Week of 7.14.08/Top 5

July 15th, 2008 by Joe Mele

MicroBlogging/Boomers/IPhone/ E-CommerceMustHaves/GooTube

[Please note that I will be on vacation next week so the next blog update will be the week of 7/28]

Twitter Nation: Microblogging is huge, but should anyone care?

When’s the last time you sent a Tweet? If your answer is anything other than “a few hours ago” you need to read this article – because you don’t get it.


Picture: Google Images

‘Generation Buy’ Fickle Yet Free Spending: TV Land Study

Are we just targeting the wrong consumers? Why do we obsess over 20 and 30 year olds when the boomers have all of the cash – and they spend it?

Picture: bullnotbull.com

Apple iPhone 3G: 30-Minute Marketing

I’ve seen it (and I have the phone, so nyah-nyah) and the acting is bad, but it does make you want one. Doesn’t it?!?


Picture: comictan.com

The Red Queen of E-Commerce

What are the 5 must-have features of an etail website? You might not be surprised, but that doesn’t mean you’re doing it.

Picture: Nature.com

Google Push to Sell Ads On YouTube Hits Snags

Poor Google. It can’t monetize YouTube. Will this be its albatross?

Picture: digitalsurgery.net




Other Articles of Interest / Week of 7.14.08

July 15th, 2008 by Joe Mele

Issues of Interest

The Changing Face of the U.S. Consumer
adage.com

Hurry up, the customer has a complaint
boston.com

Text Messaging Huge with Young Adults
emarketer.com

Digital Marketing News

Local Online Video Ads, Dollars
emarketer.com

Survey: More Buyers Expect to Spend Less in Most Media
adage.com

Digital Commerce News

Web entrepreneur plans year-round ‘Black Friday’
bizjournals.com

Online Reviews Sway Shoppers
emarketer.com

New shopping cart fashions a 19% conversion rate hike at Urban Outfitters
internetretailer.com

E-Tail Meets Social Networking
cnbceb.com

Digital News and Trends

Broadband Holdouts Hunker Down
emarketer.com

Nielsen: US leads in mobile web adoption
bizreport.com

Retail and Products

Apple’s iTunes leads the digital music market, but competitors keep coming
internetretailer.com

The Nation’s Retail Power Players
stores.org

Digital downloads’ threat to DVDs prompts Lehman analyst to downgrade entertainment industry
iht.com




Twitter Nation: Microblogging is huge, but should anyone care?

July 15th, 2008 by Joe Mele

When’s the last time you sent a Tweet? If your answer is anything other than “a few hours ago” you need to read this article – because you don’t get it.

Picture: Google Images

Article excerpt: The first thing Amanda Mooney, 22, does when she wakes up in the morning is fire up her laptop. She opens “a crazy amount of tabs” and checks in on her Facebook, MySpace, Flickr and YouTube friends. A self-described “digital native” who graduated from Emerson College in Boston this summer, Mooney contributes her thoughts to her new employer’s blog at Edelmandigital.com, as well as at Americanshelflife.com. She chats on AIM, publicly bookmarks favorite posts on Digg and Del.icio.us. And, of course, she twitters. And twitters and twitters. On Twitter, the service that lets you keep the world abreast of your doings in 140 characters or less, “you post a thought and you never know who is going to jump in and join that conversation with you,” says Mooney. “You sort of forget that it’s a really, really public form of [instant messaging].” She’s reviewed the new movie “Wanted,” shared a dream about standing in line to buy the new iPhone and sent out links to new sites she has found interesting. For Mooney and the million-odd microbloggers out there, no thought, however trivial, goes undigitized. First there was Facebook—where members are able to share instant thoughts or whereabouts with their social network by writing a pithy “status update” (Example: Brian is writing a story about microblogging). Now there is a rash of new self-publishing tools that seem to launch on a weekly basis. In the last few months alone, services like identi.ca, Pownce, and Plurk have popped up. Arguably the hippest is Tumblr. Launched last year, it allows people to subscribe to—or follow—each other’s “tumblelogs” and netted a bit of microfame for the odd vapid oversharer and facilitated the expression of at least one Garfield fan’s flash of inspired genius.
The rest: newsweek.com

Musing: The micro-blogging craze is real. Not only does Twitter have over a million unique a month, but there are plenty of competitors coming into the space. I admit, I find Twitter a bit odd – despite the fact that I bring it up a lot. But, I think the gap between those who “get” Twitter and those who don’t is generational. Spend time with anyone 30 and under, and you understand very quickly that constant texting is just part of the day. A few months ago, my younger brother-in-law and I were talking about how he should respond to a text from a girl – not a phone call, but a text – and what the best way to respond is. Very odd! This, however, is the epitome of the difference between those called “digital natives” and those who are immigrants. No matter how hard we “old folks” try, we just don’t quite get it. But that doesn’t mean the shift isn’t real. As marketers, we have to determine ways to get into the conversation. That may not mean being on everyone’s Twitter list (it may, though), it may mean finding ways to make communication easier for people.




‘Generation Buy’ Fickle Yet Free Spending: TV Land Study

July 15th, 2008 by Joe Mele

Are we just targeting the wrong consumers?  Why do we obsess over 20 and 30 year olds when the boomers have all of the cash – and they spend it?

Picture: bullnotbull.com

Article excerpt:   Baby Boomers in their 40s and 50s not only are at the peak of their earning potential but also are making the majority of buying decisions for themselves, small children and their elderly parents, according to a recent branding survey conducted by TV Land and consumer researcher OTX. The findings were detailed during a press conference Monday at the National Press Club by TV Land president Larry W. Jones. He was joined by Kim Alexis (pictured), host of TV Land’s original reality series She’s Got The Look and Beverly Johnson, a judge on the same series. Not only are 40- and 50 year-olds spending more on themselves per month than Millennials and Gen Xers but, more interestingly, they are spending twice as much as their younger cohorts on others in their lives. With so many people to shop for, Boomers are “making several multi-generational purchase decisions at once and—contrary to common assumptions—they are far less brand loyal than Millennials and Gen Xers,” according to the survey. TV Land’s “Generation BUY: A Close Look at the Boomer Consumer” study, fielded by OTX, includes input from almost 4,000 adults ages 18-65 nationwide. Commissioned by TV Land, the study provides information on the purchase decisions and brand loyalty of Adults 40-59.
The rest: multichannel.com

Musing:  One very interesting aspect of this article is that boomers are less “brand loyal.”  This is a loaded assertion, however.  Are they less brand loyal, or are they simply willing to try new brands?  Is it additive or is it a replacement?  It’s not clear, but it is interesting that the younger the consumer, the more likely they were to being brand loyal. Not sure why that is, but would love to hear insights.  The other not very shocking piece is that these 40-55 year olds spend a ton of money.  Makes one wonder why our audience targets are so often younger (25-44 seems to be the target of choice) when logic would dictate that this HUGE audience with a lot of money and a willingness to spend should be the target.




Apple iPhone 3G: 30-Minute Marketing

July 15th, 2008 by Joe Mele

I’ve seen it (and I have the phone, so nyah-nyah) and the acting is bad, but it does make you want one.  Doesn’t it?!?

Picture: comictan.com

Article excerpt:   One of the most talked-about aspects of the Apple iPhone 3G is an approximately half-hour instructional video on Apple.com that lovingly details each new feature and function. But if you really think about it, it’s a 30-minute advertisement, said Charles Golvin, principal analyst at Forrester Research. “Even though it’s educational and you’re giving people an experience, it’s this really sort of deep immersion in Apple’s brand and approach and there’s huge value in that. How often do you get more than a minute of customers’ undivided attention?” Golvin asked.  The educational strategy, employing senior director of worldwide iPhone product marketing Bob Borchers as the instructor, is not the first time the company has done this, but it’s the longest tutorial to date for Apple. (Borchers has demonstrated his expertise in other how-to videos.)
The rest: adweek.com

Musing:  Lots of opinions out there about video – what’s the right length, how do you use it, etc.  The truth is, it really depends on what you are trying to do with the video.  Although I have no data to prove it, my guess (and my personal experience) is that the video is highly effective and very valuable.  And it’s 30 minutes long.  So what is good?  There are no answers.  But if what we are creating is valuable, the length seems to be somewhat immaterial.  That doesn’t mean that we throw all of the new rules we are finding out the window – shorter is better for advertising, etc.  It does mean we have to think about the customer first and what they need.




The Red Queen of E-Commerce

July 15th, 2008 by Joe Mele

What are the 5 must-have features of an etail website?  You might not be surprised, but that doesn’t mean you’re doing it.

PIcture: nature.com

Article excerpt:  There are five must-have features e-tailers should incorporate into their online businesses, according to Joe Chung, cofounder and CEO of Allurent: interactive merchandising, advanced shopping tools, rich media, advanced search and guided navigation, and social commerce. The Red Queen in Lewis Carroll’s Through the Looking-Glass lives in a very curious world where, as she explains to Alice, “It takes all the running you can do, to keep in the same place.” I think that sentence sums up the world of e-commerce with uncanny accuracy: No matter how hard we work to knock items off the priority list, there are always new ones popping right up to take their place. In the first generation of e-commerce, back in the mid-’90s when most of us were running on Perl scripts and a prayer, the priorities were at least easy to define: Build a site in which most customers can actually make purchases without things crashing more than once or twice a week. The second generation, built out on commercially developed e-commerce platforms, evolved to meet this basic challenge, and their success at enabling solid dependable e-commerce operations has indeed fueled the tremendous growth over the past several years. Now, however, as we enter the third generation of e-commerce, we find that when it comes to meeting the expectations of our shoppers, we’re really no further ahead than when we started. The rest: ecommercetimes.com

Musing:   Although the article lists 5 things that all e-commerce sites should have, I am more intrigued by some of the commentary in the article which I think is right on.  First, the article comments on how stunning it is that retailers don’t understand their customers better across channels.  Couldn’t agree more.  If I am a customer of your store, and I spend lots of money with you, you better know that no matter where I am shopping.  The second is that customers are spending tons of time pre-purchase on online versions of retailers, but most of the sites that are created are really focused on the transaction.  We are missing out on an incredible opportunity to add service, education, and interaction.   What a waste if we only have one lens or one view of online customers.  Imagine if we did this in the offline world – if we treated everyone who came in the left door of the store as someone who only wanted to transact and we gave them no more service than a cash register.  And imagine we only knew you as a customer depending on what door you came in.  Sounds ridiculous, right?  But that is the way we treat multi-channel customers.




Google Push to Sell Ads On YouTube Hits Snags

July 15th, 2008 by Joe Mele

Poor Google.  It can’t monetize YouTube.  Will this be its albatross?


Picture: digitalsurgery.net

Article excerpt:  Wringing ad revenue from YouTube is proving to be a challenge for Google Inc. Although users of the popular video-sharing site view clips more than one billion times on most days, the site hasn’t been as popular with big corporate advertisers. World-wide revenue from YouTube ads has fallen short of Google’s expectations this year, and is likely to total about $200 million for the full year, according to two people familiar with the matter. YouTube is critical to Google’s campaign to extend its advertising reach far beyond text ads tied to Web searches, its revenue powerhouse. Google wants to sell more video ads and display ads on YouTube and elsewhere. It also wants to crack the television, radio and newspaper ad markets. Its target: the 90% of global ad dollars that don’t currently flow to the Internet. “Most advertisers are still testing the waters on YouTube,” says Sean Muzzy, media director at Neo@Ogilvy, a digital ad agency owned by WPP Group’s Ogilvy & Mather. Some big advertisers, he says, haven’t been comfortable that their ads might appear next to amateur videos. Google Chief Executive Officer Eric Schmidt has acknowledged that the company hasn’t yet found the best formats for video advertising.
The rest: online.wsj.com

Musing:  It’s a fascinating dilemma, and one wonders if Google is the right company to tackle it.  Google wants to leverage the huge traffic at YouTube to extend its network, potentially bringing more targeted advertising (or at least auction-based advertising) to its customers.  But is the concept based on a few fatal flaws?  First, Google built its value on advertising targeted precisely, with tremendous control over what inventory the customers were buying.  YouTube offers very little of that.  The inventory produced by YouTube is generally user generated, and is, by its nature, not user controlled.  Second, Google wants to connect search usage to content in other areas.  But just how connected is a search on Google going to be to a search on YouTube?  My guess is highly unconnected.  The sites are used for very different purposes, and connecting searches on one to the other may end up bearing little fruit. Third, the whole user-generated content industry (MySpace, YouTube, Facebook, Flickr) is struggling with how to monetize their vast audiences.  The only answer most can come up with is either branded pages – which most advertisers simply use to make ads (hardly a reason to friend a brand!) – or run-of-site untargeted ads.  Is the answer pre-roll and post-roll on YouTube video? Yeah, if you want to kill YouTube.  Consumers hate those things, and will especially hate it on a site that is supposed to be open.  Google is giving itself 5-10 years to figure this out.  In internet time, that is an eternity.  5 years ago, Google was a bit player, 10 years ago (1998), most people hardly even knew what the web was.




Week of 7.07.08 / Top 5

July 9th, 2008 by Joe Mele

BroadbandFreetime/NegativeBuzz/LongTailBS/VODBarriers/ AtWorkToInStore

Broadband users spend nearly half their free time online, Netpop says

Not sure what is more surprising – the fact that they spend so much free time online, or that they have so little free time!

Picture: mistfall.com

Negative online buzz, monitor it don’t ignore it

Are you ready for the bad buzz? Are you ready to do something about it?

Picture: Google Images

Study Refutes Niche Theory Spawned by Web

First it was “The Tipping Point,” and now it’s “The Long Tail” that is being vilified. Are no cool, trendy ideas sacred anymore?

Picture: Flickr

VOD Ad Growth Barriers Remain

Is the ad growth based on content or on opportunity?

Picture: Sizethis.com

At-work web browsing leads to in-store purchases, study shows

More time at work just means more shopping at work, too.

Picture: Blogs.Chron.com




Other Articles of Interest / Week of 7.7.08

July 9th, 2008 by Joe Mele

Issues of Interest

Google and Creator of ‘Family Guy’ Strike a Deal
nytimes.com

Digital Marketing News

Google Ad Planner Shakes Up Web Analytics
emarketer.com

What’s Not to Like About Behavioral Targeting?
emarketer.com

IAB Prepares to Sharpen Self-Regulatory Fangs
clickz.com

Calling on NBA Fans
adweek.com

Digital News and Trends

Restaurants learn to Yelp — Eateries give mixed reviews: It’s a service or a shakedown…
bizjournals.com

Retail and Products

A Movie on Your TV at Home, Before You Can Rent It
nytimes.com

A Digital Music Store That Sells More Than Just MP3s
nytimes.com

RealNetworks opening up DRM-free online music store
Seattletimes.com

Store customers like having access to JCP.com at J.C. Penney stores
internetretailer.com

Regular retail turns to Web
SeattlePI.com

Netflix’s Online Movie Dreams
Forbes.com




Broadband users spend nearly half their free time online, Netpop says

July 9th, 2008 by Joe Mele

Not sure what is more surprising – the fact that they spend so much free time online, or that they have so little free time!

Picture: Mistfall.com

Article excerpt: The Internet has become a big part of the leisure-time activities of U.S. consumers with broadband connections who spend nearly half of their free time each weekday online, according to a survey by Netpop Research. Respondents say they have on average 4.5 hours of free time each weekday and spend 2.2 of those hours on the web. Many are multitasking, especially watching TV and going online simultaneously. Four out of five say they have gone online while watching TV, and 39% say they do so regularly, according to Netpop, a division of market research and consulting firm Media-Screen LLC. Why do they go online while watching TV? 63% say to get work done, 38% for something to do during commercials, 25% to look up information about the show they’re watching, 15% to check out products, 15% to take polls or share opinions, and 11% to share experiences with others. The Rest:internetretailer.com

Musing: Very interesting insight into how users multi-task. Almost 2 out of 5 say they go online while watching TV because they want something to do during commercials. Another indication that it is vital that our online ads and TV ads are connected and integrated. Consumers are also starting to share more of their TV watching with others while online. Also surprising that the amount of time spent online did not vary greatly by income. Very interesting. As consumption changes, are we really doing enough to address how we are talking to our consumers?