Cynopsis: DIGITAL
03/26/12
Good morning. It’s Monday, March 26, 2012, and this is your first early morning digital briefing. If you would like to read this or any other Cynopsis editions online, click here.
Among the six founding partners of the Digital Content NewFronts, Digitas plays a unique role. With it being the only agency, Digitas offers a valuable perspective for an event that is designed to connect brands with content creators and providers. In my Q&A with Colin Kinsella, CEO/North America, Digitas, Kinsella discusses why fellow agencies should mark the DCNF on their calendars, from the opportunities provided by the event itself to the growing importance of high-quality, digital video programming within the larger content industry.
From an ad agency’s perspective, why should they pay attention to the Digital Content NewFronts?
The latest figures from comScore show that in January 2012, nearly 40 billion online videos were watched by 181 million U.S. Internet users. While online video ad spend represents a smaller slice of the overall online pie, it is the fastest growing, expected to surpass $7.0 billion in 2015. This demonstrates tremendous opportunity for content creators, distributors and advertisers. The time to leverage this trend on an industry level platform is now. The Digital Content NewFronts (DCNF) answer this call for brands, agencies and their target consumers.
What sets the DCNF apart from the traditional upfront?
Two key differentiators – format and focus. First, format. The DCNF is focused on native digital video content. It’s very specific. Second (and related), focus. The DCNF aims to establish urgency and focus on high quality, original online programming.
And these differentiators are expressed in the DCNF mission statement:
“to shape a new and practical marketplace for connecting the wealth of native digital content with brand marketers and their media and marketing agencies. In other words, a ‘newfront’ where ‘brands, meet content.'”
In terms of distribution and reach, here is my perspective as a consumer of both broadcast (eagerly awaiting Mad Men) and online video (Battleground series, Arrested Development revival): TV programming continues to have massive appeal and programming loyalty. It provides reach, and tailored distribution opportunities. TV is well-established with strong pipelines and players.
Digital video is different. We are just getting a peek into its potential, knowing that there is a large mass of talent, distributors, producers and creators eager to get “air time”. It’s an exciting moment for the industry where we can define a standard and focus for this digital video marketplace as it rises in prominence and helps better connect brands with consumers.
In your opinion, is digital video advertising the most effective way to engage and interact with a viewer? If so, what puts it above say interactive display ads? Does it risk the tendency of being more obtrusive, or is it more organic when paired with video content?
I would not classify any one format as THE most effective. I don’t believe there is any one format or medium that could command this characterization without first having a clear business objective to help measure “effective”. If the goal is 20% lift in sales, this could be any combination of shopper experiences, social media and original online video plus a cradle of paid media. If the focus is customer loyalty, perhaps the strategy focuses on customer relationship management, technology and data deployment. The spectrum is as wide or as narrow – as the objective determines. And these objectives are unique. In other words, as cliche as this sounds, there simply is not one answer. However, I will state that as more dollars are invested in high quality, online serial programming, we can anticipate that consumers will be increasingly attracted to the viewing experience. Every one likes a strong story, well told.
A big movement within the media and content industry is this transition to multiple platforms. Is the production of exclusive, original content for the digital arena a mere extension of that, or something more important because it’s not just an additional way for viewers to watch something?
Digital video delivery has been transformed due to the flexibility, multiplatform accessibility, and participation that the web offers. Digital video is a multi-device with on-demand interaction experience. Original online video doesn’t reside exclusively in a living room. It’s iterative. It’s flexible in terms of longer formats or snackable bits. And it travels. In fact, the rise of mobile is undeniably transforming how digital content is delivered and consumed – eMarketer estimates that by 2015, there will be 78 million mobile video viewers.
In Digitas’ opinion: What’s the biggest thing driving the growth of digital video consumption?
Mobility, consumer behavior and, directly related demand (and urgency) are driving the growth of digital video.
We are entering a post-PC era, and people actively “live” in the Culture of Mobility. With this come certain expectations: on demand is in high demand, and across devices.
Demand (and therefore, urgency): More and more consumers across all age groups are watching content online. 181 million U.S. Internet users watched nearly 40 billion videos of online video content in January (comScore). This year, nearly 71% of U.S. Internet users were online video viewers this is estimated to jump five percent by 2015 (eMarketer). Digital video is also increasingly a regular part of a consumer’s day – the industry saw a 62% increase in daily online video viewership amongst U.S. Internet users from 2010 to 2011 (eMarketer).
And as a result, dollars are flowing aggressively into the digital space. By 2015, video ad spending will reach $7.1 billion, up from $2.16 billion in 2011 (eMarketer).
DirecTV is rolling out an update to its iPad app that will enable viewers to stream some VOD content away from the home, but not live TV just yet, reports Engadget and Solid Signal Blog. Currently, available programming includes content from premium movie channels such as HBO, Starz and Sony Movie Channel, as well as DirecTV’s own Audience Network. Other features include “What’s Hot,” which lets users know what their Facebook and Twitter friends are watching; and integration with social check-in service Miso. Engadget reports that this expanded offering, dubbed “DirecTV Everywhere”, is under beta test (possibly explaining why there is only a limited number of available content); will also eventually be available on DirecTV.com; and will be fully launched at some point in the late spring/early summer.
Catherine Reitman’s film review show, Breakin’ it Down, has been added to the Revision3 network. Catherine Reitman (the daughter of film director Ivan Reitman and sister of director Jason Reitman) will candidly and humorously deliver weekly film reviews and recommendations to visitors of the online video network. Before being picked up by Revision 3, the series started out on YouTube through its own channel. One of the series’ first episodes on Rev3 (and 57th overall) launched late last week with Reitman’s review of The Hunger Games.
Social media marketing firm Vitrue has launched a new Instagram Tab module for its Vitrue Social Relationship Management (SRM) platform, enabling marketers to integrate their Instagram photos within their Facebook pages. The module is embedded within a brand’s Facebook page and automatically pulls Instagram content (which Vitrue says will be “pre-defined by the brand”) into a Tab view. Consumers can then “like,” comment on and/or share the photo with their Facebook friends. Vitrue will also be including a “voting” functionality that will enable brands to launch contests through Instagram photos on their page. Vitrue recently launched a similar capability within its SRM for Pinterest content.
The FTC will be hosting a press conference today in which it will unveil a new framework related to online privacy and data-gathering. Previously, the FTC has endorsed the “Do Not Track” option that enables consumers to choose whether to allow the collection of data regarding their online searching and browsing activities. The 11am ET press conference will be webcasted live here, after which the FTC will host Facebook and Twitter chats to discuss the framework. Coinciding with the announcement, the FTC has also launched a technology blog, where it says it will “talk about technology in a way that is sophisticated enough to be interesting to hardcore techies, but straightforward enough to be accessible to the broad public that knows something about technology but doesn’t qualify as an expert.”
Research In Motion (RIM) will release a beta version of the developer tools needed for its upcoming BlackBerry 10 operating system at its BlackBerry 10 Jam! developer conference in May. Among the toolsets that will be offered to registrants include the BlackBerry 10 Native SDK, WebWorks SDK, SDK for Adobe Air and SDK for Android apps. The company says that developers will also have access to a limited edition of a prototype device: the BlackBerry 10 Dev Alpha. This device is not a smartphone, but rather a prototype that is running a modified version of the PlayBook operating system. RIM stressed that this device is not the final hardware or even the OS. “It’s a device to help developers get started with designing for what’s coming,” it said in a statement.
About 59% of technology experts and internet stakeholders surveyed believe that by 2020, the web “will be stronger than ever in users’ lives,” and that “the open web continues to thrive and grow as a vibrant place where most people do most of their work, play, communication and content creation.” This finding comes courtesy of the latest research from the Pew Internet & American Life Project and is in response to reports, specifically one from Wired magazine in 2010, which have been labeled the web as being on its deathbed due to the rise of apps, as well as the growing use of mobile devices such as smartphones and tablets. When it comes to apps accessed through mobile devices, these respondents believe apps “will be useful as specialized options for a finite number of information and entertainment functions.” In comparison, 35% of respondents believed the opposite of the majority opinion. Pew says that the survey questions were written to generate detailed responses; therefore the answers are not necessarily “a representative measure.”
Almost two-thirds of 18 to 29 year-old women check social media sites while watching TV, according to a survey from Mindshare about women’s social media habits and consumption, as reported by MediaPost. Furthermore, 44% of respondents said that social media is the primary method through which 18 to 29 year-old women learn about breaking news, and almost half are likely to use social media to comment on news and events. The report also indicates an opportunity for marketers to reach women in this age group through social media. Over 35% of 18 to 29 year-old women answered that they would “try a new product based on a friend’s social media recommendation.”
According to the latest research from Strategy Analytics, global LTE phone shipments will grow tenfold from 6.8 million units in 2011 to reach 67 million units in 2012, led by companies such as Apple, Samsung and HTC in what the firm believes will be a breakout year for 4G technology. “Multiple operators and multiple phone vendors will be launching dozens of LTE models across numerous countries worldwide,”‘said Neil Mawston, Executive Director at Strategy Analytics. The countries that will lead this charge toward rapid LTE adoption and growth, according to Strategy Analytics, are the U.S., Japan and South Korea.
Yahoo! has appointed three new independent Directors to its Board: Peter Liguori, who was recently COO of Discovery Communications; John D. Hayes, EVP and CMO of the American Express Company; and Thomas J. McIerney, who is the outgoing CFO of IAC/InterActiveCorp. The moves will be effective as of April 5, 2012. Yahoo! acknowledged its upcoming potential proxy fight with Third Point, which, led by activist stakeholder Dan Loeb, recently proposed its own individuals to be added to Yahoo!’s Board. The company said it was willing to appoint one of Loeb’s choices as well as another that would be mutually agreed upon; however, Loeb declined that offer. “The Board remains open to hearing Third Point’s ideas and to working constructively with Third Point, but believes that appointing Mr. Loeb to the Board is not in the best interest of the Company and its shareholders,” said Yahoo! in a statement.
Meredith Corporation has appointed Jeff Wellington to be its new VP/Group Publisher, Meredith Parents Network. Reporting to Carey Witmer, EVP/Publisher at The Parents Network, Wellington will be responsible for directing and growing ad sales on all platforms, including print, tablets, social media, mobile and more. He will be based in Meredith’s New York offices.
A CYNOPSIS MESSAGE
Cynopsis: Sports Media Awards
Late Submission Deadline: March 30
Awards Event: Summer 2012 (NYC)
Pop Market is a daily deals website that offers exclusive deals on some pretty great collections of music and merchandise on a first-come, first-served basis. According to the site, the sales prices could be as much as 70% off the retail price of that particular offering. The deals begin every weekday promptly at noon ET, and run for a full 24 hours, until the next one begins at noon ET on the following day. This week, Pop Market is offering stuff on Aerosmith, Iggy Pop, Miles Davis, Pearl Jam and AC/DC. Membership to the service is free, so take a look if you enjoy any of those artists.
Later – Sahil
Sahil Patel, Associate Reporter for Cynopsis Digital
03.26.12
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