Via Scoop.it – Monetizing The Customer Experience
WCNTV Commentary: This is a great article making for the introduction of Transmedia Brandcasting to provide instant merchandising for Advertisers and a Invitation into the Transmedia Relationship between the Artist and the Fan. Viewers are tired of subsidizing 30 Second commercials and reruns. Its time for IPTV and the Love It, Click it & Buy it Technologies that will faciliate global merchandising from streaming video. Remember you heard it here first. Jay O’Conner Chairman & CEO WCNTV
Television advertising has undergone significant changes in the last 30 years. However, it is arguably on the verge of its greatest changes ever. From where I sit as the Global Head of Digital at PepsiCo Beverages, charged with navigating our brand’s foray into the digital world, I see three big changes: –The value we put on an advertisement will change as we seek to account for engagement metrics in the pricing. –The narrative arch will change as we think of the advertisement as a trailer versus the whole story. –Location-aware technologies will force a greater degree of engagement on a format that had historically been passive, impersonal and certainly without any extensions. When you look at the statistics, the reasons are obvious.
According to a recent study, 60% of television viewers also look at their mobile phones while watching TV shows. 33% have their laptops open in front of them and most interestingly, iPad owners spend the most time in front of the TV with their tablet than any other activity. It makes sense for TV advertisements to be thought of as an element in a broader narrative arch for the brand – a narrative arch that allows the brand to tell a more complete and a more interactive story. But what are the implications for marketers today? I see six key changes.
1. In the future, no television advertisement will be just self-contained narratives designed to entertain, inform, educate or remind consumers about products. Their role isn’t going to be about building brand recall, favorability and awareness in that moment alone. They will be trailers into deeper branded digital experiences. When TV ads become teasers for digital experiences, the ROI on the investment will improve significantly as the digital experience will stretch out the brand experiences beyond the 30 second clip. The ROI won’t be measured by the impact that the TV ad has when it’s aired but also by its residual influence on engagement in other mediums in the weeks that follow the airing. We saw a good example of this with the Pepsi Sound Off platform that was launched to fuel conversations around the X-Factor TV show.
2. Fewer and fewer advertisers will start their strategic marketing planning with a television advertisement in mind. Instead, they’ll step back and begin with an engagement strategy that gets operationalized through a series of creative ideas that then get routed through different channels. We saw this with the most successful Super Bowl ads like the Volkswagen ad, which was launched online the preceding week, and the Mercedes advertising, which was driven by their Tweetrace engagement program. We’ve also seen it with Best Buy’s Twelpforce where TV was used to promote the powerful and award-winning digital engagement program.
3. Location-based digital experiences will be the new driver of television advertising. Back in July, Pepsi ran television advertising that was all about celebrating that summertime is Pepsi time. The ads ended with a call-to-action encouraging people to check-in at summer locations like beaches and amusement parks for exclusive content and to get the Pepsi Summer Time Badge on FourSquare. The badge became FourSquare’s most popular brand badge ever and the tight TV, web and mobile integration drove its popularity. As marketers look to get stronger ROI from their TV investments, location-based programs linked to the TV advertisement will come to the forefront. These will matter as they can track the user all the way to the store shelf.
4. Media planning will change, as social signals will heavily influence media-planning decisions. With technologies from companies like Blue Fin and Networked Insights, I now know which TV shows (and which Pepsi ads) triggered the most social engagement online. I also know which TV shows were most engaging for Pepsi consumers specifically. You can bet that information will heavily influence planning decisions in the future. In fact, I’ll go so far as to say that in the future the metric GRP (which stands for Gross Rating Points and which accounts for reach and frequency) will look something like a “GRPE” with the “E” meaning “engagement.” capturing how social a particular TV show is. As advertisers, we will place a premium on shows that have a high “E” component.
5. Being ready for digital participation in real-time becomes the new imperative for marketers. They’ll need to structure around that. Whether it’s the Super Bowl or the VMAs, as marketers run television advertising, they need to be ready for the real-time response and the real-time marketing opportunities for deeper digital engagement. When Beyonce showed her pregnancy during the MTV VMA’s, that was a real-time moment. It lit up the web with conversation and savvy brands jumped on the buzz to promote related products and services. This will soon become common for all marketers.
6. Reflecting digital culture through television will become a priority for brands. Increasingly, consumers care most about items like what’s trending in pop culture, what’s about to become really important, and what music, entertainment, sports or celebrities they need to care about. All this typically breaks online today. Reflecting that and sharing it with wider audiences in ways that correlate to the brand’s objective, is going to become a new role for TV advertising. It’s going to give street credibility to the brands. It’s going to start with those 15-second spots but soon all advertising will cover this. These are indeed exciting times and not just for the networks that try to brandish their digital credibility, but also for savvy marketers who suddenly are discovering that the world doesn’t start or end in a 30 second spot. The TV spot has become the trailer for something bigger, broader and more interactive.