proliferation

Marketers Put More Work in the Hands of In-House Agencies

source: http://www.emarketer.com/Article/Marketers-Put-More-Work-Hands-of-In-House-Agencies/1010228

Cost-cutting drives changes

A growing contingent of client-side marketers are turning to in-house agencies to take more ownership of their advertising and marketing strategy.

According to an Association of National Advertisers (ANA) survey, 58% of US client-side marketers said their company used an in-house agency this year, compared to only 42% who five years earlier said the same. And 56% of respondents said in May 2013 that in the past three years, they had moved at least some established business previously handled by an external agency to their in-house agency.

Magazine advertising, social media, online display advertising and search engine marketing were the services most commonly handled by an in-house agency, according to the study. The proliferation of digital marketing channels may be convincing companies to move more marketing in-house, so they can be more responsive and create a full breadth of material at lower cost. Still, only small percentages of in-house agencies handled most of these services, indicating that much work still sits squarely with external agencies.

Traditional TV and radio advertising were the least likely formats to be handled in-house.

Marketers cited cost savings as the most significant advantage of bringing agency work in-house in 2008. This year, it remained the top advantage, however one cited by far fewer respondents.

Five years earlier, more than half of marketers saw cost efficiencies as an in-house agency’s primary advantage, whereas in! 2013, that figure had dropped to 35%. Other factors instead took on greater precedence: 19% of marketers cited brand expertise, as well as institutional knowledge and the added benefit of a team dedicated to the company or brand. This indicates that marketers have become more satisfied by the quality of work created by in-house agencies.

But the disadvantages also stacked up. Forty-five percent of the survey respondents said it would not be as easy to stay on top of key trends with an in-house agency. That was more than the percentage of marketers who saw this as a challenge in 2008, and suggests that digital channels amplify the importance of understanding the latest marketing opportunities. Creative innovation was also seen as more lacking when agencies moved in-house, along with limited skill sets among the staff.

The digital marketing age seems to be forcing marketers to navigate between two competing impulses—the need to produce more marketing than ever before across ever-proliferating channels is making in-house agencies particularly attractive. But the skills needed to effectively leverage and communicate via these channels are still often seen as best handled by agencies fully dedicated to the advertising and marketing space.

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Thursday, September 19th, 2013 news No Comments

How People Find Apps

Source: http://www.businessinsider.com/chart-of-the-day-how-people-find-apps-2012-8

This chart comes from Business Insider Intelligence, a new research and and analysis service focused on the mobile and Internet industries. Sign up for a free trial here.

Search is the top app discovery tool. According to Nielsen, 63 percent of Android and iOS users have utilized search to discover new apps in their respective app stores.

While most developers focus on cracking the top 25, search is becoming an increasingly important tool in the “long tail” of mobile apps. App revenue is no longer as concentrated with the proliferation of apps, which helps explain why Apple is buying a company like Chomp to revamp search in the App Store.

chart of the day, how people find apps, august 2012

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Thursday, August 30th, 2012 news No Comments

How People Find Apps

Source: http://www.businessinsider.com/chart-of-the-day-how-people-find-apps-2012-8

This chart comes from Business Insider Intelligence, a new research and and analysis service focused on the mobile and Internet industries. Sign up for a free trial here.

Search is the top app discovery tool. According to Nielsen, 63 percent of Android and iOS users have utilized search to discover new apps in their respective app stores.

While most developers focus on cracking the top 25, search is becoming an increasingly important tool in the “long tail” of mobile apps. App revenue is no longer as concentrated with the proliferation of apps, which helps explain why Apple is buying a company like Chomp to revamp search in the App Store.

chart of the day, how people find apps, august 2012

Follow the Chart Of The Day on Twitter: @chartoftheday


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Join the conversation about this story »

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Thursday, August 30th, 2012 news No Comments

Search Is The Biggest Driver Of App Discovery

Source: http://www.businessinsider.com/search-is-the-biggest-driver-of-app-discovery-2012-8

Business Insider Intelligence a new research and analysis service focused on mobile computing and the Internet. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.

Search is the top app discovery tool. According to Nielsen, 63 percent of Android and iOS users have utilized search to discover new apps in their respective app stores.

While most developers focus on cracking the top 25, search is becoming an increasingly important tool in the “long tail” of mobile apps. App revenue is no longer as concentrated with the proliferation of apps, which helps explain why Apple is buying a company like Chomp to revamp search in the App Store. 

App Discovery

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Monday, August 27th, 2012 Uncategorized No Comments

Mobile App Revenue Has A Long Tail

Source: http://www.businessinsider.com/chart-of-the-day-mobile-app-revenue-has-a-long-tail-2012-8

This chart comes from Business Insider Intelligence, a new research and and analysis service focused on the mobile and Internet industries. Sign up for a free trial here.

Mobile apps are not a “sink or swim” proposition.

According to Flurry, the revenue share from apps outside of the top 100 ranked titles on iOS and Android will increase from 45% in 2010 to an expected 68% this year.

Note that this only includes premium and in-app revenue, which Flurry expects to account for 77% of mobile app revenue this year (although ad revenue is the fastest growing category).

The changing revenue distribution of mobile apps reflects the proliferation of the app economy in the past two years, but also a repudiation of the idea that you need to be in the top 25 of the app store to make any money.

chart of the day, mobile apps revenue, august 2012

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Wednesday, August 1st, 2012 news No Comments

Mitt Romney Twitter Fraud – 117k Followers On A Weekend Day

Digital Forensic Analysis by Augustine Fou

The first graph shows search interest in “mitt romney” over the period of June 25 – July 24, 2012. There is no discernible lift in interest around July 21, according to Google Insights for Search 

The second chart below was generated by Twitter Counter and shows a dramatic increase of nearly 117,000 followers in 1 day, when the average number of adds per day over the same period was usually a steady 7,800 per day.

Something is not kosher.  The spike happened on a Saturday, July 21. Saturdays and Sundays are usually the worst days to tweet according to a study by FastCompany.

Many of the followers listed on Romney’s twitter page have ZERO tweets, ZERO followers, etc. (see screen shot)

See at the bottom an example of the proliferation of “service” which help users buy thousands of followers at a time.

mitt romney search interest

 

dramatic increase of 117,000 followers in one day

 

 

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Tuesday, July 24th, 2012 analytics No Comments

The Days of Single Purpose Devices Are Numbered – Digital Cameras vs Cameraphones

With the proliferation of smartphones like the iPhone 3G, 3GS, 4, 4S and android devices, users now have digital cameras with them at all times. These digital cameras shoot 5 megapixel – 8 MP still shots and 720p or even 1080i HD video. Furthermore, their built in GPS automatically attaches geolocation information to images and videos.
As can be seen in the charts published by Flickr below, the Apple iPhone 4 has already shot past other major cameras from Nikon and Canon to be the most popular overall camera in the Flickr Community. With additional more detailed data, the Apple iPhone 4 (both 4 and 4S) has an average daily users count of 5,798 while the 2 most popular Canon point and shoot cameras (S95 and SD1100S) have a combined average daily users count of 980.  The iPhone has about 5x the activity.
Flickr Most Popular Cameras List – November 28, 2011.
2011-11-28 Flickr Most Popular Cameras.png
U.S. Smartphone Penetration

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Monday, November 28th, 2011 news No Comments

The new role of the digital agency

The new digital landscape and modern consumers are dramatically different

The new “digital landscape” is dramatically different from the environment into which TV, print, and radio ads were launched no more than two decades ago. Even today’s Web 2.0 environment is different than the Web 1.0 environment of a decade ago. As the Internet led to the more facile accumulation and dissemination of information and as social networks brought even mainstream consumers online, the power of consumers has increased significantly relative to advertisers. For example, they will search for information when they want it and ignore all other forms of interruption media pushed at them. They will look for independent and objective reviews of products or services and distrust brand messages put out by advertisers touting their own virtues. And they will rely on the actions of the community to help them filter and prioritize the best “stuff” from the ocean of available content.

Audience fragmentation caused by the proliferation of niche cable channels (e.g. the fly fishing channel) and abundant online video channels means that “mass media” is not so

“mass” any more — there are no longer massive audiences tuned into a single television

program at the same time. “Media” is now two-way or many-to-many — i.e. consumers tend to talk amongst themselves. But many advertisers and their agencies still rely heavily on one-way tactics – pushing a carefully crafted message out at target customers.


Globalization, information proliferation, and socialization have irreversibly changed industries

Other macro forces are also re-shaping the industries, in particular the advertising, marketing, and communications industries.

Globalization means that, for example, coding can be outsourced to India, graphic design to Australia, or television production to Asia, all at a fraction of the cost of “in-house” resources. The wide availability of tools like online photo editing tools (picnic.com), video editing sites (motionbox.com), and even high-end 3D and special effects software (Blender.org) — all of which are open source and free — fuel the perception that such digital capabilities and services should be lower cost, if not free. These trends mean that agencies whose revenues were derived from these services are facing constant downward pricing pressure.

The proliferation of information has also irreversibly changed the perceptions, behaviors, and habits of consumers. The abundance of information online conditions users to search for information and form their own opinions through research. They also expect more detailed information than can be typically delivered through TV, print, or radio ads — e.g. they want to see the product brochure online, do price comparison shopping across dozens of retailers, and read peer and expert reviews before buying. And they will do the above on their own time (e.g. planning a family cruise vacation at 1 am when the kids are asleep), which destroys the concept of targeting using day-part or show content.

The socialization of consumers online means that the conversations that used to happen among a few people around the watercooler are now happening online for all to see. The collective complaints or praises of products and services now become inputs to many other users doing research online before their next purchase. Furthermore not only is the spread of information much faster online, but the impact could also be dramatically larger —  for example, 1) by the end of opening weekend, hundreds of user reviews of a movie can immediately determine its fate — a mega hit or a “straight-to-DVD” movie, and 2) the action of a single person who found an unsavory clause in AT&T’s Wireless’ “fine print” and posted it online caused such a community uproar that AT&T made a public statement that it would be removed.


Traditional agencies rely on old business models (and other challenges for traditional agencies)

Despite the new landscape conditions of no more mass media and consumers doing their own research online, many advertisers are still doing traditional advertising. And many of their agencies are still relying on old business models (agency of record) and being paid for production. Creative ideas are still being given away for free during the pitch process; if the pitch is won the agency then gets to bill against production of assets. But freely available tools or production and abundant lower cost producers are causing clients to question costs.

Other challenges plague traditional agencies. All clients want to “go digital;” but digital is seen to be a “bolt on” capability among big agencies and smaller agencies are perceived to be more digitally savvy. Further, “clients find it hard to know how much digital stuff costs,” says Peter Cowie, Managing Partner of Oyster Catchers, a search consultancy based in London. “Many clients are using in house capability to save costs and retain control.” Cowie continues, “many clients are deeply insecure about digital marketing” partly because of its novelty, but also, practically because of the wide array of new disciplines, including for example, social networking, mobile, gaming, search, analytics, user interface, Flash, AJAX, e-commerce, online ad networks and media buying, etc.


The new digital agency plays the role of a strategic advisor and subject matter expert

So what is the role an agency can and should play in this new landscape? We believe, the role of a strategic advisor to calm clients’ insecurities and ensure a cogent and smooth incorporation of digital. Smaller agencies that grew up in digital may not have the expertise in traditional disciplines nor a global footprint and enough staff to handle large global clients. However, large traditional agencies, with a few key changes to business model, organizational structure, and internal processes will be able to guide clients through the shift towards digital, by changing the marketing mix and ensuring that all channels are integrated, working together, and reinforcing to each other.

These changes may include 1) managing a network of independent specialists (who serve on SWAT teams for client projects) instead of in-house FTEs, to account for the wide variety of new skills and disciplines 2) shifting away from the business model of being paid for production to being paid for managing a network of geographically disperse low-cost providers, and 3) providing thought leadership as subject matter expert in digital disciplines, strategies, and tactics.

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Wednesday, October 29th, 2008 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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