Category: Advertising (page 4 of 4)

Permission marketing?

The attention economy is alive. Interruption marketing is dead. But are we getting permission marketing?

Tony Fish (the Mobile 2.0 man) and I debated the impact of mobile technologies on the attention economy at last week’s Mashup Event. We are particularly intrigued, although not entirely convinced, by the Blyk business model. Having been started by the former president of Nokia, Blyk could not have much better credentials for a new UK mobile phone service, but what are its prospects beyond the initial novelty value?

The concept of the attention economy is that human attention is a scarce commodity and therefore the approach to getting information in front of them is subject to economic theory. This scarcity is amplified by the increasing control we have over the media we consume. For example, simply interrupting the transmission of TV and radio programming with advertising is increasingly frustrated by the features designed in to consumer electronics allowing us to skip the ads.

The cure for this apoplexy of the advertising industry has consisted of product placement, procured content and permission marketing - a term defined by Seth Godin in his 1999 book of the same name. In simple terms, permission marketing seeks the target’s permission to advertise to them. Obviously, the advert has to have real value to the recipient for them to give their permission.

Blyk%20founders

So back to Blyk. The idea… give free SIM cards to 16-24 year olds with which they can make free calls. In return, the Blyk customer must complete a personal profile questionnaire which is used to determine exactly what products and services he or she might like to know about. Blyk then sells this channel to advertisers and forwards the adverts to their customers’ phones.

Is this permission marketing? Godin talks about developing a relationship with customers, “turning strangers into friends, and friends into customers”. To me, Blyk is not primarily about adding value through the content and information, but fundamentally about buying airtime. It may not be paying cash, choosing instead to make a payment-in-kind, but ultimately it is just buying a new kind of media space. I’m into digital photography, but with the day I’ve just had if you sent me an ad for the latest camera it would simply have got in my way.

Advertisers must ask themselves whether this is simply hyper-targeted advertising (of no insignificant value of course), or permission marketing. Isn’t it just simply that young adults want free calls? That’s where the primary value lies, not in the ads.

Interestingly, Blyk may have some big competition soon. Whilst Google has not publicly disclosed any intention to launch a mobile phone service, the fact that their job boards advertise for mobile engineers might betray their ambitions. Could a GPhone follow the same business model?

Mobile Adsense

Just found a press release from Google launching their market-leading Adsense service for the mobile device.

"AdSense for Mobile is intended for AdSense partners who have created websites specifically for mobile browsers, and who want to monetize their mobile content via contextual advertising."

The full release is available here

The new mobile revenue split

So O2 has won the exclusive right to iPhone in the UK; but what a price! With the battle heating up between operators, device manufacturers and content providers to divide the spoils of user revenue, this seems to be a massive concession for a UK operator.

[gratuitous picture of an iPhone... in case you can't recall how attractive it is]

iPhone

Capitulating 40% of iPhone associated revenues can't make sense to anyone vaguely familiar with thin operator margins. Vodafone definitely wasn't having any of it. But maybe this is just a big step along the ultimately inevitable path to complete commoditisation of mobile operations. The time has come for the rise of the device and equally the content now reachable following the relatively recent collapse of the walled gardens. This shift in the landscape also represents exciting opportunities to the marketing communicator looking to extend brand presence into consumers' mobile life.

myChannel

It started with the town crier. Then the daily newspaper. It broadened with radio and then television. Communication now comes at you from all angles – via papers, magazines, journals, radio, digital radio, satellite radio, terrestrial TV, TV text services, digital TV, satellite TV, cable TV, mobile portals, push alerts on mobile devices, newsgroups, websites, RSS newsfeeds, streaming media services and pod-casting.

The choice has become so complex for consumers that there is even a choice of magazines and websites dedicated to helping us make a choice. The selection and diversity will continue to grow but the act of “choosing” is about to change significantly. We are returning to just one channel – myChannel.

This article isn’t just some futuristic dreamscape – there are innovative and concrete services today that don’t just hint at the future, they belie it with an uncanny accuracy. They work. Adoption is widespread and fast. They change the rules.

As communication consultants, we anticipate these developments and adapt our methods and consultancy to our clients accordingly. If Fuse adapts faster than our competitors then our clients prosper, and so do we.

Let’s look at some of the characteristics of the latest communication innovations. It turns out, there are some common threads.

RSS

A recent report from Jupiter Research (“Addressing Market Opportunities with an Innovative News Medium”, 11th March 2005) quantifies RSS penetration by consumers at home at 12%. The primary advantages RSS delivers the users are:

  • Choice – the user can pick and choose specific newsfeeds one at a time, and subscription to lists of feeds with a common theme (eg, technology news, health, education) is increasingly popular. With the advent of endeavours such as attention.xml, consumers may associate themselves with peers whose opinion they value to allow news of potentially higher interest bubble to the top
  • Collation – multiple sources are centralised for the user’s convenience
  • In your own time – the sources can be examined at any time
  • Filtering – the sources can be examined in any way.

Pod-casting

As with all successful mass-market electronic devices, the ways in which the Apple iPod is put to use has extended beyond the original vision of its creators. Pod-casting is one such application of the iPod.

Quite simply, pod-casting is the downloading of often transient audio material from the Internet and transferral to the iPod for listening to later. The material can be specifically sought, or a regular source can be downloaded and transferred automatically as it becomes available – general news, specialist news, and audio magazines. Of course, pod-casting can be defined as “audio RSS”, and this will develop to “audio-visual RSS” as more mobile devices permit video storage and play.

The primary advantages to the user:

  • Choice – the user chooses what to listen to and when, rather than being dictated to by broadcast schedules and reception (London Underground doesn’t offer ideal radio reception, nor is Radio 4’s Today programme easily picked up in New York)
  • Collation – multiple sources are centralised for the user’s convenience
  • In your own time – the sources can be listened to at any time
  • Filtering – only download what you want, and skip through that too (watch out for audio-visual search technologies such as Blinkx)

On-demand digital radio

Digital radio is offering greater choice and clearer reception, and innovative services enabled by companies such as Otodio will soon tempt listeners with a diverse selection of on-demand programming. Listeners have choice in their own time.

On-demand platform-agnostic video

A new era of video distribution is being chimed in with the increasing success of super-fast consumer broadband, such as the 8Mb service from UK Online, the Personal Video Recorder (PVR) as pioneered by TiVo, and Video on Demand (VoD) services, such as from Video Networks. The term IPTV is being bandied around (TV over IP) to describe what would otherwise be labelled television on demand.

The primary advantages to the user: choice, in your own time with filtering.

myThis and myThat

Websites are becoming increasingly flexible in enabling visitors to customise their content preferences and in anticipating user needs intelligently (see Touch Clarity). This trend is compounded as users’ expectations grow to the extent where mass personalisation has become a ‘qualifying’ rather than ‘winning’ criteria. The advantages to the user include choice (of the most apt personalisation), collation, and access in their own time and filtering.

One channel, or infinite?

So there’s a common theme here. The user, the recipient of news and information, the listener, the viewer, the inter-actor, has been empowered to set the schedule. It’s what they want, when they want it and how they want it. They have one channel (at least they will have when future technology converges the channels described here) and they own it. It is myChannel.

But what are the ramifications for those trying to get their news or their clients’ news on to myChannel? The impacts will be manifold and include:

  • Considerably more fragmentation of the target audience of communications campaigns
  • Less precise timing of delivery
  • Increased opportunity to provide niche information
  • Less certainty of how each recipient is receiving the information
  • Greater opportunity for innovation in inviting and securing interaction
  • The need for new mechanisms for gauging campaign success.

 

The word “broadcast” is being resigned to history – there just won’t be a communication medium that has the breadth to be described as “broad”. Intelligent and insightful PR consultancy has never been so critical to organisations striving to communicate effectively to a mass audience seeking to exert selectivity in the face of too much information, too much choice!