Advertisers are looking for ways to connect with consumers in an increasingly fragmented and frankly expensive marketplace
The wild west of content
You’ve heard it called the democratization of content. We’re moving from a consumer society to a producer society. Anyone can build a soapbox. And, some of us, can build an entertainment empire.
That’s the second problem. Not enough critical mass.
Or more simply: Too much choice
We all want different content. The web brings us a seemingly limitless supply. Up against pretty flat demand. Not only does the old advertising model not translate to new consumer behaviors, it doesn’t translate for advertisers' bottom lines either. They can’t routinely get enough of us watching any one thing to deliver a compelling audience share.
According to Nielsen Media Research, in the last reporting period, CBS's prime-time audience was down 2.9%. ABC was down 9.7%, Fox was down 17.5% and NBC was down 14.3%.
We’ve abandoned appointment-TV for downloaded movies; broadcast for cable; the box in the living room for the computer on our lap. We get what we want when we want it – don’t expect us to show up based on the TV guide’s demands. Wait, do they even print that anymore?
Diminishing returns, dwindling investment
If you think publishers are frustrated, you should talk to these advertisers. How do they connect with their consumers when we’re all off in our worlds and fast-forwarding / page flipping / and out-right avoiding even when their ads do come on.
What the law of diminishing returns could not influence, the deep recession has. Now the advertiser exodus, too, is under way. As of mid-February, 71% reported having slashed their 2009 budgets, and 6% more said the cuts were on their way.
How does American enterprise thrive if it can’t connect with consumers?
It’s the under-addressed question in this snowballing crisis. When we talk about consumers paying for content, we skip over how brands get into the conversation. Can we really rely on WOM networks to do the work of mass advertising? Do we all want to turn into blathering mouthpieces for our favorite brands?
The wild west of content
You’ve heard it called the democratization of content. We’re moving from a consumer society to a producer society. Anyone can build a soapbox. And, some of us, can build an entertainment empire.
That’s the second problem. Not enough critical mass.
Or more simply: Too much choice
We all want different content. The web brings us a seemingly limitless supply. Up against pretty flat demand. Not only does the old advertising model not translate to new consumer behaviors, it doesn’t translate for advertisers' bottom lines either. They can’t routinely get enough of us watching any one thing to deliver a compelling audience share.
According to Nielsen Media Research, in the last reporting period, CBS's prime-time audience was down 2.9%. ABC was down 9.7%, Fox was down 17.5% and NBC was down 14.3%.
We’ve abandoned appointment-TV for downloaded movies; broadcast for cable; the box in the living room for the computer on our lap. We get what we want when we want it – don’t expect us to show up based on the TV guide’s demands. Wait, do they even print that anymore?
Diminishing returns, dwindling investment
If you think publishers are frustrated, you should talk to these advertisers. How do they connect with their consumers when we’re all off in our worlds and fast-forwarding / page flipping / and out-right avoiding even when their ads do come on.
What the law of diminishing returns could not influence, the deep recession has. Now the advertiser exodus, too, is under way. As of mid-February, 71% reported having slashed their 2009 budgets, and 6% more said the cuts were on their way.
How does American enterprise thrive if it can’t connect with consumers?
It’s the under-addressed question in this snowballing crisis. When we talk about consumers paying for content, we skip over how brands get into the conversation. Can we really rely on WOM networks to do the work of mass advertising? Do we all want to turn into blathering mouthpieces for our favorite brands?
Hi
I like your blog.
American enterprises, like those in Europe and here in Asia need to understand that the old mass economy model of attempting to position a product in the cluttered mind of the consumer via TV slots that are invasive and increasingly repetitive (read more on the end of positioning here http://brandconsultantasia.wordpress.com/2009/06/05/is-it-time-to-put-positioning-to-bed/) and can be ignored at the press of a remote control button, is not the way forward.
Consumers are now creating communities, Seth Godin calls them tribes, where they all congregrate and talk about specific issues. Brands need to investigate these communities further and develop content that resonates with these communities and offer value to them.
This model will not be driven by the ad agencies, but by the companies themselves.
Once these companies do this, they will become part of the conversation.
Posted by: Marcus Osborne | November 03, 2009 at 11:53 PM