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2 in 3 Global Execs Say Use of Social Tech Increases Marketing Effectiveness
83% of executives from around the world surveyed in 2012 reported using at least one social technology, up from 72% in 2011, per results [pdf] from a new McKinsey survey. Of those, 9 in 10 reported some measurable business benefit with employees, customers, and business partners. 65% said their use of social tech increases marketing [...]
Pepsi Is About To Get Yet Another Big Redesign Effort (PEP)
Source: http://www.businessinsider.com/pepsis-new-redesign-2013-3
Pepsi, which got a new logo and a new set of package designs back in 2008, is about to get yet another redesign, according to Ad Age.
While the core logo won’t change, the company will become more playful in how it is presented:
Brad Jakeman, president-global beverages group, has touted the idea of “strategic variance,” citing MTV, Starbucks and Google as brands that regularly fiddle with their logo size, design and color.
Jakeman is the exec who brought Beyonce on board to promote the soda globally, with new cans hitting Europe this month.
He’s only been in the job since 2011 (previously he was at ActiVision), but that makes him a veteran given the high-level of turnover in Pepsi’s brand management offices (30 execs have bailed since 2008).
Those changes have not been kind to Pepsi, as we noted recently: Pepsi’s Americas Beverage unit, which sells the iconic soda, saw a 10 percent operating profit decline to $2.9 billion in 2012, on a 4.5 percent dollar sales decline to $21.4 billion. That’s $1 billion less in sales from 2011, the company reported in its 10-K. (The reduction was due in part to a discontinued Mexican business but it inclu! ded sale s declines in North America and in its flagship soda business.)
1 Million Fewer American Households Watched TV Last Year
Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.
Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).
New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones.
Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012.
And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.
1 Million Fewer American Households Watched TV Last Year
Source: http://www.businessinsider.com/1-million-fewer-american-households-watched-tv-last-year-2013-2
Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.
Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).
New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones. The growth of viewing on tablets is seen as a big driver of second-screen multi-tasking activities surrounding TV shows, particularly among younger viewers. Not being able to capture the viewing among auds who are highly engaged with programming is frustrating to bizzers.
There’s also the issue of how to count viewing done via VOD and Web streaming platforms where the program’s commercial load does not match up with the spots aired during the linear telecast. As such, the industry’s goal of achieving an omnibus number that captures how many people watch a particular program over a given time frame (and there’s even a healthy debate about the best time parameters) remains far out of reach, for now.
Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012. Some of the drop can be attributed to the disruption of the broadcast biz’s transition to all-digital signals in 2009, which left behind a small percentage o! f Americ ans with older TV sets.
And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.
Regardless of the reason, the decline in the TV household universe estimate is alarming for industryites, especially amid other reports that many Americans are watching more TV than ever before precisely because there are so many options for viewing.
The number of homes that will be added to the total TV universe under the new definition, to take effect in the 2013-14 season, is less than 1%. In discussions with network execs and Madison Avenue, Nielsen characterized the definition shift for fall 2013 as a first step. The company that provides the ratings that are the currency of ad-supported TV is clearly continuing to feel the pressure to crack the multiplatform-measurement conundrum.
“On the path to capturing all viewing in all homes, this foundational change addresses the lion’s share of viewing, in effect including any home with a TV that can receive video via an external source,” said Pat McDonough, Nielsen’s senior veep of insights and analysis.
(Andrew Wallenstein contributed to this report.)
Click here for more television news on Variety.com.
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3 in 4 US Senior Execs Strongly Believe Customer Experience Impacts Loyalty
74% of American senior executives surveyed by Oracle strongly agree that customers’ experiences impact their willingness to be loyal advocates, according to a new report, reflecting similar attitudes from consumers. With 6 in 10 executives also strongly believing that customers will switch brands because of poor experiences, the Oracle study finds that overall, respondents indicate [...]
Absurdly Hyped Startup Airtime Has Officially Flopped And Top Execs Are Fleeing
Airtime, the startup with a product that connects random Facebook users in video chats, is a huge flop and its senior people are fleeing the company, Liz Gannes of All Things D reports.
CTO Eric Feng, brought in through a March acquisition, is on his way out. Cofounder Shawn Fanning is no longer day to day at the company.
It’s particularly bad news that Feng is leaving because after joining the company in March, he fired everyone who had been working on the startup’s tech before.
Airtime, which raised $33 million from Kleiner Perkins, only launched its product 12 weeks ago, but it’s already pretty obvious not many people want to use the thing. Gannes reports that it only has 11,000 daily active users. By comparison, Instagram has 11 million.
Fanning’s cofounder is Sean Parker, the guy played by Justin Timberlake in the Facebook movie. Gannes says he was the driving force behind Airtime’s weird product launch event, which was attended by all sorts of mid-level celebrities. He says this launch “worked” because it drove traffic. Uh huh.
Gannes talked to Parker, and has more quotes from him here >>
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Microsoft Already Won The Battle For The Living Room When Nobody Was Looking (MSFT)
Two bits of news came out yesterday that illustrate how far ahead Microsoft is in the battle for the living room.
First, Microsoft announced it had sold 1.7 million Xboxes in November. That includes 1 million in the week of Thanksgiving.
More quietly, an analyst firm called Strategy Analytics released a report on “connected TV players,” like Apple TV, Boxee, and the Google TV devices from Sony and Logitech.
The firm says that sales of those devices will reach 12 million in 2011, with Apple TV shipping 4 million.
In other words, Microsoft sold more Xboxes in a single week than Apple sells in an average quarter. And Apple is the market leader in that “connected TV players” space. At least when you ignore game consoles.
This isn’t to pick on Apple. It’s simply to point out that Microsoft’s “Trojan horse” strategy with the Xbox has worked amazingly well.
And this was absolutely part of Microsoft’s strategy from the beginning — way back in 2005 before the Xbox 360 launched, Microsoft executives were talking about trying to expand the market beyond hardcore video gamers and turn it into a more general-purpose entertainment device. But Microsoft always knew it had to make a top-notch game console first to get the installed base, then add entertainment features over time.
It’s been doing that, quietly, for more than five years now and has sold almost 60 million Xboxes in the process. With the addition of a whole bunch of TV and other video content last week, the strategy has finally reached full fruition.
Apple, Google, and other connected TV companies could still have a chance if they team up with TV makers so the software is built into your new television set. But any company who hopes to compete with the Xbox by selling an add-on box that DOESN’T play games is in a deep state of denial.
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Join the conversation about this story »
See Also:
- Microsoft Sold 1.7 Million Xbox 360 Consoles LAST MONTH
- Microsoft Wants TV Execs To Come Make Shows For Xbox
- THE MICROSOFT INVESTOR: Microsoft With Xbox Will Dominate Apple TV
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Digital Consigliere
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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