Media spend measurements

Eric Picard of Microsoft have challenged in his last column the methodology used by many to measure the spread of media dollars across channels.  All points made are valid and not that surprising considering the rapid changes in consumption patterns and the fact that investments in tools for measurement is lacking and lagging.

I do feel however that the solution is not as simplistic as attempted to be offered by Eric. For how long will we be able to consider NBC or ABC a broadcast company? Should we assume they will rely on Pure-play companies for distribution online? How will these companies utilize social networks that are becoming the predominant entry point to the Internet? What will their distribution channels be for mobile devices?

As Eric correctly mentions, the more relevant point of discussion relates to the different forms of Display Advertising. TV, Online, In-Game and Mobile channels have many similarities:

• The Currency 
• The Message content, i.e. Creative
• Marketing objectives and the position of the desired response in the buying funnel

Another point of growing similarity is the user mode of consumption. More and more digital content is consumed as a lean back experience that is similar to TV. In such a mode the value of active digital engagement is lower and therefore the marketing content can be similar. It is in these cases that it is difficult to distinguish where the media funds were invested. It is also this kind of inventory that can easily be bought by a traditional buyer using traditional dollars.

The resolution? While I am not sure this will be a growing problem I feel it is within the hands of advertisers themselves to resolve it. I am confident that bundling of media will only continue (Easier for the seller and beneficial to the traditional media buyer to demonstrate its value against the digital one) and Advertiser can insist on measuring and reporting on their Broadcast Vs. Digital spend separately. This will incentivize all of us to distinguish between the spend on NY Times Digital Vs. Print and will hopefully encourage investment in automated digital measurement tools.

 

Blackberry 9000 - The answer to iPhone?

I honestly can't understand the iPhone mania. Maybe my fingers are just exceptionally fat and the rest of the world happens to love the annoyingly narrow touch keyboard. I respect the attempts to create a device that will successfully converge the 3 main applications consumers are after: Voice, Email and Music. 

I remember giving the Sony-Ericsson Walkman phone a shot a couple of years ago. This was an attempt at converging Voice and Music. I was not happy. The software was clunky and the phone reacted slowly. I am convinced the iPhone is doing a better job on this front. 

However, the iPhone doesn't cut it as an email device. It is also too big in my opinion and very male oriented (I don't mean to sound sexist but how feminine is a phone of this size?). Apple might be happy with a phone that converges Music and Voice only and I am sure their stock will be as well.

In order for Apple to create a device that will successfully converge all 3 applications, it needs to do, in my humble opinion, the following:

• Integrate with Microsoft based email application - This will not come naturally to Mr. Jobs
• Enable a proper keyboard
• Reduce the physical size of the phone

I think only 3 companies have a shot at this task over the next few years: Apple, Research In Motion & Microsoft. RIM is rumored to work on a next series of phones that will improve the user experience. No word on Digital Media capabilities though. 

I am still ambivilent about mobile devices as a vehicle for digital content distribution and consumption. I do believe however that volume of Business & Social related activities on these devices will increase and will command adoption of Providers and Phones.

PubliciS(anity)

Unless I missed some big headlines, it took a year too long for it to come. One of Advertising industry's leaders has finally proclaimed: "The second bubble is here". Maurice Levy came forward and announced to the FT what I am suspecting for quite a while. You can read it here.

In my opinion it is not only the imbalance between the varieties of media offerings out there (The tail is getting longer indeed). The nature of digital media consumption is short bursts of content. This means increased ad inventory but how should it match advertising spend? Can and should a single consumer be exposed to more advertising messages online than he was on TV for similar duration of consumption? I don't think so. The reality will be that, at least when it comes to display banners, only the well targeted ones will prevail. 

In any case, Thank You Maurice and exercise restraint please Venture Capitalists.