Commentary

A Canoe Venues Commentary: Less Booty for More Bounty

  • by , Op-Ed Contributor, February 24, 2009
The visual: three cowboys sitting at a bar. The one furthest to the left is wearing a hat that is eight times the size of his head. He is staring straight ahead. The other two cowboys, at a distance to his right, are looking in his direction.

The caption - as spoken by the cowboy situated on the extreme right of the bar: "All hat and no cattle, but my God, what a hat."

This New Yorker cartoon sparked my thinking about Project Canoe's upstream sojourn since the venture sprung a leak to The Wall Street Journal - September 2007 - about the cable systems operators' best kept, year-old, maybe 18- month-old secret, Project Canoe.

The Leak

The article stated that the industry effort led by Comcast and Time Warner - though we suspected that other operators whose names began with a "C" were involved - reflected the operators' recognition that they're all in the same boat - a canoe per chance, and must standardize the interactive technology in the thousands of cable systems throughout the country - the paddle metaphor, we imagined - in order to garner a greater share of the national ad dollars - the current(cy) "that flows almost exclusively to TV networks." Then again the codename "canoe" could simply have been chosen to reflect the operators' sensitivity to diversity and ethnicity, and therefore is a homage to the American Indian.

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The article stressed a couple of directional leanings:

  • Create a national ad sales organization to sell national ads or determine whether it could use existing industry bodies.
  • Standardize the technology so that it is scalable.
  • Showcase the power of interactive advertising at a number of industry events.

    Multiple Sightings

    By March 2008 there had been a spate of articles written about the mysteriously shrouded Project Canoe, a subterranean, though visible, cable systems operators' joint venture that surfaced periodically, in trade periodicals only to surreptitiously submerge again until the next press sighting, which have been sporadic ever since. Perhaps Winston Churchill said it best (October 1939): "I cannot forecast to you the action of the Cable Industry. It is a riddle wrapped in a mystery, inside an enigma but perhaps there is a key. That key is the Cable Industry's national interest."

    Around that time, in early March, my boss, David Verklin (Carat CEO), had emailed me during the 4A's Annual Conference, where I was presenting a keynote on TV Addressability, to share with him what I knew of the "Canoe." In hushed tones I relayed that my sources had informed me that he had been approached by headhunter Spencer Stuart, whose mission was to seek out a chief navigator. David asked that when I arrived back in New York I should get on his calendar so we could discuss a Canoe-ian strategy.

    I remember after disconnecting from our call, pondering the Project's nomenclature and purported missionary purpose: was the selection of the code name Project Canoe meant to emphasize the cable operators' cooperative spirit, paddling for the common good of its members to sell more commercial inventory to national advertisers by enabling national advertisers - through the deployment of applications and measurement of said applications - to purchase customized ads and interactive ads across the companies' systems. And wasn't there a more descriptive, snazzy nomenclature available that would have encapsulated both esprit de corps and modernity. Isn't the visual of two Native Americans sitting in a canoe on a breezeless summer's day lackadaisically paddling, though in coordinated strokes, somewhat of an anachronism.

    The Crackler of Coaxial

    By pre-close April 2008, David Verklin was offered the position of chief paddler. The industry waited with baited breathe until July, when he would be returning from vacation, to assume the canoe helm. The man who masterminded the "Crackle of Change" was now in place to offer his inaugural strategy: the "Crackle of Coaxial."

    The Late Fall River Show: The First Hundred Days

    By late Fall 2008, David Verklin and fellow paddlers were gliding through the industry events circuit espousing the Canoe-ian goals (immediate and futuristic) and aspirations:

  • Reaffirmation of the choice of name, its emphasis on cooperation among constituencies and speed in recessionary currents as well as three potential lines of business: addressability, data and interactivity.

  • Objectives' pronouncements:
  • Allow advertisers to interact directly with television consumers.
  • Generate incremental revenue streams for programming networks by enabling new forms of inventory, such as polling/voting and requests for information.
  • Turn set top box data into currencies for advanced TV applications.
  • Product deployment roadmap over the next 24 months that included:
  • Zone addressability or creative versioning that will enable advertisers who purchase national cable networks to broadcast different commercials in all 2,200 cable zones based upon the matching of privacy protected datamining informatio.
  • Interactivity, such as request for interaction (RFI), that allows viewers to push a button on their TV remote to have, as an example, a brochure mailed to them.
  •  

    Post-2008 Commentary

    All of us wish Canoe speed and success. The media community needs more accountable metrics, invigorating interactive TV applications and cooperation between platforms, technologists, and software developers in order to engage consumers in the evolving televisual realm. Unfortunately, the one organization that seems poised to bring these goals to fruition has made little material impact, in my opinion, since its private and public inception. Noted accomplishments:

  • Project Canoe rechristening as Canoe Ventures.
  • Press coverage of executive staff expansion more ubiquitous in the trades than meaningful product deployment i.e., recent hires as covered by MediaPost last week: vice president for product development for data initiatives, vice president of creative versioning, vice president of product development for interactive products.
  • More consensus striving "Chiefs" than "Indians" syndrome.
  • Naming of its white label technology platform: the Common Advanced Advertising System (CAAS).
  • Morphing of an efficacious addressability example from sending Pampers ads to households that have recently purchased baby strollers to "the true promise of addressability is to put dog food ads just in households that own dogs."
  • First product introduction: zone addressability or creative versioning.

    I would like to spend a written moment on this proposed first product. National Cable Communications (NCC), which is owned by the same operators that are stakeholders in Canoe Ventures, has been exploiting this opportunity with auto manufacturers for years. The problem they have encountered is that there are rarely enough creative versions to successfully exploit the application. Perhaps with Visible World's creative versioning model this can be overcome. Secondly, the media community really does not know that the 2,200 cable zones are individually homogenous by nature. Zip codes closer; households better yet; individual TV/set top boxes bingo. Privacy-protected, mathematically addressable technology from Invidi, with its ability to match advertisements to digital set top boxes and individual television viewers regardless of the program viewed, will certainly help achieve that most important of goals. Utilizing Experian and Acxiom third party data to enrich addressability, a definite plus. Creative developers Ensequence and Alcatel-Lucent are waiting in the wings to build user interfaces that are attractive, functionally intuitive and seamless in the eyes of the TV viewer. And hopefully, dialoguing with Rentrak, TiVo, TNS, and TRA's unique connection of viewing to product purchase as well as Navic's Admira historical set top viewing reportage and buying mechanism will facilitate better comprehension of viewing behavior and lead to exploitable discovery that will enhance all other endeavors.

    That's the easy part of the equation. My biggest concern is the sales concept. If I understand the maneuver, Canoe will license its technology to the national cable networks, who in turn will be able to interactive-size their national commercial inventory, and in turn, will sell the interactive application value proposition to the advertising agencies and their clients. Isn't this a variation on an old unsuccessful theme.

    Historically, the cable operators have not enjoyed much success in convincing national advertisers and their agencies to engage in their interactive/VOD deployment other than garnering monies from "trialing". Oftentimes the cablers have been hard pressed to demonstrate the value proposition to create a sustainable business model. Now, these same cable representatives will instruct national sales organizations, who are noted for their expertise in selling spots and dots - not interactive applications, on how best to position the applications.

    These national sales organizations, in turn, will be responsible for interfacing with the ad folks. So not only will they have to sell in the value proposition to a resistant community - "been there, done that" - but also, figure out how to navigate the agency infrastructure to hopefully arrive at a possible decision maker. Is it the traditional media planner, the network television buyer, the local television buyer, the online planner, the online buyer, the account directors (online and traditional), or in some cases, a designated "strategist/new media-est", who has no budget but is responsible for championing new media within the agency - like a Sacajawea, the Shoshone Indian who guided and acted as interpreter and negotiator for Meriwether Lewis and William Clark on their exploratory expedition through North Dakota to the Oregon coast and back. Ah, the canoe metaphor is starting to make sense. And then, of course, there is pricing. Another time.

    We're all rooting for you. A rising tide lifts all amphibious platforms, applications and concepts. But we strongly recommend less booty and more substance to ultimately garner more bounty.

  • 4 comments about "A Canoe Venues Commentary: Less Booty for More Bounty ".
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    1. Sheldon Senzon from JMS Media, Inc., February 24, 2009 at 2:57 p.m.

      Canoe Ventures is really a true breath of fresh air for those of us who have been waiting patiently to use and measure TV's performance as it relates to zeroing in on best prospects. True, there are many hurdles before it, I'm confident all concerned will learn to work together and play nicely. National advertisers are learning what it means to measure ROI; the ability to use the powers of TV will only enhance their ability to communicate and measure performance. So, what's old is new, who would have thought the basic DRTV model would enjoy a second life, in the end it's all about accountability and ROI.
      Let's not get overly concerned with how everyone plays together, in the end we're all business folks, sellers and buyers of advertising. The faster we get there the better, these less than friendly times will be with us for a long time.

      On a personal note, I've known and worked David Verklin a long time, my money's on him.

    2. Tv Missionary, February 24, 2009 at 8:53 p.m.

      Really informative. Call it semantics but I think there's more to the obstacles than meets the eye. Creative versioning is one obstacle to TV segmentation/addressability. It's a tactical tool to meet a strategic objective to get more bounty for less booty. Segmenting the TV marketplace is also a tactic. A media solution who's means are to achieve the same end. Tactics shouldn't be prerequisites for tactics. That kind of thinking is indicative of an industry who's taking way too long to get things done. Where are the real strategists? Write a good one (whoever you are: client, agency) and your tactics will become easier to execute.

    3. Dean Procter from Transinteract, February 25, 2009 at 4:19 a.m.

      I wish the intrepid Canoeists well. To succeed, the following are just some of the issues.

      The project must get:
      all the cable operators to buy into the value proposition,
      enough advertisers buying into it to amortise the expense,
      the cable operators up and running with whatever new technology they have to buy,
      the viewers equipped with the appropriate equipment (buying into it?),
      and the viewers educated in its use.

      The potential perils of direct communication between advertisers and viewers needs some supervision. What are the contact rules?
      The viewer must trust the interface with their privacy and perhaps if they choose to buy, their money.

      How does a viewer action an instant buy?
      What are the fraud controls?

      What does it cost the advertiser for:
      - a response ie. remind me later, i.e. in or near a shop,
      - send me a tailored targeted relevant brochure, email, presentation, or call me,
      - arrange a test drive, or better yet arrange a test drive with a pre-qualified buyer with the contracts in place beforehand for a possible quick agreement and seamless sale.
      - to make an instant sale.
      - a sales transaction completed and the money in the advertiser's or even the local retailer's account?

      Does the advertiser still have to deal with every cable network/station on a new level? Ideally no.

      Does it work for:
      Cable and broadcast free-to-air TV? Radio?
      For a viewer at a friend's house watching someone else's cable network?
      Wherever the viewer sees or hears the ad?
      In a cinema?
      Watching a DVD?
      For product placement?
      For MTV instant music to me,
      and FashionTV, can I buy tailor made off the catwalk via TV?

      In Australia we have an expression:
      "Up a ???? creek in a barb-wire canoe without a paddle". I'd say they don't even know what creek they're going up yet.

      The first batch of obstacles can be overcome by a system not requiring the networks to do anything other than what they do now, simply transmit, and not require the viewer to buy into it - ie, free. Done.

      The second batch can be overcome with a new approach to using existing technology. Done.

      The rest have been overcome using ingenuity. Done.

      Unless Canoe is at least that far up the 'creek', they probably have as much chance as getting up a creek in a barbwire canoe without a paddle.

      We are already well past this.

      It needs a much lower level of critical mass.
      Advertisers will either love it or hate it, until only those who love it survive.
      Viewers will love it if it is done properly and with sensitivity to their concerns.
      Governments will love it stimulating the economy, but perhaps not the voting part. Imagine a poll every night before dinner? Or perhaps after dinner if you want more yes answers.

      What would you do?
      1. Buy at the Upfronts and 'interactivate' the whole ad space and resell it.
      2. Do a deal with the global brands and interactivate the whole TV radio and cable space without seeking the agreement of the networks? It's not like they'll stop broadcasting, or refuse ads.
      3. Do a deal with the networks and the barbed wire Canoeists?
      4. Buy some poor networks and add value or is that value ad?
      5. Forget the whole idea?

      We live in interesting times.
      One thing I'm certain of is that Brands may just be worth some serious money in the near future. I'm bullish on almost everything but brands.

    4. Cody Crane from CCH, March 6, 2009 at 1:48 p.m.

      Away, Away!

      Who is this crotchy old man Mitch Oscar, who sits on his Olympian Throne, but complains like an old man returning soup at a deli. Redacted from his self styled time line was Mitch's genuflecting for a Canoe job. And when denied he turned round like the Mourning bride rejected in love.
      "How sharper than a serpent's tooth it is
      To have a thankless child! Away, away!"

      -CC

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