TangledMESH

OTTCon East: Timing and Trends

OTTCon East was buzzing with energy and excitement last week. The show was brimming with OTT innovators and vendors, as well as telcos, content producers and broadcasters—all searching for answers to some of the industry’s biggest questions.

So what were they saying? Here’s a look at some of the top points of discussion:

Timing (Connected TV). There was a lot of debate on when all this OTT content and interactive TV technology would actually become commercially available to the consumer in a seamless home-viewing experience.

Some said it would be 5 to 8 years, while others argued it’s already here. From my point of view, the “here now” crowd is really saying the technology is available now, but the market and the service providers that control it are moving at a slower pace. Question is: How long can incumbent SP’s hold back the flood?

Consumers. Many are betting on the next wave of consumers. It was interesting to hear several speakers talk about “cord cutters” almost as if they needed to reassure themselves that the trend is real. Unfortunately, it’s not (at the moment, see: http://shar.es/miuNY).

Point being, many in the space are making wide, generalized assumptions on both market trends and shifts in consumer behavior (e.g., some making the point that the expectations and content consumption habits of the 18-24 crowd will eventually lead to explosive adoption of pure OTT video services as those consumers move into adulthood).

I’m not saying they’re wrong—just pointing out that many are stating it as fact when it’s actually only prediction.

Google TV. With the recent announcement of the Google/Sony/DISH/Intel (aka Google TV) solution, many were asking if this was a positive or negative development in the OTT space. Will Google dominate the market, or will it accelerate it to the benefit of multiple OTT players?

From the show, however, one thing is clear. The time is now for telcos, content producers and broadcasters to forge the right alliances and go for that long-term win.

So what were they saying? Here’s a look at some of the top points of discussion:

Timing (Connected TV). There was a lot of debate on when all this OTT content and interactive TV technology would actually become commercially available to the consumer in a seamless home-viewing experience.

Some said it would be 5 to 8 years, while others argued it’s already here. From my point of view, the “here now” crowd is really saying the technology is available now, but the market and the service providers that control it are moving at a slower pace. Question is: How long can incumbent SP’s hold back the flood?

Consumers. Many are betting on the next wave of consumers. It was interesting to hear several speakers talk about “cord cutters” almost as if they needed to reassure themselves that the trend is real. Unfortunately, it’s not (at the moment, see: http://shar.es/miuNY).

Point being, many in the space are making wide, generalized assumptions on both market trends and shifts in consumer behavior (e.g., some making the point that the expectations and content consumption habits of the 18-24 crowd will eventually lead to explosive adoption of pure OTT video services as those consumers move into adulthood).

I’m not saying they’re wrong—just pointing out that many are stating it as fact when it’s actually only prediction.

Google TV. With the recent announcement of the Google/Sony/DISH/Intel (aka Google TV) solution, many were asking if this was a positive or negative development in the OTT space. Will Google dominate the market, or will it accelerate it to the benefit of multiple OTT players?

From the show, however, one thing is clear. The time is now for telcos, content producers and broadcasters to forge the right alliances and go for that long-term win.

Will the Real New Media Broadcaster Please Stand Up

Last week I had the privilege of presenting a keynote speech to the AMA Tampa Bay Digital Media SIG event. The focus was video -- and how New Media is changing traditional broadcast models. It sounds fairly straight forward, right? But when you think about it, the components or framework for monetizing content hasn't changed; the real change is in the new-found ability of all stakeholders to take on new roles in the process.

At the event, I introduced a concept I like to call the "New Media Framework," which illustrates how similar old and new broadcast models are. "Monetization" is one of today's top buzz words. However, traditional broadcasting and new media are built on the same principle: generating sustainable revenue from content. The 3 key components to successful content monetization are: Content, Audience, and Sponsorship/Advertising.  When all 3 are clicking, you have monetization. NOTE: I intentionally left out paid content, as it has its own dynamics.

Within the traditional media framework, each participant is rather fixed in their role. Content producers make content and sell it to broadcasters. Audiences passively consume it. And, sponsors/advertisers place their 30- or 60-second spots in targeted media outlets. Again, it's all designed as one-way communication, hence the term broadcasting.

So what's "new" about New Media. In short, emerging technology, the Internet and social media platforms have unleashed the true potential of the traditional broadcast model, allowing flexibility. Here are just a few examples of new broadcast strategies where roles have shifted resulting in monetization:

• Audience acting as broadcaster: YouTube personalities. The user generated content (UGC) craze has been fueled by social media portal sites where anyone can publish/distribute content. Individuals like Dave Days, YouTube Fred and LonelyGirl15 have all built significant audiences with nothing more than a hand-held camcorder and their computer. Even though it's challenging to reach maximum monetization (see: Online Video, Nothing's for Free), strong content and established audience creates sponsor demand. Specifically, product placement and in-video branding, enabled by companies like HitViews (started by YouTuber Caitlin HIll) has created real revenue for these content entrepreneurs.

• Content producers acting as broadcasters. A great example of this is Endavo Media's client American Powerboat TV. Here is a traditional content publisher that continues to sell content production services to traditional media brands, but realized they were leaving money on the table. With their own Internet TV channel, AmericanPowerboat.tv has created a niche audience of enthusiasts with sponsorship driven deep into the content. In effect, they have become a broadcaster, with all 3 pieces of the New Media Framework under their control.

• Sponsor acting as broadcaster, or as its become known, branded entertainment. Arguably, this has become one of the hottest trends in marketing. It can take many forms, from concert sponsorship with an online component (recent U2 on YouTube event), to serialized webisodes like IKEA's acclaimed "Easy To Assemble," and/or UGC contests like Hienz Ketchup's ongoing "Top This TV Challenge." In all cases, the flexibility of the New Media Framework allows big brand marketers to create/aggregate content, deliver it, promote it and wrap their brand around it. Again, controlling all 3 pieces of the model.

These examples are meant to demonstrate the opportunity that exists for multiple groups to succeed within the New Media Framework. Now, no one is relegated to a single role. However, taking on these new roles can mean venturing into uncharted water for some. If you lack the ability to fill the content production role, or you're not a strong marketer, you'll need to find partners that are and forge relationship that can deliver on all 3 phases of monetization.

Look at the graphic above, and remember: shoot for the middle.

Digital Media - Content, Advertisers and Technology Trends

AMA Tampa Bay - Digital Marketing Conference

On March 6th, I will be speaking at the America Marketing Association (AMA) - Tampa Bay, Digital Marketing Conference. There's a great lineup of speakers, all focused on digital media and emerging marketing strategies. Follow @AMA_Tampa_Bay on Twitter.

Specifically, I, along with Endavo Media EVP/CMO Pete Contardo, will be presenting on how to monetize video content online. We'll be providing specific use cases, including some joint discussion with one of Endavo Media's partners, Tampa Digital Studios. The session will cover ad/sponsoship, subcription and pay-per-view, as well as the technology requirements needed to support these emerging business models.

If you want to join us, please register here. A full-day pass is only $175... and worth every penny. Other speakers include Albert Chen from Google, Deana Goldasich, Peter Radizeski and many more.

The event is very participator, so bring your questions and opinions. See you there!

Social Media Marketing: Consumers Weigh In

A new study by Cone (view press release here) provides a glimpse into how social media marketing is perceived by consumers. The results bode well for those of us who've spent the last several years trying to convince brand marketers, agencies and C-level execs on the potential of social media focused initiatives.

The report revealed nearly "60 percent of Americans interact with companies on a social media Web site, and one in four interact more than once per week." When asked about specific types of interactions, Americans believe:

• Companies should use social networks to solve my problems (43%)
• Companies should solicit feedback on their products and services (41%)
• Companies should develop new ways for consumers to interact with their brand (37%)
• Companies should market to consumers (25%)

The Cone study went on to explain the effectiveness social media marketing programs seem to have in connecting marketers with hard to reach groups like online males and the highly sought after (18-24) youth market. Additional insight is provided on what consumers feel the role of companies should be within online communities.

It is worth noting the drop from nearly 50% to 25% when the question is "solve problems/solicit feedback" vs. "marketing to." This is important. It means marketers have to understand this is a different medium with a different set of "engagement rules." It's not a static banner ad or a passive tv spot, it's interactive. In these environments it's critical that marketers approach online communities with transparency and a commitment to building relationships beyond the sale. Otherwise you risk alienating a good portion of your potential audience from the start.

Download the full report summary here.

Content as a Catalyst to Greater Things

We all know content is king, but how do you get the greatest value for your content? What's the best way to leverage it in the growing social media environment.

The way companies think about their content, especially companies built around transactional purchase models, have to begin rethinking where content assets fit in their long-term strategy. Chris Anderson did an insightful piece on this challenge for the March issue of Wired.

One of my current clients is an established online continuing education provider with a strong niche in the building contractor, engineering and architect markets. The company makes its living  selling courses to professionals seeking a hassle-free way to maintain their license requirements and build their knowledge in the process. The compnay also recently acquired another niche market provide - this time healthcare - with its own extensive library of training content.

Both brands operate a classic transactional based business model. Customers select content/courses, pay for it, then consume it. Many times these users only utilize the site once a year, and in somecases every other year. That spells low engagement. This makes content the heart of my client's business. They have spent years developing some of the best courses in the industry and have been rewarded with steady revenue growth.

But given the shifting sands created by emerging social networks, especially those in niche markets, my client and many other similar companies are in a great spot to leverage their library of content to build something greater... something social, scalable and less transactional but with potentially greater market value.

That's right, give the content away for free. Or at least some of it. A loss leader if you will; something consumers in your target audience will find valuable enough to give something of themselves to access. That something being, of course, time on your site, adoption of  your network, word of mouth marketing, et al. And, yes, even transactional purchases for your most valuable and desired content.

This presents new monetization opportunties that can be scaled quicker while attracting major brands eager to reach the network you've now created.

The challenge of course is how do you migrate to this type of model and maintain revenue in the process? Well, it's tough but not impossible. With the right approach and commitment to testing new methods of engaging with customers beyond the commercial transaction, Web.1 companies can re-position themselves within the Web.2 landscape and become first movers in the niche markets they already dominate.

The Times They Are a Changin'

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Social Marketing - How to Avoid a Tangled Mess

TangledMESH is all about unwinding the complexities of online customer acquisition, social media and word of mouth marketing, then working with clients to reconfigure their campaigns and get the most from Web 2.0 investments.

This report, Social Media Essentials by Shift Communications, is one of the most comprehensive overviews of the multiple methods and techniques being utilized by today's savvy marketers and public relations teams. It provides the backdrop to extend your understanding of how emerging social marketing techniques can be utilized, what essential user benefit is provided and a high-level explanation of the underlying technology.

Without a firm understanding of social media terminology and the enabling platforms that support these interactive communities, it's easy to create a total mess of your online strategy. A quick read over this material can help ensure your plan results in a strategic mesh, returning measurable and targeted communications value.

Interactive Marketing Channels To Watch In 2007

Access report here: source Forrester Research

User Generated Content - Protecting Consumers

Access report here: source Pew Internet & American Life Project