Tv Channels in Us

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The Customer in Control

Derek Brown

January 20, 2009

AMCHAM Marketing Committee

Derek Brown 2008


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Seeing


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Awareness


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Whatever can be done,will be done. The onlyquestion is will it bedone by you or to you.Just dont think it wont

be done.


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Blog Readership among internet users

South Korea - 77% read each week compared to 58% reading mainstream press

Globally - 73% of internet users reading blogs with 48% reading weekly

Across 29 countries surveyed social media consumption is up

83% watch video clips, up from 62% in the last study in June 59% weekly

78% read blogs, up from 66%

57% of internet users are now members of a social network

RSS consumption is growing rapidly up from 15% to 39%

Podcasts are now mainstream digital content, listened to by 48%

Social media is a global phenomenon Top Markets

Blogging - China 70%, Philippines 66% and Mexico 60%

Social Networking - Philippines 83%, Hungary 76% and Poland 76%

Social Media Consumption - Global

By Universal McCann, Brand Republic 24-Apr-08


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But its bigger than that


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8/77Fragmentation of Attention

To find something comparable,

you have to go back 500 years

to the invention of the printing

press, the birth of mass media

Rupert Murdoch


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A little history


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300+ digital TV channels on a typical US platform

and of those

only 40 are actually measured by Nielson

The thing that we found out is that actually

40% of the audience is actually watching those

channels that werent even measured,Vincent Dureau, the head of television technology at Google

Google research from millions of set-top boxes:

Tracking the Untracked


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#1 TV Show watched regularly by households1970: All in the Family 60% of households

2007: American Idol 17% of households (Source: OMD)

TV spots to reach 85% of the UK populationLate 1980s 3 spots

Today 180 spots(Source: Campaign 2005)

Nielsen US data (2007)The average U.S. home receives 118.6 channels

And tuned to16, or 13% of available channels At least 10 minutes per week

Trying to Reach Mass Markets


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Consumers exposed to 3,000+ ad messages a day50+ different types of in-store communication (POPAI)

Research indicated that shoppers passes 1.6 items

every second. In a 30 minute shop that would mean theypass 2592 pieces of communication.

The Tidal Wave of Messages


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Your customer isnt paying

attention like the old days


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Amazon gets their revenue from titles thatBarnes and Noble doesnt even carry.

Long Tail Example


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Everything else

is the top selling product


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November 2008 American Stats

146 million people watched 12.6 billion

video clips - doubled in 20 months

Conducted nearly 2.8 billion searches on

YouTube, about 200 million more than on

Yahoo

Source NYT & comScore

Ch i R d P tt


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Discovering new blog content 38% - blog links

34% - web search

11% - search engines

39% blog links = trusted recommendation from a person

Blogs are not consumed in isolation 49% of blog readers and 71% of frequent readers read

more than one blog per session

Changing Reader Patterns:

The Power of Links

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


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This is an algorithm or

consumer driven process

that is largely

out of your control


26/77The Changing Customer


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1950 through 1960s Dutiful Consumers

Introduction of Mass Production and Mass Media

Opening of National and Global marketsOne-size-fits-all

Retail Channel

Rise of department store and catalogs Demand outstripped Supply

Newly affluent consumers with a limited range or brands

and products

Customer 1.0


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1970 - 2000 Manufactures expand choice Retail Expands, malls become destinations

Category Killers; Walmart, Warehouse ClubsUltra-niche channels and Specialized Catalogs

Online appears and Retail builds new channels

Consumer Buying patterns change, more fickleCustomer service, returns, 24/7, online/off-line

Consumers expectations change

Customer 2.0


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

Customer 3.0


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So where does this leave us?


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The Perfect Stormmeets FMCG


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We then ran those numbers through our Salience product to extract entities which included quotes

about #Motrinmoms, twitter names, places, companies, etc. From there we could see who hadmore than 1% of the tweets, which we plotted as being positive or negative. This was a feel for

influencers. From that information we determined if tweets were more negative or

neutral/positive in regard to #MotrinMoms and saw that if you pulled out all of the neutral tweets

(those with a sentiment of zero) we ended up with 58% negative tweets and 42% positive

tweets. But whereas most campaigns are measured as neutral/positive vs. negative, that

overwhelmingly shows that this session would have been 65% positive/neutral vs 35% negative


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Marketing 101

Old 4P M k ti


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Old 4Ps Marketing

4Ps

Value Creator Customer

Product

Place

Price

Promotion


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Research

Listening

E i M h d


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Emerging Methods

del.icio.us

Y H k


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Your Homework

Try a search your company/product sucks your company/product problem

Are you listeningto what people are saying?


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Marketing

Talking


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TALKING


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TALKING

ROI I t


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ROI Impact

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


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Sales

Energizing


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And why do this?


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And why do this?

eBags: 76% of purchasers used the online reviewsForester Research ROI:

$200K investment = $400K Profit first year

Petco : customers who browsed by rating were 49%more likely to buy

Less than 25% of ecommerce sites have reviews but96% who have them rate as effective


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Support

Supporting


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Development

Embracing


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The Conversationbefore the sale


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We think the future of advertising is great productsthat have marketing embedded in them.

Jeff HicksCEO

Crispin Porter + BoguskyOctober 2006

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


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Something remarkable is worth talkingabout. Worth noticing. Exceptional. New.Interesting. Its a Purple Cow. Boring stuffis invisible. Its a brown cow. Remarkable marketing is the art ofbuilding things worth noticing right intoyour product or service.

Seth Godin

Author / Speaker / Marketing Expert

Source: Purple Cow/ Seth Godin / Page 3


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Old Marketing

PRODUCT

PACKAGING

DISTRIBUTION

CRM

ADVERTISING

CONSUMER


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When it all comestogether


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Documents

Tv Channels in Us