Category Archives: Television

Hasbro: From Manufacturing to Media Powerhouse

Hasbro is no longer just about Mr. Potato Head. It is a company that has been able to unlock many brands from the vault. These brands have now become instrumental in transforming Hasbro into a media powerhouse – think Transformers, G.I. Joe and Star Wars. Movies. Very successful movies. Think Monopoly going mobile.

Hasbro will soon be launching hub, “a new TV channel for kids and families”. Here’s the point: in the past 5 years, Hasbro has delivered consistent growth in revenues, profit and stock growth. The proof is in the return on investment – just check Hasbro’s investor relations page: www.hasbro.com/corporate

Stay tuned.

– Ted Morris, 4ScreensMedia

Media: The Sum of Its Parts or Something Else?

Reductionism says that a complex system is nothing but the sum of all of its parts and understanding those parts can tell us everything about the complex system that they belong to. This idea was supported Thales of Miletus, the first known philosopher of the western civilization circa 580 BC.

Shortly thereafter, in 2010, the ‘Galaxy of Media Choices’ (a term coined by The Boston Consulting Group) presents us with a complex system of communication with a series of moving parts.  There are some 70+ media choices, or parts if you will, including traditional (television, radio, outdoor, POS and print) and the Internet (digital,  mobile, geo-location, video, QR codes, SMS, social networking platforms etc.) – no need to list everything here.

The advent of Internet and digital technology in combination with the amount of time we spend on media is what makes the media system so fascinating and correspondingly difficult to grasp. Why? Because, like space, it is seemingly infinite.

How do the parts help us understand our complex media system?

– Ted Morris, 4ScreensMedia

Advertisers and Consumers Like Television

I recently heard someone ask “If ROI is so important, why do brands still advertise & market on television?” Here is part of the answer to a very complex business issue.

According to the IAB – Interactive Advertising Bureau, Nielsen estimates that, for the fall 2010-11 broadcast season, there will be 115.9m US TV households, and 294.65m persons 2+ watching. To put this in perspective, that’s almost equal to the total number of both households and population of the United States. Nielsen also recently published some key media statistics:

> 114M US households have a least one television, almost 30% own 4 or more TVs; the average American watches 31.5 hours of TV per week; kids 6-11 watch 8 hours of live TV per week.

> almost 99% of video content is watched on traditional television; 100M+ are cable and satellite TV ready.

A complementary perspective is offered by comScore. In a piece written by comScore Co-Founder Gian Fulgoni, The Lure of TV Advertising for Internet Businesses, it’s clear that even companies that are significant Internet players, are attracted to the lure of television. Some of these companies include Yahoo, AOL, Autotrader.com, Google, Expedia, Monster.com, Priceline and eHarmony. Fulgoni points out that over the past decade, television ad spend share has increased from 38% to 46%…”confirming that despite the illusion created by some media pundits who would have us believe that TV is on the ropes…”

Even as the Internet continues to grow in appeal, brands prefer television as an advertising medium. While consumers are watching more television than ever and there is no let up in sight in terms of total time spent viewing there are two key drivers, as noted by comScore, driving advertiser appeal. The first is that a lot of people can be reached, during high-rated shows, in a very short amount of time. This is very appealing to advertisers, where time is indeed money – well spent. The other is related to risk. Almost all television advertising is copy tested,especially for major brands, before going on air in order to ensure that the intended message is hitting the mark with the target audience.

With viral advertising, notably on YouTube, campaign success is largely a role of the dice. For every campaign of note, such as the recent Old Spice series, there a thousands of videos that rarely get a mention, let alone reach the people they were meant for. While it is cheap to air an ad on one of the Freemium channels, it is very difficult to understand reach and frequency in relation to target audience. You cannot anticipate who will view what, when and how often before going on air unlike television advertising that is tied to a program’s intended viewing audience. Otherwise, it’s a bit like playing media planning roulette and risking loss of control of the brand. 

As Fulgoni aptly notes “The cost of being wrong becomes substantial”.

– Ted Morris, 4ScreensMedia