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M&M’s Blog goes behind the headlines to offer a running commentary on the business dynamics within the international media and marketing industry. The M&M editorial team joins forces with industry experts and local market heroes to balance a bird’s eye view of global trends with the importance of local insight.

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• Paywall 2.0 – The customer knows best

  17 May 2013

  When the Wall Street Journal became one of the first national newspapers to install a paywall in 2007, it was heralded as the saviour of an industry facing declining print sales and advertising revenues. But as history has shown, charging users for the same content they were previously getting for free, and adopting a ‘one-size-fits-all’ approach wasn’t enough in the move to digital. Media companies that recognised they do not have a one-size-fits-all customer, and have taken a flexible subscription approach have flourished; we call this approach paywall 2.0.

  A few years ago the media industry was on the brink of extinction. Traditional print revenue was declining as consumers across the globe embraced the shift to digital. Advertising revenues were diverted to the Googles and Yahoo!s of the world while readers embraced the benefits of the online news cycle, such as 24/7 reporting and instant access from a plethora of devices.

  Why did some media companies survive and some close their doors? Several titles adopted what appeared to be the most straightforward solution, to put articles behind a paywall – but that strategy has had a decidedly mixed track record. For every notable success like the Wall Street Journal, Financial Times and New York Times, there have been high-profile failures.

  Those that thrived have shifted their understanding of the role of a paywall. It is in fact not about the content itself, and it’s certainly not about the paywall and charging for access. Rather, it’s about understanding the customer and the changing, dynamic requirements as we’ve moved to a multi-channel, digital world where content can be bundled, unbundled, rebounded and distributed in a multitude of ways.

  Rather than viewing the paywall as a toll booth, which implies placing a barrier between the service and the customer, smart media companies viewed the paywall as an opportunity to reconsider what their customers want. They began to think first and foremost about their customers, asking themselves how customer requirements for content and content delivery are changing in this online and multi-channel world.

  Do some customers want to simply view a few articles, while other customers want unlimited access? Do some customers want today’s news only, while others want the ability to search the archives? Do some customers want access only via an iPad, or home delivery, while other customers want to maintain context across all their devices? Do local readers want the same thing as readers that have moved to a foreign country but remain loyal to their hometown paper?

  Media companies were able to establish deeper connections between their customer and the brand the media property represented, which in some cases extended beyond traditional journalism. We now call this “Paywall 2.0.”

  With a customer-first Paywall 2.0 strategy, media companies are able to capitalise on the global opportunities facilitated by the digital age and deliver creative content packaging that builds a predictable recurring revenue model focused on subscriber relationships.

  That flexibility could be through the offering of cross-title bundles, allowing customers to access content across a variety of devices such as tablet, smartphones, PC or print and doing it all with personalised packages or offers. Companies can also offer additional services at a premium such as football highlights or additional gaming services. The Sun’s bingo gaming service is now one of the company’s most profitable arms and is the UK’s largest bingo service. Media companies will be able to extend products and offerings such as these through creative content packaging and build a predictable revenue model focused on subscriber relationships. 

  Across all industries, the digital age and increased connectivity is allowing a shift to customer-centric business models built on flexibility, convenience, and recurring revenue. Those media companies that have created valuable relationships with their customers are testimony to the success of this model. The Financial Times recently announced its digital subscribers now outnumber print sales, while the New York Times stated its subscription sales are rising faster than advertising dollars are falling.

  The organisations that focus on building customer relationships and managing these through innovative pricing and packaging will be able to make the most of the huge global opportunities for media companies. In the new era of Paywall 2.0, the customer knows best.

  By Brian Bell, chief marketing officer, Zuora
  @BrianBell123

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  Posted by: Bloggers' Gallery

• But I just need it to work

  15 May 2013

  Many brand marketers deem the emotional connection as the Holy Grail. But have brands lost sight of practical consumer needs? It’s as if marketers are too willing to accept all products are created equal. As we all move out of the recession at snail’s pace, it’s important to remember today more than ever that amidst all the marketing noise, the power of functional product benefits is still vital to consumer purchase decisions. This could not be more true than when it comes to consumer packaged goods where, more often than not, efficacy—not emotional engagement—remains the key driver of repeat purchase.

  Put simply, consumers need products that work. If brands can differentiate their products through enhanced function, for example through ingredients, packaging or delivery system, this can radically strengthen consumers’ experiences and overall brand engagement.

  Take Maker’s Mark bourbon brand, which announced this year in the US that it would reduce the alcohol content by 3% in an effort to meet rising demand. It received overwhelming outrage from its customers, causing the company to reverse its decision and to keep the Maker’s Mark formula unchanged. Function clearly mattered here because the brand’s customers would not accept changes to the product’s strength and overall purpose.

  This example shows that the functional benefits of a brand drive purchase and they are also inextricably linked to consumers’ perceptions of that brand. With this in mind, marketers need to take a step back and ask: what is it that consumers are looking for when they buy this product today? As well as this, at the centre of the thought process there needs to be vast appreciation for how a product exceeds expectations by delivering differently and better than others.

  I believe that differentiated functional benefits can be the answer to unlocking that elusive emotional territory. By investing more in being functionally differentiated along with innovation, marketers can ensure that their products meet the core needs of the consumer. Once the function is established, brands can more credibly ladder up and engage emotionally. The result is the delivery of a brand promise that will be richer and even more meaningful.

  By Mark Ringer, executive creative director, Anthem! Worldwide
  

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  Posted by: Bloggers' Gallery

• Look who’s talking: understanding social influence online

  13 May 2013

  Do influencers really exist? Way back in 2000, when Facebook was but a twinkle in Mark Zuckerberg’s eye, Malcolm Gladwell’s The Tipping Point introduced the concept of “mavens”, the so-called super-consumers brands hungrily pursue as the Holy Grail of engagement. We all knew then that word of mouth was a powerful tool – but really, how influential could an individual be?

  Fast forward a few years and the quickly established social networking culture made this question rather more compelling. Brand strategists the world over have been devoting ever more energy converting the well-connected social networker into that fabled brand ambassador, whose views and endorsements send others rushing out to buy the latest products.

  Indeed, you can’t help but notice the number of brands attempting to target them explicitly, often in conjunction with services such as Klout and Peer Index. We’ve seen Cathay Pacific Airlines opening up its airport lounges to those with a strong influence score; Air New Zealand and Dell offering financial rewards to those whose recommendations lead to purchases from others; and, most recently, Ford looking to recruit 100 influencers for its “Social Remix” campaign.

  It’s also hard to avoid the numbers surrounding social networking. We may hear relentless about the supposed “death” of Facebook, but the truth remains that nearly two thirds of UK adults are classified as social networkers, with 45% saying that they “like” or “follow” brands. These figures are set to rise further; by the end of the 10s, around 75% will be using social platforms, with a jump to nearly 100% among the youngest tribes.

  Social influencers aren’t going anywhere in a hurry. And nor are brands’ attempts to isolate, categorise and engage them.

  The drunk guy at the party

  The problem is, there aren’t all that many brands doing it well – many are simply talking at their social audiences, something about as welcome as the drunk guy at a party; no-one wants them to be there, let alone listen to what they’re saying.

  It’s also too easy to under-estimate the potential of those not categorised as “super influencers”: 37% of consumers agree that they’re “always telling friends and family members about new services or products” they’ve discovered (rising to nearly 60% among those who follow brands on social networks). And another third neither agree nor disagree – suggesting they are at least sometimes recommending products. That makes for a lot of potential influencers.

  Why do we share?

  Status is a huge driver. When we ask networkers if they like it when other people endorse or share the content and posts they place online, around 60% say yes – a figure that climbs to 75% among 16-24s. This need for recognition is not new, nor is it exclusive to social networks – they have simply fuelled the desire to gain outward validation still further.

  We’re also increasingly selective about who we engage with and why. While the early days of Facebook mainly consisted of telling the world you were eating a ham sandwich or sharing 64 pictures of a fun party, apps like unbaby.me and Undrip are now springing up precisely to avoid this sort of unfiltered irrelevancy and implement a little more control. We are now much more likely to share on a one-to-one or one-to-a-few basis, broadcasting less and curating more. It’s all about showing your expertise.

  Due to this increasingly self-conscious approach to networking, a more thoughtful approach to social sharing is ripening and will undoubtedly characterise behaviours in the years ahead. In turn, we expect a greater number of consumers to adopt a digital etiquette routine when engaging in digital communications and to demand a greater level of quality in the content shared by their online contacts – whether individuals or brands. The focus will be on connections and messages that are genuinely relevant, entertaining, purposeful. Meanwhile, the thoughtless status update or branded intrusion will seem just as unwelcome as a piece of junk mail. And for those who subscribe to the super-consumer model of influence, it seems inescapable that these shifts and changes will shape the criteria by which influence is defined. Today’s super-influencers might simply be tomorrow’s drunk guys at the party.

  By Karen Canty, head of news, Future Foundation

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  Posted by: Bloggers' Gallery

  Tags: Online, Social, Facebook

• Marketing myth buster: Big data is unmanageable

  13 May 2013

  Big data is really just data, with the right planning and technology, brands can use the massive amounts of data now available to their advantage.

  For far too long, it’s been presumed that ‘big data’ is the sole preserve of rocket scientists, rather than being available to guide marketers with their everyday decisions. This is a particularly damaging myth because it leads marketers to rely on unnecessary guesswork and gut instinct, wasting millions through poor spending decisions and unrealised profits. It’s created a culture in which not one company in 10 has a scientific way of distinguishing the effects of its marketing campaigns from competitor activity and not one in 50 knows whether it should increase, cut or reallocate its marketing budgets.

  To some extent, this misguided belief has been allowed to take root because it reflects what was once true. Historically, marketers would need to outsource the job to a specialist data modeller – a process that would often prove hugely expensive and time-consuming. Fortunately, this has been confined to the past with the advent of easy-to-use desktop analytics software, which means marketers no longer need to rely on the rocket scientists. Instead, big data is now perfectly manageable, which is to say that marketers can model data themselves, from an ordinary desktop PC, and determine the correct marketing mix for optimum return – a crucial development that could be worth millions.

  By Glenn Granger, chief executive, marketingQED

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  Posted by: Bloggers' Gallery

  Tags: Data

• Let’s get physical!

  10 May 2013

  Recent research suggests that people are more receptive to advertising messaging when they exercise. I (JB) caught up with Zoom Media managing director Alex Peacock (AP) to find out just why this is.
  

  JB: You’ve worked in fitness media for over 11 years. How has the consumer changed in that time?

  AP: More than any of us would ever have imagined, and I suspect we ain’t seen nothing yet! 11 years ago consumers watched TV in a linear fashion, one programme at a time, probably with other family members or friends - and TV ads were part of the deal. Now, though, consumers no longer behave in a way that fits with the traditional TV advertising model. They can pick and choose what they want to watch, where to watch it and can skip the ads. And if that’s not making life for advertisers difficult enough, they’re also doing other things, like internet surfing and social media, while they’re watching TV. 

  JB: What makes the fitness consumer a valuable target for advertisers? 

  AP: Regular gym goers are typically a more upmarket and affluent group which makes them an appealing audience for advertisers – but typically these people are light viewers of ‘live’ TV which makes them difficult to reach through traditional routes.

  JB: Why has Zoom Media chosen to operate globally within fitness and leisure environments?

  AP: In the UK we are wholly focused on providing digital and fixed media in health clubs, while in other countries we also offer advertising opportunities in bars, restaurants and family entertainment centres. The common factor in all of these environments is that there is a long dwell time and people are relaxed. This state of mind is why, as announced in a recent survey, over 65% of very affluent consumers said health clubs and gyms are the places where they are most receptive to advertising.

  JB: How has technology changed the way in which you deliver content to consumers?

  AP: The biggest change has been the way we can now make content highly tailored to suit the environment in which it is being shown. We can customise our extensive range of content according to audience preferences, and can also localise campaigns for national advertisers to optimise their relevance. 

  JB: There are a growing number of networks that, like Zoom, offer targeted TV out of home. Where do you fit in the media world – a TV channel or Digital Out of Home channel? 

  AP: The answer is both! We are an effective TV channel, but we are viewed out of home. The lines between different media channels are increasingly blurred which means that more clients and agencies understand the importance of adopting a less linear media strategy. Instead of briefs asking for £x spend in newspaper and £y spend on TV, they focus more on the consumer and the best place to reach them in an engaging way through the most effective channel – whatever that may be. This means that planners are increasingly receptive to media routes that don’t fit into traditional silos, which is great for us!

  JB: Are you seeing unique trends with consumers – and how they consume content within fitness and leisure environments – in different parts of the world?

  AP: There are certainly cultural differences between our markets in Europe and North America and the way in which content is provided varies accordingly. For example, music video programming is a core part of our offering and music tastes vary not just by country but by region, even within different parts of the UK. That’s why it is critical to tailor content programming down to a single venue, not just by market. That said, with the proliferance of on-demand services, consumers everywhere now have an expectation in terms of watching the programming of their choice in their own time. Our recent strategic alliance with Netpulse (announced in March  this year) connects us with the world’s leading interactive personal media network so we can reach the fitness consumer not just within the gym environment but also during their workout experience through Netpulse’s personal cardio screens and workout tracking applications.

  JB: What’s the most exciting development/innovation in the media industry today?

  AP: The most exciting developments in recent years are those that have enhanced the ability to reach consumers with advertising served on an increasingly targeted, even individualised basis – from products such as Netpulse through to Sky’s new AdSmart platform. This is definitely going to be an increasing trend over the next 12-18 months. It will undoubtedly lead to a change in the way that advertising is bought and planned and can only make things more efficient for advertisers.

  Comments (0) | Permalink

  Posted by: Jenni Baker

  Tags: OOH

• Have your say: The International Media Image Survey (I-MIS)

  10 May 2013

  M&M Global is supporting a new survey called the International Media Image Survey (I-MIS), the first in a series of annual surveys, designed to understand how the key media brands/organizations/agencies are perceived. 

  Your opinion is really important and this is your opportunity to help shape the media industry and answer questions such as:

  - How important is strategic planning vs ROI or strong technology solutions vs project management and just as important who is the best/worst at it?

  All replies are anonymous, but you will be helping to build the first benchmark of how the industry performs. The survey should only take five minutes of your time and as a thank you, you will receive highlights of the results when they are published and be entered into a prize draw to win one of two Kindle Fires.

  Click the image below to enter the survey and keep an eye out for the results on mandmglobal.com this summer.

  

  Comments (0) | Permalink

  Posted by: Jenni Baker

• What is an ‘experience’?

  07 May 2013

  Marketing speak. Non-stop buzzwords and 'bullshit bingo', right? We've all heard the jokes. But as the industry and marketing strategies constantly morph and evolve, language needs to be invented and created all the time. Sometimes meanings get diluted beyond the point of all recognition: ‘integrated’, ‘digital’, ‘engagement’, ‘social’, ‘content’ - these are now umbrella terms that serve generic purposes. They tick a box rather than offer definition.

  ‘Experience’ is one of the more recent additions to marketing vocabulary, and it's the frame through which we now talk about brands. Relationships between brands and consumers have changed exponentially, and the way in which brands interact with people is crucial to sustainability and profitability in the 21^st century. But what do we mean by experience? And why do we think it is the best way to evaluate brands from here on out? 

  Here’s the why: Experiences form the basis of all types of human relationships. Our view on the world is entirely shaped by the personal positive and negatives experiences we encounter throughout our life. The more experiences we have, the broader, stronger and better informed our opinions. 

  But at this level, it’s still a little too obvious to be deemed a fundamental truth of marketing. If we dive into the relationships between people and brands that engage them, we can build a view on defining those specific experiences that drive brand recognition and loyalty. What would we specifically define as an experience with a brand?

  A visit to a retail store; a transaction at your bank, a lengthy phone call to customer service - these are the interactions that determine customer satisfaction, but don't individually create the experience of the brand. Customer satisfaction is short-term sentiment directly linked to specific, individual interactions. The overarching experience of the brand is a collation of each moment of interaction between the brand and the consumer, every single touchpoint.

  So you can begin to see where the definition has become diluted. Ad agencies would tell you that an experience is a thirty second TVC or a bus side; experiential agencies that it's an event; social media specialists that it's your Twitter feed. But real experiences cross genre and channel and defy blinkered assessments. Strong brands are aware that every single moment of interaction is a chance to build and to influence the way people feel. 

  An interesting consideration borrows from a neuro-psychological approach, that it’s in fact a consumer’s peripheral vision that is the most significant in brand perception. Overt messaging and experiences will resonate, but it’s the more subtle, seemingly inconsequential touchpoints that contribute to lasting perception. Whether it’s an overheard conversation or a billboard seen at a football match on TV, it doesn’t need to contain a particular tactical message. Rather it’s a signal that contributes to the formed opinion. It’s one puzzle piece added to another, all contributing to the experience of the brand.

  The most successful brands make a lasting imprint on a person as a result of continual, positive moments of interaction, regardless of size or context. It is these micro experiences that drive satisfaction, loyalty and emotional attachment.

  Brands of all colours are now being constantly challenged, scrutinised and held to account. Expectations are higher, news flows faster, and the demand for transparency, authenticity and loyalty is ever more precious. To succeed in the future brands have to re-evaluate the way they see themselves. Put yourself in the shoes of the consumer, and a brand can start to truly understand and define its own experience.

  By Toby Southgate, chief executive UK & Ireland, The Brand Union

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  Posted by: Bloggers' Gallery

  Tags: Branding

• Can we watch any more TV?

  02 May 2013

  By George Peters, broadcast manager, Carat

  The UK watches more TV than ever before. According to a survey by Telescope our TV consumption has increased by more than 30 minutes since 2006 and we now watch four hours a day. But only three minutes of this is viewed on a device that isn’t a traditional TV, according to the latest Thinkbox review.

  This leaves two options for the future. Either our consumption of TV content will increase, or the way we watch it will change.

  In 2013, we have many more devices with the ability to stream TV than we did back 2006. A plethora of smart phones, connected TV’s, set-top boxes, consoles, tablets and even “phablets” means we can access video content wherever we are, whoever we’re with and whenever we want.

  Not all of these devices have reached critical mass and many are still in their infancy. Surveys put tablet ownership between 11 and 22 per cent in the UK and just five per cent of homes have a smart or connected TV. Only two thirds of these smart TV owners actually connect them to the internet.

  Evolution of these devices will provide us with easier, better and quicker access to content. The USA is two or three years ahead of the UK in the advancement of set-top boxes, according to Nigel Walley of Decipher. Set-top boxes in the US now have 2 TB of storage, faster internet connections, six to eight tuners - Sky+ has two and Virgin/Tivo has three - and smarter software to utilise these connections. In the console market, both Microsoft and Sony will step up the game substantially with their next generation consoles. Microsoft has reportedly filed a patent to project augmented reality 3D images onto walls to provide outstanding quality for the next-gen Xbox whilst the PS4 is largely expected to be at least 4K capable.

  Then there’s the technology that may seem a pipe dream but will be here sooner than we think. Google recently asked the public to trial Google Glass which allows people to be connected wherever they want through a simple face-frame. Watching EastEnders as you walk down the road might well be dangerous but that won’t stop people doing it! Both Samsung and Apple reportedly working on a new “smartwatch” whilst researchers at Queen’s University, Canada have developed digital paper, Papertab. It’s easy to imagine how this could turn into devices to watch TV wherever we are.

  Then there are innovations which could simply free up our time to watch more TV. Google’s self drive car is one of the tech giant’s latest “moon shots”. It’s easy to imagine that your windscreen could become your TV screen as your car “drives” you about town!

  It’s not just the devices on which we’ll be watching TV that needs to be considered – there’s also the question of what we’ll be watching in the future.

  The internet is opening up connections for the world to share all kinds of knowledge and creative TV content will surely benefit. The big concern is will there be enough organisations to fund future creativity.

  In the UK, traditional content providers such as the BBC, ITV and C4 are looking out for more revenue streams to challenge the likes of Sky, which has income from 10m subscribers as well as advertising. The US Networks are taking less risks than previously, with new commissioning strategies meaning only half of first series are commissioned to limit risk.

  However there are new entrants to the market. Netflix has received a lot of PR around its distribution model of the critically acclaimed House of Cards and has picked up the next series of Arrested Development to distribute in the same way. YouTube is supporting popular users of the platform to create new content, such as mock-interviewer KassemG and the Sam Macaroni’s Epic channel. Reports also suggest that Spotify will join this space and start to fund video content.

  And we shouldn’t ignore advertiser’s attempts to get in this space. Advertising funded programmes aren’t new but in the past have had to rely on TV channels to broadcast them to large audiences and meet certain “standards”. In the future, with the above expansion of devices and platforms, distribution could become a lot easier, more varied and targeted. Bite-size series, such as David Mitchell’s Soapbox, have already been produced. The only constraint to producing 30 minute shows rather than 3 minute shows will be financial.

  In summary the devices are there to free up our time and more people have the opportunity to get in the content game than ever before. If there is demand, there is certainly room for us to watch more than four hours of TV a day.

  Comments (0) | Permalink

  Posted by: Bloggers' Gallery

  Tags: TV

• Visa on the evolution and future of commerce

  29 April 2013

  Visa chief marketing officer, core products, Kevin Burke took to the stage this afternoon to address delegates at The Festival of Media Global in Montreux, Switzerland on the topic of marketing in the world of social commerce.

  He began by taking a look at the evolution of commerce through the years:

  	Past	Present	Future
  Global media consumption/week	60 hours	75 hours	90 hours
  % media consumed globally	15%	67%	80%
  % global mobile penetration	12%	90%	99%
  Digital commerce	$286bn	$1.25trn	+$2.00trn

  He then began exploring what the future has in store for commerce and suggested that it will be smarter, seamless – omni-commerce.

  “Omni-commerce will redefine the consumer experience based on three principles: people power, intelligent communication, seamless experiences,” said Burke.

  1. People Powered

  People are becoming increasingly connected, influential and powerful with 1.85 billion worldwide social network users by 2014.

  2. Intelligent communications

  Consumers are leveraging more data than ever before and expect merchants and banks to keep pace – 620 million mobile search queries performed globally per day.

  3. Seamless experiences

  Consumers want simple, seamless experiences across devices, channels and modes of payment – smartphone and tablet owners are 3.4 times more likely to conduct m-commerce.

  “Omni-commerce is the way of the future,” concluded Burke.

  

  You can follow all the updates from The Festival of Media Global on Twitter via the #FOMG13 hashtag

  Comments (0) | Permalink

  Posted by: Jenni Baker

  Tags: Commerce, M-commerce

• Changing the banking rules: Itaú’s Andrea Pinotti Cordeiro

  29 April 2013

  If there’s one thing that gets a crowd going, it’s babies. We’ve seen the global phenomenon that was Evian’s ‘Roller Babies’ and now the water brand is going for round two with its latest ‘Baby & Me’ global TV spot – it’s just a recipe for success.

  But is it something that you could place in the financial services sector? Turns out it’s something that completely worked for Brazilian bank Itaú Unibanco.

  Speaking at The Festival of Media Global in Montreux this morning, Itaú Unibanco’s marketing director Andrea Pinotti Cordeiro shared insights into how the brand is setting the pace among financial brands in how it utilises mobile and social technologies to both inform and engage customers.

  “It’s not enough to have good products or to be a good bank,” said Cordeiro. “You need to be relevant, engage people and do things that really change the world.”

  And I bet you’re wondering where babies fit into this strategy? Well it turns out that for Itaú, you need “to tell stories to inspire people and to inspire changes”. Electronic payments are a huge challenge for Itaú in Brazil, so how is the brand tackling the issue of encouraging consumers to go paperless? By releasing a TV ad featuring a baby laughing hysterically as paper is torn up in front of them.

  Check it out and see what you think… Then tell me that babies and marketing really don’t work.

  You can follow all the updates from The Festival of Media Global via the #FOMG13 hashtag

  Want to hear more about Itaú Unibanco’s social media marketing efforts? Check out my interview with Cordeiro from last year at The Festival of Media LatAm.

  

  Comments (0) | Permalink

  Posted by: Jenni Baker

  Tags: Social, Advertising

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