Media Agencies Need to Change

In India, in the mid-nineties, media agencies emerged on the scene to address the problem of audience fragmentation. The primary objective was cost saving, which broke the traditional 15 per cent agency commission. Media agencies cornered 12.5 per cent and the creative agencies 2.5 per cent. Clients soon resisted the commission for every ad exposure. As a result, creative agency commission disappeared.

In this decade, the next four years are transformative.  Digital will be a bigger part of the eco-system. Though TV still holds as a major  media vehicle, Netflix accounts for a large bandwidth. Today, in India digital supplements the traditional media. However, very soon brands will be launched and sustained on digital only.

At present, the data is extrapolated audience measurement. In future, social media platforms, a few DTH and OTT players and e-commerce sites will own major chunk of consumer data. Will there be any incentive for the advertisers to pay a commission to the media agencies then? Many advertisers even today work directly with Google.

Advertisers will set up internal programmatic desks for ad placement across all media platforms just to save costs and control data. Traditional TV may also adopt the programmatic.

It is time for the agencies to invent in manpower who can provide relevant solutions. Brands must be made a topic of consumer conversation. A multi-disciplinary team must engage the clients. There should be integrated approach. There should be accountability. There should be investment in data.

Native Advertising

The Federal Trade Commission ( FTC ) which is the consumer protection body describes native advertising as something  ‘marketers and publishers are using as innovative methods to create, format and deliver digital advertising. One form is native advertising, content that bears similarity to news, feature articles, product reviews, entertainment and other material that surround it online.’

They look like ‘ editorial ‘ — the same style, font, language and design. Journalists are hired to write the copy of native advertising. Either they are written in readable form or are watchable as videos.

Online advertising that is in the format of banners and display ads bring in pathetic revenues. They bring in a fraction of the money of a print ad. The screen size is also small. There are ad blocking softwares too. In such a scenario native advertising is contributing a lot to the growth of digital advertising. These ads using video are welcome for the youngsters. They fetch high CPM and attract rates just like print.

How to distinguish the editorial and advertising then? Is there a wall to divide these two? Readers are thus at the mercy of the media. What is sacrificed is objectivity and truthfulness. Perhaps, this is the price the readers pay for not paying for the news by subscription. If there is a disclosure that what you are reading or watching is an ad, it is okay. There should be a limit on its proportion, say 3 — 10 per cent of the total content. Disclosures are not prominent. If they are, the ads would not work. In the US, FTC has issued guidelines about how disclosures should be made. ASCI’s guidelines about honesty in representation and harmful products cover in its scope native advertising.

Eros

Eros releases 65-70 films annually. It has become a Rs. 1442 crore company. It is getting deals and distribution. It has set up in 2015 an in-house production arm — Trinity. The idea is to have control over IP and in turn generate better returns. Trinity over time is expected to deliver up to six films a year. It has planned 10 films going on the floor over the next two years. Trinity is to Eros what Marvel is to Disney. Trinity has employed a team of writers. Trinity gives a go ahead to the project on the basis of three criteria: Is it franchisable? Is it an unexplored genre? Can it hit Rs. 1000 crore in revenues as a franchise?

In a franchise, characters are developed and a plot runs around them. The plot may run out, but the characters live on. For instance, Avengers, Spectre, Fast and Furious or the Hunger Games.

There are unexpected genres –Gods and Kings, mythological characters, animation and live action for kids, and supernatural themes. There are audiences but little content.

Though so far Eros was a deal maker signing cheques for acquisitions and with no understanding of production, they have decided to be a content company and wish to be associated with movies right from the scripting stage.

The process of creating a film is painful and expensive. Independent producers lose steam on the way and sell it to whichever studio is willing to buy. Eros wants to get involved all the way to distribution and marketing.

Bots : The New Apps

Smartphone apps were initiated by Steve Jobs of Apple in 2008, some eight years back. Since then several billion apps have been downloaded. The revenue generated from apps runs into billions. There are revenues from subscriptions and other fees. The market is now maturing. Building apps and promoting them is getting costlier. A few developers have captured almost half the business on Apple’s app store. Several apps are being abandoned after some time, say a single use. Apple and Google were the champions of the app economy.

It is time now to have bots, which are powered by artificial intelligence. The name is inspired by robot. Facebook is introducing chatbots which are text-based services which allow users to compete tasks such as checking news, organising meetings, ordering food or booking a flight by sending short messages.

Microsoft’s bot called Tay is designed to impersonate a milliennial. It mimics the language which it learns on Twitter and other messaging services .

Bots live on servers just like web pages. They are thus attractive to business which shy away from developing their apps. Bots are quickly installed. Users can switch between bots. Talking to bots is more appealing.

It is still to be seen whether bots will be as successful as apps. Much experimentation is needed to find their place. Bots are not going to take over the world. They will co-exist with websites and apps.

Power Shift in Online Advertising

Online publishers, especially the new sites, are facing troubled times. There are two factors that trouble online publishers. Web advertising business as such was always unpredictable. It has become treacherous now. The traffic to websites have plateued. In some cases, it is falling. This happens after a decade of exuberant growth. It is a transition period — from internet of websites to the internet of mobile apps and social platforms ( such as Facebook). Besides this there is automated advertising and ad blocking tools. Monetizing the web has become problematic. Instead of the websites, people prefer the social media, and apps. Site visit is an unnecessary detour. Advertisers adjust their ad spend accordingly. In the first quarter of 2016, 85 cents of every new dollar spent on online advertising goes to Google or Facebook. It is a big power shift.

Final Draft : Screenwriting Software

This screenwriting software developed by Final Draft Inc. is used to write and format screenplays. It was first developed in 1991. The company is now owned by Cast and Crew Entertainment Services ( 2016 ). It satisfies the submission standards set by theatre, TV and film industries. The competing softwares are Celtx, FadeIn and Magic Screenwriter. On Amazon, Final Draft 9 costs around $180.

Content Marketing

A brand has a purpose. It is the reason for which it exists. It is the reason why people buy it. Content is an opportunity to establish the relevance of the  brand and articulate brand purpose. Here some feel that an opportunity to sell is sacrificed but it is sacrificed to tell people about the brand. A company has to build the affinity with the brand. This connect helps. The story telling is a connection tool that has been used by people over a long time.

Content talks to all, and not just consumers. People participate in a brands journey. Consumers simply have a transactional relationship with the brand. Content provides an opportunity for conversation and participation.

Content facilitates the brand to play to its potential.

New Era of Marketing and Advertising

In the 1980s, advertising and marketing was all gut and feel and there was little quantitative back up. It worked. There were less number of products. The media options were limited. The pace of life was slow. The consumers were easily satisfied.

In the early 1990s, we came across the word clutter. Computerisation was adopted. Mass media proliferated. There were multiple satellite channels. Brands galore. Markets were competitive. There was globalisation. Traditional marketing and advertising was stretched to a breaking point. There was advice on breaking the clutter.

Internet revolutionised the whole scene. The whole world  changed. E-commerce and e-tailing, new methods of payments, mobile telephony and social media all descended on us in quick succession. It was not a downpour, it was a deluge. It was a deluge of information — a mass distraction hither to unheard in human history.

Prior to the advent of internet, advertising was already disrupted by bifurcating itself into distinct creative and buying functions. WPP  and its clones focused on media planning and buying. All this was highly quantitative and optimisation models were the order of the day.

Creative agencies did design highly creative campaigns but the dissemination of such communication became the sole preserve of the media agencies. These agencies worked out the targeting (of messages to audiences ), how efficiently the audiences could be reached and how media buying could be done in bulk so as to extract the best and lowest prices for the clients from the media owners.

This brave new world of the last 30 years has new challenges. It is necessary to keep the brands alive. Consumption is the king and brands unite the consumers. Despite the clutter, consumers spot what they want. They spread the word. They in fact own the brands. They market them. Social media facilitates this consumer-driven marketing.

Even today, marketing cannot sell a bad product. The challenge is not marketing but product management. The product should be so compelling that marketing and selling are rendered superfluous. The job of marketing is to inform the consumers that what you need exists. This should be done in as exciting a way as possible.

 

 

 

 

 

Fraud in Mobile Advertising

More than a third of mobile programmatic traffic is at the risk of fraud. Multiple banners are stacked on top of each other, while only one could be effectively seen. This is called impression fraud. A bot can generate huge number of clicks.This is called click fraud. A postback event can be stimulated to fake an install or a post-install event. This is installation fraud. Fraudsters also work around the objectives the advertisers are seeking so as to satisfy them. In programmatic, without bidding, data pattern is analysed to detect fraud. As programmatic evolves, fraud prevention at the impression level, will be easier.

E-tail Sites as Ad Platforms

Snapdeal has extended site as ad platform to its sellers. On Flipkart, brands and sellers are being advertised. Amazon India accepts sellers advertising. Thus the e-commerce marketplace has turned into a media platform. Consumers spend a lot of time on theses sites. Therefore, these sites have started leveraging them. Moto G4 Plus was exclusively launched on Amazon. Advertising is an alternative revenue stream for e-tailers apart from commissions. Alibaba generates more than 50 per cent of its revenue from advertising. Flipkart receives currently 2.5 to 3 percent of its revenue from advertising. It has launched Brand Story Ads. Snapdeal works on a cost per click model. Pricing is done algorithmically. It uses native advertising.