The march of the marketeers

The March of the Marketeers Dr. Ian Brown [email_address]
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Outline
20 th century marketing
The digital difference
Nightmares for advertisers
The marketeers fight back
Better ways forward

20 th century marketing
Mass media
ITV, tabloids, commercial radio
C4, broadsheets, magazines
Q1 2002 1.364bn direct mails, up 3.9%

The digital difference
Proliferation of channels lead to niche audiences – sometimes unmeasurably small
Bang per buck of expensive adverts reduced
Better targetting therefore required

Interactive TV
“ Such systems would allow, say insurers to differentiate risk-averse conservatives from high-living show-offs, and then tailor both marketing messages and risk scoring systems accordingly.” – Neal Muranyi, Database Group
“ There is no privacy. It’s all public relations. It’s all perception.” –Jack Myers, Myers Report
“ Once you get their credit card number, you can get their whole history. There's no stopping you!” –Bob Williams, Addressable Media Coalition

Web adverts
Cheap to design and distribute
But very low click-through rate – around ½%
Often only funding source for content sites
Attempts to do very sophisticated profiling and targetting…

DoubleClick
5bn ads served per week (1999)
Manages database with info on 2bn transactions (1999)
Attempted to merge databases in 2000, but stopped by consumer pressure

Spam
Virtually zero marginal cost
Lists of tens of millions of addresses for sale
Currently mass-mails; advanced customisation likely in future

Nightmares for advertisers
Personal Video Recorders are easy-to-use VCRs with hard disks
Viewers can use digital fast forward on content… including adverts

What the studios think
“ Any time you skip a commercial or watch the button you're actually stealing the programming… I guess there's a certain amount of tolerance for going to the bathroom.”
– Jamie Kellner, Chairman and CEO, Turner Broadcasting

More nightmares
Automatic, real-time ad blocking
Cookie management

Adware
Ad-hiding and replacing
“ [I]t's about whispering in [a customer’s] ear something they ought to know about in context of where they are.”
In Gator Wallet, KaZaa and AudioGalaxy – 16m users

Canning Spam
“ Open Relay” blackholes
Spam spotters: headers and text styles; centralised and collaborative lists of known spam messages

The marketeers fight back
Rights holders suing ReplayTV and Gator
ReplayTV “ violates the rights of copyright owners in unprecedented ways” (31/10/01)
“ Gator Corp. is essentially a parasite that free rides on the hard work and investment” of the publishers (25/6/02)

Watching users
“ The Court has determined that the need for disclosure outweights the interest in maintaining the alleged confidentiality of the information” (26/4/02)
“ the Court is persuaded to reverse the Magistrate Judge's Order on the grounds that it impermissibly requires defendants to create new data which does not now exist.” (31/5/02)

Other ways forward
Sponsorship
Product placement
Tie-ins
Subscription

The march of the marketeers

by Ian Brown on May 25, 2008

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