The good news is that media consumption will expand markedly over the next five years, rising from about 74.5 hours weekly per person currently to about 80 hours weekly in 2017. The bad news for Madison Avenue is that almost all of that growth will be coming from a medium that has proven vexing for advertising: Mobile. “It’s pretty staggering,” said Brian Monahan, managing partner of the intelligence practice at Interpublic’s Magna Global unit, referring to its new projections for media consumption, and the fact that so little of it is proving monetizable as an advertising medium. “Consumers are just so far out ahead of advertisers in terms of their use of mobile media,” he told Online Media Daily on the eve of Tuesday’s release of the latest edition of its periodic Media Economy Report during the CES conference in Las Vegas. The report, which is subtitled “The Ultimate Mobile Deep Dive,” not surprisingly focuses primarily on the impact mobile is having in the overall media economy. The report finds that mobile may also be Madison Avenue’s ultimate paradox, because instead of growing as a percentage of the time consumers spend with mobile media, advertising will actually decline over the next five years for a variety of reasons -- including the fact that the ad industry has yet to develop a truly scaleable model for advertising on mobile devices. “It’s the biggest delta between time spent and ad spending,” Monahan said of the margin between consumer use of mobile media and mobile’s share of advertising budgets. “And we expect that to widen over the next five years, not narrow.” Even more remarkable is the fact that mobile will lose share of total advertising spending, even as it has emerged as the fastest-growing advertising medium. According to Magna, mobile currently accounts for 1.3% of worldwide ad spending and will rise to 3.3% by 2017, thanks to a projected 30.6% rate of growth over the next five years. By comparison, total ad spending on all media will expand only 5.2% over that period, according to Magna’s latest forecast. The problem, said Monahan, is that consumer time spent using mobile media will rise at an even faster rate over that period, accounting for a greater percentage of media consumption, but a lower share of total ad spending. Mobile’s ad share paradox is even more striking when you consider the relative cost efficiency, consumer attentiveness and low advertising clutter. The CPMs, or cost of reaching a thousand consumers, via mobile advertising, currently averages only $1.31, according to Magna. By comparison, broadcast TV averages $29 and newspapers average $51. Monahan said that disequilibrium likely will continue until several factors are resolved, including developing advertising models and formats for capturing consumer attention with ads while they are on mobile devices, and for measuring, targeting and serving ads to consumers exposed to them. “Therein lies the billion-dollar question,” Monahan said, adding, “What is the ad model going to be?”
The battle for the second screen gets hotter at the Consumer Electronics Show this week as cable and satellite service providers try to get a piece of the action. Cox Communications announced in Las Vegas a major upcoming upgrade to its smartphone and tablet app that will include live TV streaming, personal content recommendations based on individual viewer profiles and extensive remote control capabilities. The yet-unnamed app will replace and consolidate Cox’s current selection of user apps, including the Cox TV Connect app, which already allows users to stream live TV on their devices from within the home. The new app will allow users to stream 90 live TV channels as well as access all on-demand content from the devices. The app will also act as a remote control for the house’s various boxes and on-screen selection guides. Up to eight users in a household can get personalized content recommendations based on their own viewing history and stated preferences. Cox says it is the only app from a multichannel service provider to leverage user profiles and history for personalized content discovery. Cox is working with ThinkAnalytics on the metadata that drives the recommendations. The company is also using Cisco’s Videoscape Unity platform. The Cox app will roll out in coming months first for the iPad and then to other devices. The announcement is part of a trend among MSOs to get into the second-screen game, which until now was dominated by third-party startups like Zeebox and IntoNow or the individual networks. Earlier this week Dish Network launched a new viewer app that manages its Hopper home DVR platform and helps with content discovery and social TV discussions. At this early stage it is unclear where most consumers will go first for second-screen experiences -- the network providing the content, new startups, or now, the MSO providing all of the content to the home. MSOs have the distinct advantage of being the main hardware provider to the home, and so can pack second-screen services around fundamental remote control/DVR management functionality. It is worth noting, however, that even the third-party apps are beginning to incorporate some of the core functionality that the MSOs provide. The Zeebox social TV app, for instance, now can tie into select MSOs like Comcast and change channels for the user.
Bent on squeezing every bit of value from its Super Bowl coverage, CBS Sports said it plans to bolster the game’s online coverage with several new features and add-ons. On game day, Feb. 3, CBSSports.com will include the first live stream of the Pepsi Super Bowl XLVII Halftime Show featuring Beyoncé, as well as immediate access to the Super Bowl commercials as they are broadcast on CBS. “We have developed a deeply integrated second-screen environment that perfectly complements the television broadcast,” said Jim Lanzone, president of CBS Interactive. The network’s so-called “second-screen” experience will also include additional camera angles to allow viewers to watch the game from various perspectives, as well as view live stats and in-game highlights. In addition, serious social integration will include a curated Twitter stream featuring commentary from CBS personalities. This will mark the second consecutive year that CBSSports.com will be streaming the NFL’s championship contest. Last year, the event attracted more than 2 million viewers during the game. In a promotional run-up to the Super Bowl, Pepsi is asking fans to snap and upload images of themselves in a series of specific poses that will be used in an intro video to Beyoncé’s performance. A mobile-optimized Pepsi.com/halftime site is rolling out a series of photo poses until later this month. At the beginning of the year, Pepsi said it received thousands of images from users in the promotion's first few days. //
Google has long positioned Android as the open standards alternative to the closed iOS ecosystem operated by Apple. But a comparison of the top apps among Android and iOS users in November by NPD Group suggests that Android has proven to be a highly effective platform for promoting the use of other Google services. Four of the top five apps among Android users, based on reach, come from Google Search, on 85% of Android phones, Gmail (83%), Google Maps (74%), Facebook (70%) and YouTube (60%). Google Search by Voice comes in at No. 6 with 57% reach, and Google+ at No. 10 (24%). On the iOS side, Facebook ranks as the top app (86%), followed by Apple’s native weather app (43%), YouTube (40%), Amazon (38%) and App Trailers (35%). (Not included in the iOS top app list is use of the native mail client, used by 94% of users, with the vast majority likely accessing Gmail.) Linda Barrabee, research director for NPD’s Connected Intelligence service, points out in a blog post today that the top apps for each platform reflect the different approaches of Apple and Google to the smartphone market. Apple is mainly interested in selling hardware and Google in pushing search and other ad opportunities. Still, she notes that the proliferation of Google-branded apps atop the Android list is striking compared to top iOS apps. Apple pulling the YouTube app from iOS 6 last year didn’t help Apple users “surface” the Google-owned video property on the iPhone and iPad. There was also the Apple Maps debacle, with Google last month introducing Google Maps for iOS 6 to the great relief of iPhone users. Google Maps quickly became the most popular app in the App Store, reaching 10 million downloads in just the first 48 hours. It’s still the No. 2 title in the App Store, and would likely be included in NPD’s top 10 list if the data extended to December. But the rollout of a freestanding Google Maps app for Apple customers “still does not equate to parity in Google service experiences cross-OS, and may continue to impact usage as well,” writes Barrabee. For now, Google is still the default search engine for iOS devices. But given the fierce rivalry between Google and Apple, it won’t be surprising to see rumors re-emerge that Apple is switching to Bing as its built-in search box with the next iOS update. The Apple Maps fiasco underscores the risks for Apple, however, in substituting its own alternatives for popular Google tools. //
Attention makers of single-use electronic devices (digital cameras, DVD players, etc): you may want to add some other features if you want to keep consumers interested in buying your product. According to Accenture’s annual Global Products and Services Usage report, consumer intent to purchase single-use devices is dropping, while the intentions to buy multi-function products is on the increase. “Consumers are gravitating towards [devices that] are capable of doing lots of different things,” Kumu Puri, global consumer technology lead for Accenture, tells Marketing Daily. “It’s going to take a different mindset on the part of the industry players to compete as the market evolves.” In a survey conducted in September 2012, Accenture explored consumer usage and spending habits for 16 types of consumer electronics devices, 11 of which were single-use devices and five of which were multi-function. When it came to the single use-devices, consumer purchase intent has either fallen or remained flat compared with the previous year. In contrast, purchase intent for multi-function devices increased significantly for all of the products. “What we’re seeing from consumer purchase intent, they are coalescing around four multifunction devices,” Puri says, referring to computers, tablets, smartphones and HDTVs that offer some added connectivity and features to their basic functions. Despite the interest in multi-use devices, there were some bright spots for single-use devices, particularly among feature phones, GPS devices and e-readers. Purchase intent for devices in these categories rose, though they were from small bases, and even the functionality of these devices is being integrated into multi-function products like smartphones, Puri notes. “There’s always going to be a niche for these single function devices, but when you think about the bulk of the market, interest will be in these multi-function devices,” she says. //
Aereo, the service that allows users to watch local broadcast channels on mobile devices, plans to expand into 22 markets beyond its New York launch base in 2013. Currently, TV networks are trying to shut it down in court. Despite litigation, it has secured an additional $38 million in a round led by current funders IAC. Chairman Barry Diller has been a vocal proponent, and Highland Capital Partners. The Big Four broadcast networks want to shutter Aereo, which also allows DVR-like functionality, believing it will deprive them of retrans consent payments and ad dollars. Chicago, Dallas, Atlanta, Washington and Houston are among the cities where Aereo is looking to expand its live TV service. Many have stations owned by the Big Four. Other smaller markets where Aereo plans to expand have stations owned by others, which could file their own lawsuits or hope the wealthy Big Four prevail in New York federal court. Aereo offers the potential for cord-cutting; there are multiple subscription plans, including $1 a day and $8 a month. “Watching television should be simple, convenient and rationally priced,” stated Aereo CEO Chet Kanojia. In mid-2012, the leading networks suffered a blow when a federal judge denied their request for a preliminary injunction against Aereo, while charging it is engaged in copyright infringement. The judge found the service is “likely lawful.” At the time, Fox issued a statement saying the decision marked “a loss for the entire creative community.” Aereo has done very little marketing in New York, seeking to create demand as an invitation-only service. It plans to offer its free-trial opportunity in the coming 22 markets.
The Consumer Electronics Show in Las Vegas has brought with it a series of new equipment and software deals between carmakers, radio groups, and audio tech suppliers. This year’s crop of partnerships includes deals between Clear Channel Media and Entertainment and Toyota and Chrysler, and Ford and jacAPPS. Toyota announced that some of its 2013 Toyota and Lexus models will integrate traffic and weather information from Clear Channel’s Total Traffic Network into their dashboard displays. The data will be delivered via HD radio signal -- apparently the first time a broadcast radio group has used digital radio’s ability to transmit rich content in addition to audio. The Total Traffic Network’s weather content, supplied by The Weather Channel, will include Doppler radar, current conditions, and real-time forecasts. Clear Channel scored another win with the integration of its iHeartRadio digital audio platform into the dashboard displays of some Chrysler Group vehicles. Chrysler vehicles with Uconnect Access Via Mobile will allow drivers with smartphones to access iHeartRadio through their touchscreen dashboard display. Separately, Ford revealed a partnership making jacAPPS its preferred mobile app development house, with responsibility for configuring mobile apps for Ford’s Sync AppLink system. Ford Sync is a voice-activated command system that allows drivers to access media selections, driving directions, and other digital content without having to take their hands off the wheel. jacAPPS will help radio stations tailor their mobile apps for the Sync system, so drivers can access radio station apps on the center display by using voice commands, as well as steering wheel and radio buttons. According to jacAPPS: “This is a significant breakthrough for the radio industry that will allow AM/FM stations to have parity on the vehicle’s digital screen.”
Sometimes we just want to kick back with a bucket of popcorn and watch a good movie. But there are so many questions that need to be answered first. What's playing? Which theater should I go to? What time does the show start? Did the movie get a good review? Am I going to be able to get tickets? The list just goes on and on. As mobile devices continue to act as our personal assistants, consumers are turning to their smartphones for answers to these entertainment-related questions. So last month, RadiumOne conducted a survey examining how consumers use their smartphones to make purchase-related decisions, such as researching which movie to see, viewing trailers, and purchasing movie tickets. Survey respondents indicated that they predominantly use the mobile Web in a research capacity. Here was the demographic breakdown of those surveyed:
Every so often, a company aggressively looks outside its traditional business development processes to either catch up or get ahead in mobile market innovation. A few years back, PepsiCo created a program called the PepsiCo 10, a process that encouraged employees to look outward seeking ideas being driven by promising startups. The entrepreneurs could submit an online application in one of four categories: mobile marketing, place-based and retail experiential marketing, social media or digital video and gaming. All the proposals were evaluated based on how they could impact brands. In the PepsiCo program, the startups had to be in technology less than two years, have raised up to $2 million or have revenue of $250,000. The company started with 500 applicants, ultimately narrowed to 20 -- all of whom presented to brand managers at PepsiCo. The 10 were selected and then paired with PepsiCo brands to launch pilot projects. Of the 10 selected, five focused on using mobile. Another such program is well underway, this time at snack food giant Mondelez. In this program, which kicked off in October, the focus is on mobile from the outset. “The Mondelez program is much more focused than the PepsiCo 10 challenge that preceded it and includes refinements based on past learnings,” says Bonin Bough, vice president of Global Media and Consumer Engagement at Mondelez International. “This is all mobile.” In his previous position as director of digital and social media at PepsiCo, Bough spearheaded the PepsiCo 10. The Mondelez team last week selected the nine companies to work with. They are:
It looks like networks may have some new, unexpected inventory to sell: their Twitter feeds. The Associated Press and Samsung appear to have established a template this week, where a network could place ads atop their own pages as well as feeds for individual shows, which would seem to be more coveted by advertisers. Who knows how much money really lies in it? But with questions about how to best monetize hundreds of thousands of followers, the AP-Samsung initiative offers a guide for experimentation. The AP has sold the consumer electronics manufacturer sponsored tweets on its Twitter account this week, linked with the Consumer Electronics Show in Las Vegas, where Samsung is looking to promote all kinds of would-be breakthrough hardware. The deal reportedly cuts Twitter out of the revenue in that the Samsung dough goes right to the AP, which says the initiative is another attempt to find new ad models in mobile and social media. The AP has more than 1.5 million followers. CNN has more than 7 million. With shows in the entertainment space, NBC's "The Voice" has more than 1 million and AMC's "Walking Dead" has about the same. "American Idol" has 670,000. General network feeds are fewer. NBC, for example, has 229,000 followers, while Fox has a similar 210,000. HBO doesn't sell advertising, but has 442,000. It would seem the sponsors tied so closely with "The Voice" and "Idol" wouldn’t mind extending their involvement to the rapidly growing Twitter. The same goes for so many other series, where networks point viewers to the Twitter feeds looking to build engagement. (The AP made clear its paid-for messages would be labeled as “sponsored tweets” and overseen by an entity beyond the news operations.) Sponsored tweets aren’t the most dynamic ad opportunities. They appear at the top of a Twitter feed and allow for a logo and some text, but maybe more importantly the chance to offer a link to a more compelling locale. As paidContent suggests, Twitter may move to close the loophole exploited by the AP, where it is cut out of the ad revenue. But that won’t be until after the Super Bowl. The NFL’s Twitter page has 4.2 million followers, so perhaps CBS can find a way to take advantage during its broadcast of the game. However, it probably wouldn’t open space up for advertisers not in the big game. Memorably, last year, GM ran a spot in the game suggesting Ford trucks weren’t strong enough to survive some sort of Armageddon. Ford instantly sent out a promoted tweet saying: “We're satisfied with our 35 years of having the best selling truck in America.”