Posted by: Michael Boland
Program Director, Mobile Local Media
Mediaweek’s Katy Bachman was front and center at this week’s Winning Media Strategies conference in Washington D.C. (thanks for all the questions from the front row Katy).
She wrote yesterday about BIA/Kelsey mobile forecast data and some themes that emerged throughout the show — Many broadcast media companies showed a clear interest in mobile and in the “three screen” strategy. See her writeup here.
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Posted by: Peter Krasilovsky
VP and Program Director, Marketplace
Broadband is at the top of the agenda for the Obama administration and the FCC, with digital TV a close number two, according to influential Washington lawyer Dick Wiley, who was speaking at BIA’s Winning Media Strategies.
Broadband is going to be “the big one,” with a special focus on underserved, vulnerable parts of the population, said Wiley, who sites as one of DC’s pre-eminent communications lawyers after serving as FCC Chairman 30 years ago. “Unfortunately, that isn’t clearly defined,” said Wiley, but a lot of money –$7 billion –is being thrown at it. He noted that $2.5 billion is earmarked for The Rural Utility Service of the U.S. Department of Agriculture, with the impact of making this relatively obscure division a major player in communications policy.
The second big issue for the administration is Digital TV, which is finally getting the big switchover from analog signals on June 12 after 22 years of policy development, noted Wiley. Enormous opportunities lie in wait with digital for broadcasters in business, and in regulatory relief. Broadcasters can use digital to extend their core competency in wireless communications and localism, he said. “Here is a area where being a broadcaster is a plus.”
Wiley also said that he didn’t see the Fairness Doctrine coming back, but that there may more restrictions on embedded advertising.
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Posted by: Mike Boland
Today the Winning Media Strategies conference kicked off in Washington D.C.. One of the fruits of the BIA/Kelsey marriage, it’s bringing the Kelsey conference format to BIA’s longstanding audience and constituent base in local broadcast media.
One thing that stood out as a theme throughout today’s sessions was mentions of the mobile opportunity. This was mostly discussed in terms of how the mobile device can extend the viewing or listening audience in an incremental fashion
“Building on a mature media platform, mobile has the ability to extend home-based viewing,” said NBC Universal VP of Technology Standards and Policy Glen Reitmeier.
This comment reminded me of data I saw recently from MobiTV, indicating that 85 percent of mobile video viewers report watching more TV. In principle, its also similar to comments made later by Arbitron Exec VP Pierre Bouvard that online radio listeners aren’t reporting any detraction from the amount of terrestrial radio they’re listening to.
Back to mobile, its opportunities with broadcast media are further supported by looking at the fact that both are delivered over the air. Regulatory and technology barriers stand in the way of mobile devices receiving broadcast signals, but we are starting to see some companies such as MobiTV (carrier delivered subscription service) and uStream (iPhone app) move in that direction.
“When we talk about mobile, for once, here is an industry that is a plus for [broadcast],” said Dick Wiley, Partner at D.C. Law Firm Wiley Rein. “We’re going to continue to see improvements in storage capacity for immediate viewing and playback. Getting content wherever and whenever will be something that is well tailored to younger viewers.”
We’ll pick up the discussion tomorrow in a session devoted to many of these topics:
How Broadcasters Can Get the Local Edge in Mobile
What are the opportunities for broadcasters in local mobile media? Well start with the BIA/Kelsey forecast of the advertising revenue growth in local mobile media to 2013. Well identify specific opportunities for broadcasters in new parts of the advertising pie. This includes local content, mobile video, messaging and even interactive applications for mobile devices. In addition to advertising revenue models, subscription revenue models are also explored. Broadcasters can leverage local content, local sales forces and develop cross platform media campaigns to add unique value to their sales and marketing solutions.
Speakers:
Sam Matheny, General Manager, News Over Wireless
Ivan Braiker, CEO, HipCricket
Michael Boland, Program Director, Mobile Local Media, The Kelsey Group
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Posted by: Peter Krasilovsky
The use of online video, social networking and mobile services have “exploded”in the past year, and Internet radio is a big contender to join this group in 2009, according to Arbitron Executive VP of Sales Pierre Bouvard, who was speaking at BIA’s Winning Media Strategies conference in Washington D.C.
Online video popped like the Internet popped in 1999,” says Bouvard, noting that it went from 18 percent usage to 27 percent, or 69 million. A second pop is the devotion that consumers have for their cellphone. And a third pop will be with Internet radio this year.
The latter will see usage by 17 percent of Americans, or 42 million. “They aren’t kids. They are 25-54 (years old) and 45-54 is the biggest age sell. “It looks like the big radio demographic,” says Bouvard. “These folks are more likely to be full-time employed, have upper income salaries, and college degrees. The sweet spot is people at work,” which has become an extension of morning drive time. Bouvard adds that people listen to Internet radio for variety and control; few commercials; and its clear signal.
Social networking is also taking off. “Kids were there last year, with over half of 12-24 year olds using one of the services. But look (this year) at 55-64 (year olds).It comes on like a freight train.” Still, Bouvard says it is important to keep in mind the high percentage of people who are not using social services. While Facebook has gone from eight percent to eighteen percent, “that means that 82 percent don’t use it,” he says.
One service that has had more mixed results is video on demand, which has only “moderate” use. Thirty nine percent tried it once, 18 percent used it “last month, and one percent last week,” says Bouvard. It compares poorly compared to the dynamic interest and passion that consumers have for cell phone services, such as getting music on cell phones, maps and video. These results lead Bouvard to conclude that major distributors such as Comcast, Verizon, AT&T and Cox should focus more on mobile applications and less on interactive television services.
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Posted by: Peter Krasilovsky
New digital technologies using ATSC-DTV standards are redefining the TV experience and enabling new business models, says Glenn Reitmeier, VP of Tech Standards and Policy for NBC-Universal, who was speaking at BIA’s Winning Media Strategies conference in Washington D.C. “We are at a really exciting phase” akin to General Sarnoff’s use of radio receivers to redefine the radio industry.
Reitmeier says that what we’re seeing is a new software-based environment that acts as “an application framework” allowing such features as conditional access, subscription pay per view, digital rights management content downloads. When that is combined with interactive channels, a whole new world opens up, including voting, social networks, ecommerce and targeted ads.
The advances will enable broadcasters to reclaim their fundamental advantage by 2015, says Reitmeier. But it isn’t about the home TV. Fundamentally, consumers just want content on any screen. Devices such as video enabled phones are exploding, helping achieve growth from this “very mature business.”Non- real time services are also an important part of the equation, including on demand and cllipcasting, targeted ad insertion, and location based preference codes.
Mike Bloxham, Director of Insight and Research at the Center for Media Design at Ball State University, speaking on the same panel, continued on the same theme. Indeed, a recent study by The Center quantified 65 different categories of media consumption using four types of screens: TV, computers, mobile and “other,” including GPS, in-screen navigation etc.
While digital has added diversity at every demographic, Bloxham is quick to note that live TV still dominates and is used 318 minutes per day on average. That includes more than an hour of commercials – more time than is spent viewing news.
Pundits who have written off live TV in favor of the Internet, game consoles and Digital Video Recorders are getting ahead of themselves, he notes. It hasn’t happened yet. Those media are used far less. “Television is a very solid business for many years to come,” says Bloxham.
At the same time, “television” now consists of a mish mash of each platform. There are no ‘TV companies’ anymore, he says. “There is ‘platform promiscuity.’ Consumers don’t care in the slightest if programs coming in via telcos, mobile whatever. “
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Posted by: John Kelsey
Founder of The Kelsey Group
E-mail: jkelsey@kelseygroup.com
Don’t take The Kelsey Group’s word for the fact that more marketers are switching some of their advertising dollars into the Internet. Here’s what eMarketer wrote a week ago. “In the wake of the global economic downturn, marketers worldwide are shifting more of their budgets into cheaper, more-measurable categories.” The fact that eMarketer actually put those words into an article can only be traced to the fact that it got some hard numbers from the Society of Digital Agencies. It is no surprise that “81 percent of respondents said they plan to invest at least as much in digital marketing in 2009 as in the previous year.”
Happily, eMarketer backs up these figures with another study by Ad Media Partners. The research shows that marketing executives are planning to increase digital spending in social media marketing (77 percent), search marketing (76 percent), mobile marketing (75 percent), behavioral marketing (70 percent), lead generation (63 percent), video advertising (60 percent) and e-mail marketing (58 percent).
EMarketer sums all this up by pointing out that “the combination of accountability, conversion and the infusion of digital media into every facet of life makes the future look bright — for marketers making the move to digital.”
Anyone in the radio or television broadcasting industry who needs to understand how to best take advantage of digital media needs to be at the Winning Media Strategies conference to be held May 20-22 at the Marriott Wardman Park in Washington, D.C. The Kelsey Group and BIA Advisory Services have put together an event that will pay incredible dividends to those broadcasters willing to make the small investment of time and money.
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BIA/Kelsey forecasts local ad spend on local media to decline from $155 billion to $144 billion in the 2008 to 2013 period with tradtional media like radio, TV, newspapers taking the biggest hit. Growth will come in the digital, online and mobile ad segments. We’re advising traditional media companies to have a strong strategy with an integrated execution. By strong strategy we mean a plan that is well thought in terms of understanding your mission, resources and time frame. If you want to grow revenues, change won’t happen overnight. It will take training, metrics, management and milestones to assess progress. Integrated execution means having a sales team that has a deep understanding of the competitive marketplace because you will be competing against all media with digital, online and mobile offers not just your traditional category competitors, e.g., other radio or television stations. So your sales and marketing efforts must be driven by creative packaging of client-driven solutions.
It’s not enough to just have a web or mobile presence, it really is about having an overall strategy and how you execute on that strategy that determines “success” versus “also ran.”
We’ve got a great line-up of speakers at Winning Media Strategies 2009, May 20-22 in Washington, DC that will provide insights, information and case studies to help you develop your strategies and plan your integrated execution when you get back to work!
Rick Ducey
Chief Strategy Officer
BIA Advisory Services
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Posted by: Peter Krasilovsky
Vice President and Program Director, Marketplaces
BIA/Kelsey
In case you haven’t seen any of the materials, Kelsey’s new parent company, BIA, is launching Winning Media Strategies, its first full-fledged conference. Developed by BIA’s Rick Ducey, who previously was the head of research at The National Association of Broadcasters, the conference is geared to provide broadcasters, cable TV and newspaper execs with practical strategic tips from leaders that have a “winning” track record.
Broadcasters, in particular, haven’t been as engaged in local online, online video and wireless development as you would think, given their highly leverageable strengths in each area. This conference is set to get them going.
During the event, there will be special discussions from such media luminaries as Emmis Radio’s Jeff Smuylan, The USC Annenberg School’s Adam Clayton Powell III (a pioneer in computer journalism), Sezmi’s Bruno Pati, HipCricket’s Ivan Braiker, Genius Rocket’s Mark Walsh (”Mr. Vertical”), Greenspun Interactive’s dynamic duo of Chris Jennewein and Rob Curley, AOL Search’s John Kanapell , my former colleague Gordon Borrell, and Lynda Chlorizo, who recently left the helm at AOL’s Platform A (and should have plenty to say about online advertising).
The conference also takes advantage of its location at a historic landmark hotel in Washington’s leafy Woodley Park to provide assessments of how regulation and legislation may impact media during the Obama administration.
It’s a funny subject. I first moved to Washington in 1986 because legislation and regulation was more important than technology for media innovation. That obviously changed by the early 1990s, but new initiatives by the Obama administration should have some impact.
Former FCC Chair Dick Wiley, who many consider the most influential figure in the DC Media regulatory world, is heading up the discussion here. All in all, it should be a thoughtful, useful and stimulating event. You can register here.
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