Segmentation is crucial for successful strategy (Be Remarkable)

Segmentation is the most effective driver to create winning words, ideas, disciplined thinking and, ultimately, successful strategies. Segmentation begins customer understanding, allowing organizations to build healthy relationships with their customers. The media marketing sector will be a $1.6 trillion market by 2010...how will your company earn its stake of the future?

Strategy didn't convert into a business term until the Depression forced academic thinkers -- such as John Maynard Keynes and Peter Drucker -- to literally help business and government "think forward" in order to break a desperate and deep economic situation. Strategy meant targeting to create new opportunties.
A strategy typically starts as an idea and ends with increased power or improvements for the owner of the idea. It's always been associated with empire building, which is why it's so tightly linked to war. However, as America's economy influenced the world's economy, the idea of "empire" shifted from the battlefield to the boardroom. New battles were for the minds of consumers and control of their spending habits, not just for kingdoms and property. Persuasion of the masses were not done just with guns and bombs; modern persuasion required strategy, marketing and the media.
For 50 years, TV was the ultimate marketing partner in order to reach the masses. Imagine, advertising we welcomed right in our living rooms! "As Sold On TV"...hey, it's got to be good!
That's been over and done for years.

In the past, marketing was unsophisticated. To reach the masses, marketers could "carpet-bomb" campaigns on TV, radio and newspapers. Consumers had fewer media options so this strategy worked because marketing messages could reach nearly the total population. After all, "carpet-bombing" worked as a military strategy. However, just as war's evolution now requires the use of "smart bombs" instead of carpet-bombs, marketing strategy has evolved, too. As "The Economist" recently wrote, marketing is now about small, not large, audiences. New millenial marketing requires multi-platform sub-niche strategies that precisely reach their intended target.

Be remarkable, not safe and boring. And target the remarkable consumers best for you, not just the massess. How is that done best?
Segmentation, for starters.
You have to know your market and know what links the customers driving that market...the customers with influence.

Essentially, proper segmentation gives marketers precise targeting in order to achieve successful strategies.

Really? 4 years ago, the iPod and iTunes (still only for Mac users) was just getting hot. Broadband was in less than 4% of American homes. No cable system had HD digital delivery systems. Satellite radio was brand new with virtually no subscribers (which now are more than 10 million). In 2002, words like "blog" and "podcast" were pure geek science. ESPN and other networks now send custom programming to be viewed on cellphones. Think the media universe and how consumers use media hasn't changed much in 4 years?
Do you think target segments have remained the same? Think again.
Nowhere is segmentation most dramatically under-utilized than with web analytics. Strangely, with the amount of natural data constantly collected with web usage, you'd think that segmentation would be a given. But it's not. A recent JupiterResearch study found using Web analytics to target e-mail campaigns can produce nine times the revenues and 18 times the profits of broadcast mailings. Yet the same research says few marketers are using segmentation techniques.
The same is true for all companies utilizing media for their marketing, programming and content distribution. Consumers typically use media -- in one form or another...or several at the same time -- for nearly half of every 24 hour day.

1) Marketers (and the people responsible for putting marketing decisions into action) are suffering from tactical information overload (you name it, we all can get instant time media reports on deliverables),
2) Multi-tasking "do more with less" marketers are trying to do great things with little time and few resources (creating less than great results),
3) "Fix-and-run" decision makers can't slow down long enough to process the meaning of segmentation and how to effectively use the information,
4) Segmentation is still viewed as an investing luxury, not a necessary cost of wisely doing business to gain advantage.
As mentioned earlier, whether you are on-line, over-the-air, wireless or in-print, segmentation is the #1 information advantage for the battle of today's consumer minds. If you're not segmenting every year or so, you are missing a huge competitive advantage and probably wasting revenue on ineffective marketing campaigns. So, how can you start using segmentation?

posted by Unknown @ Friday, June 30, 2006,
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Pondering the future of radio

Although traditional radio no longer has the transmitted audio platform exclusively, radio -- on the whole -- is way better. Radio, that is, including both the analog and the digital platforms. We all are listening to more total "radio" than ever before. So what is this doing to traditional radio?
The trend for media toward more user convenience, personal control, context-selected content and new community interactions of shared experiences continues to grow. Several new press releases on radio take a look at the current state of radio and its near-future.

Despite all the competitive advances in digital radio/audio, morning drive radio and afternoon drive radio are still radio's "prime times", with about 190 million Americans listening to week radio to start and end their workdays. Of course, radio still frustrates listeners with generic formats, reduced creativity/uniqueness and too many commercials...but the point is this: radio remains a strong and important form of daily entertainment and information.
However, radio's image has taken a hit these last few years, replaced by more "sexy" forms of digital audio on the iPod and through the Internet. So, if radio usage remains strong with consumers despite weakened marketing image, how are the experts viewing the future of radio?

Fewer and Shorter = Less. First, the broadcast data firm firm Media Monitors revealed a new study saying radio stations across the country shaved off a full minute of commercials per hour, reduced the total amount of ads played in a typical hour from 9 spots to 8.4, and shifted from fewer 60 second to shorter 30 second spots (1 of 5 commercials now heard are 30 second spots).
Overall, radio now has shorter breaks, fewer units and fewer spots per hour. Of course, that's not true for every format and that's certainly not true for markets with the largest ad revenues (Los Angeles, New York on down). Talk radio still regularly averages 16 minutes of ads an hour, including some stations selling more than 20 minutes an hour. However, nationally, as a media trend, total average spot loads are going down. Finally.
Meanwhile, Bridge Ratings explored the impact of digital media on radio with a new survey on listeners, asking how different types of digital media affected their radio habits. According to their study, the competing mediums are taking a bite out of regular radio, with an overall decline in the total time spent listening. Many respondents did say that other mediums cause them to listen to the radio more often, especially podcasting (58 percent), P2P file sharing (51 percent) and MP3 players (42 percent). However, radio is losing out mainly to Internet radio, with 55 percent saying it cause them to listen to less traditional radio.
Some formats are affected more than others. Not surprisingly, Rock and Alternative lose the most listenership to other mediums (-15 percent), followed by CHR (-12 percent) and News/Talk (-10 percent) while other (Adult Hits, AC) spend more time with terrestrial radio because of digital media. Of course, Rock and Alternative formats are the formats most rapidly disappearing from airwave radio, due to sample problems with 18-34 year men leading to lowered ratings.

For sure, radio is not going away. It's just evolving. Some on Wall Street say "with good management, radio companies can create better-than-industry-average returns." As for looking ahead, some predict satellite and Internet radio "will settle in the next few years and the radio industry will return to more of an even keel."
Billboard article here
Media Monitors press release here
RADAR press release here
posted by Unknown @ Wednesday, June 28, 2006,
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PWC says media spending to reach $1.8 trillion in 2010

Media continues to be a strong investment. The latest estimate sees a growth rate for media globally at +6.6% over the next four years. Online and wireless spending will more than triple. By 2010, Internet advertising is expected to capture nearly 10 percent of global advertising dollars, compared with 3 percent in 2002 -- the fastest growth of all advertising platforms.
In other words, expect more commericals in the near future, not less. Despite the ad industry's concern of connecting brand marketing to consumers and that 30 seconds aren't working like they used to, really, there's no worries for the advertising world. Old thinking and old application is out, that's all.

This week's PricewaterhouseCooper report says the U.S. will remain the largest media spender -- led by video and Internet growth -- even though its predicted growth of 5.6% ($726 billion by 2010) is the slowest globally.
The key drivers:
* Wireless
* Broadband
* Internet advertising
* Anticipated renewed growth from the movie industry as it shifts to digital distribution
* Global event advertising (Olympics, etc.)
* Digital (satellite/HD/broadband) TV and Radio/Audio distribution
"Virtually every segment of the entertainment and media industry is shifting from physical distribution to digital distribution of content, creating new growth opportunities" said Wayne Jackson, global leader of PricewaterhouseCoopers' Entertainment & Media Practice.
So who will the winners be?
posted by Unknown @ Thursday, June 22, 2006,
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What is media trend watching?

A media trend watcher participates. For example, by conducting market research, observation and media strategy implementation, you are a media trend watcher. By monitoring ratings and usage performance and then relating them to past results, you are media trend watching. Sharing ideas and participating on this Jointblog as well as others with your commentary responses to posts contributes to media trend watching. Drawing inferences from one media insight to conclude something new. Media trend watching reviews the tactics of something newsworthy today and pieces together the long-range strategic direction.


Media trend watching takes items that may seem like a small story and shows the bigger view. One trend I hope takes hold is simplicity. As a society, we are all overwhelmed with too much noise, too much stress, too many expectations. We have decision overload. And yet, so much of what we doing as media professionals is add to the noise, add to the stress, add to the expectations. As much as we try to create solutions, we often present more problems. Because we don't make it easy for the customer. We waste consumer time with useless contests or promotions that add zero value. That aren't fun or compelling. That require we jump through too many hoops. We bombard consumers with advertising that doesn't connect with the reader, the listener, the viewer -- expecting the customer to pay attention. Often, content looks good for advertisers but not for the audience.
In fact, as a media trend, it is the audience or the target consumer base that is often the last component considered for many media plans...if they get truly considered at all. Of course, at least conceptually, they should be the first compontent.

The campaign launched 3 three years ago and immediately propelled Staples to new growth, strongly outgaining their competitors in revenue, profit and share. It even created strong positive word of mouth...including the crazy demand from customers actually wanting to buy Easy Buttons for their own desktops at work. Staples quickly responded and made them available for sale, generating charity contributions of $1 million a year.
Simplicity.
Truthiness.
Just some of the media trends we are watching. Are you a media trend watcher? Write to us. We welcome your participation...just add your comments to our posts or forward us your own observations. We thank you for media trend watching with us.
posted by Unknown @ Monday, June 19, 2006,
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After The Viacom Split: A Battle of Titans Brewing

Media heavyweight champion Viacom split into two new separate companies at the start of the year, with the new "Viacom" taking MTV Networks, Comedy Central, Spike, and other cable channels as well as Paramount Studios. The new "CBS Corporation" got radio, the CBS TV network, UPN TV, Showtime cable, CBS Outdoor, Simon and Schuster books and the Paramount content creating properties. Once Viacom Chairman Sumner Redstone made the split of the media kingdom, dividing the assets to his conquering co-CEOs charged with carrying forward the legacy, the question wondered was: will it be Tom Freston vs Les Moonves? Which company will outperform the other?
A battle of titans may be brewing...

Meanwhile, Moonves' CBS Corporation stock shares have stayed between $25 and $26 on the NYSE, with little change in 1st quarter profit despite a very busy first six months of 2006. CBS got mixed up in a two-sided lawsuit with former radio star Howard Stern (which it settled, Stern paying CBS $2million), a disasterous experiment in car wreck morning radio with David Lee Roth (which it corrected with Opie and Anthony), a merger of the WB and UPN TV networks into the new CW and the announcement to hire The Today Show's Katie Couric as the new permanent evening news anchor beginning this Fall. On top of it all, CBS won the 12+ TV May sweeps and the top overall Nielsen ratings for the entire TV season as the top network.
Behind the scenes, things seem to be stirring. Last month, the New York Post reported that the battles were beginning between CBS and Viacom.
Well, there's new evidence of more battling. Viacom-owned Comedy Central's The Daily Show has released a new tongue-in-cheek (what else would you expect?) ad (for your Emmy consideration) saying "We had fake news years before CBS hired Katie Couric."
Ouch!
posted by Unknown @ Friday, June 16, 2006,
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Colbert Report's Word on Indecency: Great F***ing Idea

Both houses of Congress have voted in favor of the Broadcast Decency Enforcement Act, which would increase the maximum fine that the Federal Communications Commission can impose for an indecent broadcast by 10 times from $32,500 to $325,000 each violation.
F*ck!
Stephen Colbert is ready to do his American part and you can bet your sweet ass he brought out his checkbook to prove it on last night's Colbert Report installment of the daily "Word". Click here for the videocast.

This means shaved beavers are just not appropriate for TV.
The Senate approved the bill on May 18 by unanimous consent, and the House voted 399-35 (!) in favor of it on June 7. President George W. Bush said in a June 7 statement that the legislation would “make television and radio more family friendly by allowing the FCC to impose stiffer fines on broadcasters who air obscene or indecent programming.”
The FCC, which has authority to enforce federal obscenity law, has reported (on-line as a PDF here) it received about 1,000 times as many complaints in 2004 than in 2000. Complaints in 2004 concerned 314 programs (145 radio, 140 television, and 29 cable), while complaints in 2000 concerned 111 programs (85 radio, 25 television, and 1 cable). In 2004, the FCC issued 12 notices of apparent liability seeking $7.9 million in fines; five recipients of complaints paid or agreed to pay.
Of course, as Colbert mentioned, almost all of them were generated by mass automated email campaigns led by 2 individuals on an obsensity in media vendetta. So who fines the government and the FCC when they are both being obscene?
reference article here
posted by Unknown @ Wednesday, June 14, 2006,
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Media Revolution Is All About Small, Not Large, Audiences

In the April 20th issue, The Economist covered the subject of Media in a series of articles (here, here, here and here...plus several others worthy of reading). I encourage you to read through the articles because they weigh in heavily on a Big Trend watching Media's evolution.

That IS the New Entertainment Economy. Media control is no longer only in the hands of the license and transmitter holders. Media control in the On Demand world is in the hands of consumers. Consumers now have the choices and possess the ability to get what they want...right now. It "has profound implications for traditional business models in the media industry, which are based on aggregating large passive audiences and holding them captive during advertising interruptions," Andreas Kluth writes. And traditional media is still having a hard adapting their economic models, as they have always been based purely on their control, not the consumers.

The spectrum of content control has been completely redefined in this YouTube/digital radio/Broadband universe. On one side of the spectrum, you have people creating stuff to build their own reputations, hoping to bubble up their content to the masses through avenues like viral video or podcasts. On the other side, superbrands such as Steven Speilberg will become their own content portals, with corporate mothership surrogates no longer needed.
Dive in and let the articles slowly digest...they are rich in content and useful for when you put your thinking cap on.
posted by Unknown @ Tuesday, June 13, 2006,
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Microsoft shops at The Apple Store (again) for new ideas

Slower, cumbersome, less innovative Microsoft constantly walks in the same path already well-carved out and mastered by Apple.
The latest example comes after Apple's very successful latest new "Get a Mac" ad campaign, where hip MacBoy talks with awkward PCGuy. A few weeks ago, the Jointblog posted that for Apple, you are what you compute with.
In the Apple spots, MacBoy easily networks with PCs and any digital device (including the latest Japanese digital camera) while the PC can't communicate with "her". Healthy MacBoy has sympathy for PCGuy's sickness from one one of the 100,000 viruses attacking PCs every year, making him sneeze and ultimately freeze while MacBoy is completely immune. And there's 4 more variations on the theme demonstrating why Apple's are so much better, cooler and easier to use.
PCGuy is actually "The Daily Show's" 'resident expert' comic John Hodgman...a guy who really doesn't quite get it but still exudes a level of fake superiority anyway. A perfect character to spoof Microsoft.
Microsoft's marketing reply?

Microsoft nerd #1: "Guys, these latest Apple spots are killing us. What are we going to do?"
Microsoft nerd #2: "I know, they always have better ads. They always look so cool. I even download them on my iPod to watch later. Ooops, I mean, my 'mp3' player."
Microsoft nerd #3: "Hmmm, I have an idea. Since they use a 'Daily Show' dude to represent us, why don't we use a 'Daily Show' comic, too, for our own ads. I hear it is a very popular show with the kids, although I've never watched it."
MS nerd #1: "'The Daily Show'? What's (using air quotation marks in the air) 'The Daily Show'?"
MS nerd #2: (air quotation marks) "'The Daily Show'" is a popular fake news show that spoofs the news. Jon Stewart hosts it; you know, he was this year's host of the Oscars. Although he didn't make many people laugh. I don't know why he is popular."
MS nerd #3: "Right, that Stephen Colbert used to be the show. He used to do those Mr Goodwrench ads and now has his own show. He seems like a good Republican, although I didn't get his jokes at the White House Correspondence Dinner last month. That was weird. I bet he would be too expensive since he's such a huge star."
MS nerd #1: "Okay, can someone create a spreadsheet to help us evaluate other comics from (quotation marks) 'The Daily Show' to use when we market Vista...that is, whenever we can ever finally get the kinks worked out and (more quotation marks) 'trojaned' onto the market?"
MS nerd #2: "Good one, Big Bill. We'll get right on it."
Putting their creativity and spreadsheets into action, Microsoft found their candidate (it is rumored, as reported by both The Seattle Post Intelligencer and the Hollywood Reporter). According to the publications Wednesday:
"The rivalry between Microsoft Corp. and Apple Computer Inc. apparently extends to the cast of 'The Daily Show'. Microsoft has reached a deal with Demetri Martin, the young 20-something comic behind the fake news program's periodic 'Trendspotting' feature, to star in a marketing campaign for the upcoming Windows Vista."

Seattle Post Intelligencer article here
"I'm a PC, I'm a Mac" ads here
posted by Unknown @ Friday, June 09, 2006,
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iPods More Popular Than Beer

In a newly released study, Apple Computer's iconic iPod music player surpassed beer drinking as the most "in" thing among undergraduate college students, according to a firm monitoring college student activies biannually for the past 18 years.
According to the news reported by the AP:
"Nearly three quarters, or 73 percent, of 1,200 students surveyed from 100 college campuses in March said iPods were "in" - more than any other item in a list that also included text messaging, bar hopping and downloading music.So, if you are dependent on 18-24 year old ratings from Nielsen, Arbitron or BBM and you keep wondering why you're having a hard time reaching them, it's not just because they're doing another beer bong. They're on their iPod.
In the year-ago study, only 59 percent of students named the iPod as "in," putting the gadget well below alcohol-related activities.
This year, drinking beer and Facebook.com, a social networking Web site for students, were tied for second most popular, with 71 percent of the students identifying them as "in."
The only other time beer was temporarily dethroned in the 18 years of the survey was in 1997 - by the Internet, said Student Monitor."
Dean Wormer of Faber College would be so proud of that media trend.
posted by Unknown @ Wednesday, June 07, 2006,
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As Seen on The Drudge Report Today...

Katie Couric just had her 3-hour farewell Today Show broadcast sendoff on NBC Wednesday, watched by nearly 9 million breakfast show viewers (according to Nielsen ratings). Commanding ad spot rates of $110K per 30 second commercial. Nice to see. Good ratings, good business, nice thank you to its star that helped bring in the money. Also rare, since most in broadcasting (both radio and TV) only get a few minutes to say thanks (if at all) when it's time to go. Only a few TV legends have even gotten an hour-long prime time broadcast party. Katie got three. Plus Tony Bennett! And yes, she showed those Couric legs. Must be the legs!
Anyway, I saw this custom headline on The Drudge Report that made me burst out laughing:
"$15M A YEAR: Katie Couric hopes to end 'pretentious era' in news..."Really? How pretentious is that?!?
There are so many natural riffs...add yours, if you like.
Of course, the Reuters' article Drudge pulled the headline from didn't connect the price tag with the Couric quote. That was a nice Drudge twist. Too funny.
posted by Unknown @ Friday, June 02, 2006,
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