Tv Channels In Us

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The Customer in Control

Derek Brown January 20, 2009 AMCHAM Marketing Committee © Derek Brown 2008

Seeing

Awareness

“Whatever can be done, will be done. The only question is will it be done by you or to you. Just don’t think it won’t be done.”

Social Media Consumption - Global • Blog Readership among internet users… – South Korea - 77% read each week compared to 58% reading mainstream press – Globally - 73% of internet users reading blogs with 48% reading weekly

• Across 29 countries surveyed social media consumption is up – – – – –

83% watch video clips, up from 62% in the last study in June – 59% weekly 78% read blogs, up from 66% 57% of internet users are now members of a social network RSS consumption is growing rapidly up from 15% to 39% Podcasts are now mainstream digital content, listened to by 48%

• Social media is a global phenomenon – Top Markets… – Blogging - China 70%, Philippines 66% and Mexico 60% – Social Networking - Philippines 83%, Hungary 76% and Poland 76%

By Universal McCann, Brand Republic 24-Apr-08

But it’s bigger than that…

Mega-Trends

“To find something comparable, you have to go back 500 years to the invention of the printing press, the birth of mass media” Rupert Murdoch

Fragmentation of Attention

A little history…

Tracking the Untracked… 300+ digital TV channels on a typical US platform and of those only 40 are actually measured by Nielson

“The thing that we found out is that actually 40% of the audience is actually watching those channels that weren’t even measured,” Vincent Dureau, the head of television technology at Google Google research from millions of set-top boxes:

Trying to Reach Mass Markets • #1 TV Show watched regularly by households – 1970: „All in the Family‟ 60% of households – 2007: „American Idol ‟ 17% of households (Source: OMD)

• TV spots to reach 85% of the UK population – Late 1980‟s – Today

3 spots 180 spots (Source: Campaign 2005)

• Nielsen US data (2007) – The average U.S. home receives 118.6 channels – And tuned to16, or 13% of available channels • At least 10 minutes per week

The Tidal Wave of Messages

Consumers exposed to 3,000+ ad messages a day 50+ different types of in-store communication (POPAI) Research indicated that shoppers passes 1.6 items every second. In a 30 minute shop that would mean they pass 2592 pieces of communication.

“Heaviest TV Viewers Are Also Heaviest Users of Internet; 30% of In-Home Online Activity Takes Place While Simultaneously Watching TV”

Your customer isn’t paying attention like the old days…

The Long Tail

Long Tail Example

Amazon gets ½ their revenue from titles that Barnes and Noble doesn’t even carry.

Everything else is the top selling product

Filters

November 2008 American Stats • 146 million people watched 12.6 billion video clips - doubled in 20 months • Conducted nearly 2.8 billion searches on YouTube, about 200 million more than on Yahoo Source NYT & comScore

Changing Reader Patterns: The Power of Links • Discovering new blog content • • • •

38% - blog links 34% - web search 11% - search engines 39% blog links = trusted recommendation from a person

• Blogs are not consumed in isolation • 49% of blog readers and 71% of frequent readers read more than one blog per session

http://www.retailerdaily.com/entry/blog-influence-on-consumer-purchases-surpasses-social-networks/

This is an algorithm or consumer driven process that is largely out of your control

The Changing Customer

Customer 1.0 • 1950 through 1960‟s • Dutiful Consumers – Introduction of Mass Production and Mass Media – Opening of National and Global markets – One-size-fits-all

• Retail Channel – Rise of department store and catalogs

• Demand outstripped Supply – Newly affluent consumers with a limited range or brands and products

Customer 2.0 • 1970 - 2000 • Manufactures expand choice • Retail Expands, malls become destinations – Category Killers; Walmart, Warehouse Clubs – Ultra-niche channels and Specialized Catalogs

• Online appears and Retail builds new channels – Consumer Buying patterns change, more fickle – Customer service, returns, 24/7, online/off-line

• Consumers expectations change

Customer 3.0 • • • • •

Massive variety of channels Infinite array of options Consumers Dictate how they purchase and consume Using community-based tools for decisions Uncontrolled conversation between consumers

Your customer is always one click away from goodbye

So where does this leave us?

Exploding Media Channels Business & Marketing driven to change

Fragmented Consumers

The Internet, Digital Content, Web Services and eCommerce

Everything Else is selling more than ever UGC Customer takes control

Social Networking connects across boundaries

The Perfect Storm meets FMCG

Social Media Ad Pain

We then ran those numbers through our Salience product to extract entities which included quotes about #Motrinmoms, twitter names, places, companies, etc. From there we could see who had more than 1% of the tweets, which we plotted as being positive or negative. This was a feel for influencers. From that information we determined if tweets were more negative or neutral/positive in regard to #MotrinMoms and saw that if you pulled out all of the neutral tweets (those with a sentiment of zero) we ended up with 58% negative tweets and 42% positive tweets. But whereas most campaigns are measured as neutral/positive vs. negative, that overwhelmingly shows that this session would have been 65% positive/neutral vs 35% negative

Was this a time for PR Crisis Management or an opportunity to engage and excite?

Marketing 101

Old 4Ps Marketing Customer

Value Creator

Product

Place

4Ps

Price

Promotion

WEB2.0 Marketing Customer

Content Creator

Product (WEB2.0 Brand) Place (online, offline)

Price ($, time, ease)

5Ps Promotion (Integrated Marketing)

Participation

Publisher

(Conversations)

Online Visitor

Research

Listening

Emerging Methods •

del.icio.us

Your Homework Try a search… • “your company/product sucks” • “your company/product problem”

Are you listening to what people are saying?

Marketing

Talking

TALKING

TALKING

ROI Impact • Consumer tends to stick with their early brand • $5 per month x 40 years = $2,400 • Profit Margin 20% = $480 LTV • Site costs worldwide = $3M • Breakeven = 6,250 girls become consumers • 1% of site traffic conversion

Sales

Energizing

And why do this? • eBags: 76% of purchasers used the online reviews – Forester Research ROI: $200K investment = $400K Profit first year

• Petco : customers who browsed by rating were 49% more likely to buy • Less than 25% of ecommerce sites have reviews but 96% who have them rate as effective

Support

Supporting

Development

Embracing

The Conversation before the sale

“We think the future of advertising is great products that have marketing embedded in them.” Jeff Hicks CEO Crispin Porter + Bogusky October 2006

Source: DMNews - http://www.dmnews.com/Embed-marketing-in-products-Crispin-Porter--Bogusky-CEO/article/93204/

“Something remarkable is worth talking about. Worth noticing. Exceptional. New. Interesting. It‟s a Purple Cow. Boring stuff is invisible. It‟s a brown cow. … Remarkable marketing is the art of building things worth noticing right into your product or service.” Seth Godin Author / Speaker / Marketing Expert

Source: Purple Cow / Seth Godin / Page 3

PRODUCT

PACKAGING DISTRIBUTION CRM ADVERTISING CONSUMER

Old Marketing

PRODUCT

PACKAGING DISTRIBUTION CRM ADVERTISING CONSUMER

Modern Marketing

When it all comes together

Thank You – Q&A

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