Tag Archives: avc

The Advertising Collision

This post was inspired by Fred Wilson’s post today and Chris Dixon’s post back in 2009 about online advertising and it’s potential share gains.

Quite simply, Chris outlines that there are two types of advertising:  brand advertising (ATL= above the line) and direct response (BTL=below the line).  Much of the ad dollars have historically been centered in ATL media which is understandable but something big is happening.

A major collision.

ATL mediums are becoming BTL mediums.  BTL mediums are becoming ATL mediums.  There is no such medium that is one OR the other… both mediums are working together.

This is very important to understand.

Display, search, mobile, social, television, print, radio, ooh, and all others can be used for any format and are not mutually exclusive to the types of messaging you choose to use.  We like to call it branded-response, but I’m sure every agency around town has their own name for it.

Now that we can measure to some extent, the traditionally measurement-untouched ivory tower media channels dollar allocations will start to be reallocated to more measurable channels.  Or alternatively, as the ivory tower media channels become digital ivory tower channels, they in themselves will become measurable and will receive a dollar allocation based on their contribution to the brands marketing performance.

Companies like Vizu are releasing products that allow marketers and their agencies to optimize to campaign lift (awareness, consideration, etc).  Traditionally, most digital optimizations happen for a KPI that is quantitative (click, transaction, etc) but now we can optimize to emotion.  This is an example of startups looking at the future and innovating early.

It’s early in this game, but take note of this collision as it is going to create some amazing opportunities for the industry.

Fred Wilson's Web2.0 Keynote

For those of you who could not make it out to Fred Wilson‘s keynote at that Web2.0 Expo about the birth of the Internet industry in NYC, you should take 25 minutes and watch the video below.  Anyone will find this video interesting, but if you were around the alley in the 90s when things were cooking, you’ll smile as you reminisce.

In Chris Snyder’s review of the Web2.0 Conference for Wired Magazine, he mentions:

Venture capitalist Fred Wilson, a man who knows the ups and downs of the tech market, even postulated that New York was on an upswing that could eclipse Silicon Valley in buzz and activity.

“There’s something that goes on here in New York that’s different than what goes on in Silicon Valley. It’s more creative, more artistic, more connected to media and advertising,” Wilson said. “There will come a time when New York might be 70 or 80 percent of Silicon Valley as it relates to internet companies.”

Just don’t call it Silicon Alley in his presence. “We are not an alley. Let’s bury the name,” he said.

Future of Media Controlled by Digital Natives

Who has the most leverage in the media ecosystem?

If you said consumers, I believe you are correct.  Without an audience for your brand/content/site, it’s essentially worthless.  With billions of consumers in the world, the leverage lies within.

Media overall is going digital.  Television, print, radio, and OOH are all moving in this direction (some at a more rapid pace than others).

If you grow up emmersed in technology and digital media, you are considered a digital native.  According to Wikipedia, a digital native is a person who has grown up with digital technology such as computers, the Internet, mobile phones and MP3. A digital immigrant is an individual who grew up without digital technology and adopted it later. A digital native might refer to their new “camera”; a digital immigrant might refer to their new “digital camera”.

The future of the world will eventually be controlled by digital natives.  If you want to see how a digital native consumes media, take a peek at Fred Wilson’s recent posting about his children.

There are many interesting observations that Fred calls out, but one of the most interesting to me is that his children are device agnostic.  The future of media isn’t all online, in a magazine, on a television, on the radio, etc.  Content consumption should device agnostic and let the consumer decide where they want to engage with it.  Afterall, with billions of digital natives in the future, this will certainly play out.  One thing to also keep in mind:  television isn’t dead.  Television is evolving into people’s lifestyles contrary to when people had to create their lifestyle around television.

Just some food for thought on a Sunday.

Who am I secretly following?

I get an email every once in a while asking me which blogs I read and which RSS feeds I subscribe to.  My RSS feeds are my NY Times or WSJ.  It’s where I get my news from.  While not everything in each feed is relevant, the majority is appropriate and I enjoy reading what my colleagues and friends are writing.  Not every RSS feed I subscribe to is a blog either, which is becoming more of a trend.

I use Google Reader (used to use Newsgator) as my primary RSS feed reader and they have a nifty “trends” area.  While I do not give out my OPML, I did however take a screenshot of my Top 20 public feeds and am sharing them with everyone.  According to my “trends,” I currently subscribe to 202 RSS feeds.

RSS Feeds

Email. Thought it was going somewhere?

Charlie has an excellent point in this post about email.

So, while the kids, with their rock and roll and their ripped jeans and hacky sacks… err.. chrome spinners, may not have a need for e-mail now, it’s not going away anytime soon. Plus, most alternative methods, like Facebook, MySpace, Twitter, require both the sender and the recipient to both be on the same social network. E-mail is a least common denominator. We all have one and it requires no additional signup/login to send someone a message.

There’s been lots of talk about how we need Inbox 2.0 or that kids don’t use email any more (only IM, social network messaging, etc) but remember, they’re not in the work force. Typically, the work force moves at a snails pace (with technology infrastructure) so when kids come of legal age to work, they’ll be using email for the foreseeable future.

Just because a kid uses IM or MySpace to send messages, don’t mean his boss will want to use that. At the end of the day, sending a spreadsheet or pitch document to your team/boss is necessary – whether it’s thru an attachment or an online URL; and email, as Charlie says, is the lowest common denominator of everything [today].

Fred recently (today) posted about messaging and that’s the larger conversation here.  If you step back to 30,000 feet and look at email/SMTP/POP/Exchange/rss/sms/IM/etc – it’s all about messaging.  He believes that there will be open platforms and that’s where it’s going in the foreseeable future.  I agree.  If my Outlook could send SMS messages/IM/etc – and group it all in one place, that would be fantastic.  A great name for this would have been Grand Central, but that’s taken by another startup (now owned by Google) in the telephony industry.  We should potentially call this Penn Station?

We all love innovation and in my opinion, there’s a heck of a lot of it occuring right now in the technology scene. Entrepreneurs are turning out radical new ideas almost daily and we haven’t caught up to even 10% of what they are churning out. Just because kids are using IM to converse with each other, doesn’ t mean we should drop what we’re doing now to adopt these alternative methods of communication. They aren’t mutually exclusive. Also, lets not get too far ahead of ourselves for the innovation curve. Innovation is great – but consumer adoption is more important (to build a sustainable business).