Category Archives: Strategy

The CMO Dilemma continues: IBM’s 2011 Global CMO Study

IBM recently released “From Stretched to Strengthened: Insights from the Global Chief Marketing Officer Study”.

The executive summary is here. To obtain the full text, go to:  http://www935.ibm.com/services/us/cmo/cmostudy2011/cmo-registration.html .

The most compelling finding is the first: CMO Underpreparedness. Thematically, it fits a number of opinions expressed in the 4ScreensMedia online journal. Data, devices and social/digital media are three of the most challenging areas for a CMO to understand and leverage. This triad, if you will, is characterised by exponential growth, the shortest of product lifecycles and the problematic aspect of measurement.

 

I highly recommend you read the report especially as a marketing professional. Getting a perspective on what’s on the mind of the global CMO is extremely valuable when it comes from a large and respected firm such as IBM.

As much as technologists are shedding light on the marketing function, marketers ought to be doing some listening of their own and thinking like ‘marketing technologists’.

– Ted Morris, 4ScreensMedia

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The Zettabyte Era: A Brave New World of Devices

Cisco VNI 2011

 
Big Data is getting bigger. Here are some top findings from Cisco’s latest VNI – Visual Networking Index:
 
IP traffic will increase worldwide 4x by 2015, reaching 966 exabytes or just under 1 Zettabye (which is 10 to the 21st power).Factors that are driving this growth, include:
  • Video, as it is increasingly a part of nearly every networked experience.  By 2015, one million minutes of video – nearly two years worth – will cross the network every second.
  • More devices are connecting to the network – we forecast more than 15 billion will be on the network by 2015, making it on average more than two devices (whether it be a PC, phone, TV, or even machine-to-machine) per person for every person on earth (and if you’re like me, you’re an “overachiever” on this number, with well over a dozen devices connected to the network…by the way, just how many network connections are you responsible for?)
    • More people will be using the network – a total of 3 Billion people will be on the network in 2015, compared to 1.9 Billion estimated in 2010, due to increased broadband penetration – much of it mobile – and accessibility of lower cost devices.
    • Increased speed – overall connectivity speed doubled from 2009-2010 from 3.5 to 7Mbps and is expected to increase 4-fold to 28 Mbps by 2015.  This is relevant because when people can do more with the network, they tend to do so… video usage increases all the more which starts the cycle all over again.

– Ted Morris, 4ScreensMedia

 

The Digital & Social Era: Unlocking Brand Value in a Nanosecond

 

Monopoly, Scrabble, Mr. Potato Head, G.I. Joe, Nerf, Little Pony, Transformers.  These are only a few of the brands we are all growing old with, and are also seeing our children grow up with. They are all household names that have an extensive legacy and franchise around the world. They’re all Hasbro brands.

While many brand managers often think of extending a brand in terms of new product in the physical sense, the digital and social era offers the opportunity to transform brands into new media properties in ways that unlock the brand’s legacy. The age of new media offers up the chance to pull brands literally “out of the vault” and make them fresh again by relaunching them in an entirely new format.

Hasbro is a company that not only manufactures and distributes toys and games; it is an entertainment company that now competes with the likes of Disney. For example, one of the largest and most successful movie franchises is Transformers. Introduced in the mid-1980s, Transformers was a toy line that featured parts that can be shifted to change from a vehicle into a robot action figure and back again. A number of spin-offs followed, including an animated television series.

In 2007, a live-action movie, under sponsorship of Steven Spielberg, was released, with the latest installment to be released this summer. Around the brand is a vast array of media, including video games, a website, online games, TV commercials, a Facebook community, books, gear and all sorts of toys. Yes, there are apps for iPhone – in 3D no less – that include puzzles.

Not only has Hasbro become a force in the movie industry, it also is a direct investor in television having recently launched The Hub channel in the U.S. in partnership with Discovery Channel whereby the Discovery Kids platform was renamed The Hub. In Canada, Corus Entertainment and Hasbro Studios have come together to distribute Hasbro brands across the various Corus kids television platforms, such as Treehouse, the TV home of My Little Pony: Friendship is Magic (with HD episodes available on iTunes).

What makes the discussion even more compelling is how Hasbro has been able to artfully blend instinct with formal management process. I say this because the toy business, like fashion, has for many years been built on having a nose for what’s hot and what’s not. In the age of digital, so much is in the moment that risk and reward take on much shorter cycles, thereby requiring a balance between management discipline and entrepreneurial behaviour. As Michael Hogg, President of Hasbro Canada, says: “The toy business is like packaged goods with your hair on fire,” in that much of the action is in the moment, about today. This makes me think of the phrase Carpe Diem – on steroids.

Underlying this “360 degree” approach to defining the media mix is the foundational belief that there is also a value chain with regard to the media platforms. In Hasbro’s case, TV is the anchor to build brand awareness in key segments, whereby other media take on a supporting promotional role to augment consumer engagement.

In the days of traditional media, there was much talk about unlocking ‘incremental brand value’ by building out line extensions and adding ancillary products. In the era of digital and social media, brand value can be unlocked in an exponential way by developing the optimal media mix and devising the right formats for each brand.

It also means sticking to the fundamental questions: what are the demographics, who are the buyers, what are the right media choices and how do we build the trust factor into everything we do? The latter is most important especially when engaging audiences of ‘mommy bloggers’ who have valuable opinions about product safety, play value and ideas for innovation.

It also requires a change in mindset since metrics are not always conveniently at hand. In fact, it may be advantageous by allowing managers to take risk by investing in more trials, seeing what works through iteration and then building metrics that support additional investments for a calculated payoff.

For Hasbro, one formula that continues to prove itself in effect leads the consumer through the channels. Television is the anchor for certain target segments for brand building; websites are ideal for promotional activity and driving consumers to the retail store.

So let me end with a few more Hasbro brands that you may well recognize: Twister, Battleship, Yahtzee, Risk, Tinker Toy, Play-Doh, Sorry! and Easy Bake. And yes, there are and will be more apps.

– Ted Morris, 4ScreensMedia

 

Social Media: A “Head in the Sand” Moment

Seeing Your Brand With Eyes Wide Shut

It could not have come at a better or worse time – depending on whether  you are Google or Facebook. Or it may not matter at all given the continued high levels of adoption of “freemium” social media networking platforms. 

The recent survey by ASCI (American Customer Satisfaction Index) conducted by ForeSee Results,  yielded numbers worth considering.

For Facebook, it is basically ranked at the bottom of the deck by users when it comes to delivering on customer satisfaction – ergo, the user/customer exprience. Facebook is rated so low that it stands slightly above airlines and cable companies in general. Not surprising given that Facebook is really an Internet utility. Perhaps the only saving grace it that you don’t get a monthly bill.However, as a brand manager, you might want to ask yourself: “Do I really want to partner with a medium that is seen to deliver, in a measureable way, low customer value?”.  Even worse, some social networks may even dimish the value you are trying to deliver via your brand.

Not to worry, it looks like Facebook will be around for a awhile. Consumers or should I say “users” are as addicted to some forms of social media in a classic love/hate relationship. Things might be different however, if they had to actually pay to use this utility.

Pause for a moment.

– Ted Morris, 4ScreensMedia

Social Media: Where Does It Belong?

As part of a continuing series for the ACA – Association of Canadian Advertisers, the following post offers an ‘enterprise view’ of how to organize for social media. For the most part, advertisers are keely aware that any customer-facing activity does not fall exclusively within the domain of a singular function, department or business discipline. Indeed, the cross-enterprise approach is often the only way to provide a consistent delivery of customer value and in turn get feedback on performance.  This also avoids one of the most dangerous of obstacles that inhibits business  transformation…

To read on, please go to:

http://www.acaweb.ca/en/social-media-where-does-it-belong/

En Francais:

http://www.acaweb.ca/fr/qui-controle-les-medias-sociaux/

– Ted Morris