PepsiCo, Kraft Foods and Nestle Purina are among major brands participating in a pilot test of 3GTV Networks in nine Bloom grocery stores in the Washington, D.C. metro area. The in-store media platform -- being touted as a breakthrough in the booming shopper marketing arena -- enables measurable digital communications to consumers throughout the store, extending the television model into the retail environment and making retail a plannable media destination, according to its creator, Allendale, N.J.-based Automated Media Services, Inc. (AMS). The network actually consists of two platforms, enabled by a total-store infrastructure or "digital backbone" that combines cloud computing technology and electrical wiring, explain AMS chairman/CEO Bob Wolinsky and president/COO Greg Ralko. The two platforms are storewide "always-in-sight" LCD screens, and smaller "shelf-edge messaging" screens positioned in front of brands that want additional, more promotionally oriented vehicles for their products. The "always in sight" screens are positioned at research-determined intervals within each aisle (overarching the aisle via attachment to the gondolas on either side) at heights in shoppers' line of sight. All of the continuously running marketing content shown on these is synched storewide and tied into the store's overall music/ announcements audio system. Typical messaging is done in category "blocks." For example, a dairy block might show a segment promoting Bloom's organic dairy products/ area, followed by one showing Kraft cheese on a pizza, followed by a "Got Milk" or dairy-related nutrition/health segment, notes AMS VP, content Dan Seliger. This storewide content is designed to drive awareness of, and traffic to, specific areas of the store and specific brands or brand areas. However, content is keyed to "relevance" and "value" for the shopper, and the experience is managed so as to be "discreet" and "non-intrusive," according to Seliger. For example, storewide voiceovers to the audio/visuals are limited, and the store's music track is suppressed when a voiceover comes on. Brand messaging is not allowed to include brands' own music/jingles, and all content has to adhere to "rules," including technical/creative guidelines such as image size, he reports. While audio, as well as visuals, are possible on the individual-brand shelf-edge messaging screens -- which are about four inches to seven inches in size -- pilot brand participants currently are not employing audio on these. The recommended best practice would be to activate audio on these only in response to interaction by a shopper, the executives note. The shelf-edge, OLED-screen units are touchscreen enabled, letting marketers interact with consumers in a variety of ways (offering options to access more information on a particular product or variety without having to go online, for example). The communications are two-way, meaning that AMS is gathering data as consumers interact with the units. Although these capabilities aren't yet being employed by pilot participants, the shelf-edge units can also enable interfacing with cell phones for social networking or driving consumers to a Web site, using on-screen QR codes to let consumers generate digital coupons, and other marketing/promotional applications. "We can plug in many different capabilities," says Ralko. The number of shelf-edge screens within a given aisle will be determined by individual retailers. In the pilot stores, these screens are being limited by category, and generally don't exceed three per aisle, according to AMS. Might consumers feel somewhat overwhelmed by multiple screens overhead and on shelves? AMS maintains that the overall experience is actually less cluttered and confusing for the consumer than traditional POP messaging methods, as well as more effective for the brands and retailers. According to Wolinksy, extensive research during the networks' eight-plus years of development has confirmed consistently that the media system strongly resonates with the 18-to-34 demographic, while older consumers "don't object" to it. Extending At-Home TV Metrics Into the Store The "always-in-sight" system works on a rating-point model that enables purchase of in-store air time using the same metrics as at-home television. Once the infrastructure is in place within a store, devices on carts are used to measure shopper flow patterns precisely throughout the store during a sampling period, and those are mathematically translated into delivery metrics. The metrics remain valid as long as the same store layout remains in place. This model also enables local television networks to use the "always-in-sight" in-store media to reach consumers. In the pilot, Washington, D.C., CW affiliate WDCW is trading airtime with the 3GTV network on an equivalent-audience delivery basis. While WDCW is using the platform for "tune-in" messaging (driving awareness of specific programming) during the pilot, it also can be used to offer a station's advertisers the in-store exposure as part of their media buys. The station's or advertiser's messaging must be adapted to fit 3GTV's content/graphics rules. Reaching shoppers at point-of-purchase is "the quintessential" goal for all marketers, and stores are the "ideal destination" for using television, says Wolinsky. However, employing the television model in-store has up to this point been impeded by inability to provide accountability on video playing and viewing and audience delivery metrics. "3GTV is the first leap of television into the in-store, out-of-home environment," he says. Brands envision the networks as a more effective way than traditional in-store methods to promote product launches, which more than 60% of the time first come to consumers' awareness when they see new products in the store, notes Ralko. In addition, product cross-promotion logistics are considerably easier with the screen-based digital media than with traditional, paper-based in-store promotions, he says. One pilot brand participant summed up expectations. "We are extremely impressed with the capabilities 3GTV can deliver, and are anxious for 3GTV to build scale quickly," said Geoff Kuzio, VP with the PepsiCo, Delhaize America Customer Team. (Bloom is one of Delhaize America's retail banners.) AMS (which foots the costs for the installation of the advertising-supported networks) also cites other advantages of the networks over traditional shelf-talkers and other promotions. One is the ability to provide proof of 100% store compliance in terms of activation of displays and audience reach. (The videos' continuous play, as well as viewership metrics, are verifiable.) In addition, the digital marketing communications' content can be updated at any time at relatively low cost, versus the time and expense involved in creating and implementing paper-based promotional materials, says Wolinsky. Furthermore, digital is "greener" than soon-discarded paper shelf-talkers and promotional signage, he adds. According to Booz & Company studies, CPG brands' investments in shopper marketing continue to grow exponentially, now representing an estimated $35 billion annually. Research shows a majority of CPGs citing shopper marketing as their number-one investment, and projecting, on average, 5%-plus annual increases in this spending.
More studies reveal cord-cutting isn't a threat to traditional TV distribution systems -- yet. Just 3% of subscription TV consumers are "cutting the cord" of TV distribution systems -- cable, satellite, or telco -- per a survey from consumer researcher J.D. Power and Associates. Of those surveyed, young adults 17-34 are the most likely to cut the cord -- 6% say they no longer subscribe to a residential television service. Of those ages 35-46, 4% are going without traditional TV service; for older consumers 47-65, the number is 2%. Frank Perazzini, director of telecommunications at J.D. Power and Associates, stated: "The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options." He adds: "However, with 52% of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum." More than one-fourth (27%) of video service customers watch videos on a handheld mobile device such as a music player, mobile phone or tablet, according to the study. Mobile phones are still the most commonly utilized handheld mobile device for watching videos -- 15%. Tablets have a 12% video use rate among customers. Music players also currently hold a 12 percent share. J.D. Power says video service satisfaction is above average when customers use mobile devices and music players to access content. Overall satisfaction with pay-to-view video service providers averages 743 on a 1,000-point scale. Netflix and Redbox perform particularly well in satisfying pay-to-view customers. The study, done in April 2011, looked at 6,815 U.S. homes that evaluated pay-to-view providers, including Amazon, Apple TV, Blockbuster/Blockbuster Express, Google TV, Hulu/Hulu Plus, local video stores, Netflix and Redbox.
Jeff Zucker, the former head of NBC Universal, is set to be an executive producer of a new syndicated show with Katie Couric. He said the program will look to showcase some of the traits that made Couric so successful on "The Today Show." He touted her ability to bounce between the humorous and the serious, characteristics that understandably may have gotten lost during her tenure at CBS News. "That's really what you'll see," Zucker said at a New York conference. "That's what her brand is. It's a brand that's got credibility and fun -- and that's the hope we take into that program. I think that's a tremendous opportunity." Zucker was short on details at the PromaxBDA event, though he was clear about part of the show's ambitions. "There will never be another Oprah," he said. The unnamed daily talk show will be hosted by Couric and syndicated by Disney/ABC Television starting next fall. Zucker worked with Couric for years as an executive producer of "The Today Show," and their partnership will be renewed. The show has commitments to air at 3 p.m. on the eight ABC-owned stations covering about 23% of the country. "Katie is a unique brand in television, the mere fact that we can just say Katie -- and you know who were talking about -- is evidence of that," Zucker said. He added that people have missed her ability to move between fun and gravity.
A new report from Nielsen finds that the world over, female shoppers are feeling more stressed, more empowered, and more optimistic about what life will be like for their daughters. The survey looked at women in 21 countries and found that almost 80% of those respondents in developed countries say that the role of women will change, and 90% say it will be for the better. Women in emerging markets are more likely to believe their daughters will find better opportunities than they did. While all women feel the stress of multiple roles, the study reports that tension is highest in emerging economies, where women have less discretionary income. Women in India (87%), Mexico (74%) and Russia (69%) reported the most stress among developing countries; in developed economies, women in Spain (66%), France (65%) and allegedly laid-back Italy (64%) reported the highest levels of stress. That creates more opportunities for marketers to reach women with promises of stress-reducing convenience, the study concluded, with women in most markets saying they like TV best for getting to know new products: "In 10 of 10 emerging markets and in 7 of 11 developed countries analyzed, television outranked 14 other sources of information," the report says. Word of mouth came in second. And in 20 out of 21 countries, quality -- not price -- was named as the main driver of brand loyalty. "Women across the globe are achieving higher levels of education, joining the workforce in greater numbers and contributing more to the household income," writes Nielsen vice chair Susan Whiting. "Women are increasing their spending power and with that, they gain more control and influence over key household decisions. As a result, the women of today and tomorrow are powerful consumers, and understanding their habits and attitudes is critically important for marketers and advertisers." When it comes to spending discretionary income, women in developed markets are more likely to cite vacations (58%), groceries (57%) and savings or paying off credit cards/debts (55% each.) Those in less developed countries say they spend extra money on everyday essentials such as clothing (70%), groceries (68%) and health and beauty items (53%.
The Action Sports Group/Grind Networks, a division of Source Interlink Media, is partnering with Adap.tv to sell and deliver targeted online video advertising across its network of sites, including Web sites for Surfer, Surfing, Dirt Rider magazines, Skateboard.com and GrindTV.com. The target is young male viewers, Source Interlink's primary audience. Through its partnership with Adap.tv, ASG/Grind will gain access to Adap.tv for Publishers' suite of video monetization tools, which will allow it to optimize ad targeting with demographic information through the Adap.tv Marketplace. This includes scheduling and implementing direct ad sales and sponsorship sales for pre-roll video ad campaigns. The partnership also gives ASG/Grind access to Adap.tv's existing stable of hundreds of advertising clients. According to Adap.tv, sports content was one of the top five most popular content categories in the Adap.tv Marketplace, in terms of first-quarter ad spending. Overall, Adap.tv brings together more than 5,200 sites selling video ad inventory and claims to execute hundreds of campaigns on a daily basis. ASG/Grind Networks Vice President for Digital Greg Morrow stated: "With more than half of our U.S. demographic falling within the most desirable audiences for advertisers," noting that Adap.tv's custom integration "gives us the precision control over inventory we need to effectively manage our business and strengthen our competitive advantage." In late May, ASG/Grind parent company Source Interlink announced that it was buying Mind Over Eye, a digital ad agency that specializes in digital marketing and visual effects, including producing spots for television, Internet, mobile and feature film distribution (often employing CGI). Source Interlink said it plans to consolidate similar creative capabilities with Mind Over Eye and bill itself as a "full-service creative agency."
Although new consumer electronic devices/digital video services are making inroads with TV programming, subscription television is still the dominant TV service for consumers -- cord-cutting trends are not yet a threat. Consumers with consumer devices viewing online video content claim to watch between seven and eight hours weekly of programming, it says. But there is no cause for alarm. Overall, there is an 11% penetration rate of specific consumer electronic connected video devices. Still, the study warns that subscription TV sellers must be vigilant in being innovative to combat growing competition. ABI Research practice director Jason Blackwell stated: "In a relatively fragmented connected consumer electronics market, the pay-TV package is still the best means to get the widest range of content. In addition, some programming such as sports and premium content is still pay-TV-centric, even with TV Everywhere initiatives." On the online front: Netflix and YouTube are big consumer favorites for online video, while Facebook captures 97% of social networking fans, with MySpace next in line at 32%. Right now, the survey concludes that "cord-cutting has not occurred at the rate some had previously thought ... but the threat still exists." Scottsdale, Ariz.-based ABI Research says 90% of respondents of a survey of some 2,000 consumers subscribed to a pay-TV service.
Randy Falco, the former NBC Universal executive who joined Univision earlier this year, has been elevated to president-CEO at a time of expansion for the Spanish-language programmer. The genial Falco, who joined as COO in January, replaces Joe Uva, who left in April. Haim Saban, one of the company's owners, has been taking a leadership role in recent months as a search process for Uva's successor unfolded. Falco has been overseeing Univision's upfront deal-making recently, something he regularly did during an extraordinary career at NBC, which began as "Saturday Night Live" was launching in 1975 and ended as president-COO of the NBC Universal Television Group in 2006. He worked alongside Bob Wright at NBCU to acquire a string of properties that made the company particularly attractive to Comcast, which recently took control. He also oversaw Univision competitor Telemundo. Univision is set to launch three cable channels, one offering all telenovelas, another all sports and a third 24/7 news. Saban stated that the board "unanimously agreed" that Falco's track record made him "the ideal executive to lead Univision's future growth ... [he] has demonstrated his highly skilled leadership and strategic vision at Univision over the past six months." Falco will also join the company's board. At NBCU, in addition to the flagship network, Falco oversaw the company's stations and Univision has a mass of them linked with its two broadcast networks. Before joining Univision, Falco had been CEO of AOL. At NBCU, he also served as COO of NBCU's Olympic operations in 1992, 1996, 2000 and 2001.
ABC's "The Bachelorette" and "Extreme Makeover: Weight Loss Edition" continue to gain traction this summer. "The Bachelorette" gained almost 10% week-to-week -- now at a Nielsen 2.5 rating/7 share among 18-49 viewers, up from a 2.2 rating. "Extreme Makeover: Weight Loss Edition" almost reached the same level, gaining 15% to a 2.3 rating/6 from a 2.0 rating the week before. All this put ABC in the lead over its competition, averaging a 2.4/7. It earned a 2.2 rating the week before. Fox was next, thanks to "MasterChef," at 9 p.m. with a 2.0/6 -- 11% better than its last outing on Tuesday night, but 9% down from its Monday edition. Adding in a lower-rated "MasterChef" rerun earlier in the evening, Fox averaged a 1.6/5 for Tuesday. It earned a 1.7 rating a week ago. NBC also graced the airwaves with some original programming -- albeit a canceled "Law & Order: LA" now playing out the string of leftover episodes. It earned a 1.5/5 rating at 10 p.m., 15% higher than a week ago. With some reruns earlier in the evening, NBC earned a 1.3/4 for the night, the same as a week ago. This tied CBS -- in a total rerun mode with its usual Tuesday comedies. CBS had a 1.3 rating a week ago. Univision also claimed a 1.3/4, the same as the previous week, and CW had a 0.2/1.
Can Google do for social what it did in search? Advertisers have been waiting to answer that question for years as they waved good-bye to Wave, waited through privacy issues in Buzz, and watched as social network Orkut gained acceptance in Brazil, but nowhere else. Enter Google+. Think paid-search ads, Interest-based ad targeting, Google TV, and social gaming -- not today, but long-term. Tie it all together in the belly of the Internet and Google+ truly offers a connection to your circle of friends. "We currently do not offer advertising in Google+, but will continue to look for new ways for businesses to engage users in the project," said a Google spokesperson. While ad products are not available today in Google+, it's just a matter of time. Frank Lee, head of sales and marketing at DataPop, calls Google+ the engine's "best attempt to personalize ad targeting," and it doesn't arrive without challenges. "The big obstacle for Google will be giving users a compelling reason to use Google+ versus Facebook," he said. Google is winning the search game because they have all the users. Same goes with social." Rob Griffin, Havas Digital, global EVP and director of product development, calls Google+ an interesting extension of social efforts that began with +1. "Time will tell if they can make lightning strike twice, but to date they have yet to crack social," Griffin said -- suggesting that Google doesn't have a choice, as social search grows in importance and advertisers begin to adopt multi-click attribution. If Google falters again, it will relinquish some search activity to Twitter and Facebook while losing/sharing value on the search clicks they retain. Whether or not Griffin recommends the ad buy to clients will depend on the products and the brands. If there is a fit, he sees no reason not to test right away. Advertising within the social layer is less about new units or formats, and more about advanced targeting techniques, said Kenshoo CMO Aaron Goldman. Social ad spending rose in Q2 for search firm IgnitionOne clients. Advertisers spent 22% more on Facebook in Q2 2011 to run campaigns and impressions rose 11% compared with the prior year, according to a report released this week by IgnitionOne. But Wedbush Securities Analyst Lou Kerner notes that as the social site approaches 700 million users, growth in the most mature regions such as the U.S. continues to slow. The IgnitionOne quarterly report points to Google's majority market share stake in search and display. In Q2 2011, Google held 80% share of U.S. search advertising spend, compared with Yahoo and Bing at 19%. The Mountain View, Calif. company also led in impressions, clicks, click-through rates (CTR) and eCPM. Google's AdEx took 51% share of U.S. real-time bidding display spend, compared with Yahoo's Right Media at 49% share in the year-ago quarter. And what's missing from service on Google TV? Direct access to a Google-based social network, of course. No doubt Google+ will provide an outlet for social gaming too. It will give game developers such as San Francisco-based Zynga another avenue for fans of "FarmVille" and "Mafia Wars" to play. About half of Web users ages 18 to 44 play social games daily, according to a May 2011 eMarketer survey. The research firm estimates that U.S. social gaming revenue will exceed $1 billion this year. Most players are interested in social challenges brought on by brands willing to provide incentives such as coupons and discounts.
If God envisioned a media executive, it might be Rupert Murdoch. But, realistically, any big in-your-face vision would probably come from central casting. Murdoch is a character, to be sure, which makes for great TV entertainment, intrigue, and drama. All that and more is why Bloomberg TV is running a special this week on Rupert Murdoch, the chairman/CEO of News Corp. Urban legend has it Murdoch did his first NFL deal in the mid-1990s on the back of a napkin at a restaurant. Other deals were supposedly done that way as well -- or with even more flair and daring. More impressive was when Murdoch would overbid, sometimes wildly, irrespective of what it would specifically mean to his company's next earnings report. All that was done to feed his "vision". Other executives talk about Murdoch's ensuring of modern technology for his personal chores -- like email, tweeting, and the Internet in general -- all of which is interesting when it comes in the face of Fox's growing array of digital media assets. For example, the good, the bad, and the yet-to-be-determined: Hulu, MySpace, and The Daily. Just like on TV, in real-life business we want our central characters to be bigger than life. Does God have it a hand in it, as Ron Grover of Bloomberg BusinessWeek coins it for Murdoch? I'm guessing it might be a more accurate picture drawn out by a TV/business marketing executive. Think sales. Maybe the bigger issue is whether Murdoch's long-time, out-of-the-box business media savvy continues to be a good selling point for investors, business partners, and ultimately consumers. Are we thinking about Murdoch when watching "American Idol," Fox News, or "Rescue Me," or when reading The Wall Street Journal or the New York Post? Not really. We all know -- or think we know -- the man and what he stands for. But that has seemingly changed with time. In the end we just want to be entertained or informed. We aren't really wondering if our participation is lining the pockets of a high-powered, larger-than-life, media executive. Then again, if God did have a hand in it, I think we might reconsider.
If you want to understand the limits of TV ratings points, then consider this classic tidbit from TV lore. In the late 1940s, the water levels in Detroit reservoirs would plummet on Tuesday nights, from 9 to 9:05. Upon investigation, the Detroit authorities figured out why: Milton Berle's Texaco Star Theaterended at 9, and "it turned out that everyone waited until the end of 'Texaco Star Theater' before going to the bathroom." (That's a quote from Berle's autobiography.) It's an old story, one you may have heard it before -- but it's a very important point for understanding just how captive TV audiences were back in the day. Before time-shifted viewing, TV viewers booked their life schedules around the network's content. They engaged with programming with more than just engagement. They had commitment. That means a lot in terms of metrics. Because in such a highly engaged world, anyone who's seen your ad has probably incorporated your message. And so GRP (Gross Ratings Points) -- a measurement of the size of your audience -- becomes a measurement of the size of the audience that's committed to engaging with your ad. Clearly, things have changed. TV viewers aren't committing a hallowed half-hour for programming; they're time-shifting to watch around their own schedules (often in small chunks of viewing). Sports, which is perishable content, is a notable exception (which is why Super Bowl advertising still gains top dollar) -- but you pretty much need to go to the movies to find a captive video audience that's even remotely reminiscent of the audiences of classic TV viewership. Today's viewers also face a ton of distractions. One study finds that as much as 33% of Americans multitask while watching TV, with more than half of those multitaskers surfing the Internet and watching television at once. And as a study from the IPG Media Lab and YuMe reveals, smartphones are an even bigger cause of ad avoidance than DVRs. In case you haven't noticed, a lot of people have smartphones. Which means that today's viewer has a wild range of engagement levels -- completely riveted to programming at times, completely riveted to text messaging at others. In that kind of environment, impression data alone really doesn't mean much. Understanding ad effectiveness requires layering engagement data into the picture as well. We're seeing that thinking a lot more from major media players. One recent example: Kantar Media and Milward Brown have announced a new tool for understanding TV ad engagement. The tool asks critical questions like when viewers look at an ad, when they turn away, and the sequence of the ad within the pod. Look for more TV engagement metrics tools to come. And look for engagement to replace other standard metrics in a lot of other channels, too. Because the discussion about the history of TV engagement isn't just about GRPs. It's about the fact that, in a world of universal Attention Deficit Disorder, intense media clutter, and millions of messages vying for consumers' attention at any one time, the fact that people see something doesn't mean they actually care. Which means that the impression will only lose value as a stand-alone metric as time goes on. Instead, look for the industry to continue to migrate toward engagement-based thinking. For just one example, consider how Laura Desmond, CEO of Publicis' Starcom MediaVest Group (SMG), has gone on the attack against the traditional system of media mix modeling pp calling instead for a far more nuanced understanding of consumer "experience." SMG's MediaVest has followed suit on that thinking, opening a new human experience practice this month. When will the impression die completely as a metric? Probably never. But as more opportunities arise for measuring engagement, and as impressions (and even clicks) mean less and less all the time, we'll have to all learn new ways to make our numbers engaging. I'm sure municipal water departments nationwide will agree.
I enjoy headlines more than most. I appreciate the art of the headline, the (sometimes) drama, and the (often) silliness that provides a break in the day. A good headline should be informative, quickly, whether introducing the news or commercial content -- of which advertising is one form. This was a point made to me in a dramatic way by a former boss, the legendary Peter Rabar. I was working on the Columbia House account at the time. We were direct marketers of music and video, and the headline that was making us millions of dollars in revenue was "11 for a penny." Being disciplined, we were constantly testing alternatives. Nothing worked better. (Remember this was direct, and we knew precisely what worked.) And being very young and convinced that there had to be something more "creative" and therefore more effective, I was constantly suggesting alternatives. Peter then made a suggestion to me. He said he thought I should test my alternatives by displaying them on a sandwich board while walking up and down 53 Street and Madison Avenue, at 5 p.m., observing people's reactions. Interesting suggestion, I thought. His methodology was creative, but his intent was not immediately obvious. I then discovered that there was a busy subway on the corner of 53rd and Madison and, at 5 p.m., the "respondents" did not have a lot of time for my message. Sort of like the real world. As I thought about what the outcome might be, Peter's goal became very clear. A professor can teach the concept of a value proposition, and even the art of expression. But it might take the reality of a walk on Madison Ave, with a sandwich board, during rush hour, to understand that there was only one headline that was going to beat "11 for a penny." It was "12 for a penny." Lesson learned. Today I am fascinated and often entertained by the financial markets, and the flood of opinion that passes for information about where we're headed. And I'm constantly reminded of the famous line from the retiring Hollywood executive who said, "Nobody knows anything." Let me share some of my favorite headlines from the past week in what passes for financial information: "Optimism Jumps But Pessimism Remains High" "Economic Outlook Tough And Realistically Optimistic" And the one crossing into politics, "Perry Could Win, Or Not" You can't make this stuff up. I was walking yesterday on 42 Street in New York. I passed a man sitting on the sidewalk with a sign that read "Tips." He wasn't playing a guitar or singing or reading poetry. He was just asking for, and receiving, tips. A real direct marketer.
The bane of any media or entertainment existence is where to find more growth -- specifically, TV advertising growth. Through thick and thin, in bad and good overall TV markets, the NFL has endured well for its TV partners -- especially when it comes to TV advertising. Wildly strong gains were achieved this year -- amid an overall strong TV advertising market. In poor years, like in 2008 and 2009, the NFL still posted gains when every one else took cutbacks. Who's to think that anything will slow this train down? (Only a sustained in-season lockout, I'm guessing). So with this in mind, the preeminent professional sports league, the NFL, is floating the idea of yet another package of games -- an early season eight-game Thursday night schedule where it hopes to grab another $500 million to $700 million in rights fees from one lucky TV network. All of this is on top of the $4.5 billion it already gets collectively from Fox, CBS, NBC and ESPN. If successful, this would mean the NFL would grow its media revenues from 10% to 16%. In effect, the NFL estimates there is a specific level of more TV advertising dollars to be had. This new early season Thursday night package would match up nicely with an eight-game late season Thursday night package of games on the NFL's own NFL Network. Turner Broadcasting, a Comcast sports network (Versus, no doubt), or perhaps Fox's FX Network would seemingly be in the hunt. Carving out a new package doesn't add more games to the schedule; it essentially takes away some games from existing networks. But this doesn't necessarily mean less advertising. The guess is the fewer regional games on CBS and Fox (right now they have six or seven, depending on the week) means the remaining games would expand into other markets. CBS and Fox each sell national TV advertising inventory. Some had questioned whether the NFL will cut back on the fees that CBS, Fox, NBC, and ESPN pay. I don't think so. Previously, the NFL started up a "Sunday Night Football" franchise on NBC from scratch, offering a full season of games. In recent years, the NFL opened up the late season eight-game Thursday night schedule on its own NFL Network -- as well as a DirecTV consumer fee-based package. History is on the league's side. TV advertising revenue doesn't seem to be hurt when new packages are added. In the past, the NFL has found other ways to accommodate its TV partners, such as with more playoff games or other events. It could do the same again. The NFL hasn't guessed wrong yet. Some of this is indeed tied to the lockout -- that is, owners are looking for more revenue. Then again, if a lockout happens -- and a whole season gets cancelled - things may be viewed differently. To make back those losses, a more rapid expansion might be in the works. This might include what NFL players already say they are opposed to -- adding more games to the schedule, going to 18 regular season contests from 16.
A welcome revolution is coming to television advertisers. The continued digitization of TV will give brands more control over how and where advertisements appear and will provide increasingly precise and actionable performance measurements. To truly take advantage of this revolution, brands must first address the growing need for shorter and uniquely formatted creative, which are being driven by radically changing audience viewing habits. To fully understand the digitization of TV, however, brands should first look to online video. Video ad campaigns delivered online give advertisers the ability to understand who is watching, how much of it they are watching, and how different creative and format types are impacting viewer engagement. These actionable insights provide brands the opportunity to get an immediate and accurate snapshot of campaign performance, and develop more effective creative based on viewer behavior and needs. This real-time easy-to-measure and easy-to-optimize approach is dramatically different than that taken by broadcast television, which targets the same mass of viewers with the same TV commercials-over and over again. In the past 60 years, enormous dollar amounts have been spent trying to get brand messages across to TV viewers without any real understanding or proof of ROI. The deep and detailed measurement provided by digital media contrast sharply with the "finger in the wind" estimates historically provided for TV. What will brands get out of the coming sea of change? For one thing, control: Before TV digitization, the entire traffic process was controlled by TV and cable companies. Advertisers sent their creative to CBS or NBC and the network took over from there. Where the advertisement was delivered was largely out of a brand's hands. In contrast, with digital video, brands can take advantage of the mediums that serve the online market and gain back this control. With the emergence of digital TV and the maturation of digital media also comes the ability to easily move assets between platforms -- from mobile to online to TV, and back again. This creates ample opportunity for reusing creative if it's deemed successful, providing the ability to synchronize campaigns across channels, and ensuring a greater level of message consistency while comparing performance across mediums. These are the knowns about the digitization of TV. What's unknown at this point is how the mix of traditional players, new entrants and rapidly changing audience viewing habits will affect brand advertising in the space. For starters, the TV model has achieved a high level of success, despite being plagued by vague measurement. Rating and measurement companies like Nielsen and even comScore will change at a much slower pace, waiting first for new entrants and new technologies to prove themselves as serious competitive threats. In the meantime, online content owners are redefining"TV" and how it is watched. Netflix recently purchased the rights to a new 26-episode TV series, "House of Cards" starring Kevin Spacey, turning the subscription-based, Internet-streaming movie leader into a content developer. The growing influence of non-traditional companies on digital TV programming will amplify the need for brands to have direct insight into the kind of creative that resonates with viewers. Another major trend affecting brand advertising: the decline of live TV viewing - thanks in part to players like Netflix and in part to time-shifting viewing through DVR technology. Viewers are developing a fondness for "binge viewing," in which they watch several episodes of a TV show at one sitting, instead of checking in week after week for new episodes. Additionally, viewers are flocking to online video. According to comScore Video Metrix, 174 million U.S. Internet users watched an average of 14 hours of online video in March 2011. All of these trends will trigger changes in how brands address and attract audiences. TV ads will likely need to be shorter, mirroring what works online. Brands will need to speak to an online audience that expects immediate gratification, a high level of interactivity and the ability to socialize content. The only way for advertisers to determine what approach works best in the new digital TV landscape is to jump into the water and start swimming. The biggest and savviest brands in TV advertising have already realized the benefits of the intelligence they can gather from online and mobile video, and they will be among the first to expect the same insight from their TV ad spend. __________________________________________________________________________________________________Editor's Note: Are you a Video Insider? 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