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BCS Football on ESPN: Another Blow to Broadcast TV

Right on schedule, the garbage bowl games keep rolling out across ESPN, ESPN2 and ESPN3.com.  Fine, some of them are “intriguing match-ups” – I’m still not paying any attention to them.

The Bowl Championship Series games, though, are definitely worth sampling … with the obvious exception of Oklahoma versus Connecticut in the Tostitos Fiesta Bowl (automatic BCS berths are a true shame – Michigan State or Boise State should be in that game instead of UConn).  TCU versus Wisconsin and Auburn versus Oregon are both insanely promising on paper.

Sadly, though, I won’t be seeing a single down of a single BCS game this year.  I won’t see any next year, in 2013 or in 2014, either.  Why not?  Because they’re locked behind the paywall of a cable or satellite subscription.  I found no reference to online viewing through Google, Bing or ESPN site searching, so I presume that they’re either unavailable online or that there will be a subscription structure similar to Time Warner Cable’s deal with ESPN to deliver Monday Night Football online.  Regardless, there’s a cost barrier.

BCS logo, Bowl Championship Series logo, college football, national championship

BCS Football on ESPN: Another Blow to Broadcast Television

In November 2008, FOX and ESPN were battling for four years of BCS rights (2011-2014).  FOX’s offer peaked at around $100M/year.  ESPN won with a bid closer to $125M/year, for which they’re granted TV, radio, digital, international and marketing rights.  They’re even running the BCS website.  Here’s a little background about the battle and the conquest:

I missed this story in 2008.  It only came to my attention as New Year’s Day 2011 nears and I began assessing my college football viewing options.

My reaction to the BCS move to pay television passed from mild anger and disappointment through nostalgia to acceptance – this process took about 10 minutes.  The initial reaction was based on the fact that I only watch free, over-the-air broadcast television in beautiful high definition – the cleanest signal one can watch.  Our only content subscriptions are for a handful of magazines and for Netflix.

  • Note: I watch very little college football during the regular season, but I do like these end-of-season, cross-conference games between our nation’s best teams.
  • Also note: I grew up watching Big Ten football, am a University of Michigan alumnus and have seen many Rose Bowls (most of them ugly).
  • Final note: the Rose Bowl, “Granddaddy” of them all, has been broadcast free, over the air to the entire nation through broadcast networks since 1952; this run is now over.  Though ABC committed $300M over 8 years for the Rose Bowl through 2014, a clause in the ESPN deal allowed those games to be locked behind the paywall, too (ABC is the parent company of ESPN).

Some consequences for ABC/broadcast networks:

They maintain schedule continuity.  Football games interrupt normal schedules, are live and therefore unpredictable, often run long and require contingency planning.  I’m not sure that this is a positive or negative consequence; have you seen the broadcast network lineups?

They lose live, mass-audience events.  As internet delivery, advertising alternatives and reduced ad budgets continually encroach on broadcast, cable and satellite revenue potential, live event programming continues to be a strong point for broadcast TV.  The Super Bowl keeps setting viewership records.  The Oscar, Emmy and Grammy Awards broadcasts have all enjoyed very good rating results in recent years.  Mass is not just the strength of a broadcast network, it’s also its entire purpose.  This is a negative consequence.

They lose strong promotional platforms to support or launch the comedies, dramas and reality shows of which their prime time lineups are built.  Reaching young men through mass media has been difficult for more than a decade; college football gathers a mass audience with a strong concentration of this elusive target.  Given, most of them will ignore the network promos in commercial breaks.  Those pop-up animations under which the football announcers must uncomfortably read promo copy?  Can’t miss those, even if we ignore their calls to action.  This is a negative consequence.

Some consequences for ESPN:

They reaffirm their unbreakable lock on the image of “sports.”  They alone own it.  They own it outright.  ESPN is synonymous with and inseparable from sports.  They are access, analysis and all other things “sports.”  This was never really in question (a quick nod to, then chuckle at FOX Sports Network), but this contract is another pioneering achievement that fits perfectly with their entire reason for existence.  Specific to this situation and contract, ESPN completely owns every aspect of the Bowl Championship Series right now.  All consequences for ESPN are completely positive.

Some consequences for the BCS:

College football may lose a bit of cultural currency.  New Year’s Day belonged to college football; it took over all the broadcast networks all day.  Even as bowl games proliferated and bowl eligibility and invites became far easier for a team to come by over the past decade, all the best games remained on broadcast.  This is over.  Though power comes through focus, targeted delivery makes your offering easy to miss for peripheral fans and viewers.

To illustrate, here’s a snapshot of ratings results for NFL football relative to the Monday Night Football move from ABC to ESPN.  The single highest cable rating ever (15.3) was achieved with the Vikings-Packers Monday night game on ESPN in October 2009.  The best season of MNF on ESPN ever averaged a strong 10.4 rating (2009).  For reference, though, the lowest rating ever achieved when MNF was broadcast on ABC was a not-too-shabby 7.7 (Rams@Bucs, October 2004).  I could not find the lowest rated MNF game on ESPN.

The broadcast void from this MNF move from ABC to ESPN was filled with the inception of Sunday Night Football on NBC.  Obviously, the NFL recognizes the need – or at least benefit – of a prime time network showing.  SNF did not disappoint; it consistently delivers double-digit ratings, typically wins the weekly TV ratings race overall and has beat that highest cable rating ever (15.3) a half dozen times.  Per Ad Age’s “Annual 2011” issue, the average cost of a :30 commercial in SNF ($415,000) is $150,000 higher than an ad Glee and $210,000 higher than one in Dancing with the Stars.  By this measure, it’s the most valuable show on television behind American Idol.

Same product, similar packaging, different delivery – NFL football reaches more people on NBC than on ESPN, despite the fact that a Sunday night game concludes a long day of football while Monday night is a stand alone event.  A paywall blocks out casual fans.

All that said, this is only a slightly negative consequence that washes out when you consider the incredible strength and focus that ESPN provides.  The entire delivery and marketing of the Series falls under one roof – and that roof belongs to the world’s premiere sports brand.

The Bottom Line:

There’s no other way this could have gone.  It was a two-way race and the winner, ESPN, provides more money and more momentum for the BCS (through a focused brand and a comprehensive delivery and management offer).

The BCS on ESPN, though, is another blow to broadcast television.  Without live event programming, networks are playing to lose.  The broadcast revenue model depends on mass.

Had the contract instead been awarded to FOX – even at its lower price – the BCS would certainly have been a loss leader for FOX financially, just as Sunday Night Football is for NBC.  Still, these are the events that keep broadcast networks relevant as bolder concepts and smarter niche plays move to cable and satellite networks.

Related: the March Madness contract now spreads college basketball games across three cable networks in addition to CBS so that all the simultaneously played, early round games can be viewed live.  CBS, however, remains the sole spot for the final two weeks of play, including the entire Final Four.

Last Request:

I’ve not seen SportsCenter in a few years, but I can’t imagine why this offensive practice would have ceased.  ESPN: if you’re still running Dancing with the Stars highlights in SportsCenter, please stop.  It’s a ridiculous, shameful and transparent pitch to your parent, ABC.  The only time I want to hear about a former NFL player like Emmitt Smith is when he’s welcomed to Canton or, perhaps, in a highlight-for-highlight comparison showing how he was almost as good as Barry Sanders.

Gary Vaynerchuk on Being a Good Human

Reading “Crush It!” set me on a short course of watching some of Gary Vaynerchuk‘s live presentations and interviews.  This one, from RailsConf 2010, was one of the more comprehensive in terms of conveying who he is, what he’s about and what he’s currently thinking and doing (though it’s from June).

I posted it to my Facebook page, but it got no likes or comments.  I get it – you had no idea what it was about and didn’t want to bite off an hour of the mystery behind door number 2.  So, I decided here to provide multiple in-points to encourage some viewing.  Find your topic and jump in wherever you’d like.

A few notes off the top: Ruby on Rails is a web app framework developed by 37signals.  This gives the conference its name; it’s a Ruby developers conference.  Vaynerchuck refers to “freed” and “DHH” a few times.  These are the leaders of 37signals, Jason Fried and David Heinemeier Hansson.  (Read my short review of their book Rework here).

Though he’s speaking to a group of developers, it’s a talk – plus a great Q&A session – about marketing, branding, social media and general business.  The guy really loves life and loves people, so it transcends these topics regularly.  In this way, it moves toward life, philosophy and being a good human.

Here are your in-points:

2:00    Family emigration from Belarus to US

3:35    Entrepreneurial start (lemonade stands and baseball cards)

4:40    Doing awesome – 13 year old with six grand under his bed

5:40    Goonies reference

7:10    Collecting wine = collecting baseball cards

7:50    Brand damage from being part of co-op/franchise

11:45  Finding happiness in community

12:30  Getting repped by CAA

13:15  New book: “The Thank You Economy”

14:50  Building long-term, real relationships, beating competitors on culture (Zappos/Amazon)

16:40  Consulting with big companies, trying to help them get in on conversations

17:40  If one person follows you, you should be ridiculously thankful

18:10  Riff: “If I get a hundred more followers, I’ll donate $100 to Haiti”

19:30  Shout out to his great, great grandchild (writing your legacy right now)

22:00  Becoming self-aware, showing people who you are

22:45  Huge Twitter fail

23:50  Work your face off, be thankful, have gratitude

25:40  Gatekeepers controlled the game forever, now lost the keys, we can go direct to consumers

26:50  Freemium debate, app culture opens the door to begin charging

28:30  Q&A starts

31:20  Why it’s difficult to impossible right now for big companies participating sincerely in online conversations

34:15  Killing on cost effectiveness of traditional media – outdoor, print, TV, “Don’t even get me started on fucking Nielsen”

37:00  Why our elders are more properly positioned to be successful in 2012 and beyond

39:30  Rework and Crush It book deal customer, nice story of community support – results in a hug at 41:10

42:15  “It was very tea and rock climbing in 2006”

42:40  Why he’s going to jail soon

44:00  Who’s trying harder than him (hint: no one)

44:50  Quoting Jay-Z

45:30  Customer complaints as a gift – results in kiss at 45:50

47:10  Why the corporate game is built not to do this

49:00  Why you need to taste things

49:30  Rocky 4 winter training reference

50:30  Why he loves old people and what matters to them

51:30  Revisiting freemium debate

53:40  Why he’s backing off speaking

55:40  Overlooking the good in favor of the bad

56:40  The “shark and hippo thing”

1:00:20  Why he showed someone his tax returns at Starbucks

1:02:10  “I’m bullish on human beings”

Here is the video, compliments of O’Reilly Media by way of YouTube:


The Mesh: Marketing, Environment, Culture

For a class I’m taking this semester in the MBA program at the University of Colorado-Colorado Springs, I got to choose and review the online marketing book of my choice.  The deliverables included a formal book review, a blog post, a video and an in-class presentation.

With my first two choices gone (David Meerman Scott’s The New Rules of Marketing and PR and Hubspot’s Inbound Marketing), I turned to Rework from the guys at 37 signals.  Rework turned out to be a little too general business for the purposes of the class, but I did write it up here earlier.

Fortunately, a brand new, big idea book was recommended by Seth Godin as I was still in search mode.  I ordered, read and reviewed The Mesh: Why The Future Of Business Is Sharing by Lisa Gansky.

book, business, marketing, online, social, mobile, GPS, businesses, share, sharing, share platform, access, ownership, Lisa Gansky

Cover: The Mesh

The Mesh was very obviously a labor of love for Gansky, whose personal and professional passions are evident in the book’s concept, premises, tone and style.  The describes her vision, illustrates it with examples and backs into the broader driving and enabling trends making Mesh businesses and strategies possible and advantageous right now.  It’s this drawing together of otherwise disparate observations that makes her book feel so fresh.

I’ve already written a review and collected several links for the class blog post.  Here, I thought I’d take a minute to observe how it so nicely connects the themes and sub-heading of this blog – marketing, environment and culture.

Marketing The Mesh argues in favor of a business model that both threatens traditional companies and creates opportunities for new ones.  A Mesh company or a Mesh strategy employs: a core offering that’s shared (access rather than ownership); web, social and mobile networks; increased customer interactions; increased layers of information and analysis of data; and offers that are more and more timely, relevant, personal and location-based.

Think Netflix versus Blockbuster.  Both rent DVDs, but Netflix is, at its core, an information company dedicated to making it easier and easier for customers to find, watch and review movies and television shows.  Meanwhile, Blockbuster is in bankruptcy protection.

Zipcar was another key example in the book.  With your mobile device, you can locate, select, reserve and unlock one of dozens of individually-named Zipcars parked around your city.  Each transaction provides data about who, when, where and how long the car is used.  Zipcar’s partnered with all kinds of other businesses in complementary ways to provide more – and more personalized – value to each customer.

Environment One of the underlying themes behind the share concept is an increasing population and limited resources.  The increasing population is also increasingly urban; this density is required for share platforms to scale properly.  At the same time, it’s clear that our disposable consumer culture is unsustainable.  Mesh companies need highly durable goods from their suppliers.  Through frequent and repeat use of shared goods and real-time data collection, Mesh businesses will understand each product’s strengths and weaknesses, like when and how it’s likely to fail.  While demanding greater durability from suppliers, they’ll be in a unique position to provide information to aid in that mission.

Culture There are many broad, cultural themes in The Mesh.  For example, acceptance and adoption of share platforms requires a shift away from ownership toward access and sharing.  Gansky also covers customers as communities within the same share platform.  So many of the factors that permit the Mesh characteristics and driving and enabling factors to be observed and formally captured in a book are temporal and cultural.

All three themes – marketing, environment and culture – are ever-present in this quick and fun read.  I recommend it to marketers, entrepreneurs, environmentalists, futurists and anyone broadly interested in what’s happening out there right now.

My blog post for class that’s loaded with links can be seen here.

My video review can be seen here:

 

Mesh, The Mesh, meshy, companies, company, business, businesses, Zipcar, Crushpad, Kickstarter, thredUp, Prosper, Roomorama, Netflix

Seven of the dozens of examples provided by Lisa Gansky to illustrate her concept of The Mesh.

U.S. Postal Service: Are You Emotionally Attached?

They don’t seem to care much about customer service or performance.  You’ve probably got a complaint or six about them.  They expect to lose $7,000,000,000 of our money this year.

But when NewMediaMetrics surveyed 3,500 Americans ages 13-54 with annual income of at least $35,000 earlier this year, they beat the following brands, among many others.

  • Car makers: Mercedes-Benz, Audi, Jeep, BMW, VW, Toyota
  • Big boxes: Walmart, Target
  • Tech: Microsoft, Sony, Samsung
  • Iconic: Nike, Coca Cola, M&Ms
  • Various: Victoria’s Secret, Visa, Hershey’s Milk Chocolate, Sea World, Southwest Airlines

Look who rounds out the top 15 of the Leap (Leveraging Emotional Attachment for Profit) Index this year.  Beating out loads of heavy-hitting brands … it’s your United States Postal Service!

Consumers Brand Ranking NewMediaMetrics

Leap Index: Top 15 Brands Consumers Are Most Attached To

This 9/10 list ranks brands based on how many people are most unwilling to give up the brand, ranking it a 9 or a 10 on a 0 to 10 scale.  That’s some love … for the USPS.

The United States Postal Service is the same operation that delivers mail to my home any time between 5 and 8pm most nights.

The U.S. Postal Service is the same operation that set up deliveringtrust.com to teach people about preventing mail fraud when they deliver other people’s mail to my home, including “Important Tax Documents” and what look like bank statements, at least once a week.  Yes, they’re handing over to me other people’s sensitive information (which I either take to their house or drop back into a nearby mailbox).

The USPS is the same operation that could not deliver a piece of mail addressed 100% correctly to my wife from a store that’s less than 3 miles from our house – even though they tried twice.

Undelivered undeliverable fail failed address

Though addressed 100% correctly, this letter could not make it less than 3 miles from its source to its destination on either of two attempts. Instead, it was picked up in-store a month later. Blue marks made by me in Photoshop to conceal partially the address for public posting here.

I like to receive mail.  I read many magazines brought to my front door by the mail carrier.  I pay many bills by mail.  We still physically exchange our Netflix DVDs by mail.

I like attachment.  I want to feel attached to our USPS.  The problem is that they consistently give me reasons not to like them.  (TWO WEEK UPDATE: my wife’s been sending packages to a friend in the military overseas requiring two customs forms each time and says our local office has been very helpful and friendly.  Still not attached, though.)

Are you “emotionally attached” to the United States Postal Service?  Positively or negatively?

Do you have a USPS love or hate story you’d like to share here?  Please do!

Links

2010 Leap Index Top 100 as PDF

Ad Age article about 2010 Leap Index

Rework by 37signals: Setting Conventional Wisdom Ablaze

16 employees in 8 different cities on 2 different continents serving more than 5 million customers, including some of the world’s biggest brands.  How do 37signals do it?

They’re eager to tell you.

Before I take on their book, I’ll give you a sense of the company, which exists almost completely online.  They design web-based software that helps you run your small group or business.  The table below, including the names and images of each offering, is as stylish and clear as the book.  This product/service line was developed for their own use; they run their company on their own applications.

37 signals, basecamp, campfire, highrise, backpack, software, online, SaaS

Back to “eager to tell you” … from the 37signals perspective, teaching is marketing.  That’s a perspective about which I want to learn more.  Of course, they’re eager to teach me.

In addition to countless interviews, speeches, and presentations – many of which are available online (here or here) – founders Jason Fried and David Heinemeier Hansson, along with several other members of the crew, put together a couple books.  I’ve read only one of them; this is my review.

Rework is their go at a “general business” book.  In it, 37signals explain how they do what they do – how they built and how they run their business.  I won’t belabor it in detail, since there are already several tons of love and press about this publication.

In short, they set ablaze conventional wisdom about how business “needs to” or “should” be done.  Instead, common sense is put on its proper pedestal …

  • Meetings waste time.
  • Interruptions slay productivity.
  • Resumes are ridiculous.
  • Press releases are spam.
  • More features do not a better product make.
  • And on …

Though the hardcover contains 270+ pages, the layout and style make for a very quick read and begs for a re-read.  There are loads of wonderful illustrations accompanying each “verse,” which vary in length from three or four paragraphs to a page or two.  Each verse is one of maybe a half dozen pieces that make up a chapter.

It makes sense that Seth Godin‘s endorsement stripes the top of the cover.  Rework is a collection of short essays as efficient as Godin’s blog posts.  An idea is introduced, supported by an example or two, then wrapped up.  The lessons are communicated so cleanly that they seem overwhelmingly obvious.  The writing is so straightforward and clear that these essays read in sequence as a series of punches.

As a sample, here’s the lead from the “Speed Changes Everything” verse from the “Damage Control” chapter:

‘Your call is very important to us.  We appreciate your patience.  The average hold time right now is sixteen minutes.’  Give me a fucking break.

As you might expect of a book that torches conventional wisdom about hiring, PR and marketing, growth, culture, management, venture capital and so much more, Rework is irreverent and refreshing.

Needless to say, I recommend the book highly – especially for those with an entrepreneurial bent.  Really, though, it’s a must-read for anyone interested in the structure and running of an organization.  For no other reason, you should read it for the gentle but meaningful open-hand slap to the face it’ll give you about what’s happening in your day-to-day work life.

I may write a couple of follow-up posts about how the book functions as marketing and manifesto for the 37signals community and about the other companies 37signals name checks as illustrations of their points.

In the meantime, I’ll leave you with this interview of Jason Fried from O’Reilly Media:

Also, here’s a link to the 37signals “about us” page with company history, executive team profiles, statement of beliefs, and more.

Toyota: Finding Its Compass

Nearly two months ago to the day (July 9), I posted about Toyota’s incredible run on “safety” as a campaign message.

That post, “Toyota: Lost in the Wilderness?,” is right here.

Its thrust: given all the recalls and problems, are they already done with this “safety” push?  It seems so, given some new social media-oriented, reliability-themed spots I’ve seen.  Just as I was noticing how blatant the safety sell was, both in print and on-air, some fun, story-based spots started showing up in the ad mix.  I found it problematic – a premature watering-down of the critical “safety” theme.

This is a company whose entire brand was built on reliability.  Since November, though, it’s recalled more than 10,000,000 cars in the United States.  The brand name repeatedly made headlines about sticky gas pedals and sudden acceleration.  They made a brief, hard run at “safety,” but seemed to be flitting off in other directions after just a couple months.

Toyota Safety Reliability Durability Message Ad Advertising Message Campaign Perception Reality

Toyota Commits to the Safety Message

This morning, I was flipping through a recent issue of Advertising Age and read this headline:  “Toyota to Push Safety in Ad Blitz.”  I thought I was reading a back issue, but no … it’s dated September 6, 2010.  The story’s a bit longer online than in print and can be read here.

Basically, Saatchi Los Angeles is building more creative elements to support the safety message – with an emphasis on the STAR Safety System.  The campaign will run “well into 2011.”  The renewed push is likely spurred by horrific August sales figures.

Sounds like they’ve found their compass.

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