We live in interesting times. That statement could be taken either at face value, or, if you work for a TV network or cable company, as a reference to an old Chinese curse. Either way, it’s true. Life is interesting—not least because, as TV viewing morphs into online viewing and goes mobile, it is becoming really difficult to predict the implications for advertising.
I am an unashamed believer in the power of video advertising when it comes to building brands. Yes, I know we need to engage people, to add value beyond a product or service, to give something back. But there is absolutely no reason why video advertising cannot do that. It can entertain, inform and inspire. Just take the example of Coca-Cola’s Happiness Factory, which has been viewed millions of times online. By creating a compelling viewing experience, Wieden+Kennedy have also created a platform for further brand engagement. The latest installment of the Happiness Factory saga includes not just the TV commercial “Open Happiness,”
but also a music track featuring rock and hip-hop artists, and a series of interactive video games. (Click here to check all this stuff out.)
The threat—real or imagined—to TV advertising has nothing to do with the creative. It is the fact that people now have control over the ads they choose to watch. In the early days, when people did not appreciate the ads, their only option was to walk away from the TV. Now, however, they don’t even need to walk away. They can zap and skip without leaving their armchairs.
The impact of DVRs, however, has so far been less than anticipated, not least because the mere act of skipping ads forces people to attend to the flickering images on their TV screen. And when it comes to ad-zapping, analysis done by Google (click here for article) has confirmed what Millward Brown discovered a long time ago: good ads don’t wear out in terms of their ability to hold an audience’s attention. People are less likely to tune out ads they find engaging, and the tune-out rate remains relatively constant over time.
But just because DVRs have not completely changed the viewing world does not mean media owners are in the clear. Further changes are afoot, because as content migrates onto the Internet, it becomes even more difficult to control who sees what and when. Slingbox can send TV programs to your computer wherever you are. Boxee makes it very easy to connect a TV to the Internet and access pretty much any content you want. Recognizing that TV and the Internet are merging, companies like NBC and News Corporation have tried to get ahead of the trend by creating Hulu, now reported to be the second-most-popular online video site after YouTube. Two key factor in Hulu’s success are: it offers professional content, and advertising on the site is limited (though the ads that do appear are inserted into the video stream just as they would be on a regular TV).
So where is all this taking us? I think we are going back to the future. People have always paid attention to ads they found to be engaging. If you cannot force people to watch something, then you better make sure they want to watch it. Creating compelling video ads will become ever more important because if ads are not compelling, people will click them away. A brand that has a reputation for creating great video ads that people find enjoyable, interesting and inspiring is much more likely to benefit from the new media world than the one that just resorts to a blatant sales pitch.
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May 22nd, 2009 at 5:02 am
Well said Nigel
it all starts with great creative and ends with a reason to want to watch/read/hear/interact it again …. whenever-wherever-however.
As you noted, consumers are in control,
“Further changes are afoot, because as content migrates onto the Internet, it becomes even more difficult to control who sees what and when.”
which actually helps brands as it puts relevance ahead of presence and unlocks the genius and efficiency of a demand based (Google) model.
I think that can only result in a multi-threaded communication program that blends brand building with calls to action, experience with anticipation and consumption with co-creation of the brand …all of which leads to community building for those consumers that desire it.
BTW you might be interested in this article(http://www.marketingcharts.com/interactive/social-media-generates-hype-fails-to-deliver-marketing-punch-9179/?utm_campaign=newsletter&utm_source=mc&utm_medium=textlink) of a new study (admitedly a smallish sample base n=418)
INTERNET USERS TURN TO SOCIAL MEDIA TO SEEK ONE ANOTHER, NOT BRANDS OR PRODUCTS
“What we’re seeing is that word-of-mouth is still the #1 most influential source, followed by TV,”
and this Nielsen article (http://www.marketingcharts.com/television/socnets-web-video-radically-alter-online-behavior-8838/) regarding the shifts in online consumer behavior. The key perspective (for me) that Feb’09 saw the social network “audience” join the ranks of online video and search to surpass the emailers. I think it punctuates an important tipping point moment and the challenge/opportunity ahead.
“A brand that has a reputation for creating great video ads that people find enjoyable, interesting and inspiring is much more likely to benefit from the new media world than the one that just resorts to a blatant sales pitch.”
Amen to that.
May you live in interesting times indeed.
cheers
Miro
May 22nd, 2009 at 7:28 am
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May 30th, 2009 at 2:22 pm
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