The sprawling Nexstar station group, which operates affiliates of all major networks, is exploring a sale once again. A 2007 effort was scuttled as the economy weakened. Moelis & Co. has been retained as an advisor. Goldman Sachs held the role the last time. Nexstar says it now owns or operates 63 TV stations in 34 markets and reaches approximately 11.5% of all U.S. television households. It owns or manages stations that include the sizable Salt Lake City market and the tiny St. Joseph, Missouri DMA, as well as dozens in between. In May, it brokered a long-term affiliation agreement with ABC for nine stations. Earlier this month, Nexstar completed the acquisitions of two CBS affiliates in Wisconsin and Michigan from Liberty Media for $20 million. The company, which posted a first-quarter loss on a slight revenue gain, says it has no timetable for a sale or another financial maneuver. Nexstar reported revenue of $313 million last year. Under CEO Perry Sook, Nexstar has been a pacesetter in pushing cable/ satellite/telco TV operators to pay retrans consent dollars to carry its stations. Nexstar, which like every station group has been trying to upgrade its digital activity, said last week it had acquired GoLocal.Biz, which will be used to offer local directories, coupon services and entertainment listings to company community Web sites. Noting that three other station groups -- McGraw-Hill, Freedom and Young -- are for sale, Wells Fargo analyst Marci Ryvicker wrote: "While there is significant supply, we believe potential bidders will include both strategic and private equity groups -- both of which we believe are looking hard at these assets."
As online video continues its dramatic rise, Ogilvy & Mather on Thursday officially debuted its own specialty video practice. In development for nearly two years, Ogilvy's Advanced Video Practice will work with brand clients to take video engagement beyond the "viral" view by targeting measurable engagements that place viewers directly into the sales funnel. It is being led by Robert John Davis, who joined Ogilvy in 2008, after leading Rainbow Media's cable network sites and serving as MTV Networks' first executive producer of convergence. "It is not just TV 2.0 -- a new way to get TV programs online," Davis said of the burgeoning video space. "This is a vibrant, interactive engagement medium that goes beyond watching videos to engaging with videos." According to Davis, the new practice should augment various Ogilvy specialty areas, including digital influence, search optimization and search marketing, creative, content strategy and social selling. "Video is too important to treat as an add-on to TV or Web marketing efforts," Davis said. "As advanced video opportunities continue to grow across mobile and device-oriented experiences, maximizing this channel is vital for a brand's success." During its test phase, clients who helped shape Ogilvy's new practice included IBM, Nestlé, DuPont and others. The practice will focus on several key aspects of online video, including the creation of strategic content and video search engine optimization, as well as the production and distribution of video across multiple digital platforms and measurement. Furthermore, the plan is to bring together experts from online video strategy and production with the Neo@Ogilvy search practice and OgilvyEntertainment, to provide clients with a full-service online video platform. Needless to say, trying to maximize the potential of YouTube as a marketing channel for clients is one of the key ways in which the practice will be exploited. "Our strategy is built around the belief that views will be maximized if you optimize for the multiple forms of search first, making it easy for audiences to find, consume and share the content when they need it most," Davis added.
Apple Inc. could be making an unusual bid for the networks'-owned video service Hulu. Bloomberg News is reporting that Apple is considering a move for the popular premium video site, which estimates say could carry a $2 billion price tag. Typically, Apple doesn't make large acquisitions of important consumer products; rather, it grows big-brand consumer product and services businesses internally. Hulu is a growing site looking to compete with Netflix. But not all the Hulu owners -- Comcast Corp., News Corp., Walt Disney and Providence Equity Partners -- have been happy about its direction, looking for more revenue gains. Reports suggest Yahoo has already shown interest in Hulu. As part of the deal, reports say the purchase of Hulu includes five years of access to TV shows from its media-company owners, including two years of exclusivity. Hulu would seem to work well with existing Apple products, of which it already has a connection: iPhone, iPad and iTouch. It could also click with Apple's iTunes media store, which offers TV shows and movies for rental or purchase. Current-season TV shows can be rented for 99 cents and high-definition films rent for $4.99. Those iTunes TV offerings are commercial-free. Hulu, for the most part, carries commercials in a limited number of current TV shows. The digital service Hulu Plus, a $7.99/month service, offers a broader library of programming.
The preferred "can't-live-without" method to view videos and watch and search for entertainment remains for 68% of males ages 18-34, according to a recent Frank N. Magid Associates study sponsored by Metacafe. Consumer behavior continues to integrate more video in everyday life. It turns out that 23% of survey respondents watch daily, up from 13% in 2010. Overall, 57% of Internet users watch online videos weekly, up from 50% last year. Males ages 18 to 34 watch 7.8 hours of online video weekly, compared with 5.6 hours per week among all viewers ages 8 to 64. Many participants in the survey expect to watch 10% more online video within the next year. Short-form video content gets the views. About 66% of online video viewers regularly watch premium short-form content, such as music videos, movies trailers and clips, TV previews and clips, sports highlights, video game content, comedy sketches and original Web series. The percentage of online video viewers for each genre has remained the same since 2008, except for a few exceptions during the past few years. For example, consumer-generated videos uploaded to sites such as YouTube rose from 33% to 46%. Full-length TV rose from 25% to 30%. Full-length movies rose from 10% to 22%. Emerging technologies have begun to show promise when it comes to connecting with entertainment and video content. About 30% of online view viewers watch content on a mobile phone, Internet-connected television or wireless tablet. Internet TV continues to grow in acceptance, with 25% of online video viewers accessing the Internet through their TV set and an additional 34% interested in hooking in at a later time, according to the Frank N. Magid study. About 158.1 million U.S. Internet users will download or stream video at least monthly via any device in 2011, representing 68.2% of Web users -- up to 76% by 2015, according to eMarketer. It's not clear whether the device type can have an influence on recall of the video or the topic, but studies note the type of video ad unit does. In fact, the type of ad unit and the frequency with which consumers see a specific type of ad in a unit has a major influence on recall, according to eMarketer. The research firm said 35% of viewers in a recent study could recall seeing a common static banner advertisement, but only 13% of viewers remembered seeing a more eye-catching video banner advertisement. Interestingly, it's not that the static banner ad proves to have a greater impact than the video banner ad, but rather the frequency with which consumers see them. The ad consumers are more commonly exposed to will have a higher impact on recall. > Exposure influencing recall can also be found in streaming ad units. Pointing to stats from Break Media, eMarketer notes that 47% of respondents said they remembered the brand or product advertised after viewing a pre-, mid- or post-roll video ad unit.
Reebok is rolling out its new Reebok Lite line, which it describes as a cross between its '80s-era classics and cutting-edge technology, with a TV spot and videos by hip-hop producer Swizz Beatz. But don't look for any leg warmers, headbands, or Madonna references: While the shoes themselves may evoke '80s flashbacks, the new campaign is pure urban club culture. It includes 25 dancers, 150 extras and choreography from Hi-Hat, as lasers, smoke and an acrylic box create a multidimensional Classic R, enclosed within a box. A spokesman for the company, now owned by Adidas, says it marks the first time Reebok's Classics division will use TV in a decade, and that the spots will run on ESPN, Comedy Central, Adult Swim/Cartoon Network, MTV, and BET. The "new" line includes the Freestyle, as well as the Ex-O-Fit high top, the Classic Leather Runner and the Workout Low Plus. They're even sold in the original Union Jack box, which the company claims has been faithfully remade, right down to the exact standards of '80s typography. "In our Classic Lite collection, we've updated iconic Reebok styles with materials, colors and styling details that appeal to people who live their lives at the intersection of dance, art, street culture and sport -- and it's these people who we wanted to celebrate in the Reethym of Lite campaign," Todd Krinsky, head of Classics for Reebok, says in the company's release. In addition to TV, online ads are scheduled for Hulu, YouTube, MTV.com, Pandora, Complex, Facebook, BET.com, VEVO, and Twitter, with print appearing in such titles as Fader, Nylon Guys, and Spin. The spokesperson says Reebok is also commissioning custom public artwork, featuring interpretations of "Reethym of Light," in both New York and Atlanta.
Known more for watches and other personal electronics, Casio is taking to the airwaves for the first time to advertise its phones with an advertising campaign showing off the toughness of its G'zOne Commando Android-powered smartphone. The television and Internet video campaign, with the tagline "Tougher is Smarter," depicts the phone going through a series of real-life tests designed to show off its military-grade specifications, which include being able to withstand extreme temperatures, vibration, drops and submersion. "It's trying to show [that] the phone has been tested in these environments," Charlotte Runco, a representative for Casio, tells Marketing Daily. "This phone can withstand these extreme situations." The vignettes depict the phone being put through a series of tests, such as being strapped to a surfboard, attached to the undercarriage of a sports car, being taken on a trail run and enduring a "hot yoga" class. The spots employ the question, "Are you Commando tough?" The effort is targeted at consumers who lead an active lifestyle and don't want to worry about their phones (with a secondary target at anyone prone to clumsiness and mishaps with their devices), Runco says. The television commercials began this week, airing on ABC's Jimmy Kimmel Live. The commercials will during a wide variety of programming, including during ABC's "Expedition Impossible," as well as on cable networks such as Spike, Fuel, the Military Network, the Outdoor Channel and ESPN. The brand has also signed on as a sponsor of the X-Games, which will air on ESPN on July 28-31.
Verizon increased its subscriber rolls for its FiOS TV service in the second quarter at a faster pace than in the same period a year ago. The telco posted a net gain of 184,000 customers, above the 174,000 in the same period in 2010. Verizon reported 3.8 million video customers at the end of June in markets from Boston to Los Angeles, Seattle to Tampa. FiOS also appears to be improving its customer uptake, possibly grabbing share from competitors, as the penetration rate reached 30%, up from 25.9% last year. FiOS was available in 16.1 million homes at the end of the second quarter, while AT&T had its telco TV service available in 29 million homes. AT&T said Thursday it should complete its footprint for U-verse by the end of the year. FiOS plans to make the service available in 18 million homes, but CFO Fran Shammo said on a conference call Friday, that success could breed expansion. "Based on penetration rates into the future, we will make those decisions." With ad sales, Verizon bills FiOS as an opportunity to reach upscale customers, saying the median household income for a FiOS TV home is 87% higher than the median for all U.S. homes. Even as Verizon competes for customers, it has partnered with a group of cable operators, AT&T and DirecTV to stitch together a system allowing local ads to reach homes served by all of them in some markets. That system falls under the aegis of NCC Media.
HD commercials now comprise almost 20% of all TV commercials -- about double the share they had a year ago. For the second quarter of 2011, a new study from Extreme Reach says the reason for the spike is lower distribution costs, more local TV adoption of HD commercials and a simpler execution of HD spots in overall campaigns. Extreme Research says these factors are important, considering a slower growth in HD advertising in 2010. Low-cost, cloud-based services have driven down costs for some business segments by 30%. The company says 94% of local TV stations that can take HD commercials use cloud-based services. Overall, 44% of local TV stations and 63% of cable operators can take HD commercials -- versus a 27% number for TV stations and 50% by cable operators. The boost has been pushed by different levels of advertisers. Where only major big brand advertisers had used HD commercials, now regional and smaller markers -- grocery stores and regional auto dealerships -- are incorporating HD messaging into their campaigns. Says John Roland, CEO of Extreme Reach: "Advertisers had been in a holding pattern for a while when it came to HD. The Q2 numbers reaffirm what we've heard from advertisers for a while: When key industry hurdles to adoption become less pronounced, you'll see more and more HD ads on TV."
Pandora's push to become a multiplatform service got a boost this week with Verizon's announcement that it will make the personalized Internet radio service available to FiOS TV subscribers in major media markets, beginning with California, Texas, and Virginia. The companies plan to introduce Pandora in other Verizon markets in the not-too-distant future. The new service will offer users all the interactive functionality of Pandora's online audio service, including creating new stations based on the individual's favorite artists, songs and genres, bookmarking songs for purchase, and rating songs, all through commands from FiOS remotes, including mobile devices with the FiOS TV Mobile Remote app. Verizon subscribers who already have a Pandora account can access it by entering their email address and password as they would normally. The Pandora-less can also sign up for a new account through FiOS. The deal should make it easier to access Pandora content on home entertainment centers. Previously, FiOS TV customers could stream a variety of online content from Windows PCs to TVs through Verizon's Media Manager service. Over the last year or so, Pandora has mounted a concerted effort to bring its personalized digital audio service, originally online-only, to new platforms, including cars and mobile devices. On the automotive front, in January Toyota announced that it will integrate Pandora into its new "Entune" multimedia system. Like previous auto integrations, users can connect Pandora to the Toyota Entune system via any cell phone with a data plan, including smart and feature phones. Pandora already has partnerships with several major automakers, including Ford and Mercedes, along with radio manufacturers Alpine and Pioneer, whose after-market products allow drivers to access Pandora from car dashboards.
The permission to fail is a powerful and, sadly, scarce force in the traditional media business today. Too many companies prefer to be reactive rather than proactive to change. They cut costs and resources rather than reliably earmark funds for research and development. Lessons learned from a failed attempt can be as valuable as a successful outcome. Thomas Edison recognized the value in failure. The underestimated byproduct of two years of failed experiments to invent a lighting system was learning from 2,000 ways how not to make a light bulb, he would say. There is too little evidence of creative trial and error or discovery in the television and film businesses. Television networks and film studios generally maintain costly, tightly controlled development processes, even as consumers take their creative endeavors directly to the open Net, where the viral masses quickly judge them a hit or miss. In prime time, where so many series routinely fail every season, programs are produced at the same high prices and in virtually same manner as always -- as if cancellation was not the inevitable end game. Hitting it big with one or two golden series remains the goal -- especially when Netflix and Amazon are the new "syndicators" paying big bucks for reruns. Television's program development system remains largely devoid of core incubator creativity, where cost-effective risk and failure can render something new. The same generally is true in theatrical films. In response to tough economic times, the big screen has become a safe haven for tried-and-true formulas and character franchises as movie studios seek to minimize box office losses. Ironically, the recently released Harry Potter finale is a reminder that the record $7 billion franchise would not be possible if Time Warner had not taken the risk more than a decade ago on an unknown commodity from a coffeehouse author. That's as close to creative pass-fail as Hollywood's big players get, aside from Pixar and DreamWorks, where innovation is a corporate mandate. Steady investment risk that accepts failure as the price for huge dividends is more evident among tech-media hybrid companies. The next version of Windows available in 2012, designed for tablets and marking its biggest departure ever, is the product of Microsoft's failed and successful experimentation over many years, according to Business Insider. The same is true of Microsoft's Kinect, which has steadily gained popularity and adoption by game-playing consumers, marketers and content producers through endless cycles of innovation. From its launch, Kinect has been a favorite relatively inexpensive, mainstream tool of "programmers, roboticists, tinkerers," research scientists and other experimenters, as pointed out in a recent New York Times story. Originally developed as a $150 Xbox console three-dimensional add-on, Microsoft now provides toolkits for noncommercial users to develop their own applications and experiments in areas stretching from home automation and manufacturing to the performing arts. Indeed, the most redeeming aspect to placing affordable, functional digital technology in the hands of consumers is that it perpetuates a Petri dish mindset that hinges on try, fail, succeed and repeat. The recent unveiling of the new Google+ 'Facebook killer' instantly dredged up memories of the company's failed social media effort Buzz. Like many other shortfall efforts from Google labs, Buzz was not so much an unsuccessful attempt at social media as a means to a better end -- just like Google Wave and Google Health. Timing will make Google's Buzz experience worthwhile. In a field of intense competitors that includes Apple, Facebook and Microsoft, Google is the only player to leverage both social media and an operating system -- Android, which is another example of tireless trial and error. Unlike most companies, Google's innovation culture encourages and rewards trial and error as the life blood of future growth. It's the norm and it is expected. On another level, Google Ventures is investing $200 million in start-ups recognizing that while only a fraction will pay off, trying is everything. Google and Amazon lead a growing chorus of media-tech hybrid companies investing nearly $600 million in start-ups the first quarter of this year to foster innovative risk-taking that could result in the next big thing, according to the National Venture Capital Assn. Permission to fail in order to eventually succeed offers the promise to create not only new products but entrepreneurial thinking and visionary leadership to challenge and change conventions. What traditional media -- and business in general -- need is to subsidize playgrounds where enterprise and invention are routinely encouraged. At this pivotal economic and tech juncture, television and other traditional media need places where employees can approach new concepts with the tenacity and wonder of a jungle gym, knowing it's OK to pick themselves up and try again, applying what they learned from a fall. All it takes is remembering the confidence-building exhilaration of such youthful experiences -- and run with it.
Advocacy group Free Press recently launched a new initiative aimed at exposing what it calls "covert consolidation" in the media industry. As part of the campaign, the group created a short video with examples of how different local TV stations are sharing anchors, reporters, footage of interviews and even Web sites. Newport Television, a media company based in Kansas City, Mo., responded by demanding that YouTube take down the video. Newport alleged that Free Press infringed copyright because its clip showed the logo of two stations controlled by the company. The logo appeared in a segment of the clip that showed a Web site shared by Newport's WTEV-TV and WAWS-TV, both of which are in Jacksonville, Fla. (Newport's Web site includes both stations among its properties, but only WAWS-TV is listed as "owned and operated" by Newport.) This is the type of claim that would go nowhere in court, given that Free Press clearly made fair use of Newport's materials. Nonetheless, YouTube had no choice but to take down the clip or risk losing its immunity from copyright liability for user-uploads. That's because the Digital Millennium Copyright Act's safe harbors provide that sites like YouTube are immune from liability when users upload pirated clips, but only if they remove the material at the request of the content owner. Newport is hardly the only company to attempt to use copyright law to shut down legitimate speech. The Center for Democracy & Technology reported last year that Fox News, MSNBC, National Public Radio and other news organizations have used copyright law to stifle political speech online. The CDT examined publicly available records and found 12 recent instances of political ads' removal from the Web due to bogus takedown notices. When Free Press received Newport's cease-and-desist letter, the group fired off a response contesting the claim and threatening to sue the broadcasting company. The advocacy group reported today that Newport has backed down and that its video was restored by YouTube. While that's good news for Free Press -- and for anyone wishing to watch the clip -- the incident still raises questions, including why media companies feel so free to send takedown notices when they don't like particular content.
In roughly two months, the long-running ABC soap opera "All My Children" will end its run on the network -- and three days after that, thanks to an unprecedented licensing agreement between ABC and the production company Prospect Park, it will enter the history books as the first broadcast television series to move intact from television to the Internet. If "AMC" succeeds there, either as a free advertiser-supported Web series, or on a pay-per-month or pay-per-view and/or download platform, everything we know about the production, distribution and potential longevity of broadcast and cable programming will likely change forever. (What a shame that "Guiding Light," which Procter and Gamble and CBS gave up on two years ago, wasn't allowed a similar shot at Web redemption -- which would have made it the only entertainment series ever to move from radio to television to the Internet.) Strangely, there has been almost no new information about Prospect Park's specific plans for "AMC" since the big news about its big move broke last month. ("AMC" will stop producing new episodes for ABC in late August.) The same is true of its companion soap, "One Life to Live," which is set to end production in November, will present its final episodes on ABC in January, and will then follow "AMC" to Prospect Park's new online home, whatever it may be. ABC's much-publicized plans for "AMC's" final weeks on its air, which are said to include an influx of former stars from the show returning as their long-departed characters and numerous long-running storylines are brought to satisfying conclusions, will seemingly have to be altered if Prospect Park's plan to continue the show without interruption are to happen. Actors currently on the show will need to commit to the Web version -- if they're still wanted, that is -- while casting notices will have to go out for newcomers. With only two months to go, it would seem that bits of news about the future of "AMC" will start flying any day now. The immediate impact of the ABC-Prospect Park arrangement will center on "AMC," but it will accelerate overnight if this soap opera proves more popular online than it has been in recent years on TV, especially if millions of fans agree to pay to watch it, or its performance is strong enough to entice the right advertisers. Imagine the impact on television research if hits or downloads or other measurements of Internet viewing and engagement show that "AMC" is stronger than traditional television ratings have led us all to believe. Further, if "AMC" enjoys robust new life online, think of the firestorm of fan-fueled campaigns to come for on-the-bubble prime-time broadcast and cable shows. (It isn't that far a stretch to suggest that under these circumstances, advertisers might prove similarly enthusiastic about the continuation of certain shows even if broadcast or cable networks have lost interest.) If an established television series can be shown to survive and thrive online with no further TV presence of any kind, then everything is going to change -- and that change is going to happen fast. If a show's cancellation by a television network becomes potentially irrelevant, can the creation of half-hour and hour-long "traditional" television series specifically for the Internet be far behind? Some folks are saying that a soap opera like "AMC" is not the best test case for a TV-to-Web transfer, because soap viewers are perceived as older, less tech-savvy and not as likely as younger people to commit to watching a show of any kind online. There may be some truth to some of that, but as one of the millions of young people who were hooked on "General Hospital" during its glory years (that would be immediately before, during and for quite a while after the fabled Luke and Laura period) and who somehow managed to keep up with the show without benefit of a VCR, let alone any other electronic device, I'm here to tell you that we would have killed to be able to watch "GH" on a laptop, phone or other mobile device on our own schedules. Then again, I wonder if the "GH" phenomenon would have been as phenomenal if it had been that easy to watch the show. Half the fun at the time was the increasingly creative lengths people went to just to see it and be in on the excitement. Of course, "GH" was what it was in its heyday because of the quality of the show, which was youthful and inviting to new viewers without being disrespectful to veteran viewers or the history of its characters and their stories. This is a particular creative skill set that has largely eluded soap writers and producers, not to mention the network executives to whom they have reported, for so many years that together they have brought the entire genre to its knees. I like to think that, under the creative control of a forward-thinking company like Prospect Park, all those broadcast content barriers and outdated creative challenges will be shunted aside, allowing both "AMC" and "OLTL" to become as interesting, relevant and relatively uninhibited today as "GH" was under the guidance of the legendary executive producer Gloria Monty. But that's another column for another time.
We have all seen countless consumer-invented TV commercials and other consumer-inspired messaging -- for Doritos and other popular brands, especially during big TV events like the Super Bowl. What would happen if young millennials took a real whack at re-inventing -- or curating -- a media brand, like MTV, NBC, Netflix, or a Comcast Xfinity web brand? A new study from MTV research says that, more than ever, young digital consumers are well-versed in manipulating video, text, and ideas when it comes to their favorite brands. But what about traditional media brands? Re-inventing media logos, taglines, and overall direction would be unique. Still, this may not be much of draw for traditional TV networks. Unlike cable networks, broadcast networks don't really have big brand campaigns to begin with. Much of their efforts are concentrated on the brands of their individual shows. Still, newer media companies are always open to changeable ideas. We see how Google regularly changes its home page logo -- depending on the season or whatever. Of course, this isn't letting consumers change its brand. But the whimsy is noted. In the past, many TV and film producers have mused they might just be "instigators" of entertainment content, not "finishers" of it. For example, they might let consumers vote on storylines or character changes. Nick Shore, senior VP-strategic consumer insights and research at MTV, scratches his head, and we do the same: "What would it mean for a brand, we wondered, to be engaged in a process of constantly curating and refining its identity, especially in this online environment...?" He didn't mention media brands, per se. But entertainment is a natural attraction. "The world doesn't just talk back, it hyper-responds, and is engaged in a powerful and intense feedback loop. Is your brand engaged in a thousand points of conversation -- listening and responding?" Sounds complicated. The listening is perhaps the easier chore. Assimilating all new marketing ideas through the big and busy social media cement mixer is the harder job.
I attended the Social TV Summit in Los Angeles yesterday. (Actually, it was held at the Bel Air Country Club, but that's another story.) As the summit's title suggests, it was a day spent listening and talking about how social media is intersecting, enhancing and altering television viewing, media and advertising. It was a great conference and hit a hot topic at exactly the right time. Noted media economist and co-host Jack Myers grabbed everyone's attention with his opening remarks, boldly predicting that social TV marketing would be an $8 billion to 12 billion annual market by 2020. While I haven't fully gotten my head around those numbers yet, Jack is a good friend and has been extraordinarily accurate in his macro market projections over the years, so I'm inclined to believe them, particularly when you consider them within the context of the $40 billion to 50 billion annually which he has previously forecast for all of social media marketing by 2020. Where will all of this money come from? Here are some of my thoughts: First, what is social TV? While I don't think you can really nail down a great definition of social TV at this point, since it's so nascent, I view it as all of the activity occurring at the intersection of social media and television devices and programming. It includes second screens used while watching TV, networked companion devices that support or relate to TV, social tools and applications on connected TVs, and all of the TV-related content and conversations on social media. TV viewing plus Web and social use is big. Users spend an enormous amount of time surfing the web while watching TV. 78% of users do both at least monthly, and one-third of all Web browsing occurs in front of a TV. Companion device usage while watching TV is big, too. 35% of tablet and iPad usage occurs in front of the television, and this is before we really have that many robust and specialized applications to truly enhance or support better TV viewing experiences. Many (including me) predict that app-enabled iPhones, tablets and iPads will be the dominant "remote controls" for home television in a few years. Strong measurable linkage between TV viewing and social media expressions. Companies like Blue Fin and TrendRR are doing incredible things bringing Web-like Big Data crunching visualization to TV-related social expressions. Now, marketers and their agencies can know exactly what and how many social expressions their TV ad impressions generate. Lots of new TV-related social tool. Check-in tools have become big in location based services. Similar tools are now available for TV viewing. Services like GetGlue and Miso are helping TV networks and programmers establish loyalty-based relationships with their viewers, enabling them to "check-in" while viewing, earn badges and even get show stickers sent to them in the mail. Will this add up to $12 billion annually in nine years? I don't know, but I do think that it's going to be really big. What do you think?
When I was on the media agency side of the business, and sat through numerous upfront presentations, there would generally be at least one or two cable networks trying to sell me on some sort of value index that went above and beyond just the Nielsen ratings. While some of these indexes were interesting, all were fundamentally flawed. Some networks incorporated MRI, IAG, or some other measure that certainly have their uses, but are not appropriate for measuring viewer involvement or engagement on an immediate or ongoing basis. A few years ago my buyers asked me to develop a better set of value factors that could be used for all clients -- value factors that I could not find fault with (and anyone who knows me understands how difficult that is) and that objectively examine all networks. There were a few attributed I thought essential for developing value factors: · The size of the audience is not a significant consideration. Ratings, percent composition, or other such metrics are therefore not part of the equation. The idea is to · The data should focus not only on program engagement, but rather on minimizing commercial avoidance as well. · The measurement should be transparent and easily replicated. One should be able to provide the analysis to support how the factors were derived. No secret sauce or black boxes here. · A buyer or planner should be able to do the analyses at any time during the year covering any period of time, daypart, program, or demo. Analyses that can only be done once or twice a year do not allow for changing direction in mid-season (when the competitive TV landscape often changes dramatically). This is particularly important to analyze cable networks that air original scripted programming only certain times during the year. · The information should be based on currency data to avoid a claim that the value factors are based on metrics people don't believe in or use. The following are the critical parts in the development of the Commercial Value Index (CVI). Average Time Spent Per Viewing Event: The more time you spend with a channel or program in a single sitting, the more interested you likely are in the content and the greater the likelihood you are exposed to the commercials. The Average Time Spent Per Viewing Event provides a reasonable indication of viewer involvement. The data is available from Nielsen's NPower system. Channel Switching: Less channel switching during commercials means greater viewer involvement and a higher degree of commercial exposure. Channel Switching is calculated by taking the live commercial minute rating divided by the live program rating. The only reason the live commercial rating would be lower than the live program rating is because the channel was changed. Live Viewing: With DVR penetration fast approaching 50% for key demos, there is no question that avoiding commercials is easier than ever. The bulk of DVR playback includes fast-forwarding through commercials. Nielsen simply cannot measure this phenomenon. Even Nielsen's C3 measure misses a substantial amount of fast-forwarding through commercials. Aside from minimizing channel switching, the best way to minimize commercial avoidance is to maximize the percentage of live viewing. This is calculated by simply dividing the live rating by the live + 7 rating. Calculating the Commercial Value Index Each element in the CVI is analyzed for all networks. The average for all broadcast and cable networks combined becomes a 100 index. Each network is then indexed to the average to develop a value factor for each category. The three factors are then averaged to arrive at a Commercial Value Index for each network. I give each factor equal weight, but if you think one element is more important, you can weight them anyway you want. The CVI for 4th quarter 2010 showed: For adults 25-54 the Top 10 ranked networks were, ION, USA, ABC Family, TNT, CBS, Lifetime, Adult Swim, ABC, AMC, and Syfy. For adults 18-49: TBS and Nick-At-Nite joined the top 10 and ABC Family and Syfy fell out. All the other networks remained, but the order changed somewhat. Looking at different demos, such as persons 12-34 or men 35-64 obviously yields different results. Anyone can do this analysis and arrive at the exact same answers. Full disclosure: I am currently consulting for ION Media Networks. The Commercial Value Index, however, was developed long before I started consulting for any cable networks. The data holds up to scrutiny, and is as transparent as Nielsen data can be.
Summer is the time for networks to drive big awareness for the fall season -- especially for new shows. But sometimes with a change in characters, more marketing is needed. High on the list here is the obvious: CBS' "Two and a Half Men." What better to get our attention than an outdoor and print campaign showing -- what else -- three men, including new cast member Ashton Kutcher? Oh, by they way, they are naked behind a sign touting the start date of the new season. What's behind the sign? (A double entendre, I'm sure). Hmmm... perhaps it's what is behind the new direction of the show... or about the demise of Sheen's character. On that last point, we're betting some nasty, unique death with hookers, drinking, gambling, perhaps some fast cars thrown in. Key aficionados are no doubt tweeting a lot -- wondering what this all means. That's the hope of CBS. (We also wonder how Patrick Jane is going to get out of his mess for seemingly killing off Red John on another CBS show, "The Mentalist.") CBS' message on the "Men" ad: "All will be revealed... 09.19.11". It is a nice teaser. But maybe not all that original. A slightly embarrassed Kutcher is in the middle of Jon Cryer and Angus T. Jones, with Cryer looking down -- presumably at Kutcher's private parts. Kutcher is a key draw for women -- and young women -- a key demographic component of primetime network television. Naked and/or embarrassed looking young men go a long way in drawing attention. I prefer an earlier photo -- not of a marketing kind. In May, just after the announcement of Kutcher's addition to "Men," a photo captured the three actors seemingly screaming at each other. An argument? So they said -- with tongues firmly in cheeks. More controversy? We can only hope. In a more disparate entertainment media environment, the better question is whether "Men" can morph into a different show and find a new gear.