Artists.MTV: Smart or Just More Confusion?

It feels a little bit like deja vu.

This month Viacom's MTV announced a "MySpace"-like initiative called Artists.MTV.  The basic idea is to provide music artists a centralized place to access MTV's 60 million+ monthly visitors.  Aritsts.MTV will allow musicians to "claim" their sites and upload music, videos, photos, and link their "pages" with social-media accounts and other online shopping carts. "Pages" will go public at MTV's Video Music Awards this fall.

We've seen this before.  MySpace's music initiative was a mildly successful attempt at the same "thing."  Digital downloads have driven the price of music down to very affordable levels for consumers.   Once there were only a few places for consumers to get their media.  Now the problem is that there are almost too many places to get your music, music videos, and self-promote.  Add the juggernaut of iTunes into the picture, which is estimated to have up to 70% of digital music sales market share, and one has to wonder if anyone can change consumer's buying and mind-share habits.  At first glance, Artist.MTV could just be adding to the current marketplace confusion outside of the iTunes ecosystem.  But if you take another look at it, it very well could be extremely smart.

One of the biggest pet peeves of many artists is that they don't get a large enough cut of music sales revenue.  Over the last decade, declining CD sales revenue, piracy and a paradigm shift to digital music sales have steadily lowered the revenue artists receive from their music. Lower concert-ticket sales have also lowered the income artists receive each year.  According to Shannon Connolly, VP of digital-music strategy at MTV Music Group, "We felt like the world needed a place that's comprehensive and thorough, and that allows artists to connect with fans at scale...The goal is to help artists get paid." Summarizing their efforts, Ms. Connolly commented that ..."the goal here is to give artists the opportunity to monetize what they do...artists can get heard, get promoted and get paid."

What?  They want the artists to get paid?

It may be a basic play off of greed, but quite frankly, it may be enough to make a difference.  The Artists.MTV initiative (which includes the  VH1 and CMT brands) will share sales revenue with artists and ANY ad revenue generated on the pages through an agreement with Topspin Media.  This also gives artists the ability to receive the majority of revenue from sales of music, tickets and merchandise.  An increased share of sales may be the "ticket" to show iTunes, and other record companies, some real competition.

Digital sales, the digital marketplace, self-selling and self distribution are all meant to increase the income of the actual creators and producers.  Artist.MTV may actually be more than lip-service.  It may actually be the real deal.  Only time, and MTV's 60 million monthly visitors, and a significant marketing campaign, will be what tells us if anything can crack the thick shell of the iTunes ecosystem and the traditional record companies distribution network.

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Data: Knowing How Your Customers Use Media

I can't say this enough, so I will say it again:  It's all about Data.

Another illustration: today the Pew Research Center released the results of a recent survey, stating that less than 10 percent of people are using social media for up-to-date news.  So what does this mean?

I think we can gleam a few points:

1) This shows that your customers are probably using Facebook and Twitter for other types of information.  Social media is a losing proposition and a waste of resources if it isn't used properly.  Know where your customers are looking before releasing any type of news.

2) Press releases and other types of media announcements should not be on social media as a primary method of dissemination.  Social media should be a part of the whole information release strategy.  As with any properly constructed strategic marketing, a variety of communication methods should be used.  Social media may be cheaper to use, but it's going to cost you real dollars through lost sales if you're not getting information out via the proper channels.

3) Social media's value is in it's ability to give marketer's a more direct, personal connection with their customers.  Press releases and product information don't build customer equity.  Personal, meaningful connections with products and brands build customer equity.  Social media gives us one of the best avenues ever to build equity with our customers.

As always, armed with the right data, our jobs as marketers becomes much easier.  Don't waste your company's time or money.  Arm yourself with the right data so you can use the tools available in the most effective manner.

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Media Consumption In A Digital Age: It's One Big Experiment

In the past, there was a silver screen, a few broadcasters, and a lot of paper.  If you wanted to watch something, you sat in front of someone's television or a theater screen.  If you wanted to listen to music, it was on a stereo - home or portable.  If you wanted to read something, or take something with you, it was most likely printed on paper.  You were in your home, in a movie theater, picked up the mail, or you went to a store to purchase your entertainment.

A few large companies controlled the publishing and availability of the media you chose to consume.  Prices were pretty much the same everywhere you went.  Competition was non-existent.  That's the way it was.  Then this "thing" called the personal computer appeared.  Then the internet appeared.  Everything changed, and it still is.

Last year Time, Inc. hoped to take advantage of it's multiple consumption and distribution publishing model. Time Inc. was attempting to bundle "digital" media with a traditional print subscription under an "All Access" strategy - which would have eliminated print-only subscriptions in the process - and would have allowed Sports Illustrated to raise its price to $48 from $39. Sports Illustrated reversed course in January.  Said Steve Sachs, Executive VP of Consumer Marketing and Sales, "That price, we found, was higher than the market commanded.  Monica Ray, the Executive Vice President of Conde Nast, commented, "The whole industry has the opportunity to redefine what a subscription is."

What kind of subscriptions do consumers want?  Is a "subscription" model appropriate anymore?  How do I find out?  The only way you can find out is by collecting data.  Without data, you're making decisions in the dark, you are walking around blind.  Since the way consumers consume media is changing, we need to be collecting data and study how our customers are using our media products.  If we don't adapt, if we aren't willing to constantly evolve our model of media delivery, we will forever be stuck in our traditions, and more media institutions will perish.

There are no longer a few ways to consume media.  Now there are many publishers, many screens, and the vast majority of them are portable.  Oh ... there still is some paper too.  Because traditional publishing methods have changed drastically from decades of old, traditional media publishers are walking around blindfolded, feeling their way around a media consumption environment that they no longer control.  Today publishing in a digitally dominated ecosystem has become one big experiment, and understanding what will work for you is all about knowing your customer ... and that requires data.

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Saying Apple Won The Mobile Flash War Is Misleading

Remember the headlines in November?  Ones like those in this CNET article saying Apple won the mobile Flash war.  Sources at Adobe were quoted as saying that "We will no longer adapt Flash Player for mobile devices to new browser, OS version or device configurations." (source CNET UK).  So Steve Jobs won.  Flash really is unnecessary on mobile devices.  Actually, it is very necessary.

Adobe made the right move, enabling a successful development platform (Actionscript) to exist in an "app" consumer model within the mobile space via Adobe AIR.  Let's remember what Flash is: a development environment for delivering rich, interactive content to users.  This has traditionally been done via the Flash plugin, allowing web browsers to decode and display this content. However desktop and laptop PC's have more CPU horsepower and screen real estate available for processing Flash content and Actionscript code.  Mobile devices, with their smaller screens, and slower processors, are not ideal vehicles for delivering Flash-based content.

Adobe, FINALLY, recognized this.

So Adobe took a step back, surveyed the situation, and realized what they have: a viable, established development platform.  This development platform not only delivers games and entertainment, but it enables advertisers to create dynamic ads and apps, allowing them to connect with consumers in new ways that traditional advertising does not allow.

That's why the mobile play is so important.  Traditional advertising methods don't work in a mobile environment.  In February of this year, Comscore reported smartphone usage was up 60% year over year (Business Insider).  If you want to get your costumer's attention, it's no longer via a television or a regular PC screen.  In order to win mind share, you have to get consumers in their pockets, so that they will open up their pocketbooks.

Flash/Actionsctipt development via Adobe AIR packaging makes sense. It allows Adobe to continue to sell software.  It allows Adobe to stay relevant with developers. It allows Adobe to be a key player in the mobile advertising realm.  It just makes sense.

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Another Ad Network = More Fragmentation

On Wednesday Yahoo released it's "Living Ad", interactive video ad format for advertisers.  This new ad format works within an ad network, that is centered around Yahoo's Livestand publication app.  Livestand, along with it's ad network, enters an already saturated ad "market" occupied by the likes of Flipboard, Zite, AOL's Editions, and Pulse.  Yahoo is pushing advertisting packages to buyers, some of which are said to run upwards of $500,000.

According to Yahoo, Livestand features a magazine-style layout.  It will launch with some content from third-party publications.  Those publishers will share their ad revenue with Yahoo.  The details of these revenue sharing arrangements are not yet known. These publishers can also re-sell ad packages on the plarform.  I can only deduce that Yahoo get's a cut of that revenue as well. Diane McGarvey at Scientific American, which is offering some content on the Livestand, states Yahoo will keep about 70 percent of revenue on ads sold to appear inline with Scientific American content.
Living Ad, along with Livestand, is one of many initiatives to attempting to make Yahoo a relevant player in mobile advertising.  Mobile advertising is projected to net around $1 billion this year in the U.S. and up to $1.2 billion in 2012, according to eMarketer. Yahoo is positioning itself to receive as large a portion of this pie of revenue as possible.

The mobile ad space is already over-saturated.  Frankly, none of the ad formats and networks bring anything new to the table.  Nothing currently compells a consumer to do anything after viewing these ads compared with any other form of advertising medium.  We don't need another ad network.  We don't need another "method" to get an ad to a consumer.  What we need is a new type of ad, a new way to interact with a product, that might actually compel a consumer to buy.

Advertisers, and content networks, need to bring new ideas to the table.  The internet and mobile phone networks bring whole new possibilities to advertising via interactive ads.  An interactive ad would allow a consumer to configure products, explore them, walk around them, try a focused "demo" of it.  After they have played with it, or configured it to their hearts content, they could be connected with a vendor to purchase that product within a few clicks.  This gives the consumer a quick way to satisfy their emotional desire to buy the product.

However, most online ads don't do anything other than present a picture, an animation, a call to action phrase, and link to a normal website.  There's no point to showing a traditional ad online or on a smart phone if there's nothing new about it's experience.  None.

Yahoo's Living Ad is trying to do this.  However, most advertisers don't seem to know how to create an ad "experience" that really compels consumer interest.  We need to stop telling

If advertisting is going to survive, and make money, the "ad" as we know it needs to evolve along with the technology available to deliver it.  With the growing popularity of mobile devices that are connected to mobile data networks, there is a new opportunity to truly try something new.  Who is going to lead the way?

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Where's The Beef?

I was born in 1980.  I remember lots of things from my childhood.  I remember GI Joe, the Transformers, Mask, the Challenger disaster, Christmas at my grandmother's, and a basic, loud phrase coming from an elderly woman on television: "Where's the beef?"

In 1984, a spot entitled "Fluffy Bun" appeared featuring actress Clara Peller, asking the question, "Where's the beef" upon receiving a massive hamburger bun containing a paltry piece of "beef."  Wendy's used this iconic phrase to poke fun and embarrass competitors such as McDonald's and Burger King, bringing to light the tiny, sliver patties being put into fast food burgers at the time.

Fast forward over twenty years.  The phrase has become part of our American culture, but the origins, and the meaning, have slowly faded away.  Over time, with Wendy's leading the charge, the major fast food restaurants have been offering more items with more natural ingredients.   Now they are upping the ante again, releasing a new line of value hamburgers that aims to one-up category leaders based on quantity and quality of the beef in the sandwich.  In order to do this, Wendy's resurrected "Where's the beef?"  It's a spot-on approach.

In order to bridge the gap between a generation of consumers from the 1980's and the 21st century, Wendy's used today's current retro fashion trends, placing "Modern Family" actor Reid Ewing in a 1980's styled "Where's the beef sandwich" walking down the sidewalks of urban settings.  Along the way, people familiar with "Where's the beef?" give him the proverbial "thumbs up".  The main character doesn't understand the recognition he receives, until he comes up to a sign at a local Wendy's.  Then it all makes sense.  Cut to juicy shot of large hamburger, product sold.

Frankly I think this is brilliant.  We could have seen Clara again.  We could have seen the big bun, small patty.  Instead, what we see is a brilliantly simple connection between two generations.  There's no hard sell, not silly gimmick, just a recognition of pop culture history, and a delicious looking hamburger.

The most powerful messages are sometimes the simplest ones.

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Facebook helps advertisers engage their customers

I'm taking a break from my review of basic marketing fundamentals to discuss something key from the recent Facebook F8 event.

On September 23rd, Michael Lazerow published an article on Adage commenting on Facebook's Ad product evolution.  In his post, Michael comments on three key items:

• Facebook now helps you build better connections
• Facebook can be used to let your customers tell your product's story
• Facebook can help you unlock the value of people

I want to comment more on these ideas.

First, the whole "point" for a business using Facebook is to connect with their customer.  Seems like a no-brainer, right?  Maybe ... but what many businesses assume is that once someone "Likes" their business, they are instantly connected, and their "Likes" will pay attention to whatever they post, even if they post nothing.  "Like" DOES NOT equate to "connecting".  Mr. Lazerow is correct when he says, "It's about what you offer them and it's clear that the company's (Facebook) focus has shifted from growth to engagement" (reference to Facebook added).

Facebook isn't about announcing another product.  It isn't about beating your chest.  It's about posting CONTENT that is relevant to your customer.  It's about GIVING them something that matters. If you sell cameras, post tutorials about photography techniques.  Give them tutorials focused on teaching them to use your product.  Post a 50% off coupon for Facebook members for camera accessories.  GIVE them something that is VALUABLE to them.  Remember when we were talking about Brand Equity in my last post?  Facebook is a great place to build brand awareness and brand equity.

Use your customers to build your brand equity.  Have them tell your product's story.  Have them show and tell others about how they have used your product.  Their voice (positive and negative) carries more clout and emotional credibility than yours ever will.  Continuing on the camera example, inviting users to post their photos from vacations with your camera allows them to share their emotional connection with your product.  Awarding prizes for the best photo taken with your camera helps to strengthen the customer's "bond" with your product and brand.  The "community" built, and the quality of photos submitted (hopefully) will build better brand equity than you could do yourself through traditional advertising via any medium.

Advertising doesn't always "reveal" the fact that your customers have value.  They don't just give you money.  They are a very real voice in the marketplace.  Make them a voice for you.  Facebook (and potentially Google+ in the future) allows you to connect and unlock their value in a way that we never had before social networking existed.  It's time for you to take advantage of it and truly engage with your customer to build your brand equity.

Credit: Adage

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Is Anyone Aware?

One of the items I mentioned last week was Brand Awareness.  What is Brand Awareness?  It is the measure of a consumer's knowledge of your very existence.  The "aggregate" level is the proportion of consumers that "know" your brand.  Why is this "level" even important?  It's important, because the creation of brand awareness is the PRIMARY goal of advertising, and it influences the behavior of the buyers of your product.  However, remember that all of your measurements of brand awareness are, at best, approximations.  They are not exact. The more measures used, the more complete your understanding of brand awareness will be.

Brand awareness is measured "simply" by showing a consumer the "brand and asking whether or not they knew of it beforehand.  Many textbooks have conceptualized brand awareness simply as the knowledge that the brand is a member of a particular product category, such as fast-food.  However, common practice says there is more than one recognition and recall measure, all of which test the brand name's association to a product category cue.

However, "knowledge" doesn't give us much data to do anything with.  So, we use three common metrics that can be measured:

• Brand Recall - Either the brand name or both the brand name and category name are presented to survey participants.
• Brand Recognition - The product category name is given to participants, and are then asked to recall as many brands as possible that are members of the category.
• Top of Mind Awareness - Brand Recognition, but more specifically only the first brand recalled is recorded (called "spontaneous brand recall" by some).

These measurements can be used for creating an understanding of Brand Equity.  Brand Equity is the positive effect of the brand on the difference between the prices that the consumer is willing to pay compared to the perceived value of the benefit received by your product.  The more value, the more a consumer will pay for your product.  Brand Equity is built by brand awareness activities such as advertising, PR, and promotion.  Simply put, the more Brand Equity, the more you might be able to charge for your product.  Higher prices can lead to higher profits.  You're in the business to make money right?

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Brand Audit

Have you ever audited your brand?  Audit?  Isn't that for taxes?  Yes it is.  And it can be unpleasant.  However, audits often weed out the things that need to change in your finances.  Brand audits can show you what may need to change in your branding.

Any good branding audit should:

- Identify branding elements that are out of alignment

- Explain why those elements are out of alignment

- Suggest how to bring them into alignment

Two key elements to proper alignments are clearly defined brand architectures, and properly integrated brand identities. 

In the next few weeks, we will look at brand architecture and brand identities.  Until my next post, sit back, and consider the following questions:

1) Is my brand clearly defined?

2) Is my brand clearly understood in the marketplace?

3) Is my brand achieving the goals it it supposed to be?

4) Does my perception of my brand image match my customer's perception of my brand?

5) Am I willing to take a hard look at what may need to change? 

Going through a brand audit helps you understand the answers to questions 1-4.  Question 5 is simply there to humble yourself to begin this process.

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