Why Multichannel TV Subscribers Won’t Go OTT eMarketer


New premium channel standalone streaming services aren’t killing pay TV, and neither are veteran over-the-top (OTT) subscription video-on-demand (SVOD) services such as Netflix and Hulu. In fact, a December 2014 study by Horowitz Research found that having a multichannel cable subscription had plenty of benefits over relying solely on an OTT service.

The study looked at multiplatform viewers—those who watch at least 1 hour of TV and video content a day and spend at least 20% of their viewing time streaming TV and video content to their TV, computer or mobile device. Despite being the “core market” for OTT SVOD services, responses indicated ! that the group was still largely open to multichannel services as well, with half subscribing to both. In all, more than six in 10 were multichannel subscribers.

Multiplatform TV viewers with multichannel services cited several advantages to not relying solely on OTT video, with access to a wide variety of content and cable networks the top reasons. Being able to watch programs easily on TV and avoid internet connection issues were also key advantages, as were access to broadcast networks, the ability to sit back and surf TV channels and the option to watch TV drama live.

Friday, February 20th, 2015 digital No Comments

People Are More Scared About Internet Privacy Now Than Ever Before (MSFT)


2014 wasn’t a great year for Internet security. Between the giant Sony hack that’s being called one of the biggest corporate breaches in history to the iCloud hacks that exposed celebrities’ private photos, there have been plenty of reminders of the dangers of cyber space.

In its second annual View From Around The Globe poll, Microsoft surveyed internet users worldwide to see how differently people view consumer technology. This year, users in almost every country polled said that technology has a negative impact on privacy, with India being the only exception.


That’s a five-point increase compared to last year’s study.

“Privacy has been a concern but there’s no question that it’s reaching much higher levels than we’ve seen before,” Mark Penn, Microsoft’s chief strategy officer, said to Business Insider.

Most internet users also said they do not feel that they are completely aware of the information that’s being collected about them.


There was a strong consensus in how legal matters relating to the internet should be handled, too. Most of those surveyed felt internet users should be governed by the local laws of the country in which they live— not the local laws of wherever the internet service provider is based.

“They want to know what’s being collected,” Penn said. “And they’re looking for local laws to govern! .”

The study took place between Dec. 17, 2014 and Jan. 1, 2015, with “developed” countries being defined as the United States, France, Germany, Japan, and South Korea. “Developing” countries referred to in the study include Brazil, India, Russia, China, Turkey, South Africa, and Indonesia. Global research-based consultancy Penn Schoen Berland did the polling.

Monday, January 19th, 2015 digital No Comments

SMBs Still Consider WM Most Effective, But Online Marketing Perceptions Improve



Word-of-mouth (W-O-M) remains the the most effective marketing channel for generating new leads and customers, according to SMBs responding to a recent BrightLocal survey. Asked to choose from 12 online and offline channels, 28% indicated W-O-M to be their most effective, up from 26% the previous year. Online marketing channels – which appear to be gaining in appe! al among respondents – comprised the next 3 most-effective.
Specifically, 1 in 5 respondents reported that SEO is their most effective marketing channel, with 15% citing online local directories and 10% email marketing.

(For the purposes of the study, W-O-M was considered an offline medium. Social media was not among the marketing channel options listed.)

The importance of SEO is reflected in respondents’ perspectives concerning success metrics: search engine rankings emerged as a more prioritized metric than the number of customers walking through the door, although phone calls to the business are respondents’ most important metric.

Thursday, January 15th, 2015 digital No Comments

Still More Hype than Reality


There’s no shortage of survey research around cord-cutters—consumers who are getting rid of their pay TV subscriptions—but there’s more hysteria than fact, according to a new eMarketer report, “Key Digital Trends for 2015: What’s in Store—and Not in Store—for the Coming Year.”

Yes, some consumers are cutting the cord, but they’re in the low single digits percentagewise. A more real behavior is cord-shaving, where consumers reduce what they spend, rather than eliminating it altogether.

Individuals in all age groups are still watching a ton of TV the traditional way, even millennials.

Of course, now that HBO has anno! unced pl ans to offer HBO GO as a standalone service, all of that could change, especially as other networks rush to follow suit. So, as they say, don’t touch that dial: Unbundling could accelerate consumers’ latent thirst for cord-cutting.

What that means is you need to pay close attention to consumers’ shifting video consumption habits. TV is holding steady. It’s still the media big dog … for now. But mobile is the channel that’s growing. With all the time, money and attention flowing to digital video, marketers that lack deals with content owners and dynamic advertising are going to miss the boat.

Friday, December 5th, 2014 digital No Comments

WordMouth Again Said Leading Purchase Influencer


Razorfish-Consumers-Purchase-Decision-Influencers-Nov2014Word-of-mouth tops online reviews and traditional advertising as the top influencer of purchase decisions, finds a Razorfish survey [download page] of online consumers across 4 key markets. The study is the latest to demonstrate the importance of word-of-mouth, which has been found to be a key influence among various groups ranging from college students to female empty nesters.

In the Razorfish study, the ranking of 5 measured purchase influencers (ranked by percentage of respondents rating them as influential) broke out as follows for US and UK consumers:

  • Word-of-mouth;
  • Online reviews from other consumers;
  • Online reviews from industry experts;
  • Traditional advertising (TV, radio, print); and
  • Social media posts from friends/family.

It’s interesting to note that these respondents rated online reviews from other consumers as being more influential then expert reviews, following a theme seen in other research.

Saturday, November 15th, 2014 digital No Comments

If You Want Customers To Take Advantage Of Deals And Coupons, Use Email


We’re coming up on the all-important holiday season, in which retailers will be giving away coupons and special promotional offers in hopes of boosting awareness and selling out their wares. But for those retailers, what’s the best way to actually reach consumers?

Based on Accenture data charted for us by BI Intelligence, email is still the most effective method for consumers receiving and using coupons — by a wide margin. Around 44% of US shoppers said they prefer all their offers to come through email, and surprisingly, physical printed “snail” mail is the second-most preferred method. In-store offers can be somewhat effective, but if you want customers to take advantage of a special deal, relying on texts and social media might not be the way to go.

bii sai cotd coupon delivery methods

Thursday, November 6th, 2014 digital No Comments

Slack CEO Explains Why He Thinks His 8 Month Old App Is Now Worth $1.1 Billion


Slack Founder Stewart ButterfieldThere’s been so many billion-dollar startups these days that it’s almost starting to feel routine in tech.

Slack, an enterprise work collaboration app, is the latest one to join the club. It announced on Friday that it’s raising $120 million at a $1.1 billion valuation.

It’s hard to imagine a company as young as Slack — it launched publicly in February — to be worth more than a billion dollars. But when you’re growing as fast as it is, especially in the enterprise space, anything is possible.

When we asked Slack CEO Stewart Butterfield about it, he agreed his company’s numbers are still small in absolute terms. But the $1.1 billion valuation has more to do with the rapid growth it’s been seeing, and the fact that it hasn’t spent a dime in sales and marketing, he said.

“We still have a long way to grow to justify the valuation,” Butterfield told Business Insider. “But it’s largely on the basis of the trajectory that we’re on, and most of all, because that’s just been happening organically.”

According to Slack, more than 30,000 active teams send over 200 million messages each month. It has more than 73,000 paying customers, and it’s adding $1 million in annual recurring revenue (ARR) every month. At that pace, Slack would surpass $10 million in ARR this year, and become the fastest-ever software-as-a-service (SaaS) company to do so.

For comparison, Butterfield m! entioned Workday, a publicly traded enterprise SaaS company that’s now worth $17.8 billion. Butterfield said it’s not an entirely fair comparison, since Slack and Workday are in different businesses, but it took Workday about three years and roughly $30 million in sales and marketing — while losing about $75 million in total — to get to $10 million in ARR.

“We’ve established that people would pay for us. Slack is being valued based on its ability to make money rather than something more speculative,” Butterfield said.

Friday, October 31st, 2014 digital No Comments

There’s A Clear Shift Happening In TV Advertising (OMC)


tv viewer

Omnicom Group, the world’s second largest advertising holding company by revenue, just gave the market another major indication that TV dollars are moving to digital.

Speaking on the company’s third-quarter earnings call Tuesday, Omnicom Group CEO John Wren explained how the rise of programmatic advertising and the increase in quality inventory becoming available online over the past few months has seen a “rapid shift” in the way clients have been booking advertising.

Referencing the move from TV and traditional advertising to digital in particular, Wren said:

“Marketing budgets continue to grow and clients, especially when it comes to TV, there has been I’d say a shift when you look at traditional areas like the upfront and scatter market. If you went back a couple of years there was an urgency on the part of clients to make certain they didn’t miss out on the programming they want.

“With all the various choices of audiences you want to reach today and the ability to do it, there just wasn’t that urgency going into the upfront this year. And with respect to the scatter market, you are seeing money being diverted into other areas.

“I believe that trend will continue. I don’t believe TV is dead, but I believe there is going to be a shift.”

The upfront refers to the time of year when TV broadcasters sell all their advertising for their most attractive Fall programming ahead of time. The practice keeps the price of TV advertising high because it creates a short, limited window in which brands feel they need to lock in the best deals they can by buying in bulk.

The scatter market refers to TV advertising sold closer to the broadcast date. It is sometimes referred to as leftover advertising and is often sold at a far higher rate if the TV show pulls in bigger ratings than previously forecast.


Wren called to the move from traditional media buying to digital practices as “the shift from mass marketing to mass personalization.”  That shift isn’t new advertising money coming into the market. It’s TV advertising money (and other traditional advertising money) moving into more-measureable online advertising. That move from one pot to another was also referenced by Omnicom Media Group CEO Daryl Simm earlier this month when he said he was advising clients to shift as much as 25% of their TV budgets to online video.

Meanwhile in recent months Omnicom, which represents more than $50 billion in annual ad spend for clients like Apple and Pepsi, has signed huge global upfront advertising commitments with Instagram, Twitter, and the now Disney-owned YouTube content creator Maker Studios and became the first advertising network to trial Facebook’s new Atlas advertising platform.

All these stories compounded together ought to frighten TV broadcasters. They need to change their approach to selling, optimizing, and measuring advertising if they are to prevent this “shift” from rapidly decaying their businesses.

A shift is happening. But TV isn’t at all dead yet.

emarketerpngHowever, to put this into some perspective, TV advertising is projected by eMarketer to make up 38.1% of total US ad spend in 2014. Digital, meanwhile, is estimated to make up 28.2% of the total advertising outlay.

So even though eMarketer also predicts digital spend will overtake TV spend in 2018, there is still quite a way to go before we stop seeing 30-second ads on our TV sets. It’s also worth bearing in mind that broadcasters are ! also off ering digital advertising opportunities across their websites, video-on-demand platforms and apps, which can make up for some of the traditional advertising shortfall.

Omnicom also revealed on the earnings call that programmatic media buying — which makes the buying of media far easier than TV because the process is automated —accounts for just around 2% of the company’s revenue. However, with a recent Forrester study forecasting programmatic ad spend across North America will double to $39 billion by 2019, Wren said the company was ” rapidly evolving” its business to ensure it had the capability to serve clients in this area. There has been a “meaningful increase in demand” from clients for the company’s programmatic services over the last year, he added.

Omnicom Group’s third-quarter net revenue rose 7.4% to $3.75 billion, while net income increased 24.4% to $243.8 million. The company was boosted by strong advertiser demand in its home US market.

The earnings report came six months after the company’s proposed merger with Publicis Groupe to create the world’s biggest advertising group collapsed. The company said the pre-tax impact of the abandoned transaction in the year to date was $8.8 million, which was mainly spent on professional fees.

Tuesday, October 21st, 2014 digital No Comments

4 in 5 Companies Report Steady or Increasing CostsLead


A slim majority of marketers and salespeople from around the world say that their lead generation effectiveness is improving, while just 1 in 10 see it worsening, finds Ascend2 and its Research Partners in a new study[download page]. While that may be the case, respondents (chiefly B2B-focused) were more likely to say that their costs-per-lead are increasing (25%) than decreasing (19%).

Data quality appears to be a significant problem area in the report. In a worrisome juxtaposition, improving marketing data ranked last on the list of important lead generation objectives, even though lack of quality data and list resources tied with the lack of an effective strategy as the most challenging obstacle to lead generation success. Slightly fewer said that inadequate marketing budgets are most challenging.

Budgets, however, have been blamed for not meeting sales lead generation targets, according to a recent study from 360 Leads. Respondents to that study were more apt to blame budgets than data quality issues for missing their targets. Interestingly, marketing and sales respondents to the 360 Leads survey pointed the finger at internal company issues as a chief obstacle.

Monday, October 20th, 2014 digital No Comments

LinkedIn Revenue is a Rocketship


LinkedIn reported its earnings on Thursday, and the company beat Wall Street’s expectations across the board. The professional networking site reported $533.9 million in revenue, a big improvement over the $511 million analysts expected. And with several new products announced over the past few months, that revenue is expected to keep soaring.

According to company data charted for us by Statista, LinkedIn’s revenue keeps accelerating each quarter, even though its year-over-year growth had begun to slow down since 2011. Still, LinkedIn posted its first year-over-year growth improvement in several quarters, thanks to a 47% year-over-year increase in revenue, compared to 46% YOY growth last quarter.



Friday, August 1st, 2014 digital No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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