Decipher 'Off Air'

Informal Thoughts About The More Serious Stuff We Address Every Day

Digital Is Dead – Long Live TV and The Web!

Nigel Walley -  July 2009

I received a flyer in the post from the Institute of Direct Marketing (IDM) the other day, outlining the curriculum of their ‘Complete Digital Marketing Course’.  What was remarkable about this flyer and its grandiose claim, was just how incomplete the course was.  In a week when AudiTV launched an on-demand service on Virgin cable’s Showcase, and Honda’s webTV service moved to the front page of the BT Vision EPG, there was nothing about breakthrough digital TV marketing in it at all.  With Sky launching green button advertising on the satellite platforms, there was nothing about interactive television formats; and with both Sky and Virgin developing targeted broadcast and targeted on-demand mechanisms, there was nothing about converged marketing principles, bringing together internet techniques with broadcast content.  And it wasn’t just TV that was ignored.  At a time when DAB is firmly back on the radar screens thanks to Lord Carter, there was nothing about digital radio marketing, and in a week when I stood in Victoria station watching coverage of the Tehran rioters on the big newscreen, there was nothing about digital outdoor. The DMA was of course just a session on web marketing, with a bit of mobile thrown in for amusement. As you can see though, it wasn’t the pompousness of the word ‘complete’ that struck me.  It was the redundancy of the word ‘digital’ in a marketing context.
In Decipher, we have been saying for a long time that if you use the word ‘digital’ in a marketing context, it is because you are too stupid or too lazy to use a more accurate word.  Unfortunately, the trade press and the agency world are complicit in re-inforcing this ineptness. If you read the new media trade press, the word digital is used predominantly to refer to stuff that is simply web marketing.  On a good day, it refers to both web and mobile.  If you speak to any digital agency, you will find they are web marketing agencies who do a bit of mobile when required.  This is not intended to diminish their contribution. The world of web marketing has emerged as a complex, multi-faceted market with many, sophisticated formats, products, currencies, reporting systems and analysis techniques.  But it is still only web marketing. Most digital agencies don’t address all internet formats, let alone all digital formats.
There is an equally complex, multi-faceted market landscape growing up around Digital TV which is being ignored by the marketing community.  As Tess Alps said in NMA this week, ‘TV is part of the new media age as much as the internet’.  The truth is that if you take Google out of the equation most ‘digital’ marketing money is spent on TV.   The new media industry doesn’t seem to have spotted this.  In Marketing magazine last week, Fiona Ramsay talked about how red button had failed as a format, but I had just received an announcement saying that Sky was running their 40th red button campaign of the year, up on this time last year. The backdrop to this red button advertising is a continued growth in red button use around content. During Wimbledon this year, over half of all digital homes pressed red more than three times.  This is the same week that the BBC and ITV announced that they were creating TV widget for iPlayer and ITV.com that could be launched from broadcast on Yahoo Widget enabled TVs.  Sky also announced the Autumn launch of SkyPlayer for Xbox.  Now, who is meant to deal with the marketing implications of these new formats. The truth is that red button and other emerging TV formats don’t fit the nice ‘traditional vs digital’ structure the industry likes to work in.

The reason this matters is that it highlights the failure of the traditional side of media to deal with the emerging TV formats and systems.  Whilst these are predominantly TV formats, they are too hard for the traditional agencies to deal with, but too integrated with broadcast for web or DM agencies to do anything meaningful with. So the industry ignores them.  The red button stuff is just a symptom of this, but it is the part of the story that has never been written about red button.  Red button is essentially a TV medium that was given to the internet and DM agencies to deal with because the main agencies didn’t get it.  But the internet and DM industries couldn’t make the necessary content because the TV budget had always been spent by the main agencies and the other agencies weren’t able to plan for its use in the context of a TV campaign.  We heard this story over and over again over the last few years.  A newly emerging example of this inability to deal with emerging TV formats is online video advertising.  We are now hearing that  ‘traditional’ agencies don’t understand it but  ‘Digital’ agencies don’t have the capability of making the right content or planning it in the context of a TV deal.  We hear this two or three times a week at the moment and it all sounds very familiar.  ‘Digital’ agencies unable to deal with a digital format. The truth is that online video is predominantly a brand format that needs to be planned and created as part of a TV campaign and neither ‘traditional’ of ‘digital’ agencies are set up to do it.
The trouble is that they think they are.   John Owen of Dare said in last week’s Campaign that ‘digital is a state of mind, not a description of channels’.  Well it is a pretty blinkered state of mind.  Nobody with the word ‘digital’ in their job title ever seems to have an opinion on the cost of advertising on Sky Channels, ITV3 or MTV, even though they are digital-only channels, let alone knowing anything about TV interactivity, TV on demand or IPTV marketing formats.  The truth is that, at a time when we need broad minded integration of agencies,  the so called ‘digital’ industry has become as parochial and small minded as traditional media. No less a figure than Mike Nutley of New Media Age commented on this last year.
As if that wasn’t bad enough, marketing people have even started using the word ‘digital’ as a noun, as in ‘we are going to use ‘digital’. The minute that the word ‘digital’ shifts from adjective to noun, you know that it has had its day. It is a useless word for our market and deserves derision.  But then, we have been here before.
Back in the mid 80s, before all of this new media nonsense, I was working as an architect for a very trendy company in Soho designing bars and restaurants.  In those days we didn’t call them architectural practices, with the fusty connotation that brought.  We worked for ‘design’ practices.  These ‘designers’ were made up of architects, furniture designers, graphic designers and other assorted visionaries who we were slowly repackaging the world, in a festival of Philippe Starck inspired ‘design’ enthusiasm.  However, towards the end of the 80s, something very odd happened to the word ‘design’.  It started to be stuck in front of anything vaguely unusual, or contrived. It gradually even transmogrified into ‘designer’ which slowly became a term of derision, like ‘estate agent’. The word ‘design’ became redundant and architects started calling themselves architects again.
Even before the arrival of the DMA’s ridiculous flyer, I had been thinking about a similar demise of the word ‘digital’. This was mainly because of Stephen Carter. For the last few weeks he has been addressing an assorted rag bag of unrelated issues, under the title of Digital Britain.  This phrase has the same amount of credibility as Cool Britannia.  You initially think it sounds good, and then its overwhelming vacuousness creeps up on you.  You knew that BritPop was over as a phenomenon when Tony Blair and Alistair Campbell tried to harness it under the Cool Britannia initiative.  It’s the kind of embarrassing thing that your Dad dreams up when he is trying to get hip with the kids. I am hoping that Digital Britain has finally done the same for the word digital in popular parlance.  Somehow we need to address the problems it causes in creating damaging demarcations in the marketing industry.
This may happen in the same way as with the word ‘designer, where the realization of how vacuous the word was crept into mainstream consciousness.  In this morning’s Times, Libby Purves wrote: ‘the word ‘digital’ joins a long list of adjectives too exciting for their own good’. When even someone as ‘analogue’ as Libby Purves spots the ridiculousness of a technological word, then you know that it has had its day.  I work in media.

Filed under: Future Advertising, , , , , , , ,

Why do I still watch broadcast TV?

Adrian Stroud – June 2009

I recently challenged myself to work-out why I still watch so much ‘live’ TV. I don’t mean news or sport because I can rationalise those genres quite easily. I mean bread and butter programming.
The challenge came about because I was debating just how much more damage all the VOD services and PVRs will do to live TV viewing figures in the long-run. This is important because it is those live viewing figures that contribute the vast bulk of advertising impacts. VOD currently delivers far, fewer impacts per hour of viewing than live TV, so the ‘end game’ for advertising funded TV programming is defined by this question. My guess was that live TV won’t drop more than perhaps 25%, no matter how many VOD and time shifting gadgets like Sky+ launch, but I could not say why. I suspect I’m making the mistake of confusing the technology with the benefits.
VOD and the PVR are the rational way to consume all but the livest of live TV events. So, when VOD has all the content you want and it is available on every screen in the house, why would you want to watch ordinary old broadcast TV at all?
Live TV has one strong thing going for it – ‘missability’. When you turn your TV on, the rational thing to do is to check a few favourite channels to see if something is sneaking past you that you might like. If I find something valuable in this initial foray into live TV I’ll add it to my Sky+ planner. But here is an odd thing, having committed to recording a newly discovered programme and all subsequent episodes; I’ll probably continue browsing likely sources of live entertainment. When I’m in this mode I’m not actually looking to make a commitment to something I really enjoy. I’m probably expecting to be interrupted or be forced to change channel to meet someone else’s taste. The stuff I really like is salted away for some future, quiet, uninterrupted hour that never comes. So missability is a factor for me at the moment but what if just about every TV programme you could think of was available on demand? How can you miss something then?
Misability is not always what drives me to the broadcast channels first. The conditions under which it seems appropriate to commit to a piece of VOD material are quite specific. The kids must be in bed (a deadline that slips further and further into the evening) and a joint decision must be made with Mrs Stroud as to the duration available for shared viewing and of course there is then a debate about exactly what to watch.
By habitually recording things I like and then delaying their consumption to some future ideal moment that never arrives, I could easily end-up watching less programming that I really enjoy than I did when I had to strike while the iron was hot.
Here is another odd thing. Watching one of my ‘favourite’ programmes sometimes just does not appeal as much as watching short bursts of fairly random content. When left alone with the remote control and hour to waste, I’m likely to channel hop. I might leave a programme in a dull bit and give it another chance a few minutes later knowing that it will have moved-on.
The use of Sky+ to time-shift seems to have levelled off at about 15%. This is an average drawn from a very wide spectrum of behaviour so don’t worry if you are not typical. It is not an average like the average shoe size for men is 10, it is more like the average score for a blindfolded darts player will be 10.
Maybe 15% has always been the average amount of consciously planned TV viewing, and VOD and PVRs have simply revealed this underlying truth? Maybe 85% of viewing was always low-commitment and ‘a bit random’ and we were unconsciously quite happy with this. Let’s face it, how could TV have become such a world-wide hit, occupying many hours a day for most people in most countries if ‘fairly random, low commitment viewing’ was not fun?
So the reason I watch live TV is rational but it is not about being live, it is about serendipity and the way it can be randomly sampled – it is a about browsability. When I channel-hop into a programme half way through, I know that is what I have done and that is exactly what I wanted to do. I don’t want to navigate a hierarchical menu system, highlight a title, see the channel indents, pre roll and then sample ten minutes of scene-setting before a drama gets going. I want a random few seconds somewhere in the middle. I don’t even want a ‘sampler’ of best bits edited together. If I go back to the same programme five minutes later I want it to have moved-on by five minutes. If I’m channel hopping while the children are still around I want to know that I’m not going to stumble across something violent, rude or frightening. Of course, when they are safely in bed these become positive selection criteria.
I have yet to see a VOD system that has the browsability of live TV and that encourages the same happy-go-lucky lack of commitment to viewing a whole programme. But surely a VOD system could mimic these attractive features of broadcast TV and offer added benefits? I suspect that the current generation of VOD systems are assuming that our TV consumption is more planned and sensible than it really is.
Rather than thinking about what the end-game is for live broadcast versus on demand, the real question might be how much TV viewing will remain low-commitment, fairly random sampling? It would be surprising if on-demand systems did not eventually meet the need for browsability better than the current broadcast channels. But if they do, will they be able to deliver about fifteen, spots an hour like live TV does? If you have some cash for research I’d love to see what can be done.

Filed under: Ad Formats & Cases, Commercial Models, Distribution & Devices, Future Advertising, Interfaces & Functionality, IPTV, PVR / DTR / DVR, , , , , , , , , , , , , , , , , ,

The Mentos/Diet Coke Viral Lives On

In 2006 at the height of the Web 2.0 explosion, as new acronyms were flying and buzz words abound, we saw the release of one of the most successful virals ever to grace the Web. As we see in this article, two years on, the Mentos/Diet Coke geyser clip is still alive and kicking…

Inspired by a friend who told them of the explosive reactions that can take place when acids and bases mix, two creatives, Steven Voltz and Fritz Grobe, from a little known agency EepyBird.com set about experimenting with a range of household products looking for the ultimate in combustible consumer product partenrships. Eventually they literally struck gold when they combined a bottle of Diet Coke, with the minty sweet ‘Mentos’. The resulting viral video that was filmed consisted of a feast of fantastically elaborate experiments, with fountains of exploding Coca Cola gushing in time to classical music.

The viral was an instant mega hit, receiving 10m hits and earning the pair $50,000, and a flurry of subsequent copycat videos flooded the net. Interestingly, the big brands involved kept a distance, denying sponsorship and only releasing carefully worded statements as to the fun nature of their products. Sensibly, in 2006, the marketing directors of both Coca Cola, and Perfetti Van Melle (makers of Mentos), were quoted to remark that the very source of the viral’s success was its underground status, and that the commercial influence would inevitably signal its downfall. Clearly, it was much better to freely capitalise on the consistent free promotion that was spiralling out of control amongst the expanding online video community. Since the release of the videos, Mentos claim that their sales are now up 20%, and estimate their worth at around $10m of free promotion a year.

Subsequently, both brands have moved to support the craze, featuring campaigns and funding new videos on both of their websites, but the user-generated feel has not gone away. Two years on, The Daily Mail has reported a new world record. At the University of Leuven, Belgium, 1,300 students simultaneously dropped Mentos mints in to 1,360 bottles of Diet Coke, the biggest Coke geyser ever measured, smashing the previous record of 973 bottles measured in the US.

 

Filed under: Ad Formats & Cases, , , , , ,

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