Babelfish: Articles May2013 - July 2013 15-7-13

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Articles that I have collected over the last months.Index has hyperlinks to articles. …

Articles that I have collected over the last months.Index has hyperlinks to articles.
Yellow highlighted articles - in my opinion - Must reads
I hope it is as much use to you as it was to me.
Cheers, BC

More in: Business , Technology
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  • 1. Articles May 2013 - July 2013 Brian Crotty Babelfish.Brazil@gmail.com Babelfish Articles May 2013 - July 2013 15-7-13 Page 1
  • 2. Summary 8 Management Lessons From A Great Boss .................................................................................................................................................................................... 8 Brands Can Learn From Moms How To Create Content ................................................................................................................................................................ 8 Australians spend at least one hour a week shopping for a deal ............................................................................................................................................... 9 The Mobile App & Shopper Happiness ............................................................................................................................................................................................. 10 The new rules of the hyper-social, data-driven, actor-friendly, super-seductive platinum age of television..................................................................11 Venda de tablets cresce 164% no 1º trimestre do ano no Brasil .............................................................................................................................................. 14 Social media generates ROI ................................................................................................................................................................................................................. 14 Telefônica/Vivo vai lançar publicidade móvel através de SMS geolocalizado ...................................................................................................................... 14 Don't Advertise Unless You Need To ................................................................................................................................................................................................ 14 Wible's Weekly - SVOD Overlap, TV Everywhere Improvements, and COPPA Complication ............................................................................................. 15 Online Video's Growing Pains .............................................................................................................................................................................................................. 16 Mobile devices take more viewing time ........................................................................................................................................................................................... 17 DSPs: Still Not Enough .......................................................................................................................................................................................................................... 17 Unilever, Mondelez test new ad tool ................................................................................................................................................................................................. 18 TV operators tap viewer data ............................................................................................................................................................................................................. 18 Future is bright for Australian OOH ................................................................................................................................................................................................... 19 Cannes 2013 Video: Proximity BBDO - Work That's Social by Design.................................................................................................................................... 19 Toyota Injects Too Much Of Itself In "Meals Per Hour" ............................................................................................................................................................... 19 These Speech Patterns Irritate the $#@* Out of Everyone Around You .............................................................................................................................. 20 Unilever, Mondelez test new ad tool ..................................................................................................................................................................................................21 BlackBerry anuncia prejuízo e que não atualizará SO do Playbook...........................................................................................................................................21 Venda de PCs em queda; tablets ganham liderança .....................................................................................................................................................................22 How Meeker’s ‘Internet Trends 2013′ Became the Most-Viral Deck on SlideShare .........................................................................................................23 BBDO and Proximity Networks win the Grand Prix for Good and 98 other Lions at Cannes...........................................................................................23 Making Big Data Work for Your Organization ............................................................................................................................................................................... 24 Pandora hits 2.5M in-car activations, will come in a third of new vehicles sold in the US this year.............................................................................. 24 Marketing gap exposed ........................................................................................................................................................................................................................ 25 Showrooming ratios favour Amazon ................................................................................................................................................................................................. 25 18–29-Year-Olds Use Their Phones Totally Different From Older People ............................................................................................................................ 26 The effect of engagement with social media on purchase behaviors ..................................................................................................................................... 26 5 reasons to benchmark costs and why agencies should not be worried ..............................................................................................................................35 How To Rescue Unhappy Mobile Video Consumers..................................................................................................................................................................... 36 Mobile Broadcast TV Users Mostly Dyle News Programming, Study Finds Daytime Is Mobile Prime-Time ................................................................ 37 Omnicom, Not WPP Or Publicis, Dominates Madison Avenue's Tech Story.......................................................................................................................... 37 Samsung faz a festa viral com Usher e Jay-Z .............................................................................................................................................................................. 37 Consumers show mixed views on data............................................................................................................................................................................................ 38 Shopping Then and Now: Five Ways Retail Has Changed and How Businesses Can Adapt ............................................................................................. 38 A Fool and Their Data are Soon Parted ........................................................................................................................................................................................... 40 Brasil consome mais notícias online .................................................................................................................................................................................................. 41 Fox investe nos 'hábitos da classe C' para crescer no país ...................................................................................................................................................... 44 How Happy Is Your Organization? .................................................................................................................................................................................................... 46 Smartphones take off in UK ............................................................................................................................................................................................................... 47 I Miss The Old Purchase Funnel ......................................................................................................................................................................................................... 47 Coming Soon: Intel's Must-See TV ..................................................................................................................................................................................................... 51 Babelfish Articles May 2013 - July 2013 15-7-13 Page 2
  • 3. The Ultimate Trojan Horse: Game Boxes Take Entertainment's Center Stage....................................................................................................................... 51 Google Heightens Focus On Attribution Metrics For Marketers ............................................................................................................................................... 52 The First Wave of gTLDs Are Coming - Are You Ready? ...........................................................................................................................................................53 Nielsen Studies 'Multi-Sensory' Differences Between Young and Old.....................................................................................................................................54 It's OK to be blamed for your co-worker's mistake ......................................................................................................................................................................54 O acesso à web atingiu 49% da população brasileira; uso de dispositivos móveis é tendência .................................................................................... 55 No Brasil, 40% das residências têm acesso à internet, aponta pesquisa .............................................................................................................................56 Why Mobile Advertising Has Quadrupled in Brazil ........................................................................................................................................................................56 The Content that Brazilians Share the Most on Social Media ...................................................................................................................................................57 'I'm Not A Businessman, I'm A Business, Man' ................................................................................................................................................................................57 In a Shift, Facebook Says It Will Make All Ads Social ................................................................................................................................................................. 58 Brazil drives LatAm adspend growth ............................................................................................................................................................................................... 58 Mídias tornaram-se técnicos, estrategistas e criativos ..............................................................................................................................................................59 VivaKi Struggles For Reinvention in Digitally Savvy Publicis Network .................................................................................................................................... 60 Loducca usa tecnologia para otimizar ROI ....................................................................................................................................................................................... 61 Pay Attention To This New Audience Segment, If You Have Any ............................................................................................................................................. 61 Brasil registra mais de 14 milhões de celulares vendidos no trimestre .................................................................................................................................. 62 A POV on Facebook’s new hashtag function ................................................................................................................................................................................. 62 The Smarter Data Manifesto .............................................................................................................................................................................................................. 63 Your Data Was Never Yours ...............................................................................................................................................................................................................65 Local Link Building: An Easy Win ........................................................................................................................................................................................................65 Google takes over half of mobile adspend ..................................................................................................................................................................................... 67 Fans Crush Brands When It Comes to YouTube ........................................................................................................................................................................... 68 Big Cable Offering Producers Incentives to Stay Off the Web ................................................................................................................................................ 68 Mobile já responde por 7% da audiência dos sites de notícias, diz IVC ............................................................................................................................... 69 Marketing Technology Map................................................................................................................................................................................................................. 70 Mondelez International identifies the path to mobile success .................................................................................................................................................. 70 Oreo's "cookie or cream" campaign on Instagram engaged consumers.................................................................................................................................. 71 Let's Go Surfing Now….......................................................................................................................................................................................................................... 71 Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012–2017................................................................................................72 Social TV and the Network Approach .............................................................................................................................................................................................. 83 Kantar, TNS Want TRA's Case Against Rapid View Service Dismissed ................................................................................................................................. 84 Millennial Viewers Prefer Cross-Platform TV ................................................................................................................................................................................ 84 Ideas for Getting Started With Measurement Planning .............................................................................................................................................................. 85 Online video can challenge TV ............................................................................................................................................................................................................ 85 Stop Starving Online Video And Start Feasting On ROI.............................................................................................................................................................. 86 The Gamification Of Email ................................................................................................................................................................................................................... 86 Ten surprising reasons you're tired .................................................................................................................................................................................................. 87 Omnichannel is the future .................................................................................................................................................................................................................... 88 CMO Council study: Content has significant impact on buying process ................................................................................................................................ 89 Will NSA Revelations Bring Added Privacy Pressure To Ad Biz? ............................................................................................................................................ 89 Xaxis' Lesser: The Sun Never Sets On WPP's Trading Empire ................................................................................................................................................. 89 STUDY: The State of Social Marketing – Vision, purpose and value drive a new era of digital engagement ............................................................ 90 A QR Code Walks Into A Zoo... ......................................................................................................................................................................................................... 96 Using Mobile to Help Consumers Buy In-Store ............................................................................................................................................................................. 96 Data-Driven Tech Industry Is Shaken by Online Privacy Fears ................................................................................................................................................. 97 Babelfish Articles May 2013 - July 2013 15-7-13 Page 3
  • 4. Meet PRISM / US-984XN - The US Government's Internet Espionage Super Operation................................................................................................. 99 Ideas for Getting Started With Measurement Planning .............................................................................................................................................................. 101 Estudo da PricewatershouseCoopers prevê que a receita dos jornais norte-americanos permanecerá em queda até 2017 ............................... 102 A difícil missão de transmitir o significado emocional das marcas ........................................................................................................................................ 103 The difficult task of conveying the emotional significance of brands ................................................................................................................................... 104 Facebook Drops 'Sponsored Stories' As It Pares Down Ad Formats .................................................................................................................................... 105 Mobile devices attract TV viewers .................................................................................................................................................................................................. 105 How to increase your Facebook Post Engagement ..................................................................................................................................................................... 106 Climbing The Slippery Slope Of Advertising ................................................................................................................................................................................. 109 Social TV Ratings – Why Advertisers Should Be Careful Of What They Wish For ............................................................................................................ 110 Online Video Trumps TV In Engagement, Ad Shifts ...................................................................................................................................................................... 111 DoubleClick Integrates Support For Native Ads, Brand Integration .......................................................................................................................................... 111 Is Quartz the Very Model of a Modern Publisher? ....................................................................................................................................................................... 112 Why gamification is serious business .............................................................................................................................................................................................. 113 Guess who controls the future of TV............................................................................................................................................................................................... 117 Will Twitter Cards Revolutionize Lead Gen? ................................................................................................................................................................................. 124 US digital adspend soars .................................................................................................................................................................................................................... 124 If Content Is King, Multiscreen Is The Queen, Says New Google Study ................................................................................................................................ 125 Kids Are Lying Little Weasels Who Lie: Study.............................................................................................................................................................................. 127 As T/V Fragmentation Explodes, Need for Aggregation Increases ........................................................................................................................................ 127 DOOH Shines In Emergencies............................................................................................................................................................................................................ 128 Ad-ID for a Cross-Screen World ...................................................................................................................................................................................................... 129 Get More Bang for Your Buck With Native Video Apps ............................................................................................................................................................ 130 In Brazil, Be Careful What You Wish For ......................................................................................................................................................................................... 131 Wearables and Sensors Big Topics at All Things D .................................................................................................................................................................... 133 SmartThings Mobile app (screen shot from company video) ................................................................................................................................................... 134 Sorry, Brands…Your Digital Agencies are Lying to You ............................................................................................................................................................ 137 The 11 Most Fascinating Charts From Mary Meeker's Epic Slideshow of Internet Trends ............................................................................................... 139 Research shows increase in marriage failures once children leave the home .....................................................................................................................144 Mapping the Customer Journey with Social Intelligence............................................................................................................................................................ 146 5 Sparkling Ideas for Integrating User-Generated Content Marketing..................................................................................................................................148 Where Are Your Readers Really Coming From? ........................................................................................................................................................................... 149 gTLDs' Analytics and Big Data Impact on Brands' Marketing Strategies ............................................................................................................................. 150 Heineken utiliza Vine para produzir replays da final da Champions ........................................................................................................................................ 151 Twitter Launches TV Ad Targeting, Twitter Amplify For Real-Time Videos In Stream ...................................................................................................... 152 The Shift to Constant Connectivity ................................................................................................................................................................................................. 155 Consumers fine with promos-for-freebies exchange ................................................................................................................................................................. 157 Nielsen Taps IBM's Watson for Measurement and Media Planning ........................................................................................................................................ 157 Showrooming Overhyped, Mobile Key To Shopping Purchases .............................................................................................................................................. 158 Google introduces cash by email function ..................................................................................................................................................................................... 159 Brasil ultrapassa 100 milhões de acessos de banda larga. Rede 4G já computa mais de 50 mil .................................................................................. 159 Mobile já responde por 7% da audiência dos sites de notícias, diz IVC .............................................................................................................................. 160 Globo muda relação com Facebook - Novas regras da rede social geram questionamentos da emissora ................................................................. 165 Preparing the Next Generation of Chief Marketers .................................................................................................................................................................... 167 Worlds Collide: The New Data-Focused CMOs and Their CIO Counterparts .......................................................................................................................168 No future for digital agencies ............................................................................................................................................................................................................ 169 Babelfish Articles May 2013 - July 2013 15-7-13 Page 4
  • 5. Social Media and Digital Agencies Will Vanish Within Ten Years Say Next Generation of Marketers ........................................................................ 169 Video RTB: Is An Impression An Impression An Impression? ................................................................................................................................................... 173 Crafting Moments: Mobile As A Reflex, Not A Medium............................................................................................................................................................. 173 When Is It Pointless To Advertise? ................................................................................................................................................................................................. 175 The Future of Media, as Seen at Internet Week .......................................................................................................................................................................... 175 Excuses ................................................................................................................................................................................................................................................... 178 Social Media Calendar: A How To Approach................................................................................................................................................................................. 178 Do New Business Metrics Need To Convince Consumers To Watch Entertainment On New Platforms? ................................................................... 179 Dish Debuts Social App, Pushes Viewers To Hopper DVR Unit ..............................................................................................................................................180 Top Charts in Google Trends—The most searched people, places and things ...................................................................................................................180 Mary Meeker Predicts Wearable Computing Is The Next Phase - Here's Why................................................................................................................... 182 Two Out of Three Marketers Doubt Facebook Ad Effectiveness ........................................................................................................................................... 183 Venda de tablets deve superar a de PCs em 2015 ..................................................................................................................................................................... 183 Social media influences video choice ..............................................................................................................................................................................................184 TIM inicia testes com cartão de débito via NFC ..........................................................................................................................................................................184 Hearst Is the Latest Publisher to Jump On Native Ad Trend .................................................................................................................................................... 185 When Will There Be One Metric for All Screens?........................................................................................................................................................................186 Turn Report Shows A 15 Percent Increase In Display Ad Costs And A 45 Percent Drop In Mobile ............................................................................. 187 Why Marketers Need To Think 'Audience First' ...........................................................................................................................................................................188 Google Mobile App Tracking, Remarketing Tools On The Way ...............................................................................................................................................188 Can YouTube Eclipse Facebook?......................................................................................................................................................................................................189 Measurement Challenges Abound As Marketing Ecosystem Evolves ................................................................................................................................... 190 Moving from Big Data into an Era of Smart Data......................................................................................................................................................................... 191 A Performance Marketing Checklist for Small Advertisers ...................................................................................................................................................... 192 From Clicks to Bricks: Online Retailers Dabble in Physical Stores ......................................................................................................................................... 193 Sports Illustrated Starts Live, Daily Half-Hour Video Show ...................................................................................................................................................... 194 Latin American e-commerce grows ................................................................................................................................................................................................. 196 Five ways technology has failed us ................................................................................................................................................................................................. 196 Tween Girls Susceptible To Mobile Advertising .......................................................................................................................................................................... 199 The Rush to Go Live With Mobile ..................................................................................................................................................................................................... 199 Nearly everything you think you know about strategy and innovation is wrong. ............................................................................................................... 200 Retail Success Still Depends on Core Principles ........................................................................................................................................................................ 205 "Why shopping will never be the same," Retailers underuse customer data ....................................................................................................................... 214 Three Lessons Digital Video Advertisers Should Learn from Direct Marketing ................................................................................................................. 214 The Number One Reason Kids Don’t Need Facebook? They Literally Don’t Need Facebook. .......................................................................................... 215 Why some brands become uncool.................................................................................................................................................................................................... 216 Double iPhone screen with Popslate ............................................................................................................................................................................................... 217 Why events are the last bastion of integrated marketing......................................................................................................................................................... 218 How Walmart's mobile-led strategy drives a seamless shopper experience ....................................................................................................................... 219 Magazine Luiza want to include NFC in SIMcard with your brand.......................................................................................................................................... 222 The Perils Of Google Glass............................................................................................................................................................................................................... 222 Why John McCain Is Trying To Blow Up The Cable Industry ................................................................................................................................................... 223 Yahoo Adds Tweets To News Feed ................................................................................................................................................................................................ 224 Marketing-Mix Models Get Pushback As Media Landscape Changes Advertising Research Foundation To Look Into ROI Standard .............. 224 Meredith Expands Program Guaranteeing Sales Lift for Big Advertisers ........................................................................................................................... 226 Content Curation: The Big Picture................................................................................................................................................................................................... 226 Babelfish Articles May 2013 - July 2013 15-7-13 Page 5
  • 6. Financial Services: The Mobile Vertical to Watch ....................................................................................................................................................................... 228 Start Listening: Why Testing Alone Isn't the Answer ................................................................................................................................................................ 228 The Tragic Beauty of Google+ ......................................................................................................................................................................................................... 229 Agencies get incentivised .................................................................................................................................................................................................................. 231 Pesquisa sobre o uso de hashtags no Instagram ........................................................................................................................................................................ 231 Car Paint, Heal Thyself ....................................................................................................................................................................................................................... 234 Scarcity is the problem By Sam Thielman .................................................................................................................................................................................... 235 The Most Important Thing In The Digital Age .............................................................................................................................................................................. 236 'Loyalize' Customers by Remembering Their Needs................................................................................................................................................................... 236 YouTube pay channels get mixed reaction ................................................................................................................................................................................... 237 How to tell if a couple will get divorced......................................................................................................................................................................................... 238 9 Predictions: Media Guy Sees The Future and It Ain't Pretty ............................................................................................................................................... 239 Why Persuasive Technology Just Might Redefine Advertising ............................................................................................................................................... 240 Will Target's Cartwheel Start Social, Mobile Revolution? ......................................................................................................................................................... 240 For Auto Buyers, Online Reviews' Influence Rivals Professional Opinions ............................................................................................................................ 241 The One Infographic About the Digital Revolution You Need to Understand ......................................................................................................................244 MEC Launches Digital ......................................................................................................................................................................................................................... 247 Spotlight On Brazil: RTB Gaining Ground In A Diverse Advertising Market ........................................................................................................................ 247 In Content Era, What’s the Role of Agencies?.............................................................................................................................................................................. 251 Survey Points To RTB's Growth ...................................................................................................................................................................................................... 252 Tablets Grab Nearly Half of Mobile RTB Share Worldwide ...................................................................................................................................................... 252 Será que agora até o Google paga bônus por volume (BV) no Brasil? ................................................................................................................................ 253 Augmented Reality & the Move to the World of Flat Surfaces ............................................................................................................................................... 254 The Data Made Me Do It The next frontier for big data is the individual. ........................................................................................................................... 255 Mobile Path To Purchase Starting At Searches Becomes Clearer ........................................................................................................................................ 256 Facebook looks to video ads as it seeks new revenue streams............................................................................................................................................ 257 14 Telling Signs You Love Your Job ............................................................................................................................................................................................... 257 Nissan plans "scientific" marketing................................................................................................................................................................................................. 259 Study - Understanding the Effect of Digital Signage in the Casino ...................................................................................................................................... 260 How to Save the Life of Any Meeting ........................................................................................................................................................................................... 260 5 Free Excel Add-Ins to Help Digital Marketers Decipher Big Data ...................................................................................................................................... 260 Marketing in 2013 - Ads Are Only the Beginning ....................................................................................................................................................................... 262 Financial Times 2013 special report on Digital & Social Media Marketing........................................................................................................................... 265 The Easy Way to Create a Video Testimonial ............................................................................................................................................................................. 272 Cross-platform marketing grows .................................................................................................................................................................................................... 273 Celebrity Endorsements are Dead, Long Live the Celebrity Endorsement........................................................................................................................... 274 Moms Dote On Social Networks ..................................................................................................................................................................................................... 275 DoubleVerify Uncovers Ad Fraud Tied to Copyright Infringement Sites, Costing Online Advertisers $6.8M Per Month ...................................... 276 Video Convergence Is Here: Adapt Or Face Extinction ............................................................................................................................................................. 278 Streaming Media Devices Rising, Connected TVs Lag In Online Use .................................................................................................................................... 279 What Does Programmatic Ad Buying Mean In A Cross-Media World? ................................................................................................................................ 279 Advertisers face IMC challenges.....................................................................................................................................................................................................280 The Three Stages Of Funding A Startup ........................................................................................................................................................................................ 281 Mobile Soars, But Future Appears Multiscreen ........................................................................................................................................................................... 282 Advertising 2020 ................................................................................................................................................................................................................................. 283 This Is Why Advertisers Need to Get Serious About Video Embrace new formats .........................................................................................................284 Babelfish Articles May 2013 - July 2013 15-7-13 Page 6
  • 7. Email Before Breakfast -- And Other Trends .............................................................................................................................................................................. 285 SMG Strikes Exclusive 1-Year Deal For Online Video Optimization, Works Like A TV Optimizer ................................................................................286 Havas Media, DG Ad Partnership Crosses TV, Online .............................................................................................................................................................. 287 Babelfish Articles May 2013 - July 2013 15-7-13 Page 7
  • 8. 8 Management Lessons From A Great Boss On Wednesday this week we will gather to mark the retirement of Jack Klues from the Publicis Groupe. In a 35 plus year career, Jack spun out Leo Burnett Media into Starcom, managed its merger with Mediavest to form Starcom Mediavest Group, oversaw Publicis Groupe Media which combined Zenith Optimedia and SMG after being acquired by Publicis and along with David Kenny at first and then alone, headed VivaKi which combined Publicis Groupe‘s media assets and the digital giants Digitas and Razorfish. When he stepped down as CEO at the end of 2012 to take on a six-month transitory stint as VivaKi‘s Chairman, VivaKi accounted for nearly 40 percent of Publicis Groupe revenue and over 60% of its growth. Jack was also the only American on a five member Publicis Board of Directors. And as a last act he along with Maurice Levy, re-engineered VivaKi despite its success to position it for the next few years in a networked global world where collaboration will be an essential requirement since no one company will be able to do it all. Not bad for a guy from Quincy Illinois. I have worked directly for Jack for the past 15 years Jack has become not just a boss but also a mentor and a friend. Most importantly he taught me, as he has done so many others, some of the most important management lessons. Here are a few: 1. There is no substitute for hard work: Jack was always on and always in. He is wickedly smart but does not rest on his laurels and is continuously involved and focused on work. (While making sure he always spent time with his priority one his family) . He never called it in. Tim Ferris and all those books of 4-hour workweeks and stuff are full of absolute shit. If you want to do well you have to work your butt off. Period. Even if you are supposedly smart. 2. Constantly learn and keep upgrading your skills: One of the things Jack had me do every four or five months was to organize a ―mind expanding trip‖ to expose him to people, firms, concepts that he had never seen or thought off. From Atom Shockwave Films, who were a pioneer in digital video and flash animation production a decade ago to Blue Fin Labs long before anyone knew who they were to folks whose sole mission was to destroy our business model, he saw and learned from them all. 3. Integrity and your word is everything: Jack hates losing. But he will not win at any cost. Integrity, fair play, transparency are his touchstones. If he makes a commitment he will keep it. No ifs or buts. 4. Be accessible and encourage challenges:A case can be made that Jack was one of the three most powerful and busiest men at Publicis Groupe, but you could always see him and tell him what was on your mind. If you were a student, a start up, a nitwit or someone who wanted to sell him an idea, he always found time to meet folks. There were no chiefs of staffs or bevy of executive assistants to shoo away people. His belief was it was essential for him to learn, to listen, to be available. Most importantly he encouraged people to challenge him. You always respected Jack but you never feared Jack. 5. Always take ideas to Clients and always tell them what you think: Jack loves Clients and getting involved in their business. He always was thinking about ideas for them and while very respectful often told them very inconvenient truths. He respects Clients but he cared that they respect him. 6. Your success is mostly not because of you: Jack believes that his success was due to a combination of many factors a majority that had little to do with him. First, it was the talent around him. Second, it was the company he was working for (Jack always kept company first and never became bigger than the company), third it was the prestige of the Clients he got to do work with and finally a lot of it was pure luck and timing. To this day, I never take any body that believes they are superstars who have achieved it all them selves seriously. Never forget where you came from and all those who helped you. 7. Celebrate the team and make stars of your people: Jack has over the years nurtured hundreds of talented people who he not only gave opportunities to but also put them in the spotlight. His belief was the more people he made stars around him it reflected not only the reality of their contributions, but allowed him to attract even more great folks 8. Put others first. Be Generous: Jack always thinks of others. He also gives back to charity like the Off The Street Club and to the University of Illinois among others. It‘s never about Jack. It‘s about the team and The Company. Let me end with a story. About 11 years ago we were involved in a critical pitch. Due to weather all flights had been cancelled from Chicago and Jack had got a private plane to fly us out from Urbana Champaign. I finished attending my elder daughters middle school graduation late in the evening and caught a train to Urbana where I arrived at a fog bound station at midnight. In the gloom of the deserted station sat Jack Klues who said, ― After this long trip I thought you would need a ride to the hotel‖ Brands Can Learn From Moms How To Create Content By Holly Pavlika Friday, July 5, 2013 According to eConsultancy and Outbrain, 42% of companies say they lack the human resources and the budget (35%) for content marketing. And a study by Curata revealed creating original content is seen as the biggest challenge for 69% of content marketers. But today‘s social media moms are masters at coming up with the content they need to manage their multi-channel brands. And brands challenged by content creation can learn a lot from them. 1. Crowdsourcing article ideas: moms will join forces and crowdsource an idea and cross promote on their owned channels extending their reach beyond just their own channels. Brands can select 3-4 employees to easily crowdsource material for the company blog. 2. Commenting on news and trends: many bloggers have Google Alerts in place for topics they write about. Brands should have alerts on their competitors. Babelfish Articles May 2013 - July 2013 15-7-13 Page 8
  • 9. 3. Using/creating great infographics: more and more moms are creating or using infographics and sharing them on not only their blogs, but curating them on Pinterest. 4. Interviewing local people who are newsworthy: moms reach out people in their local communities to create relevant localized content. 5. Interviewing fellow bloggers: this is an easy way in which moms get content and leverage the interviewee‘s social graph and reach. 6 Do article exchanges: moms will bargain with each other for guest post exchanges. Businesses can do the same by sharing thought leadership with non-competitors. 7. Curate lists: search any site and you will see curated lists on everything from top bloggers to sites and apps they recommend. 8. Scoop.it: many bloggers use Scoop.it to stay on top of topic areas relevant for their readership. It‘s a great place for businesses to stay current and get ideas for articles and commentary. 9. Ask readers: most bloggers at some point will ask their audience what they want to see. 10. Recycle and update old posts: a trick many of the renown bloggers will use. Good content gets buried, but there‘s nothing wrong with uncovering it, updating it and re-posting the good ones. 11. Capture everything: with Vine or now Instagram, it‘s easy to create short video. And visual content gets the best engagement so do what bloggers do: carry a camera, camera phone or iPad with you wherever you go to not miss a content moment. It‘s second nature to a seasoned blogger. And last, but not least, you can always hire a blogger to create content for you. After all, organic is more likely to get clicked on than any paid advertising. Australians spend at least one hour a week shopping for a deal by: LUCY KIPPIST From:news.com.au July 04, 2013 4:46PM Whatever you want.Just cheaper. AUSTRALIA, we love a bargain. At 8pm every Sunday thousands can be found scrolling through eBay - probably on our mobile phones - hitting up the 4000 different deals. This is the peak time for the bargain-hunting website, but according to the results of a recent Galaxy poll, the average person will commit at least an hour every week to snaring the best prices. Galaxy reckons Australia has become a nation so comfortable with the idea of haggling, that more than 60 per cent of us now flatout refuse to pay full price for electrical goods, clothes, insurance, holidays and even eating out in restaurants. Tim Wolfenden is managing director of Make It Cheaper, a site dedicated to tracking down the best deals on things such as broadband and utility bills. He says online shopping has transformed the average consumer's shopping habits. "Being able to jump online and do research has given people who would normally not like to ask for a cheaper price the confidence to start negogitating," he said. "Now you can pick up the phone to any provider and say 'I am reviewing my options, what's the best price you can give me'." What's your favourite online bargain hunting site? Comment below Babelfish Articles May 2013 - July 2013 15-7-13 Page 9
  • 10. Reg Whitehall is a living, breathing example of this idea in practice. The 75-year-old pensioner from Wagga Wagga in central New South Wales is convinced we have the internet to thank for our new bargaining power. "Before [the internet] you had to go down to the shops and pick up a catalogue. Then you'd come home and compare them before heading back and getting the best price. Now I just zap on the computer and have a look for myself," Mr Whitehall said. Being in a regional area has real advantages for deal hunters. According to Mr Whitehall, the big stores such as Woolworths, Kmart or Harvey Norman are all within proximity in Wagga Wagga, which makes it easy for people to drive around and pick up the bargains. But on the other hand, the distance from Sydney rules out their access to bargains from department stores that won't deliver outside metropolitan areas. So perhaps that's where eBay comes in? Megan English, spokeswoman for eBay Australia, said that men were actually outspending women on the auction site. "Two thirds of our customers on the site during peak times are snapping up the deals and they're mostly buying tools and electrical products," she said. But the biggest deals by far are Apple products that apparently "jump off the virtual shelves". And here's a tip for diehard eBayers. Ms English revealed the best time for shopping is 10am Tuesday and Friday, when the week's latest deals are first posted online. Back in Wagga Wagga, Mr Whitehall (who is also a recent eBay convert) told news.com.au that while the internet made life easier for shoppers, there was more to life than staring at a computer screen all day. "I'm still from the old-school, so I don't use it every day. Some people I know are sitting in front of the computer all day [just to find a bargain]. But I don't want to do that. I'd rather be out fishing or walking in the fresh air, as long as the weather is good," he said. And that sounds pretty good from where we're sitting. Read more: http://www.news.com.au/breaking-news/australians-spend-at-least-one-hour-a-week-shopping-for-a-deal/storye6frfkp9-1226674899813#ixzz2YE1YE2Kl The Mobile App & Shopper Happiness by Chuck Martin, After writing about how mobile commerce is an end-to-end experience (Mobile Shopping & the End-to-End Cycle) a few days ago, I came across an interesting piece of research that examines many of the components of this shopping behavior. Rather than reviewing the whole gamut of retail shopping, researchers at GigaOm Pro looked specifically at behaviors of only smartphone owners. By types of physical stores, at least by the measurement of extreme satisfaction, there‘s a range of view. By category of store where smartphone owners are very happy: • 33% -- Membership warehouse clubs • 32% -- Discount stores • 30% -- Grocery stores • 27% -- Home improvement/hardware stores • 26% -- Drug stores • 18% -- Consumer electronics/appliance stores As a general benchmark, the majority (52%) of smartphone owners are very happy with Amazon compared to about a quarter (27%) very happy with other online stores, so Amazon continues to be commerce king.. I found the insight on the use of mobile apps to be one of the more intriguing points in the study. For consumers using mobile shopping apps by purpose, finding coupons is at the top of the list, as you might expect, followed by other reasons. • 28% -- Find coupons • 27% -- Compare prices • 25% -- Find upcoming events • 25% -- Get offers and deals • 20% -- Shop for gifts • 20% -- Compare products • 19% -- Check stock in stores • 19% -- Remember products to buy • 18% -- Keep up with new products • 16% -- Manage rewards earned Babelfish Articles May 2013 - July 2013 15-7-13 Page 10
  • 11. While many consumers access retail websites from their phones while they shop, this research indicates that merchants ignore apps at their own peril. In virtually every category of shopping purpose, mobile app users were happier with their shopping experience than non-app users, The obvious app development is to automate some of these functions and include them within the apps, which no doubt is being worked on. Many of the functions already are available manually, such as price checking, coupon redemption and shopping lists. Automating some of these functions can aid in the search for the friction-free mobile shopping experience. Read more: http://www.mediapost.com/publications/article/203946/the-mobile-app-shopperhappiness.html?edition=61929#ixzz2YDlASlgw The new rules of the hyper-social, data-driven, actor-friendly, super-seductive platinum age of television BY TOM VANDERBILT 03.19.13 From Game of Thrones to the new Arrested Development, television is better than ever. And it‘s not just a lucky accident. Turns out that networks and advertisers are using all-new metrics to design hit shows. Under these new rules, Twitter feeds are as important as ratings, fresh ideas beat tired formulas, and niche stars can be as valuable as big names. Case in point: Mad Men and Community‘s Alison Brie. Illustration by LAMOSCA On February 7, the fourth season of Community kicked off on NBC. It was something of a shock that the show had survived for so long. It ranked 193rd among broadcast shows. In May 2012, series creator and showrunner Dan Harmon had been unceremoniously canned. And on the night it aired, the season premiere pulled in just 4 million viewers. That‘s a mere quarter of the audience enjoyed by ratings juggernauts like Two and a Half Men or The Big Bang Theory. It even underperformed a rerun of the ABC reality show Shark Tank on the Nielsen charts. Until recently, those 4 million viewers would have been the end of the story. Just a few years ago, similar niche favorites like Jericho and Firefly were summarily executed for such numbers. In fact, cult legend Freaks and Geeks averaged nearly 7 million viewers in its single, 1999-2000 season before getting canceled. But that night in February, Communityaccomplished something that none of those shows ever had the chance to do—it spawned two worldwide trending topics on Twitter. All of your favorite shows are ratings dogs. Breaking Bad, Girls, Mad Men—each struggles to get a Nielsen score higher than 3, representing about 8.7 million viewers. And it‘s not just cable. NBC‘s 30 Rock struggled to top a score of 2.5, and Parks and Recreation rarely cracks Nielsen‘s top 25. There are two possible conclusions to draw from these facts: (1) All these shows should be canceled, or (2) maybe the ratings are measuring the wrong thing. Since the 1970s, television has been ruled by the Nielsen Family—25,000 households whose TV habits collectively provide a statistical snapshot of a nation‘s viewing behavior. Over the Babelfish Articles May 2013 - July 2013 15-7-13 Page 11
  • 12. years, the Nielsen rating has been tweaked, but it still serves one fundamental purpose: to gauge how many people are watching a given show on a conventional television set. But that‘s not how we watch any more. Hulu, Netflix, Apple TV, Amazon Prime, Roku, iTunes, smartphone, tablet—none of these platforms or devices are reflected in the Nielsen rating. (In February Nielsen announced that this fall it would finally begin including Internet streaming to TV sets in its ratings.) And the TV experience doesn‘t stop when the episode ends. We watch with tablets on our laps so we can look up an actor‘s IMDb page. We tweet about the latest plot twist (discreetly, to avoid spoilers). We fill up the comments section of our favorite online recappers. We kibitz with Facebook friends about Hannah Horvath‘s latest paramour. We start Tumblrs devoted to Downton decor. We‘re engaging with a show even if we aren‘t watching it, but none of this behavior factors into Nielsen‘s calculation of its impact. Since Mad Men debuted on AMC in 2007, the cable channel‘s subscriptions, licensing fees, and ad revenue have all grown dramatically. In other words, quality original programs mean big money. Total Twitter followers • Two and a Half Men: 14.1 million (Ashton Kutcher: 98 percent, 13.8 million) • Vampire Diaries: 12.4 million • Pretty Little Liars: 7.4 million • Community: 6.1 million (Joel McHale: 50 percent, 3.1 million) • Modern Family: 5.7 million (Sofia Vergara: 69 percent, 3.9 million) • Family Guy: 5.3 million (Seth MacFarlane: 73 percent, 3.8 million) • Parks and Recreation: 4.8 million (Aziz Ansari: 58 percent, 2.7 million) • The Big Bang Theory: 3.8 million (Kaley Cuoco: 32 percent, 1.2 million) • The Walking Dead: 2.1 million • NCIS: 1.2 million • Girls: 940,000 (Lena Dunham: 83 percent, 780,000) • Sons of Anarchy: 690,000 • Game of Thrones: 640,000 • Mad Men: 570,000 (Alison Brie: 75 percent, 430,000) • Homeland: 265,000 Networks are finding new ways to measure popularity. Thank God. Babelfish Articles May 2013 - July 2013 15-7-13 Page 12
  • 13. So far, advertisers don‘t have a good way to track that viral activity. But many of them are willing to pay for it—even if the official Nielsen ratings don‘t measure up. ―It‘s more about the social media zeitgeist of the program,‖ says Jackie Kulesza, a senior vice president at Starcom USA, which buys advertising time. 30 Rock, which managed to stay on the air for seven seasons despite perennially low ratings, ―was very strong in this area.‖ That helps explain why Nielsen and others have been scrambling to generate a new kind of TV rating, one that takes into account all of the activity that occurs on screens other than a television. In November, Nielsen purchased SocialGuide, which analyzes ―the social impact of linear television,‖ according to the company‘s website. One month later, it announced a partnership with Twitter in an effort to devise a new social-TV rating, which will debut this fall. In February, Twitter itself purchased Bluefin Labs, a social-TV analytics company. It all adds up to a potentially thrilling new era for television, one that values shows that spark conversations, not just those that hook us for 30 minutes. The stakes are high: Get it right and great programming will continue to thrive. Get it wrong and the $70 billion television industry is in jeopardy—and so is your favorite show. In the years after its founding in Chicago in 1923, the A.C. Nielsen Company thrived, thanks to a commitment to math and technology. While its competitors called random households and asked them what they happened to be listening to on the radio at that moment, Nielsen developed more sophisticated sampling methods. Rather than rely solely on self-reporting, Nielsen employed a device called the Audimeter that used photographic tape to automatically record listening activity. When television arrived, Nielsen used similar meters for viewing—although they were supplemented with paper diaries. But by the late 1950s, Nielsen sat comfortably atop the media-ratings industry. It had few competitors, and since television habits remained static, it had little reason to keep innovating. But the widespread adoption of the DVR in the mid-2000s roused Nielsen from its torpor. In 2007 the company hammered out its ―C3″ rating, a metric that includes the number of people who watched a show—and therefore the commercials—up to three days after its original airing. (The company also came up with a C7 tabulation, tracking audiences for a full week.) Networks loved the number—it seemed a truer representation of their shows‘ actual audience. But at first advertisers didn‘t pay much attention. Viewers who recorded a show on a DVR were assumed to be fast-forwarding through the commercials and thus immune to sales pitches. 2012‘s most engaging telecasts, by mentions online • Election Day Coverage (multiple networks): 19.2 million • 2012 MTV Video Music Awards (MTV): 19.2 million • Super Bowl XLVI (NBC): 17.5 million • Grammy Awards (CBS): 17.1 million • Presidential Debate: Domestic Policy (multiple): 13.7 million • 2012 Summer Olympics: Closing Ceremony (NBC): 11.7 million • BET Awards (BET): 10.1 million • Vice Presidential Debate (multiple): 8.1 million • 2012 Summer Olympics: Opening Ceremony (NBC): 7.6 million • Presidential Debate: Town Hall (multiple): 6.6 million • Source: Trendrr Over time, though, that meant ignoring more and more viewers. Today, it‘s not rare for a huge portion of a show‘s audience to watch it well after it originally aired. CBS, for example, recently released data showing that the viewership for its Sherlock Holmes reboot, Elementary, skyrocketed when seven days were tracked—its rating among the valuable 18- to 49-year-old demographic shot up 64 percent. (And there‘s no reason to stop at seven days. Millions of hours of TV get watched beyond the one-week cutoff. Science fiction shows, it turns out, are particularly likely to be watched more than a week after they air.) Eventually, advertisers began to find ways to reach even those ad-skipping viewers. They created campaigns that mimicked the look of the show they aired against—in some cases using the same locations and actors—in an effort to trick fans into releasing the fast-forward button. (There‘s even a name for these spots: podbusters.) And they optimized their spots so that their brand could be recognizable even at six times the normal playing speed. Indeed, some researchers have found that fast-forwarders are even more attentive to ads, since they‘re watching closely to see when the commercial block has ended. The lesson is that once you identify and track how an audience actually interacts with television, it‘s only a matter of time until advertisers create ways to sell stuff to that audience. And when a full 40 percent of Twitter‘s traffic during peak usage is about television, it‘s not hard to see where the action is headed. ―This is a huge topic of conversation,‖ says Steve Hasker, Nielsen‘s president of media products and advertiser solutions. ―Their ad sales guys want to be able to go to the market and say, ‗Our program has three times the engagement, because we‘ve got many more people tweeting about it—and by the way, they‘re young, they‘re tech-savvy, and they buy lots of products.‘‖ And that‘s why, some day in the near future, a show‘s tweetability may be just as crucial as the sheer size of its audience. It‘s something that advertisers and networks already realize, albeit in a vague and unquantified way. But as Nielsen—and other analytics companies—race to capture a show‘s true impact across all platforms, it will change the way those shows are valued. That‘s good news for television that is worth talking about, watching again, chewing on, Tumbling over. It‘s good news for all of us. Tom Vanderbilt (tomvanderbilt nyc@gmail.com) wrote about autonomous cars in issue 20.02. Babelfish Articles May 2013 - July 2013 15-7-13 Page 13
  • 14. Venda de tablets cresce 164% no 1º trimestre do ano no Brasil Pesquisa do IDC aponta que 1,3 milhão de unidades foram vendidas. Projeção é de 5,9 milhões até o final de 2013 Proxxima 03/07/2013 14:01 Os tablets estão cada vez mais presentes na vida dos brasileiros. Segundo um estudo realizado pelo IDC Brasil, a venda de tablets no País cresceu 164% no primeiro trimestre de 2013, em comparação com o mesmo período do ano anterior. Com isso, a pesquisa aponta que mais de 1,3 milhão de aparelhos foram vendidos. Além disso, o crescimento do consumo de tablets fica mais evidente quando se compara o número registrado no primeiro trimestre deste ano, com o total registrado no ano de 2011 - quando foram vendidos 1,1 milhão de tablets no Brasil, segundo a consultoria. A expectativa do IDC é que 5,9 milhões de aparelhos sejam vendidos durante 2013, um aumento de 81% em relação a 2012. Social media generates ROI LONDON: Social media can be effective at driving brand sentiment, enhancing consumer engagement and increasing brand loyalty, as well as generating a potential ROI of more than 3:1, a new report has claimed. Research for the Internet Advertising Bureau UK (IAB UK), a trade association for digital advertising, examined more than 4,500 quantitative survey responses and 800 research panel interviews, as well as the social media pages of three FMCG brands over an eight week period, in order to assess the impact of social media at various stages in the purchase funnel. It found that four out of five consumers would be more inclined to buy a brand more often in the future after being exposed to a brand's social media presence, while 83% of consumers exposed to social media would trial a brand's product. All three brands considered experienced an uplift in sentiment after implementing their social media campaigns, of 22% in the case of food business Heinz, 19% for tea company Twinings, and 17% for snack foods brand Kettle. The IAB suggested that for every £1 spent in social media, a potential value of £3.34 could be generated. The study also revealed that posting regularly about a new product drove greater likelihood to trial, as was demonstrated by Heinz Beanz's promotion of its new Snap Pots during the research period. "In the case of encouraging trial for a newer product line, frequency becomes even more important to support the new concept, as the IAB study illustrates," commented Ian McCarthy, Heinz's Marketing Manager. Ian Ralph, the Director at Marketing Sciences who conducted the research, noted that social media could turn brand customers into brand fans. "By making people love, not just like your brand, you're more likely to drive future purchases and increase sales," he said. Writing in the current edition of Admap, Bryan Urbick of the Consumer Knowledge Centre, cautioned against reliance on the easily measurable metrics of social media, such as 'likes' and 'retweets', and argued that social must shift product. He referred to the salutary example of Pepsi's Refresh project, which saw the brand reallocate substantial budget away from traditional media into a social-media driven cause-marketing program supporting local organisations. The campaign was deemed a success according to standard social media metrics, such as 'likes' and 'followers', yet Pepsi lost 2.6% of the US carbonated drinks market over the same period. Data sourced from IAB, Admap; additional content by Warc staff, 4 July 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31614&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130704#gjkRguPqjLYmLimI.99 Telefônica/Vivo vai lançar publicidade móvel através de SMS geolocalizado Marina Tsutsumi A Telefônica/Vivo assumiu a necessidade de investir em mobile marketing e, como um dos focos dessa área, vai lançar no início de 2014 uma ferramenta de SMS em tempo real com base na localização do assinante. A empresa enviará mensagens publicitárias customizada de acordo com o posicionamento e com os interesses dos clientes. ―Somos a primeira operadora no Brasil a assumir o mobile para agregar valores, como um veículo de mídia. É claro que respeitamos a privacidade dos usuários, e com o SMS real time será possível oferecer mensagens relevantes, de acordo com os interesses dos clientes‖, diz Andreza Santana, reponsável pela publicidade na Telefónica Digital. Atualmente, a divisão digital da empresa possui sete produtos na área mobile no País e 55 milhões de assinantes que aceitam receber mensagens de publicidade (opt-in). ―Sabemos que o retorno mobile é maior do que o online. Para se ter uma ideia, 97% dos SMS são abertos em menos de cinco segundos após o recebimento‖, completa Santana. Don't Advertise Unless You Need To By Cory Treffiletti Wednesday, July 3, 2013 I finally got caught up on ―Mad Men‖ this past week, and I was struck by the scene where Don Draper tells Hershey‘s they don‘t need to advertise. Can you imagine an agency person saying that now? I can, though not for the same reason you might think. Babelfish Articles May 2013 - July 2013 15-7-13 Page 14
  • 15. There‘s a nuance to that line that I latched on to, though maybe not everyone else did. It‘s the difference between advertising and marketing. To me, advertising is paid media, whereas marketing is more holistic of everything you do as a brand to engage your customers. Advertising is a subset of marketing. Even though you may market your brand, you may not advertise your brand. There are many brands that have done well over the years with little to no ―advertising.‖ For years Pabst Beer did not advertise, though it did lots of underground marketing and as a result transformed into a hipster brand, which served it well. For many years Apple did little to no advertising and managed to create a culture of fanaticism, which the company parlayed into a massive advertising campaign to become one of the largest and most iconic brands in the world. I still don‘t remember having seen many, if any, ads for Hershey‘s chocolates, but I know the company does a ton of marketing and it works. Marketing is an art form powered by science, a dashboard with far too many buttons and levers to count (advertising is one of those levers). If you want to work at an advertising agency, you learn how to plan, spend and measure the effects of an ad budget. Working as a marketer is different because you have to learn about so many different ways to engage with customers. The industry likes to bucket these things into paid, earned and owned media, but it‘s much more diverse than that. In the ‗60s, I would imagine that most agencies focused on what was paid because that was what they had to work with. There was no clutter, few choices, and the mass audience engaged with the same basic media outlets: NBC, ABC and CBS. Radio was still strong, and print was focused on the newspapers, like The New York Times. At some point along the way, brilliant people came along and developed experiential marketing, street teams, and other ways of reaching an audience. Branded content, product placement and sponsorships came to light. Advertorials, affinity marketing, CRM and loyalty programs were launched. Shopper marketing, point of sale, affiliate programs and cause-based marketing were created. Don Draper and his team would be shocked at the options they would have in 2013 -- and that‘s without even touching on the Internet. I used to say that advertising is not rocket science, but in some ways marketing is closer to complex thinking than I ever would have thought it was. My professors in college prepared me for a world of advertising, and my first job prepared me for a world of marketing. College prepared me for communications planning and how to allocate budgets, but my first job forced me to think outside the paradigms of advertising and examine new and interesting ways to reach people. It didn‘t hurt that I started my first company at 21 as well, providing marketing solutions for artists and bands in New York. I had to come up with new ways to reach people using methods that didn‘t cost money. That solution feels like the root of marketing: doing more with less, and doing it well. So the next time you‘re sitting down to think of how to speak to your customers, think about the role of advertising vs. marketing and how they differ. I think you‘ll see an open opportunity to try some different things. Whether you‘re a brand manager or an agency account person, you‘ll start to find new ways to break through the clutter -- and they may not require advertising! Wible's Weekly - SVOD Overlap, TV Everywhere Improvements, and COPPA Complication By Tony Wible- Janney/MediaEntertainmentPublished: July 3, 2013 at 5:9 AM PDT SVOD Updates – According to a report by NPD Group, there was a 34% YoY increase in SVOD viewers watching TV shows in 1Q13. NFLX captured 89% share of the viewing units, which was down a bit form 93% in 1Q12. Hulu Plus grew its share from 7% in 1Q12 to 10% in 1Q13, while AMZN Prime accounted for 2%. Subscribers are now more likely to try multiple services. NFLX only subs fell to 67% from 76% in 1Q12 while 10% now use both NFLX and AMZN and 8% use NFLX and Hulu. The market place may get even more fragmented, as DISCA is prepared to offer direct consumer subscription services in a new window between traditional VOD and SVOD. TV Everywhere –According to comScore, TV Everywhere viewers across seven MVPDs grew 24% since January with a commensurate 27% increase in the number of videos streamed. However, CMCSA showed an odd 3% drop in viewers despite the fact that it has the largest platform. It appears that viewers are moving to TV Everywhere for must-see live programming based on the spike of XFinity viewership during the NCAA basketball championships in March. These are encouraging signs given the ratings, rights, and authentication headwinds that have plagued the service to date. However, TV Everywhere remains relatively small compared to SVOD providers with on a 1.6% combined share vs. 10.6% for NFLX. COPPA Connection – Apps for kids are currently extracting more user data than most users are aware of, without parental consent, according to a WSJ article. Collecting data from kid-friendly apps will be more difficult after July 1, when the new FTC rules on children's online privacy (COPPA) take effect. A recent WSJ article notes that many apps collect more data than most users are aware of. This new hurdle will limit the effectiveness of targeted adverting, and while it is a very tenuous connection, we believe that makes traditional advertising incrementally more attractive to the benefit of names like VIA. Digital Offset – NPD estimates that U.S. consumers spent $3.5 billion on games in 1Q13, which is flat YOY and reflects a 25% YOY increase in digital sales that offset weaker end of cycle packaged goods sales. The company estimated there was $559 million spent on used games and rentals and another $1.59 billion spent on all forms of digital media (DLC, social media, mobile, etc.). The numbers imply that digital is the largest component of overall videogame content spending. Separately, there are reports that GOOG is developing a videogame console that we suspect will push Android mobile games to TV screens. We do not believe this is a threat to console gaming and note that GME also recently made an investment in a similar hardware concept company called Game Stick. Digital Marketing – According to a survey by marketing software company Vocus and Inc. Magazine, small businesses are quickly moving to digital marketing strategies (website and social media) as we suspect financial and technical hurdles for digital marketing tools come down and are now seen as a more attractive alternative to traditional media. Small businesses currently have relatively simple goals but increasingly use digital tools to help drive customer engagement and reach new customer segments. Over time, this may signal a potential shift in local marketing away from local print, radio, and TV - albeit we believe each media serves a different purpose. Babelfish Articles May 2013 - July 2013 15-7-13 Page 15
  • 16. Tony Wible joined Janney Montgomery Scott in 2008 and is a Managing Director covering the Media and Entertainment sector after spending the previous 10 years at Citigroup Investment Research—most recently covering the Broadcasting and Entertainment Services industries. Tony can be reached at twible@janney.com. Janney Montgomery Scott LLC, is a U.S. broker-dealer registered with the U.S. Securities and Exchange Commission and a member of the New York Stock Exchange, the Financial Industry Regulatory Authority and the Securities Investor Protection Corp. Disclosures may be reviewed at Wible's Weekly. Online Video's Growing Pains by admin , Tuesday, July 2, 2013 The fastest growing channel in online advertising, online video is exploding. How many times have you heard that before? It‘s all true. But what‘s also true is that it could do a lot better. Nielsen's recently released TV ratings don‘t look good. Ratings of all shows of all broadcasters declined, some by more than 20%. And everyone saw it coming. So why didn‘t video (TV and online) planners and buyers compensate for the lost TV viewership with increased online buying? I think there are several big barriers preventing them from making the move. The Price of Video Online video is still very expensive -- in some cases, more expensive than TV. If I have to choose between spending the same amount for an old beloved product (TV) and a new, somewhat unproven product (digital), I‘m going to stick with my favorite, thank you very much. Happily, this is going to change soon. Prices will go down, with more content flowing from TV (watch for new cable channel content via TV-everywhere platforms and new syndication agreements), and more production of made-for-Web premium content by YouTube, AOL, Yahoo! and Netflix when they become ad-enabled). Until then, online is simply too pricey for some brands. Oh, the Complexity Online video remains complicated to execute, with five or six different screens, three operating systems, a multitude of encoding specs and technologies, several ways to measure everything and myriad certifications and protocols. Here, too, great progress has been made in the past few years. IAB‘s VAST is perhaps the most important component to unlock the massive potential of online video. In the pre-VAST days, it was impossible to run online video campaigns at scale. Now it is standard. Same goes for VPAID and interactive video campaigns Of course, there are ways to streamline the process and make sure every ad is served to the right user and screen without a lot of complexity. One is third-party ad serving, and if you aren‘t using it, you are making your life more difficult than necessary. Fear of the Unknown Over the past year, I‘ve had several conversations with TV folks that told me the ROI of online video is questionable. ―Seriously?‖ I responded. ―You have completion rate and click-through rate and conversation rate. You have brand lift surveys and sales impact measurement tools and everything is tracked!‖ But TV people still lack the confidence they have with TV, when they know, having done this for 40 years, what will be the impact on their brand or sales after buying a GRP point. This barrier will take education and time to overcome. Online people need to have the patience and determination to prove, with every campaign they run, that this medium is effective. It‘s up to us to explain the insights that can be drawn from analyzing online performance. Apples and oranges When marketers extend their campaigns across TV and online, tallying reach becomes problematic. They have GRPs for TV and impressions for online, but they don‘t know how to consolidate the two. Nielsen and comScore offer terrific data tools that solve this problem, and there are aggregation and visualization tools out there to make this data actionable for planners and buyers. Again, it‘s just a matter of time until these tools are widely adopted. Can’t see transparency I addressed this issue ( last year, and it hasn‘t budged much. There are two major transparency issues with online video today: 1. Buyers don‘t know what they are buying. The vast majority of online video is bought blind, and buyers cannot pick and choose the content their ads will accompany. Compared with TV, online is missing the contextual and psychological link between the ad and the content, which is what makes TV advertising so powerful. 2. Unfortunately, some video networks are not totally honest with their clients and deliver less-effective, but much cheaper, inbanner ads when they promised in-stream ads. Even absent deception, buyers don‘t always know the player size, media mix (premium vs. non-premium content) and whether or not the ad was actually viewable. Babelfish Articles May 2013 - July 2013 15-7-13 Page 16
  • 17. There are two solutions to these problems: sellers must clean up their acts for the sake of the industry, and they must reveal to advertisers the content and environment (player size, format, viewability) around the ad. In the meantime, buyers can protect themselves by utilizing video verification and viewability tools. Clearly, there are some hurdles preventing online video from reaching its potential, But soon, when there‘s more quality content online, less complexity and fragmentation, more confidence in online, more tools for cross-channel analytics, and a lot more transparency is common practice, online video will finally take off. And that will really be an explosion. Mobile devices take more viewing time NEW YORK: Mobile devices are taking an ever greater share of video viewing occasions, with live streams viewed via the devices significantly more popular than video on demand, new research has stated. Ooyala, the streaming media platform, measured the viewing habits of nearly 200m unique viewers among its partners in 130 countries, including Food Network, TVGuide, ESPN, Dell, the Times and Telegraph, for its Q1 Video Index report. It found that video views on mobile devices rose by 19% in the first quarter compared to the final quarter of 2012 and now accounted for 10% of all views. The comparable figure for the first quarter of 2012 was 4% of all views, reported MediaPost. More than half the viewing time was spent on long-form videos that lasted more than ten minutes, at 53% of smartphone video views and 52% of tablet views. Some 40% of smartphone views were of videos that lasted 30 minutes or more, but for the longest forms of video (60 minutes or more) tablets were the most-used platform, accounting for 25% all video views. Larger screens, whether tablets, connected TVs or gaming consoles, yielded higher engagement rates, according to Ooyala. "With viewers tuning in to their favorite long-form premium programming on all connected screens, video publishers have more opportunities to place targeted mid-roll ads within their content," the report added. "Savvy media publishers will use cutting-edge video analytics to understand and monetize plays on different device types." Live streams were also far more popular than video on demand, as Ooyala established that the time spent on live video by tablet users was an average of 16 minutes, or four times longer than the time spent with on-demand video. Read more at ttp://www.warc.com/LatestNews/News/EmailNews.news?ID=31607&Origin=WARCNewsEmail&utm_source=WarcNews&utm_medi um=email&utm_campaign=WarcNews20130702#T7EeRIq5JIsYpuOs.99 DSPs: Still Not Enough by Eric Bamberger, Monday, July 1, 2013 A colleague brought up some comments that I made two years ago about the weakness of DSPs and how they were just not cutting it for marketers. He now wondered if things had changed any: Had DSPSs closed that gap? It was a valid question – it wasn‘t that long ago that all anyone could talk about were DSPs. However, times have changed and DSPs are no longer the hot new technology; in fact, they are far from the only game in town. It was true then and it‘s true now: DSPs are not enough. While programmatic media buying didn‘t even have a name two years ago, everything seems to be real-time bidding (RTB) now. The old story was, you had to use a DSP to centralize your efforts, but the truth is that they could never scale to meet marketers‘ needs. This still stands true, but for a different reason. What has changed is the incredible amount of data available, and that the market‘s emphasis has now been centralized around this fire hose of data. To this end, marketers are exploring all options for effectively leveraging this data across all marketing tactics. It was this shift in attention that created an opening for DMPs. These data platforms have benefited from changes in the ad tech marketplace, but the new challenge is connecting the dots between all of these tools, the data they collect and resources with the knowledge to leverage it all. There is a very important human aspect and skill set needed for optimization and integrating all the data points together that gets lost in the focus on pure technology and self-service solutions. So now, DSPs are trying to pivot to DMPs to keep a toehold, but DMPs have their own flaws. What marketers need to strive toward is an integrated approach: a truly data-driven media strategy. To achieve this, marketers need not only to understand the value of their own data (first party) but also to figure out how to incorporate the immense amount of third-party data to complement it in a media setting. Where does this leave stand-alone DSPs? It‘s clear that spending your display media budget in a single place didn‘t work two years ago, and it doesn‘t work now. There are just too many data variables, inventory options, and media partners available to centralize display efforts to one partner. It‘s impossible to cover all bases, and the potential loss of opportunity is too large. Marketers need to stay current by testing new technologies and DSPs, which should be a part of their strategy, but not the only part. Even after all this time, DSPs lack finesse and tactical expertise. They may be a good vehicle to get scale (up to a point) and avoid duplication, but they clearly fall flat with more sophisticated marketing techniques. And, in the end, those sophisticated techniques are impossible to achieve when focusing on a single channel. Marketers need not only to look beyond DSPs, but beyond single-channel solutions. It is not until you bring together all of your media touchpoints (and their data) that you can begin to leverage the magic of cross-channel attribution. Babelfish Articles May 2013 - July 2013 15-7-13 Page 17
  • 18. Unilever, Mondelez test new ad tool LONDON: Unilever and Mondelez International have become the first global brand owners to sign up to Nielsen's combined TV and online ad measurement system, which began beta tests in the UK last week. Nielsen's Cross-Platform Campaign Ratings provide a combined audience figure for ads by measuring commercial exposure to TV and internet campaigns, in what the research company claims is a unique and previously-unreachable manner, reports Marketing Magazine. This is especially important against a background of double-digit spending growth for online video advertising in Europe, as reported at a recent IAB Europe conference. Several delegates at that event noted that multi-screening may prove a boost to online advertising, as TV shows are enhanced by the use of connected devices. Many also, however, expressed frustration at a continued lack of effective measurement. In the UK, Nielsen's new system combines figures from its Online Campaign Ratings with data from the Broadcasters' Audience Research Board, looking at reach, frequency, gross rating points, unique audience and impressions at a daily level, explained ClickZ. Derek Luddem, the area media manager for UK, Ireland & Nordics at Mondelez International, said: "Crucial for all advertisers is an understanding of how online and TV complement each other." "Removing the technical barriers to measuring how people really view content and advertising is crucial if we want to understand the delivery of our campaigns holistically," he added. Agencies and publishers that have signed up for the trial include Omnicom Media Group and Aegis Media. The latter's chief research officer, Mark Greenstreet, said: "We've now entered the era where being able to measure and plan exposure to communications across all screen devices is essential in order to deliver efficient and effective display campaigns." Data sourced from Marketing Magazine, Media Week, ClickZ; additional content by Warc staff, 1 July 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31600&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130701#4044pHoVwDi8HWVl.99 TV operators tap viewer data NEW YORK: Cable and satellite TV providers in the US are adopting contrasting approaches to utilising viewer data, and learning fast from broadcasters and online companies such as Google. DirecTV, the digital television and entertainment provider, collects information from customers' digital video recorders and combines it with market research from other providers, reports Reuters. Paul Guyardo, chief marketing officer at DirecTV, said: "We can target based on demographics, household income, geo-targeting, home owners versus rental – a wide variety." This, he insisted, made advertising more relevant for each consumer, in a similar fashion to that of online advertising. And, since January, DirecTV has been allowing 40 of its clients, including German carmaker Volkswagen, to run addressable ads, a move expected to net the US company $60m in revenue by the end of the year, according to someone familiar with the matter. That figure compares to zero just 12 months ago, and revenues are anticipated to rise by double-digit percentages for the foreseeable future, as DirecTV targets its 12m subscribers. Starz, the US premium film channel, piloted addressable ads for five days in March using data from DirecTV, and reported a 49% rise in sales among viewers exposed to these spots compared to a control group. Dish Network, the US satellite provider, has adopted a slightly different method. Warren Schlichting, its senior vice president of media sales, said the company did not want to target ads based on viewing habits, as it might make subscribers uncomfortable. He added that the issue of viewer privacy meant "the rules need to be worked out as companies and viewers get used to this kind of advertising." Nevertheless, Dish is embracing the technology, signing six and seven-figure deals with its advertisers, according to Schlichting. Cable provider Comcast is also investing in addressable advertising, and the growth of this phenomenon is concerning some consumer advocacy groups. Jeff Chester, of the Center for Digital Democracy, said: "Consumers are getting little in return except an invasion of privacy." Meanwhile , Jeff Minsky, of media agency OMD, warned there are technical hurdles to overcome, and suggested that despite the attractions of addressable advertising, "sometimes it's more cost-effective to just have a mass-market, national commercial." Data sourced from Reuters; additional content by Warc staff, 1 July 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31598&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130701#efzxAlfkWOQ3kumZ.99 Babelfish Articles May 2013 - July 2013 15-7-13 Page 18
  • 19. Future is bright for Australian OOH SYDNEY: Out-of-home advertising in Australia is growing strongly and new measurement approaches claim to be able to verify the sector's effectiveness with more precision than before. Figures from The Outdoor Media Association, quoted in Ad News, show that OOH adspend increased 5.2% to A$126.5m in the second quarter, and 4.2% for the year to date. The quarterly figures broke down between roadside other, including street furniture, taxis, bus and tram externals, on A$45.1m, roadside billboards with A$39.8m, transport on A$21.1m and retail with $20.5m. Separate forecasts from PwC have recently suggested that the OOH sector will expand at a compound annual growth rate CAGR of 3.8% to reach $654m in 2017. "People are spending a greater amount of time outdoors, shopping and commuting, solidifying OOH as the last true broadcast medium in today's fragmented media market," declared OMA chief executive Charmaine Moldrich. Separately, a new study carried out in Sydney aimed to measure the impact and effectiveness of out-of-home advertising. Posterscope Australia and Symphony Analytics & Research in partnership with APN Outdoor, used GPS technology and a mobile phone app to assess whether a 200-strong sample had been exposed to selected billboards and to check their recall and perceptions. One advertiser was reported as seeing a 68% increase in retailer visit intention for those exposed to the ads, compared to a control group. "Out-of-home exposure triggers attitudes and behaviours that consumers often have difficulty quantifying themselves," observed Cassandra Thomas-Smith, Posterscope Australia's Strategy & Insights Director. But Thomas-Smith also argued that exposure could now be verified, with attitude and behaviour shifts measured, rather than measurement starting at claimed awareness. Her comments were echoed by Eddy Hamad, Symphony's research director. "At the end of the day, clients want assurances as to whether their ads are truly memorable or not," he said. "With our approach, we were able to leverage the GPS capability in today's smartphones to provide clients with an answer to that conundrum." Data sourced from Ad News, Asian Media Journal; additional content by Warc staff, 2 July 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31606&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130702#DXOCbl8Gc5RUkTCA.99 Cannes 2013 Video: Proximity BBDO - Work That's Social by Design Melanie White | July 1, 2013 ClickZ speaks with Andrew Bailey, chairman at Proximity BBDO, North America, who discusses the importance of coming to a festival like Cannes Lions, why it's an exciting time in the digital marketing industry, and what they're focusing on given the nature of this constantly changing environment. According to Bailey, Proximity BBDO is focused on new formats and new opportunities to connect with consumers during this exciting and dynamic time in the business. "What we're really focused on across the board is making sure that the work that we're doing is very much social by design, that it has very good digital and social bones about it at the core, it's based on big ideas, and really great platforms that allow us to connect with consumers on behalf of the brands that we work on," says Bailey. Bailey comes to Cannes Lions "to see the standard of work that's established, what sets the bar for excellent work in the industry, and to make sure that we're up and educated on the latest trends and the things that are making great work great. It's one of the best ways to do that every year, and it's an inspiring time for our creatives and the leadership of the agencies alike." "The secondary objective is that we obviously share the ambition to do great work with our clients, and it's a really important time for our clients to also experience where the bar sits in terms of fantastic work so that when we partner together we both know what awesome work looks like and how to do more of it," says Bailey. Their goal is to help clients focus on what they should do versus what they could do, and to help them understand the things that they need to focus on to drive their business in the year to come. Toyota Injects Too Much Of Itself In "Meals Per Hour" By Larry Dobrow Thursday, June 27, 2013 Hi, I'm Larry. I'm the jerkhead who's about to write a few hundred words about why I don't like a brand video whose benefactors will donate a free meal to a needy family for every viewing. My parents only acknowledge my existence under oath. It's nice to make your cyber-acquaintance. The brand video in question is "Meals Per Hour," which recounts how Toyota helped a local food pantry get its act together by schooling eager grasshoppers in the ancient, mystical discipline of common sense. By showing how the patented Toyota Babelfish Articles May 2013 - July 2013 15-7-13 Page 19
  • 20. Production System can be adapted to help do-gooders automate and accelerate the process of doing good, the clip attempts to paint Toyota as the world's most dynamically pragmatic automaker. Which is already Toyota's rep in the minds of everyone except American-car loyalists and individuals hung up on the floor mat/acceleration PR fiasco of Aught-nine. Toyota should be commended for helping Sandy victims in a manner more involved than writing out a check; I'm just not sure I understand all the preening that accompanies it. Is the point to add "are nice people" to the company's brand-virtue checklist? Because if most consumers were asked to choose between a great product/so-so company and a so-so product/great company, they're choosing the great product. They're choosing the Toyota, no matter what a charity-stamped clip discloses about the production process, the people that lead it or the Japanese notion of "kaizen" (apparently there is no word or phrase in the English language that conveys "continuous improvement," besides "continuous improvement"). In automaking as in speed dating, "are nice people" largely gets lost in the mix. The clip kicks off exactly as one would expect it might, with the storm-porn trio of waves, lines and ruins. We meet George, a cheery, decent warehouse manager charged with getting boxes of food into the hands of needy families. The problem is that he can only do so much for them; the clip's best and most empathetic moment comes when, perched on a forklift, he recalls not having enough boxes to meet demand. "That kills you," he says, his matter-of-fact delivery more devastating than if he'd choked up while saying it. Enter a pair of Toyota production evangelists. One explains the general thinking behind the Toyota Production System (in a few words: "instead of doing things wrong, do them right"), while the other notes the benefits of such an approach ("things get done better"). As the soundtrack swells, we see the execs meeting with the food bank workers and pointing a lot, depicting the suggestion-making process with great and furious vigor. When we reach the mini-film's conclusion - it runs around six minutes long - that footage is cross-cut with clips from a Toyota plant. What works there works here, etc. There's reason to be impressed with what we're shown. By adjusting the size of the food boxes, Toyota allows the food bankers to fit 400 more in each Rockaways-bound truck. By reconfiguring the box-packing set-up, Toyota reduces the average packing time from three minutes to 11 seconds. Toyota also manages to shorten the time affected families wait on line to receive the boxes, with a rosy-cheeked kid noting that it only took "about a minute." All of this is good. Want a Camry now? Where Toyota goes wrong is inserting its production people into the mix. Me, I'd have centered the clip around George and shown us the transformation through his eyes, rather than larding it down with people in button-down shirts and khakis. Similarly, even as you see the hugely positive effect Toyota's production philosophy has had on a battered community, you can't help but want to flick the ears of anyone who says, turbo-earnestly, "Outside Toyota, 'problem' can sometimes have a negative connotation. I find that in many cases, it's better to say, 'We have something that we can improve.'" Wow, you're like the Elvis of self-congratulatory bromides. By all means, watch "Meals Per Hour" to run up the meal count. And again: props to Toyota for contributing in a sleeves-rolled-up way. Next time, though, don't be so blatant in your attempts to build up your brand rep on the back of your benevolence. It's tacky. These Speech Patterns Irritate the $#@* Out of Everyone Around You June 25, 2013 Years ago I worked for the poster child of buzzwords. He loved using terms like ―cones of precision‖ and ―silos‖ and ―drill down‖ and… let‘s just stop there. (He also bought one of the first Palm Pilots, which meant a roomful of people often sat waiting while he laboriously entered stuff on his calendar. Yep, he was that guy.) One of my colleagues maintained a running list of this guy‘s buzzwords. Whenever he whipped out his pad to jot down a new one two things happened: 1) our manager looked smug because he thought he had just said something so insightful my colleague wanted to capture it for posterity, and 2) the rest of us tried not to laugh because we knew what was really going on. Unfortunately, Palm Pilot aside, we all have a little of that guy in us. We use the same words too often. Or we use irritating speech patterns. Or we simply fall in love with certain expressions (I once conducted an all-too-public affair with the phrase, ―That‘s neither here nor there.‖) When we do, whatever we hoped to say gets lost in the noise of cliche or extreme repetition. See if you‘re guilty of any of these: 1. The Double Name: Using a person‘s name twice (worst case using your own name twice) in the same sentence as a way to justify unusual or unacceptable behavior. Typical usage: ―What can I say?" Shrug. "That‘s just Joe being Joe.‖ (Worse, ―Hey, that‘s just me being me.‖) Whenever you use the double name you‘re actually excusing behavior you would not tolerate from someone else. And everyone knows it. 2. The Fake Agreement: Pretending to agree while expressing the opposite point of view. Typical usage: ―I'm with you… but I just don‘t think we should take on that project.‖ In reality you aren't really with me because then you would agree with what I‘m saying. (Plus beginning a sentence with something like, ―I hear you…‖ is like a condescending pat on the head.) Don‘t try to couch a different opinion inside a warm and fuzzy Fake Agreement. If you disagree, just say so professionally. 3. The Unsupported Closure: Ending a discussion or making a decision without backup or solid justification. Typical usage: ―At the end of the day, we‘re here to sell products.‖ Really? I had no idea we‘re supposed to sell products! Babelfish Articles May 2013 - July 2013 15-7-13 Page 20
  • 21. The Unsupported Closure is the go-to move for people who want something a certain way and cannot or do not feel like explaining why. Whenever you feel one coming on, take a deep breath and start over; otherwise you‘ll spout inane platitudes instead of objective reasons that may actually help your employees get behind your decision. Quick note: A Fake Agreement combines nicely with an Unjustified Closure: ―I hear what you‘re saying, but at the end of the day revenue concerns must come first.‖ Win-win! 4. The False Uncertainty: Pretending you‘re not sure when in fact you really are. Typical usage: ―You know, when I think about it... I‘m not so sure shutting down that facility isn‘t the best option after all.‖ Oh, you‘re sure; you‘re just trying to create buy-in or a sense of inclusion by pretending you still have an open mind… or you‘re planting seeds for something you know you will eventually do. Never say you aren‘t sure unless you really aren't sure... and are truly willing to consider other viewpoints. 5. The First Person Theoretical: Pretending to be another person in order to explore different points of view. Typical usage: ―Let‘s say I‘m the average customer and I walk in your store and want to buy a shirt...‖ You can get away with this one occasionally, but more than that is really irritating. Don't believe me? Let‘s say I‘m the average reader and I know someone who uses the First Person Theoretical to pretend he's putting himself in another person's shoes. And let‘s say I‘m thinking it‘s really irritating. And let‘s say I‘m… Let's just say I‘m thinking we should move on. 6. The Favorite Phrase: Using a phrase so often that word is all anyone can hear. Typical usage: Any phrase that gets hammered to death. Here's an example. I knew someone who never met a sentence he couldn‘t find a way to shoehorn in a random ―in other words,‖ "as it relates to," or ―in general.‖ Often he could cram all three into the same sentence multiple times. Fall in love with a word or expression and not only do other people tire of it, they start to hear nothing else. Then whatever you hoped to get across gets lost as they think, ―Oh jeez, for once could he leave out the ‗that‘s neither here nor there‘‖? Ask someone if you overuse a word, phrase, or figure of speech. At first they‘ll look uncomfortable and try to avoid answering. Insist. Eventually they‘ll tell you, and I guarantee you‘ll never do it again. Trust me: Been there, been told that. Unilever, Mondelez test new ad tool LONDON: Unilever and Mondelez International have become the first global brand owners to sign up to Nielsen's combined TV and online ad measurement system, which was launched in the UK last week. Nielsen's Cross-Platform Campaign Ratings provide a combined audience figure for ads by measuring commercial exposure to TV and internet campaigns, in what the research company claims is a unique and previously-unreachable manner, reports Marketing Magazine. This is especially important against a background of double-digit spending growth for online video advertising in Europe, as reported at a recent IAB Europe conference. Several delegates at that event noted that multi-screening may prove a boost to online advertising, as TV shows are enhanced by the use of connected devices. Many also, however, expressed frustration at a continued lack of effective measurement. In the UK, Nielsen's new system combines figures from its Online Campaign Ratings with data from the Broadcasters' Audience Research Board, looking at reach, frequency, gross rating points, unique audience and impressions at a daily level, explained ClickZ. Derek Luddem, the area media manager for UK, Ireland & Nordics at Mondelez International, said: "Crucial for all advertisers is an understanding of how online and TV complement each other." "Removing the technical barriers to measuring how people really view content and advertising is crucial if we want to understand the delivery of our campaigns holistically," he added. Agencies and publishers that have signed up for the trial include Omnicom Media Group and Aegis Media. The latter's chief research officer, Mark Greenstreet, said: "We've now entered the era where being able to measure and plan exposure to communications across all screen devices is essential in order to deliver efficient and effective display campaigns." Data sourced from Marketing Magazine, Media Week, ClickZ; additional content by Warc staff, 1 July 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31600&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130701#JmEmc0LWAL9tai5V.99 BlackBerry anuncia prejuízo e que não atualizará SO do Playbook Empresa revelou prejuízo líquido de US$ 84 milhões. Além disso, CEO confirmou que não atualizará o PlayBook com o BlackBerry 10 Babelfish Articles May 2013 - July 2013 15-7-13 Page 21
  • 22. 28/06/2013 13:26 A BlackBerry divulgou um prejuízo líquido de US$ 84 milhões, ou US$ 0,16 por ação, no trimestre encerrado em 1º de junho. Um ano antes, a empresa teve prejuízo de US$ 518 milhões, ou US$ 0,99 por ação. Com o anúncio as ações caíram cerca de 18% nas negociações pré-abertura do mercado. O CEO da empresa, Thorsten Heins, também comunicou que não atualizará o tablet PlayBook para o novo sistema operacional da companhia, o BlackBerry 10. A justificativa apresentada pelo executivo é que a companhia não estava satisfeita com o nível de desempenho e experiência do usuário do BlackBerry 10 no PlayBook. Venda de PCs em queda; tablets ganham liderança No mundo, comercialização dos aparelhos acumulou marca negativa de 13% em relação aos primeiros meses de 2012 28 de Junho de 2013 • 16:57 Entre janeiro e março, houve um aumento de 15% na venda de smartphones, em comparação a 2012Crédito: Divulgação No primeiro trimestre deste ano, usuários domésticos compraram 12% menos computadores, de mesa ou portáteis, em comparação ao mesmo período do ano passado, segundo a IDC. Nesse período, 3,4 milhões de PCs foram vendidos, o que representa uma redução de 10%, sendo mais acentuada na comercialização de desktops (-11%) do que notebooks (-9%). O preço elevado é um dos principais fatores para esse cenário, que alcançou a marca negativa de 13% no mundo. ―O mercado de PCs é muito sensível a preços e qualquer variação reflete nas vendas‖, comenta Pedro Hagge, analista da IDC Brasil. Para este ano, a consultoria estima uma redução de 8% no mercado brasileiro de computadores. Smartphones e tablets Já a venda global de tablets deve atingir a marca de 230 milhões de unidades neste ano, um acréscimo de 58,7% em relação a 2012. No ano passado, 144,5 milhões foram vendidos. No Brasil, deverão ser comercializados 5,8 milhões de unidades, o que representará uma alta de 89% sobre 2012. A projeção é superior a da categoria de desktops (5,5 milhões). Os dados divulgados pela IDC apontam ainda que entre janeiro e março de 2013 foram vendidos 14 milhões de telefones celulares no País, um crescimento de 15% em comparação ao início de 2012. Os smartphones representaram 48% das vendas de aparelhos em abril. Cerca de 1 bilhão de telefones desta categoria devem ser vendidos no mundo até dezembro. Babelfish Articles May 2013 - July 2013 15-7-13 Page 22
  • 23. Leia Mais: http://www.meioemensagem.com.br/home/marketing/noticias/2013/06/28/Venda-de-PCs-em-queda-tablets-ganhamlideranca.html?utm_source=newsletter&utm_medium=email&utm_campaign=mmbymailgeral&utm_content=Venda+de+PCs+em+queda;+tablets+ganham+lideran%E7a#ixzz2XdMkYCdL How Meeker’s ‘Internet Trends 2013′ Became the Most-Viral Deck on SlideShare By Ross Mayfield on June 17, 2013 | 14 Comments Mary Meeker‘s Internet Trends 2013 report became the most viral presentation on SlideShare: It got 1 million views in just four days. How and why did it spread so fast? And how can others replicate such success? We decided to take an in-depth look at the waves of traffic Meeker‘s deck brought — when it got spikes, who picked it up, where it got shared. And we compared it to the waves of traffic we‘ve seen with other viral hits on SlideShare. What we found: Meeker‘s deck has more virality to come. Top presentations on SlideShare often have a second life, where a delayed wave of people find the deck via search and embed and share, making it viral once again. Viral Waves on SlideShare from Ross Mayfield The above presentation looks at three examples of viral distribution. First is the Mary Meeker deck, which is unique in how much blog and press attention it gained from the moment it was delivered at the D11 Conference last month. Meeker‘s slides have become an annual bellwether for the internet industry. This year it got 11 times the views her report last year fetched, with most technology press reporting on it and embedding the presentation. Second, is Netflix CEO Reed Hasting‘s presentation on the company‘s corporate Culture. Released in 2009, most of its views came from people searching and browsing on SlideShare. It is the 5th most popular presentation on SlideShare, with 4.5M views. Three years after its publication, Culture experienced a second wave of virality. It continued to gain search visits, but also was repeatedly embedded in blogs, and Netflix promoted the deck on its own site for recruiting purposes. With the second viral wave, its embed views are now twice that of views on the SlideShare site. The deck has been embedded in over 1755 sites on the web. Third, we have an example of a influential conference presentation. Sam Ramji originally presented on Darwin‘s Finches, 20th Century Business, and APIs at the Web 2.0 Expo in 2010. It gained its initial views from SlideShare, a post by Sam, and a post that embedded the deck in ReadWriteWeb and some smaller blogs. Over time it prompted blog posts like this one in 2012. The second wave of virality for Sam‘s deck came when the API startup space heated up two years later. Three acquisitions happened in eight days for over $450M, and the deck was referenced in posts like this one on TechCrunch. This second wave made it so embed views of the presentation are almost twice that of on-site views. Not everyone can post content as influential as these examples. But here are some tips for how you can make your SlideShare content a hit: • -Publish content that is cutting-edge, informative and insightful, or news-breaking • -Present it at a conference • -Embed it in your blog or company blog • -Promote it through your social networks or through your company‘s social channels • -Email a link to it if the content could prompt the media to write about it and embed it. Also consider if your content could add something to a story that has already been posted • -Use good descriptive and unique language in your presentation, title, description and tags to aid search engines • -Use SlideShare Pro analytics to monitor the traffic you get and take advantage of a second wave of virality if it happens. Now, go make your own viral waves! BBDO and Proximity Networks win the Grand Prix for Good and 98 other Lions at Cannes Author: Jack Leonard 27 June 2013 Altogether, the BBDO and Proximity global networks won the Grand Prix for Good, 20 Golds, 26 Silvers, and 52 Bronzes. Thirtyfive agencies had shortlisted work, including, for the first time, Garnier BBDO in Costa Rica, BBDO Guatemala, Weapon 7 in the UK, Darw!n BBDO in Belgium and Graffiti BBDO in Bucharest. BBDO and Proximity‘s lions were awarded for 45 brands – more than ever before. Here are a few notable winners out of the BBDO network that pushed the boundaries of tech for our clients. These three pieces of work are all still live, so click through the links and check out the work for yourself. ―GOLDEN CHAINS‖ from CLM BBDO Babelfish Articles May 2013 - July 2013 15-7-13 Page 23
  • 24. This music video for French artist ALB connected to eBay in order to auction off the artist‘s personal gear featured in the video. The proceeds funded ALB‘s upcoming album and revolutionized the way emerging artists connect with fans and finance their careers. (enable pop-ups to see the work on the link) http://albgoldenchains.com/ ―TRIAL BY TIMELINE‖ from COLENSO BBDO In order to bring the daily atrocities happening around the world home to the people of New Zealand – the freest country in the world – Colenso BBDO and Amnesty International created this interactive webpage. The page used software to analyze users‘ Facebook profiles, then showed a visual tour of all the possible crimes and punishments that their profiles qualified the users for. http://albgoldenchains.com/ #YOUDRIVE from AMV BBDO This campaign for Mercedes-Benz A-Class was the first TV campaign ever to be entirely controlled by social media. Three commercials played during the course of a show, each ending with a choice for the viewers to make through hashtag voting. The action of the following commercial depended on which choice had the most votes. You can get the full experience on YouTube below. http://www.youtube.com/user/mercedesbenzuk?annotation_id=annotation_63828&feature=iv&src_vid=VXO_WKe54jY See more at: http://digitallabblog.com/digital-lab-blog/bbdo-and-proximity-networks-win-the-grand-prix-for-good-and-98-other-lionsat-cannes/#sthash.7nljt9sm.dpuf Making Big Data Work for Your Organization Danny Camprubi 20 June 2013 The success of an organization increasingly depends on its ability to draw conclusions regarding the various types of data available. Staying ahead of competitors many times requires that organization to identify a trend, problem or opportunity microseconds before anyone else. That‘s why organizations must be able to analyze this information if they want to find insights that will help them to identify new opportunities underlying this phenomenon. People are spontaneously uploading large amounts of information on the internet, and this represents a great opportunity for companies to segment consumers according to their behavior and not only socio-demographic factors. Companies store transactional information from their customers by making them fill in forms, but the challenge for brands is to enrich these databases with information describing their customers‘ behavior and daily habits. This information can be obtained through the online conversation and can be processed, crossed and enriched with many other types of information through different models based on Big Data. Following this procedure, we can complement the information we already have from our customers without having to ask them directly and therefore provide more value-added proposals to clients from a brand perspective. Using the same technology with the right platform and the correct tactic, companies can achieve more ambitious goals that provide valuable information for the brand, which in turn could also enrich the customer‘s experience, improving the customer journey for all types of clients. Efficiency is a clear goal that is worth pursuing, but from a client‘s POV, the use of Big Data gains relevance in the field of content or customer service. Now that consumers have seen what social media and mass customization are capable of doing, they expect these new ―conversations‖ from their favorite brands. They aren‘t passive users anymore waiting to receive a message; they want to have an active, participatory role. A Spanish company that exemplifies this is Mapfre (insurance company) with its YCAR policy that allows young drivers to receive discounts for their car insurance renewal. These drivers have a hidden GPS in their vehicle that allows insurance company to know how they drive, and depending on their driving habits, the clients can receive a discount. This way Mapfre doesn‘t only focus on demographic information from its clients – they also depend on how each client drives. Over 80,000 young Spanish drivers have registered their car insurance with YCAR. Listening to the online ocean of conversations may help provide better services, improving the user experience. This new relationship between brands and consumers is here to stay. Companies must invest in gathering, processing and synchronizing this data because it‘s something distinctive among human interactions. In short, the future belongs to those brands that can transform data into insightful information to later be used for improving products or services. Author Danny Camprubi recently collaborated on a Digital Lab thought piece covering applications of Big Data in marketing. For more on the topic, check out that paper here. - See more at: http://digitallabblog.com/digital-lab-blog/making-big-data-work-for-your-organization/#sthash.kqLU2SBH.dpuf Pandora hits 2.5M in-car activations, will come in a third of new vehicles sold in the US this year Author: Nick Summers Source: The Next Web 25 June 2013 Pandora revealed today that its Internet radio service has been activated in over 2.5 million vehicles to date, through integrations with 23 car manufacturers and eight third-party stereo brands. The milestone is a small one considering the total number of drivers in the United States, Australia and New Zealand – the only countries where Pandora is currently available – but it points to a wider adoption of music streaming services by drivers. Babelfish Articles May 2013 - July 2013 15-7-13 Page 24
  • 25. Unlike Spotify, Rdio and Deezer, Pandora doesn‘t offer any traditional on-demand streaming options. The service uses infinite playlists instead, known as ‗stations‘, based on a particular music genre or artist. Competitors such as Last.fm have struggled to stay relevant over the last few years, but Pandora has shown consistent growth. The company announced back in April that it had signed up over 200 million users in the United States to date, half of which were added in the last two years. It also revealed that 70 million of its users were ‗monthly active listeners‘, clocking up just shy of 1.5 billion listener hours combined. Radio is still a huge part of the in-car music experience, although that can arguably be attributed to the disc jockeys and presenters tied to each station. Nevertheless, Pandora sees this as a huge area for growth – and rightly so – and has therefore pushed to integrate its service with as many car radios as possible. The company started in December 2010 by supporting Ford Sync‘s AppLink technology through its Pandora for Android app. The service is now supported in over 100 different car models from a wide range of manufacturers: BMW, Buick, Cadillac, Chevrolet, Ford, GMC, Honda, Hyundai, Lexus, Lincoln, Mazda, Mercedes-Benz, MINI, Nissan, Scion, Suzuki and Toyota. Pandora estimates that a third of all new cars sold in the US this year will come with its Internet radio service pre-installed. It also plans to team up with Dodge, Infiniti, Jeep, Kia and Ram for the first time, extending its reach even further. Most recently, the company launched a new HTML5 site built from the ground-up to be used on TVs and video game consoles. It‘s alsopurchased its own terrestrial radio station in a bid to access lower royalty rates, and launched a new ‗Premieres‘ feature in the US to give listenersearly access to new records. Image Credit: Spencer Platt/Getty Images - See more at: http://digitallabblog.com/digital-lab-blog/pandora-hits-2-5m-in-car-activations-will-come-in-a-third-of-new-vehiclessold-in-the-us-this-year/#sthash.BiZFnMng.dpuf Marketing gap exposed LONDON: Marketers' enthusiasm for social media and mobile channels is not necessarily shared by consumers who continue to prefer email for product research and post-purchase follow-up, new research has said. The Economist Intelligence Unit (EIU) surveyed 409 consumers and 257 marketing executives in the UK and US about the effectiveness of different marketing channels and found that 37% of consumers preferred email as their initial introduction to a product, with printed catalogues (35%) and personal referrals (33%) close behind. This compared to 21% choosing company social media or blogs, 18% third-party social media or blogs and just 3% mobile devices. When it came to post-purchase follow-up, consumer preferences were even more emphatic. Fully 52% chose email, ahead of the 25% who opted for referral by a trusted website, and 21% personal referrals. Company social media or blogs were favoured by 20%, third-party social media or blogs by 16% and mobile devices by 6%. Consumers also indicated that they welcomed e-mail offers that had been customised with recommendations based on previous purchases. The survey recorded a net preference score of 28% on this aspect of personalised communications. They were, however, less keen on communications with content that had been individualized for them personally, a net preference score of 10%, and customised web pages were even less popular, scoring 6%. The majority of marketers surveyed by the EIU continued to stress simple personalisation, while 63% of consumers said that such an approach was now so common they no longer noticed it. Worse, 33% cited superficial personalisation as one of their top annoyances. Some 45% of marketers said that one of the biggest stumbling blocks to more and better customisation was their inability to interpret Big Data. Over one third saw this skill as being vital to marketers in the future. Data sourced from EIU; additional content by Warc staff, 28 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31590&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130628#Ubw6VV7j6i0Hw4tJ.99 Showrooming ratios favour Amazon WORTHINGTON: The efforts by bricks-and-mortar retailers to combat showrooming are ultimately falling short, but some, such as those of Best Buy, are proving more effective than others, as a new metric – the showrooming ratio – has demonstrated. This has been devised by Prosper Insights & Analytics, the business intelligence firm, to indicate the likelihood that a mobile user will evaluate a product in a bricks-and-mortar store and ultimately may purchase the product via that store's site or a competitor's digital channel. The findings have been derived from a survey by Prosper Mobile Insights, which included 330 smartphone and tablet users who completed the survey on their devices. When compared to Amazon, Best Buy scored a showrooming ratio of 111.93 among mobile users in the market for electronics. These shoppers were therefore around 11% more likely to purchase via Amazon than a Best Buy digital channel. But the equivalent score for other bricks-and-mortar retailers was skewed far more heavily in favour of Amazon. Babelfish Articles May 2013 - July 2013 15-7-13 Page 25
  • 26. Target returned a score of 125.96 while that for Walmart stood at 135.04. A breakdown by gender revealed some further significant differences, particularly for male buyers. The showrooming ratios for men looking at electronic purchases, were 106.59 at Best Buy, but 145.46 at Target and 152.88 at Walmart. If men appeared more loyal to Best Buy, then women's allegiance leant towards Target. Comparable showrooming ratios for women were 118.98 at Best Buy, 109.40 at Target and 121.46 at Walmart. "Men are more prone to looking for a variety of brands, in-store experience, and the latest technology when shopping for electronics, whereas women are generally more focused on a budget-friendly price point," said Pam Goodfellow, analyst for Prosper Insights & Analytics. She noted that Best Buy's initiatives to improve its offerings and in-store customer experience had resonated with male mobile shoppers. "The challenge for Best Buy going forward will be to maintain a great experience and retain loyal shoppers," she added, "because Amazon will continue to up the ante when it comes to winning over its competitors' customers." Data sourced from Prosper Insights & Analytics; additional content by Warc staff, 28 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31592&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130628#yADZzh0D5d6OKv8A.99 18–29-Year-Olds Use Their Phones Totally Different From Older People JAY YAROW JUN. 27, 2013, 3:08 PM Young people have a totally different take on acceptable smartphone usage than older people. We did had Survey Monkey conduct a nationwide survey on how people are using their smartphones. Below, you can see a split in attitudes among people aged 18-29 and aged 49-60. The younger people think it's okay to answer the phone during dinner. The older folks do not. Read more: http://www.businessinsider.com/chart-of-the-day-1829-year-olds-use-their-phones-totally-different-from-older-people2013-6#ixzz2XTEfLo9u The effect of engagement with social media on purchase behaviors Edward Malthouse, Su Jung Kim and Bobby Calder Northwestern University, USA, Mark Vandenbosch Ivey Business School University of Western Ontario, Canada Babelfish Articles May 2013 - July 2013 15-7-13 Page 26
  • 27. Introduction The Internet and social media are enabling many new forms of advertising. The first decade or so of Internet advertising— largely consisting of display banner ads and email blasts—followed the approach of traditional print, broadcast, sales promotion and direct advertising, where the advertiser exposes passive eyeballs to some message, perhaps with a call to action inviting a click. The rise of social media and the proliferation of mobile devices are enabling new brand contact points that are more engaging and interactive. Such interactive contact points have the potential to be highly effective because they require the consumer to "lean forward" and actively process the brand meaning. But little is known about whether they affect purchase behaviors or how to design effective prompts. One form of interactive contact point takes place in a social media forum, where customers create or consume user-generated content (UGC) about a brand. In some cases consumers are incented to participate by either receiving some compensation from the sponsoring company, or by having a chance to win a large prize. For example, Proctor and Gamble's "The Mess Behind the Glory" contest for Bounty paper towels featured Olympic gold medalist Shawn Johnson. The Pepsi MAX contest asked users to create an ad for Pepsi MAX. Kit Kat Canada sponsored the "game time give away on Facebook" contest where those who entered were eligible to win an NFL beverage pail, football, pen or other NFL merchandise. In a different Facebook Kit Kat "fan of the month" contest, people were asked to share a photo of themselves on Facebook taking a break with Kit Kat, with the chance of being voted "fan of the month." One winner posted a photo of herself on top of a mountain eating a Kit Kat after her strenuous climb. Last year there were social media "burger wars" in Germany. McDonalds asked customers to propose a sandwich and the winner—the "McBrezel"—was offered at stores in Germany for a period of time and the winner received recognition. The "N.Y. CheeseBeef" came in second place. Burger King, in contrast, offered a free Whopper for a "like." The focus of this article is on such user generated content. We make three contributions. First, while such social media events and contests are becoming more common, there are no published studies measuring their effect on purchase behaviors. We test whether participating by contributing UGC affects purchase behaviors and illustrate ROI calculations. Second, we discuss explanations for the effect, which will help organizations create more effective contests going forward. Third, we will investigate the longevity of the effect—after participating, how long is behavior affected? Description of data and possible theoretical explanations We analyze data from the Air Miles Reward Program (AMRP), which has been operating in Canada since 1992 and is one of the largest loyalty programs in the world with over 10 million members representing over 67% of Canadian households. As a coalition loyalty program, members collect miles at over 100 sponsors in categories covering most aspects of routine purchases including those at grocery and drug stores, gas stations, home improvement centers, and credit card purchases. Collected miles can be exchanged for rewards such as travel (e.g., airline tickets, hotels), merchandize (e.g., toasters, coffee makers) and gift cards (e.g., gas, movies, groceries). In March 2009 AMRP launched a social media website for members to discuss the program and benefits. Posts made by members could be linked to their mile accumulation. Since the number of miles issued is roughly proportional to the amount spent, mile accumulation measures purchase behavior. Thus, this data set provides a unique opportunity to measure the effect of participation in a social media forum on purchase behaviors with the brand, in this case AMRP. If activity on the AMRP social media site affects the behavior of members, then their accumulation should increase for two possible reasons. First, they could switch their purchases to AMRP sponsors. For example, Shell is the AMRP sponsor in the gas category, and members could increase their accumulation by purchasing gasoline at Shell rather than a competitor. Second, a member could already be shopping at an AMRP sponsor but not swiping the card at the time of purchase. If members change behavior by swiping the card, they would increase their accumulation. Both represent a change in behavior that is favorable to AMRP, since sponsors compensate AMRP based on the number of miles issued, thus increasing revenue to AMRP. While our focus is on the AMRP brand, it is interesting to note that the first behavior, switching purchases to AMRP sponsors, is also favorable to the sponsors, while the second, swiping the card when it ordinarily is not swiped, is undesirable to the sponsors. We have no way of distinguishing between the behaviors, but from AMRP's perspective it does not matter, since both increase its revenues. We have one year of data recording activity on the AMRP social media site. Posting to the site is sporadic, with few posts on most days—the median number of posts per day for the date ranges studied here is only 12 and the third quartile is 119. There are, however, large spikes in activity with a maximum number of posts on a single day of 6,455. The spikes are driven by email promotions of several events/contests. There were three major contests in 2010, two of which will be discussed in this paper. The third shows similar results to the other two, but was substantially more complicated with additional possible confounds. Babelfish Articles May 2013 - July 2013 15-7-13 Page 27
  • 28. Figure 1: Distribution of the number of posts over time Figure 1 shows histograms of the number of visitors to the AMRP social media site around the two contests analyzed here. For both we will use the four-week period before the contest as a pre-measure of mile accumulation controlling for heterogeneity across customers, and accumulation in the eight weeks after the contest as the dependent variable. The black down arrows on the top of the plot indicate when emails were sent to members announcing the contest and providing a link on which recipients could click and be brought to the social media site. The red up arrows indicate when AMRP posted announcement reminders on the community page. Emails are the main driver of participation, since the large spikes in activity come after the email announcements. It is noteworthy that there were very few visits to the social media site before or after the contest period, reducing the risk of other social media confounds. The first contest (left panel) is labeled the "Block Party." On March 2, 2010, AMRP sent an email and posted a message announcing the one-year anniversary "Block Party," in which members were offered four chances to win 25,000 miles by becoming a member, posting a mileage-collection tip, uploading a picture, or making an "I like this" thumbs up to the community site. In sharing tips consumers are actively elaborating on their engagement with the AMRP. Some example posts include, "Safeway will give you 100 airmiles if you sign up for email direct"; "I always shop at Safeway, especially on Customer appreciation day to get 10X airmiles & then pay with my AMEX for double the points!!!" This contest gave an opportunity for members to share their personal experience with AMRP or listen to other member's experiences, which transforms customers from passive audiences to active players and increases engagement with the brand. Contributors are actively processing the main benefit they receive from AMRP, or how to increase their accumulation. The "Winter" contest invited members to "simply share with us what rewards you are redeeming for this winter season and we'll give you 10 bonus reward miles." In writing about their plans, contributors are elaborating on a personalized benefit of their relationship with AMRP. One member may want a gift card, while another wants a trip to Europe. They are also actively setting a goal and declaring it in a public forum. We are unable to separate out the different causal explanations—setting a goal, declaring the goal in public, processing and personalizing the core benefit of the AMRP brand—in this study, but all are part of engaging with a brand in social media. Responses varied in length, and we will study how the amount of elaboration affects mile accumulation. Some wrote one or two words, e.g., "Digital Camera!" Others wrote several sentences explaining why they wanted a particular reward, e.g., "We redeemed some of our airmiles for WestJet flights for our family of four to go and visit my Mom and Dad on Vancouver Island in the new year [sic]. It has been at least four years since our last visit which our youngest daugher [sic] (now 8) is having trouble remembering. So it will be really nice to see them again and be able to picture their place on the ocean." All who participated were exposed to the same email and announcement messages from AMRP and given the same reward (10 miles). If the amount of elaboration affects behavior, then we will have stronger evidence that the effect is due to engagement with the brand and is not just a traditional advertising or promotion effect. There are several possible theoretical explanations for why such participation should affect future behavior. Our analysis attempts to eliminate the history and selection threats to internal validity, and other explanations such as the effect being due to advertising or the reward. One possible explanation is that participants are elaborating on their relationship with the brand and its core benefit (rewards). The elaboration likelihood model (Petty and Cacioppo, 1986) predicts that high elaboration is persuasive in changing attitudes toward the brand, which then increases future behavior. Second, in the case of the Winter contest the participant is articulating a goal. Goal-setting theory (Locke and Latham, 2002) would also predict a change in future behavior. Third, in discussing involvement with the AMRP program and what rewards one has or will receive from it, the consumer is co-creating the brand and its benefits (Prahalad and Ramaswamy, 2004). A fourth explanation is that the effect is due to engagement (Brodie et al, 2010). Engagement is a broad concept that is difficult to define precisely, but most definitions subsume the other three explanations mentioned before. It should be emphasized that these explanations are not mutually-exclusive, alternative explanations. All are plausible mechanisms for how such participation can affect future behavior. The theory outlined here predicts that active processing of the brand benefits will cause a change in purchase behavior. Methodology Babelfish Articles May 2013 - July 2013 15-7-13 Page 28
  • 29. We analyze the two contests separately. AMRP provided the mile accumulation history for a stratified sample of 143,000 members, with all who participated in the contests and a random sample of non-participants. Black intervals on the horizontal axis of figure 1 show study periods, defining the main independent variable: for a contest, members who posted at least once during the study period are in the treatment group while others are in the control group. Study periods were selected to include most of the posting activities around a contest. The study period for the Block Party contest was two weeks and one week for the Winter contest, reflecting the fact that most posts for the Winter contest came within a week, while most posts for the Block Party came over a twoweek period of time. Pre-measures of behavior are computed from the four-week period, called the pre period"0," immediately preceding each study period. The pre measures are averaged over the four weeks to give average miles accumulated per week. We study how long participation affects behavior in the future by having eight additional post periods labeled periods 1, 2, ..., 8. Period lengths were round weeks because we suspect that accumulation behavior is at least somewhat periodic, with, for example, some households doing their grocery shopping every Saturday, etc. The dependent variables are yit, the number of miles accumulated by customer i during week t=0,1, ..., 8. Let yi0 be the pre measure, number of miles per week for customer i in the period before the contest. Within each contest, we will analyze the effects of a hierarchy of five different "actions" (independent variables) sequentially. The first action (j=1) is AMRP sending a member an email. We will compare behaviors in the study and post periods between those who receive emails and those who do not, after controlling for behavior in the pre period. The second action (j=2) is opening the email: among only those who received an email, we will compare those who opened it with those who did not. The third action (j=3) is clicking: among only those who opened the email, we will compare those who clicked on a link in the email bringing them to the AMRP website with those who did not click. The fourth action (j=4), which is part of the main focus of this paper, is participating: among those who clicked on the email, we compare those who participate by writing something on the AMRP website with those who do not. The fifth action, for the Winter contest only, is elaboration (j=5): among those who participated, we study the effect of the amount of elaboration. Let xij= 0 or 1 be the value of independent dummy variable j for member i where j=0 is for being a member (xi0=1, for all i), j=1 is for receiving an email, j=2 is for opening the email, j=3 is for clicking on the email, and j=4 is for participating in the contest. We will dichotomize elaboration, splitting at the median of 10 words. Using only the observations wherexi,j−1=1, we study the effect of xij,On yit, controlling for yi0 (j=1, 2, 3, 4 and t=1, 2, ..., 8); for example, we study the effect of participation (xi4) using only those who clicked on the email (xi3=1). The main focus of this study will be on participation in the contest (j=4) and elaboration (j=5), although the comments in this paragraph on validity apply to all four actions. Participants form the "treatment" group and non-participants are the control group. The control group attempts to address threats to internal validity such as history. Pre-measures account for observed customer heterogeneity. Although members self-select into participating in the contests, this before-after-with-control-quasi-experimental design is robust to most threats to internal validity (Churchill and lacobucci, 2008), since there are two separate bases for comparison, the pre measures and control group. In summary, the dependent variables are the number of miles accumulated in each of the eight weeks that follow a contest. We will run separate analyses for each of the eight weeks. There are two independent variables: whether or not the customer took the action j being studied (xij) e.g., participated in the contest, and pre-contest mile accumulation (yi0. The focus of this study is participation (j=4) and elaboration (j=5) and we therefore devote most of our discussion to it. The other three actions, receiving an email promotion, opening it, and clicking on it, are of secondary importance because these are traditional ad effects that have been studied for many years, while the other two are examples of engagement. Results Our discussion of the results will be divided into two parts, and an additional part for the Winter contest. We must propose a statistical model incorporating the two independent variables (pre measure and participation). This task is complicated by the possibility of interactions between them and nonlinearities. The first part of our discussion will be devoted to an exploration of some graphs to help us propose a suitable model. Next, we use the model to study the effects of all four of the actions on future behavior. For the Winter contest only, we will examine the effects of the amount elaboration among participants. 1. Exploratory data analysis To explore the data we assign members to three groups based on their behavior in the pre period: low members accumulated 0-10 miles in the pre period, medium members accumulated 11-45 miles, and high members accumulated between 46-500 miles. Each group constitutes about a third of the participants. One can think of these groups as customer segments, or as experimental blocks that account for heterogeneity among experimental units. Our final model (see table 1) will account for this observed heterogeneity at the individual, rather than block level, but we begin our exploration of the data with discrete blocks since the continuous model is more difficult to understand. Table 1, Sample sizes used to compute the means for the party contest and open/click/participate rates We begin with the Winter contest by examining the mean number of miles accumulated by period number, member segment and whether the member took a particular action. The Block Party produces similar results. Sample sizes are provided in table 1 for those who took the action and those who did not. For example, 97,846 were sent the Block Party email and we have a sample of 21,299 who did not receive the email. Of the 97,846 who received it, 50,827 opened it and 47,019 did not. All of the sample sizes are large. The estimates of the individual means in our plot and the Poisson regression coefficients in the next section will have small standard errors. Babelfish Articles May 2013 - July 2013 15-7-13 Page 29
  • 30. For each block-treatment combination the mean number of miles is plotted against time in the left panel of figure 2 and the natural logarithms of the means are shown in the right panel. (There were outliers in the data. All mile amounts less than 0 or greater than 500 were omitted from the analysis. Less than 1% of the data had negative miles, which probably indicate that the member returned something purchased earlier. Less than 1% of the data had values greater than 500 miles. Recall that each mile equals about 30 CAD and so earning more than 500 miles implies spending more than 15,000 CAD in a one-week period. These are probably businesses or individuals making an unusual rare purchase. Natural logs are used so that the plots will match the Poisson models estimated later.) The low-member block is shown by black lines with circles, the medium block by red lines with triangles and the high block by green lines with plus signs. The dashed lines show those who did the action and the solid line shows those who did not. Figure 2: Mean miles by period number for different member segments (blocks) and exposure to treatment (X) for winter contest The effects of participating on mean miles without logging are shown in the left panel. The difference between the solid and dashed lines shows the absolute magnitude of the effect. We begin with the lowest tier of customers accumulating 10 or fewer miles per week and shown with black circles. The black horizontal line between weeks 0 and 1 indicates the announcement. Prior to the line members in this block had low average accumulation (near 0) and there was little difference between those who participate and those who did not, suggesting that there is no selection bias. After the contest, the dashed line is systematically higher than the solid line, indicating that those who participate increase their accumulation over the control group. In weeks 4 and 7 there is little difference between the groups, but in other weeks the differences are sizable, suggesting the effects of engagement are long lasting. For those in the middle block shown with read triangles, the story is similar: there is little difference between the lines before the contest, but after those who engaged in the contest have systematically higher accumulation in many of the weeks. The effect lasts a long time into the future. The story is different for the best customers, shown by green plus signs. Those who ultimately engage have systematically higher accumulation before the contest—a selection bias. Also, both lines have substantially more variation, suggesting there are other factors affecting accumulation, i.e., history. Again, pre measures at the individual level address the selection bias, and the natural control group addresses the history. Thus, while there is self-selection into the treatment group, our design has substantial controls over confounds. The effect of engagement in the contest is short among the best customers, with a large difference in week 1, a smaller difference in week 2, and no difference thereafter. A possible explanation is that the most engaged customers are already using the AMPR card wherever they can, and so increasing accumulation will be difficult, since consumers are unlikely to increase their consumption in these categories to earn more miles. There are more opportunities to increase accumulation with customers in the other two blocks who, for example, could switch gas stations or start swiping the card. The logs of the means are plotted in the right plot of figure 2 and show a similar, but slightly different story. The differences for the low and medium block are more evident. The difference between the solid and dashed lines indicate the log ratio of the means because log(μ1) - log(μ0) = logμ1/μ0, where μ1 a mean for the treatment group (dashed line) and μ0 is a mean for the "control group (solid line). Thus, the difference indicates the relative (or multiplicative) increase due to the action. The plots show two interactions that must be accounted for in our model. First, the effect of engagement varies across customers. The effects are smaller for best customers than for weaker customers, and so the effect of the treatment should interact with the pre measure. Second, there is an interaction between treatment and time, with effects diminishing for best customers as the time since the contest increases. Babelfish Articles May 2013 - July 2013 15-7-13 Page 30
  • 31. Figure 3: Mean miles by period number for different member segments (blocks) and exposure to treatment (X) for party contest Babelfish Articles May 2013 - July 2013 15-7-13 Page 31
  • 32. Figure 3 shows similar plots for the Party contest. Again, we see that those who participated in the contest increase future mile accumulation more than those who do not. 2. Poisson models with interactions We now propose a model that accounts for heterogeneity at the individual level and accommodates the interactions identified in the plots. We will estimate separate Poisson regression models predicting yit(t=1, ..., 8) for action j using only observations where xi,j−1=1: This model includes an interaction term between the pre measure and treatment. We can understand the model better by writing out the fitted model for the different treatment values: Figure 4: Illustration of poisson model with interactions The model is illustrated in figure 4. The top line shows the model for those who do not participate (xij=0) where two of the terms drop out. The relationship between log mile accumulation in the future period and the log pre measure is a line with intercept β0 and slope β1. For those who participate (xij=1), the relationship is also linear (bottom line). The intercept is (β0+β2) and the slope is now (β1+β3). Thus, β2 measures the change in the intercept between the treatment and control groups, and β0>0 implies that those with low accumulation in pre period who participate have higher accumulation than those who do not. Likewise, β2=0 implies there is no difference in intercepts. Parameter β3 measures the difference in slopes. We can solve for the intersection of the two lines and find x=−β2/β3. Parameter estimates are provided in table 2 for participation and elaboration. Estimates from the first three actions have been omitted, since they are not about engagement, the central focus of this article. With such large sample sizes all P-values, including those from the first three actions, are very small, indicating that all parameters are significantly different from 0. Consider the estimates for participation (j=4) in the Winter contest during period 1. The estimated lines are shown in figure 3, where the solid line Babelfish Articles May 2013 - July 2013 15-7-13 Page 32
  • 33. is for those who did not participate and the dashed line is for those who did. The effect of participation is greatest for those who were inactive and decreases as the accumulation of miles in the base period increases. The bottom rows show the effect of high elaboration (> 10 words) for those who participated. The effects of elaboration (β2) are substantially smaller than those for participation, but significantly different from 0. There is a similar interaction effect (β3<0), where the best customers who are already using the card wherever they can have less opportunity to increase accumulation. Those who have higher elaboration accumulate more. In both contests and all eight future periods β2>0, and so the effect of participation is positive for those with no accumulation in the base period.Likewise, across contests and future periods β3<0, and so the participation effect diminishes as base-period accumulation increases. Table 2: Parameter estimates Estimating ROI The ROI of a contest can be estimated by evaluating this model for each action (j) and customer both with the action (xij=1) and without (xij=0). The difference in estimated accumulation is the return on a particular action. Let y*ijt be the estimated mile accumulation of customer i during period t assuming action j and let yijt be the expected accumulation without action j. For example, when j=1 (email) y*ijt − yijt gives the expected return for receiving the email. The overall change in miles issued due to all actions in a contest can be estimated by summing this over customers, actions and time periods: where (a)b equals a when b is true and 0 when b is false. The expected mile accumulations can be computed by computing the exponent of the log miles with and without action j: The difference, which can be substituted into the above expression, is thus We multiply the overall change (Δy) by the net value of a mile (revenue at issuance minus the projected cost of redemption) and subtract the cost of the contest for the ROI. Babelfish Articles May 2013 - July 2013 15-7-13 Page 33
  • 34. Conclusions and general discussion We have examined two social media contests and shown that those who participate consistently have significantly higher accumulation of miles during and after the contest for eight weeks, controlling for pre mile accumulation. While the tables of parameter estimates have been omitted from this paper, the data also show that those who received an email, opened it, or clicked on it also increased accumulation. Among those who participated in the Winter contest, those who elaborated more on their goal increased accumulation. There were interactions with the pre measure of behavior (mile accumulation), with the effect size decreasing as the pre measure increased. This is likely due to the best customers, who are already using the card wherever they can, not being able to increase accumulation without increasing their consumption. Our models enable the calculation of ROI. The first three actions (receiving an email, opening it, and clicking on it) can be viewed as traditional advertising effects, and there is nothing new in finding that exposure to an advertising message affects behaviors. It is our examination of the last two actions, participation and elaboration, that are the main contribution of this chapter. Among all people who were exposed to the message, opened it and clicked on it, we find that those who engaged by contributing content increased their future behavior further. One could argue that this effect is instead due to the incentive that participants received (ten miles in the Winter contest and the chance of winning 25,000 miles in the Block Party contest), but we attempt to rebut this argument by examining elaboration. If those who participate increase accumulation behavior only because they received an award, then elaboration should have no effect, since all participants received the same reward regardless of the amount of elaboration. Among those who participated, however, the amount of elaboration does affect future accumulation. Thus, the change in accumulation must be the consequence of some causal factor beyond the ten-mile incentive and exposure to advertising. We are unable to isolate the cause beyond this elaboration on the brand, but we have identified several possible explanations: the elaboration likelihood model, goal setting, co-creation and engagement. Further research is necessary and we now discuss important research questions unanswered by our data. First, the winter contest required the participant to declare a goal on the social media site, while the Block Party did not. The fact that we observed an increase in future behavior in both contests suggests that goal setting is not the only causal mechanism—it may contribute to the effectiveness of the Winter contest, but other explanations are required to explain the Block Party effect. Second, as with all UGC distributed in social media, the declaration of the goal occurs in a public, shared forum. If goal setting is part of the causal mix, to what extent is the public declaration important over setting a goal in private? For example, if AMRP members were asked to write what they would "redeem miles for in winter" on a piece of paper without showing it to anyone, would the change in future behavior be as great as declaring the goal in public? Such questions evaluate a core attribute of social media. We now return to some of the examples given in the introduction and apply the theories developed in this article to illustrate how they can help companies design more effective social media prompts. Consider the two Kit Kat contests, and recall that the Kit Kat brand is linked to taking a break. One contest offered the chance to win an NFL beverage pail in exchange for being a fan, while the other asked consumers to post a photo of themselves taking a break with Kit Kat. The latter contest forces processing of the core brand positioning, while the former does not. As with the Winter contest, sharing a photo of a break asks the consumer to customize the brand benefit. The role played by Kit Kat in the consumer's life is accentuated and the consumer makes a public pronouncement of this role. Our theory predicts that the latter will increase future consumption of Kit Kat, while the former will have less effect. In the case of the German burger wars, having consumers design a sandwich for the German market is an example of co-creation. Consumers are doing the work traditionally done by a new-product development team or franchisees. They are customizing and adapting the McDonalds brand by integrating the flavors and ingredients that they like into the product mix—in the case of McBrezel, Bavarian meatloaf with potato salad, mountain cheese and honey mustard all on a McRib bun. This requires a high level of engagement in comparison with the Burger King contest of simply liking a Whopper. The Pepsi Max and Bounty paper towel contests created similar high levels of brand engagement. There are other questions about the nature of engagement. How can we classify engagement into different types and do the different types have different effects on future behavior? For example, one split that has been proposed is utilitarian versus hedonic versus those that express identity (e.g., Cotte et al, 2006; Calder et al, 2009). Should the organization prompt utilitarian engagement and elaboration such as share a tip on collecting miles, should it prompt more hedonic UGC such as sharing a picture or story about enjoying a reward, or should it prompt uses to express their identity to the social media community by associating themselves with the brand (e.g., by liking or sharing it)? The answer will likely partially depend on the nature of the brand. Brands designed to express an identity such as Harley or Gucci are probably more likely to benefit from identity-expressing engagement such as liking than brands that play a different role in their customers' lives, e.g., Kit Kat or fast food. The answer likely also depends on a combination of which will generate the most responses and which will increase future behaviors. The main hypothesis posited by this article is that social media that prompts elaboration/co-creation around the brand— engagement, by some definitions—is the cause of the change in future behavior, but Baird and Paranis (2012) find that among a large set of reasons for visiting social media, interacting with brands is one of the least-checked reasons. Is it easier to attract participation when the prompt is not brand related, and are contests where the task required for entry is aligned with the brand more effective in changing future behavior than those that are unrelated? Marketers could find themselves in a difficult position, where interactions that are not focused on the brand have no effect on future purchase behavior, while consumers are not interested in participating in brand-focused activities. Answering such questions will provide guidance in designing future contests. This study has limitations and raises other questions. The quasi-experimental design used here, with pre-measures and a control group, is fairly robust to threats to internal validity, but it would be desirable to run true experiments where participation is manipulated, and to isolate the cause. We have been unable to study the effect of reading, without contributing, UGC. Does reading UGC written by another customer change purchase behavior? Future research should address this issue to present a complete picture of how contests work for both active (i.e., creating messages) and less active (i.e., reading other people's messages) forms of participation. Allowing consumers to co-create brand meaning and benefits would seem to be a more effective way to increase purchase behavior than simply exposing consumers to ad messages, but it also creates new challenges and risks. The meanings that some consumers create may not be "on strategy, in that they differ from what the organization intends for consumers to think about its brand. In some cases these alternative interpretations of the brand may be opportunities for the firm to expand the meaning of its Babelfish Articles May 2013 - July 2013 15-7-13 Page 34
  • 35. brand. The firm may not have realized that this alternative meaning is the reason why a large number of consumers are loyal. It is also possible, however, to envisage situations where the alternative interpretations cause the brand to lose focus and confuse other customers who read them. Famous examples of such user-generated content discussed by Deighton (2008) are the Dove Cream Oil Body Wash entries by "Biker Dave and "Bed Vlog. Such ads are still available on YouTube and do not communicate the intended brand meaning. An important opportunity for future research is in devising communication strategies for responding to such user-generated content. References Baird, C. H. and G. Parasnis (2012), "From Social Media to Social CRM", IBM, IBM Global Services, Somers, NY. Brodie, R.; Hollenbeek, L; Juric, B. and A. Ilic (2011), "Customer Engagement: Conceptual Domain, Fundamental Propositions, and Implications for Research," in: Journal of Service Research, Vol 14 (3), 252-271. Calder, B J.; Malthouse, E. C. and U. Schaedel(2009), "Engagement with Online Media and Advertising Effectiveness," in: Journal of Interactive Marketing, Vol. 69 (1), 321-331. Churchill, G.A. and D. lacobucci (2008), "Marketing Research Methodological Foundations," 9th edition, Thompson. Cotte, J.; Chowdhury, T.; Ratneshwar, S. and L. Ricci (2006), "Pleasure or Utility? Time Planning Style and Web Usage Behaviors," in: Journal of Interactive Marketing, Vol. 20 (1), 45-57. Deighton, J. (2008), "Dove: Evolution of a Brand," Harvard Business School case number 9-508-047 and teaching note. Locke, E.A and G. P. Latham (2002), "Building a practically useful theory of goal setting and task motivation: A 35-year odyssey," in: American Psychologist, Vol. 57 (9) 705-717. Petty, R. E., and J. T. Cacioppo (1986), "The elaboration likelihood model of persuasion," in: Advances in Experimental Social Psychology, Vol. 19, 123-205. Prahalad, C.K. and V. Ramaswamy (2004), "Co-creation experiences: the next practice in value creation," in: Journal of Interactive Marketing, Vol. 18 (3), 5-14. About the Authors Edward C. Malthouse is the Theodore R and Annie Laurie Sills Professor of Integrated Marketing Communication and Industrial Engineering, Northwestern University, United States. Su Jung Kim is a post doc in the department of Integrated Marketing Communications, Medill School, Northwestern University, United States Bobby J. Calder is the Charles H. Kellstadt Professor of Marketing, Psychology and Journalism, Kellogg School of Management, Northwestern University, United States. Mark Vandenbosch is the Kraft Professor in Marketing at the Richard Ivey School of Business, University of Western Ontario, Canada. Read more at http://www.warc.com/Content/ContentViewer.aspx?ID=53c9e2ef-dce8-4eea-ad147420b4794175&utm_source=TopicUpdate&utm_medium=email&utm_campaign=TopicUpdate20130627&MasterContentRef=53c9 e2ef-dce8-4eea-ad14-7420b4794175&GUserID=aa148723-89af-4adc-96d5-9df296627143#Dt0gRemzX3efPwlz.99 5 reasons to benchmark costs and why agencies should not be worried Posted on June 14, 2013 by Stephan Argent This post is by Stephan Argent, CEO of Argedia Group and a member of the Marketing FIRST Forum, the global consulting collective co-founded by TrinityP3 The old adage of ―measure twice, cut once‖ is something that holds true in marketing communications just as it does everywhere else. And while benchmarking is usually something initiated by marketers seeking to verify assumptions, it should be an initiative that‘s equally welcomed by agencies. Far from being something to dread, a benchmarking exercise is an opportunity to bring clarity through methodical evaluation, reasoned thinking and calm discussion. Here‘s why: 1. No more guess work A benchmarking exercise usually begins because a client assumes they‘ve been paying too much for services. Without proper benchmarks, the key word here is ―assumes‖ and benchmarking should be undertaken to specifically take the guesswork out of costs, and define what really constitutes fair value for everyone concerned. 2. Make budgets predictable I often hear marketers say things like, ―how is it that the same thing I asked for last week, costs twice as much the next?‖ What‘s really being said here is, ―I don‘t know how much things [should] cost.‖ A benchmarking exercise will bring clarity to agency cost structures and empower marketers to make informed decisions, armed with an understanding of what they should budget for. 3. Alleviate agency / client tensions Babelfish Articles May 2013 - July 2013 15-7-13 Page 35
  • 36. A benchmarking study can help reduce friction between agencies and their clients because cost structures are clearly defined before projects begin. If an issue subsequently arises around costs, both agency and client can point to recent benchmarks to justify or pushback on costs, thereby promoting discussion around data rather than assumptions. 4. Set performance expectations With cost benchmarks clearly defined, both marketers and agencies can discuss and agree on performance expectations and requirements at the outset. This enables agencies to knowingly undertake projects against a defined set of cost criteria and for clients to set aside adequate budgets that are in-line with expectations. 5. Manage change or integration During times of acquisition or major change – particularly when multiple agencies are involved – benchmarking can help marketers manage to define budgets and ensure multiple agencies are working within defined or accepted cost structures. Not arming yourself with up-to-date benchmarks can very quickly lead to unwelcome budget surprises that cause tension and dissatisfaction on both sides of the value equation. While these are just five positive highlights of benchmarking, the key takeaway here is marketers need to arm themselves with upto-date benchmarking data at least once a year. And it‘s an exercise and discussion agencies should welcome just as much as marketers welcome being able to manage budgets with transparency and ease. What benchmarks does your organisation use to define fair value and manage costs? How To Rescue Unhappy Mobile Video Consumers by Jeff Glueck, Wednesday, June 26, 2013 Anyone who has recently upgraded a smartphone from one that runs on a 3G network (say, the iPhone 4) to one that streams video and downloads songs on a 4G LTE network (for instance, the iPhone 5) knows anecdotally and intuitively that these activities are generally a better experience on the 4G LTE network. For consumers, 4G LTE is less prone to buffering and stuttering, and is one that, most of the time, just works. Wouldn‘t it be nice if that were simply the end of the story, and that the problems that have arisen from deluge of high-bandwidth video traffic onto mobile networks just vanished once everyone migrated to LTE? Unfortunately, while the situation is improving in the aggregate, this by no means allays the concerns of the many remaining frustrated video viewers who can‘t get their YouTube or Vimeo clips to start. These consumers generally aren‘t concerned about how crystal clear or ―HD-like‖ video is once it finally arrives – they simply want it to arrive quickly and to stream without interruption. Today, consumers perceive their mobile video quality of experience (QoE) by transmission quality, rather than visual quality. They‘ll reward an operator by staying with them, and even recommending them, if mobile video simply works. When operators look to manage and optimize the over-the-top (OTT) video traveling on their networks, so that each individual consumer receives a first-rate quality of experience - even when they‘re at the edge of a cell, inside a building or behind a wall there are three approaches that can be taken: 1. Operator-defined global optimization settings that are based on time of day or other static, outdated policies . 2. Using ―probes‖ in the radio access network (RAN) to identify congested cells – then focusing optimization only on those congested cells. 3. Using the cloud to target network congestion on a per-user, per-stream basis, and optimize troublesome videos accordingly. Option one is a legacy holdover from the recent past, in which expensive inline hardware was configured in mobile networks to reduce bandwidth on all videos at pre-defined times of day, effectively punishing all users on a given cell or even across the entire network whether there was congestion or not. It neglects to take into account the realities of modern mobile video traffic, where a previously uncongested cell may become overwhelmed due to an event or an unplanned spike in usage. Option two, the RAN probe approach, is more surgical and can identify congestion where it is occurring on individual cells, yet is expensive to deploy and still suffers from a macro-level approach. Many quality of experience issues have nothing to do with cellwide congestion, and are instead caused by impairments at the individual user level. This one-size-fits-all policy applies optimization across the board to everyone on a cell, while neglecting, say, a smaller number of individual users on a neighboring, uncongested cell who are abandoning their videos while cursing their operator. It‘s my belief, and that of many global mobile operators as well, that now that the technology exists to surgically optimize problematic video streams in the cloud on a real-time, per-user, per-stream basis, we‘ve reached a new milestone in managing mobile video QoE. Individual users can now be saved from an unhappy video session, without bandwidth reduction for the other users surrounding them. Operators also now have an insurance policy in hand that helps keep their users happy and satisfied with network performance, and not searching for reasons to blame their operator for poor video streaming sessions – as consumers are all too ready to do. Using the cloud to measure, quantify and mitigate video quality issues at the individual user level is more flexible, more costeffective and delivers a much higher QoE than alternative methods. It‘s enough to plug the remaining holes in LTE video quality, so that everyone -- you, me and that guy standing behind the wall -- can stream video to their heart‘s content. Jeff Glueck has served as CEO of Skyfire since July of 2009. Glueck is an entrepreneur whose first start-up, in 1999 -- site59.com - grew to over $125 million in travel ecommerce sales in two years before being acquired by Travelocity in 2002. Video Insider for Wednesday, June 26, 2013: http://www.mediapost.com/publications/article/203362/how-to-rescue-unhappy-mobile-video-consumers.html Babelfish Articles May 2013 - July 2013 15-7-13 Page 36
  • 37. Mobile Broadcast TV Users Mostly Dyle News Programming, Study Finds Daytime Is Mobile Prime-Time by Joe Mandese, Wednesday, Jun 26, 2013 Local and national news is the primary form of programming being viewed by mobile users accessing broadcast TV via mobile devices, according to estimates released this morning from TV audience measurement firm Rentrak. The data, which comes from Dyle, a new service enabling mobile users to access live broadcast TV signals on their handheld devices, indicates that news programming represents more than half of all viewing on mobile devices. Rentrak did not disclose the time frame being measured in the analysis or what the sample size, the composition, or specific methodology was, but said the findings also show that the average Dyle mobile TV user tunes in for more than 20 minutes per usage daily. The findings suggests that mobile technology is a potentially powerful medium for extending the reach and vitality of broadcast TV, especially during scheduled and breaking news cycles when on-the-go users cannot access conventional television. The study found that mobile broadcast TV usage ―spikes during critical news cycles,‖ specifically citing the manhunt that followed the Boston Marathon bombings, during which total viewing minutes were nearly double (+96%) the same period the previous week. The analysis also suggests that peak-time patterns are very different for mobile broadcast TV usage than in-home television viewing. Not surprisingly, daytime viewership between 6 a.m. and 4 p.m. represents the dominant share of mobile TV usage, with 45% of mobile TV usage occurring during that time period, compared with only 36% of in-home viewing during those hours. Read more: http://www.mediapost.com/publications/article/203343/mobile-broadcast-tv-users-mostly-dyle-newsprogram.html?edition=61565#ixzz2XKd1sRwh Omnicom, Not WPP Or Publicis, Dominates Madison Avenue's Tech Story by Joe Mandese, If you follow the trade press (including this publication), you‘d think that WPP and Publicis dominate Madison Avenue‘s technology beat, but according to some sophisticated new research analyzing the impact each of the major agency holding companies -- and their most influential people -- have on the ad industry technology narrative, Omnicom dominates that story, and by a significant margin. To understand the influence each of the major holding companies is having on the tech sector, including advertising and marketing technology, Online Media Daily partnered with Appinions, an innovative data-mining company that uses a proprietary method of measuring ―influence‖ by extracting and aggregating opinions from more than 6 million sources, including blogs, social networks, forums and conventional news coverage from newspaper and magazine articles. The holding company analysis, which was based on data from the past 60 days, shows that Omnicom indexed at 129 -- eight points higher than the second most influential company, WPP, and 20 points higher than third-place Publicis. In terms of tech influence, the rest of Madison Avenue were also-rans. Havas indexed at 51, and Interpublic, Dentsu (Aegis) and MDC Partners failed to index at all on the subject of technology. The Appinions analysis suggests that the influence was driven primarily by topical events -- especially important news stories and deals, including Omnicom‘s June 14th announcement of an exclusive partnership with Salesforce to power all of its social marketing and advertising services. Similarly, WPP‘s high-tech influencer ranking emanated from June 6th news of its partnership with Twitter to join its Data Alliance initiative. Twitter‘s April 22nd announcement of a partnership with Publicis‘ Starcom unit, as well as VivaKi‘s June 7th deal with native at start-up Nativo, boosted its rankings, while Havas‘ June 5th acquisition of data science firm MFG Labs and its May 16th deal to acquire ElisaDBI, boosted its standing. While technology is a catch-all for a variety of things, it is short code on Madison Avenue for ―innovation,‖ so it is seen as a strategic imperative and important bragging right for any holding company. That said, the Appinions analysis also looked at how effective each holding company was at influencing its own story -- the conversations circulating specifically around each holding company‘s own brand -- during the same period, and on that basis, WPP dominated with a 142 index, followed by Havas (138), Omnicom (127), Publicis (124), Interpublic (116), Dentsu (105) and MDC (69). Read more: http://www.mediapost.com/publications/article/203345/omnicom-not-wpp-or-publicis-dominates-madisonav.html?edition=61565#ixzz2XKhOdPwN Samsung faz a festa viral com Usher e Jay-Z Vídeos protagonizados pelos rappers e criados por agências distintas foram os virais mais assistidos da semana FELIPE TURLÃO| » 26 de Junho de 2013 • 10:10 "Looking 4 Myself", estrelada por Usher (foto), deverá ser ultrapassado por "Magna Carta Holy Grail", com Jay-Z Babelfish Articles May 2013 - July 2013 15-7-13 Page 37
  • 38. Duas ações criadas por agências distintas para produtos e objetivos totalmente diferentes entre si, garantiram à Samsung as duas primeiras posições entre os vídeos virais mais assistidos da semana, segundo medição da Visible Measures para o Advertising Age. A soma dos dois já garantiu 51 milhões de visualizações para a Samsung desde os lançamentos. A primeira ação, ―Looking 4 Myself‖, lançada no dia 13 de junho, consistia em uma experiência de filme digital criada pela agência Huge para engajar as pessoas com a Smart TV da Samsung, mostrando uma batalha épica do rapper Usher contra o seu lado obscuro. A peça já teve 27,4 milhões de visualizações. A outra, lançada três dias depois, foi um vídeo criado pela 72andSunny que mostra Jay-Z conversando com seus produtores sobre o novo álbum ―Magna Carta Holy Grail‖, para divulgar a iniciativa do anunciante de pagar US$ 5 por unidade do álbum que for baixada pelos seus clientes. A iniciativa rendeu o disco de platina para Jay-Z antes mesmo de o disco chegar às lojas, em 4 de julho. Para a Samsung, o vídeo rendeu mais 23,5 milhões de visualizações, mas com tendência de ultrapassar o esforço protagonizado por Usher nos próximos dias. Isso porque, se considerados apenas os últimos sete dias, "Looking 4 Myself" teve 12 milhões, contra 20 milhões de "Magna Carta Holy Grail" (veja a lista completa aqui). Leia Mais: http://www.meioemensagem.com.br/home/comunicacao/noticias/2013/06/26/Samsung-faz-a-festa-viral-com-Usher-eJay-Z.html#ixzz2XLuQhYB0 Consumers show mixed views on data NEW YORK: Consumers have a contradictory attitude to data, simultaneously wanting targeted ads but proving reluctant to share the information needed for ad targeting to work, a new survey has found. Infosys, the business consultancy, surveyed 1,000 consumers in each of five countries – the US, UK, France, Germany and Australia – on their sentiments regarding big data as it related to the retail, financial services, and health care industries. Some 72% of consumers worldwide thought that the online promotions or emails they received from retailers did not resonate with their personal interests and needs. But 78% said they would be more likely to purchase from a retailer again if they provided offers targeted to those interests and needs, while 71% felt the same about incentives based on location. The problem for retailers, however, is that just 16% of respondents were prepared to share social media profile information, making it more difficult for retailers to deliver the tailored offers people want. But when it comes to financial services, a clear majority of respondents (82%) positively expected their bank to mine personal data in order to protect against fraud. And 76% indicated they might change banks if a competitor could reassure them that their data and money would be safer. Overall, 39% of survey respondents described data-mining as invasive, but similar proportions said it was helpful (35%), convenient (32%) and time-saving (33%). German consumers were the least willing to share personal information. Stephen Pratt, Managing Partner for Worldwide Consulting and Systems Integration at Infosys, called the survey results a "wakeup call" to companies. He said there was an "enormous untapped opportunity to gain greater access to data by clearly communicating 'what's in it for me' to the customer". "Our research shows that people will certainly share though they're very savvy about how they give up their personal information," he explained, adding: "Companies need to crack the code in mining data effectively to gain consumer trust and clearly articulate the benefit to their customers." Data sourced from PR Newswire; additional content by Warc staff, 26 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31582&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130626#kot71B7wBPPCwp82.99 Shopping Then and Now: Five Ways Retail Has Changed and How Businesses Can Adapt THE RUNDOWN Constant connectivity, contextual relevance, and a multi-screen world are changing both online and offline shopping. As the digital and in-store experiences blur, it is opening up exciting new possibilities for forward-thinking retailers. Sridhar Ramaswamy, who as Google‘s SVP of Ads and Commerce oversees the technology behind Google Shopping, explains how combining classic retail truths with digital savvy can help retailers do what matters most: serve their customers better. Consumers no longer see a distinction between online and offline shopping. Whether it‘s searching on a laptop, browsing main street shops or hanging out at the mall — it‘s all shopping. To adapt to the competitive new reality, smart retailers are drawing on classic retailing truths of the past and augmenting them for the now. Innovative retailers are embracing this new reality, using digital to extend their storefronts. These are my top five observations on how shopping has changed and suggestions for how marketers can adapt to join the retail revolution. 1. Shoppers know as much as salespeople Babelfish Articles May 2013 - July 2013 15-7-13 Page 38
  • 39. Then: People came into stores with little to no knowledge and relied on a salesperson to advise them on what to buy. Now: Today‘s shoppers have become accustomed to doing their own research to get the maximum value out of every dollar they spend, and to feel secure about the purchases they‘re making. With this power shift comes a great opportunity for retailers; those that use tools and insights from the web have the opportunity to close the gap between the smart online consumer and the offline retailer, and to stand out in a competitive marketplace. Every moment in a consumer‘s decision journey matters. To win these moments, smart retailers need to be there when inspiration strikes consumers and as they start researching purchases online. 2. Retailers can deliver personal, relevant suggestions at scale Then: Retailing began with shopkeepers who would welcome in people from the neighborhood and then come to learn their customers‘ needs and preferences. Now: In our constantly connected world, a device is just a proxy for what really matters — getting to know your customers. Devices provide context, helping us learn what matters to a consumer in a particular location and at a particular time. Coupled with the intent provided by search, this is incredibly powerful. It can help retailers deliver relevant suggestions, essentially recreating those shopkeeper conversations at scale. The right message at the right moment is the next level in customer service — it can quickly and easily turn intent into action. Context also allows retailers to better than ever anticipate what a customer might need based on when, where and how they arrive at their site and help them decide how to respond to them. People are constantly looking for product information, deals, local availability and local discounts online — and retailers who aren‘t there to supply the right information when people raise their virtual hand will lose out. 3. Mobile devices drive foot traffic to stores Then: Finding the right store — and the product you needed — depended on familiarity, or serendipity. Now: As the lines blur between online and offline, innovative retailers are integrating mobile into their brick-and-mortar store experience. When shoppers search for a store name or category, they expect to see a map with directions, a phone number that they can easily click-to-call, or special offers that match their location and time of day. Adidas worked with their agency iProspect to evaluate how mobile clicks on their store locator links were driving in-store sales, and found that for a mobile investment of $1 million, the value brought by store locator clicks in mobile ads generated an extra $1.6 million in sales. The search element of shopping doesn‘t end once the customer walks into a store. At some point, we‘ve all been lost in the supermarket, searching the aisles for an elusive item. Mobile can be a map, a shopping list, a personal shopper, a salesperson and a product finder all at once. 4. Opinions carry more weight than ever Then: Retail therapy was an activity shared by friends and family — and word of mouth was a social force that transformed new products into must-haves and small shops into retail empires. Now: This is truer than ever. With YouTube and social networks like G+, people are now sharing their opinion on products not just with a group of friends, but with millions of people. This is why Google Shopping incorporates reviews and introduced shortlists to make it easy for people to discuss products and purchases with friends and family. Smart retailers are recognizing the opportunities that lie in digital where instead of basing campaigns on the broadest reach possible they can now zero in and speak directly with the individuals, or communities of fans, who love their products most. Retailers are also seizing the opportunities around online comments by advertising against terms like ―reviews‖ and working to promote the positive and counteract the negative. 5. Products can jump off the screen Then: The internet was fine for researching, but there was no replacement for holding, feeling, inspecting a physical product on a store shelf or showroom floor. Now: Interactive video, 360 views, gestural controls are just a few of the options bringing products alive on customers‘ multiple screens. Each digital stride opens exciting opportunities to close the gap between an on-screen image and that experience of holding a product in a store. Google Shopping has introduced 360-degree imagery to some product sets to give shoppers a better sense of what an item really looks like. Some innovative retailers are even offering shoppers virtual try-ons. Eye-glasses retailer Warby Parker, for example, invites customers to mix and match frames against their photo. When retailers showcase products online in a unique way, they create opportunities for customers to interact with products on an emotional level. When consumers‘ emotions are activated, their desire to buy is sparked. We are only beginning to see the possibilities. Babelfish Articles May 2013 - July 2013 15-7-13 Page 39
  • 40. "A device is just a proxy for what really matters — getting to know your customers. Devices provide context, helping us learn what matters to a consumer in a particular location and at a particular time." As digital weaves itself deeper into the fabric of our lives, smart retailers understand making the most of new opportunities is not about gadgets or technology. It‘s about human nature. Forward-thinking retailers should be looking at how they are interweaving digital tools like mobile, context, and video with sales, marketing and customer service. When these things are used well, the technology becomes invisible. Customers simply see retailers as being very good at giving them exactly what they want. • Sridhar Ramaswamy SVP Ads & Commerce at Google A Fool and Their Data are Soon Parted Posted October 8, 2012 In Fear & Loathing in the Ad Technology Stack (3/8/11), TOTSB posted about the latent dangers of having a tag management platform provided by the same vendor as the site analytics solution. Since then, IBM CoreMetrics joined the fray with their Digital Data Exchange solution. Earlier this week, the other and much bigger shoe dropped as Google announced their new free Tag Manager. With this latest development, it seemed like a good time to talk about the foolish handling of digital customer data, which may as well be money. How Does It Work? Signing-up for Google Tag Manager is easy enough and takes just a few minutes. Digital marketers can even "opt-out" of sharing their data anonymously for benchmarking purposes. However, this is a classic faux bone being thrown out by Google that is revealed on a subsequent screen. Later, users learn that are agreeing to share their data with DoubleClick, Google's advertising business and signing-up for AdWords, too. Meanwhile, on the final screen you can add then add some tags. Conveniently this screen is pre-populated with Google's Ad Words, DoubleClick Floodlight and Google Analytics tags. Supposedly other tags will be coming soon with such drag-and-drop simplicity. It is not clear that Google Tag Manager is server-server with the other Google products yet but when that does happen, certainly it will be positioned as a speed benefit. Nevermind the looming centralized consolidated Google master cookie. The Trojan Horse Considering the success of Google's model of free analytics and past ethical challenges as modus operandi, this should not be a big surprise. If you weren't already sharing your data with the Google datamining machine, now there is one more way for them to get even more breadth of data capture. Combined with their the search, free email, social and display media business, Google is sealing up the entire digital stack. That means they also have maximum depth, i.e. the full picture of cause and effect. It is this rich, vast global data set that Google's engineers have trained their sights on and let's face it - it is a brilliant strategy. At the same time, for most Tag Management System vendors this is a really big problem. The reality is that most digital marketer's aren't technically savvy enough to realize the free Google stack is a digital data Trojan Horse. Most of them have invested in nonserver-server cookie-based solutions that cannot compete with a server-side cloud-based architecture. Google will now commence to eat lesser TMS' lunch. Ironically, many digital marketers are using a paid TMS to deliver their free Google Analytics. Even if digital marketers decide to forgo Google Analytics and upgrade to a real enterprise solution (not a fake one like Premium), they still have a hole in the data bucket thanks to Tag Manager. Let's just call it their data collection hedge. The High Cost of "Free" Most digital marketers have been blissfully unaware of the actual game that they are playing for years under the auspices of free and easy-to-use. Perpetuated by self-appointed experts and others, there is a notion that espouses that analytics technology should be cheap and that it is more valuable to have a well-funded well-paid analytics people than an expensive tool. The above meme is so Google. It is self-serving and self-reinforcing as it works especially well for the cottage industry of certified implementers and analysts. Unfortunately, it usually means weak display media measurement, gaping holes in data security/intellectual property control and potentially privacy concerns. It could also mean inadvertently feeding your competition while Google makes a buck off of it. Babelfish Articles May 2013 - July 2013 15-7-13 Page 40
  • 41. The layers of conflicts of interest are deep and include: • Google Remarketing is conveniently baked into Google Analytics these days; the Google advertising cookie and the Google Analytics site cookie have been one and the same for some time now. • Google Analytics overstates Paid Search performance • Google recently changed how referral data is passed on landing pages obfuscating search performance • Google has thrown a bone on fractional attribution via Google Analytics and now DoubleClick Analytics, their credibility as an independent arbiter of their own performance is questionable Being Ethically Challenged About Others' Intellectual Property • The Power of Google: Serving Consumers or Threatening Competition? • FTC‘s Lawsuit Against Google Buzz • Google's iPhone Tracking Web Giant, Others Bypassed Apple Browser Settings for Guarding Privacy • Google 'in breach' of UK data privacy agreement • Google opt-out -- another blow to web analysts? • Should You Trust Google with Your Audience Data? • Why You Shouldn‘t Trust Google • Google, what were you thinking? • Obama-Google connection scares competitors Digital Marketer's Fasutian Bargain The question for today's digital marketers considering Tag Manager is the same as the Google Analytics question: Does sharing your company's most valuable asset (customer's behavioral data) with the best datamining conglomerate in the world worth more than the cost of the alternatives? For many smaller companies the answer could be yes, but for most advertisers the answer should be - thanks but no thanks.With smarmy analytics gurus and a cottage industry of Certified Google Analytics lackeys, smart advertisers need to really start paying attention to how much data they are really sharing with a company that Sir Martin Sorrel best referred to as a "frenemy." way back in 2007. Google's latest self-serving, 3-for-me and 1-for-you offering should motivate digital marketers to think differently about their value of their data, how much they trust others with it and what they need to do next to securely and exclusively control their data. So much for do no evil. How to Remove Google from your Ad Stack As an advertiser-oriented analytics consultant, I cannot think of any reason that Google products are appropriate except for small businesses and the truly ignorant. Savvy digital marketers do have other alternatives, but you will have to go out of your way and it won't be free. Get used to using common-sense and ROI/TCO analysis to justify technology investments or get used to sharing your lunch. Here are some thought-starters: • Tag Management. Best choice at this point: BrightTag. Yes, I am an advisor. However, the reason I am is because only BrightTag has looked beyond tags on pages to the underlying problem of data. Unlike the other TMS platforms, BT has already a few years into developing a powerful tool and scalable cloud infrastructure to offer digital marketer's a real alternative to Google's subtle data glom. And these days, most everyone that matters is server-server integrated with BT...except of course (wait for it...)...Google's products. • Analytics: Adobe, ComScore's Digital Analytix and if you must IBM CoreMetrics • Ad Server: MediaMind, Pointroll, MediaPlex and if you must Atlas......not Google Analytics • Search Management: Kenshoo, Adobe, Marin...anything but DART Search • Attribution: Adometry, Visual IQ have better methodologies...C3, Convertro, Clearsaling...not Google Analytics or DFA. • Demand Side Platform: MediaMath, Turn, DataXu...not Bid Manager. The truth of the matter should be getting clearer. If not, bring in independent viewpoints that are not invested in this madness. For publishers this is a much more complex proposition and the subject of a future post. http://www.meioemensagem.com.br/home/midia/noticias/2013/06/25/Brasil-consome-mais-noticiasonline.html?utm_source=ppblogs&utm_medium=twitter Brasil consome mais notícias online Índices atuais são similares a alguns dos nove mercados pesquisados pela Universidade de Oxford, mas brasileiros se destacam em redes sociais e no interesse em assinaturas digitais IGOR RIBEIRO| 25 de Junho de 2013 Babelfish Articles May 2013 - July 2013 15-7-13 Page 41
  • 42. Uma pesquisa do Reuters Institute for the Study of Journalism, órgão vinculado à Universidade de Oxford, atesta a predileção do brasileiro por meios digitais – especialmente redes sociais – e aponta uma novidade: o consumidor do Brasil está entre os que mais tem interesse em pagar por notícia online num futuro próximo. O estudo ouviu usuários de internet em outros oito mercados: Alemanha, Dinamarca, Espanha, Estados Unidos, França, Itália, Japão e Reino Unido. Segundo a pesquisa, Brasil é o terceiro colocado no índice de acesso a notícias, por qualquer meio, diariamente, com 88% (Japão vem em 1º lugar, com 92%; Dinamarca em 2º, com 89%). Também tem o maior índice de interessados em notícias, 87%, seguido por Espanha (81%) e Alemanha (80%), e o maior índice de visualização semanal de notícias online, com 90%, acima de Japão (85%) e Dinamarca (81%). Quando questionados sobre qual plataforma foi mais importante em seu consumo de notícia na última semana, 53% dos brasileiros responderam que a internet foi a principal, acima de TV (38%), rádio (2%) e impresso (6%). Os países que mais se aproximaram do Brasil na importância dada ao online foram Itália (42%) e Espanha (41%). Na comparação entre meios, rádio ganha na Alemanha (13%, mas TV ganha no país, com 43%), jornal ganha no Japão (20%, mas online ganha no país, com 39%) e TV reina na França (57%), onde também prevalece na comparação com outros meios. Respondentes foram estimulados a apontar pelo menos cinco editorias ou assuntos que mais lhe interessassem no noticiário. Pautas nacionais são as preferidas pelos consumidores em quase todos os países, inclusive no Brasil, campeão na categoria, com 73%, seguido por Inglaterra (71%) e Alemanha e Dinamarca, empatados em terceiro (70%). Os EUA são o único país onde notícias locais são preferidas (59% dos americanos). Essa é uma editoria também popular no Brasil (52%), assim como pautas sobre educação e saúde, preferidas por 55% dos brasileiros. O índice de compra de jornal impresso no Brasil é mediano: 34% disseram ter adquirido pelo menos um exemplar avulso na semana anterior (4º lugar); enquanto 13% são assinantes (5º lugar) e 4% tem assinatura combinada entre digital e impresso (3º lugar, posição dividida com outros três países). Está na frente entre as pessoas que pagaram por conteúdo digital no último ano, com 24%, acima de Itália (21%) e Espanha (16%). Também é o País com maior número de interessados em pagar por conteúdo digital num futuro próximo (veja gráfico abaixo). A maioria dos acessos brasileiros se dá por meio de computadores desktop, quesito no qual é campeão, com 81%. Smartphones foram usados para ler notícias por 23% dos respondentes do Brasil, que também se utilizaram de tablets (14%) e e-book readers (4%), além de Smart TVs, índice no qual o País também lidera, com 12%. O Brasil também é o lugar onde mais se acessa redes sociais e blogs (veja gráfico) e onde há o maior índice de compartilhamento de notícias nessas redes, com 44%, acima de Itália e Espanha. Brasileiros também se destacam nos comentários de links de notícias nas redes (38%). O Digitial News Report foi conduzido em ambiente online pela empresa de pesquisa YouGov, entre janeiro e fevereiro deste ano, quando foram questionadas cerca de 12 mil pessoas e contou com apoio de empresas como BBC e Google. Babelfish Articles May 2013 - July 2013 15-7-13 Page 42
  • 43. Leia Mais: http://www.meioemensagem.com.br/home/midia/noticias/2013/06/25/Brasil-consome-mais-noticiasonline.html?utm_source=ppblogs&utm_medium=twitter#ixzz2XH1aOCLW Babelfish Articles May 2013 - July 2013 15-7-13 Page 43
  • 44. Fox investe nos 'hábitos da classe C' para crescer no país 19/06/2013 - NELSON DE SÁ DE SÃO PAULO Objeto do desejo de quase todo produtor de conteúdo nos últimos dois anos, a classe C encontrou abrigo, em parte, nos canais da Fox. A principal receita da programadora, os recursos que recebe de operadoras como Net e Sky pela transmissão dos canais, cresceu 55% no ano fiscal que termina neste mês. 'Nação corintiana' estabelece canal de esporte da Fox no país "A gente via que o público que estava chegando [à TV paga], de classe C, tinha hábitos diferentes", descreve o diretor-geral, Gustavo Leme. "E a gente tinha que perseguir esses hábitos." A Fox partiu para dublar todos os canais, acelerou produções nacionais e contratou um vice de programação que vinha da TV aberta mais popular, ex-Record e SBT. Também lançou seu canal de esportes, concentrado em futebol e com programador também saído da TV aberta. Mas o salto de 55% na receita com "eyeballs", globos oculares, como Leme descreve o faturamento junto a assinantes das operadoras, não se refletiu em anúncios, que cresceram 28%. Com o percentual menor de publicidade, a média do aumento da receita da Fox foi de 49%. Folha - O que significou este último ano para a Fox? Gustavo Leme - Muita mudança. Chegou um momento em que a gente falou, "Olha, a Fox precisa se estruturar de maneira mais sólida no Brasil". Foi há praticamente dois anos. E coincidiu com a Fox comprando a parte da Hicks Muse no Fox Sports. Com o controle de todo o canal, a gente lançou no Brasil. Babelfish Articles May 2013 - July 2013 15-7-13 Page 44
  • 45. Nesse período, final de 2011, início de 2012, a gente estava num escritório que era um terço deste e decidiu que iria fazer toda a programação dos canais. Contratamos Paulo Franco, que vem de SBT, Record. A gente via que, com o crescimento da TV por assinatura, o público que estava chegando, de classe C, tinha hábitos diferentes. E a gente tinha que perseguir esses hábitos. Uma decisão foi trazer essa cultura. Um pouco de TV aberta. Com o Paulo, a partir da metade do ano passado a gente conseguiu com os canais de entretenimento --a Fox, o FX, o National Geographic, o Bem Simples, o Fox Life-- um crescimento muito grande em audiência. O Fox hoje é o primeiro entre todos os canais de TV por assinatura. O NatGeo é o primeiro em termos de documentários, passou o concorrente. O FX estava lá em 25º e agora está ranqueando entre os dez principais. Foi essa aposta de TV aberta, de investir na dublagem. Que virou uma política ampla. Para todos os canais. E a gente passou a produzir muito mais no Brasil. Os conteúdos do Bem Simples, por exemplo, eram todos feitos na Argentina, em português. "Homens Gourmet", Palmirinha, a Carla Pernambuco com "Brasil no Prato". E a gente está agora em parceria com a Casablanca para produzir a nova temporada. Em São Paulo? O estúdio é na Vila Mariana. A produção é terceirizada, porque esse é o objetivo da lei [12.485, de 2012], incentivar a produção independente nacional. A gente contratou a Casablanca também para o Fox Sports. E, para a programação, o Edu Zerbini, também um cara de TV aberta. Você também convidou Patrícia Abravanel, para o Bem Simples? Não era convite. A ideia era usar os produtos da Jequiti e eventualmente fazer um programa no Bem Simples. Não era tirar ela do SBT. Era uma coisa comercial, para vender produto cosmético. E não funcionou. Um ano atrás, você previa um crescimento de faturamento neste ano fiscal que termina em junho. Ele aconteceu? Aconteceu. Posso dar o número percentual. Comparado com o ano fiscal de 2012, que terminou em junho do ano passado, o de 2013 cresceu 49%, como total do faturamento. A gente teve aumento até da receita de publicidade, porque tem um pacote mais consistente, com entretenimento, esporte, "life style". O vice da Turner reclamou que no Brasil a TV paga cresce em penetração, mas a publicidade não acompanha. No caso da Fox, além do aumento na base de assinantes, tivemos aumento de audiência. Isso se reflete num número muito maior de telespectadores, só que a gente não consegue refletir isso no valor da publicidade. Você vai no anunciante num dado ano e vende um pacote por R$ 1 milhão; no ano seguinte, você teve aumento de base, você aumentou em 50% o número de "eyeballs", de pessoas que estão assistindo, e não consegue repassar para o cara de uma vez. Por que há essa lentidão? Porque as verbas já estão em grande parte comprometidas com algumas estratégias. O cara, para tirar dinheiro de TV aberta e passar para TV por assinatura, é difícil. Tem as bonificações de volume [recursos destinados pelos veículos às agências, para direcionar anunciantes]. Mas aí, no ano seguinte, você já consegue um pedaço maior e vai andando. Danilo Verpa - 31.abr.2013/Folhapress Gustavo Leme, diretor-geral da Fox Além da publicidade, a receita vem das assinaturas? É o quanto a gente cobra das operadoras, Net, Sky, Vivo, Claro. É o "fee", o valor que a gente cobra por assinante, por cada canal. O aumento foi muito grande, 55%. Foi o que mais carregou. Além da publicidade, a receita vem das assinaturas? É o quanto a gente cobra de Net, Sky, Claro. É o "fee", o valor que a gente cobra por assinante, por cada canal. O aumento foi grande, 55%. Foi o que mais carregou. Com relação à produção nacional, você vê a lei como positiva, hoje? Nunca vi a lei como positiva. Não mudou tanto o mercado, pelo menos para a gente, que iria produzir de qualquer maneira. Quando a gente produziu a série "9MM" nem se falava em lei, cotas, essas coisas. A gente tem muito mais conteúdo hoje, em termos de horas, do que determina a lei. A lei também não serviu para crescimento de mercado, porque o mercado iria crescer de qualquer jeito. E não serviu para mudar de mãos o dinheiro que é usado para produção independente, porque os mesmos estão produzindo, para os mesmos. As grandes produtoras continuam centralizando o dinheiro. E houve consequências negativas? O que teve um apelo negativo foi a questão de cotas de canais nas operadoras. Isso complicou muito a vida da gente. A gente já poderia ter mais canais, ter novos projetos, mas isso ficou inviável porque os canais obrigatórios acabaram tomando todo o espaço das operadoras. Eles estão sendo lançados e são canais que a gente pode ver que muito poucos têm alguma coisa a acrescentar para o telespectador. A Fox cresceu, mas a Globosat ainda está muito na frente? Muito. A gente nunca vai chegar ao tamanho que tem a Globosat. Babelfish Articles May 2013 - July 2013 15-7-13 Page 45
  • 46. Até pela limitação de canais. Pela limitação de canais. Pelo tamanho do investimento que eles já fizeram todos estes anos. A gente tem muito o que correr atrás. Também pelos conteúdos que eles têm. Um canal como o Viva, por exemplo, é baseado em todo o conteúdo histórico da Globo. Isso não tem preço. O canal Fox já está na frente da RedeTV! na TV paga? Não consistentemente, mas em muitos momentos o Fox e o Fox Sports superam alguns canais de TV aberta, dentro do universo de cabo. Isso acontece. Não é ainda um comportamente sistemático, mas em muitos momentos a gente já supera. Em alguns, a gente ficou em segundo, só atrás da Globo. Isso no âmbito da TV por assinatura, porque, se você for contar o universo total de TV, não tem como. Você considera que a maneira como é medida a audiência da TV por assinatura no Brasil está funcionando? Seria bom ter concorrência? Leme - Seria excelente ter concorrência. Acho muito inconsistente ainda, em termos de quantidade de "people meters", em termos de representatividade da amostra. Podia ser melhor. E também há mudanças muito rápidas, em termos de operadoras e pacotes, e isso é difícil de acompanhar. O Netflix estreou no Brasil há um ano e meio. Algum impacto? Não, até agora não. A gente vê com atenção, vê que tem tido um crescimento. Mas não teve nenhum impacto, em termos do nosso negócio, ainda. A Fox tem participação no Hulu [serviço concorrente do Netflix nos EUA]. Pretende trazer para cá? Não, não temos nenhum projeto de lançar o Hulu aqui. O projeto que a gente tem é o Fox Play. Mas é um projeto, não está nada fechado. É como HBO Go, o Muu da Globosat, esses. Através das operadoras ou direto na internet? Sempre passando pelas operadoras. A gente não quer fazer concorrência ao nosso próprio cliente. Vamos oferecer esse produto através da TV paga. É para este ano. How Happy Is Your Organization? by Susan David | 8:00 AM March 20, 2013 Today, March 20, 2013, marks the first ever International Day of Happiness. This was decreed last year by the United Nations following a meeting on well-being attended by government officials, economists, scholars, and business and spiritual leaders from around the world. It was hosted by Bhutan, a small but visionary country which famously uses Gross National Happiness (GNH) instead of Gross Domestic Product (GDP) to index its progress. The King of Bhutan, Jigme Khesar, has described GNH as "the bridge between the fundamental values of kindness, equality and humanity and the necessary pursuit of economic growth." He's talking, of course, about the well-documented connection between well-being and productivity — an interplay that should interest business leaders as much as it does political ones. As this issue of HBR makes clear, happy, engaged employees are good for the organization. Research shows they have better health, are more creative, produce better results, and are willing to go the extra mile. What's more, happiness is contagious; it creates a virtuous spiral that leads to further engagement. So how can leaders create happier organizations? Perhaps the first step is to clarify what we mean by "happy". Psychologists typically identify happiness by three distinct pathways. The first is the pleasant life, which involves positive experiences including contentment, hope, and sensory enjoyment. This kind of well-being is often referred to as hedonia, based on the Greek term for pleasure. The second is the engaged life, oreudaimonia. The ancient Greeks believed in a "daimon", or guardian spirit, that would guide you toward your destiny; the word also means genius. The engaged life thus refers to a person's ability to deploy his personal genius — to use his unique strengths and talents in a way that engages and absorbs him. The third pathway is the meaningful life, which relates to the desire to be part of something bigger than oneself — to belong and contribute to an institution that has purpose. All three of these pathways — pleasure, engagement, and meaning — are important. And business leaders can use this knowledge to ask some important questions about their organizations: • Do my employees enjoy their relationships and their environment at work? • Do they laugh? • Are my people in the right roles — ones that fit their skill sets and offer appropriate challenge? • Do they get to use their genius? • Do they understand the purpose of the organization? • Do they feel they're a part of something that matters? On this first International Day of Happiness, it's worth pausing to consider what contributes to happiness in your organization — your own happiness, as well as that of the people around you. I hope you will share what you discover. Babelfish Articles May 2013 - July 2013 15-7-13 Page 46
  • 47. Smartphones take off in UK LONDON: Almost three quarters of UK adult consumers now own a smartphone and over half of them are using the device to research and buy goods, a new survey has found. Deloitte, the consultancy, commissioned independent researchfrom TNS, involving more than 1,000 adults who were polled online during May 2013, and found that 72% owned a smartphone, up from just 58% just ten months earlier. In addition, some 57% had used a smartphone to check product availability and 50% had used it to buy goods. "The exponential rise in UK consumer's reliance on smartphones means mobile must become a priority for retailers," declared Ian Geddes, head of UK retail at Deloitte. "Customer experience, brand loyalty and ultimately sales will all increasingly stem from the mobile channel," he added. Generation Y is leading the charge, with nearly 90% of 25-34 year olds possessing a smartphone, and Deloitte urged retailers to align their channels to meet the demands of these technology-savvy shoppers One of the ways they are doing this is through the use of apps, which Deloitte found were increasingly being used to engage consumers, although a generational gap was evident. Some 48% of Generation Z, those aged 16-24, chose to shop via apps, but just 14% of 45-64 year olds did. But one of the great advantages of smartphones from a marketing point of view – its ability to deliver personalised content – was less welcome as far as consumers were concerned. Just 21% of respondents were happy to receive such communications. They were, however, more open to the opportunities offered by the smartphone's ability to identify their location, as 40% welcomed search results that were relevant to their whereabouts. Geddes warned that while personalisation could build brand loyalty, "push marketing can be seen as intrusive and consumers can sometimes feel bombarded". Those retailers who could find the right balance, he suggested, would "reap the benefits of a loyal customer". Along with the uptake of smartphones, UK consumers were also starting to embrace mobile payments, with 31% having used an online wallet. "This is the year that mobile moves from a project run by the IT department to a strategic priority in the boardroom," concluded Geddes. I Miss The Old Purchase Funnel by Jon Bond, Jun 21, 2013, 8:07 AM A long time ago, before Ogilvy, Bernbach and the real Mad Men, when advertising was taking its first baby steps toward being a legitimate profession, an early pioneer in advertising and sales techniques named Elmo Lewis invented a model to explain how it all worked. In 1898, before the car or airplane was invented and when the life expectancy of a man was just 48 years, the "AIDA" model was born. Ye Old Purchase Funnel AIDA -- which stands for attention interest desire action -- was the inspiration behind the classic purchase funnel, the accepted model for how advertising works for over 100 years. Nice and linear, it had consumers proceed along an orderly path from awareness to consideration to purchase, and for agencies and marketers, life was good. TV got you awareness, print informed you enough to get into your consideration set, and retail/POS brought it home. Then came the Internet. Okay -- somewhat disruptive -- the funnel wobbled a bit, but still it survived. Certainly Google wasn't complaining. Search made them rich by owning the bottom of the funnel. Web sites and "clicks" grabbed hold of the mid-funnel and helped start today's actions-based orientation, which marginalized "soft" attitudinal metrics, expensive tracking studies, and printed magazines you couldn't click through. Again, the purchase funnel teetered a bit, but remained standing. The Modern Purchase Funnel It wasn't until the rise of social media, with its hyper-complex, peer-to-peer dimension overlaid on top of a bevy of marketing touchpoints, that the soothing predictability of the purchase funnel finally suffered a mortal wound. McKinsey dealt the final death blow, introducing a "modern" version of the funnel. Compared to Ye Olde Purchase Funnel, it is decidedly non-linear. You go around two circles. But you can also go backwards. Or sideways (i think). And the new model was called.... um, uh … Come to think of it, there is no good name for the frankenfunnel they created because it‘s a shape not found in nature, which of course is brilliant for McKinsey because we have to call it "The McKinsey funnel" in order for anyone to know what we are talking about. Killing off Ye Olde Purchase Funnel was the easy part. Replacing it with something simple -- well, apparently that's not so simple. I've been in 20 meetings where the McKinsey frankenfunnel has come up, and not once has anyone had the courage to admit that they didn't have a clue what to do with it. Another brilliant stroke by those folks over at McKinsey. You have to hire them; then they'll explain it. In business meetings, no one will ever admit they don't get it. Safer to trash Elmo Lewis' creation (God rest his soul) and say something like: "Oh, yes -- the purchase funnel -- well, we ALL know that's dead!" which is always followed by a chorus of laughs and knowing harrumphs from a crowd thankful to have something to say on the topic that people understand and agree with. The conversation never progresses to anything practical, like what we should do differently. No one ever says anything like: "Hey, what are we going to do about those consumers entering the second loop?" At least with the old funnel, we knew what to do if we were weak at the top (more TV) or the bottom (more deals, POS, search). So, just what shape is the purchase journey today? My friend Erich Joachimsthaler from Vivaldi knows, and has a great way of presenting it on stage. Babelfish Articles May 2013 - July 2013 15-7-13 Page 47
  • 48. Your Very Own Purchase Journey: Complexity Sells Standing still as people mull the question, slowly the music comes up, giving away the answer -- it takes a few seconds and then the audience gets it ....flight of the bumblebees! Random. And that's the problem. The drunkard's walk. No one is solving it -- just making it ever more complicated -- complexity sells! In fact, that's why every consultancy or marketing thought leader worth their salt today has to have their very own purchase journey -- try Googling purchase journey if you want a real treat. Forget the shape for a moment -- let's just agree it's "non-linear." What's more important is that the number of touchpoints in the journey has almost doubled in a few short years, from 5.6 in 2009 to 10.4 in 2012. So now, there's a lot more to manage. The result: a proliferation of specialist agencies, one for each and every kind of touchpoint. There's one for events, one for shopper marketing, one for social, which isn't always the same as digital. It might be a different agency when digital is targeting Hispanics, except for the media placement, which is consolidated with one shop to get better rates. Or not. I'm told the average F1000 client now has 18 agencies. That means the average brand manager never gets to manage the brand, because they have to brief the 18 agencies all day -- 22 when there's a pitch happening. Shouldn't we be simplifying, not complicating? From Touchpoints To Trust Points But how do you clean up such a mess? Perhaps, the answer is not "touchpoints," it's "trust points:" interactions with credible thirdparty "influencers" who provide enough assurance in one shot to leap over many touchpoints and buy the damn product. Influence produced by trust points is the 3-point shot of marketing. Today, third-party credibility is the accelerator -- not impressions, reach, frequency, or any of the old linear ideas from 1898. A few good trust points are better than a lot of low-impact touchpoints. Think of the journey as reduced to 3 key steps (that's one less than even the super-simple AIDA model!) 1. Before Trust: I may or may not have heard of you, but either way, I don't trust you because no credible third party has validated you for me. 2. Trust: I trust you because i've had a quality interaction with an influencer who recommended you. 3. Advocacy: you are a super-satisfied customer who has developed into a brand advocate, and is now able to accelerate others through the purchase process. Your "value" is not only the lifetime value of the purchases you've made yourself, but the aggregate lifetime values of all the people who you have influenced to purchase the product. Retention Meets Acquisition Marketers have always undervalued the impact of customer retention, and have seen their jobs as mostly acquisition. However, it is 5 times as expensive to get a new customer as to keep an old one, so most marketers are probably under-resourcing retention. And in a connected world, the value of current customers is even more significant, as the lines between acquisition and retention become blurred, and current customers -- be they advocates or dissatisfied detractors -- have a very significant impact on acquisition. How do we know that the concept of trust-based marketing works? There is a lot of good data on third-party effectiveness. According to the Edelman trust barometer, we trust other people 78% of the time, but we only trust advertising direct from brands 18% of the time. Recently, BuzzFeed compared the results of the exact same content consumed by the end user with one key difference: the source. In test A, the content was delivered directly from the brand, while in case B the content was delivered via online sharing from a friend or other third party. Test B outperformed test A by nearly 300% in the ability to create intent, accelerating the path to purchase. And that's the key point. Who cares what shape the funnel is -- what matters is the ability to compress it. Appinions -- the influence marketing platform that first came up with the term "trust points" -- has done some interesting research on the topic as well. They found that the most influential, engaged brands attribute much more of their performance to blogs and social than to traditional press coverage of pushstyle product releases in the news stream. All of this is especially helpful in considered consumer purchases. Or in the B2B world where the decision is always complex, and influencer validation provides the time-honored "CYA" service for the executive who must make the final decision. In fact, 57% of all B2B decisions are essentially made before the first sales call based on brand reputation, fueled in large part by third-party recommendations. So only 43% of the B2B purchase journeys have any chance at all to culminate in a purchase win that wasn't already predetermined. I found this to be true in agency pitches. When the client had already "heard good things about us," our win percentage jumped dramatically. Trust-Based Marketing Is The Future Underlying the changes taking place in marketing is the structure of the Internet itself. As VivaKi thought leader Rishad Tobaccawala says: "The Internet is a connections engine." It is fundamentally about connecting people, which is the foundation upon which social media is built. That means social media is not so much a channel (Facebook, Twitter, etc) as a fabric that overlays everything. Every step in the journey can be disrupted today by peer-to-peer influence, even TV ( via social TV). Every interaction with influencers creates a leapfrog effect, capable of moving the recipient from prospect to buyer in one shot. Trust-based marketing is the future. It's not the old purchase funnel, but at least I can explain it to my mother. "Son, the best form of advertising is word of mouth." And that was true even before 1898. Comments on "I Miss The Old Purchase Funnel". 1. Steve Schildwachter from Draftfcb commented on: June 21, 2013 at 8:47 a.m. Jon, your article made me think twice about the fate of the purchase funnel. And I totally agree that word-of-mouth has always been the best form of advertising. Social Media's big benefit to marketers is that we can now monitor word-of-mouth, rather than guess what happens over the backyard fence. You overlook, however, the value of McKinsey's Consumer Decision Journey (yes, it has a name). The "CDJ" seems to have become an open-source for channel planners -- you see it used all over the place. It's not hard to understand or use, although I grant there's a lot of misunderstanding and misuse out there. I wouldn't blame the CDJ, I'd blame our Babelfish Articles May 2013 - July 2013 15-7-13 Page 48
  • 49. industry which usually gravitates toward quick-fix solutions devoid of clear, critical thinking. Your article, however, is indeed well thought-through, and despite minor disagreement about the CDJ, I loved it. Thanks. 2. Tom O'Brien from Socialarc commented on: June 21, 2013 at 9:25 a.m. Nice article - Trust Based Marketing is also the past! It was just disintermediated for a while by mass media! @tomob 3. Taylor Wray from Kantar Retail commented on: June 21, 2013 at 9:26 a.m. Great article. I'm digging the Marshall McLuhan-esque undertones a lot. Electronic technology is driving EVERYONE in society away from the rational, linear decision-making process (remember how text-heavy and logically persuasive print ads used to be a la David Ogilvy?) and toward a cyber-enabled "tribal" decision calculus based on trust, emotion, and word of mouth. Forget mass marketing; we've entered the era of peer-to-peer advertising. 4. Leslie Nolen from The Radial Group commented on: June 21, 2013 at 9:39 a.m. Pfui. Consumers and businesses have NEVER made rational/linear decisions. Pipeline/funnel/buying process/buying journey charts have always been tidy representations of a messy process. Yeah, the venues and delivery mechanisms have changed and multiplied. But objective information integrated with emotional triggers have always been part of the purchase picture - long before David Ogilvy. And they still are. WIIFM - in whatever way we choose to phrase it - remains the ultimate question that potential buyers are answering. The fact that people in the business of marketing (marketing their clients as well as their own 'unique expertise', of course) continue to find new trademark-worthy ways to slice and dice what they're doing shouldn't be confused with truly fundamental changes in how consumers and businesses decide to buy. 5. Paula Lynn from Who Else Unlimited commented on: June 21, 2013 at 9:41 a.m. It sounds more like a Professor Irwin Corey (Best masterful double talker ever) justifying his job from mouth to mouth. 1. Nicole Lipson from Georgia-Pacific commented on 5 hours ago It's true that trust points have more value than touch points, and third-party endorsements are almost always more favorably recieved than company-speak. Read Google's ZMOT-Zero Moment of Truth. The funnel is no longer relevant...Google says it's more like the airline industry's flight map...many key hubs and touches coming and going from one place to next. The question is...where is the most relevant hub, and who is your most trusted advocate? Finding both is the sweet spot! 2. Paula Lynn from Who Else Unlimited commented on 6 hours ago It sounds more like a Professor Irwin Corey (Best masterful double talker ever) justifying his job from mouth to mouth. 3. Leslie Nolen from The Radial Group commented on 6 hours ago Pfui. Consumers and businesses have NEVER made rational/linear decisions. Pipeline/funnel/buying process/buying journey charts have always been tidy representations of a messy process. Yeah, the venues and delivery mechanisms have changed and multiplied. But objective information integrated with emotional triggers have always been part of the purchase picture - long before David Ogilvy. And they still are. WIIFM - in whatever way we choose to phrase it - remains the ultimate question that potential buyers are answering. The fact that people in the business of marketing (marketing their clients as well as their own 'unique expertise', of course) continue to find new trademark-worthy ways to slice and dice what they're doing shouldn't be confused with truly fundamental changes in how consumers and businesses decide to buy. 4. Read more replies by: Taylor Wray, Kantar Retail (7 hours ago) Tom O'Brien, Socialarc (7 hours ago) 5. Follow this conversation Join this conversation The Mobile Coupon App That Didn't Make Itby Chuck Martin(MobileShopTalk - June 20, 2013) 4 replies in last 24 hours; 4 replies total 6. Chuck Martin from Chuck Martin commented on 4 hours ago Your reasoning is dead on, Stephanie. Serious behavioral changes in coupon redemption and the notion of not being instantly gratified are challenging, at the least. 7. Stephanie Kovner Bryant from SKB Consulting LLC commented on 8 hours ago IMHO there are two issues with this model. First, asking consumers to photograph receipts is a barrier to many consumers. (They need to remember to photograph it.) Second, they like get the discounts at time of purchase. (Nothing better than seeing the total decrease at checkout as opposed to remembering what they have in their redemption account.) Endorse worked against both of these. Digital/mobile coupons should make the process seamless, easier and instant. Not make more work for consumers. 8. Chuck Martin from Chuck Martin commented on Yesterday, 11:02 PM Thanks Stan, am working on finding that out. Was a pretty cool app, IMHO. 9. Read more replies by: Babelfish Articles May 2013 - July 2013 15-7-13 Page 49
  • 50. Stan Valinski, Multi-Media Solutions Group (Yesterday, 6:45 PM) 10. Follow this conversation Join this conversation How To Create Real-Time Video: Five Things Brands Should Doby Eric Korsh(Video Insider - June 19, 2013) 3 replies in last 24 hours; 4 replies total 11. Pete Austin from Triggered Messaging commented on 4 hours ago @Eric. Creative work requires a small core team who can focus on the task at hand and progress rapidly. I've seen on several occasions how broadening consultation can turn a 2 day task into a 2 month task. With the risk that it gets dropped as the client gets frustrated with the lack of results. Or, if you're not going to enlarge the team, but will replace artists with lawyers, then how does that possibly make sense? @Lane. I don't see how the culture of legal teams can adjust, because their job is to give very accurate advice and it would require superhuman powers to do that quickly enough during the rapid, quick-fire generation of ideas that happens at the start of a project. 12. Lane Murphy from Relevant24 commented on 9 hours ago Eric, I could not agree with you more (and for that...disagree with Peter). Relevant content marketing is a completely new marketing discipline and a few innovative companies are hacking out the approval process as they go. A brand's biggest challenge to be relevant is to have meaningful content ready to publish the moment they want to enter a conversation. Of course this means setting up the content "guard rails" with a client's legal department to ensure timely approvals occur. The culture of legal departments is currently not set up for rapid approvals...however as the market for relevant content grows the culture of legal teams will need to adjust, or the brand will always miss the relevancy window. 13. Eric Korsh from Digitas commented on Yesterday, 7:53 PM Pete! My favorite thing is when people disagree or dialogue around my thoughts. Too few people take issue with the POVs in this column in general. But - it would be helpful if you could do better than "your industry is screwed" - how do you think that consulting with colleagues at work portends the end of the global marketing industry? 14. Follow this conversation Join this conversation There are 4 more replies. Impatiens Face Mildew And Communication Crisesby Thom Forbes(Marketing Daily - Top of the News - June 21, 2013) 3 replies in last 24 hours; 3 replies total 15. Nina Lentini from MediaPost Communications commented on 5 hours ago Thanks for letting us know, Jim. First day of summer AND a Friday ... 16. Thom Forbes from T.H. Forbes Co. commented on 5 hours ago Ach! I am being punished for my penchant for puns - they seem to be self-generating. Thanks for gentle correction, Jim. 17. Jim Andrews from IEG commented on 6 hours ago And apparently, Thom, guys like you will refer to the magazine (perhaps rightly so) as Harper's Bizarre instead of Harper's Bazaar! 18. Follow this conversation Join this conversation Check, Please!by Ari Rosenberg(Online Publishing Insider - June 20, 2013) 2 replies in last 24 hours; 7 replies total 19. Tony Anderson from SF Ad Guy commented on Yesterday, 7:40 PM Good one Ari. @Scott - Don't forget Torrey Pines in San Diego...one of my favs. :) 20. Tim Orr from Barnett Orr Marketing Group, Inc. commented on Yesterday, 5:21 PM Even lunch is a problem. I've seen reps or vendors who frequently bought the lunch get an unfair advantage and the ones who did not run last. It reminds me of the old joke that begins, "Would you sleep with me for a million dollars?" Still, we probably have even less chance of stopping lunches than we have of stopping expensive gifts and trips. I worked in a highly regulated industry once. We couldn't give or receive anything worth more than $25, as I recall. It usually only takes one returned gift for a vendor to get the message. And, when it comes right down to it, they then have to begin focusing on how their business offering will benefit their clients. And that's a good thing! 21. Follow this conversation Join this conversation There are 7 more replies. Are Bad Mobile Shopping Experiences Poisoning The M-Commerce Well?by Steve Smith(Mobile Insider - June 20, 2013) 2 replies in last 24 hours; 3 replies total 22. Pete Austin from Triggered Messaging commented on 11 hours ago If only 26% have "have found the [mobile] checkout process frustrating", this seems enormously better than conventional shops where I'm confident that 100% have found the checkout experience frustrating. Everyone must have experienced some problem with a till at some time in their life right? Frankly I don't find a difference of this scale credible, so the survey must either be wrong or, more-likely, it's using a cherry-picked number that doesn't represent real-world experience. 23. Carissa Ganelli from LightningBuy commented on Yesterday, 7:01 PM Babelfish Articles May 2013 - July 2013 15-7-13 Page 50
  • 51. Hi Steve - Terrible mobile checkout experiences have resulted in a self-fulfilling prophecy: the process is painful so customers only browse on mobile not buy. Since buyers only buy, it's not worth improving the purchase process. In an effort to combat customers' expectations of a painful mobile checkout process our clients state, "Try our new lightning fast mobile checkout." to let customers know that since LightningBuy was implemented, the user experience is much improved - in fact it's only a single click to buy. Really. 24. Follow this conversation Join this conversation There are 3 more replies. Late-Night Rivalry Heats Up, But 'Leno' Still Topsby Wayne Friedman(MediaDailyNews - June 21, 2013) 2 replies in last 24 hours; 2 replies total 25. Edmund Singleton from Winstion Communications commented on 4 hours ago Leno is still in the lead in the ratings and must be replaced immediately... 26. Douglas Ferguson from College of Charleston commented on Yesterday, 7:16 PM Letterman looks so tired. He's the Larry King of talk shows. 27. Follow this conversation Coming Soon: Intel's Must-See TV By TIERNAN RAY | MORE ARTICLES BY AUTHOR The chip giant readies a TV subscription service powered by a set-top box unlike any other. Full disclosure, dear readers—I'm not a TV viewer. I chucked the set years ago and mainly watch things on computers. But then, television hasn't changed much in decades, so I feel I'm still qualified to opine on the boob tube's future. And two weeks ago, I was fortunate enough to glimpse a possible part of that future at the Santa Clara, Calif., headquarters of Intel (ticker: INTC), where I saw a TV service that is novel, elegant, and highly desirable, even to a television Luddite like me. The service faces a number of hurdles, including potential obstruction by the cable and telephone industries, but what I witnessed could take Intel in a thrilling new direction. Sometime this year, the chip giant will offer a set-top box at retail, with a subscription service that brings you live television over your broadband Internet connection. It is, in industry argot, an "over the top" video connection, requiring no actual TV package from the four major "multiple system operators," or MSOs, as they're called—Comcast (CMCSA), Cablevision (CVC), Time Warner Cable (TWC), and Charter Communications (CHTR)—or from Verizon Communications (VZ) and AT&T(T). WITHOUT GIVING TOO MUCH AWAY, the user interface seemed to hover beautifully above the currently playing show. An elegant simple menu made it easy to switch between channels or to pick and rent a recent film. It was light years from the cumbersome garbage that takes up most of the screen when using a standard cable-channel picker. There was a wide array of popular channels to choose from that would be familiar to any couch potato, though the final lineup is still being formulated. Equally important, when you hit the button on the remote, the TV seemed to jump to the next channel faster than is typical on cable. There also is a time-shifting aspect that goes beyond DVR, allowing you to go back through recent episodes. One wonders: Why hasn't TV always been this way? Others who've viewed the project are enthusiastic, too. "The No. 1 thing I noticed was speed," says Patrick Moorhead of Moor Insights & Strategy. Intel's horsepower in the set-top is partially responsible for this, but multiple data centers that Intel is building to serve video also were a factor. "A lot of the value comes from what they've done on the back end," says Moorhead. "They have the highest-performance Intel servers and video-encoding technology." And he notes, "This is live television," unlike other over-the-top offerings, like those from the TV network consortium Hulu, Apple's (AAPL) AppleTV,Netflix (NFLX), or closely held Roku, which merely provide on-demand content from a back catalog. "It's something I've never experienced before" in an Internet offering, Moorhead adds. No less thrilling is the fact that Intel, which makes $53 billion in yearly revenue from selling chips, and spends billions to make them, is becoming both a hardware and software vendor. The project is the effort of Erik Huggers and his staff of 350 people. Huggers, 40, won praise for developing the iPlayer for the BBC, a piece of video software that allows one to follow the channel's TV and radio broadcasts. He came to Intel two years ago to advance efforts to sell chips to set-top makers. He made a bold move in telling his boss that the $4.5 billion TV-chip market wasn't desirable. "The market was split up between 20 or more silicon providers, and it was a race to the bottom on prices," says Huggers. "I said, 'I don't know how we ever turn that into a profitable market.' " Instead, he pleaded, "Release me to go after the $500 billion television market in a very different way." He got his wish. The Ultimate Trojan Horse: Game Boxes Take Entertainment's Center Stage Andrew Solmssen | June 20, 2013 If you care about the future of home entertainment, the week of June 10, 2013 was a busy one. We saw the latest salvos in the war for control of the living room (and beyond), and if you're a marketer, there's quite a lot to chew on when it comes to the future of home entertainment. Babelfish Articles May 2013 - July 2013 15-7-13 Page 51
  • 52. First, at the annual E3 gaming conference last Monday, Microsoft and Sony unveiled their new flagship products, the Xbox One and PlayStation 4 respectively, in Los Angeles. Then, 24 hours later, Comcast CEO Brian Roberts was at The Cable Show in D.C. to debut the cable giant's new X2 platform. These new products make for a transformative year and provide a roadmap for understanding the ongoing (and seemingly neverending) struggle between the cable and satellite industry and newer "over-the-top" (OTT) digital platforms as these new technologies move ever-further into the zone of broadcast and cable TV. To give full disclosure, I worked on the design of Comcast 's previous platform (X1) and my company does work with both Sony and Microsoft. So while I surely have bias, hopefully it's equal opportunity. In fact, having worked on a variety of digital content plays since the early 2000's, one of the most striking facts is how little the fight has changed. On the one side is the cable and satellite industry (I'm going to use "cable" as shorthand for legacy providers), which has been the dominant platform for a generation. Currently servicing nearly 85 percent of all U.S. households, the traditional platforms have the huge numbers but are considered yesterday's technology. It's been blood sport for over 10 years to declare these legacy providers "dead," despite data to the contrary. In fact, it's only been in the last two years when there's been an actual dip in the cable subscriber base - dropping from 87 percent of U.S. homes in 2010 to the current number of 85 percent (SNL Kagan). It's About the Hardware The reason cable has struggled with the reputation of your grandfather's technology is because the guides and menus look so damn terrible. It's not that cable operators don't have taste; they just haven't had the hardware that could handle interesting interactive features. Before the web became such a strong force in consumers' lives, before there were thousands of titles available at any time, before DVR and OnDemand - all those little set-top boxes needed to do was change channels. Unfortunately, once millions of them were out there at no small investment from the cable providers, they couldn't just be replaced with better hardware. Every time we worked on a project with a sophisticated, slick, feature-rich user interface and planned for no latency, we asked which box it was going to go on. Time and time again, big companies rolled out their master plan: build a TV experience that is so amazing that consumers will happily head to Best Buy and shell out $300 to $800 for a box that can run it. Guess what? That never, ever worked. Turns out that like cellphones, people would rather pay monthly than buy up front. TiVo and ReplayTV couldn't get consumers to do it (TiVo didn't get critical mass until it was bundled with DirecTV). OTTs haven't gotten masses to pay even for cheap boxes (Roku, Vudu). And when Apple itself can't get large numbers of people to buy Apple TV, you can spot a universal truth. Yet, two companies have been able to buck the trend. The Ultimate Trojan Horses There are two set-top boxes that consumers have rushed to purchase, and those are the set-top boxes that don't look like set-top boxes. Sony has sold over 70 million units of the current generation PS3. Microsoft has sold more than 76 million of the current-gen Xbox 360. Those numbers are staggering not just because they have driven a tremendous amount of revenue for the two companies, but because of the reach they have been able to achieve across U.S. households. The PS3 and Xbox 360 dwarf the processing and graphics power of any legacy set-top box out there. Consumers are already using them for entertainment; PS3 is the most popular Netflix device in the living room and both platforms sell and stream a huge amount of non-game content. Today's console game leaders have taught consumers that their platforms are for more than just button mashing - and they are about to get much, much better. Which brings us back to last week's announcements. Take a look at Comcast CEO Roberts' keynote. The interface is slick, it brings in IP-based content, it's intuitive, and any consumer would be happy to have it. One small problem: getting it to said consumers. Comcast's previous version of the TV guide and navigating software, X1, isn't rolled out yet. It's in a handful of markets and Comcast says it will be nationally available by year-end, but it's a familiar story; cable shows the future and they are serious about it, but I have a friend who designed products at a major legacy provider for six years before anything went live. When consumers aren't forking over money to upgrade, it's very hard to get hardware to your millions of customers. Microsoft and Sony are unlikely to face that challenge. Amazon has already been reporting "unprecedented demand" for Xbox One. The "launch edition" of the PS4 on Amazon is even crazier; it's sold out. And both platforms (particularly Xbox) are looking to focus even more on entertainment with voice-activated control and tablet and smartphone integration. We'll see how many people choose to use what we currently call their "game box" as their "entertainment hub," running subscription TV, physical movies such as DVD and Blu-ray, watching web video, buying and renting TV and movie content, and so on. For now, access to the many channels that cable homes are used to will go through the legacy provider before showing up on the Xbox One or PS4. But once that consumer behavior is established, will Microsoft or Sony pony up the cash to become the first "virtual MSO" and make their own distribution deals with the content providers? If so, we'll see the largest advertising platform in the world break free of restrictions and become a fully interactive advertising environment. The revolution will be televised, connected, multi-screen, and of course, gamified. Google Heightens Focus On Attribution Metrics For Marketers by Laurie Sullivan, Jun 20, 2013, Google made Full Credit Measurement Attribution generally available Thursday to Google Analytics users, along with a handful of measurement tools, giving marketers more access to metrics that measure campaigns. It's also an attempt to educate them. For example, On the Beach, a travel products and services company, wanted to understand the value of generic, non-branded search terms in the purchase funnel to drive up sales and grow business online. Marketers for the U.K. travel agency designed a model that credits campaign interactions by applying re-attributed CPAs into the budget. The move increased traffic from generics keywords, and grew market share to drive up ROI by 25%. Babelfish Articles May 2013 - July 2013 15-7-13 Page 52
  • 53. Perhaps it's a byproduct of an ongoing push for transparency, but there is a need by marketers to gain a deeper understanding of customer and engagement strategies. Attribution still remains one of the least used tools by marketers. Some say it's the cost; others point to complexity. Those who do use attribution admit the metrics drive better return on investments. Google continues to focus on bringing marketers new tools to make sense of the complete customer journey. Last week, Google launched a streamlined dashboard to manage Google Analytics administrative settings available through a new landing page that organizes the data into columns, corresponding to the most prominent objects in Analytics: accounts, properties and views, formerly known as profiles. In the coming weeks, creating a new account, property or view will require markets to click the specific menu in the column heading and to see the option that creates new objects. Google also published a Webinar, along with a series of links to posts, explaining digital attribution to help marketers calculate the impact of digital marketing channels. Bill Kee, product manager for attribution and multichannel measurement, talks about the process of getting attribution modeling set up. Kee explains the building blocks, how to determine the interaction or trigger for the actual conversion in the funnel, and whether adding code to the Web site slows page rendering speeds. Read more: http://www.mediapost.com/publications/article/202938/google-heightens-focus-on-attribution-metricsfor.html?edition=61434#ixzz2XAr5umKS The First Wave of gTLDs Are Coming - Are You Ready? Jennifer Wolfe | June 21, 2013 In this continuing series on the launch of the new generic top-level domains (gTLD) for brands, I've covered the many strategies that brands may use to evolve and strengthen the Internet consumer experience. While half of the world's biggest brands applied for a gTLD, many did not and the millions of mid-market and smaller businesses will need a strategy to respond. While most companies are still largely unaware of the coming paradigm shift of the Internet, the first wave of gTLDs are scheduled to begin launching this September. IDNs - Global Impact of the First Wave The internationalized domain names (IDNs) are slated by ICANN (Internet Corporation for Assigned Names & Numbers) to launch first. There were approximately 116 IDNs in languages including Japanese, Chinese, Arabic, Cyrillic, and others. If you are operating globally, it is important to review the list and the translations and transliterations and consider where you currently do business, where you may do business in the future, and whether your domain name will impact your ability to connect with consumers in those markets by having a domain name in their home IDN. Also, think about whether your competitors will likely secure important domain names within these new IDN gTLDs. Once you've evaluated these critical questions, you can gather relevant information around when these domains will become available, what policies will govern the sunrise and land rush periods, and how much they will cost. Second Wave - Generics Without Conflict ICANN has committed to launch up to 20 new gTLDs per week once each domain is eligible for delegation. Out of the 1930 applications, approximately 518 have passed initial evaluation, which means these initial applications will move into contracting, delegation, and launch over the next six months. The gTLDs that are not in conflict with another applicant (meaning there is no competition for the same string) have a clear path to launch. For marketers, this means you have six months to prepare for the generics to launch and potentially reshape the way consumers experience the Internet. Much like the IDNs, the analysis begins with key questions. Which gTLDs could impact how your targeted consumers use the Internet? Can you improve the consumer experience with a category-based top-level domain versus .com? Or, are you just concerned that another party may secure it and want to lock it down for future use? With hundreds of category-based generics ranging from .Moms, .kids, .families, .wine, .wedding, and .cooking to .pizza, .diamonds, .FYI, .cloud, and .wiki, there are a plethora of new categories that could impact how consumers think about your company. For example, should TripAdvisor secure tripadvisor.review? Or, should Century 21 Real Estate secure century21.realestate? At a minimum, you need to be informed about what's available, when it will be available, and how much it costs, to make strategic decisions. There are also geographic- and community-based gTLDs that will likely launch in the second wave that may be relevant to your business. Be sure to include these - particularly .NYC, .Vegas, and .Miami - in your review. Final Wave: Brands and Conflicted Generics The final wave of gTLDs to launch will likely be the brands and conflicted gTLDs. Brands are still developing strategies and will likely "slow roll" their launches due to typical budgeting, planning, and other internal issues. However, keep an eye on the big banks and financial sectors. They have the strongest value proposition for consumers and represent the biggest impact in terms of offering more security. They will likely be the first to offer the real advantage to consumers and start to reshape the way consumers think about .com with a promise of greater security through domains such as .jpmorgan, .americanexpress, .discover, .citi, etc. The conflicted strings, on the other hand, will need to resolve conflicts in order to move into the contracting and delegation process. Some of the top conflicted strings include .app, .home, .inc, .art, .book, .shop, .blog, .llc, .design, .cloud, .hotel, and .news. While some of these conflicts are in the process of being resolved, many may have to wait for the ICANN auction, which will not occur until October or later this year, pushing back the time frame for launch eligibility. The conflicted strings may be even more important to review because they were applied for by more than one company and often with many applicants, including digital powerhouses like Amazon and Google. Most of the gTLD applicants were driven by experienced companies in the domain name industry and likely reflect data analytics that support consumer usage of those top-level domains. Additionally, because these domains will require additional investment by the applicants at auction, they may have more of a vested interest to ensure their success. Watch the Digital Leaders: Google, Amazon, and Microsoft Babelfish Articles May 2013 - July 2013 15-7-13 Page 53
  • 54. You'll also want to keep an eye on the big digital leaders launching multiple new gTLDs. Google, Amazon, and Microsoft will likely be the drivers of the consumer experience in an expanded Internet environment. When will they launch? How might they package their services? Should you partner, affiliate, or obtain a domain in one of their gTLDs? For all of the gTLDs, it's critical to map your brand against the new brand gTLDs and categories of generic, geographic, and community-based gTLDs that will reshape the Internet. Make informed decisions about what gTLDs you may want to secure and know when they will become available and for how much. As you evaluate the new potential domain names, get your trademark house in order. Regardless of what you decide to do, in the future of the expanded global Internet, owning a properly registered trademark will become critical to protecting your brand. The first wave starts at the end of the summer. You won't want to be on vacation when important Internet real estate to your company is up for grabs. In my next column, I'll detail the strategic approach to evaluating the new gTLDs for your business. Nielsen Studies 'Multi-Sensory' Differences Between Young and Old by P.J. Bednarski, 30 minutes ago It‘s fairly commonplace at media conferences to hear a gray-haired executive extol his/her brand because it really grabs young viewers, and that means it‘s perfect for advertisers. I always wonder why those older executive don't throw in a mitigating word for their tattoo-less demographic. I guess I‘m too defensive that way. Now comes a new Nielsen study that suggests that many of the modern (―multi-sensory‖) media contrivances are ones older consumers can‘t easily handle, and this of course, has ramifications for online advertisers and programmers. Reaching younger consumers, it‘s kind of easy to leave older consumers behind. But that is ignoring what still is the biggest, richest slice of the demographic pie. A new Nielsen study, ―The Me Generation Meets Generation Me‖ trots out some of the same broad marketing facts that you probably know already about relative wealth. Boomers control 70% of the disposable income, but that Millennials are driving the technology, and by extension--my interpretation--all media. Three out of four Millennials own smartphones, about the same percentage as own lap tops, and 68% own gaming consoles. Nielsen points out in this device-acquisition contest, the Me Generation Boomers are catching up—hey, they have the money—and their adoption of tablets has doubled from 2011 to 2012. (And this year, they‘ll learn how to use them by golly!) But it‘s the part of the report that speaks broadly about what young and older people can handle—media-wise—that makes me wonder if Boomers are being left in the wilderness, encouraged to stay current but then faced with media presentation that makes ―keeping up‖ more than just a matter of determination, but a physiological challenge. The Nielsen study says, for example, ―Younger brains have high multi-sensory processing capacity—which makes them very amenable to (and almost seek) multi-sensory communications, especially with interaction—such as search tasks, interactive sites.‖ And in another section, ―Millennials can equally deal with the bleeding-over communication we see in most dynamic banner ads on Web portals, while older generations need a clear-framed separated communication to be able to engage.‖ The reason older consumers don‘t get it, is that, well, they‘re changing, and the media they‘re being asked to ingest doesn‘t compute very easily. ―Nielsen NeuroFocus research shows that neurological changes that come with age result in certain types of communication being more effective,‖ the report says. Body chemistry produces less dopamine and serotonin in older people—starting in the mid-40s— which makes advertisers need to change their pitch. Those changes as also seem to make it more important for older consumers to keep current. The aging brain, Nielsen points out, gradually ―loses the ability to suppress distraction.‖ In the very next sentence it says, ―However, the aging brain has a broader attention span and is open to more information.‖ All of that makes sense but it‘s complicated, and nuanced. In two other places, Nielsen makes some interesting observations. The Nielsen report says its research finds that Boomers ―prefer clever, light-hearted humor (rather than mean-spirited) and relatable characters,‖ while ―Millennials prefer off-beat, sarcastic and slapstick humor. Like Boomers, they respond to characters that are relatable to them.‖ And in terms of color, ―Millennials respond better to an intense color palette,‖ while with Boomers, in what might be unintended irony, ―Contrast is the preference vs colors in online ads.‖ That contrast thing seems to be true. pj@mediapost.com Read more: http://www.mediapost.com/publications/article/203063/nielsen-studies-multi-sensory-differencesbetwee.html?edition=61427#ixzz2Wshejhzx It's OK to be blamed for your co-worker's mistake by: By Sarah Michael From:news.com.au June 21, 2013 11:10AM WHEN Adrian was blamed for his co-worker's $50,000 mistake, he had two choices. He could tell his superiors that it was really the fault of the new guy, who made a careless trading error. Or he could take the fall. Adrian, a manager at a Melbourne-based finance firm, decided to cop it on the chin. Babelfish Articles May 2013 - July 2013 15-7-13 Page 54
  • 55. "Based on the fact that I'm the manager, I knew that my bosses wouldn't like it too much that this new person made the mistake, so I just took it," he said. "All said and done it was probably 20 per cent my blame and 80 per cent his mistake because it was such a rookie mistake he made and he'd had a few years' experience. But I did delegate the job to him so for me to take the full wrap was just easier." Adrian is not alone. Every working person gets blamed for other people's mistakes at some point in their career. Your first instinct is to tell your boss who was really at fault. But organisational psychologist Travis Kemp says if you take a step back you may realise you have a lot more to do with the problem than you want to admit to yourself. "It would be nice if mistakes were so black and white and there was an obvious reason why mistakes were made but there never is," Dr Kemp said. "The reality of most mistakes is that there are multiple factors and multiple people involved, it's rarely a single person's fault. When people feel like they've been exposed as incompetent or are being held solely responsible for something that's gone wrong, they tend to want to share it rather than own it all themselves." The reason you tell your boss a mistake is another person's fault is to save your own reputation. But telling on your colleagues often has the opposite effect. "A lot of people think they're taking the heat away from themselves. But as a leader I'm thinking regardless of the truth you're not taking responsibility for anything," Dr Kemp said. "As a leader I want my people to be taking responsibility and taking action. I'm going to look much more favourably on people who can say this has gone wrong, this is how I contributed to it and this is how I can solve it." Organisational psychologist Peter Langford says that there are times when the mistake is so bad you have to speak up to protect your reputation. "If the error is significant enough you're going have to. It's walking the fine line of not coming across like you're blaming people but making it clear it wasn't your fault," Dr Langford said. You also have to pick your battles. And if you let little things slide, you will win respect from other colleagues who know you don't expose people's mistakes. "There is some benefit from copping some of it on the chin when some people know it wasn't your fault. That will come across as quite a noble act that you've absorbed some of the responsibility when really it wasn't your fault." Read more: http://www.news.com.au/business/worklife/it8217s-ok-to-be-blamed-for-your-coworker8217s-mistake/story-e6frfm9r1226667438995#ixzz2WpFyOkWdInternet chega a 80,9 mi de brasileiros O acesso à web atingiu 49% da população brasileira; uso de dispositivos móveis é tendência Rodrigo Manzano| 20 de Junho de 2013 O número de usuários de internet no País alcançou, em 2012, 80,9 milhões de brasileiros, o que equivale a 49% da população nacional, revela a Pesquisa TIC Domicílios, divulgada nesta quinta-feira, 20. O número é dois pontos percentuais maior do que o registrado na pesquisa anterior e aumentou 12 pontos desde 2008. O total de domicílios com acesso à internet chega a 24,3 milhões, ou 40% do total. A penetração da web nos domicílios continua sendo proporcional à renda: quanto mais elevada a classe socioeconômica, maior o acesso. A classe A tem penetração de 97%; a classe B, 78%; a C, 36% e a DE, 6%. No entanto, a classe C foi a que mais aderiu à rede: nos últimos cinco anos, a penetração nesse grupo socioeconômico saltou de 16% para 36%. Outro dado apontado pela TIC Domicílios é o crescimento do número de brasileiros conectados na região nordeste do País. Hoje estimado em 27% dos domicílios, o acesso representa o maior crescimento entre todas as regiões geográficas do Brasil, tendo saltado de 7%, em 2008, para mais de um quarto do total de domicílios. A região com maior penetração da web é a sudeste (48%), seguida da sul (47%), centro-oeste (39%), nordeste (27%) e norte (21%). Mobile Entre os usuários de telefone celular, cresce o uso de internet. Segundo a pesquisa, 24% do total de proprietários de aparelhos móveis utilizaram a web nos dispositivos nos últimos três meses. Em 2011, esse número era de 18%. Em 2010, 5%. Outras atividades realizadas nos telefones celulares são efetuar e receber chamadas telefônicas (99%), enviar mensagens de texto (64%), ouvir músicas (47%), jogar (29%). A faixa etária com o maior número de usuários de internet móvel é a de 16 a 24 anos (44%), seguida pela de 10 a 15 anos (33%). O acesso também é maior nas classes socioeconômicas mais elevadas (A, 59%; B, 35%; C, 22% e DE, 9%). Redes sociais O número de usuários de internet que acessaram redes sociais no Brasil hoje é maior do que o daqueles que enviaram e-mail, aponta a pesquisa. Do total de brasileiros conectados, 73% utilizaram redes sociais como Facebook e Orkut, contra 70% que enviaram ou receberam e-mails nos últimos meses. O número de usuários do Twitter entre os conectados é de 16%. O acesso ao Facebook e Orkut é bastante equilibrado em termos de classe socioeconômica (A, 78%; B, 73%; C, 72% e DE, 69%) e de acordo com o grau de instrução (analfabeto, 50%; fundamental, 69%; ensino médio, 74% e superior, 75%). A faixa etária com o maior número de usuários de redes sociais é a que compreende os jovens de 16 a 24 anos, com 86% de pesquisados que afirmam utilizá-las, seguida da de 25 a 34 anos, com 75% e 10 a 15 anos, com 73%. Babelfish Articles May 2013 - July 2013 15-7-13 Page 55
  • 56. Leia Mais: http://www.meioemensagem.com.br/home/midia/noticias/2013/06/20/Internet-chega-a-809-mi-debrasileiros.html?utm_source=newsletter&utm_medium=email&utm_campaign=mmbymailgeral&utm_content=Internet+chega+a+80,9+mi+de+brasileiros#ixzz2WodUviN9 No Brasil, 40% das residências têm acesso à internet, aponta pesquisa 20/06/2013 às 13h14 SÃO PAULO- Os acessos à internet nas residências cresceram no ano passado, chegando a 40% dos domicílios, ante 36% em 2011. O maior incremento foi observado na região Nordeste. Do total de domicílios, 27% tinham acesso à rede mundial de computadores em 2012, um avanço de 6 pontos percentuais em relação ao registrado no ano anterior. A região Sudeste permaneceu com a proporção mais alta de acessos (48%), seguida pelas regiões Sul (47%), Centro-Oeste (39%), Nordeste (27%) e Norte (21%). Os dados fazem parte do estudo ―TIC Domicílios 2012‖, realizado pelo Centro de Estudos sobre as Tecnologias da Informação e da Comunicação (CETIC.br), órgão ligado ao Núcleo de Informação e Coordenação do Ponto BR (NIC.br). De acordo com a pesquisa, feita em aproximadamente 17 mil domicílios em todo o país, 74% dos internautas acessaram a web de casa, sendo esse o local preferido para se conectar. O acesso em lanhouses teve uma queda de 8 pontos percentuais em 2012, chegando a 19%. As lanhouses são o local de acesso mais citado por internautas das classes D e E. A pesquisa também apontou um aumento significativo na frequência diária de acesso à internet. Do total de internautas, 69% acessam a web diariamente. Em 2008, esse percentual era de 53%. O uso da internet em casa é mais comum em áreas urbanas. De acordo com o estudo, 54% da população urbana tem acesso à web em casa. Nas zonas rurais, 18% da população tem acesso à internet nos domicílios. O percentual de famílias nas zonais rurais desconectadas mantém-se inalterado desde 2008. O estudo também pesquisou domicílios sem acesso à web e identificou que 77% desse público reside nas zonas rurais. ―Essa é uma questão que precisa ser tratada por políticas públicas. O setor privado sozinho não consegue atender a esse público‖, disse Alexandre Barbosa, gerente do Centro de Estudos sobre as Tecnologias da Informação e da Comunicação (CETIC.br). Ele observou que o setor privado tem investido mais em cidades com maior concentração populacional. Algumas regiões do Nordeste e do Norte, com menos densidade populacional e de mais difícil acesso geográfico são as que mais sofrem com a falta de acesso à web. ―O acesso ainda é difícil e muito caro em algumas regiões do Nordeste e Norte‖, disse. © 2000 – 2012. Todos os direitos reservados ao Valor Econômico S.A. . Verifique nossos Termos de Uso em http://www.valor.com.br/termos-de-uso. Este material não pode ser publicado, reescrito, redistribuído ou transmitido por broadcast sem autorização do Valor Econômico. Leia mais em: http://www.valor.com.br/empresas/3168852/no-brasil-40-das-residencias-tem-acesso-internet-aponta-pesquisa#ixzz2WoXFUFsz Why Mobile Advertising Has Quadrupled in Brazil BY SERGIO KLIGIN@US MEDIA CONSULTING ON JUNE 19, 2013 IN ADVERTISING,BRAZIL, MOBILE The demand for mobile advertising has spiked enormously in Brazil. Recently, Opera Mediaworks released the results of a study that tracks requests for mobile advertising in the Brazilian market. Opera receives these requests because it operates a mobile ad platform that serves more than 60 billion impressions a month. As such, between January and April 2013, Opera received 3.72 times more orders for mobile ads in Brazil than it did between January and April 2012. In addition, the company observed an average increase of 11% per month in mobile ad orders during the past year. So what‘s driving this massive spike? More Devices As we‘ve discussed before, there has been a huge increase in mobile device adoption in Brazil: Frost & Sullivan predicts 21 million smartphones will be sold in Brazil in 2013, compared to just 9 million in 2011. Brazilians will buy 5 million tablets in 2013, compared to 800,000 in 2011. In fact, during the first 3 months of 2013, Brazilians bought 5.4 million smartphones, 86% more than they did during the first quarter of 2012. More Time Of course, deeper smartphone and tablet penetration is only the beginning. The spike in mobile ads targeting Brazil is also due to marketers realizing how much Brazilians use these devices. For example, a recent study from IBOPE showed thatBrazilians spend 84 minutes a day using their smartphones, just 10 minutes under the global average. When it comes to tablets, Brazilians spend an average of 79 minutes a day using their tablets—above the world average of 71 minutes a day. More Uses Another study from IBOPE showed that nearly 79% of Brazilian smartphone owners use their devices to go on social media, 76% use them for email, 58% to read news, 47% to listen to music and 43% for entertainment. As such, it‘s not a surprise that Opera reports that the advertiser categories with the highest volume of mobile ad orders in the past year (44%) have been for music, video and content. Babelfish Articles May 2013 - July 2013 15-7-13 Page 56
  • 57. Another extremely important use of mobile devices by Brazilians is shopping, and it‘s projected that we will see a 657% increase in shopping with mobile devices this year. This trend is likely to be yet another reason for the massive growth observed by Opera. The Content that Brazilians Share the Most on Social Media BY SHEILA VICENTE@USMEDIACONSULTING.COM ON JUNE 19, 2013 INADVERTISING, BRAZIL, SOCIAL MEDIA When creating a digital marketing plan for Brazil that incorporates social media, it clearly makes sense to favor major sites like Facebook and LinkedIn,along with hot new sites like Ask.fm. However, it‘s also helpful to consider the websites whose content are shared the most on social networks. Knowing this can help you maximize the reach of your ads. Recently, research firm E.Life released a study on how Braziliansuse social media. Part of the data involved the websites whose content Brazilians share the most on social media. News More than half (52%) of Brazilians share O Globo‘s content on social media, while Folha de São Paulo is in second place with 14%. Other news sites in the country garner considerably less shares by Brazilian social media users, including Exame (7.3%), Veja (7%), R7 Noticias (4.7%), UOL Noticias (3.5%), Terra Noticias (3.5%), Vírgula (2.5%), Extra (2.5%) and Estadãö (2.5%). Videos Brazilians are among the world‘s most avid watchers of online videos, and the E.Life study shows that 90% of the videos they share are from YouTube. Only 4% share videos from Vimeo and 1.5% share videos from Dailymotion. Photos Six out of ten Brazilian social media users share photos through Instagram, while 26% share photos via Twitpic and 12% do so with Flickr. Other Key Data Points about Brazilian Social Media Users Beyond discussing the media content most shared by Brazilians, E.life‘s study also highlighted certain aspects about social media users in the country, including: • More than half (53.9%) report that they use mobile phones as their #2 way of accessing the Internet (a home computer is still the #1 way of going online) • Desktops are still the primary device that Brazilians use to access the Internet(74% use them), but the other two major devices they use for going online are notebooks (65.7%) and mobile phones (61.8%) • 54% of Brazilians report going online at least 30 hours per week and nearly 35% go online more than 40 hours per week • While a small percentage of Brazilians report using tablets to go online, 46% oftablet users in Brazil spend at least 20 hours a week on the Internet with their devices • Facebook is still the #1 site among 81% of the Brazilians surveyed by E.Life, while Google+ grew by 10 percentage points in popularity in Brazil since the 2012 E.Life survey and LinkedIn gained 21 percentage points • Instagram seems to be one of the hot new sites in Brazil: 22% of survey respondents report registering on the site at least 3 months before the survey • A third of survey respondents reported becoming recent users of Pinterest • 71% of Brazilians watch TV while on the Internet and 50% listen to the radio while on the Internet • Nearly 67% of Brazilians report that they follow brands on social media to get online customer service whenever they need it • 93% of Brazilians like company pages on Facebook and nearly half (48.5%) like companies more after following them on Facebook 'I'm Not A Businessman, I'm A Business, Man' By Cory Treffiletti Wednesday, June 19, 2013 What would you do with three minutes of prime airtime during the NBA Finals? If you‘re Jay-Z and Samsung, you take that time to announce a new album released in a whole new way. I saw the long-form commercial that Samsung aired to announce Jay-Z‘s new album, ―Magna Carta Holy Grail,‖ which should be out in a month and apparently comes as an app rather than, or in addition to, a traditional record release. The spot shows Jay, Timbaland, Swizz Beatz, Pharrel and Rick Rubin sitting around making beats and talking about the theme of the record. I have to confess that I‘ve been and will continue to be a big Jay-Z fan, so whenever he does anything my ears and eyes perk up, but this was a new level of hype that‘s unlike anything I‘ve seen to date. It‘s more proof that Jay Z is "more than a businessman -- [he's] a business, man.‖ Other artists have released the ―album as app‖ model, but none of them have really caught hold. I would argue that no one of this stature has done it to date -- and with the exception of the rumored Lady Gaga app/album that‘s supposed to come out sometime this year, there‘s no one else who could truly pull this off on a massive scale. Beyond that, though, offering the album free to the first one million Samsung Galaxy owners is a stroke of brilliance for Samsung, which immediately takes on the ―street cred‖ of JayZ and adds flavor to its marketing that can certainly help it immediately rival the ―it‖ factor of Apple. Apple and Samsung are in a technology war, and this campaign is helping to even the playing field. Babelfish Articles May 2013 - July 2013 15-7-13 Page 57
  • 58. I also love to look at this move in terms of the record industry: the business behind the business of music. For years the record business has been damaged by digital media, flailing to find a business model that will survive. If, as implied in the spot, Jay releases this album without a physical version or through traditional record stores, then this is on par with the Radiohead move of price-your-own copy from ―In Rainbows‖ and could signal a watershed moment for the record business. We‘re at a stage where Bluetooth is everywhere and widely used, so all your music no longer has to be played through iTunes or any other music playing app. Your phone as a pure device could become the hub, and for many it certainly has. When I drive in my car, I routinely throw the Bluetooth to my phone and listen to comedy shows from YouTube just as easily as music through Spotify or iTunes. The phone is simply a device for accessing content, and Bluetooth makes that content -- in most cases audio content, but just as easily video -- accessible everywhere. Having artists sell apps as albums with multimedia elements feels like a legitimate opportunity now, much more so than five years ago. The surprise in this announcement for me is that this campaign comes from Samsung and not Apple. The latter has done a lot to provide a viable model to the record business with iTunes, but it has lagged on the concept of rich experiences for artists. If this effort is a success, it could signal another opportunity for the phone manufacturers themselves to become interesting partners for the distribution of content. This could be a whole new paradigm for the music industry. Samsung went big with this announcement, and my gut says everyone wins. The fans get great music. Samsung gets an amazing boost of cred. Jay-Z gets a ton of buzz for an album NOT named ―Blueprint‖ something or other. The record industry gets an entire new avenue for releasing albums. On all sides of the discussion, this is a positive move. What do you think? In a Shift, Facebook Says It Will Make All Ads Social BY RYAN TATE 06.07.13 Facebook may have sold $5 billion in advertising last year, but that doesn‘t mean the social network had its ad strategy firmly under control: the company has announced a sweeping overhaul that will cut its number of ad units in half and put less pressure on advertisers to give their ads social features. Advertisers have been complaining for the past year – the $5 billion one — about Facebook‘s unwieldy collection of advertising products, Facebook product manager Fidji Simo said in a blog post. As a result, Facebook will pull many ad options it had previously touted, like allowing owners of Facebook pages to embed native coupons, or ―Offers‖ in Facebook parlance. The number of ad units will fall from 27 to less than half of that. Facebook had also previously required advertisers to choose between inserting ads in users‘ news feeds strictly by paying Facebook or by paying Facebook and generating social context, such as a ―Like‖ from a friend. If advertisers opted for the social option, their ad would show up as a ―Sponsored Story,‖ so that when friends ―Liked‖ and commented on the ad, those ―Likes‖ and comments would stick around for a long time in other people‘s News Feeds. Now, Facebook will bundle both options together, so that every ad is automatically retrofitted with a social component. Each ad, in other words, will be both a regular ad and a ―Sponsored Story.‖ ―We know social enhances ad resonance; people are influenced by this type of word-of-mouth marketing,‖ Simo wrote. As Peter Kafka at All Things D notes, this new approach de-emphasizes the uniquely social aspect of Facebook marketing by treating social as an automatic enhancement to any ad. Of course, Facebook‘s advertising has been performing well enough in raw dollar terms that the company may not have to worry about encouraging advertisers to design their ads especially for social sharing. Facebook is so big at this point that many advertisers will do that on their own. This post has been modified from the original, which misstated the number of ad units Facebook offered. June 7 1:15pm ET Brazil drives LatAm adspend growth NEW YORK: Total adspend in Latin America is expected to increase 7.5% in 2013, with Brazil leading the way as it gears up for the World Cup in 2014, new figures have shown. Estimates from eMarketer, the insights provider, forecast a 9% rise in Brazilian advertising expenditure to $20.2bn this year, when it will account for 54.6% of the $37bn total for the region. And Brazil will continue to be the main driver of growth for the continent up to 2017, when its share of total advertising expenditure will reach 56.8%. Mexico is also predicted to post above average growth this year, with an 8.4% rise taking it to a value of $4.6bn, accounting for 12.4% of the spending in the region. Argentina, however, is expected to record a 6.7% drop in advertising spend, as the industry struggles with inflation and exchange rate fluctuations. But eMarketer anticipated that advertising activity in those countries outside the top three would more than offset Argentina's losses, with an 11.1% rise taking the share of ad spending by these other countries to 22.6% this year, up from 21.8% in 2012. Digital ad spending in the region is also growing fast, up 21.5% in 2013 to a total of $4.1bn, a figure which is predicted to double to $8.3bn by 2017. Once again, Brazil dominates this channel, its total of £2.5bn in 2013 accounting for 60.1% of all digital adspend in the region. Babelfish Articles May 2013 - July 2013 15-7-13 Page 58
  • 59. But Mexico is the fastest-growing country in terms of digital spending, up 32.1% in 2013, and its share of the total is forecast to grow from 16% this year to 18.5% by 2017. Argentina's growth is expected to be considerably slower, with only single digit increases predicted over the next four years. Data sourced from eMarketer; additional content by Warc staff, 20 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31556&Origin=WARCNewsEmail&utm_source=WarcNews&utm_me dium=email&utm_campaign=WarcNews20130620#ugOwSE3eJjF7F3H7.99 Mídias tornaram-se técnicos, estrategistas e criativos Profissionais da área atuam em diversas frentes das agências Mídias evoluíram e passaram a ser profissionais multifacetados ―Se a mídia era uma área essencialmente técnica e especialista, hoje pede profissionais conectados com os expertises das turmas de planejamento e criação: mais do que trabalhar com técnica e criatividade estratégica os investimentos, a mídia tem que contribuir com o fortalecimento do posicionamento das marcas que maneja, com a originalidade e o frescor dos espaços que essas ocupam.‖ A declaração, de Paulo Camossa, diretor-geral de mídia da AlmapBBDO, expressa bem o papel do profissional de mídia atual, e que irá cada vez mais se intensificar à medida que os meios se multiplicam e a tecnologia avança. Ele deixou de ser ―um leitor de pesquisas‖ para se tornar, inclusive, um criativo. Sim, alguns dos grandes cases da publicidade mundial, hoje, partem da mídia. ―A sociedade mudou, os meios de comunicação se multiplicaram e as audiências se fragmentaram. As plataformas digitais estão revitalizando conceitos clássicos e criando outros absolutamente novos – tudo pode ser revisto, controlado, redirecionado. Nesse sentido, um profissional de mídia tem que combinar conhecimento técnico com capacidade de observação, e estar disposto a contribuir com ideias e iniciativas capazes de enriquecer os planos de comunicação‖, completa Camossa. Diretor de mídia da Africa, Paulo Ilha lembra que no passado o mídia era bom em negociação, planejamento e pesquisa de mídia, que já o colocava entre os principais do mercado. ―Hoje, para se destacar, é ir bem além disso. O profissional deve ser autor ou coautor de projetos criativos. Mais do que ninguém dentro da agência é responsável por administrar o investimento do anunciante, cada vez mais preocupado com métricas e resultados, pois isto que o cliente quer: inovações atreladas aos resultados‖, comenta. Estratégico Lica Bueno, diretora nacional de mídia da F/Nazca S&S, diz que o mídia é um cara mais estratégico. ―E a pulverização de sua atividade é um prato cheio de referências para o planejamento e fornece subsídios para a criação‖, afirma, lembrando que os meios digitais e as redes sociais estão permitindo testar formatos novos, principalmente em relação ao mobile, a ―grande dúvida‖ da comunicação atual. ―Estamos sempre testando com nossos clientes. O mídia tem que ter é curiosidade‖, ressalta. ―Nos anos 80, o mídia tinha que ser um excelente negociador, até pelas instabilidades econômicas do país na época. No início da década de 90, também ficou mais técnico. No final do século, veio a necessidade de ser criativo. E hoje somos mais estretégicos. E todas essas responsabilidades se acumularam‖, acredita Gustavo Gaion, VP de mídia da Y&R, que diz ser o grande desafio do mídia identificar esses conteúdos e criar vínculos sólidos das marcas com seus consumidores, antes até de pensar em qual ponto de contato. ―Estamos no momento de entender como inserir a comunicação dentro desse perfil de comportamento do consumidor, que compartilha informações com todos, sem ser invasivo.‖ Comportamento Luiz Ritton, VP de mídia da Lew‘LaraTBWA, também aborda o comportamento do consumidor, dizendo que entendê-lo continuará a ser o papel do mídia para os próximos anos. ―E é esse comportamento que indica tendências de onde colocar as marcas dos clientes dele. Temos que entender as pessoas e para que caminhos estão indo. Por exemplo, o que elas buscam quando estão em um show‖, diz. ―Mas nunca vamos deixar o lado técnico. A diferença é que a mensuração de resultados é outra: como irei avaliar o cara que viu a novela pelo smartphone, e não pela TV? O que ele quer?‖ ―Não há como estar apenas em um tipo de meio. Assim, não há como pensarmos em uma campanha sem termos todos os meios – sejam eles offline ou online‖, afirma Flavio Rezende, diretor nacional de mídia da DPZ. ―Os cases de hoje obrigatoriamente são complementares – um meio avança na área do outro. É muito difícil vermos um case vencedor em um meio apenas, pois eles se complementam e são encaminhados direto para as redes sociais‖, completa, lembrando que opapel do mídia é transportar para todos os envolvidos o pleno conhecimento do consumidor e que tipo de afinidade ele tem com os múltiplos pontos de contato, inclusive o que ele consome ao mesmo tempo. ―Além de contribuir na grande ideia, na estratégia de comunicação, temos o conhecimento da cadeia de reverberação e do consumidor‖, acrescenta. Diretora-geral de mídia da JWT, Aline Moda diz que conhecer qual tipo de conteúdo é mais consumido pelo target ganhou tanta ou mais relevância do que saber qual meio ele consome. ―Pois, hoje, um mesmo conteúdo pode ser encontrado em diversas plataformas, o que faz com que tenhamos que partir da afinidade com o conteúdo para chegar à recomendação de canais. Ou seja: um profundo conhecimento sobre os hábitos do consumidor continua sendo a nossa ferramenta mais eficaz.‖ Também falando sobre o comportamento do consumidor, Renata Giovannetti, diretora de mídia da Talent, diz que o papel do mídia de hoje vai além. ―Temos que ter uma dedicação extrema e constante também sobre os meios de comunicação. A grande mudança é a busca constante pelo imediatismo de informação. O que temos que fazer é pensar em um sistema orgânico de comunicação, facilitar as buscas do consumidor e suprir a necessidade deles.‖ Criatividade e inovação Técnico, criativo e inovador. É assim que tem que ser o profissional de mídia de hoje, na visão de Rosana Ribeiro, diretora de mídia da Borghi/Lowe. ―E tem que apresentar um pensamento multiplataforma, que ultrapasse a linha imaginária entre o ATL e o Babelfish Articles May 2013 - July 2013 15-7-13 Page 59
  • 60. BTL, o on e o offline‖, diz. ―E está cada vez mais difícil prender a atenção do consumidor, pelo número de canais aos quais ele é exposto. As redes sociais potencializam isto. Pesquisas mostram que 76% dos internautas fazem comentários na internet ou por celular sobre o programa que estão assistindo na TV‖, completa. Diretora-geral de mídia da Loducca, Adriana Favaro enumera três caraterísticas fundamentais para o mídia: ser consumidor de todas as mídias; ser estrategista, para definir o caminho de maior eficácia e eficiência para uma marca; e ser crativo. ―Para isso é imprescindível entender como funciona a tecnologia e como se cria para cada um dos canais de comunicação com o consumidor.‖ Diante de todas essas características citadas, Mônica de Carvalho, VP de business da DM9DDB, prefere destacar a qualidade do profissional de mídia brasileiro: ―Ele é muito bom!‖, ressalta, e credita isso à formação. ―As agências sabem fazer a sucessão. O próprio Grupo de Mídia se preocupa em formar o mídia, por meio de cursos e outras atividades.‖ Para a executiva, além de estratégicos e bons negociadores, eles são inquietos, inconformados. ―Nossos mídias são muito criativos e agregam bastante para o planejamento estratégico, e, claro, para a criação. Enxergar diferente é nosso diferencial.‖ VivaKi Struggles For Reinvention in Digitally Savvy Publicis Network Specialty Unit's Reason for Being Was to Educate Its Media Shops, But That's No Longer Necessary By: Michael Learmonth Published: June 17, 2013 The brass at Publicis Groupe's VivaKi are logging an excessive number of miles in the first half of 2013, even for ad-agency execs. The reason: to prove to colleagues around the globe that their unit still has value even after achieving its original goal of pushing Publicis into the digital age. Five years after the operating unit with the headscratcher name was formed, VivaKi faces an identity crisis. What is the role of a specialty unit created to inject digital into traditional agencies when digital savvy has trickled down into nearly every shop? VivaKi CEO Frank Voris and Chief Strategy Officer Rishad Tobaccowala are in the midst of a road show to explain just that, hitting two Publicis agencies a week and making quarterly trips to India and China. Their pitch is that there's still a big knowledge gap in advertising that needs to be filled, and the new VivaKi can help solve client problems and boost business -- whether its media, creative, PR or research. ―A lot of people are talking about disrupting stuff; we have disrupted ourselves. We have changed our model,‖ Mr. Tobaccowala said. VivaKi's journey started in January, shortly after Publicis announced that the media-firm heads reporting through VivaKi -- SMG CEO Laura Desmond, Razorfish CEO Bob Lord and ZenithOptimedia CEO Steve King -- would report directly to Publicis CEO Maurice Levy. VivaKi was stripped of its operating role and refashioned into more of an internal consultancy, still managing global digital partnerships and automated ad buying, and offering its services to Publicis' creative shops like Saatchi & Saatchi, Leo Burnett and Bartle Bogle Hegarty. VivaKi identified four areas of focus: data-driven marketing, next-generation commerce (―commerce plus,‖ according to VivaKi brass, who apparently love to name things), next-generation storytelling and a regional focus on China, India and the Americas. For Publicis' creative agencies and PR firms, VivaKi might offer some media-buying capability, particularly through its Audience on Demand technology or data to power dynamic creative, where the message adapts to the viewer. VivaKi will also vet startups, consolidating the due-diligence agencies might do in that space, and manage startup investments, as well as Publicis-wide relationships with Google, Facebook, Yahoo, Microsoft and other platform players. The approach will be ―here's tech that you can use and we will help facilitate the connection,‖ said Kurt Unkel, president of product and head of Audience on Demand. That pitch is being well-received. ―We don't need every creative agency to reinvent the wheel with some of these partners,‖ said Leo Burnett Chief Innovation Officer Mark Renshaw, who got the visit from Messrs Voris and Tobaccowala. ―Anybody who turns away a source of competitive advantage or a way to lower your cost of doing business is kind of crazy.‖ When VivaKi was formed in 2008, the global economy was on the verge of collapse, but new technologies that automated the buying and selling of digital ads were starting to emerge. That was the year Google acquired DoubleClick. Facebook and YouTube were ascendant powers. Publicis wasn't keeping up with that rapidly transforming world. Prior to the acquisition ofDigitas in 2007, digital made up just 8% of Publicis' revenue. VivaKi was formed to infuse the company's old-line media firms -- Starcom, Mediavest, Zenith, Optimedia and Denuo -- with digital know-how and allow its newly acquired ―digital‖ agency, Digitas, to benefit from the media-buying power of those agencies. Today, many of those digital-buying skills are now distributed throughout the agency, and digital accounts for nearly 33% of revenue at Publicis following the acquisition of Digitas and Razorfish. That's roughly equivalent to rival WPP, meaning VivaKi's original goal is largely met, leaving it to sing for its supper. The criticism since day one of VivaKi and similar groups at rival holding companies is that they force one-size-fits-all tech solutions down the throats of the various agencies to save costs. Agencies have started to resist. ―When push comes to shove, the battle is always going to be won by those that are closer to the budgets and closer to the clients,‖ said Tim Hanlon, former exec VP of VivaKi Ventures, who now runs his own consultancy, Vertere Group. Even the old-line agencies are getting more adept at managing digital, making it harder for VivaKi to stay a step ahead. One example is Ms. Desmond's giant Starcom MediaVest, whose clients includeCoca-Cola and Procter & Gamble, signing a multiyear agreement with Twitter in April that includes hundreds of millions of dollars in ads bought in advance, as well as the ability to provide input into the startup's products. Babelfish Articles May 2013 - July 2013 15-7-13 Page 60
  • 61. In years past, that might have been a VivaKi deal, much like the partnerships it struck with Google and Microsoft. That said, most individual agencies are focused more on specific client problems, not forging global platform deals or watching where the world is headed next. ―We are challenged to provide world-class solutions to the agency,‖ said Mr. Voris. ―At the same time, we have a group focused on the future and looking at new technology so we don't lose sight of where the spaceship is traveling.‖ Loducca usa tecnologia para otimizar ROI 17 de junho de 2013 • Atualizado às 09h15 Aagência de publicidade Loducca e a empresa de soluções de Marketing Mix Optimization Libring, baseada em Boston - EUA, acaba de lançar no Brasil a plataforma MMO Compass, que permite criar cenários e simular a melhor distribuição da verba de mídia nos diferentes canais, off-line e online, levando em conta a interação entre todas as mídias. A plataforma usa algoritmos inovadores de atribuição, otimização e alocação que permitem (1) quantificar a contribuição de cada peça publicitária,(2) otimizar o retorno a partir do uso de modelos de análise preditiva para criar cenários, e (3) alocar ou distribuir a verba nas atividades de mídia de acordo com os cenários otimizados. A partir do cruzamento da base de dados de audiência, de vendas e do investimento em publicidade nos vários pontos de contato com o consumidor, a solução identifica as taxas de resposta a um elemento ou inserção em cada uma das mídias utilizadas. ―Essa iniciativa é o mais recente capítulo de uma longa história de análise de ROI que a Loducca tem," diz Daniel Chalfon, sócio e vice-presidente de Mídia da Loducca. "Até agora trabalhávamos no que chamamos de versão 2.0 da metodologia desenvolvida pela nossa equipe. A parceria com a Libring amplia muito as possibilidades de análise, visualização e otimização‖. ―Com a MMO Compass, oferecemos a nossos clientes uma melhor compreensão da interação entre as mídias e ajudamos a planejaro investimento com a verba certa nos pontos de contato que influenciam a tomada de decisão do consumidor‖, diz o engenheiro Marcelo Ballestiero, CEO da Libring. Uma solução interativa -Como uma bússola, o MMO Compass tem uma interface amigável, que permite que dados complexos sejam facilmente compreendidos, agilizando o processo de decisão e facilitando o planejamento. Um mapa digital dá uma visão geral do investimento histórico de mídia de uma empresa e serve como a base principal de navegação dentro do sistema. O mapa mostra a distribuição de publicidade em cada mídia, o correspondente investimento em marketing, a resposta atribuída a cada campanha e por fim o ROI por país, cidadeou região. Essa divisão torna mais fácil a visualização dos mercados mais importantes para a empresa. Ao clicar em um determinado local no mapa, o usuário visualiza um detalhamento completo do investimento para cada tipo de mídia, digital ou tradicional e em qualquer meio. O painel identifica o investimento por mídia,a atribuição de vendas, e até mesmo o retorno proporcionado. Para cada canal de mídia, essas estatísticas podem ser divididas ainda mais para mostrar os mesmos valores para veículos ou programas. A função mais importante do sistemaé a da otimização, que utiliza dados passados para prever como um determinado mercado irá responder aos investimentos de mídia no futuro, e, portanto, orienta a desenhar a melhor estratégia de alocação da verba de mídia da empresa. ―Este é um diferencial importante, pois fundimos dados de pesquisa de mídia dos principais institutos do país, com os dados específicos de cada cliente tornando o banco de dados de cada marca único e proprietário‖, explica Chalfon. Segundo Ballestiero, a missão da Libring é tornar a vida dos clientes mais fácil e garantir que eles possam usar e tirar proveito dos dados: ―Se por um lado, a era digital permitiu o acesso rápido e irrestrito a um oceano de dados, por outro, extrair informações valiosas para alcançar os objetivos de negócio passou a ser uma tarefa necessária e bastante complexa. Queremos ajudar o cliente a navegar no mercado orientado por uma bússola que permita maximizar o investimento em marketing‖ afirma. Redação Adnews Pay Attention To This New Audience Segment, If You Have Any by Joe Mandese, Monday, Jun 17, 2013 If you‘re like me, then you believe that one of the unintended consequences of the hyper-acceleration of real-time media are some corresponding attention disorders, including ADHD. Now, according to at least one popular media research source, it is now a media planning attribute. Or at the very least, a new form of audience segmentation being used by TV programmers and advertisers to target social TV users. Speaking during Maxxcom‘s first global media collaborative in New York last week, Trendrr Co-Founder and CEO Mark Ghuneim, said the company now breaks social TV users down into segments known ad ―Hyperactives‖ and ―Massive Passives.‖ The Hyperactives, as you might imagine, are the ones who are always on, following the conversation about their favorite shows, personalities and programmers ―minute-by-minute.‖ ―The water cooler effect is happening in real-time,‖ he asserted, noting that while the Massive Passives aren‘t nearly so glued to their social media screens as their TV screens, they also follow TV pretty closely on the second screen. The Maxxcom meeting was noteworthy for other real-time and programmatic targeting reasons, especially a presentation by Justin Evans, executive vice president-product strategy at Collective, ―the audience engine‖ company that has come up with an ingenious way of using online media to effectively re-target TV viewers. The ―targets people online based on what they watch on TV,‖ Evans said. Babelfish Articles May 2013 - July 2013 15-7-13 Page 61
  • 62. The method integrates a mix of data from Rentrak, TRA and comScore that matches TV audience segments with corresponding audiences online. He showed an example based on a hypothetical redeployment of Sears‘ massive 2012 ―back-to-school‖ TV advertising schedule, noting that a significant portion of the $1.3 billion TV impressions bought via the estimated $11 million TV buy were wasted on extraneous frequency to TV‘s heaviest viewers, while a significant portion of Sears‘ target audience was either under-exposed, or didn‘t get to see its TV ads at all. Evans calls these two segments to ―under-served‖ and the ―un-reached,‖ and hemade the case for peeling back a portion of Sears‘ TV buys and redeploying them online to reach those audiences where TV could not. The approach is interesting, and reminded me of the ―under-delivery‖ pitch cable networks used to make to advertisers and agencies before cable viewing became more ubiquitous. Evans‘ presentation made a strong case for using online to make up for TV‘s under-delivery. What he stopped short of making a case for, was cutting back on the excessive frequency being wasted on the heavy TV users. And I can understand why. No need stirring up a hornets nest until people are comfortable with the underlying logic of using online video to re-target TV viewers. Read more: http://www.mediapost.com/publications/article/202661/pay-attention-to-this-new-audience-segment-ifyou.html?edition=61227#ixzz2WVentQuZ Brasil registra mais de 14 milhões de celulares vendidos no trimestre Estudo da IDC revela que foram vendidos 5,4 milhões de smartphones e 8,7 milhões de feature phones Proxxima 14/06/2013 10:52 O IDC confirmou que o mercado brasileiro de telefones celulares atingiu a marca de 14,1 milhões de aparelhos vendidos no primeiro trimestre de 2013, o que significa um crescimento de 15% em relação ao mesmo período de 2012. O estudo indica que do total 5,4 milhões são smartphones e 8,7 milhões são feature phones. Sendo que o preço médio do smartphone passou de US$ 439 no primeiro trimestre de 2012, para US$ 384 no primeiro trimestre de 2013. ―O bom resultado alcançado no trimestre é atribuído a fatores como o aumento do mix de produtos por parte dos principais fabricantes que, atentos aos mercados emergentes, começaram a oferecer aparelhos voltados para diversos bolsos e necessidades, acelerando a competição entre eles e gerando uma redução de preço para o consumidor final‖, explica Leonardo Munin, analista de mercado da IDC Brasil. O primeiro trimestre de 2013 também ficou marcado pela retomada de compra de aparelhos por parte das operadoras junto aos fabricantes. Esse segmento representou 50% das vendas nos últimos três meses do ano passado, saltando para 60% no primeiro trimestre de 2013. Até o fim do ano, a IDC espera que sejam comercializados pouco mais 28 milhões de celulares inteligentes no Brasil. A POV on Facebook’s new hashtag function Author: Caroline Melly 14 June 2013 This week, Facebook announced the introduction of clickable hashtags, which will allow users to add content to a post that is part of a larger online discussion or community. Once one of the hashtags is clicked, the user will be brought to a feed where people and pages have posted related content about a topic, brand or event (it could be anything). As of now, with the introduction of the hashtag one can: • search for a specific hashtag from the search bar • click on a hashtag that originates on other services, such as Instagram • compose a post directly from the hashtag feed and search results The outlook for advertisers This addition to Facebook will help people and brands easily discover what others are saying about a certain topic and participate in a public conversation in the heavily tangled Facebook web. There has yet to be advertising support with hashtag use, but that would logically ride on the curtails of this new additional tool. Coming from an advertiser‘s perspective, it will be beneficial for brands to figure out what their audience (likers and followers) is talking about and what they want to hear on a much more natural level. Due to the fact that Twitter allows advertisers the option to pay to promote their own hashtags in the ―Trends‖ section, it will be interesting to see if Facebook opens up the option to purchase similar hashtag floodgates. By using a branded hashtags, marketers would be able to participate in millions of real-time conversations via Facebook, and thus amplify their trending numbers in a manner similar to Twitter. But how much will Facebook users like that? Already people feel a little overwhelmed by the ―suggested pages,‖ to the point that they are almost completely ignored. But how much control will advertisers have over what is said about their brand? With hashtags now tracking what is said on pages and in conversations, it is important to take note that their use will leave a trail, leading back to who or what dropped the hashtag. Cyber-bullying big brands gives a voice to the voiceless, and although their commentary is taken into consideration, it is more often than not dismissed (can‘t be too sensitive in the ad world). What advertisers and brands need to understand is that whatever they say and whatever is said about them is now easily searchable and will represent the brand in either a positive or negative light. Babelfish Articles May 2013 - July 2013 15-7-13 Page 62
  • 63. Responding to around-the-clock real-time posts will prove to be a tedious task for brands who have already spent endless time and money building up their Facebook pages. Brand marketers may not have as much control as they once did over the conversations between brand-customer, and what is said. Hashtags on Facebook will without a doubt alter the way the Newsfeed and Graph Search function, but as we all know Facebook is always changing. We as users just have to deal with it. - See more at: http://digitallabblog.com/digital-lab-blog/a-pov-on-facebooks-new-hashtag-function/#sthash.4pXQJcBM.dpuf The Smarter Data Manifesto Bryan Eisenberg | June 14, 2013 "An organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage." - Jack Welch Fifteen years of working with many organizations (it is an impressive list) has taught us most organizations have not yet achieved a point where marketing analytics is like financial reporting: simplified; fairly universal; with a clear line of sight to business financial statements and tied to specific goals and objectives. If everyone had a simple marketing analytics framework that made reporting simple, then everyone in the organization could help steer the organization in the right direction at maximum speed. Data drives (or should drive) marketing efforts, and now we are able to use data in ways, in quantities, and at a scale previously not possible. However, over 90 percent of the data we collect is noise, not signal, in terms of understanding our customers. This is why since the earliest days of digital analytics people fell in love with vanity metrics like HITS (a.k.a. how idiots track success). Social media and mobile technologies gave birth to even more vanity metrics. Signs of a Data-Driven Organization The point of being data-driven is not the collection of data and not the distribution of reports, even if they contain brilliant insights. The true value of data comes from how we use it to drive action (keep in mind that data, by itself, has no intrinsic value). The main benefit of collecting data is to use the data to: • Improve the experience of your customers. • Understand and optimize how your internal business processes are performing. • Determine how you can outperform your competitors. At the heart of using data effectively is the need to understand and define the evolving, complementary roles of analysts and marketers with the complete support of the organization's infrastructure. Of Auto Mechanics and Data Scientists John Lovett, senior partner of Web Analytics Demystified, and I debated the role of analysts (increasingly, the need is for data scientists), what the terms "data" and "analytics" mean, and how to help organizations become data-driven. John and I debated from different perspectives - John is a statistician/analyst, and I am a marketer. Please take a few moments to watch this interview conducted by Bryan Kramer, CEO of PureMatter. I suggested how, in order for an organization to become data-driven, a few key things must happen: • First, the organization must agree on a few key line-of-sights metrics that can be used to drive a business, much like a driver can look at a couple of key dials on the dashboard. • Second, the technology dimensions of using data must be communicated in a way that not-mathematically-inclined people can understand so they can apply them to answering business questions. I also explained how we need to make data more accessible within the organization to ask questions from our data sets - like having a "Google Now"-type voice command interface. John responded that, while he agrees business people need simplified dashboards like an automobile, when you have car trouble, you go and see the auto mechanic. I then agreed that, while businesses need technicians to ensure data is being collected and processed properly - as an auto mechanic would do for a wounded car - their roles are changing. Today, few mechanics need to repair the things they used to in the last decade. To diagnose the problem, auto mechanics plug the car into a computer and then use the results to guide replacing parts. No one rebuilds carburetors like they used to when I was younger. These technicians are necessary, but the scope of their involvement has become limited, and as digital analytics become morestandardized, their roles will continue to change. What Is Holding Your Organization Back From Being Data-Driven? A division of labor has always had its advantages, and in one way, technological changes require an even greater degree of transparency among all parties and require all to become cross-skilled and cross-functional. However, the expertise of each party is changing enormously, and that will change how an organization evolves in using data to drive marketing decisions. Many organizations are unwilling to adopt or even acknowledge the importance of these changes. The failure in organizations to become data-driven is self-imposed, and rarely does the resistance come from departments within. No matter the training of individuals within the company, it is the C-suite's responsibility to promote and support the expanding technologies, making it possible to refine the use of data. This is notthe obligation of the data folks. Making non-technical people work with reports in the form of charts and graphs is not going to magically transform them into data people. This is why we're seeing some technologies today humanize the people-data interface with visualization tools like Tableau and narrative tools like Narrative Science ( which just got additional funding from the investment arm of the CIA) and Automated Insights. Some technologies in development will offer a voice command interface to the data just like Google Now. Babelfish Articles May 2013 - July 2013 15-7-13 Page 63
  • 64. The Data - Information - Insight - Action Cycle "The world cares very little about what a man or woman knows; it is what a man or woman is able to do that counts." - Booker T. Washington The best way to explain the possibilities that live in the changing role of data analysts in emerging technologies and the continued importance of marketers is to look at an example. A friend recently told me that an automated report from one of his narrative tools identified a new referral for people searching on the terms "Shaq 2 year old." No one had to sit back and wait for someone else to analyze this and decide what to do about it. The tool itself took data, processed it to create information, and then related that information to achieve insight: recommendations for action. My friend received this report: Data: new referrals coming from "Shaq 2 year old" Information: identify a viral video featuring Shaq O'Neal competing in a basketball challenge against 2 year old Titus (Go Titus!) is driving these new searches, driving new traffic that may or may not be relevant to this toy business. Insight: the business has a few options: 1. The traffic is relevant and you might attempt to drive it to a landing page that features the basketball-oriented products with some messaging around customers' kids being the next Titus, then possibly embed the video on the page. 2. The traffic is irrelevant and, if you are paying for those clicks through PPC, add a negative keyword for "Shaq" or drop the bids on those terms until the viral surge slows down. Action: let's start designing that landing page. What most analysts do today, if you're lucky, is identify this new keyword (it will probably take some time) and then get the report to you a week later, when it is too late to capitalize on it. This isn't the fault of the analyst nor the marketers; it's the fault of the current ways the organization uses data. What Do Your Current Reports Look Like? Are they Excel spreadsheets with numbers and graphs, or more like a to-do list with research and data behind it? Very few analyst reports would include the fact that there was a viral video making the rounds, and virtually none of them would contain an insight so you could develop an action plan to create a new landing page and organize the resources in near real time. An organization becomes data-driven when it supports using data in near real time to make lots of small changes that allow you to improve the customer experience (bring visitors to a more relevant landing page), outperform your competitors because they were neither data-centric nor agile enough to create a dedicated landing page, or smart enough to reduce the costs associated with bidding on this irrelevant query that is surging and may eat up the budget on unqualified visitors. Even without the exciting new technology becoming available, existing technology is good enough to provide intelligent data points to your analysts and business teams. Still, the organization needs to be structured so that small, agile teams can gather insights from the data, empowered by technology and processes to act in ways that make a difference. The Illusive Data Scientist Image via http://drewconway.com/zia/2013/3/26/the-data-science-venn-diagram I have a ton of respect for those talented data scientists, but in reality, even if they have the title of data scientist, they do not possess the same business skills as marketers. These are not just people who have the coding and hacking skills to make sure the data is collected properly with tags, etc., or those who can perform the proper SQL or R queries. These are professionals who have the business chops to drive revenue with their technological skills. Vincent Granville said, "Talented data scientists leverage data that everybody sees, visionary data scientists leverage data that nobody sees." The problem is, as I said in the video, we need to find somewhere between 150-180,000 new data scientists in the next few years, and this isn't going to magically happen. Driving a Data-Driven Organization As an organization, what you need most is the equivalent of great auto mechanics who know plugging your car into a computer isn't going to offer a perspective beyond basic service. You want a skilled core team with an ace auto mechanic who can offer insight and respects that you know how to race your car. Babelfish Articles May 2013 - July 2013 15-7-13 Page 64
  • 65. You need to look beyond the ways data used to be collected to how technology can help you use your data far more effectively, because you have important goals. You have customers you want to satisfy. You want to know how to structure a good experience so it becomes fabulous. The ability to accomplish these goals exists. You have to decide today if you are going to keep up with the world by learning and adapting and becoming a truly data-driven organization. Then again, you could keep paying lip service to the future, throwing away resources in the process and having your reports...ignored. Your Data Was Never Yours By Kaila Colbin Friday, June 14, 2013 Did you really think it was? Did you really think the government could access none of it, that the miracle of an effectively free Internet was just a gift from the universe? Did you really think the companies that make their money by selling our body parts -eyeballs, mostly -- could never be compelled, as telecommunications companies and banks can be compelled, to hand over that data to the government? Did you think that sharing anything with your 300 closest friends left that thing imbued with even the smallest shred of privacy? Did you think the companies that spill your data like oil, that share it like candy, that hack your WiFi and follow you around could be trusted to protect you? Did you think their systems are so magical that, even if they did in fact have the world‘s most benign intentions, they could never suffer a breach? Did you think the system originally born from the government would somehow morph into being off-limits to its father? None of this makes it OK. It is not OK for the government to indiscriminately spy on us. It is not OK to avoid due process, and it is not OK for private corporations to track us without our consent. It is not OK -- but it happens, all the time. And yet we continue to be surprised when it happens, stunned at the magnitude of the revelations. We continue, Homer Simpson-style, to put our hand back on that hot stove and then whip it off again: ―Doh!‖ Do you think Google or Faceook usage has gone down since the Prism scandal came out? Out of the more than 171 million people who visited Google.com in May, how many of them might be so dismayed by the idea of being watched that they will change their search habits? I‘ve used Google seven times so far just in writing this article. And even if you did change search engines, which one is better? Which one keeps you ―safe‖? The bounty of our digital age is a feast for anyone who would access our data. Corporations.Governments.Criminals.Terrorists. If we put it online, we make it instantly vulnerable. So here is the rule: if you don‘t want the world to see it, if you don‘t want it splashed across the front cover of The New York Times and The Guardian, if you don‘t want people to know the intimate details of that oh-so-personal side of you, don‘t publish it. If you want to be truly anonymous, don‘t use computers that are connected to the Internet. It is wrong for governments to break the law, and I can only hope that anyone responsible for doing so gets held to account. But it is also wrong to assume it won‘t happen. Put enough of your digital valuables on display, and some hungry magpie will come along and peck at them. The only way to fully avoid the magpie is to avoid creating and displaying such valuable items in the first place. But will you? How many times have you used Google today? Local Link Building: An Easy Win Jon Ball, June 14, SIM Partners technology empowers major brands to maximize digital marketing results at a local level. Local link building is too often overlooked within link building campaigns. I‘ve had great experiences involving local link building throughout campaigns, gaining traction within very competitive search verticals, helping drive relevant and converting traffic. The trick to optimizing links for local search is two pronged – building great national industry links using geo-specific anchor text, and building great links from local authorities. For this post, I‘ll be covering how to build great links from local authorities – which time and time again has proven to require human creativity and leveraging relationships. Why Local Links are Important Dr. Pete at Moz wrote a fantastic post about the effect of SERP crowding for organic spots, due to features such as local listings, advertisements, the knowledge graph, rich snippets, etc. Said plainly, Google is working to evolve. They want to go beyond being a search engine returning relevant websites and become an information provider, social tool, and really, world changer. I recently read an article in Businessweek that really helps highlight this, specifically concerning their Google X department. The quote involves Google Glass, the latest hot item from Google X: Parviz wants the world to see Glass in the context of Google X: It‘s aimed at making access to knowledge so fast and seamless that it ―fundamentally changes the meaning of knowing things.‖ Babelfish Articles May 2013 - July 2013 15-7-13 Page 65
  • 66. One easy way to tap into Google‘s effort to provide deeper information within their SERPs – and secure an easy win – is to tap into local link building. Creating a Local Mindset The first and foremost step in launching a local link building campaign and building local authority links is establishing a local mindset. This is different than national link building, where it‘s supremely important to build links only on sites that are highly relevant to your industry, with a measure of authority. For local link building, the main consideration is who has authority within the community. Two primary questions you should ask when beginning a local link building campaign: • Who has authority within your community • Have I interacted with any local: • Businesses • Service providers • Charities • Media organizations • Social events • Universities, colleges, high schools, etc. • Groups, associations, societies, etc. Truly, that should be enough to get a local link building campaign off the ground and open creative opportunities. Let‘s dive a bit deeper into each of these questions. Local Authorities The first targets you need to identify are those who have authority within your local community. This is important for two reasons: 1. So you can work to build a link from their site to yours, which will clue Google into your own local authority 2. To establish what gives them their local authority, and further your own pursuit of local authority. Step 1 is the goal, with Step 2 being an extra ‗above and beyond‘, depending on how involved within the local community you wish to become. Step 1 — convincing local sites to link to yours — can only be taken by reaching out and building a relationship with local authorities, one at a time. It‘s extremely important to create positive interaction between your company and the local authority before attempting to secure the link. Get involved in some positive way with your target and the community before asking for a link. A few possibilities: • Sponsor/participate at an event of which they‘re a member • Create a community event and ask them (and other local authorities) to join • If possible, employ their services • Don‘t forget to write a review/give a testimonial – a great way to secure a link • Ask to interview them based upon a local topic they‘re passionate about, then feature it on your site • Ask to write a relevant article for their site, if they have a blog/host news • Create (and promote!) content useful to the community: • Local maps showing important community spots • Pet friendly locations within your local community • A local entertainment guide • A map/review of nearby great outdoor opportunities • Offer to be a source for any local journalists – odds are they won‘t have a story right away, but when they do they‘ll know who to come to • Release positive news about yourself periodically, that is relevant to the community Those are just a few suggestions that should help get your creative juices flowing. There‘s no one solution for local link building; every campaign will be different based upon industry, locality, and current standing within the community. Thinking creatively will always net you the best results. Step 2 is important in understanding the level of involvement necessary to become a local authority. If you want great local links to flow in, the best way is to become perceived as a local authority. Some actions that help create authority within a community: • Invested time, money, or energy into the community • Providing news, information, or purpose to the community Babelfish Articles May 2013 - July 2013 15-7-13 Page 66
  • 67. • Leading discussion on community hot topics • Organizing community events • Multiple ties throughout the community Again, spend time brainstorming how you can use assets, relationships, and current business strategies to further boost your local authority. Have I interacted with anyone local lately… The second piece of a local link building campaign that‘s all too often overlooked is bringing current relationships into the online world. Take a moment and consider your current local relationships. These can include: • Your current office complex • Real estate groups you used to find your current offices • Local vendors • Local service providers • Local charities • Coverage in local media Anytime you have a positive interaction with a local business, provide a review on your site or offer to give a testimonial. SEER wrote an article about this, and covered it pretty well. Local link building is 100 percent about finding local authorities, creating positive interaction, and bringing your relationships into the online world. How far you want to take it is fully dependent upon how much you want to invest, your current level of involvement with your community, and how important local is to your business. The best link building tool is your own brain. Creativity and unique thinking will build high quality, great links that no tool will ever match. Google takes over half of mobile adspend NEW YORK: Google, the internet services giant, accounted for more than half of the $8.8bn spent globally on mobile internet advertising last year, and its share is expected to rise as the world market almost doubles in 2013. Insights provider eMarketer estimated that Google took a 52% share of net mobile internet ad revenues in 2012, and that this would rise to 56% in 2013. Total mobile internet advertising spending has increased dramatically, from just $1.53bn in 2011, to $4.61bn last year and a forecast $8.85bn next year. Other companies are also growing fast, albeit from a far smaller base. Facebook, the social media site, had no mobile ad revenues in 2011, but recorded $470m in 2012, a figure which is predicted to increase 334% to $2.04bn in 2013. In 2013 Facebook is predicted to earn more in mobile ad revenues than Google did just two years ago, but will account for only 13% of the total market. Just as Facebook is a long way behind Google, so Twitter is a long way behind Facebook. eMarketer suggested that growth for the micro blogging site would be much slower than its competitors. Twitter's net mobile internet ad revenues have grown from zero in 2011 to $140m in 2012 and are forecast to reach $380m in 2013, by which time it will take a 2% share of the market. Combined, these three companies account for "a consolidating share" of mobile advertising revenues worldwide, said eMarketer. It predicted that the share of other players, including YP, Pandora, Apple and Millennial Media, would decrease. However, eMarketer added that these firms would still see their mobile advertising revenues growing rapidly. In particular, it said that YP, the online directories service, which accounted for 2.9% of mobile internet ad revenues last year, was well positioned in the mobile search market. Google and Facebook are also the leading two companies in terms of ad revenues across all digital platforms, taking shares of 31.5% and 4.1% respectively in 2012. And eMarketer expected that Google's share would increase further, partly due to its continued monetization of YouTube. Despite the dominance of Google and, to a lesser extent, Facebook, eMarketer observed that over half of all digital ad revenues worldwide went to companies in the "other" category. "There is space for other players to emerge and potentially gain significant share," it said. Data sourced from eMarketer; additional content by Warc staff, 14 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31532&Origin=WARCNewsEmail#sgFE4ElGFXGRhUD9.99 Babelfish Articles May 2013 - July 2013 15-7-13 Page 67
  • 68. Fans Crush Brands When It Comes to YouTube Branded content pales in comparison to user-produced fare, per Zefr By Zach James June 13, 2013, YouTube is increasingly becoming the most influential social network, and the place where pop culture is born. In fact, according to Cisco's new Visual Networking Index forecast, video usage is projected to outperform Facebook and Twitter by 2017. With the proliferation of video, we are seeing a transformation in how consumers interact with brands. Consumers are no longer just a passive audience; they are now passionate fans who are actively participating in driving value for brands. And while there's been lots of talk about brands acting as publishers, we‘re increasingly finding that fans drive more value by creating videos about the brands and products that they love. Take CoverGirl, for example. Of CoverGirl's 251 million total views on YouTube, 249 million (or 99 percent) are from fan-created videos, according to data compiled by Zefr. We see a similar trend with other leading brands: 92 percent of Oreo‘s views and 99 percent of Revlon‘s views come from fan content. Sometimes, original fan videos go viral, causing lots of other fans to create their own version of the original video. Swiffer‘s commercial of a woman mopping her kitchen floor and breaking out into dance inspired a trend on YouTube. More than 150 people uploaded their own rendition of the "Swiffer dance." Swiffer fan views don't just outnumber the actual brand views (10,451,334 vs. 225,220); they indicate a larger shift in the way consumers are interacting with brands and using YouTube. We're seeing fans take action in four distinct ways on a platform where they not only upload videos, but also comment live and experience instant shareability. First, fans tend to upload commercials that resonated with them. Examples range from a funny commercial like Old Spice to an exciting product release like an iPad or iPhone. These fans don‘t just watch a commercial; they engage. Another big trend we've seen is brand fans expressing themselves through the "unboxing" of items they love. What is unboxing? Think of videos of fans literally opening up the boxes of products they‘ve just purchased. From high-tech consumer products to cars to toys, these videos serve as instant reviews, where instead of going to Amazon to read feedback, people now search YouTube to get even more. YouTube is also the place consumers turn to find out how to use a product. Basically, YouTube has become the place for pre- and postpurchase conversations. Some fans take things even further, creating original content based on brand enthusiasm. Whether it's a Lego stop-motion animation or painting with a can of Coke, fans are showing their love for brands in unique ways. Lastly, we see some brand fans capitalize on a pop culture moment. A recent example of this is when Charles Ramsey, who saved a captured Amanda Berry, mentioned McDonald's during his press interview. Posts of the Ramsey video received more than 11 million views in less than 24 hours. Eighty percent of those views came from fan uploads (many of which specifically mentioned McDonald‘s in the title of the video), and McDonald‘s was mentioned in user comments more than 6,000 times across those videos. McDonald's reacted to the buzz by tweeting out support to Ramsey and giving him free burgers for a year, but imagine what else they could have done had they reached out to the super-fans that created the content that generated millions of views for them. In order to best harness the fans and leverage these opportunities on YouTube, brands need to listen and respond. Listening means digging in to all of the real-time data associated with your brand on YouTube, and making sense of the noise. This will allow brands to discover who their superfans are, understand their global footprint and compare performance to their competitors. Brands can use this intelligence to respond and better influence future marketing spends or work with fans to amplify messaging. These marketers can empower the fan base that was otherwise invisible by building relationships with them and teaming up with them and their respective networks. For example, Skittles did this by bringing on superfan Nathan Barnatt to create official Skittles videos. Barnatt's work tallied more than 5 million views and 190,000 subscribers—more than the official Skittles channel itself. YouTube is a platform that is ripe with data, passion and fans of brands. And it is now 1 billion people strong. Now, more than ever, is the time for brands to capture all that value. Big Cable Offering Producers Incentives to Stay Off the Web Include higher fees as well as threats to drop programming By Maura McGowan June 13, 2013, 12:22 PM EDT Television Time Warner Cable and other pay-TV operators are offering incentives to producers to withhold content from Internet services, Bloomberg reported. Bloomberg's unnamed sources said the incentives take the form of higher payments or threats to drop programming. Though the controversy goes back to June 2012 when the Justice Department announced it would investigate whether cable companies violate antitrust laws by shutting out online video competitors, the issue has gained renewed attention this week during the industry's Cable Show summit in Washington, D.C. During one meeting with analysts, Time Warner Cable CEO Glenn Britt indicated that the cable provider has programming contracts in place that prevent media outlets from licensing content to online pay-TV services. Time Warner has rebuffed any accusations of anticompetitive practices. "The amount and scope of exclusivity and windowing in Time Warner Cable's arrangements with programmers pales by comparison to that found between other players in the entertainment ecosystem," a representative of the company told Variety. Babelfish Articles May 2013 - July 2013 15-7-13 Page 68
  • 69. Maureen Huff, a Time Warner spokesperson, told Bloomberg, "It's absurd to suggest that in today‘s highly competitive video marketplace obtaining some level of exclusivity is anticompetitive." Time Warner compared its practices to NFL's exclusive deal with DirecTV and the Netflix distribution of Arrested Development. Variety reported that DirecTV, Dish Network and Cablevision Systems may have similar, contractually mandated provisions to discourage cable networks from distributing to Web services. Many news outlets cited a report from BTIG analyst Richard Greenfield, who wrote that the provisions "most certainly [are] bad for consumers" and thinks that the cable companies should be investigated by the FTC. "Virtual cable systems, or over-the-top providers, would be wonderful for consumers," Greenfield told Bloomberg. "It appears certain pay-TV operators don't want that to happen." Greenfield rejected the cable companies' argument that they are simply providing exclusivity at a premium. "They are not paying for exclusivity," Greenfield told The New York Times. "They are saying you can sell to X, to Y and Z, but you are forbidden from selling to this new class, called A." Mobile já responde por 7% da audiência dos sites de notícias, diz IVC Publicada em 23/04/2013 13:06 Os smartphones e tablets já respondem por 7% da audiência dos sites de notícias auditados pelo Instituto Verificador de Circulação (IVC). Em janeiro de 2011, os dispositivos móveis respondiam por apenas 0,6% das impressões de páginas, contra 7% em janeiro de 2013. E esse índice continua aumentando. Em fevereiro deste ano, a participação foi de 8%. Contribuiu para isso o expressivo crescimento do acessos internacionais, via tablets (5,8%) e smartphones (20,1). Já as redes sociais, que despontaram em 2011 como grandes redirecionadores de tráfego, acabaram não apresentando um crescimento expressivo, mantendo-se abaixo dos10% entre as quatro categorias analisadas: acesso direto, busca, redes sociais e outros. O destaque é a inversão de importância do Twitter e do Facebook. Em janeiro de 2011, o Twitter era o maior gerador de tráfego. Em Janeiro de 20133, o maior gerador entre as redes sociais passou a ser o Facebook, embora o Twitter continue gerando mais visitas a partir dos smartphones e leve pequena vantagem nos acessos via tablets. Participaram do estudo 60 dos 75 filiados do IVC, segundo João Torres, gerente de comunicação do instituto. Entre eles estão os principais jornais do Brasil, com exceção da Folha de São Paulo, e algumas das principais revistas, com exceção das publicações de Editora Globo e alguns títulos da Editora Abril. E as análises têm como fonte primária os dados brutos dos logs gerados por webanalytics, repassadospelos veículos de comunicação ao IVC. Os sites utilizados no estudo são, portanto, sites de notícias, exclusivamente, alguns deles integrantes de grandes portais. João chama a atenção para o fato de o crescimento dos dispositivos móveis como o meio de acesso a Internet apontado no estudo não levar em conta, ainda, os aplicativos de cada veículo, o que provavelmente tornaria o crescimento mais vigoroso. O IVC considerou apenas os acessos via browser. ―Ainda estamos no preparando para medir o uso das apps no acesso a informações digitais‖, conta o executivo, ressaltando que o instituto já iniciou um trabalho junto aos fornecedores de plataformas/desenvolvedores de apps de notícias _ como Adobe, Digital Pages, etc _para credenciá-los e pré homologar formatos de geração de informações para auditoria. ―Nos Estados Unidos a Adobe já fez algumas experiências junto com o IVC nesse sentido, e a ideia foi bem recebida pelos fornecedores aqui. O próximo passo é envolver os próprios veículos, para que os apps já sejam criados prevendo a geração de dados para auditoria‖,diz João, ciente de que esse será o maior obstáculo a ser superado, já que muitas empresas têm receio de abrir os números, considerados por elas ainda pouco expressivos. Evolução de Unique Browsers Como o foco do estudo é o mercado publicitário, a análise considerou duas métricas: Impressão de Páginas e Unique Browser, que representam volume e alcance dos veículos auditados. O volume de acessos aos 60 sites participantes cresceu, em média, 23% de janeiro de 2011 até janeiro de 2013. O incremento por regiões aponta altas mais fortes nos estados do Nordeste (69%), Norte (41%) e Centro-Oeste( 32%). Já o número de dispositivos/browsers utilizados para acesso aumentou 18%. Esses dadosindicam uso mais frequente, com forte crescimento do volume, e alcance um pouco maior, crescendo a taxas menores na variação anual. O estudo analisou ainda quais são os browsers e dispositivos mais usados. Entre os browsers, há um crescimento expressivo do Chrome (impulsionado também pelo crescimento do uso de dispositivos Android) e redução de uso do Internet Explorer (tabela abaixo). Isso teve reflexo direto no aumento do tráfego gerado a partir das ferramentas de busca sobre o tráfego direto, já que a barra de endereço dos browsers passaram a funcionar como a caixa de entrada das ferramentas de busca do Google e da Microsoft. No caso dos smartphones e tablets, a utilização de browsers diferentes dos fornecidos junto com o aparelho ainda é pouco comum. Nos gráficos a seguir, podemos perceber aumento considerável do sistema operacional Android entre os smartphones e tablets, superando o iOS no início de 2012 em impressões de páginas e no fim de 2012 em Unique Browsers. ―Mas a perda de share da Apple não quer dizer que os acesso via iPhone tenham diminuído. Cresceram. A questão é que houve aumento de consumo a partir de outras plataformas Android _ notadamente equipamentos Samsung, Motorola e LG _ que, juntas, ampliaram a participação do sistema operacional da Google. Entre os dispositivos, os PCs concentram maior utilização no horário comercial (dias de semana, das 8h às 18h). Já os smartphones são usados de modo uniforme ao longo do dia e da noites, com picos de acesso nos horários de maior mobilidade (8h, 13h e 19h). Os tablets, por sua vez, são utilizados de maneira mais uniforme no horário comercial, com intensificação de Babelfish Articles May 2013 - July 2013 15-7-13 Page 69
  • 70. acesso às 8h e durante a noite, a partir das 19h. Nos fins de semana os três dispositivos apresentam usos semelhantes: 0 pico de acesso começa às 10h e se mantém elevado até às 23h, com prime time às 20h. Segundo João Torres, os usuários de tablets passam mais tempo nos sites acessados. ―É uma leitura mais demorada‖, afirma. Marketing Technology Map Mondelez International identifies the path to mobile success Sarah Shearman Mondelez International, the snacks company, has seen "pretty spectacular" results following the decision to shift 10% of its worldwide marketing budget into mobile, according to Bonin Bough, the firm's vice president of global media and consumer engagement. This strategy, known informally as "Getting to ten", was unveiled in October 2012, as Mondelez prepared to be spun off from Kraft Foods. And speaking at the Mobile Media Upfront conference, a trade event held in New York in May 2013, Bough suggested he had been "blown away" by the performance of its mobile campaigns to date. Having first discussed the company's broad intentions at the Mobile Media Upfront in 2012, he used the 2013 gathering to reexamine his prediction from a year ago that, "We have to make it happen, because that is where we believe we will see the most dramatic impact to our consumers' buying behaviour." "The good news is: we were right," Bough said. But Mondelez has greater ambitions still, given that 5.1 billion people possess a mobile phone, more than own a toothbrush, and 24% of media is now consumed in this way. "Most people tell you they are not distracted, but multitaskers. But we have become the most distracted society in human history," said Bough. More specifically, he asserted that the 10% benchmark reflects "who we are as a society". "What remains clear is that mobile will be a driving force. It is a cornerstone that is very important to us," he continued. Mondelez's plan to ensure a tenth of its marketing spend goes to mobile thus has two strategic pillars. The first is the "partnership track", represented by alliances such as those forged with Facebook, Google and Catalina. The second is the "Mobile Futures" accelerator programme, which will help Mondelez navigate and discover new technologies. Babelfish Articles May 2013 - July 2013 15-7-13 Page 70
  • 71. Bough then identified four "buckets" that are attracting the company's attention on mobile. One is video, a format performing better on mobile than any other medium, Bough said. This is in large part because mobile video has increased penetration levels and supplemental reach thanks to its synchronisation with other ads. Social TV is also a core area of focus. As an example of its activity in this arena, Bough cited chewing gum brand Trident's recent partnership with music network Fuse TV and Twitter to create a TV show, Trending 10, based on consumers' tweets. Efforts undertaken on behalf of Cadbury, the confectionery brand, during the 2012 Olympics and a tie-up with media giant Viacom on Mobile Futures serve as further case studies of Mondelez's emphasis on this emerging opportunity. Indeed, by combining social media with TV ads, the packaged goods group has enhanced the effectiveness of its television spots two to three times over, as well as fostering longer periods of engagement. Meanwhile, all the main social media metrics, such as tweets and "Likes", have experienced a "dramatic" increase. "If you think a marketer spends 90% of their budget on TV, imagine if you can make that 90% work twice as hard? It's a cash register," Bough said. Mobile media is another "bucket" that has allowed Mondelez to fuel sales. Consumers with a mobile device in-store are likely to make 18% more impulse purchases, making this a valuable audience. The final issue Mondelez is seeking to address is building loyalty. "All four areas have seen huge success," said Bough. One example of the strong creative ideas that Mondelez has produced on mobile was an Instagram campaign for Oreo cookies in January 2013, when it asked users to post images revealing if they were a "cookie or cream". "The definition of great marketing is getting cut through and driving people to share and have awareness, which this campaign did," Bough said. He added that this initiative proves earned media "matters more and more", because "it attaches you to culture in a way that on your own you cannot achieve." Oreo's "cookie or cream" campaign on Instagram engaged consumers Source: instagram.com/p/VR5_ADxtGO/ In his previous role at PepsiCo, Bough also pioneered a start-up incubator scheme, but he suggested Mondelez's mobile accelerator is "one of a kind", as it is aiming to facilitate a process of "cultural transference" that will help the firm's marketers understand the nuances of new technologies and buy into the mobile space. Mondelez announced the first nine partnerships between the winning start-ups and its brands in January, having received over 300 applications. "Few organisations can say they are set up to look at volume of emerging tech players that we have," said Bough. In this first wave of Mobile Futures, Trident was paired with second-screening music app Lisnr, Oreo was coupled with location-based social content specialist Banjo, and Stride was matched with the crowd-sourced navigation app Waze. Brand managers will liaise closely with these start-ups. In the second phase of the accelerator scheme, executives from Mondelez will come up with their own proposals for start-ups. Two will ultimately be selected and developed in-house in 90 days, before being pitched to venture capitalists and co-funds. For Bough, this demonstrates "where the future is going". "The best way to predict the future is to be part of its invention," he said, to which end incubators will also be introduced to international markets this year. One of the challenges Mondelez has faced in "getting to ten" is accurately measuring the contribution of each medium. To solve this problem, it has asked Carat and MediaVest, its media agencies, to explore attribution based-modelling. "We have been systematic in getting to 10, because aspiration without allocation is pretty much meaningless. We wanted to put something into market, and deliver results," said Bough. "We have good sense across multichannel what delivers. So what does mobile deliver to TV and what does TV deliver to mobile. And that nuance is where we can dial things up and down," he said. "It's not about channel versus channel." Read more at http://www.warc.com/Content/ContentViewer.aspx?ID=4379b576-f854-47df-bb21794154746cdc&MasterContentRef=4379b576-f854-47df-bb21-794154746cdc&GUserID=aa148723-89af-4adc-96d59df296627143#dROa2tdxrxMSJp3k.99 Let's Go Surfing Now… David Toner | June 13, 2013 The online video wave is coming, and it will be bigger than…well, anything! According to the recently released Cisco Visual Networking Index (VNI), by 2017 more people will be consuming video online than any other media - including social networks, online music, gaming, or digital TV. In addition, it forecasts that consumer Internet video traffic will be 69 percent of all consumer Internet traffic in 2017. VNI is Cisco's ongoing effort to forecast and analyze the growth and use of IP networks worldwide - which the company predicts will double from 2012 to 2017 - and it presents a remarkable evolution in the online advertising space. Today, online video ad units are still a sparse commodity mostly found on PC devices, with publishers pushing to create additional video consumption and more video inventory. Based on these projections, video ad inventory will not be the problem in the future because Wi-Fi and mobile devices will account for 55 percent of IP traffic. Instead, the marketing challenge will be defining and delivering meaningful, integrated ads within this hyper-growth area and across device platforms. In last month's column, I explored how the online video creative has dynamically moved beyond the pre-roll to provide multimedia canvases that can live and run anywhere - social, mobile, within traditional IAB units, and elsewhere. The forecasted volume of online video consumption presents an incredible opportunity and challenge. And it raises plenty of questions: how will consumption patterns evolve? What will ad units look like? How will brands distinguish themselves? Babelfish Articles May 2013 - July 2013 15-7-13 Page 71
  • 72. Taking Shape The interesting thing about the media forms that online video will begin to overtake is that almost every one of them presents more opportunity for online video. Video is inclusive and additive to social networks, online music, gaming, and digital TV. So those mediums will not go away; they will just be filled with more videos and potentially less text, posts, and pictures. Online video's growth will not replace other mediums, but rather they too will catch the wave as videos will become the dominant form of consumption, just as photos have grown to dominate today's online mediums. Catching the Wave While traditional video ads are on their way to becoming passé, a future filled with online video appearing throughout various communication mediums is rich with opportunity. The online video ad units of the future will be less interruptive - e.g., "before consuming your desired content you must watch this" - and more a part of consumer consumption patterns, woven into social networks, streaming music, gaming, and digital TV experiences. In a way, this is building upon the sponsored TV shows of the '50s and the initial successes of native advertising. But rather than "brought to you by" addendums or content integrations, video ads in these mediums must be incremental to the user experience - enhancing the user experience and adding value. The future will require deeper integration into game playing or digital TV consumption, which in turn will position hybrid content/media companies like Apple, Google, Facebook, Microsoft, and potentially wireless carriers with an early advantage to do this right. They will be able to layer hardware, software, and behavioral characteristics to deliver meaningful, relevant videos in line with user expectations. This is not unlike the long-discussed model of "addressable TV," but I believe the online video model has leapfrogged the in-home TV model. This advantage is due to the inherent volume of user-initiated sharing of personal interests and activities. In other words, your gaming console will know a lot more about you than your cable provider ever will. It also helps explain the recently rumored partnerships between ESPN and wireless carriers. ESPN knows a lot about its users, but only with respect to a single passion point - sports. Working more closely with the carriers to underwrite data consumption would also (likely) enable them to target and deliver advertising in a much more sophisticated manner. Standing Out So if consumers move en masse to consume more online video and every brand is looking to reach and influence their target audience, how does a brand stand out? Quite simply, by taking a few chances. When you are looking to catch a wave, you cannot place your bet on a single break, rather you have to take a few floaters. There will be new platforms and new ad units from the major players, as well as startup and homegrown solutions. As online video grows and evolves, the winners will intersect with consumers where they live and play. There will be a couple of years of a "Wild West" mentality as we develop, define, and refine these new models. Just as posting :30-second TV spots to the web didn't work, shifting standard web video units to these new mediums will not work. Figuring out what to do and how to react will require applying test-and-learn principles, understanding your consumer audience, and working very closely with publishing partners - including social networks, online gaming, music, and digital TV companies. It's in each party's best interest to collaborate and evolve together - design, build, deploy, then redesign, build, deploy. Rather than filling the pipe with volumes of irrelevant video, let's work together to develop and deliver video that is more meaningful to consumers in every way. Image on home page via wonderisland / Shutterstock.com. Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2012–2017 February 6, 2013 The Cisco® Visual Networking Index (VNI) Global Mobile Data Traffic Forecast Update is part of the comprehensive Cisco VNI Forecast, an ongoing initiative to track and forecast the impact of visual networking applications on global networks. This paper presents some of Cisco's major global mobile data traffic projections and growth trends. Executive Summary The Mobile Network in 2012 Global mobile data traffic grew 70 percent in 2012. Global mobile data traffic reached 885 petabytes per month at the end of 2012, up from 520 petabytes per month at the end of 2011. Last year's mobile data traffic was nearly twelve times the size of the entire global Internet in 2000. Global mobile data traffic in 2012 (885 petabytes per month) was nearly twelve times greater than the total global Internet traffic in 2000 (75 petabytes per month). Mobile video traffic exceeded 50 percent for the first time in 2012. Mobile video traffic was 51 percent of traffic by the end of 2012. Mobile network connection speeds more than doubled in 2012. Globally, the average mobile network downstream speed in 2012 was 526 kilobits per second (kbps), up from 248 kbps in 2011. The average mobile network connection speed for smartphones in 2012 was 2,064 kbps, up from 1,211 kbps in 2011. The average mobile network connection speed for tablets in 2012 was 3,683 kbps, up from 2,030 kbps in 2011. In 2012, a fourth-generation (4G) connection generated 19 times more traffic on average than a non-4G connection. Although 4G connections represent only 0.9 percent of mobile connections today, they already account for 14 percent of mobile data traffic. Babelfish Articles May 2013 - July 2013 15-7-13 Page 72
  • 73. The top 1 percent of mobile data subscribers generate 16 percent of mobile data traffic, down from 52 percent at the beginning of 2010. According to a mobile data usage study conducted by Cisco, mobile data traffic has evened out over the last year and is now lower than the 1:20 ratio that has been true of fixed networks for several years. Average smartphone usage grew 81 percent in 2012. The average amount of traffic per smartphone in 2012 was 342 MB per month, up from 189 MB per month in 2011. Smartphones represented only 18 percent of total global handsets in use in 2012, but represented 92 percent of total global handset traffic. In 2012, the typical smartphone generated 50 times more mobile data traffic (342 MB per month) than the typical basic-feature cell phone (which generated only 6.8 MB per month of mobile data traffic). Globally, 33 percent of total mobile data traffic was offloaded onto the fixed network through Wi-Fi or femtocell in 2012. In 2012, 429 petabytes of mobile data traffic were offloaded onto the fixed network each month. Without offload, mobile data traffic would have grown 96 percent rather than 70 percent in 2012. Android is now higher than iPhone levels of data use. By the end of 2012, average Android consumption exceeded average iPhone consumption in the United States and Western Europe. In 2012, 14 percent of mobile devices and connections were potentially IPv6-capable. This estimate is based on network connection speed and OS capability. In 2012, the number of mobile-connected tablets increased 2.5-fold to 36 million, and each tablet generated 2.4 times more traffic than the average smartphone. In 2012, mobile data traffic per tablet was 820 MB per month, compared to 342 MB per month per smartphone. There were 161 million laptops on the mobile network in 2012, and each laptop generated 7 times more traffic than the average smartphone. Mobile data traffic per laptop was 2.5 GB per month in 2012, up 11 percent from 2.3 GB per month in 2011. Nonsmartphone usage increased 35 percent to 6.8 MB per month in 2012, compared to 5.0 MB per month in 2011. Basic handsets still make up the vast majority of handsets on the network (82 percent). The Mobile Network Through 2017 Mobile data traffic will reach the following milestones within the next five years. • Monthly global mobile data traffic will surpass 10 exabytes in 2017. • The number of mobile-connected devices will exceed the world's population in 2013. • The average mobile connection speed will surpass 1 Mbps in 2014. • Due to increased usage on smartphones, handsets will exceed 50 percent of mobile data traffic in 2013. • Monthly mobile tablet traffic will surpass 1 exabyte per month in 2017. • Tablets will exceed 10 percent of global mobile data traffic in 2015. Global mobile data traffic will increase 13-fold between 2012 and 2017. Mobile data traffic will grow at a compound annual growth rate (CAGR) of 66 percent from 2012 to 2017, reaching 11.2 exabytes per month by 2017. By the end of 2013, the number of mobile-connected devices will exceed the number of people on earth, and by 2017 there will be nearly 1.4 mobile devices per capita. There will be over 10 billion mobile-connected devices in 2017, including machine-to-machine (M2M) modules-exceeding the world's population at that time (7.6 billion). Mobile network connection speeds will increase 7-fold by 2017. The average mobile network connection speed (526 kbps in 2012) will exceed 3.9 megabits per second (Mbps) in 2017. In 2017, 4G will be 10 percent of connections, but 45 percent of total traffic. In 2017, a 4G connection will generate 8 times more traffic on average than a non-4G connection. By 2017, 41 percent of all global mobile devices and connections could potentially be capable of connecting to an IPv6 mobile network. Over 4.2 billion devices and connections will be IPv6-capable in 2017. Two-thirds of the world's mobile data traffic will be video by 2017. Mobile video will increase 16-fold between 2012 and 2017, accounting for over 66 percent of total mobile data traffic by the end of the forecast period. Mobile-connected tablets will generate more traffic in 2017 than the entire global mobile network in 2012. The amount of mobile data traffic generated by tablets in 2017 (1.3 exabytes per month) will be 1.5 times higher than the total amount of global mobile data traffic in 2012 (885 petabytes per month). The average smartphone will generate 2.7 GB of traffic per month in 2017, an 8-fold increase over the 2012 average of 342 MB per month. Aggregate smartphone traffic in 2017 will be 19 times greater than it is today, with a CAGR of 81 percent. By 2017, almost 21 exabytes of mobile data traffic will be offloaded to the fixed network by means of Wi-Fi devices and femtocells each month. Without Wi-Fi and femtocell offload, total mobile data traffic would grow at a CAGR of 74 percent between 2012 and 2017 (16-fold growth), instead of the projected CAGR of 66 percent (13-fold growth). The Middle East and Africa will have the strongest mobile data traffic growth of any region at 77 percent CAGR. This region will be followed by Asia Pacific at 76 percent and Latin America at 67 percent. Appendix A summarizes the details and methodology of the VNI forecast. 2012 Year in Review Global mobile data traffic grew 70 percent in 2012, and growth rates varied widely by region. Western Europe, in particular, experienced a slowdown in mobile data traffic, with growth of 44 percent in 2012, substantially lower than the global average. Babelfish Articles May 2013 - July 2013 15-7-13 Page 73
  • 74. (Reasons for the slower growth of European mobile data traffic growth are outlined in the subsequent section.) Mobile data traffic in Asia Pacific, on the other hand, grew at 95 percent in 2012, a near-doubling of traffic. Table 1 illustrates the continued strong growth in many Asia Pacific countries, compared to the slower growth in Western Europe. Table 1. Examples of Mobile Data Traffic Growth in 2012 Region Mobile Traffic Growth Examples Korea As reported by Korean regulator KCC, mobile data traffic on 2G, 3G, and 4G networks increased approximately 80% between January and November of 2012. China China Mobile's mobile data traffic grew 77% from mid-2011 to mid-2012. China Unicom's mobile data traffic grew 112% from mid-2011 to mid-2012. Japan As measured by Japanese regulator MIC, mobile data traffic grew 113% from September 2011 to September 2012. Australia As reported by Australian regulator ACMA, mobile data traffic grew 40% from mid-2011 to mid-2012. Italy As reported by Italian regulator AGCOM, mobile traffic in Italy in 3Q12 was up 32% year-over-year. Global Telefonica's total year-over-year mobile traffic growth was 35% in 1Q12, down from 75% in 1Q11. Vodafone's year-over-year mobile traffic growth was 34% in FY2012, down from 69% in FY2011. Why Was 2012 Growth Slower than Expected in Some Regions? Reasons for the slower growth of mobile data traffic growth in some regions include: 1. The implementation of tiered mobile data packages. First introduced in 2009 and 2010, the majority of mobile users have now been migrated to tiered plans. Many operators across the globe have eliminated unlimited data plans. 2. A slowdown in the number of mobile-connected laptop net additions. We estimate that the number of mobile-connected laptops in Europe declined from 33.8 million at the end of 2011 to 32.6 million at the end of 2012. Europe was the only region to experience a decline; all other regions exhibited flat-to-positive growth. Globally, the growth rate in mobile-connected laptops dropped from 28 percent in 2011 to 12 percent in 2012. Since mobile-connected laptops have historically been a major contributor to mobile data traffic volumes, the slowing growth has had a significant impact on our estimates. 3. An increase in the amount of mobile traffic offloaded to the fixed network. Operators have encouraged the offload of traffic onto Wi-Fi networks, and offload rates continue to be high around the world. Tablet traffic that might have migrated to mobile networks has largely remained on fixed networks. In the long term, mobile data and fixed traffic should settle into the same growth rate, although the mobile data growth rate is likely to remain higher than the fixed growth rate over the next decade. Global Mobile Data Traffic, 2012 to 2017 Overall mobile data traffic is expected to grow to 11.2 exabytes per month by 2017, a 13-fold increase over 2012. Mobile data traffic will grow at a CAGR of 66 percent from 2012 to 2017 (Figure 1). Figure 1. Cisco Forecasts 11.2 Exabytes per Month of Mobile Data Traffic by 2017 The Asia Pacific and North America regions will account for almost two-thirds of global mobile traffic by 2017, as shown in Figure 2. Middle East and Africa will experience the highest CAGR of 77 percent, increasing 17.3-fold over the forecast period. Asia Pacific will have the second highest CAGR of 76 percent, increasing 16.9-fold over the forecast period. The emerging market regions of Latin America and Central and Eastern Europe will have CAGRs of 67 percent and 66 percent respectively, and combined with Middle East and Africa will represent an increasing share of total mobile data traffic, up from 19 percent at the end of 2012 to 22 percent by 2017. Figure 2. Global Mobile Data Traffic Forecast by Region In the sections that follow, we identify 10 major trends behind the growth of mobile data traffic. Trend 1: Device Diversification Figure 3 shows the devices responsible for mobile data traffic growth. Laptops generate a disproportionate amount of traffic today, but smartphones and newer device categories such as tablets and M2M nodes will begin to account for a more significant portion of the traffic by 2017. Figure 3. Smartphones Lead Traffic Growth The increasing number of wireless devices that are accessing mobile networks worldwide is one of the primary contributors to traffic growth. Each year several new devices in different form factors and increased capabilities and intelligence are being introduced in the market. By 2017, there will be 8.6 billion handheld or personal mobile-ready devices and 1.7 billion machine-tomachine connections (e.g., GPS systems in cars, asset tracking systems in shipping and manufacturing sectors, or medical applications making patient records and health status more readily available, et al.). Regionally, North America and Western Europe are going to have the fastest growth in mobile devices and connections with 13 percent and 10 percent CAGR from 2012 to 2017 respectively. While non-smartphones have the largest share of all mobile devices and connections, after 2015 the number of overall nonsmartphones in use will start declining for the first time (Figure 4). While Asia-Pacific and Middle East and Africa will still show a low single digit growth for non-smartphones, all other regions will experience a decline. The highest decline will be experienced by North America (negative CAGR of 37 percent) and Western Europe (negative CAGR of 17 percent). Figure 4. Global Mobile Devices and Connections: M2M, Smartphones and Tablets Drive Growth Babelfish Articles May 2013 - July 2013 15-7-13 Page 74
  • 75. The overall share of non-smartphones will decline from 75 percent of all mobile connections in 2012 to 50 percent in 2017. The biggest gain in share will be M2M (5 percent of all mobile connections in 2012 to 17 percent in 2017) and smartphones (16 percent of all mobile connections in 2012 to 27 percent in 2017). The highest growth will be in tablets (CAGR of 46 percent) and M2M (CAGR of 36 percent). The proliferation of high-end handsets, tablets, and laptops on mobile networks is a major generator of traffic, because these devices offer the consumer content and applications not supported by previous generations of mobile devices. As shown in Figure 5, a single smartphone can generate as much traffic as 50 basic-feature phones; a tablet as much traffic as much as 120 basicfeature phones; and a single laptop can generate as much traffic as 368 basic-feature phones. Figure 5. High-End Devices Significantly Multiply Traffic Trend 2: Growth in Average Traffic per Device Average traffic per device is expected to increase rapidly during the forecast period, as shown in Table 2. Table 2. Summary of Per Device Usage Growth, MB per Month Device Type 2012 2017 Nonsmartphone 6.8 31 M2M Module 64 330 Smartphone 342 2,660 1,302 5,114 Tablet 820 5,387 Laptop 2,503 5,731 4G Smartphone Source: Cisco VNI Mobile Forecast, 2013 The growth in usage per device outpaces the growth in the number of devices. As shown in Table 3, the growth rate of new-device mobile data traffic is two to five times greater than the growth rate of users. Table 3. Comparison of Global Device Unit Growth and Global Mobile Data Traffic Growth Device Type Growth in Devices, 2012-2017 CAGR Growth in Mobile Data Traffic, 2012-2017 CAGR Smartphone 20% 81% Tablet 46% 113% Laptop 11% 31% M2M Module 36% 89% Source: Cisco VNI Mobile Forecast, 2013 The following are a few of the main promoters of growth in average usage. • As mobile network connection speeds increase, the average bit rate of content accessed through the mobile network will increase. High-definition video will be more prevalent, and the proportion of streamed content as compared to side-loaded content is also expected to increase with average mobile network connection speed. • The shift toward on-demand video will affect mobile networks as much as it will affect fixed networks. Traffic can increase dramatically even while the total amount of time spent watching video remains relatively constant. • As mobile network capacity improves and the number of multiple-device users grows, operators are more likely to offer mobile broadband packages comparable in price and speed to those of fixed broadband. This is encouraging mobile broadband substitution for fixed broadband, where the usage profile is substantially higher than average. • Mobile devices increase an individual's contact time with the network, and it is likely that this increased contact time will lead to an increase in overall minutes of use per user. However, not all of the increase in mobile data traffic can be attributed to traffic migration to the mobile network from the fixed network. Many uniquely mobile applications continue to emerge, such as locationbased services, mobile-only games, and mobile commerce applications. Trend 3: Mobile Video Because mobile video content has much higher bit rates than other mobile content types, mobile video will generate much of the mobile traffic growth through 2017. Mobile video will grow at a CAGR of 75 percent between 2012 and 2017, the highest growth rate of any mobile application category that we forecast. Of the 11.2 exabytes per month crossing the mobile network by 2017, 7.4 exabytes will be due to video (Figure 6). Figure 6. Mobile Video Will Generate Over 66 Percent of Mobile Data Traffic by 2017 Because many Internet video applications can be categorized as cloud applications, mobile cloud traffic follows a curve similar to video. Mobile devices have memory and speed limitations that might prevent them from acting as media consumption devices, were it not for cloud applications and services. Cloud applications and services such as Netflix, YouTube, Pandora, and Spotify allow mobile users to overcome the memory capacity and processing power limitations of mobile devices. Globally, cloud applications will account for 84 percent of total mobile data traffic in 2017, compared to 74 percent at the end of 2012, as shown in Figure 7. Mobile cloud traffic will grow 14-fold from 2012 to 2017, a compound annual growth rate of 70 percent. Babelfish Articles May 2013 - July 2013 15-7-13 Page 75
  • 76. Figure 7. 84 Percent of Total Mobile Data Traffic will be Due to Cloud in 2017 Trend 4: Traffic Offload from Mobile Networks to Fixed Networks Much mobile data activity takes place within the user's home. For users with fixed broadband and Wi-Fi access points at home, or for users served by operator-owned femtocells and picocells, a sizable proportion of traffic generated by mobile and portable devices is offloaded from the mobile network onto the fixed network. As a percentage of total mobile data traffic from all mobile-connected devices, mobile offload increases from 33 percent (429 petabytes/month) in 2012 to 46 percent (9.6 exabytes/month) in 2017 (Figure 8). Without offload, Global mobile data traffic would grow at a CAGR of 74 percent instead of 66 percent. Offload volume is determined by smartphone penetration, dual-mode share of handsets, percentage of home-based mobile Internet use, and percentage of dual-mode smartphone owners with Wi-Fi fixed Internet access at home. Figure 8. 46 Percent of Total Mobile Data Traffic will be Offloaded in 2017 The amount of traffic offloaded from smartphones will be 46 percent in 2017, and the amount of traffic offloaded from tablets will be 71 percent in 2017. A supporting trend is the growth of cellular connectivity for devices such as tablets which in their earlier generation were limited to Wi-Fi connectivity only. With increase desire for mobility and mobile carriers offer of data plans catering to multi-device owners, we find that the cellular connectivity is on a rise albeit cautiously as the end users are testing the waters. As a point in case we estimate that by 2017, 34 percent of all tablets will have a cellular connection up from 29 percent in 2012 (Figure 9). Figure 9. 34 Percent of Global Tablets will be Cellular Connected by 2017 Trend 5: Mobile Network Connection Speeds to Increase 7-Fold Globally, the average mobile network connection speed in 2012 was 526 kbps. The average speed will grow at a compound annual growth rate of 49 percent, and will exceed 3.9 Mbps in 2017. Smartphone speeds, generally third-generation (3G) and higher, are currently almost four times higher than the overall average. Smartphone speeds will triple by 2017, reaching 6.5 Mbps. There is anecdotal evidence to support the idea that usage increases when speed increases, although there is often a delay between the increase in speed and the increased usage, which can range from a few months to several years. The Cisco VNI forecast relates application bit rates to the average speeds in each country. Many of the trends in the resulting traffic forecast can be seen in the speed forecast, such as the high growth rates for developing countries and regions relative to more developed areas (Table 4). Table 4. Projected Average Mobile Network Connection Speeds (in kbps) by Region and Country 2012 2013 2014 2015 2016 2017 CAGR Global speed: All Handsets 526 817 1,233 1,857 2,725 3,898 49% Global speed: Smartphones 2,064 2,664 3,358 4,263 5,284 6,528 26% Global speed: Tablets 3,683 4,811 6,082 7,624 9,438 11,660 26% Middle East & Africa 219 371 640 1,101 1,837 2,898 68% Central & Eastern Europe 551 909 1,458 2,288 3,426 4,760 54% Latin America 200 349 586 956 1,492 2,207 62% 1,492 2,233 3,124 4,168 5,429 7,013 36% 316 506 806 1,318 2,039 3,036 57% 2,622 4,083 5,850 8,023 10,793 14,399 41% 2012-2017 Global By Region Western Europe Asia-Pacific North America Source: Cisco VNI Mobile Forecast, 2013 Current and historical speeds are based on data from Cisco's GiST (Global Internet Speed Test) application and Ookla's Speedtest. Forward projections for mobile data speeds are based on third-party forecasts for the relative proportions of 2G, 3G, 3.5G, and 4G among mobile connections through 2017. For more information about Cisco GIST, please visit http://ciscovni.com/gist/index.html. A crucial factor promoting the increase in mobile speeds over the forecast period is the increasing proportion of 4G mobile connections. The impact of 4G connections on traffic is significant, because 4G connections, which include mobile WiMAX and Long-Term Evolution (LTE), generate a disproportionate amount of mobile data traffic. Trend 6: Impact of 4G Connections on the Increase The explosion of mobile applications and phenomenal adoption of mobile connectivity by the end users on the one hand and the need for optimized bandwidth management and network monetization on the other hand is fueling the growth of Global 4G deployments and adoption. Service Providers, around the world, are busy rolling out 4G networks to help them meet the growing end-user demand for more bandwidth, higher security and faster connectivity on the move (Appendix B). Babelfish Articles May 2013 - July 2013 15-7-13 Page 76
  • 77. While, 3G capable devices and connections will gain the highest share (50 percent of all devices and connections) by 2015 10 percent of all global devices and connections will be 4G capable by 2017 (Figure 10). The global mobile 4G connections will grow from 60 million in 2012 to 992 million in 2017 at a CAGR of 75 percent. Figure 10. Global Mobile Devices and Connections by 2G, 3G and 4G While 4G deployment is a global phenomenon, regions such as North America (31 percent) and Western Europe (18 percent) will have the highest ratio of 4G connections by 2017 (Appendix B). Among countries Korea will have over 72 percent of the country's total connections on 4G by 2017 with Japan having 36 percent of all its connections on 4G by 2017. US and China are going to lead the world in terms of their share of the total global 4G connections with 25 percent and 15 percent share respectively. The growth in 4G with it benefits of higher bandwidth, lower latency and increased security will help the regions bridge the gap between their mobile and fixed network performance leading to even higher adoption of mobile technologies by the end users making access to any content on any device from anywhere more of a reality. Although 4G connections represent only 0.9 percent of mobile connections today, they already account for 14 percent of mobile data traffic. In 2017, 4G will represent 10 percent of connections, but 45 percent of total traffic (Figure 11). Figure 11. 4G will be 10 Percent of Connections and 45 Percent of Traffic in 2017 Currently, a 4G connection generates 19 times more traffic than a non-4G connection. There are two reasons for this. The first is that many of the 4G connections today are for residential broadband routers and laptops, which have a higher average usage. The second is that higher speeds encourage the adoption and usage of high bandwidth applications, so that a smartphone on a 4G network is likely to generate 50 percent more traffic than the same model smartphone on a 3G or 3.5G network. As smartphones come to represent a larger share of 4G connections, the gap between the average traffic of 4G devices and non4G devices will narrow, but in 2017 a 4G connection will still generate 8 times more traffic than a non-4G connection. Trend 7: The Impact of Tiered Pricing-Shake-Up at the Top An increasing number of service providers worldwide are moving from unlimited data plans to tiered mobile data packages. To make an initial estimate of the impact of tiered pricing on traffic growth, we repeated a case study based on the data of two Tier 1 Global service providers from mature mobile markets. The study tracks data usage from the timeframe of the introduction of tiered pricing three years ago. The findings in this study are based on Cisco's analysis of data provided by a third-party data analysis firm. This firm maintains a panel of volunteer participants who have given the company access to their mobile service bills, including KB of data usage. The data in this study reflects usage associated with over 22,000 devices and spans 12 months (October 2011 through September 2012) and also refers to the study from the previous update for longer term trends. The overall study spans three years. Cisco's analysis of the data consists of categorizing the pricing plans, operating systems, devices, and users; incorporating additional third-party information on device characteristics; and performing exploratory and statistical data analysis. While the results of the study represent actual data from Tier 1 mobile data operators, global forecasts that include emerging markets, and Tier 2 providers will lead to lower estimates. Over the period of the nearly 3-year study, the percentage of tiered plans compared to all data plans increased from 4 percent to 55 percent, while unlimited plans dropped from 81 percent to 45 percent. This has not, however, constrained usage patterns. From 2011 to 2012, average usage per device on a tiered plan grew from 425 MB per month to 922 MB per month, a rate of 117 percent, while usage per device of unlimited plans grew at a slower rate of 71 percent from a higher base of 738 MB per month to 1.3 GB per month. However, tiered plans are effective. There is a narrowing of the bandwidth consumption gap between tiered and unlimited data plan connections, showing the general increase in consumption of mobile data traffic due to the increased consumption of services such as Pandora, YouTube, Facebook, and Netflix. Unlimited plans have promoted the adoption of mobile applications and increased web usage through mobile broadband. Tiered pricing plans are often designed to constrain the heaviest mobile data users, especially the top 1 percent of mobile data consumers. An examination of heavy mobile data users reveals that the top 1 percent of mobile users is actually the top 5 percent, because the top 1 percent of users varies each month. For example, for a mobile data subscriber base of 1000 users; the top 1 percent is 10 users. However, the same set of 10 users does not appear in the top 1 percent category in each month; rather, a larger set of 50 subscribers rotates though the top 1 percent. This top 5 percent are the users who have the potential of being in the top 1 percent bracket in any given month and substitute for each other in subsequent months. The trend is due to the nature of consumption of mobile data applications. At the beginning of the 3-year study, 52 percent of the traffic was generated by the top 1 percent. At the end of the three year time frame, the top 1 percent generated 16 percent of the overall traffic per month compared to 18 percent in October 2011 (Figure 12). Similarly, the top 20 percent of the mobile data users generated 79 percent of the monthly traffic in October 2011, but are now down to 71 percent in September 2012. Figure 12. Top 1 Percent Generates 52 Percent of Monthly Data Traffic in Jan 2010 Compared to 16 Percent in Sept 2012 Additional evidence that tiered pricing plans are effectively constraining the top 1 percent of mobile users, and that the growth is being made up by those outside the top 1 percent, is that the usage of the top 20 percent is growing much more rapidly than the top 1 percent (Figure 13). With the introduction of new larger screen smartphones and tablets, reversing the trend displayed in the higher average consumption in the Top 1%. Figure 13. Top 20 Percent Growing at a Faster Rate of 70 Percent Year-to-Year The proportion of mobile users generating more than 2 gigabytes per month has increased significantly over the past year, reaching 18 percent of users towards the end of 2012 (Figure 14). Figure 14. 1 Percent of Users Consume 5 GB per Month and 13 Percent Consume over 2 GB per Month More detail on the tiered pricing case study is available in Appendix C. Babelfish Articles May 2013 - July 2013 15-7-13 Page 77
  • 78. Android Leads iOS in Data Usage At the beginning of the three year tiered pricing case study, Apple operating systems' data consumption was equal to if not higher than other smartphone platforms. However, Android-based devices have now caught up and their data consumption is 38 percent higher than that of Apple devices in terms of megabytes per month per connection usage (Figure 15). Figure 15. Megabytes per Month by Operating System More detail on consumption by operating system is available in Appendix C. Trend 8: User Applications Driving Mobile Data Consumption With the increasing number of smartphones and tablets connecting to mobile networks, attention naturally turns to data consumption trends impacting end-users and service providers. End-users are becoming increasingly knowledgeable about how their usage patterns can be tailored for highest efficiency-while still using the applications they want to use, where and when they want to use them. Service providers are looking to customer data usage trends in order to deploy real-time network performance optimization and to guide strategic investments that will increase network capabilities within a profitable services environment. The Cisco VNI team has begun an analysis of a new source of mobile data consumption data available from the Cisco Data Meter application for Android smartphones and tablets. Cisco Data Meter is a free application that allows users to monitor their mobile data usage and find out which applications are using the most data. As of mid-January 2013, the Data Meter has over 12,000 users across the six global regions tracked by VNI. 80 percent of Data Meter users are on smartphones, 20 percent are on tablets. The data is analyzed in aggregate; individual user data is not accessible. In an assessment of early Data Meter results, key data consumption trends are beginning to emerge. For example, in comparing data consumption over Wi-Fi and cellular networks, the global average for daily data consumption over Wi-Fi is four times that of cellular, averaging 55 MB per day for Wi-Fi, and 13 MB for cellular. For end-users, selecting Wi-Fi over cellular for the majority of their data consumption is an important consideration for staying within the limits of their cellular data plans. For service providers, recognizing that Wi-Fi off-load traffic will only continue to grow has strong implications for their future network planning. Figure 16. Average Daily Wi-Fi and Mobile Data Consumption Another key finding from the data is the type of application generating these data consumption trends. For smartphones and tablets globally, the top three application types (excluding system updates) are the same for both device types, although they differ in percentage rates. As shown in Table 5, video streaming and communications applications such as YouTube, Hulu, and Netflix ranks highest on both device platforms, although data consumption is slightly higher on tablets. Information applications rank second on tablets (Google Maps, PulseNews, Wall Street Journal). Social networking (Facebook, Twitter) ranks higher on smartphone, perhaps because the increased mobility of smartphones allows users to instantly connect socially. Table 5. Top Applications for Data Consumption Smartphone Tablet (Percentage of Data Consumption) (Percentage of Data Consumption) Video/Communications 45% 50% Information 12% 17% Web Browsing 6% 7% Social Networking 7% 3% Music/Audio Streaming 4% 3% Source: Cisco Data Meter, September-December 2012 The Cisco VNI team will continue build upon this initial analysis in future VNI updates. For additional device, network type, and regional data, you can visit the Cisco Data Meter web site. And you can download to your Android smartphone or tablet from Google Play. An iPhone version of the Data Meter application will be coming soon. Trend 9: The (Mobile) Internet of Things Cellular communication between objects, machines, or sensors has led to the growth of M2M connections. These connections are in the form of home and office security and automation, smart metering and utilities, maintenance, building automation, automotive, healthcare and consumer electronics etc.M2M technologies are being used across a broad spectrum of industries. As real-time information monitoring is helping companies to deploy new video-based security systems and hospitals and helping healthcare professionals to remotely monitor the progress of their patients, bandwidth-intensive M2M connections become more prevalent. Among various verticals healthcare M2M segment is going to experience the highest CAGR at 74 percent from 2012 to 2017, followed by automotive industry at 42 percent CAGR. M2M capabilities similar to mobile devices are migrating from second-generation (2G) to 3G and 4G technologies. In 2012, 64 percent of global mobile M2M connections were connected via 2G connectivity, 35 percent via 3G and only 1 percent via 4G. By 2017, only 32 percent of M2M modules will have 2G connectivity, 59 percent will have 3G connectivity and 9 percent will have 4G connectivity (Figure 17). Figure 17. Machine to Machine: Migration from 2G to 3G and 4G While the mobile global M2M modules are going to grow 4.6-fold, a CAGR of 36 percent, from 369 million in 2012 to 1.7 billion in 2017, globally, M2M traffic will grow 24-fold from 2012 to 2017, a compound annual growth rate of 89 percent, with M2M traffic reaching 563 petabytes per month in 2017. M2M will account for 5 percent of total mobile data traffic in 2017, compared to 3 percent at the end of 2012. The average M2M module will generate 330 megabytes of mobile data traffic per month in 2017, up from 64 megabytes per month in 2012 (Figure 18). Babelfish Articles May 2013 - July 2013 15-7-13 Page 78
  • 79. Figure 18. Machine-to-Machine Traffic to Increase 24-Fold Between 2012 and 2017 The Asia Pacific region will lead the M2M category in 2016 with 217 petabytes per month and a CAGR of 91 percent between 2012 and 2017. Western Europe will experience the highest CAGR of 97 percent from 2012 to 2017 with 112 petabytes per month of M2M traffic in 2017. Trend 10: IPv6-Capable Mobile Devices As the telecommunications industry increasingly recognizes the scalability benefits of IPv6 in addressing the global depletion of IPv4, attention is turning to the operational management and efficiency features of IPv6 to support the ever-increasing demand for ubiquitous connectivity to rich content services. This is particularly relevant in the mobile network environment, which is experiencing a proliferation of newer generation devices driving mobile network usage and data traffic growth. In light of these ongoing developments, the Cisco VNI 2012-2017 forecast provides an update on IPv6-capable mobile devices and connections. Building upon our analysis initiated last year the forecast is intended as a projection of the number of IPv6-capable mobile devices, not mobile devices with an IPv6 connection configured by the ISP, or IPv6 mobile data traffic. Focusing on the high growth mobile device segments of smartphones and tablets, we forecast that 73 percent of smartphones and tablets ( 2.2 billion) could be IPv6 capable by 2017 (up from 41 percent or 479 million smartphones and tablets in 2012). This is based on the projection that a significant percentage of these devices will be capable via OS (Android iOS, next-gen RIM, WindowsPhone) as well estimating the type of mobile network infrastructure the device is capable of connecting to (3.5G or higher). Figure 19. Global IPv6-Capable Smartphones and Tablets Reach 2.2 Billion by 2017 Considering all mobile devices and connections landscape, by 2017 we project that 41 percent of global mobile devices will be IPv6-capable, up from 14 percent (1 billion) in 2012. Segments with strong IPv6-capability potential include laptops-which generally have IPv6 enabled by default when connected to a mobile network infrastructure-and machine-to-machine (M2M), due to the utilization of IPv6 to enable the burgeoning number of connections to be deployed in the "Internet of Everything." Figure 20. Global IPv6-Capable Mobile Devices Reach 4.2 Billion by 2017 For a regional view, Asia Pacific will lead throughout the forecast period with highest number of IPv6-capable devices/connections reaching 1.9 billion in 2017. Asia-Pacific and Central and Eastern Europe will have the highest growth rates during the forecast period, at 37.2 percent CAGR and 36.4 percent CAGR respectively. In regards to end-user segmentation, 87 percent of IPv6capable mobile devices/connections will be consumer (3.65 billion) and 13 percent will be business (567 million.) While this analysis is a measure of potential, it does not predict the point a user or ISP will actively enable IPv6 connectivity alongside or in place of IPv4 connectivity. However, service providers around the world are reporting success in deploying the IPv6 networks to support the requirements of an increasing number of devices and connections. The confluence of IPv6 capability, customer demand, and service enablement establishes a strong basis for continued IPv6 deployment and the advantages it has to offer to operators and end-users alike. Conclusion Mobile data services are well on their way to becoming necessities for many network users. Mobile voice service is already considered a necessity by most, and mobile data, video, and TV services are fast becoming an essential part of consumers' lives. Used extensively by consumer as well as enterprise segments, with impressive uptakes in both developed and emerging markets, mobility has proven to be transformational. Mobile subscribers are growing rapidly and bandwidth demand due to data and video is increasing. Mobile M2M connections continue to increase. The next 5 years are projected to provide unabated mobile video adoption despite uncertain macroeconomic conditions in many parts of the world. Backhaul capacity must increase so mobile broadband, data access, and video services can effectively support consumer usage trends and keep mobile infrastructure costs in check. Deploying next-generation mobile networks requires greater service portability and interoperability. With the proliferation of mobile and portable devices, there is an imminent need for networks to allow all these devices to be connected transparently, with the network providing high-performance computing and delivering enhanced real-time video and multimedia. This openness will broaden the range of applications and services that can be shared, creating a highly enhanced mobile broadband experience. The expansion of wireless presence will increase the number of consumers who access and rely on mobile networks, creating a need for greater economies of scale and lower cost per bit. As many business models emerge with new forms of advertising, media and content partnerships, mobile services including M2M, live gaming, and (in the future) augmented reality, a mutually beneficial situation needs to be developed for service providers and over-the-top providers. New partnerships, ecosystems, and strategic consolidations are expected as mobile operators, content providers, application developers, and others seek to monetize the video traffic that traverses mobile networks. Operators must solve the challenge of effectively monetizing video traffic while increasing infrastructure capital expenditures. They must become more agile and able to quickly change course and provide innovative services to engage the Web 3.0 consumer. While the net neutrality regulatory process and business models of operators evolve, there is an unmet demand from consumers for the highest quality and speeds. As wireless technologies aim to provide experiences formerly only available through wired networks, the next few years will be critical for operators and service providers to plan future network deployments that will create a adaptable platform upon which will deploy the multitude of mobile-enabled devices and applications of the future. For More Information Inquiries can be directed to traffic-inquiries@cisco.com. Appendix A. The Cisco VNI Global Mobile Data Traffic Forecast Table 6 shows detailed data from the Cisco VNI Global Mobile Data Traffic Forecast. The portable device category includes laptops with mobile data cards, USB modems, and other portable devices with embedded cellular connectivity. Table 6. Global Mobile Data Traffic, 2012-2017 Babelfish Articles May 2013 - July 2013 15-7-13 Page 79
  • 80. 2012 2013 2014 2015 2016 2017 CAGR Data 313,550 526,838 871,942 1,369,022 2,011,512 2,778,386 55% File Sharing 92,574 142,411 214,889 298,095 369,068 395,342 34% Video 455,216 858,026 1,603,384 2,834,963 4,714,310 7,418,322 75% M2M 23,566 49,973 106,827 198,405 343,620 563,481 89% Nonsmartphones 35,401 47,383 64,187 88,226 122,629 161,249 35% Smartphones 391,024 854,642 1,672,271 2,947,545 4,852,994 7,531,736 81% Laptops 402,877 523,330 708,908 981,904 1,269,683 1,563,861 31% Tablets 29,707 97,035 237,273 474,432 833,633 1,309,324 113% M2M 23,566 49,973 106,827 198,405 343,620 563,481 89% Other portable devices 2,331 4,886 7,576 9,974 15,949 25,881 62% North America 222,378 378,611 630,820 989,712 1,468,040 2,085,309 56% Western Europe 181,397 276,405 426,152 655,201 975,681 1,384,072 50% Asia Pacific 310,394 613,699 1,167,631 2,053,003 3,377,458 5,256,979 76% Latin America 54,907 96,617 179,361 304,239 480,840 722,986 67% Central and Eastern Europe 66,084 116,012 210,841 365,498 577,265 844,887 66% Middle East and Africa 49,747 95,905 182,237 332,833 559,225 861,298 77% 4,700,486 7,438,510 11,155,531 66% 2012-2017 By Application Category (TB per Month) By Device Type (TB per Month) By Region (TB per Month) Total (TB per Month) Total Mobile Data Traffic 884,906 1,577,248 2,797,042 Source: Cisco VNI Mobile Forecast, 2013 The Cisco VNI Global Mobile Data Traffic Forecast relies in part upon data published by Informa Telecoms and Media, Strategy Analytics, Infonetics, Ovum, Gartner, IDC, Dell'Oro, Synergy, ACG Research, Nielsen, comScore, Arbitron Mobile, Maravedis and the International Telecommunications Union (ITU). The Cisco VNI methodology begins with the number and growth of connections and devices, applies adoption rates for applications, and then multiplies the application's user base by Cisco's estimated minutes of use and KB per minute for that application. The methodology has evolved to link assumptions more closely with fundamental factors, to use data sources unique to Cisco, and to provide a high degree of application, segment, geographic, and device specificity. • Inclusion of fundamental factors. As with the fixed IP traffic forecast, each Cisco VNI Global Mobile Data Traffic Forecast update increases the linkages between the main assumptions and fundamental factors such as available connection speed, pricing of connections and devices, computational processing power, screen size and resolution, and even device battery life. This update focuses on the relationship of mobile connection speeds and the KB-per-minute assumptions in the forecast model. Proprietary data from the Cisco Global Internet Speed Test (GIST) application was used as a baseline for current-year smartphone connection speeds for each country. • Device-centric approach. As the number and variety of devices on the mobile network continue to increase, it becomes essential to model traffic at the device level rather than the connection level. This Cisco VNI Global Mobile Data Traffic Forecast update details traffic to smartphones; nonsmartphones; laptops, tablets, and netbooks; e-readers; digital still cameras; digital video cameras; digital photo frames; in-car entertainment systems; and handheld gaming consoles. • Estimation of the impact of traffic offload. The Cisco VNI Global Mobile Data Traffic Forecast model now quantifies the effect of dual-mode devices and femtocells on handset traffic. Proprietary data from Cisco's IBSG Connected Life Market Watch was used to model offload effects. • Increased application-level specificity. The forecast now offers a deeper and wider range of application specificity. Appendix B. Global 4G Networks and Connections Figure 21. Global Heatmap by Year of LTE Deployment Source: Cisco, 2013 Table 7. Regional 4G Connections Growth 2012 2017 Regions Number of 4G Connections Percentage of Total Connections Asia Pacific 24,143,897 Babelfish Articles May 2013 - July 2013 15-7-13 Percentage of Total Connections 0.7% 425,094,836 Number of 4G Connections 8% Page 80
  • 81. Central and Eastern Eurpoe 903,123 0.2% 50,913,035 6% Latin America 326,212 0.0% 51,772,961 6% Middle East and Africa 168,536 0.0% 28,437,977 2% North America 31,329,522 6.8% 264,618,277 31% Western Europe 3,544,454 0.6% 171,013,933 18% Global 60,415,743 0.9% 991,851,020 10% Source: Cisco VNI Mobile Forecast, 2013 Appendix C. A Case Study on the Initial Impact of Tiered Pricing on Mobile Data Usage Tiered Offerings and Mobile Data Traffic Growth The impact of tiered pricing is gradual. Mobile data traffic per user grew 5.5 percent per month, on average (Table 8). Table 8. On Average, Mobile Data Traffic per User Grew 6 Percent per Month Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 All Mobile Users 579 638 638 683 729 729 845 845 947 Mobile Data Users 582 653 653 702 729 749 859 866 983 Jul-12 Aug-12 Sep-12 Average Monthly Growth 986 968 1,031 1,022 1,031 5.5% 1,092 6.0% Source: Cisco, 2013 Traffic in megabytes per month per user in month 12 (September 2012) of the study is significantly higher than month 1 (October 2011) (Table 9). The growth rates of megabytes per month per user for all mobile plans versus mobile data plans are fairly similar. While it is possible that there are early signs of slower growth rates for mobile data due to the effects of tiered pricing, the data available at this time indicates no significant change in the overall growth of mobile data traffic per user. Table 9. Mobile Users Generated Significantly More Traffic after introduction of tiered pricing; Growth Rate Did Not Slow MB per User per Month in Month 1 MB per User per Month in Month 12 Volume? Year over Year Statistically Significant Increase in Growth Statistically Significant Decline in Growth Rate? All Mobile Users 579 1,031 Mobile Data Users 582 78% 1,092 No Yes 88% No Source: Cisco, 2013 The number of mobile data users generating more than 2 GB per month has tripled over the course of the study, and the percentage of users generating over 200 MB per month surpassed 50 percent (Table 10). Table 10. One Percent of Mobile Data Users Consume 5 GB per Month Percentage Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Greater than 5 GB 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% Greater than 2 GB 4% 5% 5% 7% 7% 8% 8% 9% 12% 13% 11% 13% Greater than 200 MB 38% 40% 41% 46% 46% 46% 48% 49% 48% 53% 53% 53% Greater than 20 MB 58% 59% 60% 66% 66% 65% 65% 65% 63% 69% 69% 69% Greater than 1 MB 66% 66% 67% 73% 72% 71% 71% 70% 68% 74% 73% 73% Source: Cisco, 2013 The rapid increase in data usage presents a challenge to service providers who have implemented tiers defined solely in terms of usage limits. Mobile data caps that fall too far behind usage volumes may create opportunities for competitors in the market. Therefore, many service providers are creating more nuanced tiers and data add-ons, such as a separate charge for tethering and hotspot functionality. Such offerings tend to require less vigilance on the part of subscribers than data caps, yet still monetize scenarios that tend to have high data usage. Shared data family plans are being introduced and their effects on overall mobile data traffic are yet to be determined. Mobile Data Traffic Volume by Operating System While the effect of the tiered plan is clear, the average consumption per connection continues to increase for both tiered and unlimited plans Both Android- and Apple-based devices are prominent bandwidth promoters in tiered as well as unlimited plans. Android-based devices led in average megabyte-per-month usage both with tiered and unlimited plans over Apple-based and other devices with mobile operating systems (Tables 11 and 12). Table 11. MB per Month Usage per Mobile Operating System in Unlimited Plans Operating SystemOct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Android 968 1,036 1,002 1,036 1,132 1,068 1,305 1,303 1,365 1,469 1,498 1,610 Proprietary 269 262 258 247 225 220 323 381 642 1,184 1,220 1,300 Babelfish Articles May 2013 - July 2013 15-7-13 Page 81
  • 82. iOS 782 844 824 838 862 843 979 948 1,018 1,015 1,085 1,108 Palm OS 605 651 594 610 703 586 663 805 812 799 771 911 Windows 440 435 347 308 364 388 487 555 694 385 533 481 Linux 90 112 256 264 240 191 301 252 158 148 243 371 Blackberry 184 210 173 173 168 158 182 208 224 257 236 248 Symbian 409 133 143 6 3 0.1 1 1 3 0.4 1 1 Source: Cisco, 2013 Table 12. MB per Month Usage per Mobile Operating System in Tiered Pricing Plans Operating SystemOct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Android 623 741 731 833 831 917 932 971 1,190 1,231 1,024 1,122 iOS 456 539 549 599 586 647 692 673 809 818 793 840 Proprietary 182 199 215 244 261 365 387 436 467 559 603 806 Windows 281 310 280 339 372 389 410 392 432 420 421 438 Palm OS 357 446 321 480 372 327 359 300 418 401 320 434 Blackberry 208 218 240 279 280 283 295 293 359 289 251 304 Linux 24 29 38 17 26 20 33 34 79 100 67 78 Symbian 32 60 40 30 109 37 4 3 3 5 1 4 Source: Cisco, 2013 The Changing Role of the Top 1 Percent of Mobile Data Subscribers As with fixed broadband, the top 1 percent of mobile data subscribers is responsible for a disproportionate amount of mobile data traffic. However, according to the data from this study, this disproportion is becoming less pronounced with time. The amount of traffic due to the top 1 percent of subscribers declined from 18 percent to 16 percent in the 12 months (Table 13). Table 13. Percentage of Traffic by User Tier, Months 1-11 Data Users Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 % Traffic Due to Top 1% 18% 17% 15% 14% 18% 14% 17% 16% 14% 16% 16% % Traffic Due to Top 10% 59% 57% 55% 52% 55% 53% 53% 52% 50% 49% 50% Source: Cisco, 2013 Although the traffic share of the top tiers may be declining, their volumes continue to increase (Table 14). Table 14. Average Traffic by User Tier in MB per Month Average MB per Month 12 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep- Top 1% 7,758 8,371 7,501 7,861 10,658 7,934 11,323 10,294 9,861 13,150 12,279 12,991 Top 5% 3,554 3,785 3,591 3,845 4,399 3,848 4,746 4,534 4,675 5,452 5,303 5,542 Top 10% 2,480 2,674 2,587 2,831 3,109 2,896 3,378 3,278 3,420 3,843 3,746 3,907 Top 20% 1,662 1,810 1,780 1,964 2,107 2,022 2,306 2,257 2,491 2,756 2,619 2,818 Source: Cisco, 2013 Tiered pricing plans have lower megabyte-per-month consumption compared to unlimited plans. However, the overall measures displayed healthy growth with few signs of this growth slowing, and the move to tiered pricing does not appear to have an immediate effect on overall mobile data traffic. Appendix D: IPv6-Capable Devices, 2012-2017 Table 15 provides regional IPv6-capable forecast detail. Table 16 provides the segmentation of IPv6-capable devices by device type. Table 15. IPv6-Capable Devices by Region, 2012-2017 IPv6 Capable Devices by Region (K) CAGR 2012 2013 2014 2015 2016 2017 2012-2017 Global 1,000,112 1,469,383 2,127,324 2,801,190 3,478,615 4,218,685 33% APAC 392,445 589,479 883,395 1,199,465 1,519,353 1,906,083 37% LATAM 93,002 133,642 194,788 257,955 321,554 395,189 34% Babelfish Articles May 2013 - July 2013 15-7-13 Page 82
  • 83. NA 154,928 229,501 312,983 385,241 452,180 520,153 27% WE 186,763 262,326 358,051 444,259 517,176 582,218 26% CEE 64,028 92,731 138,724 192,597 258,842 301,999 36% MEA 108,944 161,705 239,383 321,672 409,510 513,042 36% Source: Cisco, 2013 Table 16. IPv6-Capable Devices by Device Type, 2012-2017 IPv6 Capable Devices by Device Type (K)2012 CAGR 2013 2014 2015 2016 2017 2012-2017 Global 1,000,112 1,469,383 2,127,324 2,801,190 3,478,615 4,218,685 33% Smartphones 458,269 701,653 1,023,750 1,349,327 1,700,506 2,059,758 35% Tablets 20,542 44,356 77,501 116,628 155,009 184,797 55% Laptops 143,390 166,691 197,974 227,740 240,551 249,415 12% Other Portables 22,817 34,918 46,038 52,081 60,616 71,278 26% Non-Smartphones 348,223 504,945 734,534 957,712 1,146,055 1,364,733 31% 6,871 16,820 47,527 97,702 174,745 288,705 111% M2M Source: Cisco, 2013 Social TV and the Network Approach Dilip Venkatachari | June 12, 2013 Not all that long ago, television went through a "dark age" full of cheesy reality shows and dull sitcoms. But as the market has continued to fragment over the last decade, competition has increased the quality of TV programming across the board. With filmquality offerings like "Game of Thrones" and "The Walking Dead" on cable and producers like Jerry Bruckheimer creating captivating shows for the top networks, consumers can now easily justify time in front of their 52" LEDs. But as the market continues to fragment, traditional networks are going to have to fight hard to keep their audiences. While reality TV is still a force to be reckoned with, cable networks like AMC, FX, and HBO have created original series like "Mad Men," "The Walking Dead," and "Game of Thrones" that get overwhelming critical and audience response, and even Netflix has jumped in the game with an original series, "House of Cards," that has been hailed as one of the best shows (not) on TV. TV execs awake eagerly each morning to see the results of their "overnights," but in a media environment where many viewers are engaging with second and third screens while they watch TV, those numbers don't provide the complete picture. These days, audiences are live tweeting or posting on Facebook, sharing real-time reactions and opinions of characters, plot twists, and even commercials. If TV execs want a true picture of how their programming is performing, and how they can improve, it is vital that they also consider the "social overnights." Networks have sought insight into their audiences' likes and dislikes for decades, but TV boxes and focus groups don't cut it anymore. Those approaches offer such a narrow slice of data in today's world where viewers can just download and stream their favorite shows whenever they want, wherever they want, or simply DVR them to watch later. But social networks provide a wealth of data from an enormous population sample that can actually tell networks how their programming is being received. Social data can not only provide a picture of how many people watched last night's episode, but it can also answer whether or not they liked what they saw. TV shows live and die by these metrics, because they translate into, you guessed it, advertising dollars. Imagine you're a network sales rep trying to sell airtime during a particular show to a major consumer brand. Imagine going into that conversation armed with not just viewing data, but actual audience data - their likes and dislikes, their consumption patterns, even how often they watch your show and encourage others to watch. It's not just important data; it's a competitive edge over all the other networks. And the competition is fierce. There's no room for assumptions in this game - for instance, it's easy to assume that reality shows like "The Voice" and "The X Factor" share a similar audience, but social data shows us that these audiences are, in fact, wildly different. Dedicated viewers of "The Voice" prefer country music stars, country music videos on YouTube, and NASCAR. Compared to "The X Factor" audience, they also skew a bit older (35-plus) with a larger female fan base. "X Factor" fans prefer pop music and Billboard Hot 100 artists. They're a younger crowd, and while, like "The Voice's" audience, they watch reality TV, they also like dramas like "Pretty Little Liars," "Revenge," and "The Lying Game." Now, if you're a car company advertising your new minivan, or a producer torn between casting Britney Spears or Carrie Underwood as a new judge, that is an important difference. Harnessing social data to inform TV ad buys and programming decisions can eliminate wasted ad dollars, extend the life of existing TV spots, and boost ratings and viewer loyalty. For example, that car company could gauge response to their ad via "The Voice's" Facebook fan page, begin conversations and drive engagement, and even deliver online ads to that prequalified audience. Social intelligence is key for both TV networks and TV advertisers. For networks, it goes a long way toward predicting viewership and overall response, creating programming guided by your audience's expressed preferences and interests, and attracting advertising revenue through commercials and sponsorship opportunities. For advertisers, it helps ensure that expensive TV spots Babelfish Articles May 2013 - July 2013 15-7-13 Page 83
  • 84. are worth the money by prequalifying audiences and guiding not just placement, but content of ads. The days of the people meter are over; to truly see success in a continually fragmenting TV marketplace, you've got to boost your social IQ. Kantar, TNS Want TRA's Case Against Rapid View Service Dismissed by Steve McClellan, Wednesday, Jun 12, 2013 Two years after being sued by TRA Global for patent infringement, misappropriation of trade secrets and other charges related to TRA‘s proprietary research service that matches TV viewing with consumer purchase patterns, WPP research companies Kantar and TNS have asked a New York court to summarily dismiss the case before it goes to trial. The WPP companies argued in their brief, filed last week with the U.S. District Court in Manhattan, that TRA has come up with no evidence after two years of what it termed ―aggressive discovery‖ to justify continuing the case. The legal dispute began in mid-2011 shortly after Kantar launched a competing service to TRA‘s called RapidView. Kantar launched RapidView in spring 2011, just a few months after talks between the parties considering a potential purchase of the TRA offering by WPP broke off. Early on in the dispute, the parties were ordered to the mediation table by the judge overseeing the case—U.S. District Judge Shira Scheindlin. But those talks proved fruitless, and the case continued to wind its way through the courts. In September 2011, TRA lost a motion for a preliminary injunction that would have barred Kantar from offering the RapidView service until the court case was resolved. Various stages of discovery have been ongoing since then. Last summer, TRA was acquired by TiVo. ―TRA is in no better position‖ now than it was when its bid for preliminary injunction was denied, Kantar argued in its motion-fordismissal papers. The WPP company argued that it ―independently developed [RapidView] based on its analogous ‗single-source‘ product in the U.K. that pre-dated TRA‘s very existence and that TRA‘s co-founder has admitted was the world‘s ‗first‘ such product.‖ Kantar also argued that TRA has offered no evidence that it ―used any asserted trade secret … By failing to offer any expert analysis of use, TRA has not only failed to meet its burden but has broken its promise to the Court to ‗provide an expert report explaining how plaintiffs ‗used' TRA‘s trade secrets.‖ TRA has not yet replied to the motion to dismiss. Judge Scheindlin hasn‘t ruled on the merits of the Kantar motion but did rule that it contains some procedural violations that Kantar has to clean up by the end of the week. Otherwise, the motion will be tossed, Scheindlin ruled. Read more: http://www.mediapost.com/publications/article/202202/kantar-tns-want-tras-case-against-rapid-viewser.html?edition=61064#ixzz2W1mVnfzS Millennial Viewers Prefer Cross-Platform TV by Wayne Friedman, Wednesday, Jun 12, 2013 A growing number of millennial TV consumers are committed to a ―broadband-only‖ existence -- all of which could spell some trouble for traditional TV content/channel owners. The new study says 13% of 18- to-34-year-olds -- some 8.6 million -- are broadband-only customers. The research is from the soon-to-debut Pivot cable network, owned by Participant Media, which will target millennial viewers. The study was released at the Cable Show this week in Washington, DC. More young consumer TV movements may be on the way. Many millennial ―cross-platformers‖ are looking to stray from the pay-TV services altogether -- around 17.9 million 18-34 TV consumers and another 32 million 18-49 consumers, says the study. Research shows that 58% of broadbanders would consider subscribing to TV for a bundle of networks from their broadband provider, streamed live and on-demand. On demand services is a major lure: 92% of respondents ages 18-34 want video-ondemand streamed everywhere and anywhere and 94% would feel more positive about networks that offer VOD streamed everywhere. Some 86% of millennials want live streaming everywhere; 87% of at-risk cross-platformers would consider keeping their pay TV subscriptions if offered programming streamed live and on-demand anywhere/everywhere; 89% of cross-platformers would be more likely to keep their cable, satellite, or telco TV subscription if they were offered TV networks/channels that provided VOD streamed everywhere. Still, there are loyalists. Fifty-five percent intend to keep pay TV primarily because they like the option of watching live TV, while 44% of pay-TV-craving broadbanders miss their favorite live shows. Only 19% say they miss live sports. The study looked at those that are ―broadbanders," ―cord cutters‖ or ―nevers‖ -- those who do not currently subscribe to pay TV services but have broadband/Internet access and watch TV programming -- and ―cross-platformers," consumers who use both traditional TV and new digital TV platforms. The study came from an online survey of 2,500 adults 18-49 and 310 adults 18-34. Read more: http://www.mediapost.com/publications/article/202194/millennial-viewers-prefer-cross-platformtv.html?edition=61064#ixzz2W1kcKVot Babelfish Articles May 2013 - July 2013 15-7-13 Page 84
  • 85. Ideas for Getting Started With Measurement Planning Adam Singer | June 10, 2013 At the past few events where I've spoken to marketing practitioners, I continue to make the statement that it has never been a more exciting time to be a marketing or public relations professional. Why so exciting? We've never had so many tools and tactics to reach our target audiences at our fingertips. We also have an unprecedented amount of data to shift our execution from "gut feel" to data-driven. But before we can dive into new tools and start to use data to improve our programs, a critical yet frequently missed first step is to conduct measurement planning. Today I wanted to share thoughts on just some of the key actions your organization (or agency) should conduct during the planning process. Outline What You Want to Measure, Both Objectives and KPIs This is really the first step: what does success look like to your business? Get as specific as possible. If you are reading this, you're probably in marketing and your answer was likely revenue generated from marketing initiatives. If you said yes to this, awesome, you're spot on and your marketing professor is likely applauding you. Now, go further: what tactics do you plan to implement to generate revenue, and how do they accomplish this? What does success look like (X percent increase in Y tactic)? Create a matrix outlining it, along with the key performance indicators (KPIs) that map back to revenue. For example, more (relevant and engaged) website visitors leads to more micro and macro conversions, which leads to more revenue. Or, a larger (opt-in) email list of excited users equals more click-throughs to landing pages for un-missable content, giving your sales team more prospects to work with. Or, a larger community in social leads to more re-sharing and clicks of your content back to your social hub, which leads to improvements across organic marketing metrics. Outlining metrics is key, as it will guide your use of setting goals in analysis tools. As Avinash likes to say, "If you ain't got goals, you ain't got nothin'!" Before Implementing Any Tools, Ask Tough Questions Until you know precisely what it is you wish to accomplish, it is premature to start testing out tools or shopping vendors. Different tools have different strengths and flexibility (not to mention costs and user preference). There is a lot that goes into selection of the right measurement tool, but really it comes down to the questions that matter to you first: can the tool easily (and in an automated fashion) measure the metrics you care about? Can you get the support you need (or for free tools, are there qualified consultants available)? Does the tool integrate with your other initiatives/digital systems (web, app, POS, and beyond)? How easy is it to customize reports and segment data? Be sure to ask all the tough questions (both internally with your own analyst and externally with a vendor) first. Have a Reporting/Analysis Plan With Specific Dates/Deliverables Now that you have your objectives down, your marketing plan complete, the KPIs associated with your programs established, and you know what tools you're planning to use and how you're going to integrate them, you need a plan to actually start using the data. Ideally, you have an analyst resource on your team focused on delivering the right reports, insights, and actions to their appropriate stakeholders and evangelizing data to those in your organization. This last point is important: it's still not enough to assume people will act on data unless you make it clear what actions your team members should take and get everyone excited about actually implementing recommendations. Data-driven decision-making is undoubtedly the future, but it's still new territory for many. Having a plan and process here will help everyone get comfortable and value metrics appropriately, and the right leadership is key. While the above is just a primer on measurement planning and the actual steps you take will vary based on your organization and resources, the point is planning is the key first step in measurement. As simple as it may be to actually implement a tool, it's ensuring you use it effectively as an ongoing part of your marketing that makes the difference. Online video can challenge TV THETFORD CENTER: Marketers are increasingly looking at online video as an alternative to television, as many feel it can achieve as good or better levels of engagement and awareness for the same cost. Marketing Charts cited research from AOL which surveyed 772 respondents from leading brands, media and creative agencies in the UK, Europe and North America. It found that 58% thought they could get a better share of engagement with online video than with TV for the same investment. A further 15% said online video would achieve the same amount of engagement. In terms of awareness, respondents were a little more cautious, but 47% still felt online video could generate greater awareness than TV for the same investment, while 24% said it would match TV. Marketers are backing their beliefs with hard cash, as 73% of the survey said they had increased their investment in online video in the past 12 months. TV and display budgets were the most affected as money was redirected from these into online video. An earlier survey by Digiday and Adap.tv found a similar pattern of TV and display budgets being raided to fund online video, but it also noted that 80% of buyers regarded online video as a vital complement to TV and suggested that "the cannibalisation of display may proceed even more rapidly than that of television". Targeting (87%), reach (85%), content (81%) and price (80%) were the most important factors cited by respondents when planning an online video campaign. They also indicated that increased spend in the future would be driven by better audience targeting (73%) and measurement (67%). As to specific formats, 73% of respondents planned to spend more on pre-roll, and 53% were looking to increase spend on social. Data sourced from Marketing Charts; additional content by Warc staff, 12 June 2013 Babelfish Articles May 2013 - July 2013 15-7-13 Page 85
  • 86. Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31520&Origin=WARCNewsEmail#J6fyQyzgVjMEvZ87.99 Stop Starving Online Video And Start Feasting On ROI by Mukund Ramachandran , Tuesday, June 11, 2013 Online video consumption continues to skyrocket. Americans watched 38.8 billion online videos last month. On average, viewers spend 40 minutes a day doing it. Is it any wonder that Netflix just bowed Season 4 of ―Arrested Development‖ in its entirety on the Web? Are you surprised that Yahoo is in talks to buy Hulu? Anything shocking about Amazon announcing 5 web-first original series? I spent time at this year‘s New Fronts where 18 companies announced their video slate for the year. No one was surprised. And yet online video advertising makes up a tiny fraction of marketer‘s overall digital budgets. According to eMarketer, of the $37 billion spent online last year, only 6% (or $2.3B) was spent on digital video. It‘s even worse when you compare online video with TV advertising. U.S. marketers spent $65 billion on TV advertising last year. Online video‘s $2.3 billion represents just 3.4% of the overall video pie. Does anyone except the TV industry think that still makes sense? Should 96.6% of your video budget be going to TV? A thought experiment But facts are facts – 96.6% of the money *did* go to TV last year and in that sense it‘s inarguable. But what if you didn‘t operate under the burden of past ―best practices?‖ What if you could start planning with a clean sheet of paper? Would you spend 96.6% of your video money on TV today? Let‘s look at some facts. Facts that argue for TV • Scale. Lots and lots of scale. The average American still watches about five hours of TV every day. Okay, here‘s another way to think about it. If you live to be 80, you‘ll spend more than 16 years in front of the TV. • Bigger screens. Whether you‘re a showrunner or an advertiser, you can do a lot with a big canvas -- and today‘s TVs are bigger, and the home theater experience is better, than ever. That means TV advertising has a better chance of holding your attention in today‘s attention-fractured landscape. • Great content. A lot of people say we‘re living in one of Television‘s golden ages – from ―Mad Men‖ to ―Modern Family,‖ there is a lot of great TV out there to watch. Facts that argue for online video • Ad Skipping: DVR‘s are now present in 44% of households -- up 80% from 2007. If you are a marketer and are reading this article, think about your own viewing habits. Odds are, you have a DVR in your house and you skip ads when you are catching up with six episodes of ―Modern Family‖ over the weekend. • Multi-Screening: According to Google, 77% of TV viewers use another device when they are watching TV. Even if that viewer isn‘t skipping ads, multi-screening as a trend is here to stay. There are 2 types of multi-screening: sequential usage – where the user skips from one screen to another, and simultaneous usage – where the user engages with multiple screens at the same time. TV viewing, which is inherently passive, is particularly susceptive to the second trend of simultaneous usage. • Eyes: If you follow the growth in online video consumption, there is no shortage of statistics to prove the trend. My vote is for this: Just the past month, more than 180 million Americans watched some online video in the last month • Demographics: TV execs love to highlight ―5 hours per day per viewer on average.‖ But like the old joke says, a TV exec is a person who, with his head in an oven and his feet in an ice bucket, will say that on the average he feels fine. What do I mean? Advertisers who want to reach the coveted A18-49 need to rethink their exclusive devotion to ―New Girl‖ and ―How I Met Your Mother. ― This chart from Nielsen shows the demo composition of consumers of various channels. A 18-24 A 25-34 A 35-49 Total: A 18-49 Traditional TV 7% 12% 21% 40% On the Internet (Computer) 10% 17% 27% 54% On the Mobile Phone 24% 28% 24% 76% • Great Ads: You‘re thinking, ―Come on. This is ridiculous.‖ I‘m serious. Video ads are getting better in part because we‘re building creative that is native to the medium. Case in point: Interactive pre-roll that allows viewers to stop, start, explore, expand, investigate, customize, colorize, and more the product being advertised. Try doing that with an analog: 15 or :30. So where do I net out? Don‘t get me wrong. I am not arguing against TV spend at all. But 96.6%? It is clear that consumers have really moved on, and online video presents better advertising options. When will advertisers catch on? The Gamification Of Email by Kara Trivunovic, Tuesday, June 11, 2013 Babelfish Articles May 2013 - July 2013 15-7-13 Page 86
  • 87. I've recently seen a few marketers introduce gaming into their email programs. You can use this technique to effectively drive engagement and motivate subscribers to seek out ways to tap the value of your messages. And, since you are awarding points for behaviors you already track, like opens, clicks, and conversions, the concept can be very straightforward to employ. If you currently use gamification, or plan to begin, here are some things to consider: Is your customer motivated by gamification? If you are a gaming brand, this answer should be relatively easy, but if you are not, this is something you need to consider very closely. One way to think about email gamification is as an extension of an existing loyalty program. You could use it as an additional way for program members to earn points. But remember, not all consumers care to earn points; for some, the rules of engagement and caveats to earning and redeeming points can become a hindrance. What does the customer stand to gain? There are typically three major categories of motivation for a consumer: recognition, savings, and altruism. 1. Recognition can be achieved by awarding badges or otherwise acknowledging status based on achievement of specific activities. Showcasing your most active customers in your newsletter, or even providing early access to inventory or content in advance of a public release, are common ways of rewarding with recognition. Recognition is a reward that also often comes at little cost to the brand, which can help when it comes to getting buy-in from your organization. 2. Savings may be the motivator marketers use most often in their email marketing messages today, but allowing customers to earn savings based on email behavior can be complex. Make sure the reward is considered carefully in ROI calculations, so while it motivates the customer it is still profitable for your brand. 3. Altruism, giving back to others, is another way to motivate. The decision to use altruism is often driven by your company's brand promise or your customer base's demographic. Allowing customers to exchange points for donations to charitable causes can be both a motivator for the customer and the brand, making everyone feel good. Use a two-step process to determine what will motivate your customers. First, actually ASK them what would motivate them most. Be specific in the choices you provide and ask them to put them in priority order, from most to least motivating. Then test the top three motivators with a sample set of email subscribers against a control group, over a period of time, to determine what will best drive the desired behavior. How do you weight the point scale? Break out your calculator on this one and dive into some hypotheticals to determine how you want your customers to earn points. If you have an existing loyalty program in place it may be a bit easier to determine, but you will need to consider the impact on points redemption either way. First, decide what engagement behavior you are trying to motivate: open, click, conversion, time on site beyond the click? Next, define how you want to affect that metric; say, for example, your open rate is currently 30% and you want to increase it by 5%. Last, assign points to the behavior. Maybe it is .25 points for each open, or perhaps it is one point. This is something you should test, but weigh the behavior, looking at the importance of the action as it relates to the bottom line. Gamification isn't for every brand, but it can be a fun and effective way to drive engagement with your email programs. Imagine a scenario where all your subscribers receive one point for every open, two points for a click and five points per conversion on an item featured in the email you sent them. Picture allowing them to use all those points for free shipping, or 15% off the next purchase... .Hmm, I smell a reengagement strategy coming on! Ten surprising reasons you're tired National Features June 10, 2013 9:57AM Open wide! These sleepy people were captured snoozing on public transport. Picture: SleepyCommuters/Twitter THE reason you're always tired might actually be something you'd never suspect and could easily fix. Here are ten things to check: 1. You‘re under-stressed We all know that stress can lead to poor sleep and fatigue, but research shows that being too laid back can actually make you feel tired and lethargic. It seems that in short bursts, stress will not only stimulate you, but also help to boost your immune system. 2. You‘re buzzed If you need to catch some zzz‘s, turn off your phone. Findings at the Karolinska Institutet, Sweden, showed that using a mobile phone an hour before heading to bed may interfere with your sleep patterns leading to less time in the deeper stages of sleep. ―All electrical gadgets should be kept out of the bedroom,‖ advises associate professor Delwyn Bartlett, from the Woolcock Institute‘s Sleep and Circadian Group. 3. You‘re dehydrated According to chiropractor Dr Simon Floreani, you need to drink one medicine-sized glass of water (30ml) daily for every kilogram you weigh to stay properly hydrated. 4. You‘re out of balance ―When your body‘s out of balance it puts stress on isolated areas,‖ says myotherapist and director of The Wellness Club, Allan Mourad. ―This places pressure on organs, such as your liver and kidneys, which can be extremely draining.‖ Babelfish Articles May 2013 - July 2013 15-7-13 Page 87
  • 88. 5. Your liver is lacklustre According to Medical Scientist and Naturopath Annalies Corse, an under-functioning liver could be responsible for unexplained exhaustion. ―The liver is the main detoxifying organ in our body. If it‘s overwhelmed or working incorrectly, your body will feel sluggish, achy and lethargic,‖ she says. 6. You need some C ―Vitamin C is critical to your health when you‘re experiencing fatigue as a result of prolonged stress, illness or surgery,‖ says Corse. ―Generally, adrenal glands support us during times of stress, but these glands must receive vitamin C from our diet in order to keep fatigue and stress at bay.‖ Vitamin C is abundant in vegetables and fruits. The recommended daily intake for adults is 45mg for adults (60 mg during pregnancy, 85 mg while breastfeeding). Good sources include: Apples, asparagus, berries, broccoli, cabbage, honeydew, watermelon, cauliflower, citrus fruits (lemons, oranges), kiwi, fortified foods (breads, grains, cereal), dark leafy greens (kale, spinach), red capsicum, potatoes, and tomatoes. To get 45 mg you need to eat one banana 10.3mg, one apple 12mg and one tomato 25mg. 7. And an M ―Low magnesium levels are one of the most overlooked sub-clinical nutrient deficiencies in the western world, and often result in symptoms similar to chronic fatigue syndrome,‖ explains Corse. ―Magnesium is critical to energy production, but becomes easily depleted by excess alcohol and the oral contraceptive pill.‖ Adults need 310 to 420 mg/ day for example, 6 brazil nuts (107mg), 100gram tuna (64mg), one cup plain yoghurt (42mg), half cup broccoli (16mg), one cob of corn (31mg), and one cup of green beans (99mg). 8. Your alarm clock is wrong ―Having the same waking time each day is more important than the time you go to bed, as it communicates the end of your sleep cycle to your brain and body,‖ says associate professor Bartlett. That‘s why sleeping in for more than an hour on the weekend can make you feel jetlagged. The perfect waking time? According to research, 7.22am is ideal. 9. You've got an underactive thyroid Your thyroid sets your metabolic rate (how quickly or slowly you burn food). If you‘ve been feeling tired, sensitive to cold, forgetful and have gained weight, ask your doctor for a thyroid test. 10. You‘re exercising too little - or too much Certified personal trainer Pete Tansley, owner of Priority 1 Fitness, says that ―exercise releases key endorphins - serotonin and adenosine - which help regulate your sleep rhythms.‖ Too little exercise and you miss out on these. But too much exercise, and particularly exercising at night, can lead to higher stress levels. ―Exercise elevates the stress hormone cortisol, leaving you feeling wiped out,‖ explains Tansley. ―Steer clear of alcohol after exercising, and keep to a relaxing routine - stretching; a warm bath with relaxing music - to help set your body up for sleep.‖ Read more: http://www.news.com.au/lifestyle/health-fitness/surprising-reasons-youre-tired/story-fneuz9ev1226661162169#ixzz2Vu1uE17k Omnichannel is the future NEW YORK: Technological advances are forcing advertisers and brand owners to adopt omnichannel marketing approaches in order to engage with consumers across multiple screens, a new survey has argued. Taking Cues From the Customer: 'Omnichannel' and the Drive For Audience Engagement, a white paper from the Interactive Advertising Bureau and Winterberry Group based on a survey of more than 120 senior executives from marketers, agencies, publishers, technology developers and solution providers, examined the origins and likely evolution of omnichannel customer engagement strategies. It found that the great majority (91.7%) of respondents agreed that such strategies held great value, and most (82.4%) intended to invest in them in the near future. "There is no question that the advertising ecosystem sees omnichannel strategies as being of incredible value in reaching and retaining customers," said Patrick Dolan, Executive Vice President and COO, IAB, as he claimed the report highlighted omnichannel as "the wave of the future". Respondents thought that the major benefits of an omnichannel approach would be in brand identity and recognition. But they also expected that their attempts to move in this direction would be hampered by gaps in supporting technologies and internal business processes. Omnichannel "holds terrific promise," said Jonathan C. Margulies, managing director, Winterberry Group, but he warned that practitioners would need to transform their traditional methods and competencies. "If the industry can coalesce with an organisation such as the IAB to develop infrastructure priorities and set best practices for working with brands, omnichannel will play a significant – and financially beneficial – role for clients, agencies and publishers alike," he declared. The report pointed to several areas that marketing and publishing stakeholders should address in order to fully tap into omnichannel's rewards, including the development of a senior role for omnichannel strategists, in order to ensure accountability and coordination of the customer decision making process, product development, pricing and other critical functions. Data sourced from IAB; additional content by Warc staff, 11 June 2013 Babelfish Articles May 2013 - July 2013 15-7-13 Page 88
  • 89. Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31515&Origin=WARCNewsEmail#lbu2hwH3bE5uxhMG.99 CMO Council study: Content has significant impact on buying process June 3, 2013 - 11:16 am EDT Monday, Jun 10, 2013 Palo Alto, Calif.—A new study by the Chief Marketing Officer Council found that 87% of b2b buyers said online content has either a major or moderate impact on vendor preference and selection. The study, ―Better Lead Yield in the Content Marketing Field,‖ was based on an online survey of more than 400 b2b buyers, conducted in April in partnership with NetLine Corp. According to the study, the most valuable sources of online content cited by b2b buyers when researching products and services are professional associations and online communities (47%); industry organizations and groups (46%); online trade publications (41%); seminars and workshops (41%); and trade shows (35%). The types of content b2b buyers value most include professional association research reports and white papers (67%); industry group research reports and white papers (50%); customer case studies (48%); analyst reports and white papers (44%); and product reviews (40%). B2b buyers said the characteristics they most value in online content are breadth and depth of information (47%); ease of access, understanding and readability (44%); and originality of thinking and ideas (39%). The characteristics buyers most dislike in b2b online content include too many requirements for downloading (50%); blatantly promotional and self-serving (43%); and nonsubstantive and uninformed content (34%) - See more at: http://www.btobonline.com/apps/pbcs.dll/article?AID=/20130603/ADVERTISING13/306039998/cmo-council-studycontent-has-significant-impact-on-buying-process&lf1=221483221e920418017754e9118946#sthash.hwRJ7Xml.dpuf Will NSA Revelations Bring Added Privacy Pressure To Ad Biz? By Wendy Davis Monday, June 10, 2013 The recent revelations that tech companies are sharing information about users with the National Security Agency raises a host of unanswered questions, but one of the most pressing for the ad industry is whether the news will intensify efforts to regulate how tech companies can collect and use data. The answer isn't immediately obvious. On one hand, some consumer advocates and digital rights groups will say that consumers' privacy interest is the same regardless of who is collecting information. In other words, privacy advocates will say that people should be able to read an article about mortgage refinancing, or cancer research, or the history of revolutions, without having that information compiled into a massive database -- regardless of whether the database is maintained by the NSA or DoubleClick. On the other hand, the ad industry probably will say that there's far less reason to be concerned about its collection of data than data-mining by the government. That is, industry groups will reiterate the argument they've been making for more than a decade -that the worst possible thing that can result from data-driven ads is that people will get ads for products they don't want. That's in sharp contrast to the government, which can use the same data in order to decide which people to investigate as potential criminals. And, while it's probably unlikely that the recent surveillance revelations will lead people to stop going online, the news could spur calls for more information from Silicon Valley. Even if companies aren't allowed to disclose all governmental requests for data, they certainly could have done a better job at responding to last week's news about surveillance. So far, many Silicon Valley companies involved with the NSA issued statements that, at best, omit some important terms. Consider, on Saturday, Yahoo's general counsel said the company does not ―voluntarily disclose user information.‖ But security researcher and civil liberties advocate Christopher Soghoian quickly pointed out that the NSA's PRISM program doesn't call for voluntary disclosures. ―By falsely describing PRISM as a voluntary scheme, Yahoo's general counsel is then able to deny involvement outright. Very sneaky,‖ Soghoian writes Xaxis' Lesser: The Sun Never Sets On WPP's Trading Empire by Joe Mandese, 3 hours ago Most agency trading desks boast about their real-time trading capabilities, but GroupM‘s Xaxis now literally trades throughout the day, thanks to a global expansion that has given it coverage across the planet. ―Everywhere WPP is developing, Xaxis will be in that market, as well,‖ Xaxis CEO Brian Lesser vowed during a presentation at WPP‘s Digital Day last week. Xaxis already trades in 22 global markets, is represented in every major region with the exception of the Middle East and Africa, which are coming soon, he said. That‘s fitting, when you consider that Xaxis‘ technology roots come out of WPP‘s aptly named 24/7 division, which has invested $1 billion to date to build the technological infrastructure that Xaxis relies on. But technology is only one element that differentiates Xaxis from other agency trading desks. Lesser said it‘s technology combined with proprietary software, data and people that makes it unique. In fact, he noted that while Xaxis currently has more traders (50) than any other trading desk, it actually has more analysts (60), and that makes it more of an insights company than a media procurement firm. Babelfish Articles May 2013 - July 2013 15-7-13 Page 89
  • 90. In terms of trading, Lesser said Xaxis also is differentiating itself from other agency trading desks by downplaying its use of auction models in favor of leveraging its -- and those of GroupM sister shops Mindshare, MEC, MediaCom and Maxus -- relationships with premium media suppliers to utilize programmatic technology to serve ads to the most precious inventory and audiences possible. ―Media is a very important part of our equation and one of the ways we differentiate ourselves from our competitors,‖ Lesser boasted, ticking off strategic relationships premium publishers loath to sell through exchanges, such as The New York Times, CNN and the FT. ―A lot of our business is actually one-to-one relationships with publishers,‖ he asserted, adding, ―We distinguish ourselves by not only buying impressions at auction.‖ In fact, Lesser even placed RTB at the bottom of the chart he used used to illustrate Xaxis‘ structure to WPP‘s audience, and instead played up things like exclusive access to media inventory, as well as data, including proprietary data pooled from clients in WPP‘s ―Data Alliance‖ or directly from the GroupM agencies. Lastly, he talked about Xaxis diversification strategy, including its moves into out-of-home (Xaxis Places), audio streaming (Xaxis Radio), and of course, video. He even showed two case studies -- one for a CPG marketer and another for a new credit card -- that shifted a big chunk of TV ad budgets into online video to greater success. Interestingly, Lesser said nothing about moving directly into TV, even though parent GroupM has a strategic investmetn in addressable TV ad developer Invidi Technologies. Hey, gotta save something for WPP‘s next Digital Day, right? But if you really want to know what differentiates Xaxis, it is its focus on direct premium relationships with media suppliers, not realtime bidding. ―This is one of our fastest growing products and, in fact, makes up a larger portion of our business than our real-time buying,‖ Lesser disclosed. Which makes me wonder what all the fuss over Xaxis role as an arbitrager actually is. But you know, Lesser didn‘t bring that role up. Read more: http://www.mediapost.com/publications/article/202145/xaxis-lesser-the-sun-never-sets-on-wppstrading.html?edition=61010#ixzz2VqwioPZ7 STUDY: The State of Social Marketing – Vision, purpose and value drive a new era of digital engagement June 10, 2013 In an era when media is largely created and broadcast by the few to the many, social media emerged to facilitate the co-creation of media in addition to creating it. While difficult to trace its origins, the philosophy of social media dates back to the mid-1990s. It wasn‘t until the mid 2000s however, that businesses would encounter the idea of a new medium where brand democracy prevailed over brand dictatorship. Suddenly the voice of the customer took on an entirely new meaning and the promise of customer-centricity and engagement was thrust into the spotlight. But after all these years, businesses remain confounded. Even though most are experimenting with social media, how it improves relationships while impacting important business metrics is persistently elusive. Here we are in 2013, firmly planted in the notion that social media is critical to business and customer relationships. Yet, experts to this day wrestle with the ability to tether intuition with data and creativity with business acumen. In a connected economy where information becomes a powerful currency, social data will only help you benchmark where you are to help visualize where you could be. The relationship between aspiration and reality now become a more informed set of goals and objectives driven by benchmarking against the industry and more importantly, benchmarking against possibilities. Each year, the Pivot team studies the evolving social landscape. For our 2012 -2013, "State of Social Marketing" report, we surveyed 181 social marketers and digital strategists who represent agencies and brands. What we learned is that the fundamental drivers for social media have radically transformed. What's clear however is that social media and the allure of conversations matter. At the top of the list, brands and marketers agree that conversations lift both brand and relevance. It's the new stimulus and relevance is appropriate to the matter at hand. Babelfish Articles May 2013 - July 2013 15-7-13 Page 90
  • 91. When asked of the benefits for social media, 2013 goals largely matched 2011 expectations with the exception of sales and lead generation. As you can see, primary goals fluctuated over the years, shifting toward a more customer-centric approach. Customer engagement, awareness, influence, satisfaction, and service top 2013 social goals whereas sales was off the charts in 2011. Babelfish Articles May 2013 - July 2013 15-7-13 Page 91
  • 92. Over the years, social marketers took a publish first ask second approach in social strategies. Assumptions outweighed intelligence. But in 2012, businesses started to realign customer expectations with social media strategies. In 2013 planning, social strategists now believer exclusive content is more important than customer service (2011). The Top 10 Assumptions of Social Consumer Expectations 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Exclusive content Insight to make decisions (Moments of Truth) Customer service Be part of a community Deals/Promotions Learn about new products Ability to provide feedback for improvement (Influence Loop) Inclusive experience in social absent of websites Loyalty/Rewards for engagement Social commerce So if we know social is important, what‘s holding social marketers back this year? Planning for 2013 based on 2012 and 2011 hurdles remain close to constant. Babelfish Articles May 2013 - July 2013 15-7-13 Page 92
  • 93. Top 7 Planning Hurdles for 2013 1. 2. 3. 4. 5. 6. 7. Budget A clear vision on outcomes Executive skepticism Lack of metrics Lack of understanding of benefits Lack of cross functional support Absence of vision and overall strategy for the brand Part of the planning challenges reflects a fire, ready, aim as opposed to a ready, aim, fire philosophy around social media. Planning is often campaign or engagement centric without a deeper understanding of needs, expectations and of course customer behavior. Even in the absence of clear and present business objectives and outcomes, executive buy in has risen. In 2013, businesses will evolve from a more skeptical or cautious view of social into something that explores rhyme, rhythm, and reason. The lineup of usual suspects in social media hasn‘t changed much in the last year with the exception of Pinterest rising into the fourth spot in the top 5 social networks brands are paying attention to. This move comes at the expense of Google+. Babelfish Articles May 2013 - July 2013 15-7-13 Page 93
  • 94. How will organizations measure social media success in 2013? The answer is engagement. Social media however is only part of a larger digital movement that‘s impacting business from the inside out and the bottom up. This is perhaps the most important part of this study and here it is buried. Regardless of your opinion regarding the word ―digital,‖ the bigger trend is digital‘s disruption on business and overall consumerism. When asked what keeps marketers up at night, the list was great. At the top of the list was the mobile experience. At the core however, every trend was related to customer engagement across all channels. I dare not say omnichannel as that assumes a one-size-fits-all mentality. Channels and screens relate to the context of the individual within the dynamic customer journey. As such, those trends that scored ―5s‖ signify the great impact of digital disruption. Top 10 Disruptive Digital Trends 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Mobile experience Content management Digital customer experience (The Experience) Brand journalism New metrics/ROI Integrated experiences Business intelligence Big data Social CRM Social media optimization Babelfish Articles May 2013 - July 2013 15-7-13 Page 94
  • 95. A prescient pillar of leadership takes more than intuition. It takes research balanced with ahuman algorithm. You can‘t make decisions about technology and behavior if you are not part of the very culture that‘s disrupting your business. Nor can you open engaging touch points if you‘re unfamiliar with the new journey of decision-making. Yet even today, businesses are largely making assumptions based not on the expectations or behavior of customers but instead the best practices of their peers. In 2011, 77% of brands believed they understood their social customers, yet only 35% did the work to better understand them. In 2012, the number of businesses that had a clear picture of their social customers dropped to 62% In 2011 and 2012 businesses largely ignored their customer‘s digital needs and actions with 53% and 54% respectively not attempting to explore the differences between what they think they want and what they really want. When in Doubt…Begin! Charlene Li and I published an Altimeter Group report earlier this year that found businesses simply weren‘t aligning business goals with social media objectives. To realize the promise the promise of social media however, strategists will have to make the effort to demonstrate business value, consumer trends, and the ability to use disruptive technology to disrupt competition rather than be disrupted by it. This year, realize that your greatest assets are both humility and aspiration. Your ability to see things differently will in fact drive you to do things differently. By applying a new philosophy and methodology to your digital approach will naturally make your business and your overall strategy…meaningful and social. This is after all, about experiences now more than ever. 1. 2. 3. 4. Benchmark against best in class, not just the competition Research customer behavior and expectations Consider existing and potentially new business objectives – align business and digital strategies accordingly Apply needs and expectations within engagement and content strategies Babelfish Articles May 2013 - July 2013 15-7-13 Page 95
  • 96. 5. Design dedicated yet united experiences across digital channels considering the context of behavior within each screen 6. Create a path of least resistance that maximizes the capabilities of each platform and screen 7. Re-imagine your vision and value for how disruptive technology enables a more meaningful mission and purpose 8. Embrace data science and digital anthropology to stay ahead of customer trends and the competition 9. Plug in to your customer experience as it exists and uncover points of friction…then fix it to provide a seamless journey from the inside out 10. Listen. Learn. Engage. Adapt. A QR Code Walks Into A Zoo... by Steve Smith, Monday, Jun 10, 2013 My first encounter with using gadgetry to enhance a moment or place was as a kid in the New York Metro area, pestering my parents to take me to the Bronx Zoo. The Zoo had audio boxes installed beside select animal cages, and a big plastic key (purchased at the gate, I think) would activate audio narration for that particular animal. Keep in mind that this was the mid-1960s. It didn‘t take too much to seem magical back then. But this rudimentary idea of having electronic enhancements attached to something in the real world was a precursor to the power of mobile activations of objects. The QR code is the ubiquitous and sometimes dubious example of a world that becomes clickable digitally with mobile media. Any place or object can get a layer of additional meaning. The Bronx Zoo of my childhood came to mind when I came upon The Tokkers platform of what it calls ―audio QR‖ codes. The selfserve platform uses a uniquely tagged QR code that has speech bubbles in its corners and the callout ―I Can Talk.‖ Technically, there is no special trick to all of this, really. Anyone can have their code link to a mobile site with an embedded media player. We already do as much with video, the most common use of activation codes. The Tokker platform does strike me as a good evolution of the QR code because it builds into the code a specific consumer expectation on the deliverable. QR fatigue no doubt has set in among some users, who are now wary of scanning anything without good cause. The promise of an audio payoff seems especially compelling. There is something uniquely intriguing about audio -- about an ad or a product that speaks to us via an app. In many of the examples Tokkers offers, this special quality is missing, since they link mainly to music samples or straight audio ads. It seems to me there is an opportunity to take a lesson from the animals at the Bronx Zoo and use audio to bring the user closer to the object, the moment, the place. Video is just video -- it is some variety of TV -- dramatic, funny, but also polished, performance-oriented, detached. Audio personalizes because that voice that is detached from the video is much like the voice on the phone. It can talk directly to us without seeming fake. Imagine if a QR code on a can of beans triggered on your phone the voice of the company CEO telling you that this can in your hand is made of this wholesome ingredient and that one. ―And that is all that goes into our beans -- promise.‖ Or if a QR trigger gave the can its own voice and personality. Mobile activations still seem to be anchored in Web mentalities -- serve a video, link to a site, share on Twitter and Facebook -- ho hum. But a mobile trigger on a physical object should be an occasion for reimagining what digital media does when these tools are tied to a very specific place, time and thing. A dynamic between the device‘s digital capabilities and the physical word becomes possible in ways that far outstrip the desktop. Bringing the Web and online advertising mechanics everywhere and anywhere seems a meager goal compared to being able to make bean cans…or animals…talk. Read more: http://www.mediapost.com/publications/article/202077/a-qr-code-walks-into-azoo.html?edition=60996#ixzz2VpPOtvWT Using Mobile to Help Consumers Buy In-Store by Chuck Martin, Jun 7, 2013, 1:58 PM Babelfish Articles May 2013 - July 2013 15-7-13 Page 96
  • 97. What is the ultimate role of the mobile device in the hands of sales associates? For the last several days I‘ve been pondering the recent Harris poll earlier showing that the majority (59%) of smartphone-armed showroomers prefer looking up product information on their phone to asking salespeople for help. While there may be anecdotal research indicating that shoppers typically ask a sales person to direct them to the location of a product, that majority mobile preference number still seems significant. We know from various studies that consumers want to shop and buy in a physical store, making brick and mortar a potential huge asset for retailers facing mobile shoppers. Research also shows that consumers will use their mobile devices in-store. This begs the question of what is the role of the sales associate in relation to the mobile shopper, especially in light of the consumer desire not to deal with salespeople? It may be that some consumers perceive that the salesperson is going to try to sell them something, since that is part of their job title. Some mobile implementations at retail involve providing salespeople with smartphones or tablets, with an eye toward using devices to find and share additional product information or even expedite checkout. But what if rather than using mobile devices in trying to sell, salespeople used them to help consumers buy? The difference may seem subtle, but could be based on what the consumer wants or needs vs. what the seller is trying to sell. Picture this scenario: I walk into Best Buy, select a new flat-screen computer monitor, find it and bring it to a sales associate in that department to pay. The sales associate looks up my rewards number and notes that I am one of their best customers. The salesperson ―let‘s make sure you‘re getting the best deal here.‖ The salesperson takes out his company-issued smartphone, opens an app like ShopSavvy or Amazon Price Check, and scans the product barcode. ―I see this monitor is $25 less at Staples and $30 cheaper at Amazon, Mr. Martin. How about we match that price and deduct $30?‖ Companies like Best Buy already have price matching policies in place, even if not all consumers are familiar with them. In the scenario, the consumer is assured they got the best deal and if not totally mobile savvy, are shown how to use mobile to instantly price-compare. (Part of the equation is obviously to consider the measurement metrics of profit margins compared to customer retention.) Would you tend to frequent the retailer that always made sure you got the best deal? I‘m sure you can come up with numerous variations of this price matching scenario or others involving best uses of mobile at retail, so feel free to send them along. The process of adapting to mobile shoppers at physical outlets is still in the early stages with a long way to go. Read more: http://www.mediapost.com/publications/article/202045/using-mobile-to-help-consumers-buy-instore.html?edition=60996#ixzz2VpPA44e9 Data-Driven Tech Industry Is Shaken by Online Privacy Fears By DAVID STREITFELD and QUENTIN HARDY June 9, 2013 SAN FRANCISCO — The dreamers, brains and cranks who built the Internet hoped it would be a tool of liberation and knowledge. Last week, an altogether bleaker vision emerged with new revelations of how the United States government is using it as a monitoring and tracking device. In Silicon Valley, a place not used to second-guessing the bright future it is eternally building, there was a palpable sense of dismay. ―Most of the people who developed the network are bothered by the way it is being misused,‖ said Les Earnest, a retired Stanford computer scientist who built something that resembled Facebook nine years before the inventor of Facebook was born. ―From the beginning we worried about governments getting control. Well, our government has finally found a way to tap in.‖ The technology world has always strived to keep Washington at a certain arm‘s length. Regulation would snuff out innovation, the entrepreneurs regularly cried. Bureaucrats should keep their hands off things they do not understand, which is just about everything we do out here. So the first mystifying thing for some here is how the leading companies — including Microsoft, Google, Yahoo, Apple and Facebook — apparently made it easier for the National Security Agency to gain access to their data. Only Twitter seems to have declined. The companies deny directly working with the government on the project, called Prism. But they have not been exactly eager to talk about how they are working indirectly and where they would draw the line. Entrepreneurs around Silicon Valley are publicly urging more disclosure. Babelfish Articles May 2013 - July 2013 15-7-13 Page 97
  • 98. ―The success of any Silicon Valley consumer company is based not only on the value their products bring to users but also on the level of trust they can establish,‖ said Adriano Farano, co-founder of Watchup, which makes an iPad app that builds personalized newscasts. ―What is at stake here is the credibility of our entire ecosystem.‖ It is an ecosystem that thrives on personal data. Prism, which collects e-mails, video, voice and stored data, among other forms of Internet information, was exposed at a moment when the very possibility of online privacy seemed to be in doubt. New technologies like Google Glass are relentlessly pushing into territory that was out of reach until recently. From established behemoths to new start-ups, tech companies are bubbling with plans to collect the most intimate data and use it to sell things. ―We‘re pushing our government to protect us, and we‘re also busy putting more and more of our information out there for people to look at,‖ said Christopher Clifton, a Purdue computer scientist who has done extensive work on methods of data collection that preserve privacy. ―The fact that some of that data is indeed going to be looked at might be disturbing but it shouldn‘t be surprising.‖ Edward Snowden, a former Central Intelligence Agency worker who disclosed on Sunday that he was the one who leaked government surveillance documents to The Guardian newspaper, ranks high among the disturbed. In an interview with the newspaper, he called the Internet ―the most important invention in all of human history.‖ But he said that he believed its value was being destroyed by unceasing surveillance. ―I don‘t see myself as a hero,‖ he told the paper, ―because what I‘m doing is self-interested: I don‘t want to live in a world where there‘s no privacy and therefore no room for intellectual exploration and creativity.‖ President Obama, trying to play down the uproar, said Prism targets only foreign nationals and that it was worth giving up a little privacy for more security. ―I think that‘s a dangerous statement,‖ said Bob Taylor, a computer scientist who played a major role in the 1960s in formulating what would become the Internet. ―The government should have told us it was doing this. And that suggests the more fundamental problem: that we‘re not in control of our government.‖ For some tech luminaries with less than fond feelings for Washington, the disclosures about Prism had special force. This was personal. Bob Metcalfe, the acclaimed inventor of the standard method of connecting computers in one location, wrote on Twitter that he was less worried about whatever the National Security Agency might be doing ―than about how Obama Regime will use their data to suppress political opposition (e.g. me).‖ But if Silicon Valley is alarmed about the ways that the personal data now coursing through every byway of the Internet can be misused, it has been a long time coming. Even as the larger computer makers sold their systems to the government and start-ups of all sorts trafficked in personal information, the companies tried to keep clear of government rules that might cramp their vision — and their profits. They also proved adept at lobbying. Threats by regulators like Christine Varney, the Internet specialist at the Federal Trade Commission, to impose greater oversight on how personal data was being used online resulted in the formation in 1998 of the Online Privacy Alliance. The industry coalition was credited with turning the debate in the industry‘s direction. Its chief spokeswoman: Ms. Varney, who went through the Washington revolving door and emerged as a champion of industry. In 1999, Scott McNealy, the chief executive of Sun Microsystems, summed up the valley‘s attitude toward personal data in what became a defining comment of the dot-com boom. ―You have zero privacy,‖ he said. ―Get over it.‖ Mr. McNealy is not retracting that comment, not quite; but like Mr. Metcalfe he is more worried about potential government abuse than he used to be. ―Should you be afraid if AT&T has your data? Google?‖ he asked. ―They‘re private entities. AT&T can‘t hurt me. Jerry Brown and Barack Obama can.‖ An outspoken critic of the California state government, and Mr. Brown, the governor, Mr. McNealy said his taxes are audited every year. But arguing that computer makers have some role in creating a surveillance state, he said, ―is like blaming gun manufacturers for violence, or a car manufacturer for drunk driving.‖ The real problem, he said, is: ―The scope creep of the government. I think it‘s great they‘re looking for the next terrorist. Then I wonder if they‘re going to arrest me, or snoop on me.‖ Microsoft has recently been casting itself as a champion of privacy — at least when Google is involved. Ray Ozzie, the former software chief at Microsoft, was one of those sounding the alarm late last week. ―I hope that people wake up, truly wake up, to what‘s happening to society, from both a big brother perspective and little brother perspective,‖ Mr. Ozzie said at a conference on Nantucket, according to The Boston Globe. But he did not address whatever Microsoft‘s role might have been with Prism. Aaron Levie, the founder of Box.com, a popular file-sharing system, initially joked on Twitter that Prism was simply putting people‘s Gmail, Google, Facebook and Skype data all in one place. ―The N.S.A. just beat out like 30 start-ups to this idea,‖ he wrote. That was funny, because it was true, but also because the interests of the government and Silicon Valley are not necessarily in conflict here. ―The most important issue here is transparency and our lack of visibility around how our data is being used,‖ Mr. Levie said. ―The government and the tech industry clearly will need to come together to create a better model for this.‖ In the meantime, some tech leaders have another idea: lie low. Gordon Eubanks, a valley entrepreneur for 30 years, can see both sides of the argument over privacy and security. Until it is resolved, he said, ―I‘ve just become really careful about what I put out there. I never put online anything about where I live, my family, my pets. I‘m even careful about what I ‗like.‘ ‖ Babelfish Articles May 2013 - July 2013 15-7-13 Page 98
  • 99. Meet PRISM / US-984XN - The US Government's Internet Espionage Super Operation By Tyler Durden Created 06/06/2013 - 19:31 The disclosures involving this (and the prior) administration's Big Brother surveillance state, which would make Nixon blush with envy are now coming fast and furious (one wonders - why now: even that bastion of liberalism the NY Times, has turned against Obama [12]). Although while the Guardian's overnight news that Verizon (and most certainly AT&T as well among others) was cooperating with the NSA on spying on US citizens, so far at least the internet seemed, if only to the great unwashed masses, immune. That is no longer the case following news from the WaPo exposing PRISM, a highly classified program, which has not been disclosed publicly before. "Its establishment in 2007 and six years of exponential growth took place beneath the surface of a roiling debate over the boundaries of surveillance and privacy." What PRISM does is to allow the NSA and the FBI to tap directly "into the central servers of nine leading U.S. Internet companies, extracting audio, video, photographs, e-mails, documents and connection logs that enable analysts to track a person‘s movements and contacts over time." The secrecy is so deep we expect even the president himself may not know about it (but he does): The highly classified program, code-named PRISM, has not been disclosed publicly before. Its establishment in 2007 and six years of exponential growth took place beneath the surface of a roiling debate over the boundaries of surveillance and privacy. Even late last year, when critics of the foreign intelligence statute argued for changes, the only members of Congress who know about PRISM were bound by oaths of office to hold their tongues. Of course, PRISM is from the government, and it is here to help you. But the question is why are some of the biggest private companies explicitly collaborating with what is now the biggest exposed spying operation in history, companies which include such household names as Microsoft Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube, and Apple. Yes, everyone's beloved Apple was added in October 2012: the NSA knows all about your music playlist, not to mention has a database of all your iMessages. In other words, all those newly minted people known as corporations are in on it, but not: dear debt serf. It's a small club, and there is a multimillion liquid net-worth cutoff... and you are not in it. From WaPo [14]: An internal presentation on the Silicon Valley operation, intended for senior analysts in the NSA‘s Signals Intelligence Directorate, described the new tool as the most prolific contributor to the President‘s Daily Brief, which cited PRISM data in 1,477 articles last year. According to the briefing slides, obtained by The Washington Post, ―NSA reporting increasingly relies on PRISM‖ as its leading source of raw material, accounting for nearly 1 in 7 intelligence reports. That is a remarkable figure in an agency that measures annual intake in the trillions of communications. It is all the more striking because the NSA, whose lawful mission is foreign intelligence, is reaching deep inside the machinery of American companies that host hundreds of millions of American-held accounts on American soil. The technology companies, which participate knowingly in PRISM operations, include most of the dominant global players of Silicon Valley. They are listed on a roster that bears their logos in order of entry into the program: ―Microsoft, Yahoo, Google, Facebook, PalTalk, AOL, Skype, YouTube, Apple.‖ PalTalk, although much smaller, has hosted significant traffic during the Arab Spring and in the ongoing Syrian civil war. the PRISM program appears more nearly to resemble the most controversial of the warrantless surveillance orders issued by President George W. Bush after the al-Qaeda attacks of Sept. 11, 2001. Its history, in which President Obama presided over ―exponential growth‖ in a program that candidate Obama criticized, shows how fundamentally surveillance law and practice have shifted away from individual suspicion in favor of systematic, mass collection techniques. Babelfish Articles May 2013 - July 2013 15-7-13 Page 99
  • 100. Spying on US citizens is "incidental"... kinda like killing thousands of women and children in drone raids is "collateral damage": Even when the system works just as advertised, with no American singled out for targeting, the NSA routinely collects a great deal of American content. That is described as ―incidental,‖ and it is inherent in contact chaining, one of the basic tools of the trade. To collect on a suspected spy or foreign terrorist means, at minimum, that everyone in the suspect‘s inbox or outbox is swept in. Intelligence analysts are typically taught to chain through contacts two ―hops‖ out from their target, which increases ―incidental collection‖ exponentially. The same math explains the aphorism, from the John Guare play, that no one is more than ―six degrees of separation‖ from any other person. This is how the big corporations sleep at night: Formally, in exchange for immunity from lawsuits, companies like Yahoo and AOL are obliged to accept a ―directive‖ from the attorney general and the director of national intelligence to open their servers to the FBI‘s Data Intercept Technology Unit, which handles liaison to U.S. companies from the NSA. In 2008, Congress gave the Justice Department authority to for a secret order from the Foreign Surveillance Intelligence Court to compel a reluctant company ―to comply.‖ In practice, there is room for a company to maneuver, delay or resist. When a clandestine intelligence program meets a highly regulated industry, said a lawyer with experience in bridging the gaps, neither side wants to risk a public fight. The engineering problems are so immense, in systems of such complexity and frequent change, that the FBI and NSA would be hard pressed to build in back doors without active help from each company. Some "do lots of evil" by their customers. They just don't disclose it: ―Google cares deeply about the security of our users‘ data,‖ a company spokesman said. ―We disclose user data to government in accordance with the law, and we review all such requests carefully. From time to time, people allege that we have created a government ‗back door‘ into our systems, but Google does not have a ‗back door‘ for the government to access private user data.‖ Time to kill that Facebook profile... or be accidentally killed for being "of a terroristy persuasion" based on some NSA algo: There has been ―continued exponential growth in tasking to Facebook and Skype,‖ according to the 41 PRISM slides. With a few clicks and an affirmation that the subject is believed to be engaged in terrorism, espionage or nuclear proliferation, an analyst obtains full access to Facebook‘s ―extensive search and surveillance capabilities against the variety of online social networking services.‖ And some more charts: Introducing the program A slide briefing analysts at the National Security Agency about the program touts its effectiveness and features the logos of the companies involved. Monitoring a target's communication This diagram shows how the bulk of the world‘s electronic communications move through companies based in the United States. Babelfish Articles May 2013 - July 2013 15-7-13 Page 100
  • 101. Providers and data The PRISM program collects a wide range of data from the nine companies, although the details vary by provider. In retrospect, it is sad what a farce this country has become: artificial market, centrally-planned economy, pervasive spying on the people, a tax collector that target political enemies, an administration that openly lies under oath... If we didn't know better we would say this was 1955 Stalingrad, although Stalingrad at the height of totalitarianism was for amateurs. This is next level shit: "Firsthand experience with these systems, and horror at their capabilities, is what drove a career intelligence officer to provide PowerPoint slides about PRISM and supporting materials to The Washington Post in order to expose what he believes to be a gross intrusion on privacy. ―They quite literally can watch your ideas form as you type,‖ the officer said." Ideas for Getting Started With Measurement Planning Adam Singer | June 10, 2013 At the past few events where I've spoken to marketing practitioners, I continue to make the statement that it has never been a more exciting time to be a marketing or public relations professional. Why so exciting? We've never had so many tools and tactics to reach our target audiences at our fingertips. We also have an unprecedented amount of data to shift our execution from "gut feel" to data-driven. But before we can dive into new tools and start to use data to improve our programs, a critical yet frequently missed Babelfish Articles May 2013 - July 2013 15-7-13 Page 101
  • 102. first step is to conduct measurement planning. Today I wanted to share thoughts on just some of the key actions your organization (or agency) should conduct during the planning process. Outline What You Want to Measure, Both Objectives and KPIs This is really the first step: what does success look like to your business? Get as specific as possible. If you are reading this, you're probably in marketing and your answer was likely revenue generated from marketing initiatives. If you said yes to this, awesome, you're spot on and your marketing professor is likely applauding you right now. Now, go further: what tactics do you plan to implement to generate revenue, and how do they accomplish this? What does success look like (X percent increase in Y tactic)? Create a matrix outlining it, along with the key performance indicators (KPIs) that map back to revenue. For example, more (relevant and engaged) website visitors leads to more micro and macro conversions, which leads to more revenue. Or, a larger (opt-in) email list of excited users equals more click-throughs to landing pages for un-missable content, giving your sales team more prospects to work with. Or, a larger community in social leads to more re-sharing and clicks of your content back to your social hub, which leads to improvements across organic marketing metrics. Outlining metrics is key, as it will guide your use of setting goals in analysis tools. As Avinash likes to say, "If you ain't got goals, you ain't got nothin'!" Before Implementing Any Tools, Ask Tough Questions Until you know precisely what it is you wish to accomplish, it is premature to start testing out tools or shopping vendors. Different tools have different strengths and flexibility (not to mention costs and user preference). There is a lot that goes into selection of the right measurement tool, but really it comes down to the questions that matter to you first: can the tool easily (and in an automated fashion) measure the metrics you care about? Can you get the support you need (or for free tools, are there qualified consultants available)? Does the tool integrate with your other initiatives/digital systems (web, app, POS, and beyond)? How easy is it to customize reports and segment data? Be sure to ask all the tough questions (both internally with your own analyst and externally with a vendor) first. Have a Reporting/Analysis Plan With Specific Dates/Deliverables Now that you have your objectives down, your marketing plan complete, the KPIs associated with your programs established, and you know what tools you're planning to use and how you're going to integrate them, you need a plan to actually start using the data. Ideally, you have an analyst resource on your team focused on delivering the right reports, insights, and actions to their appropriate stakeholders and evangelizing data to those in your organization. This last point is important: it's still not enough to assume people will act on data unless you make it clear what actions your team members should take and get everyone excited about actually implementing recommendations. Data-driven decision-making is undoubtedly the future, but it's still new territory for many. Having a plan and process here will help everyone get comfortable and value metrics appropriately, and the right leadership is key. While the above is just a primer on measurement planning and the actual steps you take will vary based on your organization and resources, the point is planning is the key first step in measurement. As simple as it may be to actually implement a tool, it's ensuring you use it effectively as an ongoing part of your marketing that makes the difference. Com paywall ou sem? Eis a questão Estudo da PricewatershouseCoopers prevê que a receita dos jornais norteamericanos permanecerá em queda até 2017 Por Michael Sebastian, do Advertising Age Apesar da promessa de aumento do número de leitores online por conta da adoção do paywall, a receita dos jornais norteamericanos continuará a cair até 2017, segundo o estudo Global Entertainment and Media Outlook, realizado anualmente pela PricewaterhouseCoopers. A receita total dos jornais dos EUA deve ter um ritmo anual de crescimento de 2,9% entre 2013 e 2017, segundo projeções do estudo. Embora as tendências online tenham melhorado, a publicidade nesses veículos deve diminuir a uma taxa anual de 4,2%, diz a pesquisa. ―Há alguns sinais bastante positivos sobre uma retomada da indústria, mas boa quantidade da receita perdida provavelmente não voltará‖, afirma Greg Boyer, diretor da PricewaterhouseCoopers. Babelfish Articles May 2013 - July 2013 15-7-13 Page 102
  • 103. Parte dessa promessa vem na forma de mais leitores online. Sites de jornais atraíram mais de 100 milhões de visitantes únicos em 2012, segundo a Newspaper Association of America. A entidade também observou uma expansão de 7% no número de visitantes únicos com idade entre 21 e 34 anos. Com mais pessoas acessando sites de jornais, a expectativa é que a publicidade digital cresça até 2017, apresentando um crescimento de 9,7% entre 2013 e 2017. Mas os ganhos não serão suficientes para cobrir a baixa anual de 7,8% dos anúncios impressos. A receita dos jornais em anúncios digitais em 2017 é estimada em até US$ 5,5 bilhões, comparada com os US$ 12,8 bilhões em anúncios impressos. Espera-se que a receita da circulação diminua, anualmente, somente 0,2% entre 2013 e 2017, impulsionada por um aumento 29,8% da circulação digital graças à implementação do modelo de paywall pelos jornais. A queda da circulação de impressos continuará, mas em uma escala mais lenta, diminuindo 1,8% pelos próximos quatro anos. A maior parte da receita de circulação – US$ 9 bilhões – vem do impresso, com US$ 1 bilhão como resultado de assinaturas digitais. O cenário instável da indústria do jornal está dando à receita de circulação uma fatia melhor do bolo. ―Com o deslize da receita publicitária, essa mudança em direção a um melhor share proveniente da circulação tem sido imperativa‖, afirma o estudo. ―Assegurar a futura lealdade dos leitores e evitar descontos altos nas assinaturas é uma prioridade‖. Essa experiência teve início na New York Times Company, onde a receita de circulação combinada para o New York Times e a publicação-irmã Internacional Herald Tribune está ultrapassando a receita publicitária este ano. ―Dito isso, um dos problemas estruturais implícitos da indústria de jornais dos EUA tem sido o investimento em receita publicitária em vez de circulação, essa foi uma mudança sísmica‖, concluiu o relatório. Leia Mais: http://www.meioemensagem.com.br/home/midia/noticias/2013/06/07/Com-paywall-ousem.html?utm_source=newsletter&utm_medium=email&utm_campaign=mmbymailgeral&utm_content=Com+paywall+ou+sem?+Eis+a+quest%E3o#ixzz2VoduVe3W A difícil missão de transmitir o significado emocional das marcas Por Andrew Edgecliffe-Johnson | Financial Times O marketing pode soar lamentavelmente superficial. A linguagem do "envolvimento emocional", dos "pontos de paixão do consumidor" e dos "principais formadores de opinião" que o setor passou a apreciar tanto é difícil de vender a executivos-sênior eternamente pressionados para gerar retornos concretos de seus investimentos em publicidade. Não é de estranhar que executivos das multinacionais Procter& Gamble e da Mondelez International tenham se sentido capazes, recentemente, de pôr as agências de publicidade em apuros ao adiar, por 75 dias e 120 dias, respectivamente, os pagamentos que deveriam efetuar. Os gastos com publicidade vão alcançar US$ 518 bilhões este ano, segundo estimativa da agência ZenithOptimedia, mas, num momento em que a mídia enfrenta mudança acelerada nos campos digital, móvel e social, os proprietários de marcas nunca estiveram mais inseguros dos retornos que esse investimento gera do que atualmente. Maioria das pessoas não se importaria se 73% das marcas sumissem, segundo estudo do grupo de comunicação Havas É tentador, em vista disso, ignorar um relatório sobre "marcas significativas" como mais blá-blá-blá. A ideia de que um telefone, um automóvel, um xampu ou um tênis de corrida tenham grande significado soa como a promessa excentricamente grandiosa de um executivo de propaganda para "um produto que vai mudar a sua vida". Mas o estudo "Meaningful Brands" ("Marcas Significativas") divulgado esta semana pelo braço de compra de espaço na mídia do grupo francês de marketing Havas merece ser tomado mais a sério. Em primeiro lugar, sua metodologia lhe empresta consistência: a Havas pediu a opinião de 134 mil consumidores de 23 países sobre 700 marcas, e resolveu definir "significado" por 12 indicadores das contribuições das marcas à qualidade de vida dos indivíduos e da sociedade como um todo. Alguns instrumentos de mensuração foram tomados emprestados dos índices aplicados pela Organização para a Cooperação e Desenvolvimento Econômico (OCDE) e pelo Banco Mundial (Bird) para chegar ao que é conhecido por alguns como felicidade interna bruta para a iniciativa que Umair Haque, diretor de mídia da Havas, chama de primeira tentativa de ligar o bem-estar humano a marcas. Em segundo lugar, o estudo foca precisamente nos números concretos que os contadores ultraminuciosos das empresas apreciam. As 25 marcas consideradas pelos consumidores "as mais significativas" superaram o desempenho das ações mundiais em 120% nos últimos dez anos. Essas marcas mais apreciadas não são todas óbvias, quando medidas pelos habituais parâmetros de receita, capitalização de mercado ou valor de marca. A Apple, por exemplo, é a marca mais valiosa do mundo - pelo menos hoje - e encabeça o rol BrandZ da agência WPP das marcas mais valiosas do mundo, mas está em 22º lugar na lista das Marcas Significativas. Outras marcas Google, Samsung, Microsoft e Sony - dividem os cinco primeiros lugares da lista com a Nestlé, um reflexo, diz a Havas, de como a tecnologia emancipou os consumidores. A Havas diplomaticamente se recusa a identificar as que ficaram nas últimas colocações, mas a McDonald's, a quarta da lista BrandZ, não figura em seu ranking das 25 mais significativas. A General Motors, uma das maiores anunciantes dos Estados Unidos, também não. Empresas financeiras e de energia têm má classificação e, apesar de seu crescimento mundial, as marcas chinesas não alcançaram o sucesso. O terceiro ponto que reforça a credibilidade do relatório é seu recado profundamente desconfortável para as agências de publicidade. A maioria das pessoas de todo o mundo, detectou a Havas, não se importaria se 73% de todas as marcas desaparecessem. Babelfish Articles May 2013 - July 2013 15-7-13 Page 103
  • 104. Há ainda mais descobertas preocupantes na Europa e nos Estados Unidos, onde os consumidores não se importariam se 92% das marcas desaparecessem. O desapego não ocorreu da noite para o dia. Mas o que o causou, e como as marcas podem se tornar mais significativas? Em mercados maduros, a saturação da marca pode ser parte do problema. Não se precisa passar muito tempo num supermercado americano para concluir que há simplesmente um excesso de marcas sem importância. E, o que é mais importante, um número demasiadamente grande de marcas tem feito promessas que não conseguem cumprir. Pouco menos de um terço dos consumidores acha que a comunicação das marcas é sincera, o que resulta num crescente descrédito. Após o esforço e o dinheiro gasto em programas de responsabilidade social corporativa, iniciativas de sustentabilidade e no que Michael Porter chama de "valor compartilhado", uma tentativa de casar o progresso econômico com o social, essa descoberta é desanimadora. De forma mais construtiva, o estudo mostra que os consumidores recompensam marcas que os ouvem; que oferecem boa qualidade; marcas de produtos inovadores a preços justos; que tornam sua vida mais feliz, mais fácil e mais saudável; e que apoiam o meio ambiente, a economia e a comunidade. "Está despontando um novo modelo da prosperidade humana, centrado em torno da ideia de potencial e bem-estar humanos", diz Haque. É uma afirmação ambiciosa. Mas não há nada de superficial na correlação entre contribuir para o bem-estar dos consumidores e ser recompensado pelos consumidores e, por sua vez, pelos investidores. Haque quer usar os dados para conceber um novo instrumento de mensuração financeira, a "relação preço sobre bem-estar". Os executivos podem paparicar os lucros, observa ele, mas "não se pode paparicar o significado". Essa pode até ser uma maneira de a comunidade de marketing convencer executivos de compras extremamente parcimoniosos de que ela ainda pode ser significativa. © 2000 – 2012. Todos os direitos reservados ao Valor Econômico S.A. . Verifique nossos Termos de Uso em http://www.valor.com.br/termos-de-uso. Este material não pode ser publicado, reescrito, redistribuído ou transmitido por broadcast sem autorização do Valor Econômico. Leia mais em: http://www.valor.com.br/empresas/3153070/dificil-missao-de-transmitir-o-significado-emocional-das-marcas#ixzz2VXYIXNsh The difficult task of conveying the emotional significance of brands By Andrew Edgecliffe-Johnson | Financial Times The marketing may sound woefully superficial. The language of "emotional involvement", the "consumer passion points" and "key opinion leaders" that the industry started to appreciate both is difficult to sell to senior executives eternally pressed to generate tangible returns on their investments in advertising . It is not surprising that executives of multinational Procter & Gamble and Mondelez International have felt able recently to put advertising agencies in trouble to postpone for 75 days and 120 days, respectively, which should make the payments. Ad spending will reach U.S. $ 518 billion this year, according to estimates by the agency ZenithOptimedia, but at a time when the media is facing rapid change in fields digital, mobile and social, brand owners have never been more unsure of the returns that generates investment than currently. Most people would not care if 73% of brands vanished, according to a study of the communications group Havas It is tempting, in view of this, ignoring a report on "significant marks" as more blah-blah-blah. The idea that a phone, a car, a shampoo or a running shoe has great significance oddly sounds like the promise of a great advertising executive for "a product that will change your life." But the study "Meaningful Brands" ("Meaningful Brands") released this week by the arm of buying media space of the French group Havas marketing deserves to be taken more seriously. First, its methodology lends consistency: Havas asked the opinion of 134 000 consumers from 23 countries over 700 brands, and decided to define "meaning" for 12 indicators of the contributions of the brands the quality of life of individuals and society as a whole. Some measurement instruments were borrowed from the indexes applied by the Organization for Economic Cooperation and Development (OECD) and the World Bank (IBRD) to arrive at what is known by some as gross domestic happiness for the initiative that Umair Haque, director of media Havas, calls the first attempt to connect the human welfare to brands. Second, the study focuses precisely on hard numbers that accountants ultraminuciosos companies appreciate. The 25 brands considered by consumers "most significant" outperformed the world stock by 120% in the last ten years. These brands are all appreciated not obvious when measured by the usual parameters of revenue, market capitalization and brand value. Apple, for example, is the most valuable brand in the world - at least today - and tops the list of agency WPP BrandZ most valuable brands in the world, but is in 22 th place in the list of Meaningful Brands. Other brands - Google, Samsung, Microsoft and Sony - share the top five list with Nestlé, a reflection, says Havas, of how technology emancipated consumers. Havas diplomatically refuses to identify the settings that were in the past, but the McDonald's, the fourth of the BrandZ list, does not figure in its ranking of the 25 most significant. General Motors, one of the largest advertisers in the United States, either. Financial and energy companies have misclassification and despite its worldwide growth, Chinese brands have not achieved success. Babelfish Articles May 2013 - July 2013 15-7-13 Page 104
  • 105. The third point that reinforces the credibility of the report is a message deeply uncomfortable for advertising agencies. Most people around the world, found Havas, would not care if 73% of all brands disappeared. There are even more troubling discoveries in Europe and the United States, where consumers do not care if 92% of brands disappeared. The detachment did not occur overnight. But what caused it, and how brands can become more meaningful? In mature markets, the saturation of the brand can be part of the problem. One need not spend much time in American supermarket to conclude that there are simply too many brands unimportant. And, more importantly, too large a number of marks is made not fulfill promises. Just under a third of consumers think the brand communication is sincere, which results in increasing disrepute. After the effort and money spent on programs of corporate social responsibility, sustainability initiatives and what Michael Porter calls "shared value", an attempt to marry economic progress with social, this finding is discouraging. More constructively, the study shows that consumers reward brands that hear, that offer good quality; brands innovative products at fair prices, which make your life happier, easier and healthier, and supporting the environment, economy and community. "It is a new emerging model of human prosperity, centered around the idea of potential and well-being," says Haque. It's an ambitious statement. But there is nothing in the correlation between surface contribute to the well-being of consumers and be rewarded by consumers and, in turn, by investors. Haque wants to use the data to design a new financial instrument to measure the "value for money on welfare." Executives can indulge profits, he notes, but "you can not pamper the meaning." This may even be a way to convince the community of marketing executives from purchasing extremely parsimonious that it can still be significant. © 2000-2012. All rights reserved to the Economic Value SA. Check our Terms of Use for http://www.valor.com.br/termos-de-uso. This material may not be published, rewritten, redistributed or broadcasted without the authorization of Economic Value. Facebook Drops 'Sponsored Stories' As It Pares Down Ad Formats Thu, 06 Jun 2013 cdelo@adage.com(Cotton Delo) Facebook announced today that it‘s reducing the number of available ad products from 27 to less than half that amount over the next six months. While the ―streamlining‖ was characterized as a work in progress, one thing that‘s on the chopping block is ―sponsored stories‖ as a standalone product. Introduced in 2011 and once the core of Facebook‘s strategy to promote its ads product as uniquely social, sponsored stories contain a social layer and inform users if their friends have engaged with a brand on the platform (by liking or commenting on one of its posts, for example.) There are currently 13 different types of sponsored stories (including one that delivers context about friends who have played with a game.) By the end of the third quarter or the beginning of the fourth, Facebook intends to direct advertisers to buy one ad format that will include the richest social context available. (And in the event that no social context is available -- meaning a user‘s friends haven‘t engaged with the brand -- a more stripped-down news-feed ad with just a picture and text would appear, for example.) ―Sponsored stories as an idea doesn‘t go away. Sponsored stories as a product goes away,‖ said Brian Boland, Facebook‘s product marketing director. Facebook is also intending to redesign the ads interface to focus on ―objectives‖ -- such as mobile app installs, online sales and foot traffic -- rather than a menu of ad product types that are potentially confusing for marketers. ―We‘re going to solidify on a smaller number of formats that we think are better,‖ said Andrew Bosworth, Facebook‘s engineering director. He also noted that he expects the changes to help marketers optimize their ad buys and subsequently make them drive better results at a lower price. ―We‘re going to help them make better decisions up front by reducing the number of decisions they have to make.‖ While cutting the clutter of redundant ad units may help advertisers zero in on what‘s truly useful for their business, retiring ―sponsored stories‖ as a brand also marks Facebook taking another small step away from its past reliance on social ads to explain its value to marketers. In its new vision presented today, social context is one ingredient in the Facebook ads cocktail, but it‘s no longer a standalone ad product. Facebook‘s plan is reminiscent of Google‘s move in February to streamline AdWords; in Google‘s case, the simplication was intended to urge advertisers to spread their bids to mobile . Other ad units that will soon rest in peace -- as soon as July -- are ―questions‖ and ―online offers.‖ Instead of buying an ad unit with convoluted social context showing when a user‘s friend had answered a question posed by a brand, marketers will instead be directed to pose the question directly in a news-feed post, for example. And while ―offers‖ for online sales are being phased out, they‘ll remain in play for in-store deals. Tim Peterson contributing. Mobile devices attract TV viewers THETFORD CENTER: TV viewing habits in the US show distinct differences across traditional TV and mobile platforms as regards programme genres and viewing times, according to a new study. Babelfish Articles May 2013 - July 2013 15-7-13 Page 105
  • 106. A report from the Council for Research Excellence, an independent research group, surveyed 6,000 Americans aged 15-64 with broadband internet access at home and who watch at least five hours of TV per week. It found that the greater part of tablet and smartphone TV viewing – 22% and 28% respectively – occured during the daytime between 9am and 3pm, whereas this time slot accounted for only 19% of traditional TV viewers and for 26% of those who rely on their computers. Traditional TV usage rose to 25% during primetime Monday to Saturday schedules. At the same time, smartphone usage halved to 14% and tablet viewing fell marginally to 20%. The survey also found that tablets accounted for 15% of late night viewing from 11.30pm to 1am, compared with 12% for smartphones and 9% for traditional TV. When tracking programme genres, traditional TV dominated as the preferred source for news and business – at 31% compared with 15% for smartphones and 11% for tablets. Sport, too, accounted for a larger percentage of viewing occasions on traditional TV (19%) than on tablets (9%) or smartphones (14%). However, dramas were the top genre for tablets and smartphones – at 31% and 27% of viewing occasions respectively – and both devices were also popular for watching comedies (at 20% and 24%). When it comes to viewing location, 82% of tablet viewing occurred in the home a figure that dropped to 64% for smartphones. In addition, some 12% of smartphone viewing occasions happened in the office or while travelling. The findings coincide with news that Verizon Wireless plans to pay $1bn for the rights to air National Football League games, enabling its customers to access NFL games via an app on Sunday, Monday and Thursday nights this season. Brian Angiolet, Verizon's vice-president of marketing and communications, told the Wall Street Journal: "We look for these deals to drive switching, loyalty and subscription fees" while media consultant Lee Berke predicted that viewers for NFL games on mobile will continue to double for the foreseeable future. Data sourced from Marketing Charts, Wall Street Journal; additional content by Warc staff, 7 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31500&Origin=WARCNewsEmail#PJ34Px286j8vzG1c.99 How to increase your Fcaebook Post Engagement Author: NewsCred Source: Business2Community 31 May 2013 The most successful Facebook accounts, and businesses in general, are those with a community of customers that is both highly interactive and supportive. And the only way to build this kind of community is by being a business with the same qualities. Facebook is among the best available resources for a business to interact with and support its existing and potential customers. And while the importance of the size of your Facebook fan base is obvious, the level of engagement with your fan base is at least as important. Think about it. Which is more valuable: 1,000 consistently communicative Facebook fans who eventually convert into sales, or 10,000 unengaged fans who never interact, and therefore never convert? A growing fan base is desirable, but while promotion may build size, content focused on engagement builds sales. Every one of your Facebook posts should produce greater interaction with your fan base, and lead to sales conversions later down the road. However, getting your Facebook audience to engage can prove difficult. To achieve the highest level of engagement possible, it‘s important to consider the tips below when creating and publishing your Facebook posts. Babelfish Articles May 2013 - July 2013 15-7-13 Page 106
  • 107. Seven Tips for Increasing Your Facebook Post Engagement: 1. Stand Out In order to engage with your followers, you first have to get their attention. In a Facebook timeline full of status updates, posts and advertisements, that‘s not always easy. When used properly, bright colors, creative images, and memorable text can be very successful methods for catching the eyes of your followers. 2. Timing is Everything When it comes to your Facebook posts, timing is crucial. While there is no general best time to publish a Facebook post (optimal timing depends on your industry and audience), monitoring and comparing which days and times bring you the most response on your posts can help you decide when to post in the future. Having a general idea of what your typical Facebook follower‘s schedule is like can help in these decisions, as well. The seasons, recent holidays, changes in your industry, and events in your company are also factors to consider when choosing the content and timing of your Facebook posts. 3. Provide Incentive Promoting sales events and offering discounts via your Facebook posts increases interest in your brand and provides incentive for your followers to engage with you. Giveaways, contests, coupons, special offers, and seasonal sales are all forms of promotion that can be well-integrated with a call to action in your Facebook posts. Babelfish Articles May 2013 - July 2013 15-7-13 Page 107
  • 108. 4. Use a Clear Call to Action It may sound simple, but your fans will be much more likely to engage, if you tell them to do so. Clearly telling your Facebook fans to like your page, comment on your post, or share your video increases the chances that they will, especially when you provide them with that awesome incentive! It is important when using this tip to not use it too often. Telling your fans to do something in every post you publish can backfire and come off as pushy and annoying, and it may cause them to disconnect. Babelfish Articles May 2013 - July 2013 15-7-13 Page 108
  • 109. 5. Know Your Audience Creating engaging content for your Facebook posts is all about knowing who you‘re creating it for. Let‘s assume you‘re a brand that offers low-grade, affordable cookware, and your customers (and Facebook fans) are primarily middle-class, single, young adults. Would a Facebook post with a tasty recipe for a family of four interest them? Maybe, but probably not. However, a quick and easy recipe for an on-the-go meal that can be stored in your latest line of four-dollar plastic containers will definitely appeal to them! By knowing the audience of your Facebook posts and familiarizing yourself with their lifestyles and interests, you can better achieve posts that they will relate to and engage with. 6. Be Up-To-Date With the fast-pace flow of updates and posts on Facebook, many use it as a tool for new information, fresh ideas and the latest trends – including your followers. By maintaining the relevance of your posts and keeping your content up-to-date, you can prove to your fan base that you are a valuable and trusted source to follow and constantly check in with. Your Facebook posts will become less likely to be overlooked, as your followers begin to trust the information and respect the insight that your account provides. 7. PROMOTE! Even if you have developed the most powerful post your Facebook fans have ever seen, they won‘t see it if you don‘t promote it properly. Running an ad campaign with Facebook turns your posts into online advertisements to be seen by your followers and, with Suggested Posts, your followers‘ friends. And the best part is that using a free Facebook ads optimization tool like AdEspresso makes it easy to see which of your posts are succeeding, which posts are failing and why. Using this data you will achieve greater ROI and lower costs per lead in your marketing efforts. Follow these seven tips and you‘ll be sure to see your Facebook engagement increase – and along with it your sales should increase as well! Climbing The Slippery Slope Of Advertising by Gord Hotchkiss, Thursday, June 6, 2013 Babelfish Articles May 2013 - July 2013 15-7-13 Page 109
  • 110. Google‘s Matt Cutts is warning advertisersnot to try passing off ―native ads‖ -- or advertorials -- as legit content. Apparently, the line between advertising and content continues to get blurrier. The reason is that advertisers are still trying to find an ad that works -which they‘ve been doing for over 300 years. The first newspaper ads, which seemed to mark the dawn of advertising, appeared very early in the 18th century. Because they looked just like the articles surrounding them, they had to be labeled as an ―Advertisement.‖ Sound familiar? Now, wouldn‘t you think that if you‘ve been doing something for over 300 years, you would have figured it out? So why does most advertising still suck? Why are we still trying to find some magic formula that works? We could attribute it to changing technologies, saying that advertising continues to evolve because the marketplace it operates in is in constant flux, along with the delivery channels it uses and the creative possibilities it offers. That would be what an ―advertiser‖ would tell you. I think the answer is a bit simpler than that. It comes down to a three-century disconnect between the market and the marketers: marketers want advertising, the market doesn‘t. At least, we don‘t want advertising in the form that it usually takes. Advertisers have been tinkering all that time, trying to find something the public doesn‘t reject outright. Perhaps, as we often do in the Thursday Search Insider, we can find some clues in the etymology of the word. ―Advertisement‖ comes from the French verb ―avertir,‖ which means to give notice -- or, more ominously, warning. Ironically, the very word we use to label our industry came from roots that carry a negative connotation. To move it to a more positive light, we could say that the purpose of advertising is to make us aware of something we weren‘t previously aware of. That seems rather benign -- helpful, even. It would be accurate to say that the earliest ads aspired to this purpose. But somewhere along the line, ads stepped over the line and became something we learned to hate. How did this happen? Like many of the social issues that plague us today, the roots of advertising‘s fall from grace can be traced back to the Industrial Revolution. Technology enabled scale. Mass production became reality. And, to keep pace, advertising showed us its less benign side. Prior to mass production, the output of a product was limited to the resources of a producer. Increasing quantity usually had an inverse impact on quality, which relied on the skills of a single craftsperson. One person could only produce so much. The first brands were introduced by these craftspeople to identify their products, differentiating them from inferior competitors. But with mechanization and the introduction of the assembly line, suddenly scale became virtually unlimited. Uniform products could be produced by the trainload. Profits became tied to scale, and greed became tied to profit. From that point forward, the three moved in lockstep. It was at that point that advertising moved from being a helpful notice to an annoying plea to buy crap we don‘t need. And that‘s when advertisers had to learn to start pushing the public‘s buttons, whether we wanted them pushed or not. Everything started to go off the rails early in the 20th century, and the wreckage really piled up with the introduction of mass communication. Suddenly, unlimited greed had an unlimited capacity to annoy us. Advertising couldn‘t stop at informing. It had to start selling. The twist in all this came right at the end of the ―Century of Annoyance.‖ In 1998, Goto.com introduced paid search (no, it wasn‘t Google). It was an ad with one purpose, to make someone aware of something they weren‘t previously aware of. And it was delivered in the perfect context. The market, in the form of a searcher, was looking to become more aware about something by seeking out new information. It gets even better. The searcher could decide whether or not to take advertisers up on their offers by choosing to click or not Of course, with time, we advertisers will figure out a way to screw that up, too. The good news, if you‘re Matt Cutts, is that it means you‘ll have a job for the foreseeable future. Gord Hotchkiss is an independent consultant, speaker and author. He's been a keen observer of the strategic side of search, digital marketing and corresponding human behavior for almost two decades now. Contact him here. Social TV Ratings – Why Advertisers Should Be Careful Of What They Wish For By Graeme Hutton www.MediaBizBloggers.com Published: June 6, 2013 at 5:12 AM PDT Allow me to start with a personal declaration: As a media researcher who has tracked the word of mouth generated by many advertising campaigns, I am excited by the impending launch of social TV ratings. Slated to come on stream in Q4 this year, social TV ratings should catapult the concept of TV audience ratings from a simple viewer measurement to a consumer response metric. Social TV ratings should provide a standardized quantification of consumers‘ social media involvement with a TV program. Nonetheless, in case we all become too rapidly enthralled by the specter of social TV ratings, let me also add ―Not so fast!‖ Why do I say this? Nielsen and Twitter announced this important initiative in December 2012. Billed as the Nielsen Twitter TV Rating (NTTR), the NTTR is a revolutionary new TV ratings statistic, primarily based on the Tweets each TV show receives. The NTTR brings the promise of a qualitative, behavioral measure to overlay on standard TV ratings. Currently, in order to determine their total TV presence, some media buyers simply add up their TV ratings across the shows in which their advertising appeared. In effect, all they are doing is weighing their total audience delivery. Indeed, a campaign‘s total TV rating achievement is often referred to as its TV weight. I think the issue may be way more complex and nuanced than just comparing a campaign‘s total TV ratings weight with its social TV ratings. Typically, there would seem to be a simple three-step process: Babelfish Articles May 2013 - July 2013 15-7-13 Page 110
  • 111. Step 1: The advertiser or agency decides to focus on social TV ratings, invest in the metric and maximize the campaign‘s delivery of this measure. Step 2: For each show on the campaign‘s schedule, the media buyer then compares the delivery of social TV ratings to the audience ratings to derive each show‘s conversion index. Any program with an index above 100 is considered to be in positive territory. Step 3: The ultimate goal would appear to be simple: Evaluate all TV shows in the campaign and max the aggregate social ratings‘ conversion index. For any advertiser or agency hoping that adding up social TV ratings may be akin to summing up audience TV ratings, I offer the following two observations to consider: First, take the Super Bowl – the granddaddy of all TV shows generating word of mouth. Counter intuitively, not all advertisers who appear in this game see an actual uplift in their brands‘ word of mouth. Indeed, according to Keller Fay, the leading word of mouth researcher, about 10%-15% of advertisers in the Super Bowl can see a decline in their word of mouth in the week after the game. This unexpected outcome would not have been anticipated by the above process. Secondly, in late 2010, the Word of Mouth Marketing Association honored me with their Gold Award for Research for constructing a multiple regression analysis which demonstrated the connection between Sony Electronics‘ advertising and their subsequent word of mouth. This connection was not a straightforward relationship. One of my key findings was that ad-generated word of mouth depended not only on Sony‘s media weight, but also on their share of voice. In other words, ad-generated word of mouth was seen to be competitive. Estimating a campaign‘s word of mouth is not like calculating ad awareness, which is largely a function of the total ad weight and its weekly reach. A more complex relationship may exist, which can make word of mouth modeling more like sales modeling. On the upside, UM has undertaken a number of special analyses that frequently demonstrate a strong relationship between a sponsor‘s TV show and the sponsor‘s consequent word of mouth. In this case, the sponsor‘s recipe for success is clear: • Match the brand to the program • Align the message to the audience For example, a perceived older brand would almost always need to exude an evident sense of humor, or even young-at-heart irreverence, if it were being integrated into The Colbert Report. The upcoming release of social TV ratings justifiably enthuses many of us in the ad business. Yet in order for social TV ratings truly to succeed, its advertising impact will need to be verified and validated. To their credit, both Twitter and Nielsen have an impressive array of ad effectiveness experts on their respective benches. Make no mistake, if Twitter and Nielsen can get beyond the issues I‘ve outlined here and categorically prove the effectiveness of social TV ratings, it will upend the TV airtime market as we know it. Online Video Trumps TV In Engagement, Ad Shifts by Wayne Friedman, Yesterday, 10:41 AM Some worldwide traditional TV ad spending -- as well as display advertising -- is shifting into new online media video campaigns. According to a survey, 73% of respondents said online video spend had increased over the last 12 months.TV and display were cited as the two main sources for the new video money. The data, drawn from 770 global marketers, comes from Be On, a new AOL-branded content division, between March and April. Although TV is considered a key "awareness" producer, 78% of respondents in Europe and 58% globally said they could achieve greater engagement and scale with online video. Over 80% point to audience and content targeting as main factors when planning a new branded video campaign. Better audience targeting (73%) and measurement (67%) were mentioned as key reasons for increasing online video spend in the future. Overall, all video marketplaces were deemed satisfactory: 64% of those surveyed said they were satisfied with video services in today‘s market. Another 84% believed the Internet is fundamentally becoming a strong brand medium. Read more: http://www.mediapost.com/publications/article/201835/online-video-trumps-tv-in-engagement-adshifts.html?edition=60876#ixzz2VR9Z4a9A DoubleClick Integrates Support For Native Ads, Brand Integration by Laurie Sullivan, Yesterday, 3:50 PM Wednesday, Jun 5, 2013 Native ad formats and social have emerged as important new ad models. Now Google will offer support for both in DoubleClick. Google has quietly been testing native ads with a handful of publishers, such as Forbes. Meredith Levien, group publisher and CRO at Forbes, addressed attendees at the DoubleClick advisory board meeting for advertisers and publishers Tuesday to explain how Forbes BrandVoice works. The platform allows marketers at companies like SAP to connect with readers by creating content or native ads that run on the publisher's site. Levien said brands must adhere to strict guidelines, such as that the content must feel natural on the page, native rather than a pitch, and transparently labeled as ad content. Babelfish Articles May 2013 - July 2013 15-7-13 Page 111
  • 112. DoubleClick for Publishers will support native ad products like Forbes by allowing brands to integrate their content management systems into the platform and manage the native ad inventory alongside more traditional ad units. Neal Mohan, Google vice president-display advertising, also introduced Google Web Designer, a free product that marketers can use to create content in HTML5 and CSS3, so it runs across all up-to-date browsers. Marketers create the content once to run across desktop, smartphones and tablets. Google also finally integrated social capabilities into its DoubleClick advertising system through its 2012 acquisition of Wildfire. Alongside display advertising and search campaigns, the DoubleClick Campaign Manager will track the performance of non-paid social media campaigns, such as promotions. The reporting will give brands insight into how social feeds into attribution models, according to Mohan. "This is just the first step," he said. "We aim to introduce a slew of connections between Wildfire and DoubleClick over the next few months and quarters." Mohan said many in the industry have a misconception that digital technology creates a disconnect between one media and another, or a brand and its audience. A recent study with Boston Consulting Group in Europe found having a platform that connects media saves clients about 33% of time that is otherwise wasted in duplicate efforts. That time translated into days spent creating connections with business partners. Read more: http://www.mediapost.com/publications/article/201746/doubleclick-integrates-support-for-native-adsbra.html?edition=60871#ixzz2VOOC7hra Is Quartz the Very Model of a Modern Publisher? Josh Sternberg 05.30.2013 Eight months ago, Atlantic Media placed a bet that a digital-first, mobile-oriented publication geared to business executives on the go would be a hit. The results, so far, point to a publication on the rise. Quartz began with a philosophy that goes against today‘s publishing tropes: Instead of running banners, it would run advertising content; instead of a homepage, it would have a continuous stream of content. In the last eight months, the company has grown its staff, advertiser base,audience and revenue. Jay Lauf, publisher of Quartz, has learned a lot since unwrapping the Quartz cover. He‘s learned that embracing the social Web is a big boon for a new media brand. ―It‘s how you grow traffic — and quality traffic,‖ he said. He also learned that when it comes to ads, perhaps unsurprisingly, quality trumps quantity. ―It seems like an easy throwaway, but quality of content matters. Quality of design interface matters. Quality of ads matters,‖ Lauf said. ―We feel vindicated; it‘s a hallmark of what we do, and it‘s proven to be useful. Users actually like ads if they‘re good. Sounds very Jonah Peretti, but it is true.‖ Quartz started with four sponsors — Boeing, Chevron, Credit Suisse, Cadillac — and has added 11 other blue-chip advertisers like Ralph Lauren, KPMG, Cathay Pacific, Rolex (outside the U.S.), Intel, Colloquy, Sony, Adobe, Box, Charles Schwab and Morgan Stanley. While its sister publication, The Atlantic, was embroiled in a non-scandal scandal around sponsored content, Quartz has displayed an openness in how it creates advertising content for its advertisers. There‘s a strict separation of advertising church and editorial state. The ads, which sit in the editorial content stream, are created by both the brand and Quartz‘s marketing team. Ads are clearly labeled as ―sponsored content‖ and sold on a CPM basis, unlike others, like Buzzfeed, that charge a set price for a cluster of sponsored posts. And advertisers notice the quality of the ads that run in Quartz. ―As an advertiser, native gets beat up, but Quartz has a nice native format,‖ said Ben Kunz, vp of strategic planning at Mediassociates. ―It comes off as a value to the reader. They‘ve done a good job of defending editorial standards and native, which is smart. If I were to bet on them, I‘d say they succeed.‖ Ad revenue is up 112 percent from the first quarter to the second quarter. Lauf added that Quartz hit its target revenue through the first half of the year but wouldn‘t disclose revenue figures. Yes, this a common pattern in the media world, especially when a publication is starting from scratch, but it‘s a clear signal that Quartz is gaining traction among advertisers and audiences. Many advertisers want to reach that elusive high-net-worth audience. Research such as the Mendelsohn Affluent Survey finds the high-net-worth crowd are voracious consumers of digital. They use multiple devices to access the Internet. They are also heavy readers of magazines. Quartz seems a smart play to put all this together to reach high-net-worth audiences in a magazine-like tablet format. Quartz has also beefed up its staff across the board. It‘s gone from three marketers and two sales people at the start to now eight marketers and seven sales people, plus rep firms in London and Singapore. It‘s also grown its engineer and developer team, now up to five. Lauded for its design and user interface, Quartz is showing how a digital-only outlet can tap into the powers of design. ―We‘ve learned the real importance of engineers and developers; the extent to which they can make a difference in your world, both on the ad side and in general on the product side,‖ Lauf said. ―Those guys are so integral to everything we do.‖ On the traffic front, Quartz is growing, reporting 2.3 million monthly uniques last month. Comscore puts it at a more down-to-Earth 882,000 desktop and 333,000 on mobile, which is a shade under The Financial Times (1.2 million) and The Economist (2.3 million). Not too bad for the new kid on the block. Quartz was billed as a mobile-first destination, and as such, it eschewed creating a homepage. Instead, it focuses on the article page, and the internal traffic numbers point to how Quartz content is being read and shared. Lauf said that 31 percent of Quartz‘s traffic comes from direct, and more than 50 percent comes from social. Mobile, he said, fluctuates between 25 and 31 percent. Babelfish Articles May 2013 - July 2013 15-7-13 Page 112
  • 113. ―The punchline is this shows how the rapid transition of consumers to smartphones and tablets, and creates a window of opportunity for new publisher entrants to grab share,‖ Kunz said. ―If I were a digital publisher, I‘d think it‘s game on.‖ Why gamification is serious business February 2013 In 2011, Volkswagen Group invited consumers in China, its largest and most important market, to help the company develop new versions of the ―people‘s car.‖ Participants were given a tool to help them easily design their new vehicle, and they were able to post their designs for others to view and to pick their favorites. The results were tracked on leaderboards so contestants and the general public could see how the competing designs were faring. Within 10 weeks, the online crowd-sourcing campaign had received more than 50,000 ideas. By the end of the campaign‘s first year, at least 33 million people had visited the site, and the general public had chosen three winning concepts. One of them, a two-seater, zero-emissions vehicle that hovers over electromagnetic road networks, was turned into an online video that swiftly became a viral hit on YouTube. Small wonder that VW, acknowledging its long-term importance for the company‘s future product development strategy, has announced that the project will continue indefinitely. The People‘s Car Project owes its success to VW‘s recognition that participation in a popular business initiative needs to be not only enticing and rewarding but also engaging and fun—more than a bit, in fact, like playing a game. Indeed, the name of the elimination section of the design contest—P.K., which stands for ―player kill‖—was borrowed directly from the sort of multiplayer, online games that millions now play worldwide. The application of such game-like elements to the sort of business challenge that VW faced is known as ―gamification‖—and it‘s catching on fast. Gartner research projects that by 2014, more than 70 percent of Forbes Global 2000 organizations will have at least one games-based application, and that by 2015, half of all companies that manage innovation processes will have ―gamified‖ them. Alluring applications However, these companies are not, either literally or figuratively, playing games. Gamification is serious business. The companies leveraging it are taking the essence of what makes games so alluring (a shared sense of purpose, challenge and reward), decoding the mechanics that make them work (personalization, Babelfish Articles May 2013 - July 2013 15-7-13 Page 113
  • 114. rankings and leaderboards) and then applying these mechanics in a multitude of imaginative initiatives to help enhance customer loyalty, motivate shoppers to buy and provide more compelling mechanisms for retaining and encouraging talent. The approach can be especially effective when applied to complex challenges. Foldit, for example, is an online puzzle game devised by scientists at the University of Washington in Seattle to help them understand the structure of proteins. In 2011, the game‘s 240,000 registered players were invited to configure the structure of an enzyme associated with the AIDS virus. Tracking their competing scores through shared leaderboards, Foldit players solved a problem in three weeks that had stumped scientists for 15 years. The results of gamification in a commercial context can be equally impressive. Witness, for example, the success of Nike+, the sports shoe company‘s mobile and Facebook app, which lets users establish personal running goals and rewards them for reaching milestones with congratulatory messages from celebrity athletes. Nike+ membership soared 40 percent in 2011, helping boost revenues in the company‘s Running category by 30 percent. The potential power of such games-based applications and ventures has been magnified by the convergence of two major trends: the coming of age of Generation Y, and the overcrowding of the digital space, which makes it harder for companies to stand out. Generation Y, the demographic born between 1980 and 2000, has not only grown up in a digital world. They are also enthusiastic online gamers, driving the growth of an industry that Gartner reckons will be worth $112 billion globally by 2015. These consumers are rapidly becoming employees as well—by 2015, they‘ll form the majority of the US working population. And they like to be communicated with, both when shopping and at work, via the game-like mechanisms they plainly love (see Sidebar 1). The appeal of game mechanics extends well beyond this key cohort, however. As the growing predominance of digital media indicates—in the United States, online advertising was forecast to overtake print in 2012 and is fast closing in on TV—many older adults are also becoming digital-device-savvy. And they are often just as keen as the young to compete with their peers and publicize their accomplishments— the essential principles of gamification. In fact, 37 percent of US gamers are older than 35. In both the United Kingdom and the United States, adult social gamers—people who play games that include strong social elements—now constitute the majority of players on mobile devices. Companies, of course, have been applying game-like elements to achieve business objectives for decades. Consider the Solitaire application that Microsoft included in its release of Windows 3.0 in 1990 to help acquaint users with the newly introduced click-and-drag functions of the mouse. But the Digital Age has thrown up new challenges, and the application of game mechanics offers companies the chance to crack one of its particularly critical conundrums: how to penetrate the walls that consumers have erected to filter out the deluge of information and opportunities that increasingly clutter their digital spaces. Today‘s consumers are more likely to junk business marketing messages than act on them. But if a trusted source serves as the messenger, campaigns can become collaborative exercises, utilizing social networks to spread the message—and applying game mechanics to engage more and more participants. Consider, for example, TripAdvisor, the US-based travel website, which boasts more than 75 million reviews and opinions—contributed voluntarily by individuals who clearly enjoy their status as trusted sources of valued information. Collective values In some regions, notably Southeast Asia, a peculiar combination of well-entrenched collective values and unusually developed digital enthusiasm is driving an exceptionally healthy appetite for gamification initiatives (see Sidebar 2). But reaching consumers by these means in any geography requires an acute understanding of what makes games so compelling. In Accenture‘s experience, seven elements are especially significant. 1. Status Because gamers are motivated by the recognition of others within their social community, business solutions leveraging game mechanics need to ensure that players‘ reputations can be enhanced. Consider, for example, Stack Overflow, a site for programmers and digital geeks that synthesizes wikis, blogs and Internet forums. Users are invited to submit answers and solutions to questions and challenges posed by their peers, through which they earn badges that appear on their user pages. Babelfish Articles May 2013 - July 2013 15-7-13 Page 114
  • 115. 2. Milestones Levels are everything in gaming, and enabling participants to perceive progress through incremental accomplishments is vital to sustaining interest. Case in point: Starbucks Corp.‘s rewards card, which awards a star for every coffee purchased. Users qualify for free drinks or food when they earn a certain number of stars. 3. Competition Accenture‘s own Steptacular application, which is designed to encourage employees to improve their fitness by walking more, enables participants to compete with one another by sharing and comparing their achievements—a major motivator in maintaining engagement. It also rewards them with ―Celebrating Performance‖ points that can be used to redeem such products as iPads and cameras. 4. Rankings Visual displays of progress and rankings help participants track their performance against both their own goals and the performance of others. The rankings tap into people‘s natural competitiveness and encourage them to do better, boosting repeat visits motivated by the desire to improve their position. In the United States, for instance, customers at more than 60 electric utilities receive home energy reports generated by Virginia-based software-as-a-service provider Opower. These reports include their ranking versus their neighbors and targeted tips designed to motivate them to reduce energy consumption to levels ―normal‖ in their neighborhoods. The most energy-efficient homes are recognized with smiley-face emoticons. But more important, users are able to see how they are doing in relation to some aggregate of others in their neighborhood, and that can motivate them to try to improve. 5. Social connectedness People typically join a game because their socially networked friends are playing it—and enough ―likes‖ can unleash a tidal wave of interest. So successful gamification initiatives need to create a strong sense of community. In 2010, for example, when the Japanese soft drink seller Pocari Sweat decided to embark on an aggressive marketing campaign for its electrolyte drink in Indonesia, an online game called Ionopolis played a critical role in the launch. Nearly 94,000 people signed up to collaborate in defeating a host of comic-book monsters hell-bent on dehydrating a virtual city. Players buy drinks in return for in-game benefits, including codes to fill their hydration meters; they can also post status updates on Facebook or Twitter, and check into specific locations on Foursquare to perform certain tasks. 6. Immersion reality With their detailed graphics and exciting animation, digital games make players feel completely immersed in their virtual reality. And companies seeking to apply games mechanics to their business take visual stimulation seriously. Witness the video script used to market Nike+: ―Picture yourself out on a run. With Nike+ that run becomes an endless parade of information about you—how fast you‘re going, how far you‘ve gone, how long you‘ve been at it. . . . Got any friends? Awesome. Put ‘em to work. They can cheer you on while you are running by posting comments to your Facebook page. Better yet, challenge them. If they‘re really your friends, they‘ll still talk to you while they‘re choking on your dust.‖ 7. Personalization The ability to customize promotes a sense of ownership in the game through self-expression.SuperBetter, for example, is a social platform designed to help people recovering from an illness or an accident (or, indeed, people who just want to feel better about themselves) boost their personal resilience. Users describe their challenges or goals and receive personalized ―power-ups‖—strategies to beat anxiety, for instance, or customized diet plans—as well as ―bad guys‖ to avoid, and personalized ―quests.‖ They can keep track of their progress—and share it with others—via a customized to-do list. Companies don‘t need to utilize all of these options to harness the power of gamification. Much depends on whether the initiative is targeted at consumers or employees, and whether its mission is to promote products or processes. Game mechanics are probably most effective in tackling challenges that have been difficult to solve. Consider, for instance, the Google Image Labeler game, which was online between 2006 and 2011 and helped Google create better matches between keywords and images by inviting people to compete to extract the multitude of meanings behind millions of images. Babelfish Articles May 2013 - July 2013 15-7-13 Page 115
  • 116. And the gamification approaches need to be targeted where there is significant demand—in markets or employee groups where Generation Y predominates, for example, or by leveraging channels such as smartphones, tablets and social networks where games-based applications will be familiar and expected. Nor should applying games-based solutions involve a revamp of the business model. Companies can start small—with reward points per purchase, for instance. And they could benefit by forging links with digital marketing agencies and specialist, turnkey providers to boost their knowledge and understanding. There is no perfect place to start—but neither is there any time to waste. The benefits of gamification may take time to realize, but in an increasingly interactive world, they are likely to deliver enduring competitive advantage. For further reading ―Gamification and sustainable behavior change in the workplace,‖ Accenture 2012 ―Playing Your Digital Cards Right,‖ Accenture 2012 Sidebar 1 | Generation Y: Learning from the source Among the expectations that distinguish Generation Y—the first to grow up with the Internet and smartphones—from its predecessors is the assumption by its members that they will be communicated with via mechanisms that imitate the competitive, connected and personalized world of the online games they play so enthusiastically. That should make Generation Y an ideal test bed for attempts to apply the principles of gaming to marketing, product differentiation, brand advocacy and employee motivation. Yet despite its preferences and their concomitants—an apparent indifference to privacy issues, a tendency to text rather than talk and a desire for instant gratification—Gen Y will be a hard nut to crack. The under-35s fully anticipate that they will be ―pitched‖—but they also have clear views of what they want from those doing the pitching. They demand authenticity, in both voice and content. And they will shun, and even mock, approaches they perceive to be dishonest and manipulative, preferring to place a premium on the recommendations of socially networked ―friends.‖ As employees, they can be equally picky. They typically like to multitask and tend to demand considerable job flexibility. Indeed, their desire for constant stimulation and personal recognition, if unfulfilled, can make them fickle workers who will jump ship all too readily. However, with more and more of this decisive demographic entering the workforce, the opportunity to learn from them directly is growing too. At a time when the design, development and testing of games-based initiatives is in its formative stages, tapping the talent of a generation that so instinctively understands the power of gaming could prove pivotal. (Back to story) Sidebar 2 | Southeast Asia: A passion for gaming Few regions of the world offer more promising territory for games-based marketing initiatives than Southeast Asia. In Singapore and Malaysia, for example, 95 percent of the population—10 percent more than the global average—owns a laptop or PC. And Singapore boasts the world‘s third-largest smartphone penetration, after Saudi Arabia and the United Arab Emirates. This digital predilection also influences the way people interact. Sixty-five percent of Indonesian Internet users are also daily users of social media, compared with just 54 percent of Internet users globally. Nearly half of Internet users across the region play online games every week, 6 out of 10 of them via social networks. And the regional digital gaming market is expected to more than double between now and 2016, accounting for nearly 60 percent of global sales. What‘s more, Southeast Asians respond with alacrity to the commercial messaging embedded in social media. Nearly half of Malaysian gamers, for example, search online to learn more about a product or brand they first saw advertised in a game. And almost three-quarters of Indonesia‘s social network users agree that such networks are good places to learn more about brands and products. When Citibank launched a credit card aimed at 21-to-35-year-old Singaporeans, for example, it incorporated social media features designed to let them personalize their experiences. Users could gain points by checking in at specific locations, such as restaurants or stores, and ―sharing‖ or ―liking‖ deals on Facebook. They could also vote for a particular experience or location and win a special Deal of the Month from winning establishments. Digital familiarity isn‘t the only reason why the region matters so much to organizations looking to apply game mechanics to their marketing and recruitment drives. It also contains a high proportion—10 percent Babelfish Articles May 2013 - July 2013 15-7-13 Page 116
  • 117. higher than in China, and 14 percent higher than the United States, for example—of Generation Y, the demographic most likely to respond positively to such gamification initiatives (see Sidebar 1). In Southeast Asia, moreover, this generation is well integrated within often extended families. Indeed, the strength of traditional collaborative values—known locally as kampong, or a village-based sense of community—can help mobilize broad swathes of the community as campaigns go viral, providing the collective legitimacy so important to launching products and establishing a presence in the region. (Back to story) About the authors Marco Ryan leads Accenture Interactive in the ASEAN region. He is based in Singapore. Andy Sleigh is the director of research at Accenture‘s Management Consulting Innovation Centre in Singapore. Kai Wee Soh is an analyst with Accenture Interactive. He is based in Singapore. Zed Li is a consultant with Accenture Interactive. He is based in Singapore. Guess who controls the future of TV February 2013 Picture a typical nine-year-old watching TV today. She probably has a tablet in her lap, ready to check out videos related to the Animal Planet special she‘s watching. Or perhaps she‘s borrowed her big sister‘s phone so she can vote on this week‘s episode of Dancing with the Stars. By the time she‘s old enough to head off to university, however, her TV viewing experience will be markedly richer. By then, she may be inviting her friends over to watch the ―sitcom‖ filmed by her classmates and loaded into her home‘s cloud-based content library. After her friends leave, she might pick up the easy-touse TV remote to take a high-resolution tour around the Beijing neighborhood where her big sister lives. Or maybe she‘ll search for a favorite scene in one of theTwilight movies. Good-bye to the familiar old TV set? Au contraire. For years now, the demise of the popular appliance has been predicted as the Web has claimed more and more of our screen-viewing time. The fact is, the TV is here to stay. Its role in delivering compelling viewing experiences—collective and individual—will continue. However, the big screen in the living room is indeed undergoing a metamorphosis, because what goes on behind the screen is changing dramatically. For most of us, the TV will develop as an even more valuable vehicle for entertainment and, increasingly, for education and information. But for business leaders up and down the media value chain—from filmmakers and broadcast channels to Internet service providers to ―last mile‖ communications operators— the reinvented TV is a huge disruption. Babelfish Articles May 2013 - July 2013 15-7-13 Page 117
  • 118. There will be winners—businesses that quickly grasp the nuances of the resulting changes in the creation, financing, production and delivery of content. But others may find themselves facing fierce new competition. Take, for instance, the pressure the cable companies are facing from so-called over-the-top (OTT) providers, such as Netflix and Hulu, which send their content through the Internet. In short, we‘re now seeing the collapse of the walls that previously excluded new entrants to the TV business. So how can the TV still be relevant in a tablet and smartphone age? To be sure, TV viewing time has become fragmented—the result of busy lives that see consumers recording, for example, the Boardwalk Empire episode that the school board meeting forced them to miss. And of course, ―screen time‖ today is shared with laptops, phones and tablets. Accenture‘s latest research on consumer viewing habitsfinds that fully 62 percent of TV viewers are concurrently using a computer or a laptop and 41 percent are using a mobile phone—messaging friends about a sitcom joke or fact-checking politicians‘ claims, perhaps (view infographic). Coupled with the widespread availability of high-speed wireless Internet, today‘s viewing experience is more interactive, more consumable and far more sharable in real time. Dominant medium But the truth is that the living room screen remains a dominant communications medium, and will continue to be so. There is still no substitute for the collective viewing experience of watching the big game or the season finale of a popular drama. Plus, the new Accenture study reveals that young people are much more engaged with TV than might be supposed. Even 25-to-34-year-olds view, on average, almost 140 hours a month of ―traditional‖ TV programming— more than 20 times as many hours as they spend watching video on the Internet or on their phones (see chart). Babelfish Articles May 2013 - July 2013 15-7-13 Page 118
  • 119. And nearly half of all users still sit down in front of the TV—not their smartphones or tablets—to watch some type of OTT video content. Another relevant measure: YouTube users average five or so hours of video viewing per month—a figure that is dwarfed by the time they spend in front of the TV. Bottom line: Television still has great power to pull audiences. And big changes are coming that will continue to engage viewers. Not too many years from now, we will be able to use the TV unit to access an entire ecosystem of content—richly immersive, far more of it fully interactive and all of it on-demand via the Internet. It will be easily sourced from content catalogs and accessed with a handheld device—a next-generation smartphone, perhaps, or a dedicated device that is as simple and intuitive to use as today‘s remote. Just as significantly, individual consumers, armed with high-performance hardware and software, will become content creators, able to provide more of what the news channels deliver. (Think of higher-quality versions of the public‘s mobile-phone news bulletins of Hurricane Sandy‘s devastation.) At the same time, the major movie studios are meeting the growing demand for premium video content. Look at the money pouring into blockbusters—$150 million to produceSkyfall, the latest James Bond film, for example, and the estimated $250 million spent on the newest Batman movie, The Dark Knight Rises. These movies are being engineered during original production to maximize the downstream opportunity in extras, web videos, apps and so on. And, increasingly, content is as likely to be distributed by an Amazon or a Google as it is to show up courtesy of Bravo. King of content Network executives and cable operators don‘t need to look far to see what is rocking their world. The easy answer, of course, is ―technology‖—from the TV hardware to the social media with which to share content to the cloud services that make it effective to store vast amounts of data. The fact is, however, that the consumer is the undisputed king of content. Over the past decade, control of the viewing experience has shifted rapidly to the one who holds the remote. TiVo and many other digital recording systems have made it easy for people to choose when they watch their favorite programs. But consumers also want to be able to personalize the services they consume, with search, recommendations and social features becoming increasingly integrated across media. Accenture found that 64 percent of them prefer using genres—that is, content types such as ―spaghetti Westerns,‖ ―cartoons‖ and others—as search criteria for finding new video content. And 43 percent prefer finding new video content by using personalized recommendation engines that track what they‘ve watched and suggest similar content. In a similar vein, 28 percent of users have already created video playlists on their current video services, such as Netflix and YouTube. These companies make it ever easier to do this, particularly by using historical behavior to recommend relevant viewing experiences. The story is much the same with music services such as Pandora and Spotify as well as Amazon.com with a whole range of merchandise. Babelfish Articles May 2013 - July 2013 15-7-13 Page 119
  • 120. At the same time, consumers are becoming distributors. Social media users have an average of 3.2 friends who post videos at least once a day; almost four out of 10 consumers post video online via social media (view infographic). More than half of the respondents polled by Accenture would be interested in recommending video to others as part of belonging to a video service. This is not just about controlling content; it‘s about content creation as well. The term ―prosumer‖ is entering the language to describe talented amateurs who use sophisticated but affordable consumer technology to produce quality news reports or instructional videos, for instance. Today, aspiring adventurers can buy a GoPro camera for less than $300, attach it to their mountain bike or scuba mask, and capture astonishingly high-quality video that is easily edited on any laptop and just as easily shared via social media. Indeed, the growth in so-called user-generated content has exploded. YouTube now has more than 800 million unique users every month, and while the vast majority of them are watching, growing numbers of them are posting content that they or others they know have generated. The capabilities are developing so quickly, and spreading so widely, that it‘s safe to say that prosumer content will soon provide serious competition for some genres of professionally produced content—news footage, for instance, and some reality TV shows. Consumers are even changing the funding of content creation. (see Sidebar 2) If those technology-enabled factors are pushing the media industry from one side, its key sources of revenue—notably advertisers—are pulling it on the other side. Increasingly, businesses expect to be able to measure what they get for their investments. Traditional media has always had a hard time delivering precise measurement, and while the explosion of Internet media is exacerbating the situation by further fragmenting viewing attention, it is also creating opportunities for better measurement. Following the money So who wins in a new media world? The consumer does, of course. But the other winners are likely to come from outside the boundaries that have defined the industry over the past half-century. It is not a stretch to say that companies such as Amazon and Google will make big gains, as will others that grasp the significance of the disaggregation of traditional media value chains and the development of new forms of media value creation and consumption. We‘ve already seen the arrival and growth of businesses that offer new ways for consumers to access digital content. New entrants like YouTube and Netflix are also now creating their own content to differentiate their brand and sidestep the battle for content rights. Amazon, Google and Apple already offer consumers access to significant amounts of content, even though it is not at the core of any of their businesses. For instance, Google‘s core business is search, yet it streams more than 4 billion hours of video per month via YouTube. Babelfish Articles May 2013 - July 2013 15-7-13 Page 120
  • 121. Apple generates the vast majority of its income from sales of its devices, yet it made $2 billion in revenue in the third quarter of 2012 alone from its iTunes Store, App Store, the iBookstore, sales of iPod services, and Apple-branded and third-party iPod accessories. The newcomers are following the money. They understand that success in the media sector has revolved around premium content, and that it will continue to do so in the future. Which explains YouTube‘s announcement, in October 2011, of a $100 million investment in premium channels and the announcement by Netflix in May 2012 of its plan for a $185 million, five-year investment in original content. Just two examples of Netflix‘s investments: The new season of Arrested Development, releasing shortly, and House of Cards, the US version of the UK political series of the same name directed by David Fincher and starring Kevin Spacey. The tectonic shifts underneath the media industry will permanently reshape the landscape, altering everything from the flow of advertising dollars to the makeup of the industry itself. To that last point: Some of the writing may already be on the wall. In recent months, some pure OTT content providers have gone from strength to strength. Netflix now has more subscribers than many pay-TV operators in the United States. That is an astonishing statistic, given that Netflix was founded only in 1997. At the same time, the most forward-thinking of the traditional operators are making significant moves to properly position themselves in the new media world. To take just two examples: British Sky Broadcasting is making its existing content offerings available on as many devices as possible, and YouView—a new open-platform system that makes IP and broadcast TV technologies easily accessible to viewers through one intuitive user interface—is backed by such industry giants as BT and the BBC. (see Sidebar 3) Removing the guesswork Traditional subscription models are not the only ones at risk from the new media model. Advertising will also have to accommodate the steady shift to digital content and the inexorable move to OTT content, together with the fact that more and more content is being viewed holistically, with digital entertainment experiences encompassing TV, film, web video, gaming and apps. Thus far, the managed migration of rights to new platforms has preserved traditional TV advertising and pay-TV subscriptions as the greatest drivers of revenue. But the industry may be about to change too fast for that to remain true. Possible signs of things to come: Subscriptions could well shift away from bloated bundles to à la carte options that allow consumers to pick and pay for exactly the content they want and no more, from a range of different providers—new Internet-based players among them. Already, chief marketing officers everywhere are scrambling to reallocate and optimize marketing budgets across platforms. They are getting some help from increasingly sophisticated customer data collection and analytics tools, which are beginning to enable new forms of cross-screen targeting and measurement. To a large extent, digital removes the guesswork from traditional advertising models—digital data is more accurate and more granular than its analog predecessor. Babelfish Articles May 2013 - July 2013 15-7-13 Page 121
  • 122. But there is still much to do before the typical marketing department is able to effectively use sophisticated analytics to deliver premium, personalized, interactive advertising, and create a richer, more detailed understanding of specific consumer groups—or fan bases—that will respond to new offers. So what does the new face of TV mean for today‘s established media businesses? The ascent of the consumer requires business models that are built around consumer needs rather than those of a particular channel, platform or advertiser. A single shared view of the customer—often across different channels—is a prerequisite for a successful, consumer-focused multiplatform strategy. The businesses that adapt successfully will need to try different approaches concurrently. They‘ll need to create and run with hybrid business models and constantly reevaluate their place in the media value ―ecosystem‖—perhaps taking on new roles—so they can spot and capture new revenue opportunities. In short, players all across the media value chain now have to plan for a new and fundamentally different media delivery architecture. Ten years from now, the TV will still be one of the largest pieces of furniture in the living room, and it will still have a central place in family life. But the TV business overall may be unrecognizable—certainly when compared to the operating models and industry makeup that prevail today. The decisions that new entrants are making today up and down the media value chain are already forcing some serious rethinking within the established media industry. The traditional broadcast networks—those most at risk of disruption—must act more promptly and assertively than they are accustomed to if they are to survive in the new world. But the decisions being made by the Amazons and Googles have ramifications far beyond the media business itself. They will color the choices that advertisers—business-to-business as well as business-toconsumer—will have to make. They will have an impact on the world of education. They may well change the directions of development of a host of new content-delivery products. And they could even reshape the role of media as it reflects and affects public policy. To paraphrase the old political maxim: Where TV goes, so goes the nation. Sidebar 1 | Reinventing TV: Nine key questions for established media players There are dramatic changes in the television industry going on behind the screen. Traditional media players must respond by reinventing themselves, a process that begins with self-examination. Crucial questions for the C-suite management team include: 1. Should traditional media and entertainment companies reinvent themselves as consumer businesses? If so, how? 2. Can new digital economic models be made to work for all parts of the media value chain? 3. How might new OTT offerings threaten the subscription pay-TV giants? 4. What new types of partnerships and collaborations should media businesses consider in order to better match consumers‘ new digital experience requirements? Babelfish Articles May 2013 - July 2013 15-7-13 Page 122
  • 123. 5. Will new industry business models sustain investments in high-quality content—or will profits be channeled elsewhere? 6. How can the ad industry‘s traditional players collaborate to move toward a new world of multiplatform advertising? 7. How can data and analytics be used to galvanize new business models? 8. Should traditional vertically integrated media companies resist or embrace open platforms? 9. How do content companies maximize revenue across linear and on-demand as the balance shifts toward the latter? Sidebar 2 | Not waiting for deep pockets By 2010, a movie director named Steve Taylor secured funding to create a film adaptation of Donald Miller‘s book, Blue Like Jazz. The following year, the film lost the support of a major investor, forcing Taylor to stop production. That‘s when two fans of the book stepped in. To raise the $125,000 required to resume production, they created a Kickstarter webpage called ―SAVE Blue Like Jazz! (the movie).‖ The campaign reached its funding target of $125,000 in 10 days—and blew past it, becoming the most successful Kickstarter fundraiser of 2010. In total, $345,992 was raised by 4,495 backers—an average of just $76.97 each. In April 2012, Blue Like Jazz opened nationwide across 136 screens. In just eight weeks—before distribution internationally and through rental and cable channels—it had netted half of the movie‘s total budget. It is just one of several examples of crowdfunding. The trend is borne out by Accenture‘s recent consumer research: 36 percent of digital consumers would be willing to donate small sums to fund their favorite movie or TV program. (Back to story) Sidebar 3 | UK viewers now get ―all channels‖ digital TV In the summer of 2012, the British public got another way to watch ―telly.‖ The new Internet TV service, called YouView, has been hailed by some industry insiders as the natural successor to Britain‘s current model of free-to-air TV. Some researchers expect that 3 million UK homes will have YouView by 2015. YouView combines the United Kingdom‘s free-to-air digital channels with on-demand content, all delivered without subscription. An easy-to-use set-top box brings together IP and broadcast TV technologies, making them accessible to viewers through a single consistent and intuitive user interface. The service is backed by a consortium of seven partners, including the country‘s main terrestrial broadcasters (BBC, ITV, Channel 4 and Channel 5), two ISPs (BT and TalkTalk) and a network services provider, Arqiva. The service‘s big innovation happens behind the screen. Its application platform gives consumers access to a vast array of content options. For example, if the box is connected to a broadband line from a partner ISP, then an application providing that ISP‘s IPTV service will appear automatically. As the number of content sources in its ecosystem grows, YouView‘s attractiveness to both consumers and to potential new content, devices and service providers will continue to increase. At launch, more than 140 content providers had signed up to add their content to the YouView platform; today, more than 300 providers are interested. YouView is not simply another version of a web-enabled TV service. It features a single, consistent, intuitive user interface (integrating on-demand, catch-up and broadcast TV). It includes a unique content discovery platform: a central catalog that allows global search, browsing by genre/popularity across content providers, and a ―backward-looking‖ electronic program guide (EPG). ―Unlike a lot of smart TVs, it doesn‘t zone off on-demand content in a separate section that you access from another menu—the whole lot is integrated,‖ notes one reviewer. Its open application platform can be used by any participating content provider, offering consumers a tremendous range of content. It also upgrades easily, accepting new features over time such as behavioral targeting and predictive recommendations generated by analysis of social media data—such as iTunes Genius music recommendations. YouView provides a strong springboard for innovation. Its unified and open ecosystem is expected to disrupt the existing TV business model, affecting content providers, broadcasters, ISPs, advertisers, settop-box manufacturers and many other technology enablers. And it offers abundant opportunities to create new products and features, becoming increasingly attractive to consumers and providers of content, devices and TV services. To date, consumer feedback on the user interface has been very positive. UK telecom company TalkTalk— just one of multiple sales channels for YouView—signed up 29,000 YouView customers in the first month Babelfish Articles May 2013 - July 2013 15-7-13 Page 123
  • 124. after launch. A thousand new customers are signing up each day for the service, according to a TalkTalk spokesperson. (Back to story) About the authors Robin Murdoch leads the strategy group within Accenture Communications, Media & Technology. He is based in Seattle. Youssef D. Tuma leads Accenture Digital Services for the United Kingdom. He is based in London. Marco Vernocchi leads the Media & Entertainment group within Accenture Communications, Media & Technology. He is based in Milan. Will Twitter Cards Revolutionize Lead Gen? Frans Van Hulle 06.05.2013 Frans Van Hulle is the CEO and co-founder of ReviMedia Twitter is launching new lead generation cards in an effort to make Twitter a better tool for advertisers. This is great news for advertisers, who can now build their email marketing list right in Twitter, but a few questions and concerns remain. What‘s great about this strategy is that user information is automatically sent by clicking a button, rather than depending on users to to fill out forms themselves. Through expandable tweets, users can now express their interest in certain products and offers by sending their personal information associated with their Twitter handle. It is also better than just a ―like‖ because it gives marketers some specific data, like an email address. While Twitter cards sound promising, there are several concerns for advertisers. One is how this Twitter card allows advertisers to target their lead generation. Targeted lead generation is crucial, and this card doesn‘t really seem to allow targeting other than monitoring whether or not people respond to TV commercials. Moreover, if you can only promote offers to your own followers, it‘s not clear how can you branch out and produce volume. Another big concern is control of the data. Lead generation companies like to be in control of their data, but a large share of that data is managed by Twitter. Twitter handles and associated email addresses are forwarded to advertisers. However, there are limited tools to follow up on and convert leads into sales, even though there may have been an initial conversion from tweets. Quality control could be another problem. It seems like these types of Twitter cards could be easily abused for spam. Moreover, these tweets only seem to be available for paying users, which really makes them more like ―sponsored tweets‖ than lead gen cards. As reported by Digiday yesterday, Twitter is also launching an exchange-like service that allows brands to retarget Twitter users, based on their search history. This will enable advertisers to target users not only based on their demographics or social network, but also based on purchase intent. It will be interesting to see if this planned ad exchange will address any of the issues above. It may be a better tool to grow the number of Twitter followers than Twitter Cards. This is certainly a very exciting opportunity and a great step towards making Twitter more lead gen-friendly. Together with the planned ad exchange, Twitter cards could be a game changer. US digital adspend soars NEW YORK: US internet advertising revenues increased by 15.6% to a new record level in the first quarter of 2013, a new report has shown. A survey conducted by the Interactive Advertising Bureau, the trade body, and PwC US, the consultancy, as part of the ongoing IAB Internet Advertising Revenue Report, found that digital advertising revenues amounted to $9.6bn in the first three months of 2013, compared to $8.3bn in the same period a year earlier. Apart from a period of relative slowdown during 2008-09, digital advertising revenues have increased steadily over the past decade, with annual end-year peaks around the Christmas shopping period, the report suggested. Babelfish Articles May 2013 - July 2013 15-7-13 Page 124
  • 125. "Consumers are turning to interactive media in droves to look for the latest information, to connect with their social networks, and simply to be entertained," said Randall Rothenberg, president and chief executive of the IAB. "This first quarter milestone clearly illustrates that marketers recognize that digital has become the go-to medium for all sorts of activities on all sorts of screens, at home, at the office and on-the-run." Earlier IAB data showed US consumers spending more time online at the expense of traditional media, with social networks and online video the fastest growing usage areas. Consumers spent an extra seven minutes on social networks during 2012, while online video saw a similar increase thanks to the growing amount of television and film content available to viewers. Rothenburg's comments were echoed by his colleague Sherrill Mane, senior vice president, Research, Analytics & Measurement at IAB, who noted that double-digit annual growth was continuing even as the online advertising business matured. "This is an accomplishment that can be attributed to growing recognition by marketers that digital advertising is a critical part of all marketing in today's world," she said. Data sourced from IAB; additional content by Warc staff, 5 June 2013 Read more at http://www.warc.com/LatestNews/News/EmailNews.news?ID=31491&Origin=WARCNewsEmail#1zyhr1cm KHBgfpSk.99 If Content Is King, Multiscreen Is The Queen, Says New Google Study INGRID LUNDEN, Wednesday, August 29th, 2012 New research out from Google, working with market analysts Ipsos and Sterling Brands, puts some hard numbers behind the often-noticed trend of how people in the U.S. are using a combination of phones, tablets, computer and TVs to consume digital content. While each of these has a significant place in our consumption today, their real power lies in how they are used together — in combination, 90% of all of our media consumption, or 4.4 hours per day, is happening across all four (which doesn‘t leave much room for paper-based books and publications; or for radio). This not only has implications for how content is designed, but also for how companies like Google will continue to hedge their bets across all four screens. The state of TV viewing perhaps illustrates consumer usage best of all: polling 1,611 people across 15,738 media interactions and nearly 8,000 hours of activity during Q2, the study found that users are watching TV on average for 43 minutes per day session — the most of any screen — but 77% of that time we are simultaneously using another device like a smartphone or tablet. The study also found that although a lot of attention is being focused on smartphones and apps, this device is not only the smallest screen in our world, it‘s also used for the shortest bursts, at 17 minutes per day session, compared to 30 minutes on tablets, 39 minutes on PCs and the 43 minutes watching TV. Babelfish Articles May 2013 - July 2013 15-7-13 Page 125
  • 126. But, while smartphones may have the shortest sessions be used the least overall, they are the most-used when it comes to on-boarding to a digital experience — or sequential device usage, as Google calls it. The research found that a majority of online tasks get initiated on a smartphone while being continued on another device — perhaps with a larger screen for easier use. That effectively means that while your total content experience perhaps doesn‘t need to be designed for a smartphone experience, at least the initial part of it should be, and that part should be integrated with how that content might be used on other devices — so, for example, watching a film first on a phone and then finishing it on a TV, or starting a shopping experience on a phone and finishing it on a PC. The survey also found that smartphones are the most common sidekick device used simultaneously with other screens. This is perhaps unsurprising, given that smartphones are small and in many ways complement the services we get on PCs, televisions and tablets, not just with apps but also with voice and text services. So what are the implications for a company like Google? Since the bulk of its revenue, despite all its other activities, still comes from ads alongside search, if Google eats its own dogfood, I think we‘re likely to see more and more integration with how it lets users search on one device and then continue that experience on another, as well as joined up search experiences across third-party and Google‘s own internet properties — both courtesy of their Google accounts. Babelfish Articles May 2013 - July 2013 15-7-13 Page 126
  • 127. Given that Google will have advertising following users along the way, it also implies Google continuing to make sure that it has a role to play across all of the screens. Whether it does so as a software-only player, or also through an increasing role in the hardware itself, remains to be seen, although products like Google‘s new tablet with Asus, and its new ownership of Motorola Mobility, seem to point in the latter direction. The full research findings are available http://services.google.com/fh/files/misc/multiscreenworld_final.pdf Kids Are Lying Little Weasels Who Lie: Study by Erik Sass, Tuesday, Jun 4, 2013 Stop the presses and take a seat everyone: you‘re going to want to be sitting down when you hear that your kids have probably lied to you -- yes you, the person reading this right now -- according to a new study from McAfee titled ―Digital Deceptions,‖ based on a survey of 2,474 young people (ages 10-23) and parents conducted in April. Among other things, the deceitful little traitors are lying about engaging in potentially dangerous online activities which would alarm their parents. But it‘s actually your fault, you see, because you‘re all just so darn trusting. Overall 88% of youth ages 10-23 say their parents trust them to do the right thing online, according to McAfee, but that trust may be a bit misplaced, as an almost equal proportion (86%) have done things their parents would disapprove of, including sharing an email address (50%), the name of their school (49%), phone number (32%), intimate or personal details like a social security number or who they‘re dating (32%), or their home address (11%). Meanwhile 69% of parents expressed concern that this kind of sharing might be taking place, including just 17% who thought their children might be sharing an email address, 31% for the name of their school, 10% for their phone number, 12% for intimate or personal details, and 5% for their home address. What‘s more, 51% of the young people surveyed said they had posted ―risky‖ comments online, and 24% had posted ―risky‖ photos, while just 30% and 8% of parents, respectively, expressed awareness this might be happening. 27% of young people said they have witnessed cruel behavior online, but just 9% of parents were aware of this. And a large proportion (69%) of young people ages 10-23 said they take measures to hide their online behavior from their parents, but just 47% of parents were aware of this. There‘s also a basic perception gap in the simple matter of how much time kids spend online: on average teens estimate their daily usage at six hours per day, significantly more than the average parental estimate of four hours. Focusing in on social media, 87% of teens said they check their social media accounts daily, with 44% saying they check them ―constantly‖ -- but just 79% and 32% of parents thought this was true of their children. No surprise, parents expressed feelings of frustration and fatigue when asked about monitoring their kids‘ online activities: 74% said they don‘t have the time or energy to keep up with everything their kids are doing, and 72% said they are overwhelmed by modern technology and ―just hope for the best‖ (a strategy notable for having failed every single time it has ever been employed). Read more: http://www.mediapost.com/publications/article/201781/kids-are-lying-little-weasels-who-liestudy.html?edition=60812#ixzz2VHMYFoXH As T/V Fragmentation Explodes, Need for Aggregation Increases by John R. Osborn, Tuesday, Jun 4, 2013 What is aggregation? Miriam-Webster defines it as ―a) the collecting of units or parts into a mass or whole and b) the condition of being so collected.‖ Both the production and distribution of programming that collected audiences to sell to advertisers were simple and straightforward in the 1960s and 1970s. Just look at Harry Crane, the head of media at ―Mad Men‖‘s agency, who is rarely seen stressing over where the ads will run. He had three networks and 28 hours of prime-time television to deal with, where a single top-ten show could reach 23% of all U.S. TV households. And with the remote control a new technology, ad avoidance was a far-away dream for viewers. Networks, programs, advertisers and agencies had a captive audience. The Fragmentation/Aggregation Path Babelfish Articles May 2013 - July 2013 15-7-13 Page 127
  • 128. As audiences and programs began and continued to fragment, more energy has been focused on aggregating audiences by all parts of the traditional television ecosystem: In the 1980s, cable distributors (system operators) aggregated viewers on non-overlapping geographic footprints, having been awarded local monopoly status in exchange for the investment in the cable TV infrastructure. Ad agency media departments served to aggregate media buys and plans for advertisers. By 1990 there were enough channels on most systems to inspire Bruce Springsteen's "57 Channels and Nothing On.‖ And around 60% of US Households had Cable TV. Satellite appeared and grew through the 1990s so that by 2000, 80% of U.S. homes subscribed to cable or satellite. Operators could sell ads within their footprints, but there was no national distributor, so as distribution channels further fragmented through the early 2000s, advertisers and agencies turned to broadcast and cable networks to aggregate audiences now delivered through multiple platforms on hundreds of channels/networks competing for in-home ―eyeballs.‖ And those networks were further aggregated as major media holding companies like Viacom, NBC, Walt Disney/ABC, CBS, Comcast, Cablevision and Hearst bought and in turn sold ad packages across multiple television networks – both cable and ―broadcast on cable.‖ At the same time, full-service ad agencies spun off their media departments into stand-alone media services companies like OMD (Omnicom), Group M (WPP), Carat (Aegis) and Starcom/Mediavest (Publicis), to capitalize on the need for advertisers to get a handle on the expanding number of ways to deliver ads to TV viewers. TV (television) then became T/V (television/video), as the Internet arrived: the most fragmented and global distribution system ever imagined for any product in the history of media. This increased pressure on advertisers, agencies, media companies, cable and satellite system operators and emerging technologies to figure out how to buy and sell an infinite number of possible ad buys to advertisers with very finite budgets. Digital advertising networks led by Google/YouTube‘s AdSense emerged and began to include video by the late 00s.‖ From 2007 to the present, ad networks for video have risen, fallen and are being transformed into Big Data programmatic buying and RTB (real-time bidding) platforms. Here buyers and sellers can be matched, not just on low-cost remnant inventory, but in a more direct and transparent form of execution being referred to as ―programmatic premium.‖ Like high-powered electronic stock trading, the marketplace can move quickly, as buyers and sellers set criteria and execute purchases quickly and in real time without the now sluggish process of direct selling: proposals, reviews, revisions and insertion orders. This new kind of buying is not widespread yet. Still, it seems significant that The New York Times has hired ad veteran Matt Prohaska (a former colleague of mine at BBDO Media) to head up its new programmatic buying efforts, which will compete with traditional television sales organizations in the video arena. Conclusions I believe technology will continue to be more of a player in the emerging T/V business model in this incredibly complex point in history. Here are some of the changes I can see: • • • • • • Consolidation of programmatic buying players (see Video Lumascape for a snapshot of the complex and confusing current ecosystem). More ―programmatic premium‖ buying technologies and options. More advertiser-friendly addressable advertising methods and technologies. Mobile platforms solving the ―no-cookie‖ problem of how to provide addressable ads to advertisers. With more addressable advertising, a shift from advertisers‘ focus on buying a programming environment (traditional surrogate for audience) to audience itself. Platform-neutral T/V buying strategies by advertisers and agencies My reference source for the history of transitions: "Television‘s Next Generation: Technology/Interface Culture/Flow" by William Uricchio (MIT) from ―Television after TV: Essays on a Medium in Transition‖ by Lynn Spigel and Jan Olsson, Duke University Press (2005). Read more: http://www.mediapost.com/publications/article/201710/as-tv-fragmentation-explodes-need-foraggregatio.html?edition=60805#ixzz2VH2M12xk DOOH Shines In Emergencies by Erik Sass, May 24, 2013, 1:50 PM Babelfish Articles May 2013 - July 2013 15-7-13 Page 128
  • 129. While digital billboards still face plenty of opposition in some locales, their advocates have one argument that can‘t be denied. Digital signage is an effective tool for communicating with the public during emergencies, like the Boston Marathon attack and the law enforcement manhunt that followed, as well as missing persons cases and major weather events. Immediately after the Boston attacks, Clear Channel Outdoor reached out to the Massachusetts Emergency Management Agency to offer assistance, according to CCO senior vice president and CMO Vicki Lins. MEMA used seven CCO digital billboards along I-93 and other major roadways in the Great Boston area to broadcast critical public safety messages. In the days following the Boston Marathon attacks, when the FBI was concerned the suspects may have fled Massachusetts, FBI spokeswoman Jacqueline Maguire said partnerships with digital signage operators allowed the bureau to blanket the East Coast with photos of the suspects as far south as Washington, D.C. Photos were displayed on digital bus shelters along with the FBI hotline, 1-800-Call-FBI. Digital signage has proven effective in numerous missing person alerts, Maguire noted, and have even helped generate leads for ―cold cases.‖ Digital billboards along the I-95 corridor also helped the FBI apprehend a serial rapist in the mid-Atlantic area by publicizing composite sketches of the suspect. Overall, Lins said 46 fugitives have been captured as a result of leads originating from someone who saw the images on CCO‘s digital signage. Federal agents have partnerships with a number of other billboard operators as well. Peter J. Elliott, the U.S. Marshal for the Northern District of Ohio, confirmed that digital billboards have played a role in ―capturing many sexual offenders and violent fugitives,‖ including some stories that sound like something out of a movie. In one case, a convict who was incarcerated for raping an 8-year-old managed to escape from prison in northern Ohio and went on the run with a four-year-old girl and her mother. The U.S. Marshals, who had reason to believe the suspect fled to the West Coast, contacted digital billboard partners and ―within seven or eight hours, we had photos up across Southern California and Nevada. Someone saw it in Nevada, remembered seeing them -- supposedly a father and daughter -- in San Diego, called the hotline, and he was arrested,‖ with the girl recovered safely. The whole process took less than 24 hours, according to Elliott, who emphasized the national reach and quick turnaround time afforded by digital billboards. Digital billboards are also critical for disseminating information and instructions during major weather events. Lins noted that authorities in Minneapolis turned to the company‘s billboards to warn the public when tornadoes were approaching earlier this month, helping reach drivers who may not have heard tornado sirens. She added that digital billboards can be updated directly and in real time from an emergency agency‘s RSS or Twitter feed, simplifying the process considerably. Read more: http://www.mediapost.com/publications/article/201129/dooh-shines-inemergencies.html#ixzz2VGbNhuFv Ad-ID for a Cross-Screen World Larry Allen | June 3, 2013 Operating an ad exchange, or (more importantly) participating in one, is much more complicated than anyone ever expected. The "build it and they will come" mentality certainly doesn't work with real-time bidding (RTB) given the number of bidding technologies and selling forums that are in operation today. Sitting at the intersection of buying and selling, I am constantly evaluating trends and looking for clues as to why buyers find inventory valuable. There are obvious things that buyers look for when buying programmatically: consistent daily volume, quality inventory (uncluttered, viewable), high cookie match rates, and most importantly, the right price. Buyers have an advantage, as they are in a position to set the rules by which they buy: bid price, white list, and their data (cookie). And…they hold the budget. Something interesting is happening though. At my company, we operate a premium exchange that we are very proud of. It includes the highest quality inventory, priced right, and it performs very well for buyers. This changes the demand landscape and evens the playing field. Now publishers have a little more control. They have the capability to tier their inventory, to set pricing based on value, and to ensure the right buyers have preference and/or are blocked in bidding. These actions put the publisher in a position to drive yield, manage multiple sales channels, and increase overall value of the inventory. Babelfish Articles May 2013 - July 2013 15-7-13 Page 129
  • 130. Last week the ANA-4A's Joint Policy Committee released a mandate for universal adoption of Ad-ID, the industry standard for identifying advertising assets across all media platforms. This is an exciting new development that will ensure every piece of creative trafficked across devices carries a set of meta data that defines the advertiser name, brand name, product name, creative title, and length. This data has historically been shared in an analog format that was rekeyed many times, causing creative errors. The method was never applied to online creative, as it was heavily TV/radio-focused. The acceptance of a new standard was initiated to help SAG-AFTRA in tracking talent royalties. But there is a larger benefit to online media if this new standard is adopted beyond TV. By consistently applying the Ad-ID to all online creative, publishers can now confidently manage block lists, ensure that ad quality rules are respected, and have a higher level of confidence in what brands/products are associated with their inventory. Ultimately, there is additional targeting and inventory selection that can be created with this data in mind. I can see a world where not only is publisher information transparent to buyers, but where the buyers are reliably transparent to publishers. This would enable a host of resellers and channel demand partners to plug in and increase demand for publishers. To learn more about the Ad-ID program check out http://www.ad-id.org. Get More Bang for Your Buck With Native Video Apps Frank Sinton | June 4, 2013 A few weeks ago, YouTube sent Microsoft a cease-and-desist letter after Microsoft released a YouTube app for its Windows Phone 8 platform. Microsoft authored the YouTube app itself, as a way of compensating for the fact that YouTube hadn't created a native app of its own for the Windows Phone 8 ecosystem. The problem was that in doing so, it was stripping out the ads that YouTube embedded, thus eliminating the ability for YouTube partners to monetize any video plays that take place on a Windows Phone 8 device. Fortunately for YouTube's partners, they don't need to rely on YouTube to decide which mobile platforms it will support in order to still have their content available to mobile users. They can just create a mobile app of their own and make it available through the app store of every smartphone platform available today. But like YouTube, many mobile app developers make choices about which mobile platform they will support with a native app. Creating native apps requires time and developer resources. Determining where to apply both usually comes down to a "most bang for your buck" question. This is a horrible decision to have to make. The greatest potential of mobile video apps is that they allow brands to establish a relationship directly with their target audience without depending on a third-party distributor. They can choose the content, the look/feel of the app, and most importantly, how to monetize that relationship. Video apps can generate revenue via ads, via in-app purchases, and via merchandise sales. What's more, the smartphone home screen is the most valuable branding property there is right now. It's the most personal connection a brand can make with a customer: literally one click away, on their most personal device, which they carry with them all the time. The app icon on that screen is more than just a user interface device designed to launch an app. It's your brand. It's the face of your content. And finally, consider the audience that you're missing out on. Forget the market share figures between platforms, and focus instead on the demographic of their collective user base. The 18-34-year-old age group that video advertisers (and brands) most covet is the age group that's the most active on mobile video. Our data shows that between 35 and 50 percent of this demographic views video on mobile over other formats. For branded YouTube channels, the measure of success is the subscriber count. A "successful" YouTube channel is measured by the number of viewers who have subscribed to that channel's content. On mobile, the metric of importance is the download count. I'd argue this is an even more important metric because it's not measuring how many of a third party's user base is also aligning themselves with your brand or your content. Instead, the download count is a measure of how successful you've been at converting that third party's customers into your own. So, for a brand or developer to aspire to this direct-to-fan relationship via mobile only to be forced to limit their potential reach over something as mundane as platform support decisions is unfortunate at best. Babelfish Articles May 2013 - July 2013 15-7-13 Page 130
  • 131. I can testify that it's entirely possible to create and monetize apps across all platforms so this no longer becomes a difficult decision. It's not at all unrealistic to create a mobile app once, use a platform to optimize that app for every available mobile platform, and then publish that app on them all, simultaneously, and in the process create new revenues using models customized for each platform. That's what we call "bang for your buck." That's how brands can capitalize on the promise of mobility. In Brazil, Be Careful What You Wish For 12/06/2012 @ 11:22AM |5.906 views A swimming pool set up in a Rio de Janeiro slum, or "favela". The poor are getting richer, interest rates are getting lower, but Brazil's economy remains dismal. Brazil is suffering from a classic case of getting too much of what it‘s always wanted. For generations, other than the perennial complaint of the ruling elite, there were two things every Brazilian lamented over. Those two things ruining their lives in paradise were high inflation and the world‘s highest interest rates, easily over 20 percent for decades. If Brazil was a ―serious country‖ (Brazilians tend to believe that their country is more or less a paradox; one part anointed by God, one part pirate ship of fools) governed by democratic minded leaders, it would have low inflation and low interest rates. With that, Brazilians could get credit. Like they do in the U.S. They could buy houses. They could buy cars. They could get store credit cars and do what Brazilians love as much as us Americans, shopping. Brazilians, in their on again off again inferiority complex, would be as serious and as savvy as the Americans they tend to envy. Just ask commentator Diogo Mainardi of Veja magazine. The man is not happy unless he is bashing Brazil or Brazilians and praising the wonders and the genius of American politics and society. Politics aside, Brazil now has all of those economic things it always wanted: fairly predictable interest rates (with the one exception of last year), and cheaper credit. It‘s not as cheap as it is in the U.S. or Europe, but by Brazilian standards, it has never been cheaper. Yet, despite this missing ingredient all Brazilians believed they had to find, the economy is doing worse than the U.S. Third quarter growth was under 1 percent. Interest rates are at record lows, just 7.25 percent. Core inflation is around 5 percent currently. Real interest rates, therefore, are under three percent. Never have Brazilian banks and corporates been able to borrow at such a cheap rate. Babelfish Articles May 2013 - July 2013 15-7-13 Page 131
  • 132. Cheaper credit, higher incomes have Brazilian consumers spending more than ever. Low interest rates have not been able to help this economy, now seen growing under 1 percent this year. Of course, this is not what consumers pay in interest. They pay close to double that. However, for housing, interest rates are collapsing to single digits. That‘s never ever been the case in Brazil. Home ownership is on the rise. In 2008, for example, Brazil had 57.6 million permanently owned homes, 1.8 million more than in 2007, according to the Brazilian Institute of Geography and Statistics, or IBGE. The home ownership rate grew from 74 percent in 2007 to 74.4 percent in 2008; and paid-off homes increased from 69.9 percent to 70.1 percent in the same time period. The populist My Home, My Life– or in Portguês: Minha Casa, Minha Vida — a low cost housing program has brought in an addition one million new home owners to the mix. Unemployment is at a historic low, at just under 5.5 percent. Incomes are rising, especially among the poorest of the lot, most of them living in the northeast. The Brazilian Institute of Applied Economic Research says the poorest 10 percent of Brazilians saw their per capita income go up 91 percent between 2001 and 2011. The richest 10 percent saw income rise by around 17 percent. Overall, 21.8 million Brazilians rose out of poverty during the period, leaving 10 percent of the country‘s 192 million people living on less than $5 a day. What‘s happening in Brazil? Companies are not investing. Gross fixed capital formation had a decrease of 2 percent in the third quarter. These very negative fixed investment results all pointed to a lower-for-longer interest rate strategy in Brazil going forward. ―We believe that the GDP release (last week) significantly alters the situation in Brazil and we are now considering a new leg of monetary easing,‖ saidBarclays Capital economist Marcelo Solomon. He expects interest rates to fall to 6.25 percent in the first quarter of 2013, through two cuts of 50 basis points. Brazil started out 2011 with interest rates at 11.25 percent. Solomon said that the path of economic activity will be weaker than the base case scenario being presented by the Central Bank of Brazil. Finance Minister Guido Mantega last week during a press call with reporters said the fourth quarter would be stronger, as stimulus is taking longer than expected to kick in. However, China has been improving in the third, which is good for Brazil because it is Brazil‘s biggest market. Interest rates have been falling all year. Stimulus has been in place since the second quarter. And yet, the third quarter growth was just 0.6 percent over the second. Mantega‘s call and the Central Bank‘s forecasts have been off all year. Moreover, the inflation outlook remains very positive, as an accommodation of wholesale inflation is expected to lower consumer price pressures in the coming months in the BCB‘s scenario. So, there are unlikely to be constraints to a resumption of rates cuts from the inflation side. Critical to the view that rates are going even lower is the fact that industrial production will not maintain the strong performance observed in October. Babelfish Articles May 2013 - July 2013 15-7-13 Page 132
  • 133. The manufacturing industry grew 1.5 percent against the second quarter of 2012. The manufacturing industry is the one that suffers the most with the world crisis, which restricts markets. But Brazil, with the measures that have been taken, managed to post good results. Solomon doesn‘t think that will continue into the fourth. ―Our preliminary forecasts are pointing to a negative print in November, which to us will be an important release to trigger further policy loosening,‖ he said. Any further stimulus from monetary policy like interest rates could end up feeding inflation with little positive impact on growth. Companies will be back to where they were in 2011, struggling to calculate inflation, which means they don‘t know what to price their goods and services at. If they misprice and inflation is higher than they forecast, that squeezes their profit margins. And, if interest rates move out of the Central Bank‘s tolerance band — say over 7 percent — interest rates will move higher and choke Brazilian equities, already struggling (with the exception of consumer focused stocks). The Brazilian economy has failed to gain traction from 525bp of rate cuts, a dream come true for Brazilian economic pundits. Tony Volpon, a managing director at Nomura Securities in New York, and a Brazilian, said he thinks the main problem in Brazil is what he calls a ―plugged up‖ transmission channel in supply and demand. It‘s not a lack of aggregate demand stimulus, which is now coming from all policy instruments — monetary, fiscal, credit and forex. The Brazilian real, once strong, is now weak at around 2.1 to the dollar. It‘s been that way for months, and yet… ―We see the low interest rate thesis as really a statement to the effect that enough has been done from a monetary policy perspective, and now — unfortunately from a political point of view — we just have to be patient and wait for the transmission channels to clear up so that nominal demand can materialize into a combination of greater output and, unfortunately, inflation,‖ Volpon said. ―Better transmission‖ should occur in 2013. If the Central Bank does rush into more rate cuts early next year, where growth will likely still not be impressive, it will just add to the mess it will ultimately have to clean up later on in the year, said Volpon. Given political realities in favor of Western style low rates that possibility of rate cuts again next year cannot be rules out. When it comes to cheap money, Brazil wants to be American. They want to be European. But these are two different worlds. They shouldn‘t be allowed to collide. ―The market could be right in pricing in a positive probability of rate cuts at the end of the first quarter or second, though we are not ready to forecast this just yet,‖ Volpon wrote in a note to clients on Thursday. ―Unless one believes that Brazil has joined the ranks of deflation-prone countries, we recommend investors think twice before positioning for this (low rate) situation to last.‖ Wearables and Sensors Big Topics at All Things D 5/31/2013 Apple CEO Tim Cook speaks with Walt Mossberg and Kara Swisher at All Things Digital (screen shot from D: All Things Digital video) There were very few product announcement at the Wall Street Journal‘s All Things Digital Conference that wrapped up on Thursday, but there was plenty of talk — and a couple of products — focusing on the trends of wearable technology and ubiquitous sensors. Profound area for technology It started on the first night when Apple CEO Tim Cook, who was wearing a Nike+ Fuelband on stage, said that he thinks that wearables ―could be a profound area for technology.‖ He added that ―there‘s a lot of things to solve in this space but it‘s an area that‘s ripe for exploration.‖ He said that he thinks there will be ―tons of companies‖ playing in this field but, when asked by co-host Walt Mossberg, he refused to say whether Apple would be one of them. Still, he did say it‘s ―another very key branch of the tree,‖ in the postPC era. The first two branches, from Apple‘s perspective, are iPhone and iPad. So, while I suppose it‘s possible that Apple will sit out wearables, it was as close to a product announcement as you‘ll get from Apple ahead of a real announcement. Babelfish Articles May 2013 - July 2013 15-7-13 Page 133
  • 134. Cook observed teens and young adults don‘t wear wrist watches – they use their phones to tell time — so to get them to adopt a new habit, ―you first have to convince people it‘s so incredible, you want to wear it.‖ Cook also said that the ―whole sensor field is about to explode,‖ though he didn‘t even hint as to what Apple might be thinking about in that arena. Electronic tattoos and pills Regina Dugan wearing an electronic tattoo (photo: Asa Mathait D: All Things Digital) Regina Duncan, Senior VP for Advanced Technology & Projects at Google GOOG -0.43%-owned Motorola was not only bearish on wearables, but ingestible too. She showed off a pill that you can swallow that will authenticate you so don‘t have to enter a password. ―It creates a signal and your entire body becomes your authentication. My arms are like wires, my hands are like alligator clips.‖ And the pill is far from science fiction. It‘s based on technology developed by Proteus Digital Health that integrates sensors, which are powered by stomach acids — into ingestible pills. She also bared her arm to show off a digital tattoo that can also be used to authenticate a user. I got a close look at it during lunch and, don‘t worry, it‘s not permanent. It‘s kind of glued on. Google‘s Sundar Pichai is certainly no stranger to wearable technology. Pichai runs Google‘s Android division, but his company is famously experimenting with Google Glass — that hundreds of people are now wearing to be able to view the web or get directions without picking up their phone or send and receive tweets and Facebook FB -2.05% messages by looking through the small lens on a glasses-like device they wear. Pichai went beyond wearables, suggesting that the windows and other glass in our homes could someday be replaced with glass panes that do double-duty as display screens. ―To me it‘s obvious that you‘re going to see a lot computing around you, not just on you,‖ he said. Pichai is also bullish about sensors. He told attendees about an app on an Android smartphone that uses the phone‘s camera to sense radioactivity in the air. SmartThings Mobile app (screen shot from company video) Alex Hawkinson the founder of SmartThings, showed off an ―under $200″ kit that would enable you to control sensor-equipped devices from a smartphone. Hawkinson demonstrated using a phone unlock a doos, turn on a cofee pot and to program a light to turn on automtically when a cabinet door was opened. The kit consists of a wireless router and inexpensive sensors that attach to various things in the home. The feature I need is the one that lets you glance at your phone to find out if you left your garage door open. All Things D co-host Kara Swisher holding a Disney MagicBand (screen shot from D: All Things Digital video) Fantasyland and football fields Even Disney and the San Francisco 49ers are big on wearable technology. Tom Staggs who runs Disney‘s theme parks, showed off Disney‘s MagicBand, a wrist-strap that serves as your admissions ticket, electronic wallet and park ID. You can use it to arrange an experience within the park or — as an option — to let a Disney character automatically know your child‘s name. The 49ers don‘t have a wist band but the team‘s CEO, Jed York, who sharedthe stage with Sony CEO Kazuo Hirai, talked about how the team team might equip players with sensor to show their heart rates during certain plays. The 49ers are in the process of building a connected stadium in Silicon Valley(Santa Clara, Calif). My favorite line from York was when he said, ――We want to be a software-driven stadium, not a hardware-driven stadium.‖ In addition to talk about sensors and wearables, there was plenty of discussion about tablets and smartphones but hardly a word was spoken about PCs. They are oh so yesterday. Brazil's 'Poor' Middle Class, And The Poor That No Longer Serve Them 1/22/2013 @ 11:41AM |14,237 views 43 comments, 37 called-out Comment Now Follow Comments Let me preface this by saying that this is not a jab at Brazil. This is actually a story that shows how Brazil‘s rising tide is lifting all boats. The poor have more opportunities than ever before. They are earning more Babelfish Articles May 2013 - July 2013 15-7-13 Page 134
  • 135. money (for some, how‘s 56 percent sound?). And for the middle class that used to depend on them to wash their dishes and make their lunch, those days of luxury are over. Bemvindo a vida Americana, meu bem! * * * My "house."Edificio Bretagne. How I miss it. Right in the fold, top floor, all three windows were mine all mine. And a maid cleaned them for me. Ask an expat what they love most about living overseas and they will inevitably tell you this: the taxes and the maid service. That‘s right. Maids.And not for the rich, mind you, but for middle-of-the-road, beer-from-acan drinking, 2.5 GPA achieving riff-raff professionals. Whether they‘re living in Dubai, Mumbai or Brazil, they all love their maids. It‘s a luxury they cannot afford back home. I lived in Brazil for 10 years. I left in March 2010. Maids cooked my lunch, always a three courser. Rice. Beans, sometimes black, sometimes Carioca-style, which meant brown. Meat.Salad.Desert. Fresh squeezed orange juice or Swiss lemonade. Passion fruit.Guarana. Then, she did my dishes. Afterwards, she washed my clothes and pressed them. As time went on, maintaining a daily maid became too costly. I cut back. I had a maid just twice a week. She cleaned. She did laundry. I cooked. I paid her R$80 a day, or R$140 a week, which was around $78 for two full days of work. Her name was Hélia. Me and my girls loved Hélia. I hope she is doing well. Anyway… We lived in this beautiful building pictured here in São Paulo, in the Higienopolis neighborhood. A colleague of mine from one of the big U.S. newswires lived there, too. Our children hung out together a lot, especially in the swimming pool, which was surrounded by palm trees that housed these small green parrots that blended in with the palm leaves. He too had a maid, only his maid was there every day and sometimes on the weekends. A female columnist from Folha de São Paulo newspaper lived in the building, too. She also had a daughter. Only her daughter had a maid and a nanny, seven days a week. This was an early 40something year old newspaper columnist, not a rock star. Like me, my colleague was an American living a life we could never afford in the States. Ever. We were both scum sucking reporters waiting for the ax to fall on our necks. He, a little richer and hopeful; me, a little younger and angrier. One thing we all appreciated was being able to afford the extra help. My swimming pool. We even had a barman. Though he was a grump.Me, my daughter and the daughter of an American reporter colleague called him Mr. Grumpy Pumpkin Man during our Halloween parties. Ahhh, the life... Over the last 8 years, the income of Brazil‘s domestic workers has risen by an estimated 56 percent, according to the Brazilian Institute for Geography and Statistics, IBGE. It‘s a hard number to quantify because every single maid in Brazil is paid under the table in cash. By comparison, the average income in general rose by 29 percent. Nationwide, the average salary paid to domestic servants runs around R$721 a month, or around $360. However, that figure is double or triple in big cities like São Paulo and Rio de Janeiro. The income of Brazilian maids has risen by an average of 6.7 percent in just one year in real terms. Adding to the price tag is a steady decline in the number of domestic workers in the market. Quite frankly, Brazil‘s economy is getting richer. The poor have better things to do than clean up after middle class teenagers who still haven‘t learned to fold and put away their own T-shirts. Short supply, high prices. Many Brazilians cannot afford the help. Welcome to your American Dream, Brazil! Carol Campos is an administrator at Banco do Brasil in São Paulo. It‘s a nice, full-time middle class gig. She lives in Higienopolis. I‘ve been to her house many times. Our kids are friends. They went to school together. She used to have a maid every day when her first child was born, then down to a couple days a week and now — because of the rising cost of living — she tells me, ―We are now down to just one day per week. It‘s too expensive.‖ She pays her maid R$90 ($45) a day. A host of new labor laws designed to protect informal workers drove up costs. The government wanted the working poor, most of them women, to have enough money to save for retirement and, of course, healthcare. That started driving up prices around the year 2000. ―About four years ago, when me and my sister were in college and working, my family all decided to just hire a ‗diarista‘,‖ says , Leoberto José Preuss, a systems analyst at Brazilian IT firm TOTVS in Joinville, Santa Catarina, one of the more middle class states in the country. Back then he says, a diarista, a maid Babelfish Articles May 2013 - July 2013 15-7-13 Page 135
  • 136. that just comes once in a while and charges a flat day rate, charged just R$60 a day to cook and clean a house. ―You‘re lucky if you find anyone for less than 90,‖ he says. ―We have someone come three days a week. It‘s difficult to find anyone available these days.‖ It will get harder. And as time goes on, it will definitely get more costly. So costly, in fact, that the majority of middle class Brazilians will no longer have a maid. The government recently required full time domestic workers to receive the coveted ―thirteenth salary‖, a whole month‘s work of pay in December, plus workman‘s comp through the FGTS tax. Brazilian maid service is becoming professionalized, and that has pulled the rug out from the middle class that has come to depend on them to keep their house in order. A poll from Folha de São Paulo this month asked respondents if they would be able to afford a maid given the new labor laws. Out of the 1,177 on line respondents, 44 percent said no, 26 percent said they‘d have to cut back on hours. So a total 70 percent are starting to get used to the fact that the good ole ―Banana Republic‖ days are gone. * * * Sarah Castro, 28, is also from Santa Catarina. She is one of the Brazilian middle class that grew up with a live-in maid, her very own Mary Poppins. For Americans, this is an imperial wet dream. All that‘s missing is Tinkerbell. In the dream, you‘re from the rich nation before the days of labor rights, and your family can afford to hire your neighbors wife to clean the house, while he cleans your chimney. Those days are gone in London. They are ending in Florianopolis, Santa Catarina, where Sarah was raised and now works as a reporter. ―Our maid was named Nice. She lived with us and was part of our family. I miss her. There was no one like her,‖ she says. ―Nowadays, we only have a maid once a week. A good maid is hard to find.‖ Let‘s rephrase that. Barring a dystopian future, by the time Sarah is in her 40s, an affordable maid will be impossible to find. I was in my early 20s when I first came to Brazil in 1995, I lived with a family in a city called Londrina, population around 500,000. It‘s in the center of Parana state, an agribusiness boom town. The father was a professor at the local university. The mother owned a small business, operating a clothing company out of what was once their garage. They had one weaving machine that made fabric 24 hours a day, 7 days a week. I can still hear that thing moving back and force, swish-swoosh; swish-swoosh, swish-swoosh. They were Brazil‘s middle class. By my standards, they were rich because six days a week they had a maid who cooked and cleaned for them so both parents could work. The maid served them. She picked up after the four children. She cleaned up the dog‘s mess in the yard. Here‘s the rub, I was raised by a maid. My mother didn‘t graduate from high school. But she grew up in America. A maid that didn‘t go to school in Brazil doesn‘t live like one that grew up in the U.S. The Brazilians couldn‘t believe that a maid‘s son had a basketball pole in his yard, an above ground pool and that my family had three cars. Their car ran on ethanol, and that thing was a piece of junk; a jalopy is more like it. Damn, meu filho; I had a Camaro Berlinetta! Inequality in Brazil allowed the middle class to enjoy a life of luxury their American peers envied. I never saw a messy Brazilian house in the decade I lived there. Everything was in its place. Two-income households in São Paulo, as busy as a two-income household in New York, never had a dish in the sink, an unmade bed, or a laundry basket overflowing onto the bathroom floor. Embrace the mess, Brazil. (And pick up those socks!) ―I have a maid come once every 15 days and that‘s it,‖ says Keli Bergamo, a lawyer in Parana state. ―The cooking, the clothes washing, I have to do myself. But I live alone. I know a lot of people who are cutting back. Brazilians will get crafty with the labor laws, though,‖ she says, adding that many wealthy Brazilians will avoid the full time labor rules by getting rid of full time maids and hiring part-timers in their place. ―These new laws make it more costly to maintain domestic help in Brazil,‖ she says. ―A lot of people are going to give up this comfort and will have to divide the labor between the members of their household from now on.‖ Follow @BRICBreaker Babelfish Articles May 2013 - July 2013 15-7-13 Page 136
  • 137. Sorry, Brands…Your Digital Agencies are Lying to You By Levi Shapiro Tuesday - June 4, 2013 www.MediaBizBloggers.com Brands spend a fortune on marketing – more than 9% (b2c) and 7% (b2b) of total revenue. Within marketing budgets, the fastest growing portion (+40%) is social media. Unfortunately, a growing body of evidence suggests that garnering LIKES on a Facebook page does nothing to foster community or increase engagement. Your digital agency has been lying to you. The better approach for lowering customer service costs and increasing engagement is to transform your organization into a social business. Step I: Focus on managing your own portal, not Facebook - The single most important aspect of a social business, according to ― The Social Economy‖ from McKinsey, is user generated content. A vibrant community can produce user generated content, with customers helping each other and innovative product ideas emerging from the community. One notable example is Amazon, whose share price has risen more than 400% over the last 5 years. Product reviews on Amazon‘s portal create a Word of Mouth experience. Product and marketing ideas, notably the Kindle, have emerged from Amazon‘s online conversation with its 166 million customers, not its 56,000 employees. Amazon consistently ranks among the top brands in the University of Michigan‘s annual Customer Satisfaction Index. According to Andreas Nicklas, Head of Business Development EMEA for Lithium, who will keynote this week at Socialize13 in Tel Aviv, ―Facebook should be less of a priority than your own website. It is crucial to cultivate your own community on your own portal and own the interaction. Our data shows that 90% of consumers trust their peers but only 14% trust advertisers. Too many digital agencies still advocate push marketing, defining success in LIKES, even though the world changed from push to pull.‖ Unrealistic values are frequently ascribed to Facebook LIKES, even though less than 5% of those liking a Facebook Fan page ever return (ComBlu, ―State of Online Branded Communities‖). Babelfish Articles May 2013 - July 2013 15-7-13 Page 137
  • 138. Giffgaff in the UK is a social business that generates 75% of all sales by word of mouth. More than 85% of all community questions receive responses within 60 seconds. Finally, only 0.5% of all incoming customer service requests are handled by the customer call center. The rest are answered by the community. Becoming a social business has drastically reduced GiffGaff‘s marketing and customer service expenses. Step II: Integration Across the Organization and Business Processes - According to McKinsey, only 3% of companies obtain substantial benefit from social technologies across customers, employees and business partners. The main reason is that social does not fit into a silo approach. For example, the same customer interaction could provide input for multiple departments but typically is not shared across the organization. Andreas says, ―Sometimes you talk with the CMO, sometimes the head of customer support. Organizations should have one person who owns social strategy across the entire organization.‖ Babelfish Articles May 2013 - July 2013 15-7-13 Page 138
  • 139. One example of social commerce is Sephora Beauty Talk, a content-centric forum for young women to learn from their peers and obtain feedback. Besides the ongoing discussion, Beauty Talk brings the conversation into the store. Community members in Sephora shops are invited to take photos and solicit feedback from the Beauty Talk community. In real-time, the community provides trusted feedback. Community members purchase 2.5x more than standard customers. The technology and telecom sectors have been the first to embrace social business processes. More recently, retail and financial services companies are moving in this direction. So, when will your company become a social business? Levi Shapiro is a Partner at TMT Strategic Advisors, a research and strategy firm focusing on the technology, media and telecom sectors. He can be reached at levi@tmtstrat.com or via twitter: @levshapiro The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaBizBloggers.com management or associated bloggers. MediaBizBloggers is an open thought leadership platform and readers may share their comments and opinions in response to all commentaries. The 11 Most Fascinating Charts From Mary Meeker's Epic Slideshow of Internet Trends DEREK THOMPSONMAY 29 2013, 1:11 PM ET Every year, Mary Meeker and the team from KPCB unleash upon the world the mother of all slideshows, which aims to sum up The State of the Internet. This year's behemoth was born this morning, weighing in at 117 pages. Here are the 12 most interesting pages. Check out the full report here. (1) America's Media Attention in 1 Graph. Americans spend just six percent of their media diet with print, but those pages attract 23 percent of all ad spending. In mobile, the trend is the polar opposite. I don't know if this is worse news for the print industry (where you'd think ad spending has a long way to fall) or Facebook (since monetizing mobile attention is so devilishly difficult.) Babelfish Articles May 2013 - July 2013 15-7-13 Page 139
  • 140. (2) Glam Media Is Huge! Bigger than Wikipedia or Apple. The only Internet properties with more US users are Google, Microsoft, Facebook, and Yahoo. (3) This Is How Fast the Smartphone Leaderboard Changed. Apple iOS and Android were invisible in 2005, but as the smartphone market exploded, so did they. (4) Today, the Internet Is Photos, But That's a Really, Really Recent Phenomenon. And Snapchat's growth is absolutely insane. Babelfish Articles May 2013 - July 2013 15-7-13 Page 140
  • 141. (5) Facebook Is the Only Major Social Media With Declining Use in 2012. Uh oh? (6) Wow, Saudi Arabia Really Loves to Share. And Americans are weirdly private. (7) If China Is the Future, TV Is in Big Trouble. Also, hooray, they still read print! Babelfish Articles May 2013 - July 2013 15-7-13 Page 141
  • 142. (8) Facebook's Desktop Ad Business Is Already in Decline. And mobile isn't growing fast enough to raise overall average revenue per user in ads. (9) Apple and Samsung Ate the World. Smartphones are arguably the central device in the digital economy, and Apple and Samsung have doubled their collective market share even as smartphone units quadrupled around the world. Babelfish Articles May 2013 - July 2013 15-7-13 Page 142
  • 143. (10) Smartphone users reach to their phone 150 times a day! About a third of those reaches are for messaging and calls. (Also, who needs to check their alarm 8 times a day? My lord.) (11) The Era of Windows and Intel (WinTel) Was Astonishingly Dominant, and Now It's Over. It's the ApAnd era now when it comes to personal computing platforms. Derek Thompson is a senior editor at The Atlantic, where he oversees business coverage for TheAtlantic.com. Content: Create Or Curate? We‘ve all heard the phrase ―content is king,‖ but in the world of inbound marketing has our definition of ―Content‖ changed? Ninety-one percent of B2B marketers use content in their marketing mix and a majority use social media to distribute content. While content creation has always been a force in marketing, trends show companies shifting towards content curation. But can curation provide accurate, targeted information or are we sacrificing informational effectiveness for cost effectiveness? What Is Content Curation? While content creation is the development of original material, content curation is sharing others‘ content, finding the most relevant content and bringing it forward. Content curation can be automated via ―daily paper‖ sites such as Paper.li, Flipboard and Scoop.it, which automatically share articles on a business‘ social pages. However, curation and aggregation are not the same. Curation involves sifting through available material and choosing content to appeal to a specific audience. While content curation is a way of Babelfish Articles May 2013 - July 2013 15-7-13 Page 143
  • 144. increasing the amount of material on a webpage, it prioritizes quality over quantity as does content creation. Curation vs. Creation Curated content is ideal for companies seeking to increase their web traffic. Curation allows companies to quickly produce large amounts of content, which is great for building an audience and retweets/shares. In addition, updating content consistently increases web crawling as it is a Search Engine Optimization (SEO) technique. By linking to, or reposting, articles, websites share information that is trending, drawing users to their page. Linking out generates 33% more clicks than linking to owned sites. On the other hand, content creation leads to higher conversion rates -links to owned pages have a 54% higher click-to-conversion rate than posts linking to third-party websites. The Dangers of Content Curation While content curation seems like a solution for the cost-conscious, curation is a labor-intensive process. Haphazard curation bore viewers driving them away from the webpage. Content curators may also be inclined to overload webpages with information and links. Once again, quality, not quantity, should be the focus. Keyword stuffing and excessive linking only hurts websites, especially considering Google Penguin‘s focus on quality links and curators must cite sources, and provide links, to avoid plagiarizing. Links should be relevant, interesting, and readable. The homepage should offer context to readers and relate content to products if consumers are to develop a rapport with the company. What to Do Content curation and content creation work best when paired. Curated content can attract viewers, but created content retains those with an interest in the brand. Recently, marketing organizations have increased the amount of in-house content they create, as well as the amount of curated content. In fact, a study of B2B marketers showed that their top priority was producing enough content. In order to find a balance of created and curated, marketers tend to produce one-half to three-quarters curated content and one-quarter to one-half created content, with approximately 40% original being ideal. They have significantly higher conversion rates than curators and substantially more clicks per post than do selfpromoters. This pairs well with the content marketing pyramid, in which low effort content is produced often while high effort resources (i.e., books and white papers) are rarely produced. Companies should view themselves as one of many interacting parts of a social network that produces and distributes information. Applications to Healthcare Content marketing must be adjusted to the landscape of an industry, such as pharmaceuticals, which is saturated with content, providing plenty of good material to curate to create value. For example, there is ample medical research online, but the difficult language and quantity of academic sources discourages individuals from finding it. However, an effective content curator will sorts through the technical sources and provide consumers with readable material. Because this data comes from respected research institutions, it benefits the company‘s image and serves as an emblem of authority. In fact, when polled, marketers said their main reason for content curation was ―establishing thought leadership.‖ Content curation shows that a company is willing to see different perspectives and establishes it as a mover in social media, a relevant concern for pharmaceutical companies that want to be seen on the cutting edge. Content creation is just as important in the healthcare field where it shows that a company is invested in its consumer relations, Yes, content curation can be used to give viewers targeted information, but content creation builds brand loyalty by showing the company is invested in that information. Content creation also benefits companies by being shared by other organizations, which establishes thought leadership. Ultimately, the mix of creation and curation is dependent on whether a company wants to be seen as proactive as a leader and a thoughtful communicator. Research shows increase in marriage failures once children leave the home Natasha Bita, National Social Editor News Limited Network May 27, 2013 12:00AM EMPTY nesters are divorcing in droves, as the "20-year itch" fuels a mid-life marriage breakdown. The Australian Institute of Family Studies (AIFS) has found the risk of divorcing after 20 years of marriage has doubled in a generation. Middle-aged men are more likely to remarry than divorced women, who stay single or live apart from their new lovers. Babelfish Articles May 2013 - July 2013 15-7-13 Page 144
  • 145. The first 10 years of marriage remains the danger period for most Australian couples - but the latest data points to a new "20-year itch". AIFS director Alan Hayes said couples were staying together until their kids left home. "The number of divorces involving children under 18 has been declining," he said. "I think there is an element of people sticking together for the kids." Professor Hayes said women instigated 60 per cent of divorces "and it comes as a shock to most men." But middle-aged blokes were more likely to move on - and remarry with younger women. Divorced women with high educational and professional qualifications were the least likely to remarry. "They may form a relationship, but not reside in the same household," Professor Hayes said. "In the past ... they were in the same household but unhappily married." Relationships Australia spokeswoman Mary-Jo Morgan said women often became dissatisfied with their partners once the kids moved out. "There is a proverbial mid-life crisis when the man feels a need to have his ego stroked - but I think women are feeling that too," she said. "All of a sudden, things you maybe chose to overlook because you're raising children are under the microscope." Ms Morgan advised couples to go on regular "date nights" - without the kids - to keep their relationship strong. "Many couples choose the focus to be on the children, and don't focus on the relationship," she said. "There is real grief attached to children moving on and I think people don't realise the importance of how you manage that process." The AIFS report shows the proportion of marriages ending after 20 years has more than doubled from 13 per cent in 1980 to 28 per cent in 2011. Kids were caught up in two-thirds of the divorces in 1971 - but fewer than half today's divorces involve children. Professor Hayes said the fact Australians were now living longer meant marriages were less likely to last until death. "The meaning of `til death us do part' is very different now to when they went into the marriage," he said. "Men tended to die at a younger age, and they were involved in occupations that were high-risk. "Now people are fitter, healthier and in some cases more affluent, so they can exercise choice." The median age for women to divorce is now 42 - up from 34 in 1971. Men's median divorce age has risen from 38 to 45. BREAKING UP 1971 • 1% of couples lived together without marrying. • Median age of divorce: 38 for men and 34 for women • 68% of divorces involved children under 18 • Teenagers made up 18% of new mothers • 2% of mothers had their first child in their late 30s. 1980 • 13% of divorcing couples had been married 20 years or more. • 49% of divorcing couples were married 10 years or less. 2011 • 16% of couples live together without marrying • 28% of divorcing couples had been married 20 years or more • 42% of divorcing couples were married 10 years or less. • Median age of divorce: 45 for men and 42 for women • 48% of divorces involved children under 18 • Teenagers made up 9% of new mothers • 12% of mothers had their first child in their late 30s. • Source: Institute of Family Studies STICKING TOGETHER Relationships Australia spokeswoman Mary-Jo Morgan suggests: • DATE nights with your partner ask friends or family to babysit, and don't spend the whole night talking about the kids. • IDENTIFY what bugs you in your relationship. • TALK about this with your partner and seek counselling if you need it. • DISCUSS what you'll want from your relationship when the kids leave home. Read more: http://www.news.com.au/lifestyle/relationships/research-shows-increase-in-marriage-failuresonce-children-leave-the-home/story-fnet09y4-1226650820266#ixzz2UQTZHFHh Babelfish Articles May 2013 - July 2013 15-7-13 Page 145
  • 146. Mapping the Customer Journey with Social Intelligence Posted May 25, 2013 There‘s never been a better time for marketers for to see, understand and respond to the customer journey. Today‘s ―open social age‖ has created a ―looking glass‖ for companies to understand the complex nature of their customers as millions of them are broadcasting their opinions, attitudes, behaviors, experiences and even unmet needs on a real-time basis. In fact, society is rapidly approaching a complete digital state. New technologies have transformed the way people work, learn, communicate and share. And consumers freely share their opinions and exp