VideoEgg

When everything is media, what is media really worth?

Note: Ian Shaffer and I are working some cosmic connection. I put a few words together for the blog yesterday and was surprised to see Ian working the same territory. Our sentiments seem to intersect nicely, albeit from different industry vantage points. My comments below speak to the explosion of impressions largely driven by social media, and the implications from a media value perspective...

The market has struggled to place value on social media as an ad vehicle, but with more than 30% of Internet traffic driven by social activities, a lot is at stake. This struggle is part of a larger media phenomenon that is raising significant new challenges for publishers and media professionals. Specifically, what is inventory worth, how do media channels compare and what creates premium value?

In the past 10 years, new categories of ad inventory have opened up as human activity has been digitized. I put them into five categories - communications and self expression (social networks, email, chat, photo and video sharing); commerce (shopping sites like Amazon, EBay); gaming (game platforms, virtual environments like Second Life, social gaming, etc.); reference (dictionary, health sites, wikis, etc.); service or utility (file sharing, even service environments like Comcast bill pay); and directory (search, maps). For the most part, these are new additions to traditional content or environmental media channels (TV, print, radio, outdoor). They’ve given marketers more options but created confusion around how to value and map the media landscape and achieve reach.

Let’s think about the implications. First, more monetizable ad inventory will pressure media prices as a whole. This is a function of volume and the cost structure of emerging media platforms. Content and distribution costs are significantly reduced or eliminated in many new platforms. We are seeing this today with sub-50-cent CPMs on basic bulk inventory.

The market will continue to look at a few drivers to justify premium media value. First and most obviously, inventory that can be linked to sales activity will continue to find premiums. Reach, while not as important as it once was, will also drive demand. No brainers.

Media that creates (or is perceived to create) measurable brand value will be prized (note to self...do not say “content is king ”). Content's ability to create transitive value to brands and/or deliver proximity to elusive psychographic groups will remain important. Brands will demand integration to get closer to the content and value associated with it. Watch for more sophisticated analytical approaches to measuring—and selling—this premium content.

Much of the new inventory does not carry strong signals around purchase intent and will underperform as a direct response channel, just as we’ve seen email inventory do in the past. Publishers will push to market this inventory to brand advertisers for its attention value and target it with demographic and interest data made available by social media.

Publishers and networks will have to work hard to package the mass of inventory that lies between these ends of the spectrum. If the value is not intimately connected to the transaction or the premium association, it will come from delivering measureable time with the brand. Advertising platforms that bring rich ad experiences (entertainment and/or utility...content, video, games, interactivity, etc.), to the right consumer in a friction free way are the path forward. And it goes without saying, as impressions compete for advertising dollars, there will be an inevitable push for accountability. Watch for pricing to shift to demonstrable engagement defined by discrete interactions and time spent.

Marketers too, will have their work cut out for them to create experiences that consumers choose to interact with. This is about content creation, and it’s hard to deliver and scale. Think portable media experiences, not banners or pop-ups.

Social media will be monetized and marketers will find ways of creating value in these new environments. It’s just going to take a bit of time.

0 Comment(s) | Permalink | By t.young on May. 02 2008

Is It Time for Another App-Camp?

According to Justin over at Inside Facebook, F8, the official Facebook developer conference, is expected to draw as many as 1000 developers, or twice as many as last year’s original F8 conference. The F8 conference tends to be “tech heavy” with some talk about promoting your application. Meanwhile, through conversations with media planners, I’m still finding a large disconnect between application developers and media planners - brand marketers could stand to learn more about advertising with applications, and applications could probably still learn more about how Madison Ave. operates.

Last October we hosted an event called App-Camp that had some focus on media planners and developers learning more about each other’s wants and capabilities. The conversation around that was, in my opinion, the most interesting part of the event.

So, it is time for another App-Camp with more focus on that? Or is this issue being addressed with other conferences I’m missing?

Post by Eric Klotz

1 Comment(s) | Permalink | By blog_editor on Mar. 27 2008

Some Media Agencies Get Social Media More Than Others

VideoEgg works for brand marketers that want to reach people inside social environments. Because these environments are swirling with people influencing each other, mastering marketing within these environments is the holy grail of digital advertising. It is that same influential nature of social environments that makes it so promising for advertisers but that also fills it with some risk. The brand marketer's risk factor is partly due to lack of education, and the lack of education is due to some marketer's low tolerance for risk. Some agencies get this more than others.

One example is Deep Focus, the media agency that I've given praise to often because time and time again when others dip their toes, they'll bounce on the diving board and do a cannonball into the pool (I even lol'd at that analogy.....). In all seriousness, one of my favorite blogs, Agency Spy, asked Deep Focus CEO, Ian Schafer, what their policy is towards social media. I'll highlight a few key points that Ian made and which make them stand out from the type of agency I referred to in my post last week:

1) "Social media is difficult-to-control participatory media, which makes it an environment that makes advertisers uncomfortable.

And you know what? Good.

Uncomfortable situations have the potential to bring out the best in us. They can keep us on our toes. They can sharpen our communication skills. They can improve our relationships by understanding what got us into those awkward relationships to begin with. Advertisers that can accept that they are in an uncomfortable relationship with their customers (and want to improve those relationships) are the ones that are most ready for a foray into Social Media.”

2) "We’re not just spending a lot of time working within Social Media because it’s hot right now, we’re doing it because it is the eventual future of all media.”

Ian, if you were in SF, I'd buy you a shot of Hot Damn. Agencies that understand today that social media will be the standard tomorrow will be best suited to lead the industry and will continue to take big accounts as they depart from the larger and slower agencies. It is good to see that more and more agencies are doing more than just dipping their toes.

Post by Eric Klotz
Director of Creative Development

1 Comment(s) | Permalink | By blog_editor on Mar. 25 2008

The New Roles of Publishers and Ad Networks

People working in the digital marketing space have a couple of things to be happy about in 2008. First, we are finally seeing a decent amount of TV dollars moving online - something that took much longer than it should have, and wasn't easy. Second, if our economy is heading into a recession, every study shows that digital marketing will feel the pinch less than the rest of the advertising industry. This didn't happen by luck, it happened because smart media publishers and ad networks have stepped up to the plate and taken on new roles that traditionally belonged to media agencies, which simply couldn't adapt fast enough.

A recent joint study published by IAB / Booz Allen Hamilton showed that savvy media publishers and ad networks are consistently showing five major behaviors, which I define as five major roles. Below are those roles and my take on them:

1. Invest in ongoing marketer education: Fully 87% of media companies find the need for their ad sales team to educate marketers and agencies “important” or “very important”. As a result, 70% plan to increase their investment in education capabilities by 2010.

*This is critical. The social media explosion is evolving faster than the agencies can educate their staff. Effective campaigns need to be holistic by design. It is on the shoulders of publishers and ad networks to showcase their offerings in the proper context - why and how they fit into the larger scene.

2. Provide consultative services to key clients: Almost all digital leaders already provide agency-like services to many of their marketer clients.

*While I totally agree that we need to consult with clients, I would go beyond "key" clients and say every client. For example take the growing popularity of brands building custom applications for Facebook. Agencies and brands have very little insight into user behavior and how to promote their application. Third-party applications are still less than a year old, and there is no Comscore or NetRatings equivalent to guide their decisions. If we didn't consult with brands they would essentially be shooting in the dark, or buying the concept and hoping for success... which brings us to the next point below.

3. Focus on the metrics that matter most: Leaders understand what marketers want to measure—including reach, engagement, action, and ROI—and they are improving their ability to collect and analyze consumer data. Leaders are more likely to provide performance marketing services and lead generation.

*This is why we continually need to expand our services in today's marketplace. The success metrics of three years ago are not the success metrics of today, at least not exactly. Sure ROI has been around forever, but what defines ROI today is different, by expanding our services we are enabling brands to choose the option that is best for their metrics.

4. Translate media value into marketer ROI: Leaders are more likely to have ROI metrics than other media companies. Most have the ability to tie media behavior to sales.

*At VideoEgg, we call this accountability. I'll say it again - accountability. One media planner I spoke with said his biggest challenge is figuring out how to bring direct response metrics to his brand marketing. We recently introduced our AdFrames offering to address this exact challenge. AdFrames is a pay-per-engagement model for brand marketers. This is a huge step in bridging the gap between direct response and brand marketing.

5. Know what drives consumer behavior: Digital leaders are developing the ability to incorporate consumer insights into marketer's predictive models at a faster pace than non-leaders.

This one actually encompasses the previous four and probably should have been titled "Know what drives your user's behavior as well as consumer behavior in the market." Insight into consumer behavior doesn't just come from in-house data or third party data published a month behind real time. Publishers and ad networks can't get caught up in their own bubble or they will end up as stale as the agencies they've had to step up for. By understanding the big picture combined with in-house learnings we can continue to improve the performance of campaigns. Every publisher and ad network is, and should be, under the gun to develop and adjust their offering according to changes in user behavior - and fast.

Like with any industry the companies that do the best in ours are the ones that remain malleable enough to change with the market, and humble enough to realize when they're not. Many agencies are making unprecedented restructuring efforts to adapt the new digital landscape by breaking down silos, combining budgets, committing to more education, and rethinking their success metrics. But for the next few years at least, its up to publishers and ad networks to understand the market, explain the market, and keep those budgets moving online.

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Mar. 20 2008

Engagement Debate is Sold Out: Limited Standing Room Only Available Today

We sold out. Not like when the Sex Pistols did a reunion tour sponsored by Hot Topic, but sold out of tickets to our Engagement Debate '08. We are past the number of seats available, but we're going to let a few of the people that wait until the last minute (like me) buy standing room only tickets for a few bucks cheaper than the regular price. Get 'em today if you're considering because they'll be gone quickly.

Post by Eric Klotz
Director of Creative Development

1 Comment(s) | Permalink | By blog_editor on Feb. 12 2008

The Engagement Debate '08 is Nearly Sold Out

With little more than word-of-mouth and some "knock out" ads on Ad Age (see above), VideoEgg's debut out-of-office event is nearly sold out. The Engagement Debate '08 has been officially announced today, but we're already almost full. And we've added some more top-notch names to the verbal warfare that will take place on 2/20 in NYC:

Jean-Philippe Maheu, Chief Digital Officer, Ogilvy North America
Lars Bastholm, Executive Creative Director, AKQA New York

To get a taste of why we are having this debate around engagement, and to see first-hand how different opinions are about this one word, download our new PDF thought piece, Engagement: 4 Perspectives. It features four experts, representing four major segments of the digital marketing industry - publisher, media, research, and brand. See how different their points of view on engagement are.

And get your tickets to The Engagement Debate '08 today.

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Feb. 04 2008

New Study: Advertisers Biggest Losers of TV Strike; Madison Ave. Reacts with Major Changes

When the Financial Times asked NBC's Jeff Zucker about the upfronts, the yearly ritual of networks throwing lavish parties to showcase their upcoming shows to media planners, he showed his disdain for the state of the television industry by stating that, "Things like that are all vestiges of an era that’s gone by and won’t return." It is easy to understand why he is frustrated. Thirty-five perecent of American's have changed their TV viewing habits as a result of the strike according to a new study conducted by new media consultancy group, Interpret LLC. That has a significant impact on advertisers, who Interpret refers to in their study as "the biggest losers in the TV strike."

The viewers aren't the only ones making changes as a result of the strike. I recently learned that Madison Ave is making some some huge changes that underscore Zucker's point that the TV industry will never be the same. OMD, the largest arm of Omnicom, in the next few months will train ALL of their TV buyers how to buy digital media. Think about that for a second - the world's largest media buying/planning agency has a mandate to train all their TV buyers to learn to buy digital because they can no longer reach the audience they need from TV buys alone.

Those of us that work in digital media can only hope that with the retraining, TV buyers will not only ween themselves free of their dependency on TV's reach, but also see that digital media has far superior engagement, tracking, and performance than TV.

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Jan. 21 2008

Sneak Peek @ The Engagement Debate '08

The word "engagement" has been abused by our digital marketing industry long enough, and dammit, we're not gonna sit by and watch this word be abused anymore! I think most people can agree that "engagement" is a buzz word that gets thrown around a lot, but it remains abstract because it has a different meaning depending on who is using it. That is a shame because our good friend engagement can actually have a real value. So we decided to set up a no-holds-barred event to debate about it and elevate it to be more than just the marketing term du juor.

We're holding an event in NYC on 2/20/08 called The Engagement Debate '08. We'll hear perspectives from media agency executives, from C-levels to Group Directors (because even their opinions vary), and we'll also hear from brand marketers, publishers, and researchers. People will be challenged and people will be put on the spot, but dare I say, it will actually be entertaining. Check back on the VideoEgg website next week for more details.

Don't worry, engagement, help is on the way.

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Jan. 09 2008

We Are All Still Learning Social Media: The Sony Snow Globe App Example

I read two posts yesterday about how Sony failed miserably with their attempt to make a branded Facebook Application. The first post was on FaceReviews.com, and the other was a slightly different take on Valleywag. Basically Sony created an application that allows users to make Sony branded Christmas snow globes, and less than 500 downloaded it in the course of a month. I'll agree that those numbers aren't flattering, but I don't completely agree with the roasting Sony got from the aforementioned sites.

Rodney Rumford, a consultant who runs FaceReviews.com and Gravitational Media, is a smart and nice guy - I've met him on a couple of occasions. He critiqued Sony's Facebook custom application attempt showcasing several flaws, including:

* No tabbed navigation
* No clear way to invite friends (I can’t believe they missed that!)
* It does not remember that I created a globe (very frustrating)
* After I create and send a globe I can’t navigate anywhere else (like to make a new one)
* No way to see which snowglobes my friends have created
* Text instructions are too long.
* Only allows for Christmas snowglobes. Too short of a product life cycle window

Well, Rodney is right about those things, but he looks at it from a different perspective than me, and most likely, Sony. We don't know Sony's self-created success metrics, but it is pretty evident that this was a test. Nearly all bigger brands have test budgets, often referred to as emerging media budgets. Now I'm not proposing that Sony purposefully didn't include a way to invite friends, but I'd be willing to bet that with such a basic application (and so many flaws), they are glad less than 500 downloaded it.

Valleywag and FaceReviews.com also pointed out that active users for Sony's app are extremely low. Well, so are the vast majority of apps on Facebook. In the image below you'll see Sony's Snow Globe app growth rate as well as Mountain Dew's DewMocracy app, an app that Rumford did consulting work with - and could just have easily been the subject of both scathing posts. You'll notice both have 1% active users and unimpressive numbers for downloads.

I'd like to point out that the DewMocracy app is a much better app than the Sony one, and had Mountain Dew put more dollars into promoting it, Rumford's consulting would have paid off on a much larger scale - but he can't force them to spend money on promotion. That is why the real #1 rule to making successful apps (if downloads is your success metric) is to promote through other applications. In other words, no free lunch - you have to make a media buy to promote your application otherwise no amount of smart consulting can help you. That is step one, but if active users is what your going for, then you'd better make a reason for them to come back after you get them to download. In this case, it looks likes the DewMocracy app isn't necessarily concerned with users returning after the vote, so you can't look at that 1% as a failure, and same for Sony's Snow Globe.

Having worked on Madison Ave myself, I think it is great to see brands willing to take a risk at all. The more risks they take and testing they do, the more they will understand, and everyone working in digital media will benefit from it.

Post by Eric Klotz
Director of Creative Development

1 Comment(s) | Permalink | By blog_editor on Jan. 03 2008

2008 Ushers in the Next Generation of Virtual Worlds

Some people call them virtual worlds, others call them virtual playgrounds, but whatever you call them, sites where avatars and alter egos run wild are in the middle of an extreme popularity growth period. While this subject isn't brand new, the New York Times published a piece this week highlighting the number of new virtual worlds that are slated to launch in 2008, and quoted one media analyst warning, "get ready for total inundation." Most marketing experts agree that marketing in first generation virtual worlds was more about hype than value, but now there is a new crop of sites about to open 2008 that could have significantly better success for marketers.

First generation virtual worlds such as Second Life offered a blank canvas for creative marketers to play with. Because these worlds aren't real, brands can deviate from their standard practices and do things that they would otherwise never be able to do, for example Nissan let anyone virtually test drive their Sentra. On the other hand, who are they are marketing to? Is it an extension or augmentation or someone's real-life identity, or is it their alter-ego? I assure you that my alter ego wouldn't go into VideoEgg everyday and have a sloppy roommate known as "Guns n' Roses Mike."

The issue of who marketers reach in first generation virtual worlds is an issue that the Electric Sheep Company didn't consider carefully enough. Their company helps marketers advertise in virtual worlds and they recently laid off 1/3 of their staff (just before Xmas to boot). And I haven't seen any third-party studies showing that ad recall or, more importantly, purchase intent in virtual worlds is worth the price; also keep in mind that it isn't just a media buy, there are considerable creative costs involved to make that weird pixelated image that is not even close to looking as good print or video.

There is an alternative to marketing within first generation virtual worlds, and that is creating your own fully-branded virtual world. This is where the market seems to be heading. There are fewer general sites like Second Life and There.com opening up, and more sites like Disney's Pirates of the Caribbean and Mattel's virtual Lego Land. Unlike a fully branded micro-site that has a short shelf-life, these new virtual worlds are intended to change with whatever the brand is pushing at the moment. I can see how these could be a massively successful marketing tool that could pick up where DVD sales level-off for media brands, and increase sales of toys and games for others. The major consideration, however, is value. Nickelodeon is said to be investing a staggering $100 million into creating several of these virtual worlds.

I don't doubt that for brands like Nickelodeon that cater to a very young demographic, creating these virtual worlds could end up being a success. They already have a vehicle to drive membership and they have plenty of things to sell and cross promote. But brands that are trying to reach a teen and young adult demo may have a more difficult time attracting active members to their branded worlds - and there is a very significant cost risk. My money is still on social networking sites as the best opportunities to engage teens, but with the possibilities that branded worlds bring to marketers, and their ability to eat up major part of marketing budgets, I will be carefully following their performance this year.

Post by Eric Klotz
Director of Creative Development

2 Comment(s) | Permalink | By blog_editor on Jan. 02 2008

Happy Holidays from VideoEgg

Here's to a fun and peaceful holiday season. We'll be taking a break from posting over the holidays, but we'll be going strong again in the new year.

0 Comment(s) | Permalink | By blog_editor on Dec. 20 2007

Excellent Creative Execution to Promote "The Orphanage"

I was updating my Netflix queue last night, and I usually check out the top movies on RottenTomatoes.com to see movies and docs I might not have heard of (it actually works quite well by the way; I rarely rent a movie I felt was a waste of time.. except The Namesake, but I digress). It was then that I came across the creative for Warner Brother's upcoming release, "The Orphanage." I'd love to see the CTR from current ad campaigns on RottenTomatoes.com right now, because I'd bet The Orphanage campaign is outperforming everything else by a noticeable margin.

I captured some screen shots of it in action. It starts off with a static ad, and then within a few short seconds the lighthouse in the picture begins to cast its beam of light, rotating around to reveal some creepy looking ghosts/kids before going back to static for another 20 seconds or so. We all know how scary ghost kids can be! It was quick, and more importantly, it wasn't intrusive. By the time I saw it, it was over and I actually wanted it to start over again. I was on the site for about 20 minutes and while other ads took advantage of flash animation, none used up extra real estate to grab attention.

If nothing else proves the point, I clicked through, I spent time on the brand site, and I'm going to go see the movie - and I hadn't planned on it before.

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Dec. 19 2007

2007 Online Campaign Review: Mac vs. PC

While probably getting close to retirement sometime after the new year, Mac's campaign, "Mac vs. PC," continues to be creative, smart, and fresh despite using the same characters in all spots. There a few things that have continued to impress me about this campaign and make it stand out amongst others:

1) Negative ads are powerful, while funny ads are the most loved - this campaign is both.

2) Mac successfully sticks a large number of competitors (not just Mircrosoft, but Dell, Gateway, Sony, Toshiba, etc) behind one scared and pitiful character that represents them all.

3) Most importantly, each ad is tailor made for the environment it is viewed in. The web-only ad, "Don't Give Up on Vista," appeared on tech savvy sites such as Engadget and Digg, and going straight for the juggular, it was on PC Mag as well (pictured below). But the best part is the way the skyscraper and banner work together. Far too many advertisers use page takeovers as an opportunity to just shove branding in your face without being creative. The Bose advertisements below were taken from the same website as the Mac ads, and look at the difference.

The video of the Mac ad in action can be seen here. And while you're considering your computer purchase this holiday season, check out the Mac ad below:

Find more videos like this on AdGabber

Post by Eric Klotz
Director of Creative Development

0 Comment(s) | Permalink | By blog_editor on Dec. 18 2007

Should Online Video Be Shorter to Coincide with Average Viewing Times?

Peter Kafka of the Silicon Alley Insider chatted up Jeremy Allaire of Brightcove fame recently (see How to Make Web Video Work: Make It Shorter). In that conversation, Mr. Allaire points out that while online video viewers select 4 minute videos to view, they only get through 2 minutes or so. Mr. Kafka infers that means something’s amiss in online video and that content creators should “make it shorter” to “make web video work.” Now, we who make our home here on the Range realize that this go-go-get-me-a-latte-txting-my-g/f-omg-is-that-Brittany generation likes it hot and fast, but we don’t think content creators have to “make it shorter.”

They have to make it better.

Great online shows like Ask A Ninja and Wallstrip easily clock in over the magic 2 minute mark. Good. No, scratch that. Great. Great content, entertaining stories, informative narratives and engaging characters capture viewers’ attention and don’t let go. Go check out Nielsen, all the top TV shows are hour long: CSI, Grey’s, 60 Minutes (60 MINUTES hell, it’s in the name), Without a Trace etc. etc.

Viewers bail out of a video when they’re bored not because the clock strikes 2. If they’re engaged they’ll stay with it. So don’t focus on the clock, creators. Just make it better. Then they won’t be able to click away.

Post by Jeff Reine
Director of Business Development

0 Comment(s) | Permalink | By blog_editor on Dec. 14 2007

Dessert Marketing Story is a Digital Marketing Lesson

I enjoy listening to This American Life. I don’t often get to it on a Saturday afternoon (when it’s on my local public radio station), but today I happened to catch it. It was all about the people who come in and out of a diner called The Golden Apple in Chicago over a 24-hour period. But, that’s not what this post is about.

No, this post is about rotating desserts. You see, on the day the This American Life crew was in the Golden Apple the dessert case that would normally be spinning desserts around and around was broken. You know, the kind of thing that looks like this:

So, yeah, it was broken — the desserts weren’t spinning. When the desserts weren’t spinning the Golden Apple sold 50% fewer desserts. Think about that for a moment. Take stationary desserts and start them rotating slowly and double your sales.

Why do I care about desserts, rotating or otherwise?

Because this is such a great lesson in why details matter. They matter in retail environments, and they matter in software — and from now on I think I will always think of that as “The Rotating Dessert Issue”. When I used to build custom web applications for a living we were constantly faced with clients looking at the “buy vs. build” decision. One of our strongest pitches was that off-the-shelf systems may get most of it right, but it’s the details that really end up mattering. Now, of course we had a vested interest in taking that stance, and there are plenty of good arguments against building custom software in many situations, but it doesn’t change the fact that details matter.

Post by Nathan Dintenfass
Product Manager

Originally posted on Venture Geek

0 Comment(s) | Permalink | By blog_editor on Dec. 13 2007