Posts Tagged ‘Advertising’

Digital vs Physical – Convienence or Appreciation?

January 26, 2010

The other day I wrote about how in the UK at least the digital asset of music seem to have become more expensive that the physical assets you can buy in-store or online (how many of you have bought 3 CD‘s for 20 quid at HMV??) and how the consumer losses a lot of the appreciation factor of holding a physical item in there hand and placing it into their CD player….

This morning while flicking through a magazine, I read a short article about how Microsoft will be offering games via it’s Microsoft Live service, yet again the digital media supplied via a download service is more expensive than buying the physical copy online an having it delivered for free….

So why would people do this? I can completely understand the convenience factor of going to an online service such as Microsoft Live and downloading the digital copy directly onto your PC or Games Console, but were is the appreciation of the of the physical printed parts, the junk that they ship with the copies (you know the A5 leaflets about stuff you don’t want to know) and the booklet that contains the story of the game…. How does all the work the marketeers, copy editors, pre-media companies and printers get appreciated in a digital download?

With games there is also a resale value with the physical copy, not only do you pay less, but when you have completed it you take it back in-store and get a discount on your next purchase (or sell through marketplaces like ebay, Amazon and Play!)

So suddenly the print volumes are declining, the replicators are screaming and the manufacturer (software houses) are laughing all the way to the bank…. or are they? If we remove the physical packaging as our ability to purchase disposable consumer items like music, film and video games there is also the knock on effect to the retail stores, these stores spend millions in our pre-media market on advertising with point of sale material and their own pre-media advertising channels such as TV, Radio and Publishing, now the software houses can do that themselves and reap the rewards of a higher slice of the cash. I really don’t need to spell it all out to you, especially if you have been affected by this already and your business has suffered at the hands of digital download.

As a consumer though, I like to touch something I have purchased, even if it is just a 5 inch silver printed disc and a piece of packaging that will clutter up my house, it gives it a sense of meaning, something I can account for when I wonder where all the cash in my bank has gone.

This isn’t the first time I’ve thought about this, I’ve illustrated in my first post about how in the UK it is affecting the sales of physical media in Music, now I’ve shown the same in the Video Games market, not that digital downloads of Movies has taken off yet, but you know it will at some point (how BT is going to manage it’s stupid fair usage policy when consumer Movie downloads hit the big time I have no idea, when you consider a HD movie is around 10gig you will soon have your bandwidth throttled to 1 meg after a couple of viewings!)

For the last 6 years I’ve been purchasing Norton Internet Security, wow what a business model they have, annual subscription that you have to renew to stay current, now these guys produce plenty of software and plenty of packaging which equals plenty of design & print. But I wonder if as part of their wonderful business model they actually keep the price of online subscription renewal higher than going out and buying the boxed product? Is there some sort of deal they have with the retail network that gives them the ability to push the product? Each year when my subscription is coming up to renewal I pop down to PC World and pickup my new version for under £25 where today online renewal is £54.99 – ouch over double the price for a renewal over a new boxed copy!

At the moment the artificially inflated digital prices are playing into print & pre-media hands all the time the printed packaging is cheaper, but at some point that will change as the next generations of youngsters only use download services providing a new paradigm of business opportunities.

For those companies currently diversifying their service offerings make sure you consider how your target market is moving in these digital times.

Author: Gary George

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Interesting Facts on Media for 2010

January 19, 2010

Well you always manage to stumble across something that’s pretty interesting out there on the web and whilst browsing away I stumbled upon this lovely little presentation on Slideshare.

What I found interesting was the volume of information that was backed up by a credible source, although some of the figures seem pretty unbelievable you have to trust that the research was fully executed (for example the 72% of mums in the UK are on Facebook, well my partner is a mum and isn’t on there, neither was she surveyed…. so I wish they would simply add the word surveyed into the statement…. 72% of surveyed mums in the UK is far better than 72% of mums in the UK!!)

Anyway I think for companies in our world who need some facts and figures for their presentations on pre-media output channels you will find a lot in here that help you get the message across… Imagine if you are the company launching a campaign for baby milk in the UK, 72% of your target audience is on Facebook, wouldn’t you be thinking about doing a bit of advertising on there where you can target the exact demographic you want?

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Helios is like an old Volkswagen

December 22, 2009

I’ve just been delighted when I received a google alert on my old favorite term Pre-media only get get whisked away to the Helios website…. Upon arriving I have to say I was pleasantly surprised, I mean the last time I was here is was pretty awful looking, so I have no idea when they had a face lift, but it is pretty refreshing…

What I liked most was their text within the Ad Agengy/Pre-media section of the site…:

The way that Volkswagen promoted the VW Beetle in the nineteen-sixties greatly changed the advertising world – just like that car moved the audience. If the agency copywriter had known then that this claim would prove right, he certainly would have gone to bed deeply satisfied that night. The VW Beetle assembly line kept running from 1946 until 2003.

Of course, we cannot tell if our “Unbreakable” server solutions will keep running just as long. But we are confident that they will. This confidence is based on the feedback we receive from our customers who have worked with our server software for more than a decade, day by day, and without any downtime. It could run likewise for you.

I like the way they are admitting they are not perfect (but then what product is) but the would like to pitch themselves up there with the reliability of a Volkswagen car…. neat.

Maybe I’ll take a closer look at their product offering for this new Pre-media could and report back, hopefully their grant me a demo licences for a little while to truly have a play.

Author: Gary George

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The Demographical Difference

December 18, 2009

As 2009 draws to a close perhaps we can start looking for some solace in 2010 in a hope that our economic downturns in the UK & US will start lifting and maybe give a lift to our pre-media industry that was hit hard by the downturn. Technology has always been a key driver in our market and it’s being driven further with consumer data mining speeding up the fast lane to support our desire to target individuals with marketing information. Some companies like the Car Phone Warehouse have used their customers’ data very well in producing tailor made, specifically targeted campaigns that are focussed around their knowledge of customers’ preferences. But what about the everyday online profiles that we generate; what about the subscriptions we pay to newspapers and magazines that collect all of that demographic information….

Yes it’s great that Joe Bloggs publishing can tell their readers and the publishing industry that 53% are male readers between the ages of 18 and 25 who earn on average £23,568 a year, yet they still send the same magazine to all of their readers! Why do that when they actually hold so much information about their subscribed users? OK, I can suffer the fact that a generic magazine needs to hit the news-stand as they will have no idea who is going to buy it, but their subscriber base could certainly be benefiting from a more focused magazine.

Are you getting my drift here? The consumer will benefit as the advertising content would be tailored to their demographic profile, the advertisers will benefit as they have a target audience for their products that actually matches who they want to sell to and the consumer reads adverts that will actually engage them rather than skip to the next article. Also media booking could be streamlined to remove the huge amount of human work and administration that goes into it. Lets take an example; for some reason we subscribe to Ideal Home, I actually love looking and reading all of the editorial about what’s available and how these average people have transformed their homes. But the advertising content is way off the mark – our family income is pretty average (well, I think it’s pretty average as we don’t live a lavish life and have very little disposable income, I know our Chancellor thinks 20k is enough for a family to live on but we who live in the real world know it isn’t) and the magazine is targeted at us average people. Yet the advertising is targeted at people who have bucket loads of cash, you know the people that can afford handmade kitchens rather than a Wickes flat pack! Yet the magazine know our demographic profile and it’s not like the technology is not available to produce these with our profiles in mind.

By Industry

Image based Ad Impressions Oct 09 By Industry - marketingcharts.com

 

Now thinking about what’s happening online – again demographics seem to have been left out of the advertising equation. I login to my Yahoo or Google account and I get content-aware advertising, not consumer aware advertising. If I go to a site that is plastered with advertising (and sorry, if it’s a professional site that has had adverts added for them to gain some extra revenue then I feel it cheapens what they have on offer) the advertising is targeted on the content and not the vistors demographics…..and that’s without going into the magazines and newspapers that are now delivering digital editions.

If I took this one step further and looked at broadcast, the like of Sky & Virgin in the UK and the cable networks in the US hold so much demographic data about their viewers they could cash in with the advertising community by broadcasting adverts specific to demographic bands. They say that the adverts during the superbowl are the most expensive in the world! Now imagine the revenue the advertising companies could gain if they had adverts had a better demographic hit rate! Just think the first commercial of the first quarter this year was for Bud Light, that was aired to 114,500,000 households in the US, what percentage of those households was it actually relevant to based on their demographic profile? It could just be that a different Bud Light advert could be used for different demographics to help get the brand across, or a completely different advert say for Pepsi could be used that would  more relevant to a percentage of households. Either way, again the technology is there to do this, so when will broadcasters start getting clever and cashing in?

Missed opportunities or is it what we have to look forward to?

My prediction is that in 2010 will see the start of the advertising market becoming demographically aware as they start to try and find out why their huge advertising budgets don’t bring in the sales in the volumes they used to.

Author: Gary George

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Is the UK Cashing in on Advertising?

October 8, 2009

My old friend Andy Fraser happened to be over in Germany last week when he dropped me an email on our whole POD print concept. He found in a newsagent over there that they are already providing POD for the international editions of our favourite papers. And you know, I have myself experienced these POD papers when staying in Europe a few weeks back.IMG_0837

When sitting down for breakfast I picked up a copy of the New York Times global edition. This must of been printed locally and delivered to this and probably 100 other hotels around the area. The one thing that struck me as odd and pleasing in the same breath was the lack of advertising in this paper, other than a few scattered ads for subscribing to the global edition and then just one…. yes ONE paid advert for a watch. The following morning unfortunately someone else had got  to the NY Times before me, so I picked up The Independent International  Edition and sure enough the Brits had fully cashed in on the advertising with a total of 22 ads in the 48 pages of the paper. And we’re not talking about little classified ads here, we’re talking full page or half page in your face ads. So being that I found this a little intrusive with my breakfast, I proceeded to lookup the subscription price for The Independant and since it is clearly being supported by advertising, I was expecting a pretty low rate. But no… £894!! for the Monday to Sunday editions…. Well cotton my wee little socks, not only are they taking that daily advertising revenue, but to obtain the copy you are paying a big subscription fee (lets work that out…. emm oh over £2.40 a paper, thats over 5p a page since the edition I read only had 48 pages…..)

So, the hotel (or me if I subscribed) would have paid out all that money, to be forced to read untargeted UK based advertising (not that useful when you are in Germany knowing that you can get your tomatoes half price at Sainsbury’s that day) and filled with news that has been editorially altered to be shorter for a smaller paper!

Is there a Cognitive Mismatch Between Newspaper Execs And Newspaper Readers? I’ve been following the article on TechDirt with the same title and adding my own comments, but it actually brings me back to my own A Possible Future For Newsprint series where if you are paying for the content, why not choose the content you want to read.
Author: Gary George

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New AdSend with Certified Softproofing

September 30, 2009

logo_navI’m not really one for aggregating content, but just popping into my mail box was the press release for Vio’s updated Adsend software that includes ICS’s software. Now it all looks nice and fine, but are they lagging behind what others are doing here? You know, by trying to keep hold of that gatekeeper model? I like the idea and I also like what http://www.sendmyad.com/ and http://www.specle.co.uk are up to. Maybe it is just that the Adsend website is so sterile in comparison to the others? Maybe I should judge the book by it’s cover!

http://www.grafixwire.info/?p=594

Now I also have to mention the use of ‘Pre-media’ in this press release; I do wonder if they used it 4 years ago in their first press release???? Or are they cashing in on the new buzzword about town.!!!

Author: Gary George

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