Peter Koeppel is the President and Founder of Koeppel Direct, a leader in (DRTV) direct response television, online, print and radio media buying, marketing and campaign management.
Sunday, February 05, 2012
Mobile Advertising in U.S. Poised to Grow to $12 Billion in 2012
According to a white paper published by Mobile Media Buying Platform adsmobi, the amount spent on mobile advertising is set to jump from $1.34 billion to $2.01 billion in 2012.
Mobile research agency MobileSQUARED has predicted that 155.6 million SmartPhones will be sold in the next 12 months. Android is the leading software platform for SmartPhones and it will continue to hold this position next year. The company currently has a 25 percent market share.
Media buyers take note: mobileSQUARED Chief Analyst Nick Lane commented about the new data and said, "The strong growth of SmartPhones is generating an incredible uplift in inventory and having a powerful impact on mobile advertising in the US!"
As a company, adsmobi is also excited by this development and is getting to set to take on an active role by supporting performance-driven products like Rich Media Ad formats. The result is that more brands and agencies -- and their digital media buyers -- are encouraged to invest in this form of marketing.
Ramy Yared, MD of adsmobi Inc. stated, "It's exciting to see the US hitting $2 billion in mobile advertising spend next year. adsmobi is prepared to take an active role in driving this growth by supporting innovative and performance driven products such as Rich Media Ad Formats." adsmobi is expanding its US service with Patrick Ashby, the West Coast Sales Director, and a team in New York. The company is working with agency partners to increase revenue going forward.
Friday, September 30, 2011
On-Demand Movies Threaten Traditional Theaters
In what could potentially be the largest entertainment industry battle since the 2007 writer's strike, producers and distributors are looking to fight a growing trend in user behavior: On-demand media.
For the first time, movies are being offered through on-demand venues just months after they hit theaters. The first movie in the new distribution platform is Sony's "Just Go With It" which is being offered on DirectTV, pre-empting its DVD release. The release prompted angry letters from dozens of top filmmakers including James Cameron and Peter Jackson. However, 20th Century Fox, Universal Pictures and Warner Brothers have entered into similar agreements with DirectTV.
Studios, exhibitors and filmmakers are trying to predict the future needs of movie watchers. The trend is going toward home theater systems and movies on-demand, which would completely cut out traditional theater exhibitions.
The threat comes at a particularly bad time: Both sides of the movie industry have spent millions creating 3D film technology and projection platforms that bring 3D films to moviegoers. If on-demand becomes the name of the game, and users are able to download their favorite movies to a private digital "vault" for re-viewing, then where does that leave theaters?
The answer remains to be seen – but for now, one thing is sure. Cable and satellite subscribers will be able to see new movies sooner than ever before.
Thursday, June 16, 2011
Google Digital Newsstand Aims at Wooing National Publishers in Apple’s Absence
Google is aiming directly at magazine publishers, and at Apple’s perceived short fallings, with its new Google-operated digital newsstand.
With some publishers disappointed in their arrangements with Apple and the iPad, Google seeks to create a better platform with its Android-based system that will offer access to several types of magazines for users. The newsstand would include apps from many different media companies and make it possible to read publications on smartphones and tablet devices running on Android.
One of the key considerations is profit margins. Google is promising publishers like Time Warner, Conde Nast and Hearst Corp a higher cut of the profits from subscriptions than they are receiving with Apple (which typically takes 30% of sales from the iTunes and app markets). Google’s e-newsstand would also give personal data about app buyers to publishers for marketing purposes and will allow subscriptions for publications, two key features that Apple is currently not offering.
Thursday, April 28, 2011
E-tailers Use Strategic Offers, Not Discounts, to Lure Buyers
Internet e-commerce giants are changing the way the game is played as more consumers become more comfortable with shopping online.
Typically during a holiday season, retailers respond with deep discounts of 40% or higher in order to encourage sales.
However, in the 2010 holiday season, the name of the game changed from bargain basement offers to more strategic promotions. Reducing the amount of discounts and focusing on sending targeted offers to specific groups of people, or creating promotions to encourage more sales, both paid off for many top retailers during the last part of last year.
For example, rather than send a 30% coupon off of all purchases, e-tailers encourage shopping by offering a free gift with a certain amount of purchases. This encourages buyers to explore the merchant’s website and look for more things to buy – all the while becoming more familiarized with what the company has to offer. Alternatively, many e-tailers send a specific offer to a small amount of buyers who had made a specific type of purchase previously (e.g., offering a discount on suit essentials to someone who has purchased a suit).
Going beyond the discount to more strategic offers has been positive so far. Online sales grew 12 percent in the first 47 days of the holiday season, protecting retailers’ profit margins along the way.
Thursday, January 20, 2011
Google TV latest gamble:Network Programming in the Cloud
Google, Inc. announced its latest offering: Major network programming in the cloud.
Google TV, as it is being referred to, promises to bridge the gap between television and the web. Industry insiders say that this newest offering is a hard sell, although very intriguing. Sold as a set-top device, Google TV is designed to port multiple media content into a sleek and intuitive interface.
Sony and Logitech have launched two Google TV-friendly devices to lackluster sales. The troubles don’t end there. Competing products offered by Apple and Microsoft threaten to swipe potential users and flood a young market.
Google TV is more than just a way to watch television on the web. Google hopes to distinguish itself as the premier content portal for the web by allowing users to watch media from anywhere across the Internet. This would include media placed on sites such as You Tube and Hulu.
Courting multimedia giants such as Viacom and Disney has been difficult. Corporate-generated media seems right at home on the new device, but the lack of a cohesive business plan is keeping big investors at bay.
The blame doesn’t rest in Google’s lap alone. Many experts are attributing poor investor response to the ambiguous, mysterious nature of the cloud. With over 70 billion dollars’ worth of TV ad budget up for grabs, the web television market promises to be the next big boom. Google’s gamble for the biggest piece of the pie just may pay off.
Sunday, December 12, 2010
Hulu Invites Users To Pay For More, and Portable TV
Hulu, the popular website featuring free streaming of popular television shows and movies, has announced a new paid subscription plan which gives premium content over-and-above its free streams.
The premium content includes commercial-free streaming, the ability to download to mobile devices, and even the ability to put the shows on a television rather than a computer screen.
This puts Hulu directly in competition with some cable television providers that are planning similar services.
The service, called Hulu Plus, is initially available only to invited subscribers. It's primary draw so far has been its larger catalog of older, off-air shows as well as full catalogues of current shows which are on-air and haven't gone to DVD.
The new service also gives access to Hulu content on Apple's iPhone and iPad devices as well as on home television screens through some Internet-connected TVs, video game consoles, and Blu-Ray players.
Stakeholders in Hulu, which include NBC Universal, Disney, and News Corp, are cooperating through the service to offer content. New online services from some cable television companies such as Comcast Corp, are being planned that will directly compete with Hulu.
No exclusivity contracts exist with Hulu's primary stakeholders, so their content may appear on other networks. Hulu is, however, the first to offer the "TV everywhere" type service in this new space and with a large backing from content providers.
Visit our website www.koeppeldirect.com for a free consultation on your next drtv campaign.
Thursday, August 12, 2010
New Ways of Doing Laundry Set to Crack U.S. Market
In the late 1990s and early 2000s, laundry tablets were introduced to the U.S. market by Unilever, who'd successfully marketed them in Europe.
At that same time, competitor P&G tried introducing the popular European dry cleaning kits to Americans. Both enterprises failed and marketers seemed to think that Americans just weren't interested in new laundry ways of getting their clothes clean.
Bucking the trend, however, several companies are now offering concentrated laundry detergents and are quickly gaining market share as they create a new niche for the home laundry market. Players like P&G and Henkel are again trying new entries into this market.
Henkel's Purex Complete 3-in-1 sheets, which combine detergent and fabric softener into one laundry sheet that is put in with the wash and then also into the dryer, have brought in $100 million in sales in less than a year.
P&G has introduced new products, too, including the Tide Stain Release laundry pre-treater which gained 15 share points in barely a year (not including Walmart sales, which are higher). Another product in the same brand lineup, single-dose laundry gel packs, have also gained fast share points for P&G.
Where tablets failed a decade ago, tabs are now succeeding. Tablets were likely a loss because they were entered into the dry powder laundry segment, which has been on the decline for two decades. The new tabs are gel-filled and compete with convenience over price in the liquid detergent category. This is a much more competitive (and growing) segment of the laundry market.
The laundry market has devolved into two major segments now: Lower-priced (discounted) options and higher-priced, premium additives and convenience items. The market has become both price-competitive and more competitive in specialty items for which a premium can be charged.
Thursday, April 22, 2010
Discovery Rides Oprah’s Coattails to a Profitable Quarter
Media companies have been struggling lately, but Discovery has emerged from the fray with stronger programming and even more solid numbers.
It can probably credit that new prosperity to one woman – but considering she’s a woman with the ear of millions of households across America, she’s the right person to bank on. Oprah may be leaving her show, but she’s starting a new network, and it may be the key to Discovery’s new success.
Discovery may owe much of its new solidity to the development of the new Oprah Winfrey Network (OWN), which pulled in $287 million in ad sales all on its own. Overall affiliate revenue improved to $245 million, an increase of 4%, and the ad growth grew a whopping 10%, netting CPM increases between 15-25%.
Some of this confidence may be due to the always-profitable Oprah franchise, which has thrown in its lot with Discovery after announcements that Oprah will be retiring from her show after her 25-year run. The new OWN network anticipates reaching approximately 80 million households, and with that fact in mind, Discovery will be pushing its carriage fees upward from 14 cents per subscriber to a reported 40 cents.
Naturally, operators will raise an uproar. But the OWN network will be the only place for viewers to find their beloved Oprah, and they’re liable to raise an even bigger ruckus if they can’t find her.
Discovery may be riding Oprah’s coattails, but that’s proving to be one of the best negotiating seats in the house.
Saturday, March 20, 2010
Network TV Seeks New Advertisers
Network TV has taken a major advertising hit in the last year, with investments in advertising coming in at 20% less than the previous year for the five major broadcast networks.
Advertisers are reportedly holding back their inventory due to the struggling economy, hoping to make smarter plays later in the game, or withholding their advertising dollars altogether if it looks like the networks can’t offer a good enough ROI.
The networks responded by holding back more time than usual this year because of the price cuts demanded by their advertisers. 2010 network TV ad spending may be down as much as 7% in 2010, and PricewaterhouseCoopers recently predicted that the networks won’t get back to their pre-recession ad revenue of 2008 until 2013 at the earliest.
Another troubling problem for the networks is the uptick in DVR usage. A new report by TiVo indicates that more and more consumers are skipping the ads, making those time slots much less valuable to potential advertisers.
The popular program 30 Rock, for example, saw nearly 75% of the viewing audience skipping the ads, effectively cutting the potential audience for those advertisers to a quarter. That makes the time slot about a fourth as valuable as it once was – perhaps less, depending on the demographic doing the most skipping.
Local stations have also seen a hard hit in revenue, with the Television Bureau of Advertising reporting a drop of 26%. Auto spending makes up the bulk of that revenue dip, as the drop in consumer purchasing caused many auto makers to stop buying the spots that make up the bulk of local station ad revenue. Cash-for-clunkers helped relieve that pressure a bit during the 3rd quarter of 2009.
Saturday, February 20, 2010
Mobile Device Usage:Text Messaging and Advertising
It seems like everyone’s got a cell phone these days, but many of them, especially older users, have only been using it the way they used to use their land line.
If they needed to make a call or receive one, they picked up the phone. Otherwise, they left the device alone. It might as well have been still attached to a cord in the kitchen hallway.
A new survey shows that trend is starting to shift. Adults who have a mobile device are using it for a variety of different reasons, the most popular being text messaging, with a rise of 38% from last year, for a total of 51% of adult users. They are also using their phones to send picture messages, send, check and receive email, access the Internet, and listen to music.
We’re accustomed to thinking of younger users making regular use of those features – often more frequently than they use their mobile device as a phone – but for adults, the trend is definitely rising.
Younger users are still twice as likely to use those additional features than adults, particularly when it comes to text messaging. They’re also far more likely to use it for social networking, playing music, and playing games.
For drtv advertisers
trying to reach an older demographic through their mobile devices, they may have just found out there are more options than they had previously thought available.