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.
Keeping with TV networks' efforts to spread around its content to different digital video distributors, CBS Corp. and Amazon.com today announced a non-exclusive licensing agreement. The deal will allow Amazon Prime customers to stream an additional 2,000 episodes of CBS TV shows -- now totaling 8,000 TV episodes and movies. Terms of the CBS-Amazon deal were not disclosed. Some 18 shows from CBS' library are part of the Amazon agreement. This includes: "The Tudors," which aired on Showtime; CBS' "Numb3rs" and "Medium"; the complete Star Trek franchise; and "Frasier" and "Cheers," both of which aired on NBC. In February, CBS also made similar library deal with Netflix under a two-year pact. Reports suggest that deal to be worth $200 million. Recently, Netflix added to its coffers with a renewal for nonexclusive TV and theatrical movie content from NBC Universal. One analyst suggested that deal gives NBC $300 million per year from Netflix -- a significant rise from $25 million per year it had been getting from the digital video service. In December 2010, Netflix inked a one-year deal with Walt Disney and ABC valued at around $150 million to $200 million. While that deal included library product, it also included more recent episodes of shows such as ABC's "Grey's Anatomy" and "Brothers & Sisters." "Amazon has created one of the most popular consumer marketplaces in the world, and we are very pleased to make these titles available to their Instant Video and Prime customers," stated Leslie Moonves, president/CEO for CBS Corp. "This new agreement represents another meaningful way for us to realize incremental value for CBS' content." Amazon Instant Video is a streaming video service with 90,000 movies and television shows available to purchase or rent. This service includes commercials; with individual shows priced as low as $1.99 an episode. Amazon Prime, a $79-a-year service, is commercial-free.
NBC Universal is getting into the private digital ad exchange business. NBC Universal says the move is to reduce the reliance on third-party ad exchanges -- which have been criticized for driving down CPM user pricing. Private ad exchanges can work better for premium digital sites, where they can set specific price limits. This move would help NBC's family of sites and premium video digital site, Hulu, of which NBC Universal is a partner. NBC says private exchanges will provide clients with direct access to premium display ad inventory that can be targeted at scale across the NBC Universal Audience Platform, NBC's own digital ad network. "One of our main goals in launching the UAP was to take better control over our uncommitted digital ad inventory and dial back our reliance on third-party ad networks," stated Peter Naylor, executive vice president of digital media sales, NBC Universal. "By launching this private exchange, we can work directly with our agency and media partners, offering them better pricing, more informed and targeted advertising buys," he added, "and the opportunity to deal directly with trusted and premium content sources." NBC will use technology from Admeld to monetize its ad inventory in a controlled, real-time bidding system. NBC says with its new private ad system, premium platform publishers can target their most valuable audience segments, as well as restrict access to a select group of buyers. They can also set granular rules around pricing. NBC Universal's Audience Platform says its inventory is sold solely by targeting audiences and not by specific Web sites, using top data providers including BlueKai, Nielsen and Quantcast.
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.
AT&T continues to boost distribution of its U-verse TV service, although expansion came at a slower pace in the April-June period than last year. The net customer gain of 202,000 was slightly below the 209,000 in 2010. Still, the number of U-verse TV customers now stands at 3.4 million. That pushes the AT&T service past Cablevision (using its numbers through June) in the ranks of multichannel video providers. The U-verse TV net additions of 202,000 in the most recent quarter was down from the 218,000 in the first quarter this year, but the recently completed period is "traditionally a seasonally soft quarter," according to Bernstein analyst Craig Moffett. AT&T said that in markets where U-verse has been available for three years-plus, it has a penetration rate of 25%. The company expects to complete the building of its U-verse footprint by the end of the year, which might lead to an increased focus on grabbing customers from competitors. On one level, U-verse is fulfilling a goal that AT&T had when it joined Verizon with a telco TV service: allowing it to sell larger packages. The company said more than 75% of its U-verse subs have a triple- or quad-play, with average revenue at $170, which is about 8% higher than a year ago. U-verse is available in markets such as Los Angeles, Dallas and Atlanta.
"Today, we celebrate the first glorious anniversary of the Information Purification Directives. We have created, for the first time in all history, a garden of pure ideology -- where each worker may bloom, secure from the pests purveying contradictory truths. Our Unification of Thoughts is more powerful a weapon than any fleet or army on earth. We are one people, with one will, one resolve, one cause. Our enemies shall talk themselves to death, and we will bury them with their own confusion. We shall prevail!" Remember that? It was from Apple Computer's groundbreaking 1984 Super Bowl ad introducing Macintosh to the world. It was the speech shown on a giant screen to the subjects of a hypothetical Orwellian dystopia. The climax occurs when a hammer is hurled through the air by a heroic woman as she's chased by security, shattering the screen -- and ushering in the new world of choice. Luckily, the leader's speech wasn't presented using Flash or Java, or those monochromatic minions would have seen this: "Thanks for trying to access Flash Player. Unfortunately it is not available for your device because of restrictions that Apple has put in place. Click here to see a wide array of the latest smartphones and tablets that do support Adobe's Flash Player." That's what this minion sees -- a lot. And so do a lot of my tech-friendly friends. What's even sadder, is that I bought one of those first Macs (a 128k that booted up with a system disk), and almost every model since, mostly because of the ease of access and use the brand consistently provided. If you haven't already guessed, this diatribe has a lot to do with my new iPad2. I can't understand how a device that doesn't allow the user to access all moving image Web content (including certain Facebook features and our own emmytvlegends.org site) is thriving. Even worse, to make our website work for what is now millions of iPads in play, we've had to reprogram our site at great cost -- how many other nonprofits like ours, with unique video content, are in the same boat regarding Apple's obstinacy? How much amazing content will be forever lost in the shuffle? Here's a pretty good ad from Motorola that plays on Apple's change-of-heart: http://www.youtube.com/watch?v=ndhuEUX1kIU. But Apple is not the only source of frustration for consumers. I can read Amazon Kindle books on my iPad, yet my colleague cannot yet access Kindle on her Blackberry PlayBook (but it can play Flash video, so we're even). Which brings us to Harry Potter author J.K. Rowling, who recently announced the soon-to-be-launched Potterworld site. One of the promised features will be the availability of Harry Potter e-books, something that Rowling had not allowed because of the convoluted proprietary digital rights management rules out there. News sources say that her books will be widely available, and the move may even force Amazon to reconsider its closed access to ePub and other book formats on its Kindle. We certainly hope that in the spirit of openness, Rowling's new site won't prematurely dump Flash and Java. Even Hulu has made what could be a colossal mistake when it comes to their bottom line. Why, when allowing users to access tons of free content on their desktops, do mobile users have to subscribe to Hulu Plus paid service to see any content? Wouldn't it be better to tease upscale mobile users with the same video available on all platforms, and then lure them into a subscription model? Netflix always had the streaming rights. Subscribers can access content from almost any device with ease and no additional charge. It makes their recent price increase easier to swallow. On this current battlefield for dominance of both platforms and devices, it seems that the big guns in digital have turned into their own worst enemies when it comes to creating a frustration-less user experience. It's time to stop taking a "too big to fail" approach, burying customers with their own confusion, and provide seamless ease of access -- before it comes full circle, and hammers really start flying....
For a long time I've doubted that the Internet would replace traditional over-the-air and wired television as the primary source for video content. I just didn't believe that Hulu, Netflix, YouTube or any other online service could take the place of broadcast and cable networks. My conclusions were partly based on hard evidence -- Nielsen research shows that only about 1% or 2% of all "three-screen" video is consumed over the Internet -- but, like many commentators, I mostly extrapolated from my personal anecdotal experiences. Unlike some of the people I hang around with -- media reporters, research geeks, engineers -- I am not an early adopter. I do not have an iPad, have not signed up for Google+, and do not thrill to the pending upgrades of any of my technology products. And until now, I haven't seen any reason to connect my TV to the Internet. Nevertheless, as a consumer I do keep an eye out for technologies that will improve my life, which is why I recently bought an Apple TV. The issue is that we are a family of rabid Red Sox fans living behind enemy lines in Yankee territory, and the baseball games we want to watch are not available on standard TV. We are longtime subscribers to MLB.TV (at $25/month) and have followed the games online -- but it's just so painful to sit in the living room watching a baseball game on a laptop when there's a nice big HDTV in the same room. I knew there were various solutions to this problem, but was unwilling to spend the money to upgrade my existing Blue-Ray player to an Internet-enabled one. Nor, with a teenage boy in the house, did I want to introduce an X-Box into the living room just to access the Internet. However, I was willing to try an Apple TV. Like most Apple products, the genius of the Apple TV is its simplicity and ease of use. Plus it only costs $100, which seems reasonable for a purely indulgent purchase. The device itself is small -- not much bigger than a pack of cards -- and simple to install. All you need to do is plug a power cord into the wall, connect an HDMI cable to the TV, and hook up the Internet (either WiFi or wired.) The navigation is intuitive and the HD quality is good. When I tune to MLB.TV, it's almost like watching baseball on regular TV (without the commercials.) As an added benefit, Apple TV also provides easy access to Netflix, so I was able to investigate what the Netflix craze is all about. But after having the Apple TV for about a month, I wonder if I'm missing something. I don't understand why anyone thinks Netflix could compete with regular TV. The problem isn't the quality of the viewing experience -- which is high -- but with the content. There's much less streamable Netflix programming than I had assumed. There are a handful of movies I plan to stream - eventually, at some point. I am delighted to see that the full library of "Saturday Night Live" and "The Office" seasons are now easily accessible. And my son is catching up with all the "South Park" seasons he was forbidden to watch growing up. But I find that my Netflix viewing is limited to times when there is absolutely nothing else to watch on TV. In the long run, Netflix may challenge the traditional syndication model, because it is fundamentally a new way of syndicating content, but viewers will first have to be trained to proactively look for the programs they want, rather than just turning on the TV to see what's there. So the bottom line is that Apple TV is great for making Red Sox games available on our living room TV. That was $100 well-spent. And by making Netflix easily available, it has created an emergency back-up option for periods when I'm craving a particular rerun. But would I cut the cord and cancel my cable now that I have Applet TV? No way. And even if Apple TV offered Hulu Plus (which for some surprising reason it doesn't) I don't think I would actually cancel cable and give up live television, sports, "Mad Men" and the other networks that are currently unavailable on Hulu. What my experience with Apple TV has made obvious is that there are no real technology obstacles to making Internet TV ubiquitous. It's clearly possible to create a simple elegant device to stream content to an HDTV. The real obstacle is the reluctance of content providers to turn over their programming to services that would undermine their remarkably successful ad-supported business models. Duh! And really, why should they? Creating content is not free - why should content creators give it away for free? The notion that the Internet will fundamentally change the way we watch television seems more and more like a pipe dream as we come face to face with the economic realities of licensing content. With its new pricing plan, Netflix streaming is now going to cost $7.99 for a lot of movies and TV shows I don't really need. What will the price be when they have more movies and TV shows? Maybe a lot closer to my current cable bill? Hmmm...
The recent demise of another premium and studio-backed producer of original Web series and entertainment content -- NBC Universal Digital Studios --- shows two main problems that exist with a Web-only strategy. First, executives at digital studio within the studio system often have advertising or marketing experience, but sometimes little experience with creative content, TV production and leading a content strategy across platforms. Second, there's a problem with the emphasis on original stand-alone content for online audiences only. The benefit of a "real content" strategy when approaching digital platforms. While another studio closing its digital and Web video division is never good for the industry, in some ways it's a "shot across the bow" for digital distribution platforms, and other independent and studio-backed digital, and traditional, studios to co-develop sustainable business models for the financing, and recouping investment on original multiscreen content. The new strategy by Comcast, at first glance, seems to be a market-based one: develop web and digital entertainment that complement current broadcast TV shows, and existing franchises and content. This move further reflects the realities of the industry: lack of development and a consistent and reliable financing structure, along with poor understanding of platforms that are buying. Multiscreen content development - Content, and revenue, everywhere?: The key that has been missing by many studios for the development of multiscreen content for digital, and or TV platforms has been that not enough of it is "complementary," and in many cases, ancillary. There have been many lost opportunities for broadcast networks, studios, and their strategic partners, to exploit existing content and entertainment brands on emerging platforms, but surprisingly it took this long for Comcast, and many others, to take a measured, business approach to content strategy that recognized content should be supportive and complementary of on-air programming. Warner Bros., for example, produced an original web series to complement the launch of a new "Mortal Kombat" game, through Machinma's s YouTube channel, resulting in millions of views and strong brand engagement. Another digital stand-out is Sony's digital hub, Crackle, which, to cater to international markets, and U.S. online audience growth, is developing half-hour original digital series, embracing sustainable, and tested, business models around longer-form digital content. In all strategy and execution, the key is engagement. It should provide audiences with additional content that is engaging, unique, and innovative, so that the experience is simultaneously available across platforms. Does your content and story translate to other platforms? For example, games, with good content or story, can deliver more engagement. Social games can be a cost-effective way to enhance your content on new platforms. Augmented reality games (ARGs) of TV content have been shown to increase ROI and viewership exponentially. The numbers show that over 86% of U.S. TV audiences are using smartphones, tablets, etc. -- while watching TV content. Studios and content creators need to be aware of and focus on developing content that, when the content allows it, embraces a "second-screen" focus, and can be viewed and enjoyed simultaneously on multiple screens and devices. Rather, as a stand-alone Web series, that can and does cannibalize from where the primary revenue is generated: the TV. One good examples of a successful "second-screen" strategy and engagement is "Glee"'s game app, "Biggest Gleek." The game does not cannibalize from the TV show, but pushes content through a social game, one that reward fans and drives ancillary revenue by selling concert tickets, all within the app. Another strong example is "Dexter"'s ARG, which complements the TV series, through a "story-build." It all comes down to creating a "Next Media" content strategy and understanding that the "New Generation" use, watch and engage with content on all platforms simultaneously. Going forward, Web video, and "second-screen" content, need to be considered and treated as part of a network or studios overall content strategy, and modeled as complementary to the TV's main-screen content. When one door closes, another opens, so content creators, distributors, and financiers need to be on the same page to see that a huge opportunity, if executed properly, is right around the corner.