Archive for July, 2006

What’s Wrong With This Model!?

In a recent article in Brandweek titled Sprint Users Can Get ‘Primped’ a show provided through GoTV is provided to Sprint mobile customers for $6.99/month with no ads, but with product placement embedded in the video.

I’m sorry, but I don’t get it! The customer will pay $6.99 and they’re charged for air-time and they’re exposed to product placements. I don’t see the model working! I suppose it’s a little like pay-per-view where you pay a cable subscription, a per-event charge and still have to see the product placement or branding on the boxing ring. It seems to me that the carrier, and the producer of the show stand to gain much more by driving more people to watch over their phones if they reduce the financial burden on the customer. Why charge for the content? Let the sponsors pay the bill and give it to the customer for free (relatively!). This way you drive up the bandwidth use which should help the carrier and drive up the number of viewers which creates value for the advertisers who pay for the programming.

Someone in the value chain is getting greedy and with the number of choices consumers have, I suspect the results will be very disappointing.


Old Habits Are So Hard To Break

While I’m overly engaged and excited about the concept of contextuality, that is getting the right ad to the right person at the right time, I’m reminded in an article I just read today on how far we really have to go. See Magna TV Ratings Czar Debunks Nielsen’s Commercial Ratings Plan, Calls It Flawed to see that the media buying engine in this whole equation is still caught up in buying the program not buying the consumer. The focus is still on rating points for programs that help to set the ad rates.

The problem, from my perspective is that advertisers buy commercial time on shows because of the anticipated audience for that show. They didn’t have any other way to reach their desired audience than to do it this way. I propose a future where the programming and the audience are uncoupled when it comes to ad buys. Give the advertisers the ability to buy their targeted audience, regardless of what shows they watch. Yes, it requires a complete revamp of the TV ad buying business, and changes the economics around significantly, but in the end where consumers have many more choices of how and when they use their media, the advertisers need to strive toward contextuality to gain their desired results.


I’m Back!

Sorry for the break from posting. I’m back and looking at issues involving advertising, targeting and analytics. I may take a detour periodically to review other like or interesting issues.

I just ran across an article from the WSJ entitled Nielsen Plans to Track Viewership Of TV Commercials for First Time. Very interesting concept that may cause more problems than it solves.

From the article:

Both TV networks and advertisers expect the new Nielsen ratings will show that viewership declines noticeably when a program breaks for commercials. A particularly big drop could fuel advertisers’ push for changes in how ads are incorporated into shows, reinforcing demands for fewer or shorter ad breaks and lower ad rates. It could also accelerate the flow of advertising dollars out of television to the Internet and new digital media.

Take a look and let me know your thoughts.


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