Commentary

Follow The Money To New Platforms

It is an overwhelming -- but critically important -- task for companies to effectively sift through, analyze and take action on the relentless torrent of data available on the Internet. 

Data points can underscore larger trends that companies must wisely and bravely embrace, even if it means making radical change. The tedious process of filtering and leveraging salient information is hardly conducive to our always-on, short-attention-span existence and limited corporate resources.

So what's a data-fatigued media-related company to do? Make contemplating and mapping change a team sport. Start a running list of compelling data points contributed by employees from various disciplines, levels and businesses that post their comments. The live stream becomes a springboard for proposals, action and change. Punching through the information clutter and being part of the solution can be empowering.

Here are some insights on recent data points to jump-start your effort:

advertisement

advertisement

*Consumers are spending the equivalent of a monthly car payment, or an average $185, on mobile phone, Internet and pay TV to stay connected during the recession, according to the Yankee Group's new Exploring the U.S. Anywhere Atlas. Bundled services that support the cherry-picking of content and service win hands-down, according to the study of more than 14,000 U.S. consumers' communications habits. "Start preparing for TV service without content," Yankee warns. With consumers now spending fewer minutes watching video on television than they do online, operator bundles should focus on broadband Internet and mobile.

*Consumers have downloading more than 4 billion Apple apps to date. Apps are the new currency and a way to make sure everyone gets what they want and everyone gets paid. (Apple's already paid $1 billion to developers.) The iPad isn't the only catalyst. There was a one-day pre-order surge of 600,000 iPhone 4, where Apps are all about utilities and games, not video or print content.

While Apple is making good on its de facto a la carte, shared-revenue approach, Google is still dancing around micropayment issues The difference between talk and action? Mobile apps for pay-per-download content and services will more than triple into a $32 billion industry by 2013, predicts Juniper Research.

*Amid the privacy brouhaha around social media, Facebook churning nearly $1 billion in annual revenues and MySpace's slow death comes the prediction from Webtrends analyst Justin Kistner that social media will peak in 2012. Connections alone are not enough; it's what you do with them. The focus will shift from adoption to refining relevant services and data.

The Council for Research Excellence's Video Consumer Mapping Study suggests there is room for improving our use of connected media in virtually every aspect of our daily lives beginning with education, where only 4% of adults consume media while engaged in some form of learning. Only half of adults consume media while shopping. Using the broadest, most interactive definition of media, the possibilities for delivering and extracting value seem endless considering that a majority of mobile video users are adults age 25 to 49.

* The Internet is poised to overtake newspapers as the second-largest U.S. ad medium by revenue behind television, according to PricewaterhouseCoopers' Global Entertainment and Media Outlook. Then why are TV broadcasters reveling over the partial recovery of their on-air ad spending? Although TV stations are expected to grow their online ad revenues 21% to $1.4 billion in 2010, according to Borrell Associates, it may not be enough to stay a step ahead of trends.

A new report from eMarketer says the online share of local ad spending in the U.S. will increase from 14% this year to 25% in 2014. Broadcasters continue to lag in local mobile ads, where businesses are tripling their marketing spend on everything from electronic coupons to personalized on-the-go shopping. Mobile advertising will quadruple to $1.6 billion in 2014, according to PricewaterhouseCoopers.

Online advertising, excluding mobile ads, will expand to $34.4 billion by 2014. To fund video advertising, the biggest growth area in the online space, many marketers are shifting out of traditional media - nearly half of that from television, eMarketer notes. Bottom line: Media companies better follow the money.

5 comments about "Follow The Money To New Platforms ".
Check to receive email when comments are posted.
  1. Michael Goodman, June 21, 2010 at 1:30 p.m.

    If you are going to pull data some effort should be made to check to make sure the data points you pull make sense and that they are correct.

    For example, "start preparing for TV service without content," Yankee warns." What exactly does this mean? Should we start preparing for consumers to watch snow on their TVs? That doesn't sound very entertaining.

    This is then followed up by the following statement. "With consumers now spending fewer minutes watching video on television than they do online, operator bundles should focus on broadband Internet and mobile."
    If we look at Nielsen's 4Q09 Three Screen Report we see that P2+ spend on average 153 hours a month watching TV compared to a little over 3 hours watching video on the internet.

    Pulling faulty research is not a good way to impress the bosses.

  2. John Grono from GAP Research, June 21, 2010 at 8:34 p.m.

    I couldn't agree more with your comments Michael.

    The worrying thing is the proliferation of pundits who regurgitate such "research reports" because it suits their agenda without stopping to apply common sense and question what proportion of people do I know that watch video on a computer more than they do on their television.

    I am a total computer geek media researcher and it is probably less than 10% of my viewing time. I know you should never use a sample of n=1, but the point is apart from my friends working in online digital video I know of no-one who does, and my circle of friends would be favourably biased towards online video.

  3. Joe Jacobs, June 22, 2010 at 10:53 a.m.

    If people are now spending more time watching video online than they do on television, how are DirecTV, Dish Network and all the cable companies keeping their doors open? Ditto the flatscreen TV manufacturers?

    Last September my 27" Sony TV died so I did some research and wound up with a 42" Panasonic Viera Series plasma screen TV to replace it. After a season of NFL Sunday Ticket in HighDef, the thought of watching anything over say... 10 minutes in length on a far smaller computer monitor or laptop makes me physically ill.

    I'm pretty sure I'm not alone in this experience, so where are they getting their data in order to make that first statement above about the net vs. TV viewing time? Their sample selection might be a little off...

  4. David Schneider from Tribune Television New Orleans, June 22, 2010 at 5:47 p.m.

    I also would like to know the basis (data) for the statement mentioned in the other comments: "With consumers now spending fewer minutes watching video on television than they do online."

    I took a look at the recent 1Q2010 Nielsen Three Screen Report and it reports even more television viewing than the 4Q2009 report - nearly 159 hours per month. This is compared to about 3 hours watching video online and 3 hours watching video on mobile.

  5. David Scardino from TV & Film Content Development, June 23, 2010 at 2:18 p.m.

    Michael, John, Joe, David... You all are obviously totally out of date as proved by your basing your opinions on solid FACTS as well as your own experiences!

    Don't you know the reigning m.o. is to go with the hype irregardless of the facts...?!?! Get with the program, folks.

Next story loading loading..