Hyper-Fragmentation

The Growth of Personal Media

The New World of Personalized Media

1. What is Personalized Media?

2. Current situation

3. How can marketers co-exist?

Personalized Media

• Traditional media landscape is changing

• Technology is morphing “traditional media”

• Individualized, on-demand, media world

Personalized media =

Instead of changing the channel why not create a new one?

Television

Television has problems

Why is 60 Minutes actually only 42 minutes long??

What is a DVR (PVR)

DVR (Digital Video Recorder)

aka Personal Video Recorder

Records TV broadcasts on a hard drive which can be played back at a later time (this is known as “time

shifting”). The most well known DVR is TiVo

• The couch potato’s ultimate anti-advertising weapon

DVR’s and Advertising

• US Study– DVR users watch more TV– Skip through 92% of commercials

• Earlier this year TiVo began showing 4 second static images

TV as a Live Action Catalog??

Streaming Video

Streaming Video

Video content sent in a condensed continuous stream which is immediately displayed when it arrives. Users do not have to wait while it downloads.

RADIO

RADIO has PROBLEMS

• Too many commercials

• Don’t like any of the stations

• Too much chit-chat

• Not enough good music

• Poor reception

The New and Improved Radio??

SatelliteDigitalPodCasting

• Nationwide coverage, Crystal clear

• Original programming – with no restrictions

– Commercial free music

Is Satellite the cure for what ails Radio?

Satellite Radio – Vehicle, Home, Everywhere

JVC KT SR2000

POLK AUDIO SRt12 Tivoli Model Satellite

AUDIOVOX SIR-PNP3

Delphi FM SkyFi2

Delphi MyFi

Digital Radio (HD Radio)

• Analog radio with no reception problems

PLUS. . .

• Multimedia capabilities– Text– Pictures– Data– Video

Digital Radio

The ability to send multiple digital signal on almost the

same frequency

The iPod Nation

PodCasting

Podcasting

A process that puts audio files (podcasts) online and allows software to find & download the files to a computer or personal medial player (MP3).

Podcast

Programs that you can download to your computer or your personal media player and listen to at your convenience.

Now, anyone can be a content provider

Editorial Media

The BLOG

Blog – (weB LOG)

A blog is a journal that is available on the web. Blogs are typically updated daily using software that allows people with little or no technical background to update and maintain the blog. Blogging - updating a blog Blogger - someone who keeps a blog

Easy as 1 – 2 – 3

Everyone’s a Publisher & Everyone’s a Critic

Feeding Frenzy

Ultimate “Word of Mouth” Channel

Current Situation

Timing: nowBarrier: cost of entryUSA• Initial fast start – 10% HH (11mm)• Bullish growth estimates may be exaggerated• User-friendly TiVo dominates: $200 for hardware, 1x set-up $299

Canada• Rogers, Shaw, Videotron, Cogeco all offer service • Currently in 4% of HHs (0.5MM)• Growth slower due to complexity + price

– TiVo has no plans to sell/maintain its hardware in Canada– DVRs: $700 hardware + monthly subscription + digital + HDTV– Microsoft Media Center could blunt competitive edge

Digital Video Recorders

Timing: 2006Barrier: limited distribution• Interactive TV is back, thanks to Digital TV• Navic in the US and etc.TV in Canada• Both offer enhanced viewing features:

– Interactive voting– Access to “telescopic” ads

• etc.TV begins tests in Quebec next month, potential national roll-out 2006

Interactive TV

Timing: imminentBarrier: lack of advertisers• To date, video messages attached to start or end of content• Now it is possible to insert content in midstream• Allows for the monetization of content over the Internet• Target ads by age, gender, education, income, even name• Target a single household, or the entire world• Content readily available on a royalty-per-user basis• Will dramatically impact all current forms of commercial video

entertainment, as well as upset global distribution channels• Future may not be a 500 channel universe after all, but a single

channel with every form of video content imaginable

Streaming Video

Timing: Canada Q1 2006Barrier: cost of entryUSA• 9.2mm, 3% penetration - XM = 6.1mm, Sirius = 3.1mm• Expensive: portable unit = $300, stereo upgrade unit = $70-300• Monthly subscription = $12.95 for 100+ ad-free channels• Gaining momentum: offered as an option by most auto makers,

on board some aircraft, at some hotelsCanada• 3 licenses approved in June, appealed almost immediately,

upheld last month• Likely to be more regulated than in US• Sales/services to commence 2006

Satellite Radio

Timing: here nowBarrier: cost, content• Vancouver stations already broadcast digitally• CD-quality reception plus added enhancements (text

+ video features)• Sets still expensive vs conventional• Against iPod and satellite, not likely to gain huge

market share• Ferrari on a dirt road

Digital Radio

PodCasting

Timing: here nowBarriers: few• Low cost of entry for users and ’casters alike • The big deal: total deregulation• Something for all possible tastes• Unhindered by CRTC• First podcast: summer 2004• 3,500 podcasts within 6 months• Last count: 6,000 active podcasters in existence• Some are already accepting paid content

PodCasting

• PodCasting still in its infancy• Podcatching still with ‘early adopters’• Not yet a threat to big radio, but check back in a year• Tipping point has just occurred: ‘pushed’ podcasts• Public radio (BBC, CBC) sees it as another channel• Commercial radio still figuring it out• Proving that anyone can do it, CPAC will be making

available House of Commons Question Period• WTF???

Timing: here nowBarriers: none• No geographic or technological obstacles• Virtually no restrictions on subject matter• Millions of blogs even back in 2001• Technorati tracks 19,000,000 blogs• 147,000 of them address how many exist in total• 87,000 new blogs launch every day… 1/second• But: just because it’s printed doesn’t mean it’s true• Vast majority have limited credibility, even more

limited audience

Blogs

How Can Marketers Co-Exist?

Working with DVR/Interactive/Streaming Video

Make Better Ads (DVR/Interactive/Streaming)

• Earn the right to be viewed• Some ads earn re-runs: 34% re-watch funny ads,

20% interesting ones, 32% if interested in product

Make 4 Second Ads (DVR)

• TiVo offers on-screen logo placement as viewers zip past ad clusters

Make Web-enabled Long Form (Interactive, Streaming)

• “for more information, click”

Brand Your Own Channel (Streaming)

• Attract your target with content they want• Clickable links in screen “skin”, in program

Product Integration (DVR/Interactive/Streaming)

• Make your brand a part of the experience rather than a distraction: 24 and Ford

• Ideally, brand is fundamental to the program content: Queer Eye for Straight Guy

• Intrusive, obvious product placement is no longer welcome. i.e. The Restaurant, Apprentice

Working with DVR/Interactive/Streaming Video

DVR/Interactive/Streaming

DVR/VOD/Streaming

"Who's gonna turn down a Junior Mint? It's chocolate, it's peppermint -- it's delicious!"

Product Integration

Why was Seinfeld the Master of this Domain ? • Product was not necessarily the hero• Completely Free – pre-dated paid placement• Will live on in endless syndication, DVD

DVR/VOD/StreamingProduct Integration

Working with Podcasts

Offer Downloads• Heineken

– Podcasts of popular DJ’s as part of a promotional campaign

• Warner Brothers– Testing – and learning – from its foray into

promoting films via podcasts (Paris Hilton House of Wax low production value flop)

• Mercedes Benz– Free “mixed tapes” released bimonthly– Music best heard on Mercedes audio system,

focus-grouped against target epicenter

Working with Podcasts

Be the content• The Dawn and Drew Show - Wisconsin • Started as recordings of pre-bedtime conversations• Available via PodShow Network, audience has grown

to 200,000+• Accept paid content – but not like traditional content• Trojan Condoms - live, on-air product testing• They are truly “playing what they want” - try that on

JackFM

Working with the Blog

Three options:• Pay for “copy”

- can you handle the truth? • Create a Blog

- have something meaningful to say • Buy banners on popular blogs

- perhaps a tiny audience, but niche targeted

Call Fred Fabro

604.837.0400

Working with the Blog

Consumer insights from the blogosphere• Think of blogosphere as a giant focus group• Find out what people are saying about your

company, your products, their needs and wants• Intelliseek, BuzzMetrics provide sophistcated

analysis of blog universe for corporate clients• Google yourself on Technorati or Feedster:

- “(your company name) sucks”

Can We Co-Exist? Yes, but…

• More then ever, the medium is the message• Commercial messaging must work with the

medium, not against it• The key is assimilation not domination• Don’t hijack the medium – fit in in an organic,

non-intrusive way• Must provide content in which the exchange

value outweighs the annoyance value

We’ve barely scratched the surface…

• Cellular TV• SMS marketing• VoIP• Video gaming• Countless other emerging technologies

• Personal media is emerging, not emerged: expect some to fail, some to morph, all to evolve

• Take first-mover advantage; test, learn, watch, test again

• Audience reach will be measured in hundreds and dozens, not millions – but exposure is now active engagement

• Mass media is not dead, just receding somewhat as new media develop.

• Embrace Personal Media: the rate of change can be overwhelming but the opportunities are amazing

• 2014 isn’t far away!

Concluding thoughts…