The Paradigm of Transformation

We are going through a period where media and communication models that have been used to deliver messages to consumers at eroding at a rapid pace. That in combination with the transfer of control from marketers to consumers has left traditional media and the echo system they support wondering what to do next. The shift is taking place among all segments of the population. This is both a tread and an opportunity for companies that develop new communication models and understand the role consumers play in a brand's strategy under the new paradigm. There is no magic potion but the answer lays on a good understanding of the basics: know your target and how your product or service satisfies a specific need in the target.

Confronted with these changes, marketers can not use the same strategies they have used for the last 30 years. It is not about old or new media, it is about the role consumers have taken as creators of content whose distribution is facilitated by technology. This content can be in the form of a consumer complaining about your product and notifying the entire network in Facebook or all their followers in twitter. So brands listen up to what consumers have to say and use the same technology to empower your brand evangelizers.

The common denominator here is that the same technology consumers use to communicate is available to brands and they can identify trends and truthfully engage audiences in a conversation. You may not have the entire resources in house and need to bring them on board or outsource. There is no single formula for success. What can make a difference is the preparation of your internal resources along with a strategy that was derived from research and arrives at the intersection of a clearly defined consumer profile and how your product or service satisfies a specific need.

We Have Been There Before

Radio Was the New Media in the Late 1920’s. The Web and Mobile are the New Media in 2008. Are You Ready to Embrace Them?
In the late 20’s, new media “radio” underwent a seismic shift. Successful companies were trying new types of advertising. Procter and Gamble tried something more creative and radio 2.0 turn into a content marketing machine. P&G outspent their competitors by 30% with the creation of their own content and programming. They were so successful during the 30’s that by the time the depression was over they had created an entire category of show – the Soap Opera!

What about online video and video on demand (VOD)? Learn more at
www.luminacion.com and here.

We are in the middle of another seismic change that is driven by the Web and mobile. The market conditions are similar to the depression of the 1920’s. The magnitude of the current economic problems is highlighted by the current situation of corporations like General Motors that may be 3 months away from filling for bankruptcy and the comments of Time Inc. CEO Ann Moore: “By this October it was looking like 1931,” she said. “[Time Inc.] has never had so many advertising clients in trouble at the same time. The declines are stunning.” Moore added that she didn’t care if it technically isn’t a recession. “It is one for us.”

During OMMA Mobile conference last week in Los Angeles, I confirmed that Hispanics are top consumers of mobile content. They are in everybody’s radar from Nielsen’s reports, to information that the mobile ad networks gather. At the conference, Nic Covey, Director of Insights at Nielsen Mobile, presented data obtained via their new Mobile AdRelevance database, a mobile version of the Nielsen’s Online ad-tracking service. According to this information, many of the leaders from the online space have carved the top positions in the mobile world. The data shows that the top mobile Web destinations are ad-supported and are for news, information, or entertainment leaning brands. On the other hand, the leaders in overall mobile Web traffic are communications, search and navigation destinations.

The emerging mobile media in the U.S. resembles the online world from 7 years ago. What is promising is the fact that the adoption of services like SMS and media packages are increasing and made possible by the next generation mobile devices that compete with the i-phone. Consumer marketing brands are slowly warming up to the mobile opportunity and there are a few success stories that prove how this medium can help brands move the needle on brand awareness and sales. According to Nielsen's top rankings of "SMS brands” Coca-Cola was the only consumer brand to get top rankings in a list dominated by media, entertainment or information services. "My Coke Rewards" text-messaging program is ranked among the top 10 with a million people participating in this every month.

When we look at the Hispanic market and reports on mobile usage, it is also a promising market. The key to success seems to be the participation of teams that understand the media and the market segment and take part in the planning and execution of campaigns. The mobile concept is to open up a more “personalized” dialogue that allows for “self-expression” of your audiences or consumers. It is about a conversation, not just pushing or pulling messages. Mobile campaigns should not be considered an afterthought. If executed properly, they produce high return on investments and consumer loyalty.

The need for integration in the overall marketing plan is crucial. You need to support the initiative with a mix of new and traditional media. There are a lot of mobile applications that could be used just like we use widgets in the online world but a good rule of thumb is to keep it simple. The Coke SMS success proves it. Consumers are willing to participate and need incentives that will motivate them to enter the dialogue. Brands have to understand that consumers are in control and they have to invite you into their lives.

A few ideas on mobile applications that could resonate with different segments or could be used in conjunction with traditional media to engage new users are bellow:

1) Mobile and online social networks that integrate music, games, entertainment or information. The content has to resonate with your audience.
2) Working with bloggers that have large audiences and specialize in specific industries or segments.
3) Integrating geo location on your mobile social network when your product or service targets young demos.
4) A variation of the above could target adults with store locations and special incentives like discounts, coupons, sweepstakes, etc.
5) Integrating mobile search in your campaign, just like online.


Mobile To Transform Portable Gaming
From Advertising Age
Apple's iPhone 3G and its game-heavy AppStore may well push mobile gaming into the mainstream, Ad Age reports, in much the same way that the Web brought casual gaming to the masses. The trade pub points out that it wouldn't be very difficult for the likes of Apple and Google to develop an in-game ad network for their mobile phones. Google, for example, already owns an in-game network. Microsoft, which owns the in-game ad network Massive Incorporated, is also rumored to be working on its own phone. Sony, which has the PSP portable gaming device and the Sony-Ericsson line of phones, is also rumored to be working on a PSP phone. It has its own in-house in-game advertising team and has partnered with ad networks like IGA.

"The thing with casual gaming is that it hits a much bigger demographic than console games that just tend to attract younger men, so now with mobile gaming you have an even greater potential for generating ad revenue, more than PC games ever could. More people have phones than PCs, and they're using them more often and with more [downtime and] opportunities for gaming," said Rob Enderle, principal of the Enderle Group. A recent study from NPD Group corroborates those claims, finding that smartphone users play games more often than they use business-related functions. According to the study, playing games was the most increased use of the phones over the last three months. - Read the whole story.


Remember, you need to integrate mobile in your master plan and support it with the appropriate media mix. For more information, call us or email us at 866-798-5577 x 111 or ivan@ethosagency.com


Quote
Technology presumes there's just one right way to do things and there never is.

Robert M. Pirsig

The Online Video Opportunity On A Recession

I got the first glimpse of a slowdown of the economy when a friend that is very active in chambers of commerce at the national level asked me if clients or other business owner with whom I socialize had reduced budgets. This was October 2007. Back then I had not felt recession first hand. Fast forward to January 2007, and the picture changed dramatically. Several friends that owned business were voicing their concerns on the slow down and I received the first request for postponement of projects.

Does that mean you have to stop everything? The answer is no. Large corporations usually increase budgets during these slow downs and that results in increased market share at the end of the down cycle.

In the digital era there is opportunity for everyone. Small and large companies can benefit of new online offerings like online video. According to recent research from comScore, 75% of Internet users watched online video in November 2007. Online video has many different manifestations from user-generated content on YouTube to commercials taken from the television airwaves. The key point when marketing on the Internet is the need for a new approach to video - the development of relevant, engaging content that is authentic and applicable to the topics that the user has been searching for.

As a marketer, you need to build a story around your brand functionality and put it center stage. What sets this apart from a shameless promotion is the relevancy of the content. A good example of this is what some hotels are doing: they create video content that gives viewers an insider tour of a city's hot spots, hosted by the hotels' concierges. According to Bradley Inman, when audiences view video that is interesting and relevant to them, they have a much richer experience. In addition, their engagement with the brand is far more valuable since they care about the story and trust the person telling it.

The opportunity here is the social interaction made possible by the Internet. You have a number of tools: blogs, social networks and widgets that facilitate spreading these videos virally. The saying says that a happy customer will tell 5 people, with the Internet, that same person could share a video he found interesting with his entire address book and friends in a network. Imagine loading several version of the video on widgets and tracking what works better or segmenting them by demographics.

On December 2007, I outlined the transformation taking place in the media and advertising industry. This change was caused by the Internet and the higher adoption of online video with the growth of broadband connections among other things. Technology has increased the output quality of cameras and that in turn allows for broadcast quality productions via small productions that cost a fraction of a traditional TV spot. Under these circumstances marketers have the tools to leverage the power of the Internet and online video to create strong and organic interactions between their brands and consumers.

The 4 Screens Strategy

TV, Web, Mobile and In-Flight

Innovation is the name of the game according to a survey (October 2007) of marketers by Next Level Strategic Marketing Group. Nearly two-thirds of respondents said their upcoming strategies would include innovations, line extensions or new marketing initiatives. Advertising is going through a period of change due to the revolution in media consumption. U.S. consumers are spending more time online and often using DVRs to time-shift their TV viewing, creating a disconnect with marketers who rely exclusively on the same old ad buys they've made for years. The best way to succeed in the New Year is to keep it simple. The plan for 2008: Innovate, review the ad media mix and don't rely only on the tried-and-true.

Luminacion has a turn key opportunity in 2008 to help corporations reach the fast growing second generation bilingual Hispanics via LatinEyes, an English language show that airs nationally on over 60 television stations. This gateway allows us to provide clients with targeted marketing opportunities where marketing communication is delivered using geo, demo or behavioral targeting that leverages our multi-platform distribution. With product placement opportunities and enhanced distribution your brand’s presence improves exponentially and continues from platform to platform. The complete circle of the “The 4 Screens” strategy includes television, web, mobile and in-flight.

The strategy is enhanced with brand sponsored contest that are build around categories like travel, entertainment, cooking, technology, financial, health, automotive, style, culture and arts. A perfect fit for clients that look for organic product integration or that want to sponsor a segment or promotion in the context of the category. For more information, visit www.luminacion.com or email your inquires to info@luminacion.com

Nelly Furtado interview on “LatinEyes”

Association of National Advertisers Reports

Multicultural Markets and Mobile Marketing
The Association of National Advertisers recently surveyed its members and found that 38% of multicultural marketers are using mobile marketing, compared with just 28% of general-market advertisers. Twice as many multicultural marketers also said they plan to start using social networking for the first time in this upcoming year, compared with 19% in the general market.

Online Video Attracts Six Out of Ten Internet Users Weekly

According to a recent Horowitz Associates report, Broadband Content and Services 2007, six out of ten high speed Internet users watch/download online video content at least once a week and 86% do so on a monthly basis, compared to 45% and 71%, respectively, in the 2006 study. News and user-generated, non-professional content are the most often viewed genres, followed by movie previews/trailers, music videos, and previews/segments of TV shows. Weekly viewing of full episodes of television shows doubled from last year, with 16% of high speed Internet users watching TV online on a weekly basis. NBC and ABC are the networks Internet users mention the most frequently for online TV content, with Grey's Anatomy being the most often mentioned TV program viewed online. While consumption of broadband video has grown, the study shows that television is still the preferred platform for traditional TV content: 70% of Internet users who watch TV online say do so because they missed the episode on TV. For more about this study conducted Sept.-Oct 2007 by Horowitz Associates, please visit http://www.horowitzassociates.com/bcspr.html

The top 10 wireless trends for 2008

1. Wireless networks will remain the domain of wireless operator
2. The first Android phones hit the market
3. Camera phones will get even fancier
4. Mobile ads will come to a cell phone screen near you
5. WiMax will become available
6. Openness will continue to dominate the wireless lexicon
7. Nokia will become a major mobile software player
8. Getting lost will get harder
9. More touch screens
10. Silicon Valley will become a wireless industry hot spot

Source: Techland via Fortune
http://techland.blogs.fortune.cnn.com/2007/12/31/the-top-10-wireless-trends-for-2008/

The Psychology of Social Sites

If it was a movie pitch the line would be something like: social science and basic human needs meet Web 2.0. In the report, Meeting Business Needs by Meeting Social Needs: Why Size Matters, Communispace deciphers which social needs are met by participating in social networks. Research from Communispace supports the premise that people are looking to fulfill six essential social needs online, and drawing on the Maslow hierarchy of human needs, concludes that businesses that help facilitate those needs are more likely to create deeper emotional bonds than usually exist between companies and customers.

In the report by Julie Schlack, Michael Jennings and Manila Austin "Meeting Business Needs by Meeting Social Needs...” the Communispace researchers, building on the work of social scientists, have identified the specific social needs that are met through participating in social networks. The study addresses "Six Social Needs" and relates them to Online social networks, suggesting that business can take advantage of these observations in creating more affinity with their prospects and customers.
Download the report at Communispace site. http://www.communispace.com/research/abstract/?Type=All%20About%20Communities&Id=38

Media Trends for 2008

Media Trends

1.- Television media buyers and marketers using that media will look for options in 2008 and beyond as they face a number of issues including the writers strike, alternatives to television viewing, and the continued growth of the web.

2. - Newspapers and other printed media outlets will continue to see diminishing business in the printed sector and growth in the online editions. As a point of reference, the real state industry who traditionally has used conventional media, when faced with the current crises saw that total ad spending decreased by 3% while online spending increased 25.8% (Borrel and Associates, 2007 Study).

3. - Time shifting among television viewers will grow along with increased penetration of Digital Video Recording devices (DVR). DVR devices are offered by cable companies, satellite providers and companies like Tivo. Currently one out every five households in the U.S. has a DVR and its share is expected to reach 60 million households by 2011. Dallas, Los Angeles and the San Francisco DMA, top the list for DVR penetration at 26.5%, 25.9% and 23.5% respectively.

4. - The digitization and online conversion found in the general market is also reaching the U.S. Hispanic market. The future of the U.S. Hispanic online segment looks very promising considering the predictions of booming Hispanic purchasing power - surpassing $1 trillion in 2010, or 10.9 percent of total U.S. purchasing power - and the high percentage of U.S. Hispanics that are online. Research by Pew Hispanic Center on 2007 indicates that 78 percent of English-dominant Hispanics and 76 percent of bilingual Hispanics use the Internet.

Another study by Experian Simmons shows that U.S. Hispanic Internet users consume more media and spend more time with technology than the general U.S. population. Additionally, with nearly 80 percent of online Hispanics using broadband, the study concludes there is significant growth potential for online video advertising.

5. - Content creation will also continue to shift from traditional providers to the people. Nokia’s latest study, ‘A Glimpse of the Next Episode’, predicts that within five years a quarter of all entertainment will be created, edited and shared within peer groups rather than coming out of traditional media groups. The study covered 17 countries were audiences asked about their digital behaviors and lifestyles. According to this study, 25% of all content will be created by people like you. However, quality will continue to evolve beyond what you currently see in YouTube and other social networks.

Nokia also looked at four emerging trends that will make entertainment more collaborative and creative as we move towards Circular Entertainment. These trends are listed as, Immersive Living; Geek Culture; G Tech and Localism.


Eight Business Technology Trends to Watch in 2008
Provided by McKinsey & Company

Eight emerging trends are transforming many markets and businesses. Executives should learn to shape the outcome rather than just react to it.
Technology alone is rarely the key to unlocking economic value: companies create real wealth when they combine technology with new ways of doing business. Through our work and research, we have identified eight technology-enabled trends that will help shape businesses and the economy in coming years. These trends fall within three broad areas of business activity: managing relationships, managing capital and assets, and leveraging information in new ways. Read the whole article.

Creative leaders can use a broad spectrum of new, technology-enabled options to craft their strategies. These trends are best seen as emerging patterns that can be applied in a wide variety of businesses. Executives should reflect on which patterns may start to reshape their markets and industries next-and on whether they have opportunities to catalyze change and shape the outcome rather than merely react to it.


What to do?
Based on the above market trends, brands, marketers and agencies will look at innovative ways to communicate brand messages to audiences that are segmented among several media. The mass market delivered by networks is a thing of the past. The new rules of the game call for the use of technology that allows for better measurement as well as integration of several distribution platforms that provide for better targeting.


Opportunity
Luminacion creates organically branded content for distribution on several platforms: television, online, mobile and in-flight entertainment. The content targets bi-lingual and English dominats Hispanics and crosses over into the genereal market. The platform provides you with B2C and B2B reach and the option to build a system that is more effective and efficient. Marketing in the era of the internet is about niche marketing. Contact Luminacion to put your brand center stage in 2008.
www.luminacion.com


Quote
Research it. Plan it. Do it
From: a Thousand Paths to wisdom, by David Baird

TV Product Placement Is Up

The importance of product placement in film and television and its value for brands continues to grow. The 30 second spot faces many challenges in the era of Tivo and DVR's. Marketers need new options to bring their messages to consumers.

Once product placement takes effect, it is permanent. Viewers of a film or TV program will watch it over and over. And as more and more videos find a second life via the Internet, mobile, VOD and DVD distribution, products organically placed in these videos will benefit from increased brand awareness. Measuring the overall benefit is still difficult because of the lack of a system capable of tracking across different media platforms.

On the upside, product placement in TV increased 30% in 2006 from 2005 numbers. Luminacion (www.luminacion.com) offers a great vehicle for product placement for companies trying to reach bilingual Hispanics via the television show LatinEyes (www.LatinEyes.tv).

IC