Nielsen BuzzMetrics :: White Papers

Although influenced or stimulated by traditional marketers and marketing activities, online word of mouth is nonetheless owned and controlled by consumers, and it often carries far higher credibility and trust than traditional media, especially as media channels become more fragmented and less trusted.

Consumer-Generated Media (CGM) describes a variety of new and emerging sources of online information that are created, initiated, circulated and used by consumers intent on educating each other about products, brands, services, personalities and issues.

Ninety percent, in fact, have used an Internet search engine to research a product or service (Source: Pew Internet & American Life Project, December 2005).

The Internet is significantly amplifying the power of brand apostles and owners, affording them many more venues and “megaphones” for sharing their views with others. This underscores the critical importance of companies and brands managing and nurturing customer segments.
The Value Profit Chain (Heskett, Sasser 01/03)

Consumer-Generated Media consistently outranks other ad vehicles on the “trust” factor. As word-of-mouth platforms grow and traditional tools lose impact, the measurable propensity of a customer base to recommend products and services to others will be regarded as the single-largest measure of brand equity. Source: 2004 Forrester/Intelliseek Research

 
CGM vehicles are quickly evolving to higher-impact, multi-media formats. Digital photos and online videos are beginning to dramatically raise the stakes for brand/corporate reputation.

A Marketer’s Quiz: Questions to Ask Yourself

1. Identify who’s speaking
2. Identify and Flag Key Issues
3. Deepen Relationship Marketing Efforts

 Download the electronic version of Consumer-Generated Media (CGM) 101 free of charge.

William Morris, Media Execs Create 'Agency 3.0' - Advertising Age - Madison+Vine: News

Hollywood's oldest talent shop, the 110-year-old William Morris Agency, is partnering with a triumvirate of digital media, wireless and advertising executives to create a joint venture called Agency 3.0, a digital-marketing-services company seeking to marry digital technology to strategically developed content.

In an interview with Ad Age, Mr. Johnson said TV advertising "is becoming less effective," in part because "it's highly disconnected from the creative process."

Time for a new approach
"There's a whole new world in the marketing, distribution and monetization of digital media, with unique demands for new approaches to both design and implementation," said Jim Wiatt, William Morris' CEO. "We recently announced a digital-media venture fund, and now with Agency 3.0, we'll be providing services as well as making investments in this sector."

Digital Media - The voice of Asia's digital communications industry - MAGAZINE ARCHIVE - APRIL 2008

The purpose of Prodigious (Digitas Alliance) is to centralise digital production in low-cost markets. The model is simple: it has managers that work with marketers and creative agencies in their home markets, then offshore facilities that produce the work. It will build a presence in six cities in India, as well as Singapore. These join Shanghai, Costa Rica, Kiev and Sofia in the Prodigious line-up.

Interpublic's MRM Worldwide currently has a digital production centre in Bangkok, alongside Warsaw and Buenos Aires. Strategy and creative are handled locally, then bulk production is moved elsewhere. Work sent offshore includes web build, Flash projects and bulk volume banner produciton.

WPP is also looking at building its offshoring capacity in the next few months.

Also see Thousands of Versions of Ads

YouTube - Forrester Research: Engagement: A New Approach

Excerpt from Forrester's Marketing Forum 2008. Forrester Research Senior Analyst Brian Haven says the four I's - involvement, interaction, intimacy, and influence -- provide a framework for better understanding and measuring engagement with your customers.

MySpace.com - www.myspace.com/neverendingfriending

Social networking is a quantum change in how we interact – with each other, with bands and brands, and with the entire media landscape.

Users recognize social networks as the best venue for the dance of attraction, connection, and retention that’s better known as “relationships”.

Future Shapers, those leading-edge consumers whose behavior tends to be a signpost for what’s to come, are showing signs of embracing activities like watching TV within social networks; visiting outbound links; and learning more about social marketing messages.

Both B2C and C2C co-exist and generate benefit for the brand, but until now, we have lacked a framework to analyze the value creation, forecast it and manage it. The work with EA and adidas on MySpace has validated many of the hypotheses, including demonstrating that SN marketing can enhance the nature of the product and build consumer advocacy.

Re-think the media mix to leverage the benefits of SN and the Momentum Effect
Design ways to unlock or activate the Momentum Effect, using the following guidelines:

MIX | Sessions

Worldwide – Approximately 6,000 Advertisers account for >80% of all ad spending (~5,000 in US account for >90% of US ad spending)

• Advertising Needs Massive Automation
• Market is manual (phone calls and email drive everything)
• Market is opaque (no pricing transparency)
• Market is inefficient (loads of remnant inventory drives prices lower – see #2)

• Add transparency to the mix
• Increase liquidity by letting all advertisers bid / buy across all networks
• Drive market efficiency
  
• In a world where exchanges exist, every impression can be evaluated and a bid price can be set – in real time
• When this is possible, the price can be adjusted up and down based on confidence of driving a campaign goal
• Campaign goals in search today are generally based on performance (Driving a sale)
• In the future, the system can optimize against other goals – such as driving awareness of a brand, or changing perceptions of the audience, or changing purchase intent

• Nano Technology drives more devices, more flexible scenarios
• Hyper-targeting with personalized advertising
• Personalized Product Offerings
• Projectors, OLED and Disposable Video
  • Low Resolution Video Projectors are becoming incredibly cheap
  • OLED is printable and flexible
  • Siemens Printable Video Displays – with printable batteries
• Tracking and Measuring Advertising Offline like Online
  • RFID
  • GPS Phones
  • 2D Bar Codes (QR & other)
  • Bluetooth & other methods
  • Neural Scanning Technologies

 Download the electronic version of Presentation free of charge.

In the Age of TiVo and Web Video, What Is Prime Time? - New York Times

Who stole six million viewers? That’s the number who were watching prime time television last May, a month affectionately known as “sweeps,” but have disappeared this year, according to the overnight Nielsen ratings.
In the past television season, there has been a sharp increase in time-shifting. Some of the six million are still watching, but on their own terms, thanks to TiVos and other digital video recorders, streaming video on the Internet, and cable video on demand offerings. So while overall usage of television is steady, the linear broadcasts favored by advertisers are in decline.

One in four American households now uses a digital video recorder to time-shift shows and skip commercials. While they enable viewers to watch more hours of television, they hurt the rate of commercial recognition, as about half of all commercials are skipped in time-shifting modes.

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Advertising Age - Agency Report 2008 Index

Revenue for U.S. agencies -- advertising, marketing services and media -- jumped 8.6% in 2007 despite a tepid ad market. And for that, you can thank digital. While it comes as no surprise that revenue at digital specialty agencies rocketed last year (up 26.8% in the U.S.), it's clear that digital services have become a way of life (or a way to avoid death) for agencies of all disciplines. In fact, U.S. ad agencies reported an average 10.2% of revenue from digital in 2007.

The Big 4 ad firms -- Omnicom Group, WPP Group, Interpublic Group of Cos. and Publicis Groupe -- last year generated 12.3% of worldwide revenue from digital services.

 Download the electronic version of Agency Report free of charge.

 Download the electronic version of Agency Family Tree 08 free of charge.

Carat Forecast

Carat has issued revised forecasts for global advertising expenditure in 2008. For the first time, Carat has also published forecasts looking to 2009.
2009 is predicted to see advertising growth of 4.9% worldwide, with the fastest-growing regions set to be Asia Pacific and Latin America, with strong increases predicted for India, Indonesia and Argentina, at 21.2%, 22.3% and 15.0% respectively.
Segment-wise, the strongest growth remains in digital, at 23.3% for 2008, although it is expected to slow somewhat to 18% in 2009.“Digital’s success story continues. We predict it will approach a 10% share of all global ad spend in 2009."

Unsurprisingly, the internet is delivering the fastest increase of all the sectors, with digital growth in double-digit in all regions. Of particular note are China with 56.0% growth anticipated in 2008 and Russia with 46.3%. The fast growth rates of recent years are expected to moderate slightly but still show double-digit growth: digital in 2008 and 2009 is forecast to grow at 18.0% and 15.3% respectively in North America; 28.7% and 16.2% in Asia; and 27.5% and 22.9% in Europe.

 Download the electronic version of Research Paper free of charge.