an entire category of show – the Soap Opera!

What about online video and video on demand (VOD)? Learn more at
www.luminacion.com and here.

We are in the middle of another seismic change that is driven by the Web and mobile. The market conditions are similar to the depression of the 1920’s. The magnitude of the current economic problems is highlighted by the current situation of corporations like General Motors that may be 3 months away from filling for bankruptcy and the comments of Time Inc. CEO Ann Moore: “By this October it was looking like 1931,” she said. “[Time Inc.] has never had so many advertising clients in trouble at the same time. The declines are stunning.” Moore added that she didn’t care if it technically isn’t a recession. “It is one for us.”

During OMMA Mobile conference last week in Los Angeles, I confirmed that Hispanics are top consumers of mobile content. They are in everybody’s radar from Nielsen’s reports, to information that the mobile ad networks gather. At the conference, Nic Covey, Director of Insights at Nielsen Mobile, presented data obtained via their new Mobile AdRelevance database, a mobile version of the Nielsen’s Online ad-tracking service. According to this information, many of the leaders from the online space have carved the top positions in the mobile world. The data shows that the top mobile Web destinations are ad-supported and are for news, information, or entertainment leaning brands. On the other hand, the leaders in overall mobile Web traffic are communications, search and navigation destinations.

The emerging mobile media in the U.S. resembles the online world from 7 years ago. What is promising is the fact that the adoption of services like SMS and media packages are increasing and made possible by the next generation mobile devices that compete with the i-phone. Consumer marketing brands are slowly warming up to the mobile opportunity and there are a few success stories that prove how this medium can help brands move the needle on brand awareness and sales. According to Nielsen's top rankings of "SMS brands” Coca-Cola was the only consumer brand to get top rankings in a list dominated by media, entertainment or information services. "My Coke Rewards" text-messaging program is ranked among the top 10 with a million people participating in this every month.

When we look at the Hispanic market and reports on mobile usage, it is also a promising market. The key to success seems to be the participation of teams that understand the media and the market segment and take part in the planning and execution of campaigns. The mobile concept is to open up a more “personalized” dialogue that allows for “self-expression” of your audiences or consumers. It is about a conversation, not just pushing or pulling messages. Mobile campaigns should not be considered an afterthought. If executed properly, they produce high return on investments and consumer loyalty.

The need for integration in the overall marketing plan is crucial. You need to support the initiative with a mix of new and traditional media. There are a lot of mobile applications that could be used just like we use widgets in the online world but a good rule of thumb is to keep it simple. The Coke SMS success proves it. Consumers are willing to participate and need incentives that will motivate them to enter the dialogue. Brands have to understand that consumers are in control and they have to invite you into their lives.

A few ideas on mobile applications that could resonate with different segments or could be used in conjunction with traditional media to engage new users are bellow:

1) Mobile and online social networks that integrate music, games, entertainment or information. The content has to resonate with your audience.
2) Working with bloggers that have large audiences and specialize in specific industries or segments.
3) Integrating geo location on your mobile social network when your product or service targets young demos.
4) A variation of the above could target adults with store locations and special incentives like discounts, coupons, sweepstakes, etc.
5) Integrating mobile search in your campaign, just like online.


Mobile To Transform Portable Gaming
From Advertising Age
Apple's iPhone 3G and its game-heavy AppStore may well push mobile gaming into the mainstream, Ad Age reports, in much the same way that the Web brought casual gaming to the masses. The trade pub points out that it wouldn't be very difficult for the likes of Apple and Google to develop an in-game ad network for their mobile phones. Google, for example, already owns an in-game network. Microsoft, which owns the in-game ad network Massive Incorporated, is also rumored to be working on its own phone. Sony, which has the PSP portable gaming device and the Sony-Ericsson line of phones, is also rumored to be working on a PSP phone. It has its own in-house in-game advertising team and has partnered with ad networks like IGA.

"The thing with casual gaming is that it hits a much bigger demographic than console games that just tend to attract younger men, so now with mobile gaming you have an even greater potential for generating ad revenue, more than PC games ever could. More people have phones than PCs, and they're using them more often and with more [downtime and] opportunities for gaming," said Rob Enderle, principal of the Enderle Group. A recent study from NPD Group corroborates those claims, finding that smartphone users play games more often than they use business-related functions. According to the study, playing games was the most increased use of the phones over the last three months. - Read the whole story.


Remember, you need to integrate mobile in your master plan and support it with the appropriate media mix. For more information, call us or email us at 866-798-5577 x 111 or ivan@ethosagency.com


Quote
Technology presumes there's just one right way to do things and there never is.

Robert M. Pirsig

We Have Been There Before

Radio Was the New Media in the Late 1920’s. The Web and Mobile are the New Media in 2008. Are You Ready to Embrace Them?
In the late 20’s, new media “radio” underwent a seismic shift. Successful companies were trying new types of advertising. Procter and Gamble tried something more creative and radio 2.0 turn into a content marketing machine. P&G outspent their competitors by 30% with the creation of their own content and programming. They were so successful during the 30’s that by the time the depression was over they had created an entire category of show – the Soap Opera!

What about online video and video on demand (VOD)? Learn more at
www.luminacion.com and here.

We are in the middle of another seismic change that is driven by the Web and mobile. The market conditions are similar to the depression of the 1920’s. The magnitude of the current economic problems is highlighted by the current situation of corporations like General Motors that may be 3 months away from filling for bankruptcy and the comments of Time Inc. CEO Ann Moore: “By this October it was looking like 1931,” she said. “[Time Inc.] has never had so many advertising clients in trouble at the same time. The declines are stunning.” Moore added that she didn’t care if it technically isn’t a recession. “It is one for us.”

During OMMA Mobile conference last week in Los Angeles, I confirmed that Hispanics are top consumers of mobile content. They are in everybody’s radar from Nielsen’s reports, to information that the mobile ad networks gather. At the conference, Nic Covey, Director of Insights at Nielsen Mobile, presented data obtained via their new Mobile AdRelevance database, a mobile version of the Nielsen’s Online ad-tracking service. According to this information, many of the leaders from the online space have carved the top positions in the mobile world. The data shows that the top mobile Web destinations are ad-supported and are for news, information, or entertainment leaning brands. On the other hand, the leaders in overall mobile Web traffic are communications, search and navigation destinations.

The emerging mobile media in the U.S. resembles the online world from 7 years ago. What is promising is the fact that the adoption of services like SMS and media packages are increasing and made possible by the next generation mobile devices that compete with the i-phone. Consumer marketing brands are slowly warming up to the mobile opportunity and there are a few success stories that prove how this medium can help brands move the needle on brand awareness and sales. According to Nielsen's top rankings of "SMS brands” Coca-Cola was the only consumer brand to get top rankings in a list dominated by media, entertainment or information services. "My Coke Rewards" text-messaging program is ranked among the top 10 with a million people participating in this every month.

When we look at the Hispanic market and reports on mobile usage, it is also a promising market. The key to success seems to be the participation of teams that understand the media and the market segment and take part in the planning and execution of campaigns. The mobile concept is to open up a more “personalized” dialogue that allows for “self-expression” of your audiences or consumers. It is about a conversation, not just pushing or pulling messages. Mobile campaigns should not be considered an afterthought. If executed properly, they produce high return on investments and consumer loyalty.

The need for integration in the overall marketing plan is crucial. You need to support the initiative with a mix of new and traditional media. There are a lot of mobile applications that could be used just like we use widgets in the online world but a good rule of thumb is to keep it simple. The Coke SMS success proves it. Consumers are willing to participate and need incentives that will motivate them to enter the dialogue. Brands have to understand that consumers are in control and they have to invite you into their lives.

A few ideas on mobile applications that could resonate with different segments or could be used in conjunction with traditional media to engage new users are bellow:

1) Mobile and online social networks that integrate music, games, entertainment or information. The content has to resonate with your audience.
2) Working with bloggers that have large audiences and specialize in specific industries or segments.
3) Integrating geo location on your mobile social network when your product or service targets young demos.
4) A variation of the above could target adults with store locations and special incentives like discounts, coupons, sweepstakes, etc.
5) Integrating mobile search in your campaign, just like online.


Mobile To Transform Portable Gaming
From Advertising Age
Apple's iPhone 3G and its game-heavy AppStore may well push mobile gaming into the mainstream, Ad Age reports, in much the same way that the Web brought casual gaming to the masses. The trade pub points out that it wouldn't be very difficult for the likes of Apple and Google to develop an in-game ad network for their mobile phones. Google, for example, already owns an in-game network. Microsoft, which owns the in-game ad network Massive Incorporated, is also rumored to be working on its own phone. Sony, which has the PSP portable gaming device and the Sony-Ericsson line of phones, is also rumored to be working on a PSP phone. It has its own in-house in-game advertising team and has partnered with ad networks like IGA.

"The thing with casual gaming is that it hits a much bigger demographic than console games that just tend to attract younger men, so now with mobile gaming you have an even greater potential for generating ad revenue, more than PC games ever could. More people have phones than PCs, and they're using them more often and with more [downtime and] opportunities for gaming," said Rob Enderle, principal of the Enderle Group. A recent study from NPD Group corroborates those claims, finding that smartphone users play games more often than they use business-related functions. According to the study, playing games was the most increased use of the phones over the last three months. - Read the whole story.


Remember, you need to integrate mobile in your master plan and support it with the appropriate media mix. For more information, call us or email us at 866-798-5577 x 111 or ivan@ethosagency.com


Quote

Technology presumes there's just one right way to do things and there never is.

Robert M. Pirsig