Power Bunch: Media Tech Purveyors Explore Advertising, Control And The New Consumer

If there was any doubt that the economic model of advertising has shifted from one of static media-based intrusiveness to one of dynamic media-based engagement, it seemed to be laid to rest Monday night by some interactive media leaders and by some new consumer research showing that if Madison Avenue doesn't embrace the shift, consumers will.

"The cat's out of the bag," declared Marty Yudkovitz, president of one of the latest in a new generation of consumer-empowering media technologies, TiVo.

Yudkovitz, whose thoughts were shared by a group of leading media technology purveyors gathered in New York Monday night by spunky, hot communications planning agency The Media Kitchen, to reflect on "50 years of consumer control" and to consider implications for the next 50. The 50 year reference, of course, is an allusion to the creation of the TV remote control, deemed the first of an ongoing progression of technologies giving consumers enhanced control and choice over when, how and what kinds of media content they consume.

% Who Own Tech Devices To Gain Control Over Media Content


PVR 79%
Digital TV Programming 77%
PDA/Blackberry 74%
High Speed Internet 70%
MP3 58%
Satellite Radio 56%
Cell Phones w/Internet 40%

Source: The Media Kitchen, InsightExpress survey of 500 U.S. adults with at least two of these technologies.

Their advent has permanently altered the way consumers relate to media - and by proxy - advertising content, according to new research released Monday night by The Media Kitchen and InsightExpress and it's also beginning to change the way marketers respond to consumer empowerment.

For one thing, they're beginning to acknowledge that "the consumer is not a cardboard figure," said Wenda Millard, chief sales officer at Yahoo!, adding, smart marketers are recognizing consumers have "three and four dimensions."

In fact, The Media Kitchen study reveals that where leading edge media technology is concerned, they have anywhere from two to seven dimensions. Those were the number of empowering tech devices that the Kitchen surveyed consumers on and a majority of respondents who had at least two of them, said they purchased them specifically to "have more control over their entertainment/available content."

The most content-controlling of the lot, was by far personal video recorders like Mr. Yudkovitz' TiVo, but other new media technologies including digital TV programming, PDAs/Blackberry messaging systems connected to wireless Internet access and high speed Internet access, were deemed nearly as empowering and transforming technologies.

Of the group, high-speed access was the most ubiquitous, with an 87 percent penetration of the Kitchen's research panel, followed by digital TV (70 percent) and wireless cell phones with access (51 percent). Other newer technologies - especially the PVR (17 percent) still have relatively low penetration, even among these early technology adopters.

Perhaps most significant of all, these technologies do appear to be changing the way consumers relate to advertising. And it's not necessarily, as many fear, for the worse. The research finds that a considerable number of consumers would actually be more receptive to advertising if the technologies - and marketers that utilize them - simply would make certain changes, such as giving users the ability to choose their own ads, providing promotional offers with ads, or defraying the cost of media technology with advertising.

One thing that does not appear to be so compelling, is the notion of so-called advertainment, ads that pose in the form of entertainment. Only a fraction of the respondents (13 percent) said ads would be more appealing if they "felt like a short movie." So much for the Madison & Vine theory of advertising.

While such simplistic approaches may not be the ultimate solution, Paul Woolmington, chief chef and chief executive officer of the Kitchen, said advertising and marketing will need to find new creative approaches to connect with these consumers. He also predicted that television would reach an "advertising crunch time" as soon as "mid-2005."

In fact, TV occupied much of the conversation as panelists debated its vitality and efficacy, noting for example, how important young viewers - especially the coveted 18-24 year old male demographic - are beginning an exodus from the medium.

Though no one had an immediate solution to that dilemma, Yahoo's Ms. Millard at least had a logical explanation: "Well, it stinks," she said, referring to the quality of TV programming.

% Who Would Be More Receptive To Ads If...


I could choose the ads I see: 44%
Cost of technology was lower with ads: 38%
Included promotional offers: 29%
None of these: 29%
Looked and felt like a short movie: 13%

Source: The Media Kitchen, InsightExpress survey of 500 U.S. adults with at least two of these technologies.
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