The new word in Presidential politics — blog
Friday, October 31st, 2003The new word in Presidential politics — blog
According to Wired’s Lawrence Lessig, “Whether or not it elects the next President, the blog may be the first innovation from the Internet to make a real difference in election politics.” This wonderful article contains some valuable insight from Joe Trippi, Howard Dean’s campaign manager.
You will absolutely suffocate anything that you’re trying to do on the Internet by trying to command and control it.
Yahoo ends its paid video service
Friday, October 31st, 2003Yahoo ends its paid video service
In news that should come as no shock to those who regularly read this blog, Yahoo is reported to be dumping its paid video service. According to Reuters, outsiders briefed on Yahoo’s plans said the move reflects a broader shift away from a pure subscription model for Web video to one in which it is supported by a combination of advertising and other fees, such as broadband access. There are still many companies (ABC, RealNetworks) that cling to a subscription model for video and other content on the Web, and there will likely always be a limited market for such. But the advertiser-supported MSN Video concept announced just a few weeks ago is causing everybody to take a second look at the idea of paid content. In the video on demand world into which we’re headed, the market will determine what we’ll pay for and what we won’t, just as it does today. I think the idea of paying individual Web sites for their content will eventually give way to ISP-driven models. I don’t pay HBO directly. Why should I pay Yahoo? Moreover, it is newspapers, with their history of a subscription revenue base, that insist users will pay a subscriber fee for their online content. Television stations (and Networks), who’ve grown up with an entirely advertiser-driven revenue model, have long been envious of their print counterparts, but the truth is THEY are in the driver’s seat when it comes to online video, because they must know advertisers will pay to be a part of it.
The case for open standards for online streaming
Thursday, October 30th, 2003The case for open standards for online streaming
Imagine how different the world would be if you had to purchase a different television set to view each channel. That’s the question posed by VBrick CEO, Rich Mavrogeanes, in a wonderful commentary in CNet’s news.com. “Streaming media can only thrive,” he says, “if there is one standard. It is now time to put an end to the “click here to view with this, that or the other player”–not just to eliminate viewer confusion but also to reduce costs by eliminating the need for each streaming media content provider to host multiple systems.” This is an important concept, and I think Mavrogeanes is right. As we’ve shown in the past, broadband allows anybody to be a TV station, but that idea won’t realize its potential unless and until a single standard is accepted and applied. This is why I so like the technology of EyeWonder, the Atlanta company specializing in playerless streaming.
Creating a new brand for young people
Thursday, October 30th, 2003Creating a new brand for young people
As we’ve reported previously, the newspaper industry seems far ahead of local television in strategies to woo young people. The best so far is the creation of separate papers — and in some cases Websites — the target young people. They’re looking for revenue, of course, but the primary reason for the free daily tabloids launched by Gannett and Tribune is an attempt to bring the concept of newspapers to young readers. A Dow Jones Business News story on the subject yesterday contains a couple of compelling quotes by Fred Searby, who follows the newspaper industry for J.P. Morgan. As you read these quotes, think of the local television industry.
“The Achilles heel for the newspaper industry is that young people aren’t reading the newspaper. They get their (information) from somewhere else.”
A question I often hear from broadcasters is, “How do we reach out to these young people without alienating our core audience?” The answer is to diversify and compete with yourself. Newspapers have figured out that by competing with themselves, they’re not only able to help their market share, but they’re also planting the seeds for a newspaper-friendly future. We should be so smart.
Deutsch: “People like advertising.”
Thursday, October 30th, 2003Deutsch: “People like advertising.”
Donny Deutsch,advertising exec and host of upcoming CNBC specials about media, says that TiVo won’t kill off commercials. In an interview with I Want Media, Deutsch says that PVRs don’t mean an end to the 30-second commercial.
“There have been a lot of things that people over the years have said would kill off the 30-second commercial, including the Internet. I think people like advertising. It’s not going to go away. Even in the early research of TiVo, a lot of people were not zapping through the commercials — particularly beer commercials, which are entertaining, and pharmaceutical commercials, which are so informational. If anything, I think [PVR technology] will force advertisers and agencies to take their game up and make sure their messages are relevant, engaging and very informational.”
It’s not just the programming, stupid!
Wednesday, October 29th, 2003It’s not just the programming, stupid!
The folks at A.C. Nielsen have responded to network allegations that sloppy research produced this year’s sharp decline young male viewers, and the networks aren’t happy. Interpublic’s Magna Global USA unit analyzed the Nielsen data and came to the conclusion that young men simply aren’t watching network TV as much as they used to. They cited video games, DVDs and the Internet. Steve Sternberg, senior vice president-audience research at Magna cut right to the chase, “It’s the programming, stupid.” Of course, our favorite ostrich, Alan Wurtzel, president-research at NBC, disagrees, “I do think we’ll find out there was something wrong in the methodology.” Isn’t his naiveté cute? The truth is it’s not just the programming. The culture is shifting to one where entertainment is interactive, not passive, and it strikes at the heart of the most passive medium of them all, television.
Bob Pittman, perfect for Al Gore
Wednesday, October 29th, 2003Bob Pittman, perfect for Al Gore
TV Guide’s J. Max Robins is reporting that Al Gore is talking with former MTV boss, Bob Pittman, about his new television news network for young people. According to the report, Gore and Pittman are talking “about everything from content to where they should locate.” I like Bob Pittman. He’s one of the smartest folks around, and while his most recent job with AOL/Time Warner didn’t amount to much, he knows the audience Gore is trying to reach. He also knows the Internet, something that will have to be an integral part of this whole venture. Keep an eye on this, because the idea is much more viable with Pittman involved.
Viewers would watch ads they could choose
Tuesday, October 28th, 2003New research: Viewers would watch ads they could choose
According to new research by The Media Kitchen and InsightExpress, the principal reason people buy new communications technologies is to “have more control over their entertainment/available content.” As a result, disruptive advertising strategies don’t work anymore. All is not lost for advertisers, however, because the research found that a considerable number of consumers would actually be more receptive to advertising if the technologies — and marketers that utilize them — simply would make certain changes, such as giving users the ability to choose their own ads, providing promotional offers with ads, or defraying the cost of media technology with advertising. None of this should come as a shock to anyone who is a regular reader here. Postmoderns are so, in part, because technology has freed them to experience life at a different level than those without it. They/we are the new consumers, and we’ve developed a distaste for those institutions that get in the way of our experience. Advertisers would do well to listen to the message of this research. Engaging the audience begins with the simple acknowledgement that they are in charge.
| % Who Would Be More Receptive To Ads If… I could choose the ads I see: 44% Cost of technology was lower with ads: 38% Included promotional offers: 29% None of these: 29% Looked and felt like a short movie: 13% |
If nearly half of these technology users would watch ads they could choose, imagine how many would view news/information items they could likewise choose. Video News On Demand (VNOD) is clearly the future in trying to meet the information needs of Postmoderns.
TV via your mobile phone
Monday, October 27th, 2003TV via your mobile phone
Nokia has a little surprise in store for broadcasters — a new phone that doubles as a TV set. The company is reportedly creating handsets that will offer TV companies in Europe a chance to bypass telecom operators and broadcast programs straight to mobile phones. The new protocol is called DVB-H [digital video broadcasting for handsets]. The sets are seen as a bridge between today and the G3 digital networks expected to be operational in Europe in 2007.
There launches today AMP#151; Postmoderns rejoice
Monday, October 27th, 2003There launches today — Postmoderns rejoice
The virtual world, There, officially launched today after months of beta testing, and it’s a concept that bears watching closely. For the uneducated, There is a gathering place where people can try out identities, make friends, play games, shop, and just hang out. As Time notes, “Plenty of activities are available — dune-buggy racing, dog training, jet packing — but don’t confuse There with a video game. Nobody’s keeping score. It’s more like a massive playdate. Everything from the cute Toy Story-style graphics to the clothing stores where characters can dress up in the latest fashions (provided courtesy of Levi’s and Nike) is designed to give you something to chat about.” 
There is only for Windows PC users and requires a fairly high-end processor. When the $37 million start-up opened for testing in January, the innovators were hoping for a user base of 2,000. They were overwhelmed.
Newspapers may face Nielsen-like ratings
Friday, October 24th, 2003Newspapers may face Nielsen-like ratings
Newspapers have always offered only daily average circulation numbers to advertisers. The Sunday paper has its own circulation number (because it’s higher), but the other 6 days are averaged together, much to the chagrin of advertisers. It doesn’t matter which day your ad runs. The cost is the same. In terms TV people understand, it would be like selling an overnight spot at a prime time rate. Advertisers have known they were getting screwed, but they were powerless to do anything about it. Now comes word, in an Editor & Publisher story, that when the Audit Bureau of Circulations (ABC) board members meet in early November, they’ll be considering requiring newspapers to report circulation averages by each day of the week. This has advertisers thrilled and newspaper executives shivering. A lot of people feel that television’s downfall began with Nielsen meters that tracked viewership minute-by-minute. That led to the concept of “managing audience flow,” which is what most TV stations are concerned with these days. Advertisers love the meters, because they can prove bang for the buck. So what’s going to happen now to the Tuesday paper, the least read paper of the week? We can only imagine, but watch for attempts to boost that particular day.
Millenials, aka Generation-Y, are the new consumer force
Friday, October 24th, 2003Millenials, aka Generation-Y, are the new consumer force
The foundational truth of DONATA Communications is that the windstorm of change enveloping media these days is due to a cultural shift, not technology alone. Postmoderns are such, in part, because the technologies created by Modernist generations have enabled them to view life in an entirely different fashion. This will only accelerate as time goes by, and the velocity of that acceleration will be staggering in the next few years. We write about this because nobody else is, but from time-to-time, empirical evidence comes along to validate our position, and we are inspired to carry on. So it is with new research from brand-planning think tank scenarioDNA as reported in MediaDailyNews.
scenarioDNA will launch a quarterly tracking report in January entitled “Ignite! Youth,” focusing on the media habits of consumers between the ages of 14-24. Early reports show that these young consumers take media more for granted, have higher expectations for it, and are also among its biggest critics. They generally go with the undercurrent, and look to their peers more than anyone for guidance and recommendations. “Marketers need to reach the Gen Y leaders to pull the masses,” says Tim Stock, managing director and co-author of the study.
It may seem redundant to say young people are demonstrating an advanced technological involvement versus previous generations, but evidence proposes this might be directly related to the counter-culture connotation still attached to the Internet. Millenials don’t want to be force-fed anything, and they prefer, unlike previous generations, to be in control of their media environment, something the Internet certainly affords them.Also, while 60% of Millenials go to the movies at least once a month, 41% go to see independent films several times a year. They also cite the Internet and their friends over TV and outdoor advertising as their deciding factors in choosing films.
Postmodernism is the Age of Participation. Experience is the new authority. Pomos will not sit still for a traditional approach to anything, because the Internet and other technologies enable them to learn for themselves and by themselves. The concept of tribes is elevated over community, which is why the study shows a need for marketers to win “leaders” in order to win the masses. Finally, it’s important to understand that age doesn’t define the degree to which one is Postmodern. It’s more a factor of the degree to which one is comfortable with and uses the technology.
Advertising is the revenue model of choice
Thursday, October 23rd, 2003Advertising is the online revenue model of choice
Must reading! Rafat Ali, founder of PaidContent.org (and a guy who really knows his stuff), says advertising will always be the biggest revenue generator on the Web. “I have always maintained,” he tells Media Life, “that not getting advertising is a business development problem.” The subscription revenue model, Ali contends, will be around, but only for specialized content. “I think pay-per-view will in a matter of few years develop to be the next ladder up, and then subscription will come next.”Online TV station launches in Malaysia
Thursday, October 23rd, 2003Online TV station launches in Malaysia
Do yourself a favor and spend a few minutes today with Cyberjaya TV in Kuala Lumpur to catch a glimpse of what lies ahead. Don’t get me wrong. The line-up is awful and the quality of this stuff is on a par with bad local access cable, but that’s not the point. I’m sitting here in Nashville watching TV in Malaysia. That alone is pretty cool. Technology will solve the quality problems and content will improve. According to an article in The Star Online, Cyberjaya.TV provides 100% local content that has global outlook, but with local relevance. The business model is advertiser supported, but the owners say they’re considering a subscriber model as well. I learned long ago, when cable TV first came on the scene, not to poo-poo delivery system innovations simply because the quality wasn’t there. Cyberjaya proves that, with a modest investment — in this case, $250,000 — anybody can get into the TV game.Internet is “go-to medium” for sports fans
Thursday, October 23rd, 2003Internet is “go-to medium” for sports fans
Whether Major League Baseball and other professional sports leagues will find gold in offering video streams via their Websites is unclear, but one thing is certain: sports fans love their Internet. According to data from comScore Media Metrix, about 51 million U.S. Internet users visit a sports-related site each month. While most of those users browse general-interest sports sites, such as ESPN.com and Yahoo Sports, an increasing number are heading straight to the source of their favorite sport. “Sports fit with the Web because it’s an on-demand medium,” MLB.com president Bob Bowman told the E-Commerce Times. News organizations fear professional sports will limit their access to highlights, because they can make money by presenting them on their own Web properties.The content key to a younger audience
Wednesday, October 22nd, 2003The content key to a younger audience
I know you may get tired of hearing me rail on about Postmodernism as the Age of Participation, but understanding this truth provides the key to reaching Pomos through the media. It’s clearly spelled out in a wonderful article about Generation-X parenting in today’s Salon (You have to navigate through an ad in order to access the article). In the article, the author makes the following statement:
“…As it turns out, Gen X mamas and papas really like to write, as well as read, about parenting. Of course, there have always been parenting books, but the great majority of them have been prescriptive in nature, ŕ la Dr. Spock and T. Berry Brazelton. We, on the other hand, are more interested in reading about the experience of parenthood. As a result, a whole new genre of nonfiction parenting literature — sometimes called “momoirs” — has erupted in the past seven or eight years…”Postmodernism rejects traditional experts in favor of everyday people who’ve experienced the topic being considered — in this case, the people with the children over the doctor who studies them. This is crucial for editors and producers to understand, because the media’s obsession with experts (themselves included) is one of the things driving people away.Where have all the young viewers gone?
Wednesday, October 22nd, 2003Where have all the young viewers gone?
Here’s the New York Times’ version of this year’s “shrinking network audience” story. We’ve reported on this ad nauseum, but I was struck by a quote in this piece from Alan Wurtzel, the president of research for NBC. The networks are losing staggering numbers of viewers, but the drop-off is especially acute for men 18-34. That demo is down 20%. In looking at the audience losses, Wurtzel exclaims (and one must assume with a straight face), “Frankly what we’re seeing strains credulity.”
You and your colleagues are in denial, and this is why your jaws drop and you express incredulity when faced with the reality of something that has been building for the past few years. At your next performance review, please ask for an office with a window, because you are obviously buried deep within the bowels of Rockefeller Plaza and have no idea that the world has changed. There’s good news, though. Your head scratching isn’t because you have lice. It’s because, as a Modernist scientist, your mind is incapable of recognizing — much less accepting — this paradigm shift. So don’t worry. You’re not sick. You’re just, well, ignorant.
All the best,
Terry
The quest for the young reader
Wednesday, October 22nd, 2003The quest for the young reader
Just as TV is grappling with the loss of young viewers, newspapers are experimenting with free dailies in an attempt to snare young readers. This is a desperate attempt to address sagging circulations and create new vehicles in which to sell advertising to the attractive 18-34 demo. The jury is still out on whether big city papers will succeed (they won’t), but papers that have created Internet properties to confront the issue DO seem to be turning heads. Folks, I just can’t say it any clearer than this. The television and print mediums we’ve known in our lifetimes are being combined into one new medium, which is where Postmoderns (those young demos) choose to live and play. Energy and resources spent trying to prop up the old are a foolish waste, because they could be used in the creation of market share within the new medium.Local online ad spending mushrooming
Wednesday, October 22nd, 2003Local online ad spending mushrooming
Borrell Associates projects local online ad revenues will crack the $2 billion mark this year, growing at a rate of 26.3%. Two-thirds of the cities in the U.S. (nearly 400) now generate over $1 million in annual local online revenue. The biggest spenders locally are in the computer sales & services, banking, hospitals and automotive categories. Download the overview (right click, “Save Target As”) and ask yourself how much of that revenue your station is getting.“Why should we feed the hand that bites us?”
Tuesday, October 21st, 2003“Why should we feed the hand that bites us?”
The warning delivered yesterday to magazine publishers by GM North America chairman, Robert Lutz, has implications that go beyond the magazine industry. In a speech to the American Magazine Conference, Lutz said biased reporting could lead to decreased ad dollars, something every news director has heard at one time or another in his or her life. But Lutz brought examples, including this one:
…he cited reviews of sport utility vehicles in one issue of Primedia’s Automobile magazine. In its review of a not-yet-available Mercedes model, a reference was made to the SUV’s “sophisticated” electronics. But a roughly comparable system on an SUV made by GM’s Cadillac division was dismissed as having “the usual Buck Rogers electronic hoo-hah.”Lutz said he didn’t deny them the right to such reviews, but he reminded them that GM also has the right to determine where to spend its ad dollars and that it might not look kindly on what he termed “biased” reviews.Copyright © 2008 Audience Research & Development LLC. All Rights Reserved.Powered By Synapse CMS